Financial Report
I. Audit reports
Whether the semi-annual report was audited or not
□ Yes √ No
The financial report of this semi-annual report was unaudited.
II. Financial statements
Units in Notes of Financial Statements is RMB
1. Consolidated Balance Sheet
Prepared by Shenzhen China Bicycle Company (Holdings) Limited
2018-06-30
In RMB
| Item | Closing balance | Opening balance |
| Current assets: | ||
| Monetary funds | 15,814,304.99 | 27,985,654.24 |
| Settlement provisions | ||
| Capital lent | ||
| Financial assets measured by fair value and with variation reckoned into current gains/losses | ||
| Derivative financial liability | ||
| Notes receivable | 1,500,000.00 | |
| Accounts receivable | 34,951,941.66 | 29,007,775.21 |
| Accounts paid in advance | 6,076,785.42 | 2,482,276.54 |
| Insurance receivable | ||
| Reinsurance receivables | ||
| Contract reserve of reinsurance receivable | ||
| Interest receivable | ||
| Dividend receivable | ||
| Other receivables | 606,839.17 | 659,706.81 |
| Purchase restituted finance asset |
| Inventories | 4,810,375.32 | 2,777,174.63 |
| Assets held for sale | ||
| Non-current asset due within one year | ||
| Other current assets | 1,792,452.81 | 1,805,427.17 |
| Total current assets | 64,052,699.37 | 66,218,014.60 |
| Non-current assets: | ||
| Loans and payments on behalf | ||
| Finance asset available for sales | ||
| Held-to-maturity investment | ||
| Long-term account receivable | ||
| Long-term equity investment | ||
| Investment property | ||
| Fixed assets | 3,756,571.22 | 3,941,117.97 |
| Construction in progress | ||
| Engineering material | ||
| Disposal of fixed asset | ||
| Productive biological asset | ||
| Oil and gas asset | ||
| Intangible assets | 1,882,500.00 | 2,259,000.00 |
| Expense on Research and Development | ||
| Goodwill | ||
| Long-term expenses to be apportioned | ||
| Deferred income tax asset | 741,828.71 | 741,828.71 |
| Other non-current asset | 400,000.00 | 400,000.00 |
| Total non-current asset | 6,780,899.93 | 7,341,946.68 |
| Total assets | 70,833,599.30 | 73,559,961.28 |
| Current liabilities: | ||
| Short-term loans | ||
| Loan from central bank | ||
| Absorbing deposit and interbank deposit | ||
| Capital borrowed | ||
| Financial liability measured by fair value and with variation reckoned into current gains/losses |
| Derivative financial liability | ||
| Notes payable | 8,480,000.00 | |
| Accounts payable | 10,827,725.61 | 3,928,197.27 |
| Accounts received in advance | 1,718,541.33 | 1,268,479.32 |
| Selling financial asset of repurchase | ||
| Commission charge and commission payable | ||
| Wage payable | 859,708.64 | 706,703.40 |
| Taxes payable | 2,733,356.50 | 3,807,286.87 |
| Interest payable | ||
| Dividend payable | ||
| Other accounts payable | 35,341,380.29 | 36,508,323.90 |
| Reinsurance payables | ||
| Insurance contract reserve | ||
| Security trading of agency | ||
| Security sales of agency | ||
| Liability held for sale | ||
| Non-current liabilities due within 1 year | ||
| Other current liabilities | ||
| Total current liabilities | 51,480,712.37 | 54,698,990.76 |
| Non-current liabilities: | ||
| Long-term loans | ||
| Bonds payable | ||
| Including: preferred stock | ||
| Perpetual capital securities | ||
| Long-term account payable | ||
| Long-term wages payable | ||
| Special accounts payable | ||
| Projected liabilities | ||
| Deferred income | ||
| Deferred income tax liabilities | ||
| Other non-current liabilities | ||
| Total non-current liabilities | ||
| Total liabilities | 51,480,712.37 | 54,698,990.76 |
| Owner’s equity: | ||
| Share capital | 551,347,947.00 | 551,347,947.00 |
| Other equity instrument | ||
| Including: preferred stock | ||
| Perpetual capital securities | ||
| Capital public reserve | 627,834,297.85 | 627,834,297.85 |
| Less: Inventory shares | ||
| Other comprehensive income | ||
| Reasonable reserve | ||
| Surplus public reserve | 32,673,227.01 | 32,673,227.01 |
| Provision of general risk | ||
| Retained profit | -1,195,403,038.95 | -1,195,957,201.01 |
| Total owner’s equity attributable to parent company | 16,452,432.91 | 15,898,270.85 |
| Minority interests | 2,900,454.02 | 2,962,699.67 |
| Total owner’s equity | 19,352,886.93 | 18,860,970.52 |
| Total liabilities and owner’s equity | 70,833,599.30 | 73,559,961.28 |
Legal Representative: Li HaiPerson in charge of Accounting Works: Sun LonglongPerson in charge of Accounting Institution: Zhong Xiaojin
2. Balance Sheet of Parent Company
In RMB
| Item | Closing balance | Opening balance |
| Current assets: | ||
| Monetary funds | 10,592,392.19 | 15,398,405.80 |
| Financial assets measured by fair value and with variation reckoned into current gains/losses | ||
| Derivative financial liability | ||
| Notes receivable | 300,000.00 | |
| Accounts receivable | 17,008,339.16 | 17,680,663.16 |
| Account paid in advance | 5,524,648.70 | 2,357,662.42 |
| Interest receivable |
| Dividends receivable | ||
| Other receivables | 255,580.95 | 280,576.37 |
| Inventories | ||
| Assets held for sale | ||
| Non-current assets maturing within one year | ||
| Other current assets | 1,792,452.81 | 1,792,452.81 |
| Total current assets | 35,173,413.81 | 37,809,760.56 |
| Non-current assets: | ||
| Available-for-sale financial assets | ||
| Held-to-maturity investments | ||
| Long-term receivables | ||
| Long-term equity investments | 10,379.73 | 10,379.73 |
| Investment property | ||
| Fixed assets | 3,189,645.44 | 3,309,465.26 |
| Construction in progress | ||
| Project materials | ||
| Disposal of fixed assets | ||
| Productive biological assets | ||
| Oil and natural gas assets | ||
| Intangible assets | 1,882,500.00 | 2,259,000.00 |
| Research and development costs | ||
| Goodwill | ||
| Long-term deferred expenses | ||
| Deferred income tax assets | ||
| Other non-current assets | 400,000.00 | 400,000.00 |
| Total non-current assets | 5,482,525.17 | 5,978,844.99 |
| Total assets | 40,655,938.98 | 43,788,605.55 |
| Current liabilities: | ||
| Short-term borrowings | ||
| Financial liability measured by fair value and with variation reckoned into current gains/losses | ||
| Derivative financial liability | ||
| Notes payable |
| Accounts payable | ||
| Accounts received in advance | 111,111.10 | 1,086,506.70 |
| Wage payable | 437,700.34 | 112,896.71 |
| Taxes payable | 1,773,220.21 | 2,806,928.48 |
| Interest payable | ||
| Dividend payable | ||
| Other accounts payable | 28,638,820.72 | 30,786,588.98 |
| Liability held for sale | ||
| Non-current liabilities due within 1 year | ||
| Other current liabilities | ||
| Total current liabilities | 30,960,852.37 | 34,792,920.87 |
| Non-current liabilities: | ||
| Long-term loans | ||
| Bonds payable | ||
| Including: preferred stock | ||
| Perpetual capital securities | ||
| Long-term account payable | ||
| Long-term wages payable | ||
| Special accounts payable | ||
| Projected liabilities | ||
| Deferred income | ||
| Deferred income tax liabilities | ||
| Other non-current liabilities | ||
| Total non-current liabilities | ||
| Total liabilities | 30,960,852.37 | 34,792,920.87 |
| Owners’ equity: | ||
| Share capita | 551,347,947.00 | 551,347,947.00 |
| Other equity instrument | ||
| Including: preferred stock | ||
| Perpetual capital securities | ||
| Capital public reserve | 627,834,297.85 | 627,834,297.85 |
| Less: Inventory shares | ||
| Other comprehensive income | ||
| Reasonable reserve |
| Surplus reserve | 32,673,227.01 | 32,673,227.01 |
| Retained profit | -1,202,160,385.25 | -1,202,859,787.18 |
| Total owner’s equity | 9,695,086.61 | 8,995,684.68 |
| Total liabilities and owner’s equity | 40,655,938.98 | 43,788,605.55 |
3. Consolidated Profit Statement
In RMB
| Item | Current Period | Last Period |
| I. Total operating income | 67,734,899.35 | 48,929,676.27 |
| Including: Operating income | 67,734,899.35 | 48,929,676.27 |
| Interest income | ||
| Insurance gained | ||
| Commission charge and commission income | ||
| II. Total operating cost | 67,051,835.24 | 51,337,023.25 |
| Including: Operating cost | 61,164,206.33 | 45,686,272.83 |
| Interest expense | ||
| Commission charge and commission expense | ||
| Cash surrender value | ||
| Net amount of expense of compensation | ||
| Net amount of withdrawal of insurance contract reserve | ||
| Bonus expense of guarantee slip | ||
| Reinsurance expense | ||
| Operating tax and extras | 75,737.75 | 91,353.05 |
| Sales expenses | 2,755,927.53 | 2,468,701.87 |
| Administration expenses | 3,309,720.24 | 3,339,531.50 |
| Financial expenses | -260,975.81 | -201,564.91 |
| Losses of devaluation of asset | 7,219.20 | -47,271.09 |
| Add: Changing income of fair value(Loss is listed with “-”) | ||
| Investment income (Loss is listed with “-”) |
| Including: Investment income on affiliated company and joint venture | ||
| Exchange income (Loss is listed with “-”) | ||
| Assets disposal income (Loss is listed with “-”) | ||
| Other income | ||
| III. Operating profit (Loss is listed with “-”) | 683,064.11 | -2,407,346.98 |
| Add: Non-operating income | 72,126.28 | 291,710.58 |
| Less: Non-operating expense | 30,140.00 | |
| IV. Total Profit (Loss is listed with “-”) | 725,050.39 | -2,115,636.40 |
| Less: Income tax expense | 233,133.98 | 11,629.41 |
| V. Net profit (Net loss is listed with “-”) | 491,916.41 | -2,127,265.81 |
| (I) Continuous operation net profit (Net loss is listed with “-”) | 491,916.41 | -2,127,265.81 |
| (II) Discontinued operation net profit (Net loss is listed with “-”) | ||
| Net profit attributable to owner’s of parent company | 554,162.06 | -1,691,378.44 |
| Minority shareholders’ gains and losses | -62,245.65 | -435,887.37 |
| VI. Net after-tax of other comprehensive income | ||
| Net after-tax of other comprehensive income attributable to owners of parent company | ||
| (I) Other comprehensive income items which will not be reclassified subsequently to profit of loss | ||
| 1. Changes as a result of re-measurement of net defined benefit plan liability or asset | ||
| 2. Share of the other comprehensive income of the investee accounted for using equity method which will not be reclassified subsequently to profit and loss | ||
| (II) Other comprehensive income items |
| which will be reclassified subsequently to profit or loss | ||
| 1. Share of the other comprehensive income of the investee accounted for using equity method which will be reclassified subsequently to profit or loss | ||
| 2. Gains or losses arising from changes in fair value of available-for-sale financial assets | ||
| 3. Gains or losses arising from reclassification of held-to-maturity investment as available-for-sale financial assets | ||
| 4. The effect hedging portion of gains or losses arising from cash flow hedging instruments | ||
| 5. Translation differences arising on translation of foreign currency financial statements | ||
| 6. Other | ||
| Net after-tax of other comprehensive income attributable to minority shareholders | ||
| VII. Total comprehensive income | 491,916.41 | -2,127,265.81 |
| Total comprehensive income attributable to owners of parent Company | 554,162.06 | -1,691,378.44 |
| Total comprehensive income attributable to minority shareholders | -62,245.65 | -435,887.37 |
| VIII. Earnings per share: | ||
| (i) Basic earnings per share | 0.0010 | -0.0031 |
| (ii) Diluted earnings per share | 0.0010 | -0.0031 |
Enterprise combine under the same control in the Period, the combined party realized net profit of 0 Yuan beforecombination, and realized 0 Yuan at last period for combined party
Legal Representative: Li HaiPerson in charge of Accounting Works: Sun LonglongPerson in charge of Accounting Institution: Zhong Xiaojin
4. Profit Statement of Parent Company
In RMB
| Item | Current Period | Last Period |
| I. Operating income | 24,023,518.68 | 3,228,905.96 |
| Less: Operating cost | 20,846,218.08 | 1,994,075.80 |
| Operating tax and extras | 13,741.20 | |
| Sales expenses | 276,827.75 | |
| Administration expenses | 2,107,312.50 | 2,165,755.45 |
| Financial expenses | -83,003.31 | 2,461.63 |
| Losses of devaluation of asset | -2,008.04 | |
| Add: Changing income of fair value(Loss is listed with “-”) | ||
| Investment income (Loss is listed with “-”) | ||
| Including: Investment income on affiliated company and joint venture | ||
| Assets disposal income (Loss is listed with “-”) | ||
| Other income | ||
| II. Operating profit (Loss is listed with “-”) | 864,430.50 | -933,386.92 |
| Add: Non-operating income | 68,105.41 | 259,079.00 |
| Less: Non-operating expense | ||
| III. Total Profit (Loss is listed with “-”) | 932,535.91 | -674,307.92 |
| Less: Income tax expense | 233,133.98 | |
| IV. Net profit (Net loss is listed with “-”) | 699,401.93 | -674,307.92 |
| (I) Continuous operation net profit (Net loss is listed with “-”) | 699,401.93 | -674,307.92 |
| (II) Discontinued operation net profit (Net loss is listed with “-”) | ||
| V. Net after-tax of other comprehensive income | ||
| (I) Other comprehensive income items which will not be reclassified subsequently to profit of loss |
| 1. Changes as a result of re-measurement of net defined benefit plan liability or asset | ||
| 2. Share of the other comprehensive income of the investee accounted for using equity method which will not be reclassified subsequently to profit and loss | ||
| (II) Other comprehensive income items which will be reclassified subsequently to profit or loss | ||
| 1. Share of the other comprehensive income of the investee accounted for using equity method which will be reclassified subsequently to profit or loss | ||
| 2. Gains or losses arising from changes in fair value of available-for-sale financial assets | ||
| 3. Gains or losses arising from reclassification of held-to-maturity investment as available-for-sale financial assets | ||
| 4. The effect hedging portion of gains or losses arising from cash flow hedging instruments | ||
| 5. Translation differences arising on translation of foreign currency financial statements | ||
| 6. Other | ||
| VI. Total comprehensive income | 699,401.93 | -674,307.92 |
| VII. Earnings per share: | ||
| (i) Basic earnings per share | 0.0013 | -0.0012 |
| (ii) Diluted earnings per share | 0.0013 | -0.0012 |
5. Consolidated Cash Flow Statement
In RMB
| Item | Current Period | Last Period |
| I. Cash flows arising from operating activities: |
| Cash received from selling commodities and providing labor services | 15,792,549.13 | 23,451,451.79 |
| Net increase of customer deposit and interbank deposit | ||
| Net increase of loan from central bank | ||
| Net increase of capital borrowed from other financial institution | ||
| Cash received from original insurance contract fee | ||
| Net cash received from reinsurance business | ||
| Net increase of insured savings and investment | ||
| Net increase of amount from disposal financial assets that measured by fair value and with variation reckoned into current gains/losses | ||
| Cash received from interest, commission charge and commission | ||
| Net increase of capital borrowed | ||
| Net increase of returned business capital | ||
| Write-back of tax received | 5,306.26 | |
| Other cash received concerning operating activities | 2,529,012.36 | 2,324,298.02 |
| Subtotal of cash inflow arising from operating activities | 18,326,867.75 | 25,775,749.81 |
| Cash paid for purchasing commodities and receiving labor service | 12,448,466.83 | 23,835,363.39 |
| Net increase of customer loans and advances | ||
| Net increase of deposits in central bank and interbank | ||
| Cash paid for original insurance contract compensation | ||
| Cash paid for interest, commission |
| charge and commission | ||
| Cash paid for bonus of guarantee slip | ||
| Cash paid to/for staff and workers | 3,190,388.60 | 3,517,233.68 |
| Taxes paid | 1,336,400.97 | 1,649,135.49 |
| Other cash paid concerning operating activities | 4,714,582.54 | 5,580,059.48 |
| Subtotal of cash outflow arising from operating activities | 21,689,838.94 | 34,581,792.04 |
| Net cash flows arising from operating activities | -3,362,971.19 | -8,806,042.23 |
| II. Cash flows arising from investing activities: | ||
| Cash received from recovering investment | ||
| Cash received from investment income | ||
| Net cash received from disposal of fixed, intangible and other long-term assets | ||
| Net cash received from disposal of subsidiaries and other units | ||
| Other cash received concerning investing activities | ||
| Subtotal of cash inflow from investing activities | ||
| Cash paid for purchasing fixed, intangible and other long-term assets | 31,940.00 | |
| Cash paid for investment | ||
| Net increase of mortgaged loans | ||
| Net cash received from subsidiaries and other units obtained | ||
| Other cash paid concerning investing activities | ||
| Subtotal of cash outflow from investing activities | 31,940.00 | |
| Net cash flows arising from investing activities | -31,940.00 |
| III. Cash flows arising from financing activities | ||
| Cash received from absorbing investment | ||
| Including: Cash received from absorbing minority shareholders’ investment by subsidiaries | ||
| Cash received from loans | ||
| Cash received from issuing bonds | ||
| Other cash received concerning financing activities | ||
| Subtotal of cash inflow from financing activities | ||
| Cash paid for settling debts | ||
| Cash paid for dividend and profit distributing or interest paying | ||
| Including: Dividend and profit of minority shareholder paid by subsidiaries | ||
| Other cash paid concerning financing activities | ||
| Subtotal of cash outflow from financing activities | ||
| Net cash flows arising from financing activities | ||
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | ||
| V. Net increase of cash and cash equivalents | -3,362,971.19 | -8,837,982.23 |
| Add: Balance of cash and cash equivalents at the period -begin | 19,177,276.18 | 24,015,287.71 |
| VI. Balance of cash and cash equivalents at the period -end | 15,814,304.99 | 15,177,305.48 |
6. Cash Flow Statement of Parent Company
In RMB
| Item | Current Period | Last Period |
| I. Cash flows arising from operating activities: | ||
| Cash received from selling commodities and providing labor services | 6,974.00 | |
| Write-back of tax received | 5,306.26 | |
| Other cash received concerning operating activities | 1,963,467.24 | 4,981,778.23 |
| Subtotal of cash inflow arising from operating activities | 1,975,747.50 | 4,981,778.23 |
| Cash paid for purchasing commodities and receiving labor service | 17,278.04 | |
| Cash paid to/for staff and workers | 1,237,282.20 | 1,439,294.18 |
| Taxes paid | 733,058.03 | 186,158.39 |
| Other cash paid concerning operating activities | 4,794,142.84 | 3,108,206.34 |
| Subtotal of cash outflow arising from operating activities | 6,781,761.11 | 4,733,658.91 |
| Net cash flows arising from operating activities | -4,806,013.61 | 248,119.32 |
| II. Cash flows arising from investing activities: | ||
| Cash received from recovering investment | ||
| Cash received from investment income | ||
| Net cash received from disposal of fixed, intangible and other long-term assets | ||
| Net cash received from disposal of subsidiaries and other units | ||
| Other cash received concerning investing activities | ||
| Subtotal of cash inflow from investing activities | ||
| Cash paid for purchasing fixed, intangible and other long-term assets |
| Cash paid for investment | ||
| Net cash received from subsidiaries and other units | ||
| Other cash paid concerning investing activities | ||
| Subtotal of cash outflow from investing activities | ||
| Net cash flows arising from investing activities | ||
| III. Cash flows arising from financing activities | ||
| Cash received from absorbing investment | ||
| Cash received from loans | ||
| Cash received from issuing bonds | ||
| Other cash received concerning financing activities | ||
| Subtotal of cash inflow from financing activities | ||
| Cash paid for settling debts | ||
| Cash paid for dividend and profit distributing or interest paying | ||
| Other cash paid concerning financing activities | ||
| Subtotal of cash outflow from financing activities | ||
| Net cash flows arising from financing activities | ||
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | ||
| V. Net increase of cash and cash equivalents | -4,806,013.61 | 248,119.32 |
| Add: Balance of cash and cash equivalents at the period -begin | 15,398,405.80 | 1,143,418.29 |
| VI. Balance of cash and cash equivalents at the period -end | 10,592,392.19 | 1,391,537.61 |
7. Statement of Changes in Owners’ Equity (Consolidated)
This Period
In RMB
| Item | This Period | ||||||||||||
| Owners’ equity attributable to parent company | Minority interests | Total owners’ equity | |||||||||||
| Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Provision of general risk | Retained profit | |||||
| Preferred stock | Perpetual capital securities | Other | |||||||||||
| I. Balance at the end of the last year | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,195,957,201.01 | 2,962,699.67 | 18,860,970.52 | |||||||
| Add: Changes of accounting policy | |||||||||||||
| Error correction of the last period | |||||||||||||
| Enterprise combine under the same control | |||||||||||||
| Other | |||||||||||||
| II. Balance at the beginning of this year | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,195,957,201.01 | 2,962,699.67 | 18,860,970.52 | |||||||
| III. Increase/ Decrease in this year (Decrease is listed with “-”) | 554,162.06 | -62,245.65 | 491,916.41 | ||||||||||
