Shenzhen China Bicycle Company (Holdings) Limited
SEMI-ANNUAL REPORT 2019
August 2019
Section I. Important Notice, Contents and ParaphraseBoard of Directors, Supervisory Committee, all directors, supervisors and seniorexecutives of Shenzhen China Bicycle Company (Holdings) Limited (hereinafterreferred to as the Company) hereby confirm that there are no any fictitiousstatements, misleading statements, or important omissions carried in this report,and shall take all responsibilities, individual and/or joint, for the reality,accuracy and completion of the whole contents.Li Hai, Principal of the Company, Sun Longlong, person in charge of accountingworks and Zhong Xiaojin, person in charge of accounting organ (accountingprincipal) hereby confirm that the Financial Report of 2019 Semi-AnnualReport is authentic, accurate and complete.All directors are attended the Board Meeting for report deliberation.The Company has no plan of cash bonus, dividends and capitalizing of reserveseither.
Content
Section I Important Notice and Paraphrase ...... 2
Section II Company Profile and Main Financial Indexes ...... 5
Section III Summary of Company Business ...... 8
Section IV Discussion and Analysis of the Operation ...... 9
Section V Important Events ...... 16
Section VI Changes in shares and shareholders ...... 23
Section VII Preferred Stock ...... 28Section VIII Particulars about Directors, Supervisors and Senior Executives ... 29Section IX Corporate -bond ...... 30
Section X Financial report ...... 31
Section XI Documents available for reference ...... 157
Paraphrase
| Items | Refers to | Definition |
Section II. Company Profile and Main Financial Indexes
I. Company Profile
| Short form of the stock | Zhonghua – A, Zhonghua -B | Code for share | 000017, 200017 |
| The abbreviation of the changed stock (if applicable) | N/A | ||
| Stock exchange for listing | Shenzhen Stock Exchange | ||
| Name of the Company (in Chinese) | 深圳中华自行车(集团)股份有限公司 | ||
| Short form of the Company (in Chinese) (if applicable) | 深中华 | ||
| Foreign name of the Company (if applicable) | Shenzhen China Bicycle Company (Holdings) Limited | ||
| Short form of foreign name of the Company (if applicable) | CBC | ||
| Legal representative | Li Hai | ||
| Secretary of the Board | Rep. of securities affairs | |
| Name | Sun Longlong | Cui Hongxia, Zhong Xiaojin |
| Contact adds. | Room 1201, Wantong Building, No.3002, Sungang East Road, Luohu District, Shenzhen | Room 1201, Wantong Building, No.3002, Sungang East Road, Luohu District, Shenzhen |
| Tel. | 0755-25516998,28181666 | 0755-25516998,28181666 |
| Fax. | 0755-28181009 | 0755-28181009 |
| dmc@szcbc.com | dmc@szcbc.com |
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
The newspaper appointed for information disclosure, website for semi-annual report publish appointed by CSRC and preparationplace for semi-annual report have no change in reporting period, found more details in Annual Report 2018.
IV. Main accounting data and financial indexesWhether it has retroactive adjustment or re-statement on previous accounting data or not
□ Yes √ No
| Current period | Same period of last year | Increase/decrease in this report y-o-y | |
| Operating revenue (RMB) | 38,274,433.02 | 67,734,899.35 | -43.49% |
| Net profit attributable to shareholders of the listed company (RMB) | -798,946.17 | 554,162.06 | -244.17% |
| Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses (RMB) | -910,390.17 | 521,366.39 | -274.62% |
| Net cash flow arising from operating activities (RMB) | -8,901,256.74 | -3,362,971.19 | 164.68% |
| Basic earnings per share (RMB/Share) | -0.0014 | 0.0010 | -240.00% |
| Diluted earnings per share (RMB/Share) | -0.0014 | 0.0010 | -240.00% |
| Weighted average ROE | -5.74% | 3.43% | -9.17% |
| End of current period | End of last period | Increase/decrease in this report-end over that of last period-end | |
| Total assets (RMB) | 64,830,640.85 | 73,242,960.17 | -11.49% |
| Net assets attributable to shareholder of listed company (RMB) | 13,507,355.77 | 14,306,301.94 | -5.58% |
2. Difference of the net profit and net assets disclosed in financial report, under both foreign accountingrules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign accounting rules orChinese GAAP (Generally Accepted Accounting Principles) in the period.VI. Items and amounts of extraordinary profit (gains)/loss
√Applicable □ Not applicable
In RMB
| Item | Amount | Note |
| Other non-operating income and expenditure except for the aforementioned items | 148,577.00 | |
| Less: impact on income tax | 37,144.25 | |
| Impact on minority shareholders’ equity (post-tax) | -11.25 | |
| Total | 111,444.00 | -- |
Section III. Summary of Company BusinessI. Main businesses of the Company in the reporting period
Does the Company need to comply with the disclosure requirement of the special industryNoThe company is engaged in the main business for the bicycle business and lithium battery material business, including production,assembly, procurement, sales of bicycles and electric bicycles, etc.II. Major changes in main assets
1. Major changes in main assets
| Major assets | Note of major changes |
Section IV. Discussion and Analysis of the Business
I. IntroductionIn 2019, the international political and economic situation was complex and severe, the problem of unbalancedand inadequate domestic development remains a serious one, new downward pressure has emerged in theeconomy. Under the leadership of central government and governments at all levels, the whole nationstrengthened their confidence, overcame difficulties, and forged ahead, and achieved steady progress in economicand social development, and the economic fundamentals were continuously consolidated and developed. As asector in the traditional manufacturing field, the bicycle industry continued the dilemma of rise in labor cost,manufacturing costs, cost of capital, and material costs. In 2018, the relevant state ministry issued a new nationalstandard for electric bicycle safety technical specifications which was implemented on April 15, 2019.Implementation of the new national standard, has accelerated the industry’s reshuffle industry shocks. In addition,in the past two years, the bike sharing has been violently oscillating the bicycle industry and the upstream supplychain operations with capital advantages, due to the lack of profit model and capital chain problems, and itcontinued to have a big impact on the whole industry in 2019. At the same time, as a traditional manufacturingindustry, the bicycle industry also ushered in the “Made in China 2025” strategy, under the guidance of the basicprinciples of “Innovation Driven, Quality First, Green Development, Structure Optimization, and Talent Based”,took the important opportunity to speed up the transformation and upgrading, ushered in the developmentopportunity of the implementation of the new national standards for electric bicycles, and also faced with theimportant challenges of e-commerce development impacts on channels, channel integration and Internet+.China has the world’s largest production and marketing of electric bicycles, after years of development, electricbicycles have gradually become an important means of transportation for consumers on everyday short-distancetrips, at present, there are about 200 million bicycles in the entire society. Structural body, motor, power battery,and control system are the core components of electric bicycles, Shenzhen China Bicycle has been closelyfollowing up the research on their technological development, application development, and commercial value fora long period of time, and has determined the qualified suppliers for core components year by year. Thenon-public offering of shares for fund-raising investment project of Shenzhen China Bicycle being planned andprepared at present also covers the application researches on switched reluctance motors, super-capacitor batteries,new materials, electric car bus control systems, wearable devices, intelligent positioning lock systems, etc. As oneof the core components, electric bicycle power batteries have been mainly lead-acid batteries in the past decade ortwo, with the development and popularization of new energy technologies and new energy materials, it isexpected to be replaced by the lithium batteries in the future. According to the strategy guidelines of “Made inChina 2025” by the State Council and the spirit of standardization reform, the Ministry of Industry andInformation Technology, the Ministry of Public Security, the State Administration for Industry and Commerce,and the General Administration of Quality Supervision, Inspection and Quarantine have introduced a new nationalstandard for electric bicycles to comprehensively improve the safety performance of electric bicycles, adjust and
improve the speed limit, vehicle quality, pedaling and riding ability and other technical indicators. New standardsnot only are close to people’s livelihood, but also improve the application space for lithium battery energy storage,and lithium battery electric bicycles usher in a new stage of development.In this context, in 2019, due to the actual situation of having a weak economic foundation after reforming, on theone hand, the company adhered to taking the development of traditional business model as the principle,combined with the new national standard of electric bicycle safety technical specifications, carried out researchand development on new products, optimized and adjusted product structure and sales model transformation,actively expanded the e-commerce business model and realized the steady development operation of thee-commerce retail business according to the e-commerce transformation of business team and the cost controllablemode of external contact and cooperation and internal guidance; on the one hand, correspondingly carried out thetracking study on industrial projects and technology applications of upstream and downstream of industrial chainin the long-term process of electric bicycle business, started getting involved in the lithium battery materialsbusiness based on the extensive business consultation and business opportunity sifting, taking one step toexpanding the business of Lithium battery materials and rich the main business; on the other hand, strive topromote the selection work of the company's restructuring, planned the non-public offering of shares, and startedthe business upgrades and connection work of the offline sales platform for sports experience and R & D centerconstruction projects.In preparation for non-public offering of shares, in July 2016, the company initiated the planning and preparationfor non-public offering of shares and engaged securities companies, lawyers, accountants, and other intermediaryagencies to carry out various tasks. Since then, the nineteenth (temporary) meeting, the twenty-second (temporary)meeting, and the twenty-sixth (temporary) meeting of the ninth session of board of directors of the company, andthe second extraordinary shareholders’ meeting in 2017 reviewed and approved the relevant proposals onnon-public offering of shares. Combining the capital market with the actual situation of the company, fromJanuary to February, 2018, the fourth (temporary) meeting of the 10
th
session of board of directors and the firstextraordinary shareholders’ meeting of the company in 2018 reviewed and approved the Proposal on Adjustingthe Plan for the Company’s Non-Public Offering of A-Shares, and the Proposal on the Plan for the Company’sNon-Public Offering of A-Shares (three revised versions) and other relevant proposals. According to the aboveproposals, the total amount of funds raised in this non-public offering of shares did not exceed 750 million Yuan,and planned to invest 680 million Yuan for the “online and offline marketing network platform construction andupgrade project” and planned to invest 70 million Yuan for the “R&D center construction project after deductingthe issuance costs.Under the background that the traditional manufacturing industry at home was still sluggish, in accordance withthe guidelines of “Made in China 2025”, the company insisted on accelerating its professional transformation ande-commercial transformation, striving to expand its main business, strengthening the structural adjustment,intensifying the quality management, strengthening cost control, overcoming the industry shocks and industrypunches of share-bicycle’s fluctuation on the eve of the implementation of new national standards, strive toimproving the ability of traditional enterprises to adapt to economy new normal and participate in marketcompetition. Through various efforts, the company achieved operating revenue of 38,274,400 Yuan and net profit
of (1,090,500) Yuan in 2019, of which, the net profit attributable to shareholders of listed companies was(798,900) Yuan.
II. Main business analysis
See the “I-Introduction” in “Discussion and Analysis of the Business”Y-o-y changes of main financial data
In RMB
| Current period | Same period last year | y-o-y changes (+, -) | Reasons | |
| Operating revenue | 38,274,433.02 | 67,734,899.35 | -43.49% | Decline in corporate business revenue |
| Operating costs | 35,329,514.97 | 61,164,206.33 | -42.24% | Decline in corporate business cost |
| Sales expenses | 1,875,723.61 | 2,755,927.53 | -31.94% | Sales expenses drops for the decline of business income |
| Administration expenses | 2,359,383.84 | 3,309,720.24 | -28.71% | |
| Finance expenses | -60,452.99 | -260,975.81 | -76.84% | Corporate bank deposit interest income declined |
| Income tax expenses | -4,152.36 | 233,133.98 | -101.78% | The Company loss in the period by compare with same period last year |
| Net cash flow arising from operating activities | -8,901,256.74 | -3,362,971.19 | 164.68% | Payment of tax payable at the end of last year |
| Net cash flow arising from investment activities | -16,814.16 | |||
| 筹资活动产生的现金流量净额 | 16,600.82 | |||
| Net increase of cash and cash equivalent | -8,901,470.08 | -3,362,971.19 | 164.69% | Payment of tax payable at the end of last year |
| Monetary funds | 8,587,416.18 | 18,488,886.26 | -53.55% | Payment of tax payable at the end of last year |
| Advance payment | 5,139,379.30 | 13,799,753.60 | -62.76% | The payment paid in advance for lithium battery materials business last year, has been delivery in the period successively |
| Other current assets | 4,609,858.93 | 2,266,241.66 | 103.41% | The input to be deducted |
in the period increased
| in the period increased | ||||
| Tax payable | 120,561.17 | 6,297,096.28 | -98.09% | Payment of tax payable at the end of last year |
| Operating revenue | Operating cost | Gross profit ratio | Increase or decrease of operating revenue over same period of last year | Increase or decrease of operating cost over same period of last year | Increase or decrease of gross profit ratio over same period of last year | |
| According to industries | ||||||
| Sales of bicycles and accessories and fittings | 26,915,238.10 | 24,727,880.83 | 8.13% | -38.17% | -36.80% | -1.99% |
| Lithium battery materials | 11,359,194.92 | 10,601,634.14 | 6.67% | -53.06% | -51.89% | -2.27% |
| According to products | ||||||
| Sales of bicycles and accessories and fittings | 26,915,238.10 | 24,727,880.83 | 8.13% | -38.17% | -36.80% | -1.99% |
| Lithium battery materials | 11,359,194.92 | 10,601,634.14 | 6.67% | -53.06% | -51.89% | -2.27% |
| According to region | ||||||
| Domestic | 38,274,433.02 | 35,329,514.97 | 7.69% | -43.49% | -42.24% | -2.01% |
| End of the Period | End of same period of last year | Ratio changes | Notes of major changes | |||
| Amount | Ratio in total assets | Amount | Ratio in total assets | |||
| Monetary fund | 9,587,416.18 | 14.79% | 15,814,304.99 | 22.33% | -7.54% | |
| Account | 35,560,204.56 | 54.85% | 34,951,941.66 | 49.34% | 5.51% | |
receivable
| receivable | ||||||
| Inventory | 3,080,384.07 | 4.75% | 4,810,375.32 | 6.79% | -2.04% | |
| Fix assets | 3,333,489.56 | 5.14% | 3,756,571.22 | 5.30% | -0.16% | |
| Advance payment | 5,139,379.30 | 7.93% | 6,076,785.42 | 8.58% | -0.65% |
(2) Derivative investment
□ Applicable √ Not applicable
The Company has no derivatives investment in Period.VI. Sales of major assets and equity
1. Sales of major assets
□ Applicable √ Not applicable
The Company has no sales of major assets in Period.
2. Sales of major equity
□ Applicable √ Not applicable
VII. Analysis of main holding company and stock-jointly companies
√Applicable □ Not applicable
Particular about main subsidiaries and stock-jointly companies net profit over 10%
In RMB
| Company name | Type | Main business | Register capital | Total assets | Net Assets | Operating revenue | Operating profit | Net profit |
| Shenzhen Emmelle Industry Co., Ltd. | Subsidiary | Sales of bicycles and accessories | 2000000 | 22,003,356.72 | 7,942,168.75 | 13,212,224.34 | -975,809.62 | -971,707.26 |
X. Risks and countermeasures
The tough international economic situation: The domestic economy is at the structural adjustment stage in thecourse of development, structural problems and deep-seated conflicts are highlighted. The economic downturnpressure continues to increase, many unstable and uncertain factors exist, which affect and impact the traditionalmanufacturing industries and the social consumption structure demand. Since the domestic economy is at thestructural adjustment stage, coupled with a difficult situation of continuously rising labor cost, manufacturing cost,financing cost and material cost the bicycle industry as a conventional manufacturing field recorded a decline inthe market turnover. Due to the low entry threshold and numerous manufacturers, the competition in the market isextremely fierce. The bicycle sharing brands such as Mobike have obtained large amount of financing and rapidpromotion, but also further digested the user's demand, and squeezed the market space of traditional bicycleenterprises.Faced with the above problems, combine actual condition of financially insecure after reorganization, on the onehand, we adhere to traditional business model development, strengthen R&D of the products, and continue tooptimize the structure for products and sales mode. According to the electricity supplier transformation and innerlead of the cost controlling, the Company proactively develop the electricity supplier business model; on the onehand, correspondingly carry out the tracking study on industrial projects and technology applications of upstreamand downstream of industrial chain in the long-term process of electric bicycle business, start getting involved inthe lithium battery materials business based on the extensive business consultation and business opportunitysifting, and take it as an opportunity to gradually expand its main business; on the other hand, we strive topromote the selection for recombinant party, planning a private placement of shares, and carry out a sportexperience sales platform online and offline and the construction of R&D center, recently the business upgradestill in process.
Section V. Important Events
I. In the report period, the Company held annual shareholders’ general meeting andextraordinary shareholders’ general meeting
1. Shareholders’ General Meeting in the report period
| Session of meeting | Type | Ratio of investor participation | Date | Date of disclosure | Index of disclosure |
| First Extraordinary shareholders general meeting 2019 | Extraordinary shareholders general meeting | 12.09% | 2019-02-22 | 2019-02-22 | Notice of Resolution of First Extraordinary shareholders general meeting 2019 (No.: 2019005) |
| Annual General Meeting 2018 | Annual General Meeting | 12.51% | 2019-06-27 | 2019-06-27 | Notice of Resolution of Annual General Meeting 2018 (No.: 2019013) |
IV. Appointment and non-reappointment (dismissal) of CPAFinancial report has been audited or not
□ Yes √ No
Not been audited.V. Explanation from Board of Directors, Supervisory Committee for “Qualified Opinion”that issued by CPA
□ Applicable √ Not applicable
VI. Explanation from the Board for “Qualified Opinion” of last year’s
√Applicable □ Not applicable
On 11 May 2012, the largest shareholder and biggest creditor of the Company, Shenzhen Guosheng EnergyInvestment Development Co., Ltd. applied to Shenzhen Municipal Intermediate People's Court for reforming theCompany as the Company couldn’t pay off the matured debts and was seriously insolvent. On 12
th, Oct., 2012,Shenzhen Municipal Intermediate People's Court ruled to accept the application proposed by Guosheng Energyaccording to (2012) Shenzhen Intermediate Court Po Zi No. 30 civil ruling. On the last ten-day of October 2012,Shenzhen Municipal Intermediate People's Court ruled to reform the Company since 25
th
, Oct., 2012 according to(2012) Shenzhen Intermediate Court Po Zi No. 30-1 civil ruling, appointed King & Wood (Shenzhen) Mallesonsand Shenzhen ZhengYuan Liquidation Affairs Co., Ltd. as the custodians of the Company. On the same day,Shenzhen Municipal Intermediate People's Court made (2012) Shenzhen Intermediate Court Po Zi No. 30-1written decision, and approved the Company to manage property and business affairs by itself under thesupervision 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 theCompany. On 27 December 2013, the Civil Ruling Paper Shenzhen Intermediate People’s Court (2012) ShenZhong Fa Po Zi No. 30-10 ruled that the reorganization plan of CBC was completed and bankruptcy procedures ofCBC closed down.The Company has solved the debt problem by reforming, realized the net assets with positive value, the mainbusiness of bicycle is able to be maintained and realizes the stable development. The Company has set up theconditions for introducing the recombination party in the reforming plan, and expects to restore the abilities ofsustainable operation and sustained profitability by reorganization. The conditions of introducing therecombination party includes: the assessed value of net assets should be no less than 2 billion Yuan, the net assetsin the same year for implementing the major reorganization should be no less than 200 million Yuan. TheCompany doesn’t have the recombination party at the moment. The Company will continue to carry out varyworks proactively in order to promoted the reorganization works.
VII. Bankruptcy reorganization
□ Applicable √ Not applicable
No bankruptcy reorganization for the Company in Period.VIII. Lawsuits
Material lawsuits and arbitration
□ Applicable √ Not applicable
No significant lawsuits and arbitration occurred in the reporting period.Other lawsuits events
□ Applicable √ Not applicable
IX. Penalty and rectification
□ Applicable √ Not applicable
No penalty and rectification for the Company in Period.X. Integrity of the Company and its controlling shareholders and actual controllers
□ Applicable √ Not applicable
XI. Implementation of the Company’s stock incentive plan, employee stock ownership plan orother employee incentives
□ Applicable √ Not applicable
The Company has no equity incentive plan, employee stock ownership plans or other employee incentives in Period.XII. Major related transaction
1. Related transaction with routine operation concerned
□ Applicable √ Not applicable
The Company had no related transaction with routine operation concerned in Period.
2. Related transactions by assets acquisition and sold
□ Applicable √ Not applicable
No related transactions by assets acquisition and sold for the Company in Period.
3. Main related transactions of mutual investment outside
□ Applicable √ Not applicable
No main related transactions of mutual investment outside for the Company in Period.
4. Contact of related credit and debt
√Applicable □ Not applicable
Whether has non-operational contact of related liability and debts or not
√ Yes □ No
Claim receivable from related party:
| Related party | Relationship | Causes | Whether has non-business capital occupying or not | Balance at period-begin (10 thousand Yuan) | Current newly added (10 thousand Yuan) | Current recovery (10 thousand Yuan) | Interest rate | Current interest (10 thousand Yuan) | Ending balance (10 thousand Yuan) |
| Influence on business performance and financial status of the Company from related liabilities | N/A | ||||||||
| Related party | Relationship | Causes | Balance at period-begin (10 thousand Yuan) | Current newly added (10 thousand Yuan) | Current recovery (10 thousand Yuan) | Interest rate | Current interest (10 thousand Yuan) | Ending balance (10 thousand Yuan) |
| Shenzhen Guosheng Energy Investment Development Co., Ltd. | The largest shareholder | Subsidiary Emmelle loan | 650 | 0 | 0 | 0.00% | 0 | 650 |
| Influence on business performance and financial status of the Company from related debts | N/A | |||||||
XIII. Non-business capital occupying by controlling shareholders and its related parties
□ Applicable √ Not applicable
No non-business capital occupied by controlling shareholders and its related parties in Period.XIV. Significant contract and implementations
1. Trusteeship, contract and leasing
(1) Trusteeship
□ Applicable √ Not applicable
No trusteeship for the Company in Period.
(2) Contract
□ Applicable √ Not applicable
No contract for the Company in Period.
(3) Leasing
□ Applicable √ Not applicable
No leasing for the Company in Period.
2. Major guarantees
□ Applicable √ Not applicable
No guarantee for the Company in Period.
3. Other material contracts
□ Applicable √ Not applicable
No other material contracts for the Company in Period.XV. Social responsibility
1. Major environmental protection
The listed Company and its subsidiary whether belong to the key sewage units released from environmental protection departmentNot applicableNil
2. Fulfill the precise social responsibility for poverty alleviation
(1) Targeted poverty alleviation
Nil
(2) Summary of semi-annual precision poverty alleviation
Nil
(3) Accuracy of poverty alleviation
| Target | Measurement units | Numbers/progress |
| I. general condition | —— | —— |
| II. Implemented by detail | —— | —— |
| 1. Industrial development poverty | —— | —— |
| 2.Transfer employment | —— | —— |
| 3. Anti-poverty by relocating in other places | —— | —— |
| 4. Education poverty | —— | —— |
| 5. Health poverty alleviation | —— | —— |
| 6. Ecological conservation | —— | —— |
| 7. Fallback protection | —— | —— |
| 8. Social poverty alleviation | —— | —— |
| 9. Other | —— | —— |
| III. Awards (content and level) | —— | —— |
(amended), the Plan on Non-public Issue of A shares in 2016 (Second Amended) and Plan on Non-public Issue ofA shares in 2016 (Third Amended) from February 2017 to February 2018. and on 13 Feb. 2018, the Plan onNon-public Issue of A Shares (Third Amended) was deliberated and approved by First Extraordinary ShareholdersGeneral Meeting of 2018. According to the three revised drafts, the number of non-public offering of sharesshould not exceed 110,269,586 shares, and the total amount of funds raised should not exceed 750 million Yuan.The total amount of raised funds for this non-public offering should not exceed RMB 750 million, will be used forthe following projects after deducting the issuance expenses: 1. RMB 680 million of funds for “online and offlinemarketing network platform construction and upgrading project”; 2. RMB 70 million of funds for “R & D centerconstruction project”. The issuing objects of this non-public offering include four specific investors which areRuian Information, Zhisheng High-tech, Wansheng Industry and Beier High-tech. The subscription amount ofRuian Information does not exceed 250 million Yuan, and the number of subscribed shares does not exceed36,756,529 shares; the subscription amount of Zhisheng High-tech does not exceed 200 million Yuan, and thenumber of subscribed shares does not exceed 29,405,223 shares; the subscription amount of Wansheng Industryand Beier High-tech respectively 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 of directors of thecompany.XVII. Major event of the subsidiaries
□ Applicable √ Not applicable
Section VI. Changes in Shares and Shareholders
I. Changes in Share Capital
1. Changes in Share Capital
In Share
| Before the Change | Increase/Decrease in the Change (+, -) | After the Change | |||||||
| Amount | Proportion | New shares issued | Bonus shares | Capitalization of public reserve | Others | Subtotal | Amount | Proportion | |
| I. Restricted shares | 3,957 | 0.00% | 0 | 3,957 | 0.00% | ||||
| 1. State-owned shares | 0 | 0.00% | 0 | 0 | 0.00% | ||||
| 2. State-owned legal person’s shares | 0 | 0.00% | 0 | 0 | 0.00% | ||||
| 3. Other domestic shares | 3,957 | 0.00% | 0 | 3,957 | 0.00% | ||||
| Including: Domestic legal person’s shares | 0 | 0.00% | 0 | 0 | 0.00% | ||||
| Domestic natural person’s shares | 3,957 | 0.00% | 0 | 3,957 | 0.00% | ||||
| 4. Foreign shares | 0 | 0.00% | 0 | 0 | 0.00% | ||||
| Including: Foreign legal person’s shares | 0 | 0.00% | 0 | 0 | 0.00% | ||||
| Foreign natural person’s shares | 0 | 0.00% | 0 | 0 | 0.00% | ||||
| II. Unrestricted shares | 551,343,990 | 100.00% | 0 | 551,343,990 | 100.00% | ||||
| 1. RMB Ordinary shares | 302,981,008 | 54.95% | 0 | 302,981,008 | 54.95% | ||||
| 2. Domestically listed foreign shares | 248,362,982 | 45.05% | 0 | 248,362,982 | 45.05% | ||||
| 3. Overseas listed foreign shares | 0 | 0.00% | 0 | 0 | 0.00% | ||||
| 4. Others | 0 | 0.00% | 0 | 0 | 0.00% | ||||
| III. Total shares | 551,347,947 | 100.00% | 0 | 551,347,947 | 100.00% | ||||
□ Applicable √ Not applicable
Approval of share changed
□ Applicable √ Not applicable
Ownership transfer of share changes
□ Applicable √ Not applicable
Progress of shares buy-back
□Applicable √Not applicable
Implementation progress of the reduction of repurchases shares by centralized bidding
□Applicable √Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to commonshareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose or need to disclosed under requirement from security regulators
□ Applicable √ Not applicable
2. Changes of restricted shares
□ Applicable √ Not applicable
II. Securities issuance and listing
□ Applicable √ Not applicable
III. Number of shares and shares held
In Share
| Total common shareholders at period-end | 49,822 | Total preference shareholders with voting rights recovered at end of reporting period (if applicable) (note 8) | 0 | |||||||
| Particulars about common shares held above 5% by shareholders or top ten common shareholders | ||||||||||
| Shareholders | Nature of shareholder | Proportion of shares held | Number of common shares held at period-end | Changes in reporting period | Amount of restricted common shares held | Amount of un-restricted common shares held | Number of share pledged/frozen | |||
| State of share | Amount | |||||||||
| Shenzhen | Domestic | 11.52% | 63,508,747 | 0 | 0 | 63,508,747 | - | - | ||
GuoshengEnergyInvestmentDevelopmentCo., Ltd.