| (i) Total comprehensive income | 554,162.06 | -62,245.65 | 491,916.41 | ||||||||||
| (ii) Owners’ devoted and decreased capital | |||||||||||||
| 1.Common shares invested by shareholders | |||||||||||||
| 2. Capital invested by holders of other equity instruments | |||||||||||||
| 3. Amount reckoned into | |||||||||||||
| owners equity with share-based payment | |||||||||||||
| 4. Other | |||||||||||||
| (III) Profit distribution | |||||||||||||
| 1. Withdrawal of surplus reserves | |||||||||||||
| 2. Withdrawal of general risk provisions | |||||||||||||
| 3. Distribution for owners (or shareholders) | |||||||||||||
| 4. Other | |||||||||||||
| (IV) Carrying forward internal owners’ equity | |||||||||||||
| 1. Capital reserves conversed to capital (share capital) | |||||||||||||
| 2. Surplus reserves conversed to capital (share capital) | |||||||||||||
| 3. Remedying loss with surplus reserve | |||||||||||||
| 4. Other | |||||||||||||
| (V) Reasonable reserve | |||||||||||||
| 1. Withdrawal in the report period | |||||||||||||
| 2. Usage in the report period | |||||||||||||
| (VI)Others | |||||||||||||
| IV. Balance at the end of the report period | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,195,403,038.95 | 2,900,454.02 | 19,352,886.93 |
Last Period
In RMB
| Item | Last Period | ||||||||||
| Owners’ equity attributable to parent company | Minority interests | Total owners’ equity | |||||||||
| Share | Other equity instrument | Capital reserve | Less: Invento | Other compre | Reasonable | Surplus reserve | Provision of | Retained profit | |||
| capital | Preferred stock | Perpetual capital securities | Other | ry shares | hensive income | reserve | general risk | ||||||
| I. Balance at the end of the last year | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,197,486,788.28 | 2,913,127.47 | 17,281,811.05 | |||||||
| Add: Changes of accounting policy | |||||||||||||
| Error correction of the last period | |||||||||||||
| Enterprise combine under the same control | |||||||||||||
| Other | |||||||||||||
| II. Balance at the beginning of this year | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,197,486,788.28 | 2,913,127.47 | 17,281,811.05 | |||||||
| III. Increase/ Decrease in this year (Decrease is listed with “-”) | 1,529,587.27 | 49,572.20 | 1,579,159.47 | ||||||||||
| (i) Total comprehensive income | 1,529,587.27 | 49,572.20 | 1,579,159.47 | ||||||||||
| (ii) Owners’ devoted and decreased capital | |||||||||||||
| 1.Common shares invested by shareholders | |||||||||||||
| 2. Capital invested by holders of other equity instruments | |||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | |||||||||||||
| 4. Other | |||||||||||||
| (III) Profit distribution | |||||||||||||
| 1. Withdrawal of surplus reserves | |||||||||||||
| 2. Withdrawal of general risk |
| provisions | |||||||||||||
| 3. Distribution for owners (or shareholders) | |||||||||||||
| 4. Other | |||||||||||||
| (IV) Carrying forward internal owners’ equity | |||||||||||||
| 1. Capital reserves conversed to capital (share capital) | |||||||||||||
| 2. Surplus reserves conversed to capital (share capital) | |||||||||||||
| 3. Remedying loss with surplus reserve | |||||||||||||
| 4. Other | |||||||||||||
| (V) Reasonable reserve | |||||||||||||
| 1. Withdrawal in the report period | |||||||||||||
| 2. Usage in the report period | |||||||||||||
| (VI)Others | |||||||||||||
| IV. Balance at the end of the report period | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,195,957,201.01 | 2,962,699.67 | 18,860,970.52 |
8. Statement of Changes in Owners’ Equity (Parent Company)
This Period
In RMB
| Item | This Period | ||||||||||
| Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Retained profit | Total owners’ equity | |||
| Preferred stock | Perpetual capital securities | Other | |||||||||
| I. Balance at the end of the last year | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,202,859,787. | 8,995,684.68 | ||||||
| 18 | |||||||||||
| Add: Changes of accounting policy | |||||||||||
| Error correction of the last period | |||||||||||
| Other | |||||||||||
| II. Balance at the beginning of this year | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,202,859,787.18 | 8,995,684.68 | ||||||
| III. Increase/ Decrease in this year (Decrease is listed with “-”) | 699,401.93 | 699,401.93 | |||||||||
| (i) Total comprehensive income | 699,401.93 | 699,401.93 | |||||||||
| (ii) Owners’ devoted and decreased capital | |||||||||||
| 1.Common shares invested by shareholders | |||||||||||
| 2. Capital invested by holders of other equity instruments | |||||||||||
| 3. Amount reckoned into owners equity with share-based payment | |||||||||||
| 4. Other | |||||||||||
| (III) Profit distribution | |||||||||||
| 1. Withdrawal of surplus reserves | |||||||||||
| 2. Distribution for owners (or shareholders) | |||||||||||
| 3. Other | |||||||||||
| (IV) Carrying forward internal owners’ equity | |||||||||||
| 1. Capital reserves conversed to capital (share capital) |
| 2. Surplus reserves conversed to capital (share capital) | |||||||||||
| 3. Remedying loss with surplus reserve | |||||||||||
| 4. Other | |||||||||||
| (V) Reasonable reserve | |||||||||||
| 1. Withdrawal in the report period | |||||||||||
| 2. Usage in the report period | |||||||||||
| (VI)Others | |||||||||||
| IV. Balance at the end of the report period | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,202,160,385.25 | 9,695,086.61 |
Last period
In RMB
| Item | Last period | ||||||||||
| Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Retained profit | Total owners’ equity | |||
| Preferred stock | Perpetual capital securities | Other | |||||||||
| I. Balance at the end of the last year | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,204,273,705.98 | 7,581,765.88 | ||||||
| Add: Changes of accounting policy | |||||||||||
| Error correction of the last period | |||||||||||
| Other | |||||||||||
| II. Balance at the beginning of this year | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,204,273,705.98 | 7,581,765.88 | ||||||
| III. Increase/ Decrease in this year (Decrease is | 1,413,918.80 | 1,413,918.80 | |||||||||
| listed with “-”) | |||||||||||
| (i) Total comprehensive income | 1,413,918.80 | 1,413,918.80 | |||||||||
| (ii) Owners’ devoted and decreased capital | |||||||||||
| 1.Common shares invested by shareholders | |||||||||||
| 2. Capital invested by holders of other equity instruments | |||||||||||
| 3. Amount reckoned into owners equity with share-based payment | |||||||||||
| 4. Other | |||||||||||
| (III) Profit distribution | |||||||||||
| 1. Withdrawal of surplus reserves | |||||||||||
| 2. Distribution for owners (or shareholders) | |||||||||||
| 3. Other | |||||||||||
| (IV) Carrying forward internal owners’ equity | |||||||||||
| 1. Capital reserves conversed to capital (share capital) | |||||||||||
| 2. Surplus reserves conversed to capital (share capital) | |||||||||||
| 3. Remedying loss with surplus reserve | |||||||||||
| 4. Other | |||||||||||
| (V) Reasonable reserve | |||||||||||
| 1. Withdrawal in the report period | |||||||||||
| 2. Usage in the report period |
| (VI)Others | |||||||||||
| IV. Balance at the end of the report period | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,202,859,787.18 | 8,995,684.68 |
III. Company Profile
1. History and basic information
According to the Approval Document SFBF (1991) No. 888 issued by the People’s Government of
Shenzhen, Shenzhen China Bicycle Company (Holdings) Limited (hereinafter referred to as theCompany) was reincorporated as the company limited by shares in November 1991. On 28December 1991, upon the Approval Document SRYFZ(1991) No. 119 issued by Shenzhen Special
Economic Zone Branch of the People’s Bank of China, the Company got listed on Shenzhen Stock
Exchange. Registered capital of the Company amounted as 551,347,947.00 Yuan.Legal representative: Li HaiLocation: No. 3008, Buxin Road, Luohu District, ShenzhenCertificate for Uniform Social Credit Code: 9144030061883045242. Business nature and main operation activitiesThe Company's industry: machinery manufacturing industryMain operation activities: The production and assembly of various bicycles and spare parts,
components, parts, mechanical product, sport machinery, fine chemicals, carbon fiber compositesmaterial, household electrical appliance and affiliated components (products management bylicense excluded).
The majority of its products were previously exported, however, the sales volume sharply declinedin recent years because of the antidumping litigation. Hence, the Company commences on the debtreorganization and the reorganization plan was completed on 27 December 2013 with bankruptcyproceedings terminated. Meanwhile, makes greater efforts to develop and research the newproducts, and creates a range of electrical bicycles to occupy the domestic market.
Main products and services provided so far: EMMELLE bicycles, electrical bicycles and lithiumbattery material
3. Release of the financial reportThe Financial Report released on 21 August 2018 after approved by 8th session of 10th BOD of
the Company
One subsidairy included in consolidate scope in the period, and no changes in the period, foundmore in Note VIII and IX
IV. Compilation Basis of Financial Statement
1. Compilation BasisThe financial statement is prepared based on continuing operation assumptions, and according to
actual occurrence, in line with relevant accounting rules and follow important accounting policyand estimation.
2. Going concernOn 11 May 2012, the largest shareholder and biggest creditor of the Company, Shenzhen
Guosheng Energy Investment Development Co., Ltd. applied to Shenzhen Municipal Intermediate
People's Court for reforming the Company as the Company couldn’t pay off the matured debts and
was seriously insolvent. On 12 October 2012, Shenzhen Municipal Intermediate People's Courtruled to accept the application proposed by Guosheng Energy according to (2012) ShenzhenIntermediate Court Po Zi No. 30 civil ruling. On the last ten-day of October 2012, ShenzhenMunicipal Intermediate People's Court ruled to reform the Company since 25 October 2012according to (2012) Shenzhen Intermediate Court Po Zi No. 30-1 civil ruling, appointed King &Wood (Shenzhen) Mallesons and Shenzhen ZhengYuan Liquidation Affairs Co., Ltd. as thecustodians of the Company. On the same day, Shenzhen Municipal Intermediate People's Courtmade (2012) Shenzhen Intermediate Court Po Zi No. 30-1 written decision, and approved theCompany to manage property and business affairs by itself under the supervision of custodians
according to the law. On 5 November 2013, the Shenzhen Intermediate People’s Court (2012)
Shen Zhong Fa Po Zi No. 30-6 Civil Ruling Paper judged that approved the reorganization plan of
the Company. On 27 December 2013, the Civil Ruling Paper Shenzhen Intermediate People’s
Court (2012) Shen Zhong Fa Po Zi No. 30-10 ruled that the reorganization plan of CBC wascompleted and bankruptcy procedures of the Company closed down.
The Company has solved the debt problem by reforming, realized the net assets with positivevalue, the main business of bicycle is able to be maintained and realizes the stable development.The Company has set up the conditions for introducing the recombination party in the reformingplan, and expects to restore the abilities of sustainable operation and sustained profitability byreorganization. The conditions of introducing the recombination party includes: the assessed valueof net assets should be no less than 2 billion Yuan, the net assets in the same year forimplementing the major reorganization should be no less than 200 million Yuan. The Company
doesn’t have the recombination party at the moment.
V. Main accounting policy and Accounting Estimate
Tips for specific accounting policy and estimate:
Nil
1. Declaration on compliance with accounting standardsThe financial statement prepared by the Company, based on follow compilation basis, is comply
with the requirement of new accounting standards for business enterprise issued by Ministry ofFinance and its application guide, commentate as well as other regulations (collectively referred toas Accounting Standards for Business Enterprise), which is reflect a real and truth financial statusof the Company, as well as operation results and cash flow situations.
Furthermore, the statement has reference to the listing and disclosure requirement from “Rules
Governing the Disclosure of Information for Enterprise with Stock Listed No.15-general
regulation of financial report” (2014 Revised) (hereinafter referred to as NO. 15 (2014 Revised)
document)2. Accounting periodCalendar year is the accounting period for the Company, which is starting from 1 January to 31
December.
3. Business cyclesThe business period for the Company, which is the Gregorian calendar starting from 1 January to
31 December4. Recording currency
The Company and its subsidiaries take RMB as the standard currency for bookkeeping.
5. Accounting treatment for business combinations under the same control and those notunder the same control
①The business combination under the same control
For a business merger that is under the same control and is achieved by the Company through onesingle transaction or multiple transactions, assets and liabilities obtained from that businesscombination shall be measured at their book value at the combination date as recorded by theparty being absorbed in the consolidated financial statement of ultimate controlling party. Capitalreserve shall be adjusted as per the difference between the book value of obtained net assets and
the book value of paid consolidated consideration (or the nominal value of the issued shares) ofthe Company; retained earnings shall be adjusted if the capital reserve is not sufficient for offset.
The asset or liability items of consolidated party are measured at their carrying value in theconsolidated balance sheet as of the consolidation date. Consolidated Profit and Loss include allitems of income, expenditures and profit from beginning till end of the period of the consolidatedparty(ies). Net profit made by the consolidated company should be listed exclusively in theconsolidated Profit and Loss. Cash flows from beginning till end of the period of all consolidatedparties are taken into the consolidated Cash Flow.
②The business combinations not involving enterprises under common control
The Company will validate the difference that the combined cost is more than the fair value of thenet identifiable assets gained from the acquiree on the acquisition date as goodwill; where thecombined cost is less than the fair value of net identifiable assets gained from the acquiree duringbusiness combination, the fair value and combined cost of various identifiable assets, liabilitiesand contingent liabilities from the acquiree must be rechecked. Where the combined cost is, afterthe recheck, still less than the fair value of net identifiable assets gained from the acquiree duringbusiness combination, the difference shall be charged to current profits and losses.
As for business combination not under common control and realized through multiple transactionsand by steps, the Company shall make accounting treatment as follows:
A. Adjust the initial investment cost of long-term equity investments. As for stock equities held
before the acquisition date accounted according to the equity method, re-measurement iscarried out according to the fair value of the equity on the acquisition date. The balancebetween the fair value and the book value is included in the current investment income. If the
acquiree’s stock equities held before the acquisition date involves changes of other
comprehensive incomes and other owner's equities under accounting with the equity method,the balance between the fair value and the book value is included in the current investmentincome on the acquisition date, excluding other comprehensive incomes incurred by changesdue to re-measurement of net liabilities or net assets of the defined benefit plan.
B. Confirm the goodwill (or include the amount in the profits and losses). The initial investment
cost of long-term equity investments adjusted in step 1 is compared with the fair value of netidentifiable assets of the subsidiary shared on the acquisition date. If the former is greater thanthe latter, the balance is confirmed as goodwill; if the former is less than the latter, the balanceis included in the current profits and losses.
(2)Loss of control of a subsidiary in multiple transactions in which it disposes equity interests ofits subsidiary in stages
①In determining whether to account for the multiple transactions as a single transaction
A parent shall consider all the terms and conditions of the transactions and their economic effects.One or more of the following may indicate that the parent should account for the multiplearrangements as a single transaction:
A. Arrangements are entered into at the same time or in contemplation of each other;B. Arrangements work together to achieve an overall commercial effect;C. The occurrence of one arrangement is dependent on the occurrence of at least one other
arrangement;D. One arrangement considered on its own is not economically justified, but it is economically
justified when considered together with other arrangements.
②Accounting treatment for each of the multiple transactions forming part of a bundled
transactions which eventually results in loss of control the subsidiary during disposal of itssubsidiary in stages
If each of the multiple transactions forms part of a bundled transactions which eventually resultsin loss of control the subsidiary, these multiple transactions should be accounted for as a singletransaction. In the consolidated financial statements, the difference between the consideration
received and the corresponding percentage of the subsidiary’s net assets in each transaction prior
to the loss of control shall be recognized in other comprehensive income and transferred to theprofit or loss when the parent eventually loses control of the subsidiary.
The remaining equity investment shall be re-measured at its fair value in the consolidated financialstatements at the date when control is lost. The difference between the total amount ofconsideration received from the transaction that resulted in the loss of control and the fair value ofthe remaining equity investment and the share of net assets of the former subsidiary calculatedcontinuously from the acquisition date or combination date based on the previous shareholdingproportion, shall be recognized as investment income for the current period when control is lost.The amount previously recognized in other comprehensive income in relation to the former
subsidiary’s equity investment should be transferred to investment income for the current period
when control is lost
③Accounting treatment for each of the multiple transactions NOT forming part of a bundled
transactions which eventually results in loss of control the subsidiary during disposal of itssubsidiary in stages
If the Company doesn't lose control of investee, the difference between the amount of theconsideration received and the corresponding portion of net assets of the subsidiary shall beadjusted to the capital reserve (capital premium) in the consolidated financial statements.
If the Company loses control of investee, the remaining equity investment shall be re-measured at
its fair value in the consolidated financial statements at the date when control is lost. Thedifference between the total amount of consideration received from the transaction that resulted inthe loss of control and the fair value of the remaining equity investment and the share of net assetsof the former subsidiary calculated continuously from the acquisition date or combination datebased on the previous shareholding percentage, shall be recognized as investment income for thecurrent period when control is lost. The amount previously recognized in other comprehensive
income in relation to the former subsidiary’s equity investment should be transferred to investment
income for the current period when control is lost.6. Compilation method of consolidated financial statementConsolidated financial statements are prepared by the Company in accordance with Accounting
Standard for Business Enterprise No. 33-Consolidated Financial Statements and based on financialstatements of parent company and its subsidiaries and other related information.
When consolidating the financial statements, the following items are eliminated: internal equity
investment and owners’ equity of subsidiaries, proceeds on internal investments and profit
distribution of subsidiaries, internal transactions, internal debts and claim. The accounting policiesadopted by subsidiaries are the same as parent company.
7. Classification of joint venture arrangement and accounting treatment for joint control(1) Affirmation and classification of joint venture arrangement
Joint arrangement refers to an arrangement controlled by two or more than two participants. Jointventure arrangement has the following characteristics: 1) Each participant is bound by thearrangement; 2) Two or more participants carry out joint control on implementation of thearrangement. Any participant cannot control the arrangement independently. Any participant forjoint control can stop other participants or participant combinations to independently control thearrangement.