| Guosheng Energy Investment Development Co., Ltd. | non-State-owned legal person | |||||||
| UOB Koy Hian (Hong Kong) Co., Ltd. | Foreign legal person | 2.89% | 15,907,850 | 0 | 0 | 15,907,850 | - | - |
| Guosen Securities (Hong Kong) brokerage Co., Ltd. | Foreign legal person | 2.52% | 13,909,425 | 0 | 0 | 13,909,425 | - | - |
| Shenwan Hongyuan Securities (Hong Kong) Co., Ltd. | Foreign legal person | 1.20% | 6,631,116 | 0 | 0 | 6,631,116 | - | - |
| Li Huili | Domestic nature person | 0.71% | 3,891,124 | 0 | 0 | 3,891,124 | - | - |
| CMS Hong Kong Co., Ltd | State-owned legal person | 0.57% | 3,148,752 | 91,400 | 0 | 3,148,752 | - | - |
| Xu Hongbo | Domestic nature person | 0.50% | 2,744,419 | -393,000 | 0 | 2,744,419 | - | - |
| Ge Zhiqiong | Domestic nature person | 0.49% | 2,720,552 | 523,736 | 0 | 2,720,552 | - | - |
| Special Account for Property Disposal of Bankrupt Enterprise of CBC | Domestic non-State-owned legal person | 0.47% | 2,602,402 | 0 | 0 | 2,602,402 | - | - |
| Zhuorun Technology Co., Ltd. | Foreign legal person | 0.36% | 2,000,000 | 0 | 0 | 2,000,000 | - | - |
| Strategy investors or general corporation comes top 10 common stock shareholders due to rights issue (if applicable) (see note 3) | N/A | |||||||
| Explanation on associated relationship among the aforesaid | Li Huili, spouse of the Ji Hanfei, the actual controller of the Company- Shenzhen Guosheng Energy Investment Development Co., Ltd., holding B-share of the Company on behalf of | |||||||
shareholders
| shareholders | Shenzhen Guosheng Energy Investment Development Co., Ltd., beyond that, the Company has no idea of whether other circulated shareholders belong to concerted action persons ruled in the Administration Norms for Information Disclosure of Change on Shareholding of Shareholders of Listed Companies. | ||
| Particular about top ten common shareholders with un-restrict shares held | |||
| Shareholders | Amount of un-restrict common shares held at period-end | Type of shares | |
| Type | Amount | ||
| Shenzhen Guosheng Energy Investment Development Co., Ltd. | 63,508,747 | RMB common shares | 63,508,747 |
| UOB Koy Hian (Hong Kong) Co., Ltd. | 15,907,850 | Domestically listed foreign shares | 15,907,850 |
| Guosen Securities (Hong Kong) brokerage Co., Ltd. | 13,909,425 | Domestically listed foreign shares | 13,909,425 |
| Shenwan Hongyuan Securities (Hong Kong) Co., Ltd. | 6,631,116 | Domestically listed foreign shares | 6,631,116 |
| Li Huili | 3,891,124 | Domestically listed foreign shares | 3,891,124 |
| CMS Hong Kong Co., Ltd | 3,148,752 | Domestically listed foreign shares | 3,148,752 |
| Xu Hongbo | 2,744,419 | Domestically listed foreign shares | 2,744,419 |
| Ge Zhiqiong | 2,720,552 | RMB common shares | 233,900 |
| Domestically listed foreign shares | 2,486,652 | ||
| Special Account for Property Disposal of Bankrupt Enterprise of CBC | 2,602,402 | RMB common shares | 1,383,313 |
| Domestically listed foreign shares | 1,219,089 | ||
| Zhuorun Technology Co., Ltd. | 2,000,000 | RMB common shares | 2,000,000 |
| Expiation on associated relationship | Li Huili, spouse of the Ji Hanfei, the actual controller of he Company- Shenzhen Guosheng | ||
or consistent actors within the top10 un-restrict shareholders andbetween top 10 un-restrictshareholders and top 10shareholders
| or consistent actors within the top 10 un-restrict shareholders and between top 10 un-restrict shareholders and top 10 shareholders | Energy Investment Development Co., Ltd., holding B-share of the Company on behalf of Shenzhen Guosheng Energy Investment Development Co., Ltd., beyond that, the Company has no idea of whether other circulated shareholders belong to concerted action persons ruled in the Administration Norms for Information Disclosure of Change on Shareholding of Shareholders of Listed Companies. |
| Explanation on top 10 shareholders involving margin business (if applicable) (see note 4) | N/A |
Section VII. Preferred Stock
□ Applicable √ Not applicable
The Company had no preferred stock in the reporting.
Section VIII. Directors, Supervisors and Senior Executives
I. Changes of shares held by directors, supervisors and senior executives
□Applicable √ Not applicable
Found more in annual report 2018 for the changes of shares held by directors, supervisors and senior executivesII. Resignation and dismissal of directors, supervisors and senior executives
□Applicable √ Not applicable
No changes of directors, supervisors and senior executives, found more details in Annual Report 2018.
Section IX. Corporate Bonds
Whether the Company has corporate bonds that issuance publicly and listed on stock exchange and without due on the date whensemi-annual report approved for released or fail to cash in full on dueNo
Section X. Financial ReportI. Audit reportsWhether the semi-annual report was audited or not
□ Yes √ No
The financial report of this semi-annual report was unaudited.II. Financial statementsUnits in Notes of Financial Statements is RMB
1. Consolidated Balance Sheet
Prepared by Shenzhen China Bicycle Company (Holdings) Limited
2019-06-30
In RMB
| Item | 2019-6-30 | 2018-12-31 |
| Current assets: | ||
| Monetary funds | 9,587,416.18 | 18,488,886.26 |
| Settlement provisions | ||
| Capital lent | ||
| Tradable financial assets | ||
| Financial assets measured by fair value and with variation reckoned into current gains/losses | ||
| Derivative financial assets | ||
| Note receivable | 180,000.00 | |
| Account receivable | 35,560,204.56 | 29,007,509.02 |
| Receivable financing | ||
| Accounts paid in advance | 5,139,379.30 | 13,799,753.60 |
| Insurance receivable | ||
| Reinsurance receivables | ||
| Contract reserve of reinsurance receivable | ||
| Other account receivable | 765,634.71 | 844,537.19 |
Including: Interest receivable
| Including: Interest receivable | ||
| Dividend receivable | ||
| Buying back the sale of financial assets | ||
| Inventories | 3,080,384.07 | 2,386,603.94 |
| Contractual assets | ||
| Assets held for sale | ||
| Non-current asset due within one year | ||
| Other current assets | 4,609,858.93 | 2,266,241.66 |
| Total current assets | 58,922,877.75 | 66,793,531.67 |
| Non-current assets: | ||
| Loans and payments on behalf | ||
| Debt investment | ||
| Finance asset available for sales | ||
| Other debt investment | ||
| Held-to-maturity investment | ||
| Long-term account receivable | ||
| Long-term equity investment | ||
| Investment in other equity instrument | ||
| Other non-current financial assets | ||
| Investment real estate | ||
| Fixed assets | 3,333,489.56 | 3,502,807.32 |
| Construction in progress | ||
| Productive biological asset | ||
| Oil and gas asset | ||
| Right-of-use assets | ||
| Intangible assets | 1,129,500.00 | 1,506,000.00 |
| Expense on Research and Development | ||
| Goodwill | ||
| Long-term expenses to be apportioned | ||
| Deferred income tax asset | 1,044,773.54 | 1,040,621.18 |
Other non-current asset
| Other non-current asset | 400,000.00 | 400,000.00 |
| Total non-current asset | 5,907,763.10 | 6,449,428.50 |
| Total assets | 64,830,640.85 | 73,242,960.17 |
| Current liabilities: | ||
| Short-term loans | ||
| Loan from central bank | ||
| Capital borrowed | ||
| Transactional financial liability | ||
| Financial liability measured by fair value and with variation reckoned into current gains/losses | ||
| Derivative financial liability | ||
| Note payable | 2,000,000.00 | 2,000,000.00 |
| Account payable | 7,076,229.24 | 9,979,010.69 |
| Accounts received in advance | 1,620,392.20 | 405,779.88 |
| Selling financial asset of repurchase | ||
| Absorbing deposit and interbank deposit | ||
| Security trading of agency | ||
| Security sales of agency | ||
| Wage payable | 539,521.95 | 435,736.16 |
| Taxes payable | 120,561.17 | 6,297,096.28 |
| Other account payable | 37,583,929.90 | 37,144,872.42 |
| Including: Interest payable | ||
| Dividend payable | ||
| Commission charge and commission payable | ||
| Reinsurance payable | ||
| Contractual liability | ||
| Liability held for sale | ||
| Non-current liabilities due within one year | ||
| Other current liabilities | ||
| Total current liabilities | 48,940,634.46 | 56,262,495.43 |
| Non-current liabilities: |
Insurance contract reserve
| Insurance contract reserve | ||
| Long-term loans | ||
| Bonds payable | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Lease liability | ||
| Long-term account payable | ||
| Long-term wages payable | ||
| Accrual liability | ||
| Deferred income | ||
| Deferred income tax liabilities | ||
| Other non-current liabilities | ||
| Total non-current liabilities | ||
| Total liabilities | 48,940,634.46 | 56,262,495.43 |
| 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 | -1,198,348,116.09 | -1,197,549,169.92 |
| Total owner’ s equity attributable to parent company | 13,507,355.77 | 14,306,301.94 |
| Minority interests | 2,382,650.62 | 2,674,162.80 |
| Total owner’ s equity | 15,890,006.39 | 16,980,464.74 |
| Total liabilities and owner’ s equity | 64,830,640.85 | 73,242,960.17 |
Person in charge of Accounting Works: Sun LonglongPerson in charge of Accounting Institution: Zhong Xiaojin
2. Balance Sheet of Parent Company
In RMB
| Item | 2019-6-30 | 2018-12-31 |
| Current assets: | ||
| Monetary funds | 4,164,849.07 | 8,889,572.73 |
| Transactional financial assets | ||
| Financial assets measured by fair value and with variation reckoned into current gains/losses | ||
| Derivative financial assets | ||
| Note receivable | 180,000.00 | |
| Account receivable | 25,962,772.24 | 12,827,954.16 |
| Receivable financing | ||
| Accounts paid in advance | 5,138,078.18 | 13,798,452.48 |
| Other account receivable | 380,925.78 | 380,925.78 |
| Including: Interest receivable | ||
| Dividend receivable | ||
| Inventories | 871,653.54 | |
| Contractual assets | ||
| Assets held for sale | ||
| Non-current assets maturing within one year | ||
| Other current assets | 4,080,909.10 | 2,130,677.11 |
| Total current assets | 40,779,187.91 | 38,027,582.26 |
| Non-current assets: | ||
| Debt investment | ||
| Available-for-sale financial assets | ||
| Other debt investment | ||
| Held-to-maturity investments | ||
| Long-term receivables | ||
| Long-term equity investments | 10,379.73 | 10,379.73 |
Investment in other equityinstrument
| Investment in other equity instrument | ||
| Other non-current financial assets | ||
| Investment real estate | ||
| Fixed assets | 2,891,083.46 | 2,995,407.48 |
| Construction in progress | ||
| Productive biological assets | ||
| Oil and natural gas assets | ||
| Right-of-use assets | ||
| Intangible assets | 1,129,500.00 | 1,506,000.00 |
| 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 | 4,430,963.19 | 4,911,787.21 |
| Total assets | 45,210,151.10 | 42,939,369.47 |
| Current liabilities | ||
| Short-term borrowings | ||
| Transactional financial liability | ||
| Financial liability measured by fair value and with variation reckoned into current gains/losses | ||
| Derivative financial liability | ||
| Notes payable | ||
| Account payable | 5,722,478.65 | |
| Accounts received in advance | 2,016,142.00 | 327,632.18 |
| Contractual liability | ||
| Wage payable | 394,245.36 | 151,598.60 |
| Taxes payable | 120,548.17 | 5,416,117.27 |
| Other accounts payable | 28,998,519.55 | 28,967,052.96 |
| Including: Interest payable | ||
| Dividend payable | ||
| Liability held for sale | ||
| Non-current liabilities due within |
one year
| one year | ||
| Other current liabilities | ||
| Total current liabilities | 37,251,933.73 | 34,862,401.01 |
| Non-current liabilities: | ||
| Long-term loans | ||
| Bonds payable | ||
| Including: preferred stock | ||
| Perpetual capital securities | ||
| Lease liability | ||
| Long-term account payable | ||
| Long term employee compensation payable | ||
| Accrued liabilities | ||
| Deferred income | ||
| Deferred income tax liabilities | ||
| Other non-current liabilities | ||
| Total non-current liabilities | ||
| Total liabilities | 37,251,933.73 | 34,862,401.01 |
| Owners’ 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 | ||
| Special reserve | ||
| Surplus reserve | 32,673,227.01 | 32,673,227.01 |
| Retained profit | -1,203,897,254.49 | -1,203,778,503.40 |
| Total owner’s equity | 7,958,217.37 | 8,076,968.46 |
| Total liabilities and owner’s equity | 45,210,151.10 | 42,939,369.47 |
3. Consolidated Profit Statement
In RMB
| Item | Semi-annual of 2019 | Semi-annual of 2018 |
| I. Total operating income | 38,274,433.02 | 67,734,899.35 |
| Including: Operating income | 38,274,433.02 | 67,734,899.35 |
| Interest income | ||
| Insurance gained | ||
| Commission charge and commission income | ||
| II. Total operating cost | 39,540,757.20 | 67,044,616.04 |
| Including: Operating cost | 35,329,514.97 | 61,164,206.33 |
| 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 | ||
| Tax and extras | 36,587.77 | 75,737.75 |
| Sales expense | 1,875,723.61 | 2,755,927.53 |
| Administrative expense | 2,359,383.84 | 3,309,720.24 |
| R&D expense | ||
| Financial expense | -60,452.99 | -260,975.81 |
| Including: Interest expenses | ||
| Interest income | -71,134.40 | -272,685.93 |
| Add: other income | ||
| Investment income (Loss is listed with “-”) | ||
| Including: Investment income on affiliated company and joint venture | ||
| The termination of income recognition for financial assets measured |
by amortized cost(Loss is listed with “-”)
| by amortized cost(Loss is listed with “-”) | ||
| Exchange income (Loss is listed with “-”) | ||
| Net exposure hedging income (Loss is listed with “-”) | ||
| Income from change of fair value (Loss is listed with “-”) | ||
| Loss of credit impairment (Loss is listed with “-”) | -17,479.82 | -7,219.20 |
| Losses of devaluation of asset (Loss is listed with “-”) | 40,616.29 | |
| Income from assets disposal (Loss is listed with “-”) | ||
| III. Operating profit (Loss is listed with “-”) | -1,243,187.71 | 683,064.11 |
| Add: Non-operating income | 148,627.00 | 72,126.28 |
| Less: Non-operating expense | 50.00 | 30,140.00 |
| IV. Total profit (Loss is listed with “-”) | -1,094,610.71 | 725,050.39 |
| Less: Income tax expense | -4,152.36 | 233,133.98 |
| V. Net profit (Net loss is listed with “-”) | -1,090,458.35 | 491,916.41 |
| (i) Classify by business continuity | ||
| 1.continuous operating net profit (net loss listed with ‘-”) | -1,090,458.35 | 491,916.41 |
| 2.termination of net profit (net loss listed with ‘-”) | ||
| (ii) Classify by ownership | ||
| 1.Net profit attributable to owner’s of parent company | -798,946.17 | 554,162.06 |
| 2.Minority shareholders’ gains and losses | -291,512.18 | -62,245.65 |
| 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 of the defined
benefit plans that re-measured
| 1.Changes of the defined benefit plans that re-measured | ||
| 2.Other comprehensive income under equity method that cannot be transfer to gain/loss | ||
| 3.Change of fair value of investment in other equity instrument | ||
| 4.Fair value change of enterprise's credit risk | ||
| 5. Other | ||
| (ii) Other comprehensive income items which will be reclassified subsequently to profit or loss | ||
| 1.Other comprehensive income under equity method that can transfer to gain/loss | ||
| 2.Change of fair value of other debt investment | ||
| 3.gain/loss of fair value changes for available-for-sale financial assets | ||
| 4.Amount of financial assets re-classify to other comprehensive income | ||
| 5.Gain/loss of held-to-maturity investments that re-classify to available-for-sale financial asset | ||
| 6.Credit impairment provision for other debt investment | ||
| 7.Cash flow hedging reserve | ||
| 8.Translation differences arising on translation of foreign currency financial statements | ||
| 9.Other | ||
| Net after-tax of other comprehensive income attributable to minority shareholders | ||
| VII. Total comprehensive income | -1,090,458.35 | 491,916.41 |
Total comprehensive incomeattributable to owners of parent Company
| Total comprehensive income attributable to owners of parent Company | -798,946.17 | 554,162.06 |
| Total comprehensive income attributable to minority shareholders | -291,512.18 | -62,245.65 |
| VIII. Earnings per share: | ||
| (i) Basic earnings per share | -0.0014 | 0.0010 |
| (ii) Diluted earnings per share | -0.0014 | 0.0010 |
| Item | Semi-annual of 2019 | Semi-annual of 2018 |
| I. Operating income | 25,404,378.84 | 24,023,518.68 |
| Less: Operating cost | 23,670,022.62 | 20,846,218.08 |
| Taxes and surcharge | 14,194.90 | 13,741.20 |
| Sales expenses | 240,105.59 | 276,827.75 |
| Administration expenses | 1,721,493.88 | 2,107,312.50 |
| R&D expenses | ||
| Financial expenses | -13,583.08 | -83,003.31 |
| Including: interest expenses | ||
| Interest income | -18,497.84 | -87,908.66 |
| Add: other income | ||
| Investment income (Loss is listed with “-”) | ||
| Including: Investment income on affiliated Company and joint venture | ||
| The termination of income recognition for financial assets measured by amortized cost (Loss is listed with “-”) |
Net exposure hedging income(Loss is listed with “-”)
| Net exposure hedging income (Loss is listed with “-”) | ||
| Changing income of fair value (Loss is listed with “-”) | ||
| Loss of credit impairment (Loss is listed with “-”) | -39,523.02 | |
| Losses of devaluation of asset (Loss is listed with “-”) | 2,008.04 | |
| Income on disposal of assets (Loss is listed with “-”) | ||
| II. Operating profit (Loss is listed with “-”) | -267,378.09 | 864,430.50 |
| Add: Non-operating income | 148,627.00 | 68,105.41 |
| Less: Non-operating expense | ||
| III. Total Profit (Loss is listed with “-”) | -118,751.09 | 932,535.91 |
| Less: Income tax | 233,133.98 | |
| IV. Net profit (Net loss is listed with “-”) | -118,751.09 | 699,401.93 |
| (i)continuous operating net profit (net loss listed with ‘-”) | -118,751.09 | 699,401.93 |
| (ii) termination of net profit (net loss 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 of the defined benefit plans that re-measured | ||
| 2.Other comprehensive income under equity method that cannot be transfer to gain/loss | ||
| 3.Change of fair value of investment in other equity instrument | ||
| 4.Fair value change of enterprise's credit risk | ||
| 5. Other | ||
| (II) Other comprehensive income items which will be reclassified |
subsequently to profit or loss
| subsequently to profit or loss | ||
| 1.Other comprehensive income under equity method that can transfer to gain/loss | ||
| 2.Change of fair value of other debt investment | ||
| 3.gain/loss of fair value changes for available-for-sale financial assets | ||
| 4.Amount of financial assets re-classify to other comprehensive income | ||
| 5.Gain/loss of held-to-maturity investments that re-classify to available-for-sale financial asset | ||
| 6.Credit impairment provision for other debt investment | ||
| 7.Cash flow hedging reserve | ||
| 8.Translation differences arising on translation of foreign currency financial statements | ||
| 9.Other | ||
| VI. Total comprehensive income | -118,751.09 | 699,401.93 |
| VII. Earnings per share: | ||
| (i) Basic earnings per share | -0.0002 | 0.0013 |
| (ii) Diluted earnings per share | -0.0002 | 0.0013 |
| Item | Semi-annual of 2019 | Semi-annual of 2018 |
| I. Cash flows arising from operating activities: | ||
| Cash received from selling commodities and providing labor services | 8,643,245.76 | 15,792,549.13 |
| Net increase of customer deposit |
and interbank 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 | ||
| Cash received from interest, commission charge and commission | ||
| Net increase of capital borrowed | ||
| Net increase of returned business capital | ||
| Net cash received by agents in sale and purchase of securities | ||
| Write-back of tax received | 57,448.96 | 5,306.26 |
| Other cash received concerning operating activities | 3,906,596.03 | 2,529,012.36 |
| Subtotal of cash inflow arising from operating activities | 12,607,290.75 | 18,326,867.75 |
| Cash paid for purchasing commodities and receiving labor service | 7,104,453.81 | 12,448,466.83 |
| Net increase of customer loans and advances | ||
| Net increase of deposits in central bank and interbank | ||
| Cash paid for original insurance contract compensation | ||
| Net increase of financial assets held for transaction purposes | ||
| Net increase of capital lent | ||
| Cash paid for interest, commission charge and commission | ||
| Cash paid for bonus of guarantee |
slip
| slip | ||
| Cash paid to/for staff and workers | 3,076,592.48 | 3,190,388.60 |
| Taxes paid | 5,517,601.44 | 1,336,400.97 |
| Other cash paid concerning operating activities | 5,809,899.76 | 4,714,582.54 |
| Subtotal of cash outflow arising from operating activities | 21,508,547.49 | 21,689,838.94 |
| Net cash flows arising from operating activities | -8,901,256.74 | -3,362,971.19 |
| 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 | 16,814.16 | |
| 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 | 16,814.16 | |
| Net cash flows arising from investing activities | -16,814.16 | |
| III. Cash flows arising from financing activities |
Cash received from absorbinginvestment
| 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 | 2,016,600.82 | |
| Subtotal of cash inflow from financing activities | 2,016,600.82 | |
| 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 | 2,000,000.00 | |
| Subtotal of cash outflow from financing activities | 2,000,000.00 | |
| Net cash flows arising from financing activities | 16,600.82 | |
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | ||
| V. Net increase of cash and cash equivalents | -8,901,470.08 | -3,362,971.19 |
| Add: Balance of cash and cash equivalents at the period -begin | 16,488,886.26 | 19,177,276.18 |
| VI. Balance of cash and cash equivalents at the period -end | 7,587,416.18 | 15,814,304.99 |
| Item | Semi-annual of 2019 | Semi-annual of 2018 |
| I. Cash flows arising from operating activities: |
Cash received from sellingcommodities and providing laborservices
| Cash received from selling commodities and providing labor services | 2,949,631.00 | 6,974.00 |
| Write-back of tax received | 57,448.96 | 5,306.26 |
| Other cash received concerning operating activities | 4,242,368.68 | 1,963,467.24 |
| Subtotal of cash inflow arising from operating activities | 7,249,448.64 | 1,975,747.50 |
| Cash paid for purchasing commodities and receiving labor service | 721,217.50 | 17,278.04 |
| Cash paid to/for staff and workers | 1,498,002.56 | 1,237,282.20 |
| Taxes paid | 5,319,908.09 | 733,058.03 |
| Other cash paid concerning operating activities | 4,418,229.99 | 4,794,142.84 |
| Subtotal of cash outflow arising from operating activities | 11,957,358.14 | 6,781,761.11 |
| Net cash flows arising from operating activities | -4,707,909.50 | -4,806,013.61 |
| 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 | 16,814.16 | |
| Cash paid for investment | ||
| Net cash received from |
subsidiaries and other units obtained
| subsidiaries and other units obtained | ||
| Other cash paid concerning investing activities | ||
| Subtotal of cash outflow from investing activities | 16,814.16 | |
| Net cash flows arising from investing activities | -16,814.16 | |
| 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 | -4,724,723.66 | -4,806,013.61 |
| Add: Balance of cash and cash equivalents at the period -begin | 8,889,572.73 | 15,398,405.80 |
| VI. Balance of cash and cash equivalents at the period -end | 4,164,849.07 | 10,592,392.19 |
In RMB
| Item | Semi-annual of 2019 | ||||||||||||||
| 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 | Other | Subtotal | |||||
| 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 | -1,197,549,169.92 | 14,306,301.94 | 2,674,162.80 | 16,980,464.74 | ||||||||
| 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 | -1,197,549,169.92 | 14,306,301.94 | 2,674,162.80 | 16,980,464.74 | ||||||||
| III. Increase/ Decrease in this year (Decrease is listed with “-”) | -798,946.17 | -798,946.17 | -291,512.18 | -1,090,458.35 | |||||||||||
| (i) Total comprehensive income | -798,946.17 | -798,946.17 | -291,512.18 | -1,090,458.35 | |||||||||||
| (ii) Owners’ devoted and decreased capital | |||||||||||||||
| 1.Common shares invested by shareholders | |||||||||||||||
| 2. Capital invested by holders of other equity | |||||||||||||||
instruments
| 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．Carry-over retained earnings from the defined benefit plans | |||||||||||||||
| 5．Carry-over retained earnings from other comprehensive income | |||||||||||||||
| 6. Other | |||||||||||||||
| (V) Reasonable reserve | |||||||||||||||
| 1. Withdrawal |
in the reportperiod
| 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 | -1,198,348,116.09 | 13,507,355.77 | 2,382,650.62 | 15,890,006.39 |
| Item | Semi-annual of 2018 | ||||||||||||||
| 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 | Other | Subtotal | |||||
| 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 | 15,898,270.85 | 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 | 15,898,270.85 | 2,962,699.67 | 18,860,970.52 | ||||||||
| III. Increase/ Decrease in this year (Decrease is listed with “-”) | 554,162.06 | 554,162.06 | -62,245.65 | 491,916.41 | |||||||||||
| (i) Total comprehensive | 554,16 | 554,16 | -62,245 | 491,916 | |||||||||||
income
| income | 2.06 | 2.06 | .65 | .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．Carry-over retained |
earningsfrom thedefinedbenefit plans
| earnings from the defined benefit plans | |||||||||||||||
| 5．Carry-over retained earnings from other comprehensive income | |||||||||||||||
| 6. 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 | 16,452,432.91 | 2,900,454.02 | 19,352,886.93 |
| Item | Semi-annual of 2019 | |||||||||||
| Share capital | Other equity instrument | Capital public reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Retained profit | Other | 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 | -1,203,778,503.40 | 8,076,968.46 | |||||||