Joint control refers to the sharing of control over certain arrangement under related agreements,and related activities of the arrangement must be determined only when obtaining the unanimousconsent of the parties sharing control.
Joint venture arrangement is classified in to joint operation and joint venture. Joint operationrefers to an arrangement that a joint party enjoys assets related to the arrangement and bearsliabilities related to the arrangement. Joint venture refers to an arrangement that a joint party onlyhas the power governing net assets of the arrangement.
(2) Accounting treatment of joint venture arrangement
Joint venture participants should confirm the following items related to interest shares in jointventure and carry out accounting settlement according to relevant provisions of the AccountingStandards for Business Enterprises: 1) confirm the assets held separately and confirm the assetsheld jointly based on shares; 2) confirm the liabilities borne separately and confirm the liabilitiesborne jointly based on shares; 3) confirm the income incurred after selling its shares in jointventure output; 4) confirm the income after selling the joint venture outputs based on shares; 5)confirm the expenses incurred separately and confirm the expenses incurred in joint venture basedon shares.
Joint venture participants should carry out accounting settlement for investments of the jointventure according to provisions of Accounting Standards for Business Enterprises
No.2–Long-term Equity Investments.
8. Recognition of cash and cash equivalentsCash in cash flow statement means the inventory cash and savings available for use anytime. Cash
equivalents refer to the short-term (generally due within three months since the date of purchase)highly liquid investments that are readily convertible into known amounts of cash and that aresubject to an insignificant risk of change in value.
9. Foreign currency transaction and financial statement conversion(1)Conversion for foreign currency transaction
When initially recognized, the foreign currency for the transaction shall be converted into CNYamount according to the spot exchange rate on the date of transaction. For the foreign currencymonetary items, conversion must be based on the spot exchange rate on the balance sheet date andthe exchange difference incurred from different exchange rates, except for the exchange differenceof principal and interest incurred due to foreign currency loan related to acquisition orconstruction of assets that qualify for capitalization, shall be charged to current profits and losses;foreign currency non-monetary items measured with historical cost are still converted as per thespot exchange rate on the transaction date and keep the RMB amount unchanged; foreign currencynon-monetary items measured with fair value shall be converted as per the spot exchange rate onthe date of determining the fair value and the difference shall be charged to current profits andlosses or other comprehensive income.
(2)Conversion of financial statements presented in foreign currencies
The asset and liability items in the balance sheet shall be converted at the spot exchange rate on
the balance sheet date; the owner’s equity items, except for the items of “undistributed profit”,
shall be converted at the spot exchange rate on the transaction date; the income and expenditureitems in the profit statement shall be converted at the spot exchange rate on the transaction date.The translation difference of foreign financial statements conducted as above is recognized asother comprehensive incomes.
10. Financial instruments(1) Classification of financial instruments
Financial assets can be divided into four types while initially recognized: financial assets at fairvalue through profit or loss (including transactional financial assets and those financial assetsdesignated as at fair value through profit or loss), held-to-maturity investments; loans &receivables; available-for-sale financial assets.
Financial liability can be divided into two types while initially recognized: financial liability at fairvalue through profit or loss (including transactional financial liability and those financial liabilitiesdesignated as at fair value through profit or loss) and other financial liability
(2)Recognition, measurement and derecognition of financial assets and financial liabilitiesFinancial assets or financial liabilities are recognized when the Group becomes a party to thecontractual provisions of the instrument. Financial assets or financial liabilities are initiallymeasured at fair value. For financial assets and financial liabilities at fair value through profit orloss, transaction costs are immediately recognized to profit or loss. For other financial assets orfinancial liabilities, transaction costs are included in their initial recognized amounts.
Financial assets are subsequently measured at fair value without considering of the possibletransaction costs upon the disposal thereof in the future, except that: (1) Held-to-maturityinvestments and loans and receivables are subsequently measured at amortized cost using theeffective interest method; and (2) Investments in equity instruments that do not have a quotedprice in an active market and whose fair value cannot be reliably measured, and derivativefinancial assets that are linked to and must be settled by delivery of such unquoted equityinstruments, they are measured at cost.
Financial liabilities are subsequently measured at amortized cost using the effective interestmethod, except that: (1) Financial liabilities at fair value through profit are subsequently measuredat fair value without considering of the possible transaction costs upon the settlement thereof inthe future; (2) Derivative financial liabilities that are linked to and must be settled by delivery ofan unquoted equity instrument without a quoted price in an active market whose fair value cannotbe reliably measured, they are subsequently measured at cost; and (3) Financial guarantee
contracts that are not designated as financial liabilities at fair value through profit or loss, or loancommitments to provide a loan at a below-market interest rate, which are not designated at fairvalue through profit or loss, subsequent to initial recognition, they are measured at the higher of:
(1) the amount determined in accordance with ASBE No. 13 “Contingencies”; and (2) the amount
initially recognized less cumulative amortization recognized in accordance with the principles set
out in ASBE No. 14 “Revenue”.
Any gains or losses arising from changes in the fair value on financial assets or financial liabilities,other than those hedging instrument, are accounted for as follows: (1) Gains or losses arising fromthe change in fair value on financial assets or financial liabilities at fair value through profit or lossare recorded as gains or losses from change in fair value; Any interest or dividend income earnedduring the holding on such financial assets are recognized to profit or loss. On disposal, thedifferences between the consideration received and initial recognized amount are recognized asinvestment income and adjust to the gains or losses from change in fair value accordingly; and (2)Changes in fair value of available-for-sale financial assets are recorded in the other comprehensiveincome. Interest calculated using the effective interest method for the periods, in which the assetsare held, are recognized as investment income. Cash dividends from available-for-sale equityinvestments are recognized as investment income when the dividends are declared by the investee.On disposal, the differences between the considerations received and the carrying amounts offinancial assets after deducting the accumulated fair values adjustments previously recorded in theother comprehensive income are recognized as investment income.
A financial asset is derecognized when the contractual rights to the cash flows from the financialasset terminate, or when it transfers substantially all the risks and rewards of ownership of theasset to another entity. A financial liability (or part of it) is derecognized only when the underlyingpresent obligations (or part of it) are discharged.
(3)Recognition and measurement on transfer of financial assetsIf the Group has transferred substantially all the risks and rewards of ownership of the financialasset to the transferee, the financial asset should be derecognized; If the Group retainssubstantially all the risks and rewards of ownership of a financial asset, the transferred financialasset should be recognized and the consideration received should be recognized as a financialliability; If the Group neither transfers nor retains substantially all the risks and rewards ofownership of a financial asset, it shall be accounted for as follows: (1)the financial asset should bederecognized if the Group waives control over the asset; (2)it recognizes the financial asset to theextent of its continuing involvement in the transferred financial asset and recognizes an associatedliability if the Group does not waives control over the asset.
For a transfer of a financial asset in its entirety that satisfies the derecognition criteria, thedifference of the following is recognized to profit or loss: (1) The carrying amount of the financialasset transferred; and (2) The sum of the consideration received from the transfer and anycumulative change of fair value that has been previously recognized in other comprehensiveincome directly. If a part of the transferred financial asset qualifies for derecognition, the carryingamount of the transferred financial asset is allocated between the part that continues to berecognized and the part that is derecognized, based on the respective fair values of those parts. Thedifference of the following is recognized to profit or loss: (i) The carrying amount allocated to thepart derecognized; and (ii) The sum of the consideration received for the part derecognized andany cumulative change of fair value allocated to the part derecognized which has been previouslyrecognized in other comprehensive income directly.
(4)Determination of fair value of financial assets and financial liabilitiesFor a financial asset or financial liability which has an active market, the Group considers thequoted price in the active market to determine its fair value. For a financial assets or financialliability which has no active market, the Group uses a valuation technique (valuation techniques
include using recent arm’s length market transactions between knowledgeable, willing parties,
reference to the current fair value of another instrument that is substantially the same, discountedcash flow analysis and option pricing models) to determine its fair value. For a financial assetacquired or a financial liability assumed initially, its fair value is based on the price of markettransactions.
(5) Provision for impairment on financial assets other than account receivablesAt each balance sheet date, the Group assesses the carrying amounts of its financial assets otherthan those financial assets at fair value through profit or loss. If there is objective evidence that afinancial asset is impaired, the Group determines the amount of any impairment loss.
For a financial asset that is individually significant, the Company assesses the asset individuallyfor impairment. For a financial asset that is not individually significant, the Company assesses theasset individually for impairment or includes the asset in a group of financial assets with similarcredit risk characteristics and collectively assesses them for impairment. If the Companydetermines that no objective evidence of impairment exists for an individually assessed financialasset (whether significant or not), it includes the asset in a group of financial assets with similarcredit risk characteristics and collectively reassesses them for impairment.
At the end of the reporting period, if there is objective evidence that an impairment loss on afinancial asset carried at amortized cost has occurred, an impairment loss is recognized as the
excess of the carrying amount of the financial asset over its present value of estimated future cashflows to profit or loss. If an impairment loss has been incurred on an investment in unquotedequity instrument without a quoted price in an active market whose fair value cannot be reliablymeasured, or on a derivative financial asset that is linked to and must be settled by delivery ofsuch equity instrument, an impairment loss is recognized as the excess of the carrying amount ofthe unquoted equity investment or a derivative financial asset over its present value of estimatedfuture cash flows discounted at the current market rate of return for a similar financial asset toprofit or loss.
An impairment is recognized where there is a significant decrease in the fair value of available forsale financial assets, or taken into account all factors, the decrease trend is not temporary to profitor loss. The cumulative loss arising from decline in fair value previously recognized directly in theother comprehensive income is reclassified from the capital reserve to profit or loss.
(6)There is no reclassification of held-to-maturity investment which is not due into financial assetsavailable for sale during the period.
11. Account receivable(1) Account receivable with single significant amount and withdrawal single item bad debt provision
| Account with single significant amount | Over RMB 5 million |
| Withdrawal method for bad debt provision of account receivable with single significant amount | Conducted impairment testing separately, balance between the present value of future cash flow and its carrying value, bad debt provision withdrawal and reckoned into current gains/losses. For those without impairment being found after test, collected into relevant combination for accrual. |
(2) Accounts receivable whose bad debts provision was accrued by combination based oncredit risk characteristics portfolio
| Combination | Bad debt provision accrual |
| Bad debt provision of receivables | Age analysis method |
Accrual bad debt provision by age analysis in combination:
√ Applicable □ Not applicable
| Age | Accrual ratio | Accrual ratio for other receivable |
| Within one year (one year included) | 0.30% | 0.30% |
| 1－2 years | 0.30% | 0.30% |
| 2－3 years | 0.30% | 0.30% |
| Over 3 years | 100.00% | 100.00% |
In combination, withdrawal proportion of bad debt provision based on balance proportion
□ Applicable √ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods:
□ Applicable √ Not applicable
(3) Account receivable with minor single amount but with withdrawal bad debt provision forsingle item
| Reasons for provision of bad debt reserve | If any objective evidence shows that it may has impaired, such as the debtor revoke, bankruptcy or death, and after liquidate with bankrupt’s estates or heritage, the money still un-collectable, and in sufficient of cash flow |
| Provision method of bad debt reserve | As for the receivable with objective evidence shows that it might be impaired, an independent impairment test may be carried out for impairment losses recognized |
12. Inventory
Whether the company needs to comply with the disclosure requirements of the particular industryNo
(1) Classification of inventoryThe inventory of the Company refers to such seven classifications as the raw materials, product inprocess, goods on hand, wrap page, low value consumables, materials for consigned processing andgoods sold.
(2) Valuation of inventoriesInventories are initially measured at cost upon acquisition, which includes procurement costs,
processing costs and other costs. The prices of inventories are calculated using weighted averagemethod when they are delivered.
(3) Provision for inventory impairmentWhen a comprehensive count of inventories is done at the end of the period, provision for
inventory impairment is allocated or adjusted using the lower of the cost of inventory and the netrealizable value. The net realizable value of stock in inventory (including finished products,inventory merchandize and materials for sale) that can be sold directly is determined using theestimated saleable price of such inventory deducted by the cost of sales and relevant taxation overthe course of ordinary production and operation. The net realizable value of material in inventorythat requires processing is determined using the estimated saleable price of the finished productdeducted by the cost to completion, estimated cost of sales and relevant taxation over the course of
ordinary production and operation. The net realizable value of inventory held for performance ofsales contract or labor service contract is determined based on the contractual price; in case theamount of inventory held exceeds the contractual amount, the net realizable value of the excessportion of inventory is calculated using the normal saleable price.Provision for impairment is made according to individual items of inventories at the end of theperiod; however, for inventories with large quantity and low unit price, the provision is made bycategories; inventories of products that are produced and sold in the same region or with the sameor similar purpose or usage and are difficult to be measured separately are combined for provisionfor impairment.If the factors causing a previous write-off of inventory value has disappeared, the amountwritten-off is reversed and the amount provided for inventory impairment is reversed andrecognized in profit or loss for the period.(4)Inventory system
Perpetual inventory system is adopted.13. Assets held for sale
The Company classifies such corporate components (or non-current assets) that meet thefollowing criteria as held-for-sale: (1) Disposable immediately under current conditions based onsimilar transactions for disposals of such assets or practices for the disposal group; (2) Probabledisposal; that is, a decision has been made on a plan for disposal and an undertaking to purchasehas been obtained (the undertaking to purchase means a binding purchase agreement entered intoby the Company and other parties, which contains transaction price, time and adequately strictpunishments for breach of contract provisions, which renders the possibility of materialadjustment or revocation of the agreement is extremely minor), and the disposal is expected to becompleted within a year. Besides, approval from relevant competent authorities or regulatoryauthorities has been obtained as required by relevant rules.
The expected net residual value of asset held for sale is adjusted by the Company to reflect its fairvalue less selling expense, provided that the net amount shall not exceed the original carryingvalue of the asset. In case that the original value is higher than the adjusted expected net residualvalue, the difference shall be recorded in profit or loss for the period as asset impairment loss, andallowance of impairment for the asset shall be provided. Impairment loss recognized in respect ofthe disposal group held for sale shall be used to offset the carrying value of the goodwill in thedisposal group, and then offset the carrying value of the non-current assets within the disposalgroup based on their respective proportion of their carrying value.
In respect of the non-current assets held for sale, if the net amount after their fair value less the
selling expenses increased as at the subsequent balance date, the reduced amount before will berecovered and reversed in the assets impairment loss amount recognized after being classified asheld for sale, and the reversed amount will be recorded in the current profits or loss. Theimpairment loss on assets recognized before being classified as held for sale will not be reversed.In respect of the disposal group held for sale, if the net amount after their fair value less the sellingexpenses increased as at the subsequent balance date, the reduced amount before will be recoveredand reversed in the assets impairment loss amount recognized in non-current assets after beingclassified as held for sale, and the reversed amount will be recorded in the current profits or loss.The reduced book value of the goodwill as well as the impairment loss on assets recognized beforethe non-current assets are classified as held for sale will not be reversed. The subsequent reversedamount in respect of the impairment loss on assets recognized in the disposal group held for salewill increase the book value in proportion of the book value of each non-current assets (other thangoodwill) in the disposal group.
In respect of loss of control in a subsidiary arising from disposal of the investment in suchsubsidiary, the investment in a subsidiary shall be classified as held for sale in its entirety in theindividual financial statement of the parent company, and all the assets and liabilities of thesubsidiary shall be classified as held for sale in the consolidated financial statement subject to thatthe proposed disposal of investment in the subsidiary satisfies such conditions as required forbeing classified as held for sale notwithstanding part equity investment will be retained by theCompany after such disposal.
14. Long-term equity investments(1)Determination of investment costs
1) If it is formed by the business combination under the common control, and that the combiningparty takes cash payment, transfer of non-cash assets, assumption of debts or issuance of equity
securities as the consolidation consideration, the shares of the book value of the owner’s equityobtained from the combined party on the date of combination in the ultimate controlling party’s
consolidated financial statements shall be recognized as its initial investment cost. Capital reservesshall be adjusted according to the balance between the initial investment cost for long-term equityinvestment and the book value of paid consolidation consideration or the total face value of issuedshares (capital premium or equity premium). If capital reserves are insufficient for offset, retainedearnings shall be adjusted.
As for business combination under the common control realized by the Company through severaltransactions, the initial investment cost of the investment shall be determined based on the share of
the carrying value of the owners’ equity of the consolidated party as calculated according to the
shareholding proportion on the consolidation date. Difference between initial investment cost and
the carrying value of long-term equity investment before combination and the sum of carryingvalue of newly paid consideration for additional shares acquired on the date of combination is toadjust capital reserve (capital premium or equity premium). If the balance of capital reserve isinsufficient, any excess is adjusted to retained earnings.
2) As for long-term equity investment formed from business combination not under commoncontrol, the fair value of the consolidated consideration paid shall be deemed as the initialinvestment cost on the acquisition date.
3) Except those ones formed by the business combination, for all items obtained by means of cashpayment, actually paid acquisition costs shall be taken as the initial investment cost. For thoseones obtained by the issuance of equity securities, the fair value of the issued equity securitiesshall be taken as the initial investment cost. For those ones invested by investors, the value agreedin the investment contract or agreement shall be taken as the initial investment cost, provided thatthe value agreed in the contract or agreement shall be fair.
(2)Subsequent measurement and profit or loss recognitionFor a long-term equity investment where the Company can exercise control over the investee, the
long-term investment is accounted for using the cost method in the Company’s financial
statements. The equity method is adopted when the Group has joint control, or exercisessignificant influence on the investee.
Under cost method, long term equity investment is measured at initial investment cost. Except forthe price actually paid for obtaining the investment or the cash dividends or profits declared butnot yet distributed which is included in the consideration, the Company recognizes cash dividendsor profits declared by the investee as current investment gains, and determine whether there isimpairment on long term investment according to relevant assets impairment policies.
Under equity method, when the initial investment cost of the long-term equity investment exceedsthe share of fair value in the net identifiable assets in the investee, the difference shall be includedin initial investment cost of the long-term equity investment. When the initial investment cost islower than the share of fair value in the net identifiable asset in the investee, such difference isrecognized in profit or loss for the period with adjustment of cost of the long-term equityinvestment.
Under equity method, after the Company acquires a long-term equity investment, it shall, inaccordance with its attributable share of the net profit or loss realized by the investee, recognizethe investment profit or loss and adjust carrying value of the investment. The Group recognizes its
share of the investee’s net profits or losses after making appropriate adjustments to the investee’snet profits and losses based on the fair value of the investee’s identifiable assets at the acquisitiondate, using the Group’s accounting policies and periods, and eliminating the portion of the profits
or losses arising from internal transactions with its joint ventures and associates, attributable to theinvesting entity according to its shareholding proportion (but impairment losses for assets arisingfrom internal transactions shall be recognized in full). The carrying amount of the investment is
reduced based on the Group’s share of any profit distributions or cash dividends declared by theinvestee. The Group’s share of net losses of the investee is recognized to the extent the carrying
amount of the investment together with any long-term interests that in substance form part of itsnet investment in the investee is reduced to zero, except that the Group has the obligations toassume additional losses. The Group adjusts the carrying amount of the long-term equity
investment for any changes in owners’ equity of the investee (other than net profits or losses) andincludes the corresponding adjustments in the owners’ equity of the Group.
(3) Determination of control and significant influence on investeeControl is the power over an investee. An investor must have exposure or rights to variable returns
from its involvement with the investee, and the ability to use its power over the investee to affect
the amount of the investor’s returns. Significant influence is the power to participate in the
financial and operating policy decisions of the investee but is not control or joint control withother parties over those policies
(4)Disposal of long-term equity investment1) Partial disposal of long term investment in which control is retainedWhen long term investment is been partially disposed but control is retained by the company, the
difference between disposal proceeds and carrying amount of the proportion being disposed isaccounted for through profit or loss.