| Add: Changes of accounting policy | ||||||||||||
| Error correction of the last period | ||||||||||||
| Other | ||||||||||||
| II. Balance at the beginning of this | 551,34 | 627,834, | 32,673,2 | -1,203, | 8,076,968. | |||||||
year
| year | 7,947.00 | 297.85 | 27.01 | 778,503.40 | 46 | |||||||
| III. Increase/ Decrease in this year (Decrease is listed with “-”) | -118,751.09 | -118,751.09 | ||||||||||
| (i) Total comprehensive income | -118,751.09 | -118,751.09 | ||||||||||
| (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．Carry-overretained earningsfrom the definedbenefit plans
| 4．Carry-over retained earnings from the defined benefit plans | ||||||||||||
| 5．Carry-over retained earnings from other comprehensive income | ||||||||||||
| 6. 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 | -1,203,897,254.49 | 7,958,217.37 |
| Item | Semi-annual of 2018 | |||||||||||
| Share capital | Other equity instrument | Capital public reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Retained profit | Other | 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 | -1,202,859,787.18 | 8,995,684.68 | |||||||
| 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 | 699,401.93 | 699,401.93 | ||||||||||
year (Decreaseis listed with“-”)
| year (Decrease is listed with “-”) | ||||||||||||
| (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．Carry-over retained |
earnings fromthe definedbenefit plans
| earnings from the defined benefit plans | ||||||||||||
| 5．Carry-over retained earnings from other comprehensive income | ||||||||||||
| 6. 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 |
equipment, mechanical products, toys, electric toys, electronic products, new energy equipment and storageequipment (lithium batteries, batteries, etc.), household appliances and spare parts, and electronic components;wholesale, retail, import and export and related supporting business of above-mentioned products (excludingcommodities subject to state trade management, handling the application according to the relevant nationalregulations for commodities involving quotas, license management and other special provisions and management,);fine chemical products (excluding dangerous goods), wholesale and retail of carbon fiber composite materials;technology development of computer software, transfer of self-developed technological achievements, andproviding relevant technical information consultation; own property leasing; property management. (The aboveprojects do not involve special administrative measures for the implementation access of national regulations, andthose involving restricted projects and pre-existing administrative licenses must obtain the pre-existingadministrative licensing documents before operation.)
3. Release of the financial report
The Financial Report released on 28 August 2019 after approved by 15
th session of 10
th
BOD of the CompanyOne subsidiary included in consolidate scope in the period, found more in Note VIII-1 and Note IX-1
IV. Compilation Basis of Financial Statement
1. Compilation Basis
The financial statement is prepared based on continuing operation assumptions, and according to actualoccurrence, in line with relevant accounting rules and follow important accounting policy and estimation.
2. Going concern
On 11 May 2012, the largest shareholder and biggest creditor of the Company, Shenzhen Guosheng EnergyInvestment Development Co., Ltd. applied to Shenzhen Municipal Intermediate People's Court for reforming theCompany as the Company couldn’t pay off the matured debts and was seriously insolvent. On 12 October 2012,Shenzhen Municipal Intermediate People's Court ruled to accept the application proposed by Guosheng Energyaccording to (2012) Shenzhen Intermediate Court Po Zi No. 30 civil ruling. On the last ten-day of October 2012,Shenzhen Municipal Intermediate People's Court ruled to reform the Company since 25 October 2012 accordingto (2012) Shenzhen Intermediate Court Po Zi No. 30-1 civil ruling, appointed King & Wood (Shenzhen)Mallesons and Shenzhen ZhengYuan Liquidation Affairs Co., Ltd. as the custodians of the Company. On the sameday, Shenzhen Municipal Intermediate People's Court made (2012) Shenzhen Intermediate Court Po Zi No. 30-1written decision, and approved the Company to manage property and business affairs by itself under thesupervision 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) ShenZhong Fa Po Zi No. 30-10 ruled that the reorganization plan of CBC was completed and bankruptcy procedures ofthe Company closed down.
The Company has solved the debt problem by reforming, realized the net assets with positive value, the mainbusiness of bicycle is able to be maintained and realizes the stable development. The Company has set up theconditions for introducing the recombination party in the reforming plan, and expects to restore the abilities ofsustainable operation and sustained profitability by reorganization. The conditions of introducing therecombination party includes: the assessed value of net assets should be no less than 2 billion Yuan, the net assetsin the same year for implementing the major reorganization should be no less than 200 million Yuan. TheCompany 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 standards
The financial statement prepared by the Company, based on follow compilation basis, is comply with therequirement of new accounting standards for business enterprise issued by Ministry of Finance and its applicationguide, commentate as well as other regulations (collectively referred to as Accounting Standards for BusinessEnterprise), which is reflect a real and truth financial status of the Company, as well as operation results and cashflow situations.Furthermore, the statement has reference to the listing and disclosure requirement from “Rules Governing theDisclosure of Information for Enterprise with Stock Listed No.15-general regulation of financial report” (2014Revised) and “Notice on Implementation of New Accounting Standards for Listed Companies” (KJBH (2018) No.453)
2. Accounting period
Calendar year is the accounting period for the Company, which is starting from 1 January to 31 December.
3. Business cycles
The business period for the Company, which is the Gregorian calendar starting from 1 January to 31 December
4. 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 not under the samecontrol
(1) Accounting treatment for business combinations under the same control and those not under the same controlFor a business merger that is under the same control and is achieved by the Company through one singletransaction or multiple transactions, assets and liabilities obtained from that business combination shall bemeasured at their book value at the combination date as recorded by the party being absorbed in the consolidatedfinancial statement of ultimate controlling party. Capital reserve shall be adjusted as per the difference betweenthe book value of obtained net assets and the book value of paid consolidated consideration (or the nominal valueof the issued shares) of the Company; retained earnings shall be adjusted if the capital reserve is not sufficient foroffset.
(2) Accounting treatment for Enterprise combine not under the same control
The Company will validate the difference that the combined cost is more than the fair value of the net identifiableassets gained from the acquiree on the acquisition date as goodwill; where the combined cost is less than the fairvalue of net identifiable assets gained from the acquiree during business combination, the fair value and combinedcost of various identifiable assets, liabilities and contingent liabilities from the acquiree must be rechecked. Wherethe combined cost is, after the recheck, still less than the fair value of net identifiable assets gained from theacquiree during business combination, the difference shall be charged to current profits and losses.As for business combination not under common control and realized through multiple transactions and by steps,the Company shall make accounting treatment as follows:
1) Adjust the initial investment cost of long-term equity investments. As for stock equities held before theacquisition date accounted according to the equity method, re-measurement is carried out according to the fairvalue of the equity on the acquisition date. The balance between the fair value and the book value is included inthe current investment income. If the acquiree’s stock equities held before the acquisition date involves changes ofother comprehensive incomes and other owner's equities under accounting with the equity method, the balancebetween the fair value and the book value is included in the current investment income on the acquisition date,excluding other comprehensive incomes incurred by changes due to re-measurement of net liabilities or net assetsof the defined benefit plan.
2) Confirm the goodwill (or include the amount in the profits and losses). The initial investment cost of long-termequity investments adjusted in step 1 is compared with the fair value of net identifiable assets of the subsidiaryshared on the acquisition date. If the former is greater than the latter, the balance is confirmed as goodwill; if theformer is less than the latter, the balance is included in the current profits and losses.
Loss of control of a subsidiary in multiple transactions in which it disposes equity interests of its subsidiary instages
(1)In determining whether to account for the multiple transactions as a single transactionA parent shall consider all the terms and conditions of the transactions and their economic effects. One or more ofthe following may indicate that the parent should account for the multiple arrangements as a single transaction:
1) Arrangements are entered into at the same time or in contemplation of each other;
2) Arrangements work together to achieve an overall commercial effect;
3) The occurrence of one arrangement is dependent on the occurrence of at least one other arrangement;
4)One arrangement considered on its own is not economically justified, but it is economically justified whenconsidered together with other arrangements.
(2)Accounting treatment for each of the multiple transactions forming part of a bundled transactions whicheventually results in loss of control the subsidiary during disposal of its subsidiary in stagesIf each of the multiple transactions forms part of a bundled transactions which eventually results in loss of controlthe subsidiary, these multiple transactions should be accounted for as a single transaction. In the consolidatedfinancial statements, the difference between the consideration received and the corresponding percentage of thesubsidiary’s net assets in each transaction prior to the loss of control shall be recognized in other comprehensiveincome and transferred to the profit 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 financial statements atthe date when control is lost. The difference between the total amount of consideration received from thetransaction that resulted in the loss of control and the fair value of the remaining equity investment and the shareof net assets of the former subsidiary calculated continuously from the acquisition date or combination date basedon the previous shareholding proportion, shall be recognized as investment income for the current period whencontrol is lost. The amount previously recognized in other comprehensive income in relation to the formersubsidiary’s equity investment should be transferred to investment income for the current period when control islost
③Accounting treatment for each of the multiple transactions NOT forming part of a bundled transactions whicheventually results in loss of control the subsidiary during disposal of its subsidiary in stagesIf the Company doesn't lose control of investee, the difference between the amount of the consideration receivedand the corresponding portion of net assets of the subsidiary shall be adjusted to the capital reserve (capital /equitypremium) in the consolidated financial statements.
If the Company loses control of investee, the remaining equity investment shall be re-measured at its fair value inthe consolidated financial statements at the date when control is lost. The difference between the total amount of
consideration received from the transaction that resulted in the loss of control and the fair value of the remainingequity investment and the share of net assets of the former subsidiary calculated continuously from the acquisitiondate or combination date based on the previous shareholding percentage, shall be recognized as investmentincome for the current period when control is lost. The amount previously recognized in other comprehensiveincome in relation to the former subsidiary’s equity investment should be transferred to investment income for thecurrent period when control is lost.
6. Compilation method of consolidated financial statement
Consolidated financial statements are prepared by the Company in accordance with Accounting Standard forBusiness Enterprise No. 33-Consolidated Financial Statements and based on financial statements of parentcompany and its subsidiaries and other related information.When consolidating the financial statements, the following items are eliminated: internal equity investment andowners’ equity of subsidiaries, proceeds on internal investments and profit distribution of subsidiaries, internaltransactions, internal debts and claim. The accounting policies adopted by subsidiaries are the same as parentcompany.
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. Joint venturearrangement has the following characteristics: 1) Each participant is bound by the arrangement; 2) Two or moreparticipants carry out joint control on implementation of the arrangement. Any participant cannot control thearrangement independently. Any participant for joint control can stop other participants or participantcombinations to independently control the arrangement.Joint control refers to the sharing of control over certain arrangement under related agreements, and relatedactivities of the arrangement must be determined only when obtaining the unanimous consent of the partiessharing control.Joint venture arrangement is classified in to joint operation and joint venture. Joint operation refers to anarrangement that a joint party enjoys assets related to the arrangement and bears liabilities related to thearrangement. Joint venture refers to an arrangement that a joint party only has the power governing net assets ofthe arrangement.
(2) Accounting treatment of joint venture arrangement
Joint venture participants should confirm the following items related to interest shares in joint venture and carryout accounting settlement according to relevant provisions of the Accounting Standards for Business Enterprises:
1) confirm the assets held separately and confirm the assets held jointly based on shares; 2) confirm the liabilitiesborne separately and confirm the liabilities borne jointly based on shares; 3) confirm the income incurred afterselling its shares in joint venture output; 4) confirm the income after selling the joint venture outputs based onshares; 5) confirm the expenses incurred separately and confirm the expenses incurred in joint venture based onshares.Joint venture participants should carry out accounting settlement for investments of the joint venture according toprovisions of Accounting Standards for Business Enterprises No.2–Long-term Equity Investments.
8. Recognition of cash and cash equivalents
Cash in cash flow statement means the inventory cash and savings available for use anytime. Cash equivalentsrefer to the short-term (generally due within three months since the date of purchase) highly liquid investmentsthat are readily convertible into known amounts of cash and that are subject to an insignificant risk of change invalue.
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 CNY amount accordingto the spot exchange rate on the date of transaction. For the foreign currency monetary items, conversion must bebased on the spot exchange rate on the balance sheet date and the exchange difference incurred from differentexchange rates, except for the exchange difference of principal and interest incurred due to foreign currency loanrelated to acquisition or construction of assets that qualify for capitalization, shall be charged to current profits andlosses; foreign currency non-monetary items measured with historical cost are still converted as per the spotexchange rate on the transaction date and keep the RMB amount unchanged; foreign currency non-monetary itemsmeasured with fair value shall be converted as per the spot exchange rate on the date of determining the fair valueand the difference shall be charged to current profits and losses 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 sheetdate; the owner’s equity items, except for the items of “undistributed profit”, shall be converted at the spotexchange rate on the transaction date; the income and expenditure items in the profit statement shall be convertedat the spot exchange rate on the transaction date. The translation difference of foreign financial statementsconducted as above is recognized as other comprehensive incomes.
10. Financial instruments
Financial instrument including the financial assets, financial liability and equity instrument
(1) Classification of financial assets and financial liability
Financial assets can be divided into four types while initially recognized: financial assets at fair value throughprofit or loss (including transactional financial assets and those financial assets designated as at fair value throughprofit 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 fair value throughprofit or loss (including transactional financial liability and those financial liabilities designated as at fair valuethrough 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 the contractualprovisions of the instrument. Financial assets or financial liabilities are initially measured at fair value. Forfinancial assets and financial liabilities at fair value through profit or loss, transaction costs are immediatelyrecognized to profit or loss. For other financial assets or financial liabilities, transaction costs are included in theirinitial recognized amounts.
Financial assets are subsequently measured at fair value without considering of the possible transaction costs uponthe disposal thereof in the future, except that: (1) Held-to-maturity investments and loans and receivables aresubsequently measured at amortised cost using the effective interest method; and (2) Investments in equityinstruments that do not have a quoted price in an active market and whose fair value cannot be reliably measured,and derivative financial 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 amortised cost using the effective interest method, except that:
(1) Financial liabilities at fair value through profit are subsequently measured at fair value without considering ofthe possible transaction costs upon the settlement thereof in the future; (2) Derivative financial liabilities that arelinked to and must be settled by delivery of an unquoted equity instrument without a quoted price in an activemarket whose fair value cannot be reliably measured, they are subsequently measured at cost; and (3) Financialguarantee 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 fair value through
profit or loss, subsequent to initial recognition, they are measured at the higher of: (1) the amount determined inaccordance with ASBE No. 13 “Contingencies”; and (2) the amount initially recognized less cumulativeamortisation 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 thanthose hedging instrument, are accounted for as follows: (1) Gains or losses arising from the change in fair valueon financial assets or financial liabilities at fair value through profit or loss are recorded as gains or losses fromchange in fair value; Any interest or dividend income earned during the holding on such financial assets arerecognized to profit or loss. On disposal, the differences between the consideration received and initial recognizedamount are recognized as investment income and adjust to the gains or losses from change in fair valueaccordingly; and (2) Changes in fair value of available-for-sale financial assets are recorded in the othercomprehensive income. 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 equity investments arerecognized as investment income when the dividends are declared by the investee. On disposal, the differencesbetween the considerations received and the carrying amounts of financial assets after deducting the accumulatedfair values adjustments previously recorded in the other comprehensive income are recognized as investmentincome.
A financial asset is derecognized when the contractual rights to the cash flows from the financial asset terminate,or when it transfers substantially all the risks and rewards of ownership of the asset to another entity. A financialliability (or part of it) is derecognized only when the underlying present obligations (or part of it) are discharged.
(3)Recognition and measurement on transfer of financial assets
If the Group has transferred substantially all the risks and rewards of ownership of the financial asset to thetransferee, the financial asset should be derecognized; If the Group retains substantially all the risks and rewardsof ownership of a financial asset, the transferred financial asset should be recognized and the considerationreceived should be recognized as a financial liability; If the Group neither transfers nor retains substantially all therisks and rewards of ownership of a financial asset, it shall be accounted for as follows: (1)the financial assetshould be derecognized if the Group waives control over the asset; (2)it recognises the financial asset to the extentof its continuing involvement in the transferred financial asset and recognises an associated liability if the Groupdoes not waives control over the asset.
For a transfer of a financial asset in its entirety that satisfies the derecognition criteria, the difference of thefollowing is recognized to profit or loss: (1) The carrying amount of the financial asset transferred; and (2) Thesum of the consideration received from the transfer and any cumulative change of fair value that has beenpreviously recognized in other comprehensive income directly. If a part of the transferred financial asset qualifiesfor derecognition, the carrying amount of the transferred financial asset is allocated between the part thatcontinues to be recognized and the part that is derecognized, based on the respective fair values of those parts. The
difference of the following is recognized to profit or loss: (i) The carrying amount allocated to the partderecognized; and (ii) The sum of the consideration received for the part derecognized and any cumulative changeof fair value allocated to the part derecognized which has been previously recognized in other comprehensiveincome directly.
(4)Determination of fair value of financial assets and financial liabilities
For a financial asset or financial liability which has an active market, the Group considers the quoted price in theactive market to determine its fair value. For a financial assets or financial liability which has no active market,the Group uses a valuation technique (valuation techniques include using recent arm’s length market transactionsbetween knowledgeable, willing parties, reference to the current fair value of another instrument that issubstantially the same, discounted cash flow analysis and option pricing models) to determine its fair value. For afinancial asset acquired 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 receivables
At each balance sheet date, the Group assesses the carrying amounts of its financial assets other than thosefinancial assets at fair value through profit or loss. If there is objective evidence that a financial 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 individually for impairment.For a financial asset that is not individually significant, the Company assesses the asset individually forimpairment or includes the asset in a group of financial assets with similar credit risk characteristics andcollectively assesses them for impairment. If the Company determines that no objective evidence of impairmentexists for an individually assessed financial asset (whether significant or not), it includes the asset in a group offinancial assets with similar credit 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 a financial assetcarried at amortized cost has occurred, an impairment loss is recognized as the excess of the carrying amount ofthe financial asset over its present value of estimated future cash flows to profit or loss. If an impairment loss hasbeen incurred on an investment in unquoted equity instrument without a quoted price in an active market whosefair value cannot be reliably measured, or on a derivative financial asset that is linked to and must be settled bydelivery of such equity instrument, an impairment loss is recognized as the excess of the carrying amount of theunquoted equity investment or a derivative financial asset over its present value of estimated future cash flowsdiscounted at the current market rate of return for a similar financial asset to profit or loss.
An impairment is recognized where there is a significant decrease in the fair value of available for sale financialassets, or taken into account all factors, the decrease trend is not temporary to profit or loss. The cumulative loss
arising from decline in fair value previously recognized directly in the other comprehensive income is reclassifiedfrom the capital reserve to profit or loss.
(6)There is no reclassification of held-to-maturity investment which is not due into financial assets available forsale during the period.
11. Note receivable
12. Account receivable
(1) Account receivable with single significant amount and withdrawal bad debt provision on single basis
Single significant account: the single receivable has over 5 million yuan at end of the periodAt the end of the period, the receivables with significant single amount are tested separately for impairment. Ifthere is objective evidence that they have been impaired, the impairment loss will be recognized and the provisionfor bad debts will be made based on the balance between the present value of future cash flows and its book value.
(2) Provision for bad debts of accounts receivables by portfolio
Receivables with non-significant single amount at the end of the period are divided into several portfolios togetherwith the receivables that have not been impaired after the separate test by regarding aging as the credit riskcharacteristics, and a certain ratio of the closing balance of these receivables portfolios is calculated to determinethe impairment loss and the provision for bad debtsExcept for the receivables with separate provision for impairment, the company determines the proportion offollowing bad debt provisions according to the same or similar in previous years, based on the actual loss rate of theportfolio by regarding receivables aging as the credit risk characteristics, and combined with the current situation:
(2) Aging analysis
| Account age | Accrual ratio for account receivable | |
| Within one year(one year included) | 0.3% |
| 1～2 years(2 years included) | 0.3% | |
| 2～3 years(3 years included) | 0.3% | |
| Over 3 years | 100% |
| Including: unrecoverable | Charge off |
have been impaired, the impairment loss will be recognized and the provision for bad debts will be made based onthe balance between the present value of future cash flows and its book value; receivables that are in dispute withthe other party or involving litigation or arbitration; there are clear signs indicating that the debtor is likely to beunable to fulfill the repayment obligations of the receivables.Provision method of bad debt reserve: If the impairment test is carried out separately and there is objectiveevidence that it has been impaired, the impairment loss will be recognized and the provision for bad debts will bemade based on the balance between the present value of future cash flows and its book value.
13. Account receivable financing
14. Other account receivable
Determining method and accounting treatment on the expected credit loss of other account receivable
(1)Account receivable with single significant amount and withdrawal bad debt provision on single basis:
Single significant account: the single receivable has over 5 million yuan at end of the periodAt the end of the period, the receivables with significant single amount are tested separately for impairment. Ifthere is objective evidence that they have been impaired, the impairment loss will be recognized and the provisionfor bad debts will be made based on the balance between the present value of future cash flows and its book value.
(2) Provision for bad debts of accounts receivables by portfolio
Receivables with non-significant single amount at the end of the period are divided into several portfolios togetherwith the receivables that have not been impaired after the separate test by regarding aging as the credit riskcharacteristics, and a certain ratio of the closing balance of these receivables portfolios is calculated to determinethe impairment loss and the provision for bad debtsExcept for the receivables with separate provision for impairment, the company determines the proportion offollowing bad debt provisions according to the same or similar in previous years, based on the actual loss rate of theportfolio by regarding receivables aging as the credit risk characteristics, and combined with the current situation:
(2) Aging analysis
| Account age | Accrual ratio for other account receivable | |
| Within one year(one year included) | 0.3% |
| 1～2 years(2 years included) | 0.3% | |
| 2～3 years(3 years included) | 0.3% | |
| Over 3 years | 100% |
| Including: unrecoverable | Charge off |
(3) Account receivable with minor single amount but with bad debt provision accrual on single basisReasons for provision of bad debt reserve: The Company conducts impairment test separately for receivables thatare not significant in single amount but have the following characteristics, if there is objective evidence that theyhave been impaired, the impairment loss will be recognized and the provision for bad debts will be made based onthe balance between the present value of future cash flows and its book value; receivables that are in dispute withthe other party or involving litigation or arbitration; there are clear signs indicating that the debtor is likely to beunable to fulfill the repayment obligations of the receivables.
Provision method of bad debt reserve: If the impairment test is carried out separately and there is objectiveevidence that it has been impaired, the impairment loss will be recognized and the provision for bad debts will bemade based on the balance between the present value of future cash flows and its book value.
15. Inventory
Whether the company needs to comply with the disclosure requirements of the particular industryNo
(1) Classification of inventory
The inventory of the Company refers to such seven classifications as the raw materials, product in process, goodson hand, wrap page, low value consumables, materials for consigned processing and goods sold.