2) Partial disposal of long term investment in which control is lostWhen long term investment is partially disposed and control is lost as a result, the carrying value
of the long term invest on the stock right, the difference between carrying amount of the part beingdisposed and disposal proceeds should be recognized as profit or loss. The residual part should betreated as long term investment or other financial assets according to their carrying amount. Afterpartial disposal, if the company is able to exert significant influence or common control over theinvestee, the investment should be measured according to cost method or equity method, incompliance with relevant accounting standards and regulations.
(5)Impairment test and provision for impairmentIf there is objective evidence on the balance sheet date showing investment in subsidiaries,
associates and joint ventures is impaired, provision of impairment shall be made against thedifference between the carrying amount and the recoverable amount of the investment.
15. Investment property
Measurement modeMeasured by cost methodDepreciation or amortization method
(1) Investment property including land use right which has been rented out, land use right whichis held for transfer upon appreciation and buildings which has been rented out.(2) Investment properties are initially measured at cost and subsequently measured as per the costpattern, and relevant withdrawal of provision for depreciation or amortization is carried out by thesame method for fixed assets and intangible assets. As of the balance sheet date, where there isany indication that an investment property experiences impairment, the relevant impairmentprovision shall be provided for based on the difference between the carrying value and therecoverable amount.
16. Fixed assets(1) Confirmation conditionsFixed assets refer to the tangible assets for production of products, provision of labor, lease or
operation, and with a service life in excess of 1 financial year.(2) Depreciation methods
| Categories | Method | Years of depreciation | Scrap value rate | Yearly depreciation rate |
| Housing buildings | Straight-line depreciation | 20 | 10% | 4.5% |
| Machinery equipment | Straight-line depreciation | 10 | 10% | 9% |
| Office equipment | Straight-line depreciation | 5 | 10% | 18% |
| Electronic equipment | Straight-line depreciation | 5 | 10% | 18% |
| Means of transportation | Straight-line depreciation | 5 | 10% | 18% |
| Other equipment | Straight-line depreciation | 5 | 10% | 18% |
(3) Recognization basis, valuation and depreciation method for financial lease assetsFinance lease is determined when one or a combination of the following conditions are satisfied:
(1) the ownership has been transferred to the lessee when the leasing term is due; (2) the lessee hasthe option to purchase the leasing asset at a price that is much lower than its fair value, so it can bereasonably determined that the lessee will take the option at the very beginning of the lease; (3)the leasing term accounts for most time of the useful life (ordinarily accounting for 75% or higher)even if the ownership does not transfer to the lessee; (4) the present value of the minimum amount
of rent that the lessee has to pay at the first day of the lease amounts to 90% or higher of its fairvalue at the same date; or the present value of the minimum amount of rent that the lessor collectsat the first day of the lease amounts to 90% or higher of its fair value at the same date; and/or (5)the leased assets are of such a specialized nature that only the lessee can use them without majormodifications. Fixed assets rented-in under finance lease are recorded at the lower of fair valueand the present value of the minimum lease payment at the inception of the lease, and aredepreciated following the depreciation policy for self-owned fixed assets.
17. Construction in process(1)When the construction in progress has reached the intended condition for use, it will be treated
as fixed assets as per the actual construction cost. If the construction in progress has reached theintended condition for use but completion accounting is not carried out, the construction inprogress should be first treated as fixed assets as per the estimated value. After completionaccounting is carried out, the original estimated value should be adjusted as per the actual cost, butthe provision for depreciation withdrawn should not be adjusted.(2)As of the balance sheet date, where there is any indication that a construction in processexperiences impairment, the relevant impairment provision shall be provided for based on thedifference between the carrying value and the recoverable amount.18. Borrowing expenses
19. Biological assets
Nil
20. Oil-and-gas assets
Nil
21. Intangible assets(1) Valuation method, service life and impairment testa.Intangible assets include land use right, patent right and non-patent technology, which should be
initially measured at cost.b.Intangible assets with limited service life should be amortized systematically and reasonably in
their service lives as per the expected form of realization economic benefits relating to the saidintangible assets. If the form of realization cannot be reliably determined, the intangible assetsshould be amortized on a straight-line basis.
c. At the balance sheet date, when there is any indication that the intangible assets with finite
useful lives may be impaired, a provision for impairment loss is recognized on the excess of thecarrying amounts of the assets over their recoverable amounts. Intangible assets with infiniteuseful lives and intangible assets not satisfying the condition for use yet are subject to impairmenttest each year notwithstanding whether the assets are impaired.
(2)Accounting policies for expenditures for internal research and development activitiesExpenditures for internal research and development activities are expensed in the period as
incurred. The expenses of internal research and development projects during the developmentstage are recognized as intangible assets when all of the following conditions are satisfied: (1) Thecompletion of such intangible assets for use or sale is technically feasible; (2) The Company hasthe intention to use or sell the intangible assets upon completion; (3) The way in which theintangible assets bring economic benefits shows that there exists consumption market for theproducts with use of these intangible assets or the intangible assets themselves, or that they areuseful in case of internal utilization; (4) The Company has sufficient technological, financial andother resources to complete the development of the intangible assets and the ability to make themavailable for use or sale; (5) The expenses attributable to such intangible assets can be measuredreliably at the development stage.
22. Impairment of long-term assets23. Long-term deferred expenses
23. Long-term prepaid expenses
Long-term prepaid expenses are recorded with actual cost, and evenly amortized within itsbeneficiary period or stipulated period. If items of long-term prepaid expenses fail to be beneficialto the following accounting periods, residual values of such items are included in profit or loss.
24. Employee compensation(1) Accounting treatment for short-term compensation
During the accounting period when staff providing service to the Company, the actual short-termcompensation occurred shall recognized as liabilities and reckoned into current gains/losses orrelevant assets costs. The non-monetary welfare is measured by fair value.
(2) Accounting treatment for post-employment benefit(3) Accounting for retirement benefitsWhen the Company terminates the employment relationship with employees before the end of the
employment contracts or provides compensation as an offer to encourage employees to acceptvoluntary redundancy, the Company shall recognize employee compensation liabilities arisingfrom compensation for staff dismissal and included in profit or loss for the current period, whenthe Company cannot revoke unilaterally compensation for dismissal due to the cancellation oflabor relationship plans and employee redundant proposals; and the Company recognize cost andexpenses related to payment of compensation for dismissal and restructuring, whichever is earlier.
(4) Accounting for other long-term employee benefits25. Accrued liabilities26. Share-based payment(1)Types of share-based payment
Share-based payment comprises of equity-settled share-based payment and cash-settledshare-based payment.
(2)Determination of fair value of equity instruments
1)determined based on the price quoted in an active market if there exists active market for theinstrument.
2)determined by adoption of valuation technology if there exists no active market, including by
reference to the recent arm’s length market transactions between knowledgeable, willing parties,
reference to the current fair value of another instrument that is substantially the same, discountedcash flow analysis and option pricing models.
(3)Basis for determination of the best estimate of exercisable equity instrumentsTo be determined based on the subsequent information relating to latest change of exercisableemployees.
(4)Accounting relating to implementation, amendment and termination of share-based paymentschemes1)Equity-settled share-based paymentFor equity instruments that may be exercised immediately after the grant, the fair value of suchinstrument shall, on the date of the grant, be recognized in relevant costs or expenses with theincrease in the capital reserve accordingly. For equity-settled share-based payment made in returnfor the rendering of employee services that cannot be exercised until the services are fully
rendered during vesting period or specified performance targets are met, on each balance sheetdate within the vesting period, the services acquired in the current period shall, based on the bestestimate of the number of exercisable instruments, be recognized in relevant costs or expenses andthe capital reserves at the fair value of such instruments on the date of the grant.
For equity-settled share-based payment made in exchange for service from other parties, suchpayment shall be measured at the fair value of the service as of the acquisition date is the fairvalue can be measured reliably. And if the fair value of the service cannot be measured reliablywhile the fair value of the equity instrument can be measured reliably, it shall be measure at thefair value of the instrument as of the date on which the service is acquired, which shall be
recorded in relevant cost or expense with increase in owners’ equity accordingly.
2)Cash-settled share-based paymentFor the cash-settled share-based payment that may be exercised immediately after the grant inexchange for render of service by employees, the fair value of the liability incurred by theCompany shall, on the date of the grant, be recognized in relevant costs or expenses and theliabilities shall be increased accordingly. For cash-settled share-based payment made in return forthe rendering of employee services that cannot be exercised until the services are fully providedduring vesting period or specified performance targets are met, on each balance sheet date withinthe vesting period, the services acquired in the current period shall, based on the best estimate ofthe number of exercisable instruments, be recognized in relevant costs or expenses and thecorresponding liabilities at the fair value of the liability incurred by the Company.
3)Revision and termination of share-based payment schemesIf the revision results in an increase in the fair value of the equity instruments granted, theCompany shall recognize the increase in the services rendered accordingly at the increased fairvalue of the equity instruments. If the revision results in an increase in the number of equityinstruments granted, the Company will recognize the increase in the services rendered accordinglyat the fair value of the increased number of equity instruments. If the Company revises the vestingconditions on terms favorable to the employees, the Company will take into consideration of therevised vesting conditions when dealing with the vesting conditions.
If the revision results in a decrease in the fair value of the equity instruments granted, theCompany shall continue recognize the amount of services rendered accordingly at the fair value ofthe equity instruments on the date of grant without considering the decrease in the fair value of theequity instruments. If the revision results in a decrease in the number of equity instrumentsgranted, the Company will account for such decrease by reducing part of the cancellation of equityinstruments granted. If the Company revises the vesting conditions on terms not favorable to the
employees, the Company will not take into consideration of the revised vesting conditions whendealing with the vesting conditions.
If the Company cancels the equity instruments granted or settles the equity instruments grantedduring the vesting period (other than cancellation as a result of failure to satisfy the vestingconditions), such cancellation or settlement will be treated as accelerated exercisable rights andthe original amount in the remaining vesting period will be recognized immediately.
27. Other financial instruments including senior shares and perpetual bonds28. Revenue
Whether the company needs to comply with the disclosure requirements of the particular industryNo
(1) Goods salesIncome from sale of goods is recognized when the following conditions are met: (1)the Companyhas transferred the key risks and return on the ownership of the merchandize to the buyer; (2)theCompany has not retained continued management rights associated with ownership and no longerexercises effective control on the merchandize sold; (3)the amount of income can be reliablymeasured; (4)the relevant economic benefits are very likely to flow to the enterprise; (5)the costsincurred or to be incurred can be reliably measured.
Timing for recognition of revenue of the Company from products sales: revenue is recognizedupon delivery of products to and confirmed by purchaser with signature.(2)Rendering of services
When the outcome of the transaction can be estimated reliably, revenue from rendering of servicesis recognized using the percentage of completion method. When the outcome of the transactioncannot be estimated reliably at the balance sheet date, revenue is recognized based on the amountof the costs incurred and the costs incurred are charged off at the same amount when the costsincurred are expected to be recoverable; and no revenue is recognized and the costs incurred arecharged off as an expense of the period when the costs incurred are not expected to be recovered.
(3)Transfer of asset use right revenueWhen the economic benefits related to the transaction is likely to flow to the Company and the
income
amount can be reliably calculated, the Company shall recognize income arising fromtransfer of asset use right.The income of interests is determined on basis of the time and real
interest rate of the Company’s
cash funds which is utilized by other persons.The income of
royalties is determined on basis of the chargeable time and method fixed under relevantagreement or contract.
29. Government Grants(1) Determination basis and accounting for government grants related to assets(1)government grant, if granted as monetary assets, are measured at the amount received or
receivable, and measured at fair value if granted as non-monetary assets. If the fair value can notbe determined reliably, they shall be measured at nominal value.
(2)Aggregate method for government grants:
1)government grants relating to assets are recognized as deferred income, which shall be recorded
in profit or loss by installment reasonably and systematically within the useful life of the assets. Ifassets are sold, transferred, discarded as useless or damaged prior to expiration of the useful life,the remaining deferred income undistributed shall be transferred to profit or loss for the period inwhich the assets are disposed.
(3)Net method for government grants1) Government grants relating to assets are used to write off the carrying value of the relevant
assets;
(4)The Company adopts aggregated accounting method for the government grants received.
(5)As for the government grants comprising both portions relating to assets and income, separateaccounting shall be made for different portion; in case it is hard to differentiate the portions, thegrants will be recorded as related to income in general.
(6)The Company realizes government grants relating to its normal activities as other income basedon the substance of economic business, and if not related to its normal activities, realized asnon-operating income and expenditure.
(7)Subsidized loans from preferential policy obtained by the Company are classified based onwhether subsidy funds are paid to the loaning bank or directly to the Company by the competentfinancial authorities and are treated based on the following principles:
1)Where subsidy funds are paid to the loaning bank by the competent financial authorities and thebank then provides loans to the Company at a preferential policy rate, accounting shall be made bythe Company as follows:
a. Recognizes the actual borrowing amount received as the carrying value of the loan, and
calculates the relevant borrowing costs based on the principal and the preferential policy rate.b.Recognizes the fair value of the loan as the carrying value and calculates the borrowing cost
under effective interest method, and recognizes the difference between the actual amount receivedand the fair value of the loan as deferred income. Deferred income is amortized over the term ofthe loan under effective interest method and offset against the relevant borrowing costs.
2)Where subsidy funds are paid directly to the Company, the Company will offset thecorresponding subsidy against the relevant borrowing expenses.
(2)Judgment criteria and accounting treatment for government grants related to income(1)government grant, if granted as monetary assets, are measured at the amount received orreceivable, and measured at fair value if granted as non-monetary assets. If the fair value can notbe determined reliably, they shall be measured at nominal value.(2)Aggregate method for government grants:
1) If government grants relating to income are used to compensate for relevant costs or loss for the
subsequent periods, they shall be recognized as deferred income, and recorded in profit or loss forthe period in which the relevant costs are recognized. If government grants relating to income areused to compensate for the relevant costs or loss occurred, they shall be recorded in profit or lossfor the period directly.
(3)Net method for government grants
1) If government grants relating to income are used to compensate for relevant costs or loss for the
subsequent periods, they shall be recognized as deferred income, and recorded in profit or loss forthe period in which offset against the relevant costs. If government grants relating to income areused to compensate for the relevant costs or loss occurred, they shall be offset against the relevantcosts for the period directly.(4)The Company adopts aggregated accounting method for the government grants received.(5)As for the government grants comprising both portions relating to assets and income, separateaccounting shall be made for different portion; in case it is hard to differentiate the portions, thegrants will be recorded as related to income in general.(6)The Company realizes government grants relating to its normal activities as other incomebased on the substance of economic business, and if not related to its normal activities, realized asnon-operating income and expenditure.(7)Subsidized loans from preferential policy obtained by the Company are classified based onwhether subsidy funds are paid to the loaning bank or directly to the Company by the competentfinancial authorities and are treated based on the following principles:
1)Where subsidy funds are paid to the loaning bank by the competent financial authorities and thebank then provides loans to the Company at a preferential policy rate, accounting shall be made bythe Company as follows:
a. Recognizes the actual borrowing amount received as the carrying value of the loan, andcalculates the relevant borrowing costs based on the principal and the preferential policy rate.
b.Recognizes the fair value of the loan as the carrying value and calculates the borrowing costunder effective interest method, and recognizes the difference between the actual amount receivedand the fair value of the loan as deferred income. Deferred income is amortized over the term ofthe loan under effective interest method and offset against the relevant borrowing costs.2)Where subsidy funds are paid directly to the Company, the Company will offset thecorresponding subsidy against the relevant borrowing expenses.
30. Deferred tax assets / deferred income tax liabilities(1) Deferred tax assets or deferred tax liabilities are calculated and recognized based on the
difference between the carrying amount and tax base of assets and liabilities (and thedifference of the carrying amount and tax base of items not recognized as assets and liabilitiesbut with their tax base being able to be determined according to tax laws) and in accordancewith the tax rate applicable to the period during which the assets are expected to be recoveredor the liabilities are expected to be settled.(2)A deferred tax asset is recognized to the extent of the amount of the taxable income, which it is
most likely to obtain and which can be deducted from the deductible temporary difference. Atthe balance sheet date, if there is any exact evidence that it is probable that future taxable profitswill be available against which deductible temporary differences can be utilized, the deferredtax assets unrecognized in prior periods are recognized.(3)At the balance sheet date, the carrying amount of deferred tax assets is reviewed. The carrying
amount of a deferred tax asset is reduced to the extent that it is no longer probable thatsufficient taxable profits will be available to allow the benefit of the deferred tax asset to beutilized. Such reduction is subsequently reversed to the extent that it becomes probable thatsufficient taxable income will be available.(4)The income tax and deferred tax for the period are treated as income tax expenses or income
through profit or loss, excluding those arising from the following circumstances: ① businesscombination; and ② the transactions or items directly recognized in equity.
31. Lease(1)Accounting for operating lease(2)Accounting for financing lease
32. Other important accounting policy and estimation33. Major accounting policy and changes(1) Main accounting policy changes
□ Applicable √ Not applicable
(2) Changes of important accounting estimate
□ Applicable √ Not applicable
34. Other
VI. Taxes
1. Main tax category and tax rate
| Tax category | Tax calculation evidence | Tax rate |
| Value added tax | Sales of goods, taxable labor service revenue, taxable income, intangible assets income and income from property leasing | 17%, 16%, 6%, 5% |
| Tax for maintaining and building cities | Turnover tax payable | 7% |
| Business income tax | Taxable income | 25% |
| Educational surtax | Turnover tax payable | 3% |
| Local educational surtax | Turnover tax payable | 2% |
| Property tax | Turnover tax payable | 1.2% |
Disclose reasons for different taxpaying body
| Taxpaying body | Income tax rate |
2. Tax preference
Nil
3. Other
Nil
VII. Notes to Items in Consolidated Financial Statements
1. Monetary fund
In RMB
| Item | Ending balance | Opening balance |
| Cash on hand | 55,753.64 | 100,034.87 |
| Cash in bank | 15,758,551.35 | 18,837,402.11 |
| Other monetary fund | 9,048,217.26 | |
| Total | 15,814,304.99 | 27,985,654.24 |
Other explanation
There were no restrited monetary fund at end of the period. No deposited overseas and of potentialrecovery risks at period-end
2. Financial assets measured by fair value and reckoned into current gains/losses with itsvariation
In RMB
| Item | Ending balance | Opening balance |
Other explanationNil
3. Derivative financial assets
□ Applicable √ Not applicable
4. Note receivables(1) Classification of notes receivable
In RMB
| Item | Ending balance | Opening balance |
| Bank acceptance bill | 1,500,000.00 | |
| Total | 1,500,000.00 |
(2) Pledge at period-end
In RMB
| Item | Amount pledge at period-end |
| Bank acceptance bill | 0.00 |
| Trade acceptance | 0.00 |
| Total | 0.00 |
(3) Notes endorsement or discount and undue on balance sheet date
In RMB
| Item | Amount derecognition at period-end | Amount not derecognition at period-end |
| Bank acceptance bill | 48,320,333.38 | 0.00 |
| Trade acceptance | 0.00 | 0.00 |
| Total | 48,320,333.38 | 0.00 |
(4) Notes transfer to account receivable due for failure implementation by drawer atperiod-end
In RMB
| Item | Amount transfer to account receivable at period-end |
| Trade acceptance | 0.00 |
| Total | 0.00 |
Other explanationThere was no notes that converted to receivables due to the inability of the drawer to performance the contrat
5. Accounts receivable(1) Accounts receivable by category
In RMB
| Category | Ending balance | Opening balance | ||||||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
| Amount | Ratio | Amount | Accrual ratio | Amount | Ratio | Amount | Accrual ratio | |||
| Receivables with bad debt provision accrual by credit portfolio | 36,199,337.45 | 96.59% | 1,247,395.79 | 3.45% | 34,951,941.66 | 30,247,962.05 | 95.95% | 1,240,186.84 | 4.10% | 29,007,775.21 |
| Accounts with single | 1,278,28 | 3.41% | 1,278,28 | 100.00% | 1,278,2 | 4.05% | 1,278,283 | 100.00% | ||
| significant amount and bad debts provision accrued individually | 3.50 | 3.50 | 83.50 | .50 | ||||||
| Total | 37,477,620.95 | 100.00% | 2,525,679.29 | 6.74% | 34,951,941.66 | 31,526,245.55 | 100.00% | 2,518,470.34 | 7.99% | 29,007,775.21 |
Receivable with single significant amount and withdrawal bad debt provision separately at end of period:
□ Applicable √ Not applicable
In combination, accounts receivable whose bad debts provision was accrued by age analysis:
√ Applicable □ Not applicable
In RMB
| Age | Ending balance | ||
| Account receivable | Bad debt provision | Accrual ratio | |
| Within one year | |||
| Within 1 year | 34,155,123.80 | 102,465.37 | 0.30% |
| Subtotal within one year | 34,155,123.80 | 102,465.37 | 0.30% |
| 1-2 years | 901,989.20 | 2,705.97 | 0.30% |
| 2-3 years | 0.30% | ||
| Over 3 years | 1,142,224.45 | 1,142,224.45 | 100.00% |
| Total | 36,199,337.45 | 1,247,395.79 | 3.45% |
Explanation on combination determines:
According to the business scale, business nature, and customers’ settlement, etc., the account receivable with single
significant amount is determined to be RMB 5 million. The account receivable with single significant amount has
no depreciation reserve, and the reserve for bad debt provision is withdrawn with age analysis method.
In combination, withdrawal proportion of bad debt provision based on balance proportion for account receivable:
□ Applicable √ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods for account receivable:
Nil
(2) Bad debt provision accrual collected or switch back
Bad debt provision accrual was 9,231.99 Yuan; the amount collected or switches back amounting to 2,023.04 YuanImportant bad debt provision collected or switch back:
In RMB
| Company | Collected or switch back amount | Collection way |
| Total | 0.00 | -- |
(3) Account receivable actual charge off in the Period
In RMB
| Item | Amount written off |
Written-off for the major receivable:
In RMB
| Company | Nature | Amount written off | Reason for write-off | Verification procedures | Arising from related transaction (Y/N) |
| Total | -- | 0.00 | -- | -- | -- |
Explanation for write-off of receivables:
Nil
(4) Top 5 receivables at ending balance by arrears party
| Item | Relationship with the company | Amount | Account age | Bad debt provision | Ratio in total receivables (%) | Nature |
| Jinan Yuxintai Sales Co., Ltd. | Unrelated party | 9,043,566.55 | Within 1 year | 27,130.70 | 24.13 | Payment for goods |
| Shenzhen WTR New Energy Technology Co., Ltd. | Unrelated party | 7,923,335.39 | Within 1 year | 23,770.00 | 21.14 | Payment for goods |
| Shenzhen BoYiN Technology Co., Ltd. | Unrelated party | 5,217,743.51 | Within 1 year | 15,653.23 | 13.92 | Payment for goods |
| Shenzhen Jiahaosong Technology Co., Ltd. | Unrelated party | 3,918,438.81 | Within 1 year | 11,755.32 | 10.46 | Payment for goods |
| Fu Qi | Unrelated party | 2,933,729.40 | Within 1 year | 8,801.19 | 7.83 | Payment for goods |
| Total | 29,036,813.66 | 87,110.44 | 77.48 |
(5) De-recognition for financial assets transfer
Nil
(6) Receivable transferred and the assets and liability resulted for continue to engagement
Nil
Other explanation
At end of the period, there was no account receivable from shareholder unit and other relatedparties that holds 5% (included) voting rights of the Company among Account Receivables
6. Advance payment(1) Listed by account age
In RMB
| Age | Ending balance | Opening balance | ||
| Amount | Ratio | Amount | Ratio | |
| Within 1 year | 6,076,785.42 | 100.00% | 2,482,276.54 | 100.00% |
| Total | 6,076,785.42 | -- | 2,482,276.54 | -- |
Explanation on un-settlement in time for advance payment with over one year account age and major amounts:
Nil
(2) Top 5 advance payment at ending balance by prepayment object
| Item | Relationship with the company | Amount | Account age | Nature | Ratio in total advance e payment (%) |
| Zhaoqing Kaisite Battery Material Co., Ltd. | Unrelated party | 5,064,187.12 | Within 1 year | Prepayments for materials | 83.34 |
| Sichuan Xingsheng Lithium Industry Co., Ltd. | Unrelated party | 660,000.00 | Within 1 year | Prepayments for materials | 10.86 |
| Guangshui Qilin New Mateiral Co., Ltd. | Unrelated party | 290,598.30 | Within 1 year | Prepayments for materials | 4.78 |
| Xinjiang Tebian Electrical Engineering Project Management Co., Ltd. | Unrelated party | 62,000.00 | Within 1 year | Project bid | 1.02 |
| Total | 6,076,785.42 | 100.00 |
Other explanation
At end of the period, there was no advance payment from shareholder unit and other relatedparties that holds 5% (included) voting rights of the Company among Advance Payment
7. Interest receivable(1) interest receivable
In RMB
| Item | Ending balance | Opening balance |
(2) Important overdue interest
| Borrower | Ending balance | Overdue time Overdue time | Overdue reason | Impairment (Y/N) and judgment basis |
| Total | 0.00 | -- | -- | -- |
Other explanationNil
8. Dividend receivables(1) Dividend receivables
In RMB
| Item (or the invested entity) | Ending balance | Opening balance |
(2) Major dividend receivables with over one year age
In RMB
| Item or the invested entity) | Ending balance | Age | Reasons | Impairment (Y/N) and judgment basis |
| Total | 0.00 | -- | -- | -- |
Other explanationNil
9. Other accounts receivable(1) Other accounts receivable by category
In RMB
| Category | Ending balance | Opening balance | ||||||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
| Amount | Ratio | Amount | Accrual ratio | Amount | Ratio | Amount | Accrual ratio | |||
| Other receivables | 1,077,73 | 100.00% | 470,894. | 43.69% | 606,839.1 | 1,130,5 | 100.00% | 470,884.5 | 41.65% | 659,706.81 |
| with bad debt provision accrual by credit portfolio | 4.01 | 84 | 7 | 91.40 | 9 | |||||
| Total | 1,077,734.01 | 100.00% | 470,894.84 | 43.69% | 606,839.17 | 1,130,591.40 | 100.00% | 470,884.59 | 41.65% | 659,706.81 |
Other receivable with single significant amount and withdrawal bad debt provision separately at end of period:
□ Applicable √ Not applicable
In combination, other accounts receivable whose bad debts provision was accrued by age analysis
√ Applicable □ Not applicable
In RMB
| Age | Ending balance | ||
| Other accounts receivable | Bad debt provision | Accrual ratio | |
| Within 1 year | |||
| Within 1 year | 251,572.17 | 754.72 | 0.30% |
| Subtotal within one year | 251,572.17 | 754.72 | 0.30% |
| 1-2 years | 148,388.00 | 445.16 | 0.30% |
| 2-3 years | 208,705.00 | 626.12 | 0.30% |
| Over 3 years | 469,068.84 | 469,068.84 | 100.00% |
| Total | 1,077,734.01 | 470,894.84 | 43.69% |
Explanations on combination determine:
Other receivable with single significant amount refers to the amount with over 5 million Yuan
In combination, withdrawal proportion of bad debt provision based on balance proportion for other accountreceivable:
□ Applicable √ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods for other account receivable:
□ Applicable √ Not applicable
(2) Bad debt provision accrual collected or switch back
Bad debt provision accrual was 15.00 Yuan; the amount collected or switches back amounting to 4.75Yuan
Important bad debt provision collected or switch back:
In RMB
| Company | Amount reversal or collected | Collection way |
| Total | 0.00 | -- |
Nil
(3) Other receivables actually written-off during the reporting period
In RMB
| Item | Amount written off |
Written-off for the major other receivable:
In RMB
| Company | Nature of other receivables | Amount written off | Reason for write-off | Verification procedures | Arising from related transaction (Y/N) |
| Total | -- | 0.00 | -- | -- | -- |
Explanation for write-off of other receivables:
Nil
(4) Other receivables by nature
In RMB
| Nature | Ending book balance | Opening book balance |
| Margin or deposit | 496,750.00 | 628,997.24 |
| Equipment money | 311,400.00 | 311,400.00 |
| Staff personal loans | 113,701.00 | 49,098.50 |
| Other | 155,883.01 | 141,095.66 |
| Total | 1,077,734.01 | 1,130,591.40 |
(5) Top 5 other receivables at ending balance by arrears party
In RMB
| Company | Nature | Ending balance | Age | Ratio in total ending balance of other receivables | Ending balance of bad bet provision |
| Shenzhen Luwei Mechatronic Equipment Co., Ltd. | Equipment money | 300,000.00 | Over 5 years | 27.84% | 300,000.00 |
| Shenzhen Anjinheng Industrial Co., Ltd. | Margin or deposit | 150,900.00 | Within 3 years | 14.00% | 452.70 |
| Shenzhen Material Group Co., Ltd. | Margin or deposit | 135,723.00 | Within 3 years | 12.59% | 407.17 |
| Alipay (China) Network Technology Co., Ltd. | Margin or deposit | 110,000.00 | Within 2 years | 10.21% | 330.00 |
| Zhao Zhuqing | Margin or deposit | 36,000.00 | Over 3 years | 3.34% | 36,000.00 |
| Total | -- | 732,623.00 | -- | 67.98% | 337,189.87 |
(6) Account receivable with government grants involved
In RMB
| Company | Item | Ending balance | Ending age | Time, amount and basis of amount collection estimated |
| Total | -- | 0.00 | -- | -- |
Nil
(7) Other account receivable derecognition due to financial assets transfer
Nil
(8) Assets and liability resulted by other account receivable transfer and continuousinvolvement
NilOther explanation
At end of the period, there was no other account receivable from shareholder unit and other relatedparties that holds 5% (included) voting rights of the Company among Other Account Receivables
10. Inventory(1) Inventory classification
In RMB
| Item | Ending balance | Opening balance | ||||
| Book balance | Depreciation reserve | Book value | Book balance | Depreciation reserve | Book value | |
| Raw materials | 442,413.52 | 27,465.37 | 414,948.15 | 566,193.56 | 27,465.37 | 538,728.19 |
| Finished goods | 4,399,877.37 | 4,450.20 | 4,395,427.17 | 2,233,386.81 | 4,450.20 | 2,228,936.61 |
| Goods shipped in transit | 9,509.83 | 9,509.83 | ||||
| Total | 4,842,290.89 | 31,915.57 | 4,810,375.32 | 2,809,090.20 | 31,915.57 | 2,777,174.63 |
Does the Company comply with the disclosure requirement of “Information Disclosure Guidelines of ShenzhenStock Exchange No.4 – Listed Companies Engaged in Seed Industry and Planting Business” or not
No
(2) Inventory depreciation reserve
In RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Ending balance | ||
| Accrual | Other | Switch back or write-off | Other | |||
| Raw materials | 27,465.37 | 27,465.37 | ||||
| Finished goods | 4,450.20 | 4,450.20 | ||||
| Total | 31,915.57 | 0.00 | 0.00 | 0.00 | 0.00 | 31,915.57 |
Nil
(3) Explanation on capitalization of borrowing costs at ending balance of inventory
Nil
(4) Assets that completed without settlement from construction contract
In RMB
| Item | Amount |
Other explanationNil
11. Assets hold for sold
In RMB
| Item | Ending book value | Fair value | Expected disposal expenses | Expected disposal time |
| Total | 0.00 | 0.00 | 0.00 | -- |
Other explanationNil
12. Non-current assets due within one year
In RMB
| Item | Ending balance | Opening balance |
Other explanationNil
13. Other current assets
In RMB
| Item | Ending balance | Opening balance |
| Prepaid intermediary fee | 1,792,452.81 | 1,792,452.81 |
| Prepaid tax | 12,974.36 | |
| Total | 1,792,452.81 | 1,805,427.17 |
Other explanationNil
14. Financial assets available for sale(1) Financial assets available for sale
In RMB
| Item | Ending balance | Opening balance | ||||
| Book balance | Depreciation reserves | Book value | Book balance | Depreciation reserves | Book value | |
| Total | 0.00 | 0.00 | 0.00 | 0.00 | ||
(2) Financial assets available for sale measured by fair value at period-end
In RMB
| Type | Equity instrument available for sale | Debt instrument available for sale | Total | |
| Cost /liability of equity instrument/ amortization cost of debt instrument | 0.00 | |||
| Fair value | 0.00 | |||
| Amount of fair value changes that accumulatively reckoned in other comprehensive gains | 0.00 | |||
| Amount with impairment accrual | 0.00 |
(3) Financial assets available for sale measured by cost at period-end
In RMB
| The invested entity | Book balance | Depreciation reserves | Ratio of share-holding in invested entity | Cash dividend | ||||||
| Period-beginning | Increased | Decreased | Period-end | Period-beginning | Increased | Decreased | Period-end | |||
| Total | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -- | 0.00 |
(4) Changes of impairment in Period
In RMB
| Type | Equity instrument available for sale | Debt instrument available for sale | Total | |
| Balance of impairment accrual at period-begin | 0.00 | |||
| Current accrual | 0.00 | |||
| Including: transfer-in from other comprehensive income | 0.00 | |||
| Current decrease | 0.00 | |||
| Including: switch back due to fair value rebound at period-end | 0.00 | |||
| Balance of impairment accrual at period-end | 0.00 |
(5) Fair value of equity instrument available for sale sharply declined orother-than-temporary declined at period-end without depreciation reserves accrual
In RMB
| Item | Investment cost | Ending fair value | Fair value declined relative to cost | Time of drops persistently (month) | Amount with impairment accrual | Reasons for un-accrual |
| Total | 0.00 | 0.00 | -- | -- | 0.00 | -- |
Other explanationNil
15. Held-to-maturity investment(1) Held-to-maturity investment
In RMB
| Item | Ending balance | Opening balance | ||||
| Book balance | Depreciation reserves | Book value | Book balance | Depreciation reserves | Book value | |
| Total | 0.00 | 0.00 | 0.00 | 0.00 | ||
(2) Important held-to-maturity investment at period-end
In RMB
| Bond | Face value | Coupon value | Actual rate | Maturity date |
| Total | 0.00 | -- | -- | -- |
(3) Held-to-maturity investment reclassify in the Period
NilOther explanationNil
16. Long-term account receivable(1) Long-term account receivable
In RMB
| Item | Ending balance | Opening balance | Discount rate section | ||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | ||
| Total | 0.00 | 0.00 | 0.00 | 0.00 | -- | ||
(2) Long-term account receivable derecognition due to transfer of financial assets
Nil
(3) Assets and liability resulted by long-term account receivable transfer and continuousinvolvement
NilOther explanationNil
17. Long-term equity investment
In RMB
| The invested entity | Opening balance | v | Ending balance | Ending balance of impairment provision | |||||||
| Additional investment | Capital reduction | Investment gains recognized under equity | Other comprehensive income adjustment | Other equity change | Cash dividend or profit announced to issued | Impairment accrual | Other | ||||
| I. Joint venture | |||||||||||
| Subtotal | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| II. Associated enterprise | |||||||||||
| Subtotal | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Other explanationNil
18. Investment real estate(1) Investment real estate measured at cost
□ Applicable √ Not applicable
(2) Investment real estate measured at fair value
□ Applicable √ Not applicable
(3) Certificate of title un-completed
In RMB
| Item | Book value | Reasons for un-completed |
Other explanationNil
19. Fixed assets(1) Fixed assets
In RMB
| Item | Housing buildings | Machinery equipment | Means of transportation | Electronic equipment and other | Total |
| I. Original book value: |
| 1.Opening balance | 2,959,824.00 | 416,629.06 | 958,593.21 | 684,394.50 | 5,019,440.77 |
| 2.Increase in the current period | |||||
| (1) Purchase | |||||
| (2) construction in process transfer-in | |||||
| (3) the increase in business combination | |||||
| 3.Decrease in the current period | |||||
| (1) Disposal or scrap | |||||
| 4.Ending balance | 2,959,824.00 | 416,629.06 | 958,593.21 | 684,394.50 | 5,019,440.77 |
| II. accumulated depreciation | |||||
| 1.Opening balance | 199,788.12 | 109,246.12 | 269,780.13 | 499,508.43 | 1,078,322.80 |
| 2.Increase in the current period | 66,596.04 | 18,748.32 | 86,273.40 | 12,928.99 | 184,546.75 |
| (1) provision | 66,596.04 | 18,748.32 | 86,273.40 | 12,928.99 | 184,546.75 |
| 3.Decrease in the current period | |||||
| (1) Disposal or scrap | |||||
| 4.Ending balance | 266,384.16 | 127,994.44 | 356,053.53 | 512,437.42 | 1,262,869.55 |
| III. impairment of preparation | |||||
| 1.Opening balance | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 2.Increase in the current period | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| (1) provision | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.Decrease in the current period | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| (1) Disposal or scrap | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 4.Ending balance | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| IV. book value | |||||
| 1.Ending book value | 2,693,439.84 | 288,634.62 | 602,539.68 | 171,957.08 | 3,756,571.22 |
| 2. Opening book value | 2,760,035.88 | 307,382.94 | 688,813.08 | 184,886.07 | 3,941,117.97 |
(2) Fixed assets temporary idle
In RMB
| Item | Original book value | Accumulated depreciation | Depreciation reserves | Book value | Note |
(3) Fixed assets leased through operating lease
In RMB
| Item | Original book value | Accumulated depreciation | Depreciation reserves | Book value |
(4) Fixed assets leased through operating lease
In RMB
| Item | Ending book value |
(5) Certificate of title un-completed
In RMB
| Item | Book value | Reasons |
| Six properties in Lianxin Garden | 2,693,439.84 | Other explanation |
Other explanationThe six properties of Lianxin Garden have original value of 2,959,824.00 Yuan. The property purchasing refers tothe indemnificatory housing for enterprise talent buying from Shenzhen Housing and Construction Bureau ofLuohu District. According to the agreement, the enterprise shall not carrying any kind of property trading with anyunits or individuals except the government, and the company has no property certification on the above mentioned
properties.