(2) Valuation of inventories
Inventories are initially measured at cost upon acquisition, which includes procurement costs, processing costsand other costs. The prices of inventories are calculated using weighted average method when they are delivered.
(3) Provision for inventory impairment
When a comprehensive count of inventories is done at the end of the period, provision for inventory impairment isallocated or adjusted using the lower of the cost of inventory and the net realizable value. The net realizable valueof stock in inventory (including finished products, inventory merchandize and materials for sale) that can be solddirectly is determined using the estimated saleable price of such inventory deducted by the cost of sales andrelevant taxation over the course of ordinary production and operation. The net realizable value of material ininventory that 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 ordinaryproduction and operation. The net realizable value of inventory held for performance of sales contract or laborservice contract is determined based on the contractual price; in case the amount of inventory held exceeds thecontractual amount, the net realizable value of the excess portion of inventory is calculated using the normalsaleable price.
Provision for impairment is made according to individual items of inventories at the end of the period; however,for inventories with large quantity and low unit price, the provision is made by categories; inventories of productsthat are produced and sold in the same region or with the same or similar purpose or usage and are difficult to bemeasured separately are combined for provision for impairment.
If the factors causing a previous write-off of inventory value has disappeared, the amount written-off is reversedand the amount provided for inventory impairment is reversed and recognized in profit or loss for the period.
(4)Inventory system
Perpetual inventory system is adopted.
16. Contract assets
17. Contract cost
18. Assets held for sale
The Company classifies such corporate components (or non-current assets) that meet the following criteria asheld-for-sale: (1) Disposable immediately under current conditions based on similar transactions for disposals ofsuch assets or practices for the disposal group; (2) Probable disposal; that is, a decision has been made on a planfor disposal and an undertaking to purchase has been obtained (the undertaking to purchase means a bindingpurchase agreement entered into by the Company and other parties, which contains transaction price, time andadequately strict punishments 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 be completedwithin a year. Besides, approval from relevant competent authorities or regulatory authorities has been obtained asrequired by relevant rules.
The expected net residual value of asset held for sale is adjusted by the Company to reflect its fair value lessselling expense, provided that the net amount shall not exceed the original carrying value of the asset. In case thatthe original value is higher than the adjusted expected net residual value, the difference shall be recorded in profitor loss for the period as asset impairment loss, and allowance of impairment for the asset shall be provided.Impairment loss recognized in respect of the disposal group held for sale shall be used to offset the carrying valueof the goodwill in the disposal group, and then offset the carrying value of the non-current assets within thedisposal group 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 expensesincreased as at the subsequent balance date, the reduced amount before will be recovered and reversed in the
assets impairment loss amount recognized after being classified as held for sale, and the reversed amount will berecorded in the current profits or loss. The impairment loss on assets recognized before being classified as held forsale will not be reversed. In respect of the disposal group held for sale, if the net amount after their fair value lessthe selling expenses increased as at the subsequent balance date, the reduced amount before will be recovered andreversed in the assets impairment loss amount recognized in non-current assets after being classified as held forsale, and the reversed amount will be recorded in the current profits or loss. The reduced book value of thegoodwill as well as the impairment loss on assets recognized before the non-current assets are classified as heldfor sale will not be reversed. The subsequent reversed amount in respect of the impairment loss on assetsrecognized in the disposal group held for sale will increase the book value in proportion of the book value of eachnon-current assets (other than goodwill) in the disposal group.
In respect of loss of control in a subsidiary arising from disposal of the investment in such subsidiary, theinvestment in a subsidiary shall be classified as held for sale in its entirety in the individual financial statement ofthe parent company, and all the assets and liabilities of the subsidiary shall be classified as held for sale in theconsolidated financial statement subject to that the proposed disposal of investment in the subsidiary satisfies suchconditions as required for being classified as held for sale notwithstanding part equity investment will be retainedby the Company after such disposal.
19. Creditors’ investment
20. Other creditors’ investment
21. Long-term account receivable
22. Long-term equity investment
(1)Determination of investment costs
1) If it is formed by the business combination under the common control, and that the combining party takes cashpayment, transfer of non-cash assets, assumption of debts or issuance of equity securities as the consolidationconsideration, the shares of the book value of the owner’s equity obtained from the combined party on the date ofcombination in the ultimate controlling party’s consolidated financial statements shall be recognized as its initialinvestment cost. Capital reserves shall be adjusted according to the balance between the initial investment cost forlong-term equity investment and the book value of paid consolidation consideration or the total face value ofissued shares (capital premium or equity premium). If capital reserves are insufficient for offset, retained earningsshall be adjusted.As for business combination under the common control realized by the Company through several transactions, theinitial 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 theconsolidation date. Difference between initial investment cost and the carrying value of long-term equityinvestment before combination and the sum of carrying value of newly paid consideration for additional sharesacquired on the date of combination is to adjust capital reserve (capital premium or equity premium). If thebalance of capital reserve is insufficient, any excess is adjusted to retained earnings.
2) As for long-term equity investment formed from business combination not under common control, the fairvalue of the consolidated consideration paid shall be deemed as the initial investment cost on the acquisition date.
3) Except those ones formed by the business combination, for all items obtained by means of cash payment,actually paid acquisition costs shall be taken as the initial investment cost. For those ones obtained by the issuanceof equity securities, the fair value of the issued equity securities shall be taken as the initial investment cost. Forthose ones invested by investors, the value agreed in the investment contract or agreement shall be taken as theinitial investment cost, provided that the value agreed in the contract or agreement shall be fair.
(2)Subsequent measurement and profit or loss recognition
For a long-term equity investment where the Company can exercise control over the investee, the long-terminvestment is accounted for using the cost method in the Company’s financial statements. The equity method isadopted when the Group has joint control, or exercises significant influence on the investee.Under cost method, long term equity investment is measured at initial investment cost. Except for the priceactually paid for obtaining the investment or the cash dividends or profits declared but not yet distributed which isincluded in the consideration, the Company recognizes cash dividends or profits declared by the investee ascurrent investment gains, and determine whether there is impairment on long term investment according torelevant assets impairment policies.Under equity method, when the initial investment cost of the long-term equity investment exceeds the share of fairvalue in the net identifiable assets in the investee, the difference shall be included in initial investment cost of thelong-term equity investment. When the initial investment cost is lower than the share of fair value in the netidentifiable asset in the investee, such difference is recognized in profit or loss for the period with adjustment ofcost of the long-term equity investment.Under equity method, after the Company acquires a long-term equity investment, it shall, in accordance with itsattributable share of the net profit or loss realized by the investee, recognize the investment profit or loss andadjust carrying value of the investment. The Group recognizes its share of the investee’s net profits or losses aftermaking appropriate adjustments to the investee’s net profits and losses based on the fair value of the investee’sidentifiable assets at the acquisition date, using the Group’s accounting policies and periods, and eliminating theportion of the profits or losses arising from internal transactions with its joint ventures and associates, attributableto the investing entity according to its shareholding proportion (but impairment losses for assets arising frominternal transactions shall be recognized in full). The carrying amount of the investment is reduced based on theGroup’s share of any profit distributions or cash dividends declared by the investee. The Group’s share of net
losses of the investee is recognized to the extent the carrying amount of the investment together with anylong-term interests that in substance form part of its net investment in the investee is reduced to zero, except thatthe Group has the obligations to assume additional losses. The Group adjusts the carrying amount of the long-termequity investment for any changes in owners’ equity of the investee (other than net profits or losses) and includesthe corresponding adjustments in the owners’ equity of the Group.
(3) Determination of control and significant influence on investee
Control is the power over an investee. An investor must have exposure or rights to variable returns from itsinvolvement with the investee, and the ability to use its power over the investee to affect the amount of theinvestor’s returns. Significant influence is the power to participate in the financial and operating policy decisionsof the investee but is not control or joint control with other parties over those policies
(4)Disposal of long-term equity investment
1) Partial disposal of long term investment in which control is retained
When long term investment is been partially disposed but control is retained by the company, the differencebetween disposal proceeds and carrying amount of the proportion being disposed is accounted for through profitor loss.
2) Partial disposal of long term investment in which control is lost
When long term investment is partially disposed and control is lost as a result, the carrying value of the long terminvest on the stock right, the difference between carrying amount of the part being disposed and disposal proceedsshould be recognized as profit or loss. The residual part should be treated as long term investment or otherfinancial assets according to their carrying amount. After partial disposal, if the company is able to exertsignificant influence or common control over the investee, the investment should be measured according to costmethod or equity method, in compliance with relevant accounting standards and regulations.
(5)Impairment test and provision for impairment
If there is objective evidence on the balance sheet date showing investment in subsidiaries, associates and jointventures is impaired, provision of impairment shall be made against the difference between the carrying amountand the recoverable amount of the investment.
23. Investment real estate
Measurement modeMeasured by cost methodDepreciation or amortization method
(1) Investment property including land use right which has been rented out, land use right which is 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 cost pattern, andrelevant withdrawal of provision for depreciation or amortization is carried out by the same method for fixedassets and intangible assets. As of the balance sheet date, where there is any indication that an investment propertyexperiences impairment, the relevant impairment provision shall be provided for based on the difference betweenthe carrying value and the recoverable amount.
24. Fixed assets
(1) Confirmation conditions
Fixed assets refer to the tangible assets for production of products, provision of labor, lease or operation, and witha service life in excess of 1 financial year. Fixed assets may be recognized unless it simultaneously meets theconditions as follows: ①The economic benefits pertinent to the fixed asset are likely to flow into the enterprise;and ②The cost of the fixed assets can be measured reliably.
(2) Depreciation methods
| Category | Method | Years of depreciation | Scrap value rate | Yearly depreciation rate |
| Housing and buildings | Straight-line depreciation | 20-year | 10% | 4.5% |
| Machinery equipment | Straight-line depreciation | 10-year | 10% | 9% |
| Office equipment | Straight-line depreciation | 5-year | 10% | 18% |
| Electronic equipment | Straight-line depreciation | 5-year | 10% | 18% |
| Means of transportation | Straight-line depreciation | 5-year | 10% | 18% |
| Other equipment | Straight-line depreciation | 5-year | 10% | 18% |
rented-in under finance lease are recorded at the lower of fair value and the present value of the minimum leasepayment at the inception of the lease, and are depreciated following the depreciation policy for self-owned fixedassets.
25. Construction in progress
(1)When the construction in progress has reached the intended condition for use, it will be treated as fixed assetsas per the actual construction cost. If the construction in progress has reached the intended condition for use butcompletion accounting is not carried out, the construction in progress should be first treated as fixed assets as perthe estimated value. After completion accounting is carried out, the original estimated value should be adjusted asper the actual cost, but the provision for depreciation withdrawn should not be adjusted.
(2)As of the balance sheet date, where there is any indication that a construction in process experiencesimpairment, the relevant impairment provision shall be provided for based on the difference between the carryingvalue and the recoverable amount.
26. Borrowing expenses
27. Biological assets
28. Oil and gas assets
29. Right-of-use assets
30. Intangible assets
(1) Valuation method, service life and impairment test
(1) Intangible assets include land use right, patent right and non-patent technology, which should be initiallymeasured at cost.
(2) Intangible assets with limited service life should be amortized systematically and reasonably in their servicelives as per the expected form of realization economic benefits relating to the said intangible assets. If the form ofrealization cannot be reliably determined, the intangible assets should be amortized on a straight-line basis.
(3)At the balance sheet date, when there is any indication that the intangible assets with finite useful lives may beimpaired, a provision for impairment loss is recognized on the excess of the carrying amounts of the assets overtheir recoverable amounts. Intangible assets with infinite useful lives and intangible assets not satisfying thecondition for use yet are subject to impairment test each year notwithstanding whether the assets are impaired.
(2) Internal accounting policies relating to research and development expendituresExpenditure incurred in the research phase of internal R&D shall be included in current gain/loss at the time ofoccurrence.Intangible assets recognized for expenditure in exploitation stage by satisfying the followed at same time:
①it is technically feasible that the intangible asset can be used or sold upon completion;
②there is intention to complete the intangible asset for use or sale;
③the intangible asset can produce economic benefits, including there is evidence that the products produced usingthe intangible asset has a market or the intangible asset itself has a market; if the intangible asset is for internal use,there is evidence that there exists usage for the intangible asset;
④there is sufficient support in terms of technology, financial resources and other resources in order to completethe development of the intangible asset, and there is capability to use or sell the intangible asset;
⑤the expenses attributable to the development phase of the intangible asset can be measured reliably.
31. Impairment of long-term assets
32. Long-term expenses to be apportioned
Long-term expenses to be apportioned are booked by actual amount occurred, and apportioned evenly during thebenefit period or regulated period.In case that the long-term deferred expenses are not likely to benefit thesubsequent accounting periods, the outstanding value of the item to be amortized shall be included in currentprofit or loss in full.