20. Construction in progress(1) Construction in progress
In RMB
| Item | Ending balance | Opening balance | ||||
| Book balance | Depreciation reserves | Book value | Book balance | Depreciation reserves | Book value | |
| Total | 0.00 | 0.00 | 0.00 | 0.00 | ||
(2) Changes in significant construction in progress
In RMB
| Item | Budget | Opening balance | Increase in the current period | Fixed assets transfer-in in the Period | Other decreased in the Period | Ending balance | Proportion of project investment in budget | Progress | Accumulated amount of interest capitalization | including: interest capitalized amount of the year | Interest capitalization rate of the year | Source of funds |
| Total | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -- | -- | 0.00 | 0.00 | 0.00% | -- |
(3) Depreciation reserves accrual
In RMB
| Item | Accrual Amount | Reasons |
| Total | 0.00 | -- |
Other explanationNil
21. Engineering materials
In RMB
| Item | Ending balance | Opening balance |
Other explanationNil
22. Disposal of fixed assets
In RMB
| Item | Ending balance | Opening balance |
Other explanationNil
23. Productive biological assets(1) Productive biological assets measured by cost
□ Applicable √ Not applicable
(2) Productive biological assets measured by fair value
□ Applicable √ Not applicable
24. Oil-and-gas assets
□ Applicable √ Not applicable
25. Intangible assets(1) Intangible assets
In RMB
| Item | Land use right | Patent | Non-patent technology | Trademark | Total |
| I. original book value: | |||||
| 1.Opening balance | 5,271,000.00 | 5,271,000.00 | |||
| 2.Increase in the current period | |||||
| (1) Purchase | |||||
| (2) internal R & D | |||||
| (3) the increase in business combination | |||||
| 3.Decrease in the current period | |||||
| (1) Disposal | |||||
| 4.Ending balance | 5,271,000.00 | 5,271,000.00 | |||
| II. accumulated depreciation | |||||
| 1.Opening balance | 3,012,000.00 | 3,012,000.00 | |||
| 2.Increase in the current period | 376,500.00 | 376,500.00 | |||
| (1) provision | 376,500.00 | 376,500.00 | |||
| 3.Decrease in the current period | |||||
| (1) Disposal | |||||
| 4.Ending balance | 3,388,500.00 | 3,388,500.00 | |||
| III. impairment of preparation | |||||
| 1.Opening balance | |||||
| 2.Increase in the current period | |||||
| (1) provision | |||||
| 3.Decrease in the current period | |||||
| (1) Disposal | |||||
| 4.Ending balance | |||||
| IV. book value | |||||
| 1.Ending book value | 1,882,500.00 | 1,882,500.00 | |||
| 2. Opening book value | 2,259,000.00 | 2,259,000.00 |
Ratio of intangible assets resulted from internal R&D in balance of intangible assets at period-end
(2) Land use right without certificate of title completed
In RMB
| Item | Book value | Reasons |
Other explanationNil
26. Development expense
In RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Ending balance | ||||
| Total | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||
Other explanationNil
27. Goodwill(1) Original book value of goodwill
In RMB
| The invested entity or matters of goodwill | Opening balance | Increase during the year | Decreased during the year | Ending balance | ||
| Total | 0.00 | 0.00 | 0.00 | 0.00 | ||
(2) Depreciation reserves of goodwill
In RMB
| The invested entity or matters of goodwill | Opening balance | Increase during the year | Decreased during the year | Ending balance | ||
| Total | 0.00 | 0.00 | 0.00 | 0.00 | ||
Process of impairment testing, parameter and recognition method for impairment losses:
NilOther explanationNil
28. Long-term unamortized expenses
In RMB
| Item | Opening balance | Increase in the current period | Amortized in the Period | Other decrease | Ending balance |
| Total | 0.00 | 0.00 | 0.00 |
Other explanationNil
29. Deferred income tax assets and deferred income tax liabilities(1) Deferred income tax assets un-offset
In RMB
| Item | Ending balance | Opening balance | ||
| Deductible temporary difference | Deferred income tax assets | Deductible temporary difference | Deferred income tax assets | |
| Assets impairment | 2,967,314.86 | 741,828.71 | 2,967,314.86 | 741,828.71 |
| Total | 2,967,314.86 | 741,828.71 | 2,967,314.86 | 741,828.71 |
(2) Deferred income tax liabilities un-offset
In RMB
| Item | Ending balance | Opening balance | ||
| Taxable temporary differences | Deferred income tax liabilities | Taxable temporary differences | Deferred income tax liabilities | |
| Total | 0.00 | 0.00 | 0.00 | 0.00 |
(3) Deferred income tax assets and deferred income tax liabilities listed after off-set
In RMB
| Item | Trade-off between the deferred income tax assets and liabilities | Ending balance of deferred income tax assets or liabilities after off-set | Trade-off between the deferred income tax assets and liabilities at period-begin | Opening balance of deferred income tax assets or liabilities after off-set |
| Deferred income tax assets | 0.00 | 741,828.71 | 0.00 | 741,828.71 |
| Deferred income tax liability | 0.00 | 0.00 |
(4) Details of unrecognized deferred income tax assets
In RMB
| Item | Ending balance | Opening balance |
| Total | 0.00 | 0.00 |
(5) Deductible losses of un-recognized deferred income tax assets expired on the followedyear
In RMB
| Year | Ending amount | Opening amount | Note |
| Total | 0.00 | 0.00 | -- |
Other explanationNil
30. Other non-current assets
In RMB
| Item | Ending balance | Opening balance |
| Advance payment for house | 400,000.00 | 400,000.00 |
| Total | 400,000.00 | 400,000.00 |
Other explanation
Ended as 30 June 2018, the four houses for enterprise talent, located in Yinhu Lanshan, have notyet delivered by Shenzhen Housing and Construction Bureau of Luohu District
31. Short-term loans
(1)Types of short-term loans
In RMB
| Item | Ending balance | Opening balance |
Explanation on short-term loans category:
Nil
(2) Overdue outstanding short-term loans
Total 0.00 Yuan overdue outstanding short-term loans at period-end, including the followed significant amount:
In RMB
| Unit | Ending balance | Lending rate | Overdue time | Overdue rate |
| Total | 0.00 | -- | -- | -- |
Other explanationNil
32. Financial liability measured by fair value and with its variation reckoned into currentgains/losses
In RMB
| Item | Ending balance | Opening balance |
Other explanationNil
33. Derivative financial liabilities
□ Applicable √ Not applicable
34. Notes payable
In RMB
| Type | Ending balance | Opening balance |
| Trade acceptance | 8,480,000.00 | |
| Total | 8,480,000.00 |
Notes expired at year-end without paid was 0.00 Yuan
35. Account payable(1) Account payable
In RMB
| Item | Ending balance | Opening balance |
| Within one year (one year included) | 10,599,255.82 | 3,638,705.30 |
| 1-2 year (2 years included) | 76,401.23 | 137,423.41 |
| 2-3 years (3years included) | 3,084.95 | 3,084.95 |
| 4-5 years (5years included) | ||
| Over 5 years | 148,983.61 | 148,983.61 |
| Total | 10,827,725.61 | 3,928,197.27 |
(2) Account payable with over one year book age
In RMB
| Item | Ending balance | Reasons of un-paid or carry-over |
| Total | 0.00 | -- |
Other explanation
Top 5 payables at Period-end
| Item | Relationship with the company | Amount | Account age | Ratio in total payables in advance (%) | Nature |
| Baodao Car Industry Group Co., Ltd | Unrelated party | 5,790,643.76 | Within 1 year | 53.48 | Payment for goods |
| Jinda Intillence Technology Co., Ltd. | Unrelated party | 2,660,755.70 | Within 1 year | 24.57 | Payment for goods |
| Tianjin Luying Car Industry Co., Ltd. | Unrelated party | 1,196,170.33 | Within 1 year | 11.05 | Payment for goods |
| Tianjin Jianya Electronic Tech.Co., Ltd. | Unrelated party | 359,431.18 | Within 1 year | 3.32 | Payment for goods |
| Tianjin Tianrui Weisheng Sports Equipment Co., Ltd. | Unrelated party | 244,729.18 | Within 1 year | 2.26 | Payment for goods |
| Total | 10,251,730.15 | 94.68 |
36. Account received in advance(1) Account received in advance
In RMB
| Item | Ending balance | Opening balance |
| Within one year (one year included) | 1,661,866.45 | 1,211,804.44 |
| 1-2 years (2 years included) | 19,777.88 | 19,777.88 |
| 2-3 years (3 years included) | 36,897.00 | 36,897.00 |
| Total | 1,718,541.33 | 1,268,479.32 |
(2) Account received in advance with over one year book age
In RMB
| Item | Ending balance | Reasons of un-paid or carry-over |
| Total | 0.00 | -- |
(3) Projects that settle without completed from construction contract at period-end
In RMB
| Item | Amount |
Other explanationNil
37. Wages payable(1) Wages payable
In RMB
| Item | Opening balance | Increase during the year | Decrease during the year | Ending balance |
| I. Short-term compensation | 706,703.40 | 3,033,554.78 | 2,880,549.54 | 859,708.64 |
| II. Post-employment benefit – defined contribution plan | 160,367.77 | 160,367.77 | ||
| Total | 706,703.40 | 3,193,922.55 | 3,040,917.31 | 859,708.64 |
(2) Short-term compensation
In RMB
| Item | Opening balance | Increase during the year | Decrease during the year | Ending balance |
| 1. Wages , bonuses, allowances and subsidies | 699,994.68 | 2,524,848.21 | 2,372,089.72 | 852,753.17 |
| 2. Welfare for workers and staff | 141,100.00 | 141,100.00 | ||
| 3. Social insurance | 137,430.26 | 137,430.26 | ||
| Including: Medical insurance | 124,611.52 | 124,611.52 | ||
| Work injury insurance | 5,932.78 | 5,932.78 | ||
| Maternity insurance | 6,885.96 | 6,885.96 | ||
| 4. Housing accumulation fund | 189,464.40 | 189,464.40 | ||
| 5. Labor union expenditure and personnel education | 6,708.72 | 40,711.91 | 40,465.16 | 6,955.47 |
| expense | ||||
| Total | 706,703.40 | 3,033,554.78 | 2,880,549.54 | 859,708.64 |
(3) Defined contribution plans
In RMB
| Item | Opening balance | Increase during the year | Decrease during the year | Ending balance |
| 1. Basic endowment insurance | 154,517.09 | 154,517.09 | ||
| 2. Unemployment insurance | 5,850.68 | 5,850.68 | ||
| Total | 160,367.77 | 160,367.77 |
Other explanation
No defaulted wages payable at end of the period38. Tax payable
In RMB
| Item | Ending balance | Opening balance |
| Value-added tax | 2,345,559.33 | 3,391,621.62 |
| Enterprise income tax | 129,074.09 | 339,193.85 |
| Individual income tax | 139,291.45 | 23,164.05 |
| Urban maintenance and construction tax | 7,238.49 | 7,615.81 |
| House property tax | 90,141.20 | 45,070.60 |
| Educational surtax & local educational surcharge | 351.36 | 620.94 |
| Land holding tax | 7,959.38 | |
| Stamp tax | 13,741.20 | |
| Total | 2,733,356.50 | 3,807,286.87 |
Other explanationNil
39. Interest payable
In RMB
| Item | Ending balance | Opening balance |
Interest overdue without paid:
In RMB
| Borrower | Amount overdue | Reasons |
| Total | 0.00 | -- |
Other explanationNil
40. Dividends payable
In RMB
| Item | Ending balance | Opening balance |
Other explanation, including dividends payable with over one year age and disclosure un-payment reasons:
Nil
41. Other payable(1) Classification of other payable according to nature of account
In RMB
| Item | Ending balance | Opening balance |
| Custodian and common benefit debts | 18,639,499.20 | 18,919,942.85 |
| Current money | 6,500,000.00 | 6,500,000.00 |
| Warranty and guarantee money | 9,773,515.24 | 9,615,020.00 |
| Other payable service charge (intermediary services included) | 305,554.80 | 707,252.91 |
| Other | 122,811.05 | 766,108.14 |
| Total | 35,341,380.29 | 36,508,323.90 |
(2) Significant other payable with over one year age
In RMB
| Item | Ending balance | Reasons of un-paid or carry-over |
| Custodian and common benefit debts | 9,194,762.20 | |
| Shenzhen Guosheng Energy Investment Development Co., ltd. | 6,500,000.00 | Interest-free loans |
| Total | 15,694,762.20 | -- |
Other explanationNil
42. Liabilities hold for sale
In RMB
| Item | Ending balance | Opening balance |
Other explanationNil
43. Non-current liability due within one year
In RMB
| Item | Ending balance | Opening balance |
Other explanationNil
44. Other current liability
In RMB
| Item | Ending balance | Opening balance |
Changes of short-term bond payable:
In RMB
| Bond | Face value | Release date | Bond period | Issuing amount | Opening balance | Issued in the Period | Accrual interest by face value | Premium/discount amortization | Paid in the Period | Ending balance | |
| Total | -- | -- | -- | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Other explanationNil
45. Long-term loans(1) Classification of long-term loans
In RMB
| Item | Ending balance | Opening balance |
Explanation:
NilOther explanation, including interest rate section:
Nil
46. Bonds payable(1) Bonds payable
In RMB
| Item | Ending balance | Opening balance |
(2) Changes of bonds payable (not including the other financial instrument of preferredstock and perpetual capital securities that classify as financial liability)
In RMB
| Total | -- | -- | -- | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
(3) Convertible conditions and time for shares transfer for the convertible bonds
Nil
(4) Other financial instruments classify as financial liability
Basic information of the outstanding preferred stock and perpetual capital securities at period-endNilChanges of outstanding preferred stock and perpetual capital securities at period-end
In RMB
| Outstanding financial instrument | Period-begin | Increase during the year | Decrease during the year | Period-end | ||||
| Amount | Book value | Amount | Book value | Amount | Book value | Amount | Book value | |
| Total | 0 | 0.00 | 0 | 0.00 | 0 | 0.00 | 0 | 0.00 |
Basis for financial liability classification for other financial instrumentNilOther explanationNil
47. Long-term account payable(1) Listed by nature
In RMB
| Item | Ending balance | Opening balance |
Other explanationNil
48. Long-term employee payable(1) Long-term employee payable
In RMB
| Item | Ending balance | Opening balance |
(2) Changes of defined benefit plans
Present value of the defined benefit plans:
In RMB
| Item | Current amount | Last amount |
Scheme assets:
In RMB
| Item | Current amount | Last amount |
Net liability (assts) of the defined benefit plans
In RMB
| Item | Current amount | Last amount |
Content of defined benefit plans and relevant risks, impact on future cash flow of the Company as well as timesand uncertainty:
NilMajor actuarial assumption and sensitivity analysis:
NilOther explanationNil
49. Special payable
In RMB
| Item | Opening balance | Increase during the year | Decrease during the year | Ending balance | Causes |
| Total | 0.00 | 0.00 | -- |
Other explanationNil
50. Accrued liability
In RMB
| Item | Ending balance | Opening balance | Causes |
Other explanation, including relevant important assumptions and estimation:
Nil
51. Deferred income
In RMB
| Item | Opening balance | Increase during the year | Decrease during the year | Ending balance | Causes |
| Total | 0.00 | 0.00 | -- |
Item with government grants involved:
In RMB
| Item | Opening balance | New grants in the Period | Amount reckoned in non-operation revenue | Amount reckoned in other income | Cost reduction in the period | Other changes | Ending balance | Assets-related/income related |
| Total | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -- |
Other explanationNil
52. Other non-current liability
In RMB
| Item | Ending balance | Opening balance |
Other explanationNil
53. Share capital
In RMB
| Opening balance | Change during the year(+,-) | Ending balance | |||||
| New shares issued | Bonus share | Shares transferred from capital reserve | Other | Subtotal | |||
| Total shares | 551,347,947.00 | 0.00 | 551,347,947.00 | ||||
Other explanationNo changes in the period
54. Other equity instrument(1) Basic information of the outstanding preferred stock and perpetual capital securities at
period-end
Nil
(2) Changes of outstanding preferred stock and perpetual capital securities at period-end
In RMB
| Outstanding financial instrument | Period-begin | Increase during the year | Decrease during the year | Period-end | ||||
| Amount | Book value | Amount | Book value | Amount | Book value | Amount | Book value | |
| Total | 0 | 0 | 0.00 | 0 | 0.00 | 0 | ||
Changes of other equity instrument, change reasons and relevant accounting treatment basis:
NilOther explanationNil
55. Capital reserve
In RMB
| Item | Opening balance | Increase during the year | Decrease during the year | Ending balance |
| Other capital reserve | 627,834,297.85 | 627,834,297.85 | ||
| Total | 627,834,297.85 | 627,834,297.85 |
Other explanation, including changes and reasons for changes:
Among the other capital reserves, 135,840,297.18 Yuan refers to the payment for creditor fromshares assignment by whole shareholders; majority shareholder Guosheng Energy donated5,390,399.74 Yuan.
56. Treasury stock
In RMB
| Item | Opening balance | Increase during the year | Decrease during the year | Ending balance |
| Total | 0.00 | 0.00 |
Other explanation, including changes and reasons for changes:
Nil
57. Other comprehensive income
In RMB
| Item | Opening balance | Current amount | Ending balance | ||||
| Account before income tax in the year | Less: written in other comprehensive income in previous period and carried forward to gains | Less : income tax expense | Belong to parent company after tax | Belong to minority shareholders after tax | |||
| and losses in current period | |||||||
| Total other comprehensive income | 0.00 | 0.00 | 0.00 |
Other explanation, including the active part of the hedging gains/losses of cash flow transfer to initialrecognization adjustment for the arbitraged items:
Nil
58. Special reserves
In RMB
| Item | Opening balance | Increase during the year | Decrease during the year | Ending balance |
| Total | 0.00 | 0.00 |
Other explanation, including changes and reasons for changes:
Nil
59. Surplus reserves
In RMB
| Item | Opening balance | Increase during the year | Decrease during the year | Ending balance |
| Statutory surplus reserve | 32,673,227.01 | 32,673,227.01 | ||
| Total | 32,673,227.01 | 0.00 | 0.00 | 32,673,227.01 |
Other explanation, including changes and reasons for changes:
Nil
60. Retained profit
In RMB
| Item | Current period | Last period |
| Retained profit at period-end before adjustment | -1,195,957,201.01 | -1,197,486,788.28 |
| Retained profit at period-begin after adjustment | -1,195,957,201.01 | -1,197,486,788.28 |
| Add: net profit attributable to shareholders of parent company for this year | 554,162.06 | 1,529,587.27 |
| Retained profit at period-end | -1,195,403,038.95 | -1,195,957,201.01 |
Adjustment for retained profit at period-begin:
1). Retroactive adjustment due to the Accounting Standards for Business Enterprise and relevant new regulations,retained profit at period-begin has 0.00 Yuan affected;2) Due to the accounting policy changes, retained profit at period-begin has 0.00 Yuan affected;3) Due to the major accounting errors correction, retained profit at period-begin has 0.00 Yuan affected;4) Consolidation range changed due to the same control, retained profit at period-begin has 0.00 Yuan affected;5) Total other adjustment impacts 0.00 Yuan retained profit at period-begin
61. Operating income and operating cost
In RMB
| Item | Current amount | Last amount | ||
| Income | Cost | Income | Cost | |
| Main business | 63,664,151.78 | 59,106,390.80 | 45,537,967.15 | 43,692,197.03 |
| Other business | 4,070,747.57 | 2,057,815.53 | 3,391,709.12 | 1,994,075.80 |
| Total | 67,734,899.35 | 61,164,206.33 | 48,929,676.27 | 45,686,272.83 |
62. Business tax and surcharge
In RMB
| Item | Current amount | Last amount |
| Urban maintenance and construction tax | 29,269.66 | 45,604.48 |
| Educational surtax | 20,906.89 | 32,574.63 |
| Stamp tax | 25,561.20 | 13,173.94 |
| Total | 75,737.75 | 91,353.05 |
Other explanationNil
63. Sales expense
In RMB
| Item | Current amount | Last amount |
| Remuneration & social public reserves | 1,532,803.51 | 1,126,682.80 |
| Business travel expenses | 192,454.31 | 218,695.40 |
| Leasing and property fee | 188,033.90 | 180,047.47 |
| Net sales fee | 535,515.52 | 476,089.26 |
| Other | 307,120.29 | 467,186.94 |
| Total | 2,755,927.53 | 2,468,701.87 |
Other explanationNil
64. Administration expense
In RMB
| Item | Current amount | Last amount |
| Remuneration & social public reserves | 1,828,693.52 | 2,079,149.94 |
| Leasing and property fee | 709,919.19 | 702,602.38 |
| Other | 771,107.53 | 557,779.18 |
| Total | 3,309,720.24 | 3,339,531.50 |
Other explanationNil
65. Financial expense
In RMB
| Item | Current amount | Last amount |
| Interest income | -272,686.20 | -213,713.97 |
| Commission charge etc. | 11,710.39 | 12,149.06 |
| Total | -260,975.81 | -201,564.91 |
Other explanationNil
66. Loss from Assets depreciation
In RMB
| Item | Current amount | Last amount |
| I. Bad debt losses | 7,219.20 | -47,271.09 |
| Total | 7,219.20 | -47,271.09 |
Other explanationNil
67. Changes in fair value gains
In RMB
| Changes resources | Current amount | Last amount |
Other explanationNil
68. Investment income
In RMB
| Item | Current amount | Last amount |
Other explanationNil
69. Gains from assets disposal
In RMB
| Sources | Current amount | Last amount |
70. Other income
In RMB
| Sources | Current amount | Last amount |
71. Non-operating revenue
In RMB
| Item | Current amount | Last amount | Amount reckoned into non-recurring gains/losses in the Year |
| Other | 72,126.28 | 291,710.58 | 72,126.28 |
| Total | 72,126.28 | 291,710.58 | 72,126.28 |
Government grants reckoned into current gains/losses:
In RMB
| Item | Granting subject | Cause of distribution | Nature | Impact current profit (Y/N) | Special benefit (Y/N) | Amount in the period | Amount last period | Assets related/income related |
| Total | -- | -- | -- | -- | -- | 0.00 | 0.00 | -- |
Other explanationNil
72. Non-operating expenditure
In RMB
| Item | Current amount | Last amount | Amount reckoned into non-recurring gains/losses in the Year |
| Other | 30,140.00 | 30,140.00 | |
| Total | 30,140.00 | 30,140.00 |
Other explanationNil
73. Income tax expense(1) Income tax expense
In RMB
| Item | Current amount | Last amount |
| Current income tax | 233,133.98 | |
| Deferred income tax | 11,629.41 | |
| Total | 233,133.98 | 11,629.41 |
(2) Adjustment on accounting profit and income tax expenses
In RMB
| Item | Current amount |
| Total profit | 725,050.39 |
| Income tax measured by statutory/applicable tax rate | 233,133.98 |
| Income tax expenses | 233,133.98 |
Other explanationTotal profit of the subsidiaries in consolidate statement was losses
74. Other comprehensive income
Found more in Note 57.
75. Items of cash flow statement(1) Other cash received in relation to operation activities
In RMB
| Item | Current amount | Last amount |
| Interest and Rent and utilities etc. | 1,673,601.27 | 1,603,116.82 |
| Other Current money | 855,411.09 | 721,181.20 |
| Total | 2,529,012.36 | 2,324,298.02 |
Explanation on other cash received in relation to operation activities:
Nil
(2) Other cash paid in relation to operation activities
In RMB
| Item | Current amount | Last amount |
| Payment of the period fee, operation expenditure & common debt | 4,714,582.54 | 5,580,059.48 |
| Total | 4,714,582.54 | 5,580,059.48 |
Explanation on other cash paid in relation to operation activities:
Nil
(3) Cash received from other investment activities
In RMB
| Item | Current amount | Last amount |
Explanation on cash received from other investment activities:
Nil
(4) Cash paid related with investment activities
In RMB
| Item | Current amount | Last amount |
Explanation on cash paid related with investment activitiesNil
(5) Other cash received in relation to financing activities
In RMB
| Item | Current amount | Last amount |
Explanation on other cash received in relation to financing activities:
Nil
(6) Cash paid related with financing activities
In RMB
| Item | Current amount | Last amount |
Explanation on cash paid related with financing activities:
Nil
76. Supplementary information to statement of cash flow(1) Supplementary information to statement of cash flow
In RMB
| Supplementary information | Current Period | Last Period |
| 1. Net profit adjusted to cash flow of operation activities: | -- | -- |
| Net profit | 491,916.41 | -2,127,265.81 |
| Add: Assets impairment provision | 7,219.20 | -47,271.09 |
| Depreciation of fixed assets, consumption of oil assets and depreciation of productive biology assets | 184,546.75 | 145,136.97 |
| Amortization of intangible assets | 376,500.00 | 376,500.00 |
| Financial expense(gain listed with “-”) | -201,564.91 | |
| Decrease of deferred income tax asset( (increase is listed with “-”) | 11,629.41 | |
| Decrease of inventory (increase is listed with “-”) | -2,033,200.69 | -2,966,733.68 |
| Decrease of operating receivable accounts (increase is listed with “-”) | -5,809,570.61 | 1,556,935.35 |
| Increase of operating payable accounts (decrease is listed with “-”) | 3,419,617.75 | -5,553,408.47 |
| Net cash flow arising from operating activities | -3,362,971.19 | -8,806,042.23 |
| 2. Material investment and financing not involved in cash flow | -- | -- |
| 3. Net change of cash and cash equivalents: | -- | -- |
| Balance of cash at period end | 15,814,304.99 | 15,177,305.48 |
| Less: Balance of cash at year-begin | 19,177,276.18 | 24,015,287.71 |
| Net increasing of cash and cash equivalents | -3,362,971.19 | -8,837,982.23 |
(2) Net cash paid for obtaining subsidiary in the Period
In RMB
| Amount | |
| Including: | -- |
| Including: | -- |
| Including: | -- |
Other explanationNil
(3) Net cash received by disposing subsidiary in the Period
In RMB
| Amount | |
| Including: | -- |
| Including: | -- |
| Including: | -- |
Other explanationNil
(4) Constitution of cash and cash equivalent:
In RMB
| Item | Ending balance | Opening balance |
| Ⅰ. Cash | 15,814,304.99 | 19,177,276.18 |
| Including: Cash on hand | 55,753.64 | 100,034.87 |
| Bank deposit available for payment at any time | 15,758,551.35 | 18,837,402.11 |
| Other monetary fund available for payment at any time | 239,839.20 | |
| Ⅲ. Balance of cash and cash equivalent at period-end | 15,814,304.99 | 19,177,276.18 |
Other explanationNil
77. Notes of changes of owners’ equity
Explain the name and adjusted amount in “Other” at end of last period:
Nil
78. Assets with ownership or use right restricted
In RMB
| Item | Ending book value | Restriction reasons |
| Total | 0.00 | -- |
Other explanationNil
79. Foreign currency monetary items(1) Foreign currency monetary items
In RMB
| Item | Ending foreign currency balance | Convert rate | Ending RMB balance converted |
Other explanationNil
(2) Explanation on foreign operational entity, including as for the major foreign operationalentity, disclosed main operation place, book-keeping currency and basis for selection; if thebook-keeping currency changed, explain reasons
□ Applicable √ Not applicable
80. Hedging
Disclosed hedging items and relevant hedging instrument based on hedging’s category, disclosed qualitative and
quantitative information for the arbitrage risks:
Nil
81. Other
Nil
VIII. Changes of consolidation range
1. Enterprise combined under different control(1) Enterprise combined under different control in the Period
In RMB
| Acquiree | Time point for equity obtained | Cost of equity obtained | Ratio of equity obtained | Acquired way Equity obtained way | Purchasing date | Standard to determine the purchasing date | Income of acquiree from purchasing date to period-end | Net profit of acquiree from purchasing date to period-end |
Other explanationNil
(2) Combination cost and goodwill
In RMB
| Combination cost |
Determination method for fair value of the combination cost and contingent consideration and changes:
NilMain reasons for large goodwill resulted:
NilOther explanationNil
(3) Identifiable assets and liability on purchasing date under the acquiree
In RMB
| Fair value on purchasing date | Book value on purchasing date | |
Determination method for fair value of the identifiable assets and liabilities:
NilContingent liability of the acquiree bear during combination:
NilOther explanationNil
(4) Gains or losses arising from re-measured by fair value for the equity held beforepurchasing date
Whether it is a business combination realized by two or more transactions of exchange and a transaction ofobtained control rights in the Period or not
□Yes √No
(5) On purchasing date or period-end of the combination, combination consideration or fairvalue of identifiable assets and liability for the acquiree are un-able to confirm rationally
Nil
(6) Other explanation
Nil
2. Enterprise combined under the same control(1) Enterprise combined under the same control in the Period
In RMB
| Acquiree | Equity ratio obtained in combination | Basis of combined under the same control | Combination date | Standard to determine the combination date | Income of the combined party from period-begin of combination to the combination date | Net profit of the combined party from period-begin of combination to the combination date | Income of the combined party during the comparison period | Net profit of the combined party during the comparison period |
Other explanationNil
(2) Combination cost
In RMB
| Combination cost |
Explanation on contingent consideration and its changes:
NilOther explanationNil
(3) Assets and liability of the combined party on combination date
In RMB
| On purchasing date | At end of last period | |
Contingent liability of the combined party bear during combination:
NilOther explanationNil
3. Counter purchase
Basic transaction information, basis of counter purchase, whether making up business due to the assets andliability reserved by listed company and basis, determination of combination cost, amount and calculation onadjusted equity by equity transactionNil
4. Subsidiary disposal
Whether lost controlling rights while dispose subsidiary on one time or not
□ Yes √ No
Whether lost controlling rights in the Period while dispose subsidiary on two or more steps or not
□ Yes √ No
5. Other reasons for consolidation range changed
Reasons for changed on consolidation range (such as new subsidiary established, subsidiary liquidated etc.)Andrelevant informationNil
6. Other
Nil
IX. Equity in other entity
1. Equity in subsidiary
(1) Constitute of enterprise group
| Subsidiary | Main operation place | Registered place | Business nature | Share-holding ratio | Acquired way | |
| Directly | Indirectly | |||||
| Shenzhen Emmelle Industrial Co., Ltd. | Shenzhen | Shenzhen | Bicycle and spare parts distribution | 70.00% | Investment establishment | |
Explanation on share-holding ratio in subsidiary different from ratio of voting right:
NilBasis for controlling the invested entity with half or below voting rights held and without controlling investedentity but with over half and over voting rightsNilControlling basis for the structuring entity included in consolidated rangeNilBasis on determining to be an agent or consignor:
NilOther explanationNil
(2) Important non-wholly-owned subsidiary
In RMB
| Subsidiary | Share-holding ratio of minority | Gains/losses attributable to minority in the Period | Dividend announced to distribute for minority in the Period | Ending equity of minority |
| Shenzhen Emmelle Industrial Co., Ltd. | 30.00% | -62,245.65 | 0.00 | 2,900,454.02 |
Explanation on share-holding ratio of minority different from ratio of voting right:
NilOther explanationNil
(3) Main finance of the important non-wholly-owned subsidiary
In RMB
| Subsidiary | Ending balance | Opening balance | ||||||||||
| Current assets | Non-current assets | Total assets | Current liability | Non-current liability | Total liability | Current assets | Non-current assets | Total assets | Current liability | Non-current liability | Total liability | |
| Shenzhen Emmelle Industrial Co., Ltd. | 30,301,180.62 | 1,308,754.49 | 31,609,935.11 | 21,941,755.06 | 0.00 | 21,941,755.06 | 31,672,252.96 | 1,373,481.42 | 33,045,734.38 | 23,170,068.81 | 0.00 | 23,170,068.81 |
In RMB
| Subsidiary | Current amount | Last amount | ||||||
| Operation Income | Net profit | Total comprehensive income | Cash flow from operation activity | Operation Income | Net profit | Total comprehensive income | Cash flow from operation activity | |
| Shenzhen Emmelle Industrial Co., Ltd. | 44,367,011.18 | -207,485.52 | -207,485.52 | 1,114,664.36 | 46,225,592.77 | -1,452,957.89 | -1,452,957.89 | -9,054,161.55 |
Other explanationNil
(4) Major restriction on using corporate assets and liquidate corporate debts
Nil
(5) Financial or other supporting provided to structuring entity that included inconsolidated financial statement
NilOther explanationNil
2. Transaction that has owners equity shares changed in subsidiary but still with controllingrights
(1) Owners equity shares changed in subsidiary
(2) Impact on minority’s interest and owners’ equity attributable to parent company
In RMB
Other explanation
3. Equity in joint venture and cooperative enterprise(1) Important joint venture and cooperative enterprise
| Name | Main operation place | Registered place | Business nature | Share-holding ratio | Accounting treatment on investment for joint venture and cooperative enterprise | |
| Directly | Indirectly | |||||
Share-holding ratio or shares enjoyed different from voting right ratio:
Basis of the voting rights with 20% below but with major influence, or without major influence but with over 20%(20% included) voting rights hold:
(2) Main financial information of the important joint venture
In RMB
| Ending balance /Current amount | Opening balance /Last amount | |
Other explanation
(3) Main financial information of the important cooperative enterprise
In RMB
| Ending balance /Current amount | Opening balance /Last amount | |
Other explanation
(4) Financial summary for un-important joint venture or cooperative enterprise
In RMB
| Ending balance /Current amount | Opening balance /Last amount | |
| Joint venture | -- | -- |
| Total numbers measured by share-holding ratio | -- | -- |
| Cooperative enterprise | -- | -- |
| Total numbers measured by share-holding ratio | -- | -- |
Other explanation
(5) Assets transfer ability has major restriction from joint venture or cooperative enterprise(6) Excess losses from joint venture or cooperative enterprise
In RMB
| Name | Cumulative un-confirmed losses | Un-confirmed losses not recognized in the Period (or net profit enjoyed in the Period) | Cumulative un-confirmed losses at period-end |
Other explanation
(7) Un-confirmed commitment with investment concerned with joint venture(8) Contingent liability with investment concerned with joint venture or cooperative
enterprise4. Co-runs operation
| Name | Main operation place | Registered place | Business nature | Share-holding ratio/ share enjoyed | |
| Directly | Indirectly | ||||
Share-holding ratio or shares enjoyed different from voting right ratio:
If the co-runs entity is the separate entity, basis of the co-runs classificationOther explanation
5. Equity in structuring entity that excluding in the consolidated financial statement
Relevant explanation
6. Other
X. Risk related with financial instrument
The major financial instruments of the Company consist of monetary funds, trade receivables,other receivables, trade payables, other payables, etc. details of these financial instruments aredisclosed in the relevant notes. Risks relating to these financial instruments and risk managementpolicies adopted by the Company to minimize these risks are detailed as follows. Management ofthe Company manages and monitors the risk exposures, to make sure they are under control.
1. Risk management targets and policies
The objectives of the Company’s risk management is to balance the risk and income, reduce the
negative risk impact of operating performance to the lowest level, maximize the interests ofshareholders and other equity investors. Based on these objectives, the Company has establishedrisk management policies to identify and analyze the risks faced by the Company, set adequaterisk acceptable level and designed relevant internal control system to monitor the level of risks.The Company regularly reviews these policies and related internal control system to adapt tomarket development and change of operating activities of the Company. The major risks arising
from the Company’s financial instruments are credit risk and liquidity risk.
(1)Credit riskCredit risk represents the risk of financial loss suffered by a party to a financial instrument due to
failure of performance obligation of another party.Credit risk of the Company is managed by category. Credit risk mainly arises from bank deposits
and trade receivables. Since the bank deposits of the Company are mainly placed with those banksof high credit rating, the Company expects no significant credit risk on bank deposits.
As for trade receivables, the Company establishes relevant policies to control credit risk exposure.The Company, based on financial position of debtors, their credit records, market conditions and
other factors, makes assessment on debtors’ credit quality and sets relevant limit on amount of
debt and credit term. The maximum credit risk exposure assumed by the Company equals to thesum of carrying value of every financial asset in the balance sheet. The Company provides noguarantee that may lead it to be exposed to credit risks.
(2)Liquidity risk
Liquidity risk refers to the risk of capital shortage of the Company when performing settlementobligation via delivery of cash or other financial assets.
When managing liquidity risk, the Company maintains and monitors such cash and cashequivalents as deemed adequate by the management, so as to satisfy its operation needs andminimize influence of fluctuation of cash flow. Management of the Company monitors applicationof bank borrowings to make sure it complies with relevant borrowing agreements.
2. Capital managementThe capital management policy of the Company is designed to ensure sustainable operation Of the
Company so as to bring shareholders return and benefit other stakeholders, and to minimizecapital cost by maintaining optimal capital structure.
In order to maintain and adjust capital structure, the Company may adjust share dividend paid toshareholders or issue new shares.
The Company monitors capital structure based on gearing ratio (total liabilities divided by totalassets). As at 30 June 2018, the gearing ratio of the Company was 72.68% (31 December 2017:
74.36%)
XI. Disclosure of fair value
1. Ending fair value of the assets and liabilities measured by fair value
In RMB
| Item | Ending fair value | |||
| First-order | Second-order | Third-order | Total | |
| I. Sustaining measured by fair value | -- | -- | -- | -- |
| (I) Financial assets measured at fair value and changes accounted in the current profits and losses | 0.00 | |||
| 1. Transaction financial assets | 0.00 | |||
| (1) Investment in debt instruments | 0.00 | |||
| (2) Investment in equity instruments | 0.00 | |||
| (3) Derivative financial assets | 0.00 | |||
| 2. Financial assets appointed to measure at fair value and changes accounted in the current profits and losses | 0.00 | |||
| (1) Investment in debt instruments | 0.00 | |||
| (2) Investment in equity instruments | 0.00 | |||
| (II) Financial assets available for sale | 0.00 | |||
| (1) Investment in debt instruments | 0.00 | |||
| (2) Investment in equity instruments | 0.00 | |||
| (3) Other | 0.00 | |||
| (III) Investment real estate | 0.00 | |||
| 1. Rental land use rights | 0.00 | |||
| 2. Rental buildings | 0.00 | |||
| 3. Land use rights holding and preparing to transfer after add value | 0.00 | |||
| (IV) Biological assets | 0.00 | |||
| 1. Consumption biological assets | 0.00 | |||
| 2. Productive biological assets | 0.00 | |||
| Total assets continuously measured by fair value | 0.00 | |||
| (V) Transaction financial liabilities | 0.00 | |||
| Among them: issue of transaction bonds | 0.00 | |||
| Derivative financial liabilities | 0.00 | |||
| Other | 0.00 |
| (VI) Financial liabilities appointed to measure at fair value and changes accounted in the current profits and losses | 0.00 | |||
| Total liabilities continuously measured by fair value | 0.00 | |||
| II. Non-sustaining measured by fair value | -- | -- | -- | -- |
| (I) Assets held for sale | 0.00 | |||
| Total assets non-continuously measured by fair value | 0.00 | |||
| Total liabilities non-continuously measured by fair value | 0.00 |
2. Recognized basis for the market price sustaining and non-persistent measured by fairvalue on first-order
Nil
3. Valuation technique and qualitative and quantitative information on major parametersfor the fair value measure sustaining and non-persistent on second-order
Nil
4. Valuation technique and qualitative and quantitative information on major parametersfor the fair value measure sustaining and non-persistent on third-order
Nil
5. Adjustment information and sensitivity analysis of unobservable parameters for the fairvalue measure sustaining and non-persistent on third-order
Nil
6. Sustaining items measured by fair value, as for the conversion between at all levels,reasons for conversion and policy for conversion time point
Nil
7. Changes of valuation technique in the Period
Nil
8. Financial assets and liability not measured by fair value
Nil
9. Other
Nil
XII. Related party and related transactions
1. Parent company of the enterprise
| Parent company | Registration place | Business nature | Registered capital | Share-holding ratio on the enterprise for parent company | Voting right ratio on the enterprise |
Explanation on parent company of the enterpriseWe do not have parent company presentlyUltimate controlling party: NilOther explanation:
Controlling shareholder and actual controller of the Company have changed on 20 Feburary 2017. Before changed,the first majority shareholder of the Company was Shenzhen Guosheng Energy Investment Developmetn Co., Ltd.,actual controller was Mr. Ji Hanfei; the Company has no actual controller and controlling shareholder after
changed. Found more in the Annual Report 2016 released on 27 April 2017 and “Reply on Surveillance AttentionLetter on CBC from Shenzhen Stock Exchange” released on 26 May 2017
2. Subsidiary of the Enterprise
Found more in Note IX-1
3. Cooperative enterprise and joint venture
Found more in Note IX-3Other cooperative enterprise and joint venture that have related transaction with the Company in the Period oroccurred in pervious period
| Name | Relationship |
Other explanationNil
4. Other related party
| Other related party | Relationship with the Enterprise |
| Shenzhen Guosheng Energy Investment Development Co., Ltd. | The first majority shareholder |
Other explanationShenzhen Guosheng Energy Investment Development Co., Ltd. holds 11.52% shares
5. Related transaction(1) Goods purchasing, labor service providing and receiving
Goods purchasing/labor service receiving
In RMB
| Related party | Content | Current amount | Approved transaction amount | Whether more than the transaction amount | Last amount |
Goods sold/labor service providing
In RMB
| Related party | Content | Current amount | Last amount |
Explanation on goods purchasing, labor service providing and receivingNil
(2) Related trusteeship/contract and delegated administration/outsourcing
Trusteeship/contract
In RMB
| Client/ contract-out party | Entrusting party/ contractor | Assets type | Starting date | Maturity date | Yield pricing basis | Income from trusteeship/contract |
Explanation on related trusteeship/contractNilDelegated administration/outsourcing
In RMB
| Client/ contract-out party | Entrusting party/ contractor | Assets type | Starting date | Maturity date | Pricing basis of trustee fee/outsourcing fee | trustee fee/outsourcing fee recognized in the Period |
Explanation on related administration/outsourcingNil
(3) Related lease
As a lessor for the Company:
In RMB
| Lessee | Assets type | Lease income in recognized in the Period | Lease income in recognized last the Period |
As a lessee for the Company:
In RMB
| Lessor | Assets type | Lease income in recognized in the Period | Lease income in recognized last the Period |
Explanation on related leaseNil
(4) Related guarantee
As a guarantor for the Company
In RMB
| Secured party | Amount guarantee | Starting date | Maturity date | Guarantee completed (Y/N) |
As a secured party for the Company
In RMB
| Guarantor | Amount guarantee | Starting date | Maturity date | Guarantee completed (Y/N) |
Explanation on related guaranteeNil
(5) Borrowed funds of related party
In RMB
| Related party | Borrowed funds | Starting date | Maturity date | Note |
| Borrowing | ||||
| Lending | ||||
(6) Assets transfer and debt restructuring of related party
In RMB
| Related party | Transaction content | Current amount | Last amount |
(7) Remuneration of key manager
In RMB
| Item | Current amount | Last amount |
| Remuneration of key manager | 1,258,900.00 | 1,091,420.00 |
(8) Other related transactions
Nil
6. Receivable/payable items of related parties(1) Receivable item
In RMB
| Item | Related party | Ending balance | Opening balance | ||
| Book balance | Bad debt provision | Book balance | Bad debt provision | ||
(2) Payable item
In RMB
| Item | Related party | Ending book balance | Opening book balance |
| Other account payable | Shenzhen Guosheng Energy Investment Development Co., Ltd. | 6,500,000.00 | 6,500,000.00 |
7. Commitments of related party
Nil
8. Other
Nil
XIII. Share-based payment
1. General share-based payment
□ Applicable √ Not applicable
2. Share-based payment settled by equity
□ Applicable √ Not applicable
3. Share-based payment settled by cash
□ Applicable √ Not applicable
4. Revised and termination on share-based payment
Nil
5. Other
Nil
XIV. Commitment or contingency
1. Important commitments
Important commitments in balance sheet dateNil
2. Contingency(1) Contingency on balance sheet date
Nil
(2) For the important contingency not necessary to disclosed by the Company, explainedreasons
The Company has no important contingency that need to disclosed
3. Other
Nil
XV. Events after balance sheet date
1. Important non-adjustment items
In RMB
| Item | Content | Impact on financial status and operation results | Reasons on un-able to estimated the impact number |
2. Profit distribution
In RMB
3. Sales return
Nil
4. Other events after balance sheet date
Nil
XVI. Other important events
1. Previous accounting errors collection(1) Retrospective restatement
In RMB
| Content | Treatment procedures | Impact items of statement during a comparison | Cumulative impacted number |
(2) Prospective application
| Accounting error correction | Approval procedures | Reasons for prospective application adopted |
2. Debt restructuring3. Assets replacement(1) Non-monetary assets replacement(2) Other assets replacement4. Pension plan5. Discontinued operations
In RMB
| Item | Revenue | Expenses | Total profit | Income tax expenses | Net profit | Discontinued operations profit attributable to owners of parent company |
Other explanation
6. Segment(1) Recognition basis and accounting policy for reportable segment(2) Financial information for reportable segment
In RMB
| Item | Offset between segments | Total |
(3) The Company has no reportable segments, or unable to disclose total assts and totalliability for reportable segments, explain reasons
(4) Other explanation
7. Major transaction and events makes influence on investor’s decision
8. Other1. Instructions for continuing operationsOn 11 May 2012, the largest shareholder and biggest creditor of the Company, Shenzhen
Guosheng Energy Investment and Development Co., Ltd. applied to Shenzhen Municipal
Intermediate People's Court for reforming the Company as the Company couldn’t pay off the
matured debts and was seriously insolvent. On 12 October 2012, Shenzhen MunicipalIntermediate People's Court ruled to accept the application proposed by Guosheng Energyaccording to (2012) Shenzhen Intermediate Court Po Zi No. 30 civil ruling. In late October, 2012,Shenzhen Municipal Intermediate People's Court ruled to reform the Company since 25 October2012 according to (2012) Shenzhen Intermediate Court Po Zi No. 30-1 civil ruling, appointedKing & Wood (Shenzhen) Mallesons and Shenzhen ZhengYuan Liquidation Affairs Co., Ltd. asthe custodians of the Company. Subsequently, Shenzhen Municipal Intermediate People's Courtmade (2012) Shenzhen Intermediate Court Po Zi No. 30-1 written decision, and approved theCompany to manage property and business affairs by itself under the supervision of custodians
according to the law. On 5 November 2013, the Shenzhen Intermediate People’s Court (2012)
Shen Zhong Fa Po Zi No. 30-6 Civil Ruling Paper judged that approved the reorganization plan of
the Company. On 27 December 2013, the Civil Ruling Paper Shenzhen Intermediate People’s
Court (2012) Shen Zhong Fa Po Zi No. 30-10 ruled that the reorganization plan of CBC wascompleted and bankruptcy procedures of the Company closed down.The Company has solved the debt problem by reforming, realized the net assets with positivevalue, the main business of bicycle is able to be maintained and realizes the stable development.The Company has set up the conditions for introducing the recombination party in the reformingplan, and expects to restore the abilities of sustainable operation and sustained profitability by
reorganization. The conditions of introducing the recombination party includes: the assessed valueof net assets should be no less than 2 billion Yuan, the net assets in the same year forimplementing the major reorganization should be no less than 200 million Yuan. The Company
doesn’t have the recombination party at the moment.
2. Non-public placement for year of 2016In July 2016, the Company started to plan a non-public issue of shares with proceeds to be utilized
to acquire material assets. The Plan on Non-public Issue of A shares in 2016 was considered andapproved by the Board of the Company. Based on the due diligence, audit, assessment andbusiness negation with intermediates, taking into account the conditions of capital market andactual conditions of the Company, the Board of the Company considered and approved theProposal Relating to Adjusting the Plan of non-public of A Shares, the Explanation on non-publicof A-shares for year of 2016 Amendment, the Plan on Non-public Issue of A shares in 2016(amended), the Plan on Non-public Issue of A shares in 2016 (Second Amended) and Plan onNon-public Issue of A shares in 2016 (Third Amended) from February 2017 to February 2018.According to the three revised drafts, the number of non-public offering of shares should notexceed 110,269,586 shares, and the total amount of funds raised should not exceed 750 millionYuan. The issuing objects of this non-public offering include four specific investors which areRuian Information, Zhisheng High-tech, Wansheng Industry and Beier High-tech. Thesubscription amount of Ruian Information does not exceed 250 million Yuan, and the number ofsubscribed shares does not exceed 36,756,529 shares; the subscription amount of ZhishengHigh-tech does not exceed 200 million Yuan, and the number of subscribed shares does notexceed 29,405,223 shares; the subscription amount of Wansheng Industry and Beier High-techrespectively does not exceed 150 million Yuan, and the number of subscribed shares does notexceed 22,053,917 shares respectively. See details on the announcement issued by the board ofdirectors of the company.
The Company convened the first extraordinary general meeting of 2018 on February 13, 2018which reviewed and passed the Proposal on Plan on Non-public Issue of A shares in 2016 (ThirdAmended), etc.
XVII. Principle notes of financial statements of parent company
1. Accounts receivable(1) Category
In RMB
| Types | Ending balance | Opening balance | ||||
| Book balance | Bad debt provision | Book | Book balance | Bad debt provision | Book value | |
| Amount | Ratio | Amount | Accrual ratio | value | Amount | Ratio | Amount | Accrual ratio | ||
| Account receivable withdrawal bad debt provision by group of credit risk characteristics | 17,059,517.71 | 100.00% | 51,178.55 | 0.30% | 17,008,339.16 | 17,733,864.75 | 100.00% | 53,201.59 | 0.30% | 17,680,663.16 |
| Total | 17,059,517.71 | 100.00% | 51,178.55 | 0.30% | 17,008,339.16 | 17,733,864.75 | 100.00% | 53,201.59 | 0.30% | 17,680,663.16 |
Receivable with single significant amount and withdrawal bad debt provision separately at end of period:
□ Applicable √ Not applicable
In combination, accounts receivable whose bad debts provision was accrued by age analysis:
√ Applicable □ Not applicable
In RMB
| Age | Ending balance | ||
| Account receivable | Bad debt provision | Accrual ratio | |
| Within 1 year | |||
| Within 1 year | 17,059,517.71 | 51,178.55 | 0.30% |
| Subtotal within one year | 17,059,517.71 | 51,178.55 | 0.30% |
| Total | 17,059,517.71 | 51,178.55 | 0.30% |
Explanation on combination determines:
According to the business scale, business nature, and customers’ settlement, etc., the account receivable with single
significant amount is determined to be RMB 5 million. The account receivable with single significant amount has
no depreciation reserve, and the reserve for bad debt provision is withdrawn with age analysis method.
In combination, withdrawal proportion of bad debt provision based on balance proportion for account receivable:
□ Applicable √ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods for account receivable:
(2) Bad debt provision accrual collected or switch back
Bad debt provision accrual was 53,201.59 Yuan; the amount collected or switches back amounting to 2,023.04Yuan.Important bad debt provision collected or switch back:
In RMB
| Company | Collected or switch back amount | Collection way |
| Total | 0.00 | -- |
Nil
(3) Account receivable actual charge off in the Period
In RMB
| Item | Amount written off |
Written-off for the major receivable:
In RMB
| Company | Nature | Amount written off | Reason for write-off | Verification procedures | Arising from related transaction (Y/N) |
| Total | -- | 0.00 | -- | -- | -- |
Explanation for write-off of receivables:
Nil
(4) Top 5 receivables at ending balance by arrears party
Top 5 account recevieblaes at period-end
| Item | Relationship with the company | Amount | Account age | Bad debt provision | Ratio in total receivables (%) | Nature |
| Shenzhen WTR New Energy Technology Co., Ltd. | Unrelated party | 7,923,335.39 | Within 1 year | 23,770.00 | 46.44 | Payment for goods |
| Shenzhen BoYiN Technology Co., Ltd. | Unrelated party | 5,217,743.51 | Within 1 year | 15,653.23 | 30.59 | Payment for goods |
| Shenzhen Jiahaosong Technology Co., Ltd. | Unrelated party | 3,918,438.81 | Within 1 year | 11,755.32 | 22.97 | Payment for goods |
| Total | 17,059,517.71 | 51,178.55 | 100.00 |
(5) Receivable derecognition due to transfer of financial assets
Nil
(6) Assets and liability resulted by receivable transfer and continuous involvement
NilOther explanation
At end of the period, there was no account receivable from shareholder unit and other relatedparties that holds 5% (included) voting rights of the Company among Account Receivables
2. Other accounts receivable(1) Other accounts receivable by category
In RMB
| Category | Ending balance | Opening balance | ||||||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
| Amount | Ratio | Amount | Accrual ratio | Amount | Ratio | Amount | Accrual ratio | |||
| Other receivables with bad debt provision accrual by credit portfolio | 256,350.00 | 100.00% | 769.05 | 0.30% | 255,580.95 | 251,350.00 | 89.34% | 754.05 | 0.30% | 250,595.95 |
| Other account receivable with individual minor amount but withdrawal bad debt provision independently | 29,980.42 | 10.66% | 29,980.42 | |||||||
| Total | 256,350.00 | 100.00% | 769.05 | 0.30% | 255,580.95 | 281,330.42 | 100.00% | 754.05 | 0.27% | 280,576.37 |
Other receivable with single significant amount and withdrawal bad debt provision separately at end of period
□ Applicable √ Not applicable
In combination, other accounts receivable whose bad debts provision was accrued by age analysis
√ Applicable □ Not applicable
In RMB
| Age | Ending balance | ||
| Other receivable | bad debts provision | Accrual ratio | |
| Within 1 year | |||
| Within one year (one year included) | 5,000.00 | 15.00 | 0.30% |
| Subtotal within one year | 5,000.00 | 15.00 | 0.30% |
| 1-2 years | 200.00 | 0.60 | 0.30% |
| 2-3 years | 251,150.00 | 753.45 | 0.30% |
| Total | 256,350.00 | 769.05 | 0.30% |
Explanation on combination determines:
According to the business scale, business nature, and customers’ settlement, etc., the account receivable with single
significant amount is determined to be RMB 5 million. The account receivable with single significant amount has
no depreciation reserve, and the reserve for bad debt provision is withdrawn with age analysis method.
In combination, withdrawal proportion of bad debt provision based on balance proportion for other accountreceivable:
□ Applicable √ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods for other account receivable:
□ Applicable √ Not applicable
(2) Bad debt provision accrual collected or switch back
Bad debt provision accrual was 15.00 Yuan; the amount collected or switches back amounting to 0.00 Yuan.Important bad debt provision collected or switch back:
In RMB
| Company | Amount reversal or collected | Collection way |
| Total | 0.00 | -- |
Nil
(3) Other receivables actually written-off during the reporting period
In RMB
| Item | Amount written off |
Written-off for the major other receivable:
In RMB
| Company | Nature of other receivables | Amount written off | Reason for write-off | Verification procedures | Arising from related transaction (Y/N) |
| Total | -- | 0.00 | -- | -- | -- |
Explanation for write-off of other receivables:
Nil
(4) Other receivables by nature
In RMB
| Nature | Ending book balance | Opening book balance |
| Intercourse funds | 29,980.42 | |
| Margin or deposit | 239,950.00 | 239,950.00 |
| Equipment money | 11,400.00 | 11,400.00 |
| Staff borrowing | 5,000.00 | |
| Total | 256,350.00 | 281,330.42 |
(5) Top 5 other receivables at ending balance by arrears party
In RMB
| Company | Nature | Ending balance | Age | Ratio in total ending balance of other receivables | Ending balance of bad bet provision |
| Shenzhen Material Group Co., Ltd. | Deposit or margin | 135,723.00 | 2-3 years | 52.94% | 407.17 |
| Shenzhen Anjinheng Industrial Co., Ltd. | Deposit or margin | 90,100.00 | 2-3 years | 35.15% | 270.30 |
| Shenzhen Baifanghe Property Co., Ltd. | Deposit or margin | 13,627.00 | 2-3 years | 5.31% | 40.88 |
| Shenzhen Hongkang Instrument Technology Co., Ltd. | Equipment money | 11,400.00 | 2-3 years | 4.45% | 34.20 |
| Cui Hongxia | Staff borrowing | 5,000.00 | Within 1 year | 1.95% | 15.00 |
| Total | -- | 255,850.00 | -- | 99.80% | 767.55 |
(6) Account receivable with government grants involved
In RMB
| Company | Item | Ending balance | Ending age | Time, amount and basis of amount collection estimated |
| Total | -- | 0.00 | -- | -- |
Nil
(7) Other account receivable derecognition due to financial assets transfer
Nil
(8) Assets and liability resulted by other account receivable transfer and continuousinvolvement
NilOther explanationNil
3. Long-term equity investment
In RMB
| Item | Ending balance | Opening balance | ||||
| Book balance | Impairment | Book value | Book balance | Impairment | Book value | |
| Investment for subsidiary | 1,400,000.00 | 1,389,620.27 | 10,379.73 | 1,400,000.00 | 1,389,620.27 | 10,379.73 |
| Total | 1,400,000.00 | 1,389,620.27 | 10,379.73 | 1,400,000.00 | 1,389,620.27 | 10,379.73 |
(1) Investment for subsidiary
In RMB
| The invested entity | Opening balance | Increase during the year | Decrease during the year | Ending balance | Impairment accrual | Ending balance of impairment provision |
| Shenzhen Emmelle Industrial Co., Ltd. | 1,400,000.00 | 0.00 | 0.00 | 1,400,000.00 | 0.00 | 1,389,620.27 |
| Total | 1,400,000.00 | 0.00 | 0.00 | 1,400,000.00 | 0.00 | 1,389,620.27 |
(2) Investment for associates and joint venture
In RMB
| Company | Opening balance | +,- | Ending balance | Ending balance of impairment provision | |||||||
| Additional investment | Capital reduction | Investment gains recognized under equity | Other comprehensive income adjustment | Other equity change | Cash dividend or profit announced to issued | Impairment accrual | Other | ||||
| I. Joint venture | |||||||||||
| Subtotal | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| II. Associated enterprise | |||||||||||
| Subtotal | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
(3) Other explanation
Nil
4. Operating income and cost
In RMB
| Item | Current amount | Last amount | ||
| Income | Cost | Income | Cost | |
| Main business | 20,600,065.94 | 18,788,402.55 | ||
| Other business | 3,423,452.74 | 2,057,815.53 | 3,228,905.96 | 1,994,075.80 |
| Total | 24,023,518.68 | 20,846,218.08 | 3,228,905.96 | 1,994,075.80 |
Other explanationNil
5. Investment gains
In RMB
| Item | Current amount | Last amount |
6. Other
Nil
XVIII. Supplementary Information1. Current non-recurring gains/losses
√ Applicable □ Not applicable
In RMB
| Item | Amount | Note |
| Other non-operating income and expenditure except for the aforementioned items | 41,986.28 | |
| Less: Impact on income tax | 17,026.35 | |
| Impact on minority shareholders’ equity | -7,835.74 | |
| Total | 32,795.67 | -- |
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure forCompanies Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurringprofit (gain)/loss according to the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 onInformation Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, explainreasons
□ Applicable √ Not applicable
2. REO and earnings per share
| Profits during report period | Weighted average ROE | Earnings per share | |
| Basic EPS (RMB/Share) | Diluted EPS (RMB/Share) | ||
| Net profits belong to common stock stockholders of the Company | 3.43% | 0.0010 | 0.0010 |
| Net profits belong to common stock stockholders of the Company after deducting nonrecurring gains and losses | 3.22% | 0.0009 | 0.0009 |
3. Difference of the accounting data under accounting rules in and out of China(1) Difference of the net profit and net assets disclosed in financial report, under both IAS
(International Accounting Standards) and Chinese GAAP (Generally Accepted AccountingPrinciples)
□ Applicable √ Not applicable
(2) Difference of the net profit and net assets disclosed in financial report, under bothforeign accounting rules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
(3) Explain accounting difference over the accounting rules in and out of China; as for thedifference adjustment for data audited by foreign auditing organ, noted the name of suchforeign organ
Nil
4. Other
Nil