33. Contract liability
34. Employee compensation
(1) Accounting treatment for short-term compensation
During the accounting period when staff providing service to the Company, the actual short-term compensationoccurred shall recognized as liabilities and reckoned into current gains/losses or relevant assets costs. Thenon-monetary welfare is measured by fair value.
(2) Accounting treatment for post-employment benefit
The post-employment benefit including the defined contribution plans. And defined contribution plans includingbasic endowment insurance, unemployment insurance and annuity, corresponding payable amount will reckonedinto relevant assets costs or current gains/losses while occurred.
(3) Accounting for retirement benefits
When the Company terminates the employment relationship with employees before the end of the employmentcontracts or provides compensation as an offer to encourage employees to accept voluntary redundancy, theCompany shall recognize employee compensation liabilities arising from compensation for staff dismissal andincluded in profit or loss for the current period, when the Company cannot revoke unilaterally compensation fordismissal due to the cancellation of labor relationship plans and employee redundant proposals; and the Companyrecognize cost and expenses related to payment of compensation for dismissal and restructuring, whichever isearlier.
(4) Accounting for other long-term employee benefits
The employees of the Company have participated in the basic social endowment insurance organized andimplemented by the local labor and social security department. The Company pays the endowment insurancepremium to the local basic social endowment insurance agency on a monthly basis based on the base and ratio ofthe local basic social endowment insurance payment. After the retirement of employees, the local labor and socialsecurity department has the responsibility to pay the social basic pension to the retired employees. During theaccounting period in which employees provide services, the Company recognizes the amount payable calculatedaccording to the above social security insurance regulations as the liabilities and includes them in the currentprofit and loss or related asset costs.
35. Lease liability
36. Accrual liability
(1)When the obligations arising from provision of external guarantee, lawsuits, product quality guarantee andcontract loss and other contingent issues become the present obligations of the company, the performance ofwhich is likely to result in outflow of benefit from the company and the amount of which can be measured reliably,the company shall recognize such obligations as projected liabilities.
(2)Projected liabilities are initially measured at the best estimate on the expenses required to perform the relevantpresent obligation by the Company, and the carrying value of project liabilities are reviewed on each balance sheet
date.
37. Share-based payment
(1)Types of share-based payment
Share-based payment comprises of equity-settled share-based payment and cash-settled share-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 the instrument.
2)determined by adoption of valuation technology if there exists no active market, including by reference to therecent arm’s length market transactions between knowledgeable, willing parties, reference to the current fair valueof another instrument that is substantially the same, discounted cash flow analysis and option pricing models.
(3)Basis for determination of the best estimate of exercisable equity instruments
To be determined based on the subsequent information relating to latest change of exercisable employees.
(4)Accounting relating to implementation, amendment and termination of share-based payment schemes
1)Equity-settled share-based payment
For equity instruments that may be exercised immediately after the grant, the fair value of such instrument shall,on the date of the grant, be recognized in relevant costs or expenses with the increase in the capital reserveaccordingly. For equity-settled share-based payment made in return for the rendering of employee services thatcannot be exercised until the services are fully rendered during vesting period or specified performance targets aremet, on each balance sheet date within the vesting period, the services acquired in the current period shall, basedon the best estimate of the number of exercisable instruments, be recognized in relevant costs or expenses and thecapital 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, such payment shall bemeasured at the fair value of the service as of the acquisition date is the fair value can be measured reliably. And ifthe fair value of the service cannot be measured reliably while the fair value of the equity instrument can bemeasured reliably, it shall be measure at the fair value of the instrument as of the date on which the service isacquired, which shall be recorded in relevant cost or expense with increase in owners’ equity accordingly.
2)Cash-settled share-based payment
For the cash-settled share-based payment that may be exercised immediately after the grant in exchange for renderof service by employees, the fair value of the liability incurred by the Company shall, on the date of the grant, berecognized in relevant costs or expenses and the liabilities shall be increased accordingly. For cash-settledshare-based payment made in return for the rendering of employee services that cannot be exercised until theservices are fully provided 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 best estimate of thenumber of exercisable instruments, be recognized in relevant costs or expenses and the corresponding liabilities atthe fair value of the liability incurred by the Company.
3)Revision and termination of share-based payment schemes
If the revision results in an increase in the fair value of the equity instruments granted, the Company shallrecognize the increase in the services rendered accordingly at the increased fair value of the equity instruments. Ifthe revision results in an increase in the number of equity instruments granted, the Company will recognize theincrease in the services rendered accordingly at the fair value of the increased number of equity instruments. If theCompany revises the vesting conditions on terms favorable to the employees, the Company will take intoconsideration of the revised vesting conditions when dealing with the vesting conditions.
If the revision results in a decrease in the fair value of the equity instruments granted, the Company shall continuerecognize the amount of services rendered accordingly at the fair value of the equity instruments on the date ofgrant without considering the decrease in the fair value of the equity instruments. If the revision results in adecrease in the number of equity instruments granted, the Company will account for such decrease by reducingpart of the cancellation of equity instruments granted. If the Company revises the vesting conditions on terms notfavorable 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 granted during the vestingperiod (other than cancellation as a result of failure to satisfy the vesting conditions), such cancellation orsettlement will be treated as accelerated exercisable rights and the original amount in the remaining vesting periodwill be recognized immediately.
38. Other financial instruments including senior shares and perpetual bonds
(1) Distinguish of senior shares and perpetual bonds
The perpetual bonds and senior shares issued by the Company are treated as equity instruments subject tosatisfaction of all the below conditions:
①the financial instrument excludes delivery of cash or other financial assets to others, or exchange for contractualobligations on financial assets or financial liabilities with others under potential negative conditions;
②if its own equity instruments are required or may be used to settle the financial instruments, it excludes thecontractual obligation to deliver varied numbers of own equity instruments for settlement provided that thefinancial instruments are non-derivatives; if the financial instruments are derivatives, the Company can only settlethe financial instruments by fixed number of own equity instruments for exchange for fixed amount of cash orother financial assets.
Other than the financial instruments which can be classified as equity instruments under the above conditions,other financial instruments issued by the Company shall be classified as financial liabilities.
In case that financial instruments issued by the Company are compound financial instruments, they shall berecognized as liabilities at the fair value of liabilities portion. The actual amount received less fair value of theliabilities portion shall be recognized as other equity instrument. Transaction expenses occurred in issuance ofcompound financial instruments are allocated to the portions of liabilities and equities according to theirrespective proportion to the total issuance price.
(2) Accounting for perpetual bonds and senior shares
For perpetual bonds and senior shares classified into financial liabilities, their relevant interest, dividends, gains orlosses and gains or losses arising from redemption or refinancing are all included in current profit or loss otherthan those borrowing expenses which meet condition for capitalization (please refer to Note V-18 “borrowingexpenses”).For perpetual bonds and senior shares classified into equity instruments, their issuance (including refinancing),repurchase, sale or cancel are treated as change of equity, and relevant transaction fees are also deducted fromequity. The Company accounts for allocation of holders of equity instruments as profit distribution.
The Company dose not recognizes change of fair value of equity instruments.
39. Revenue
Whether the company needs to comply with the disclosure requirements of the particular industryNoWhether implemented the new revenue standards
□Yes √No
(1) Sales of goods
Income from sale of goods is recognized when the following conditions are met: 1)the Company has transferredthe key risks and return on the ownership of the merchandize to the buyer; 2)the Company has not retainedcontinued management rights associated with ownership and no longer exercises effective control on themerchandize sold; 3)the amount of income can be reliably measured; 4)the relevant economic benefits are verylikely to flow to the enterprise; 5)the costs incurred or to be incurred can be reliably measured.Timing for recognition of revenue of the Company from products sales: revenue is recognized upon delivery ofproducts 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 services is recognizedusing the percentage of completion method. When the outcome of the transaction cannot be estimated reliably atthe balance sheet date, revenue is recognized based on the amount of the costs incurred and the costs incurred arecharged off at the same amount when the costs incurred are expected to be recoverable; and no revenue isrecognized and the costs incurred are charged off as an expense of the period when the costs incurred are not
expected to be recovered.
(3)Transfer of asset use right revenue
When 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 from transfer 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 whichis utilized by other persons.The income of royalties is determined on basis of the chargeable time and methodfixed under relevant agreement or contract.
40. Government Grants
(1) Government grants including those relating to assets and relating to income
(2)government grant, if granted as monetary assets, are measured at the amount received or receivable, andmeasured at fair value if granted as non-monetary assets. If the fair value can not be determined reliably, theyshall be measured at nominal value.
(3) Aggregate method for government grants:
1)government grants relating to assets are recognized as deferred income, which shall be recorded in profit or lossby installment reasonably and systematically within the useful life of the assets. If assets are sold, transferred,discarded as useless or damaged prior to expiration of the useful life, the remaining deferred income undistributedshall be transferred to profit or loss for the period in which the assets are disposed.
2)If government grants relating to income are used to compensate for relevant costs or loss for the subsequentperiods, they shall be recognized as deferred income, and recorded in profit or loss for the period in which therelevant costs are recognized. If government grants relating to income are used to compensate for the relevantcosts or loss occurred, they shall be recorded in profit or loss for the period directly.
(4)Net method for government grants
1) Government grants relating to assets are used to write off the carrying value of the relevant assets;
2) If government grants relating to income are used to compensate for relevant costs or loss for the subsequentperiods, they shall be recognized as deferred income, and recorded in profit or loss for the period in which offsetagainst the relevant costs. If government grants relating to income are used to compensate for the relevant costs orloss occurred, they shall be offset against the relevant costs for the period directly.
(5)The Company adopts aggregated accounting method for the government grants received.
(6)As for the government grants comprising both portions relating to assets and income, separate accountingshall be made for different portion; in case it is hard to differentiate the portions, the grants will be recorded asrelated to income in general.
(7)The Company realizes government grants relating to its normal activities as other income based on thesubstance of economic business, and if not related to its normal activities, realized as non-operating income andexpenditure.
(8)Subsidized loans from preferential policy obtained by the Company are classified based on whether subsidyfunds are paid to the loaning bank or directly to the Company by the competent financial authorities and aretreated based on the following principles:
1)Where subsidy funds are paid to the loaning bank by the competent financial authorities and the bank thenprovides loans to the Company at a preferential policy rate, accounting shall be made by the Company as follows:
a. Recognizes the actual borrowing amount received as the carrying value of the loan, and calculates the relevantborrowing 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 effectiveinterest method, and recognizes the difference between the actual amount received and the fair value of the loan asdeferred income. Deferred income is amortized over the term of the loan under effective interest method andoffset against the relevant borrowing costs.
2)Where subsidy funds are paid directly to the Company, the Company will offset the corresponding subsidyagainst the relevant borrowing expenses.
41. Deferred income tax assets/Deferred income tax liabilities
(1) Deferred tax assets or deferred tax liabilities are calculated and recognized based on the difference between thecarrying amount and tax base of assets and liabilities (and the difference of the carrying amount and tax base of
items not recognized as assets and liabilities but with their tax base being able to be determined according totax laws) and in accordance with the tax rate applicable to the period during which the assets are expected tobe recovered or 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 toobtain and which can be deducted from the deductible temporary difference. At the balance sheet date, if thereis any exact evidence that it is probable that future taxable profits will be available against which deductibletemporary differences can be utilized, the deferred tax 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 adeferred tax asset is reduced to the extent that it is no longer probable that sufficient taxable profits will beavailable to allow the benefit of the deferred tax asset to be utilized. Such reduction is subsequently reversed tothe extent that it becomes probable that sufficient 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 business combination; and ② thetransactions or items directly recognized in equity.
42. Lease
(1)Accounting for operating lease
When the Company is the lessee, lease payments are recognized as cost or profit or loss with straight-line methodover the lease term. Initial expenses are recognized directly into profit or loss. Contingent rents are charged asprofit or loss in the periods in which they are incurred.When the Company is the lessor, lease income is recognized as profit or loss with straight-line method over thelease term. Initial expenses, other than those with material amount and eligible for capitalization which arerecognized as profit or loss by installments, are recognized directly as profit or loss. Contingent rents are chargedinto profit or loss in the periods in which they are incurred.
(2)Accounting for financing lease
When the company acts as lessee, at the inception of lease, the lower of fair value of leased assets at the inceptionof lease and the present value of minimum lease payment is recognized as the value of leased assets. Theminimum lease payment is recognized as the value of long-term payable. Their difference is recorded asunrecognized finance costs with any initial direct expense incurred recorded in the value of leased assets. For eachperiod of the lease term, current finance cost is calculated using effective interest method.
When the company acts as lessor, at the inception of lease, the sum of minimum lease income at the inception oflease and the initial direct expense is recognized as the value of finance lease payment receivable, with unsecuredbalance also recorded. The difference between the sum of minimum lease income, initial direct expense andunsecured balance and the sum of their present values is recognized as unrealized finance income. For each periodof the lease term, current finance income is calculated using effective interest method.
43. Other important accounting policy and estimation
Discontinued operation refers to the operation disposed or classified as held-for-sale by the Company andpresented separately under operation segments and financial statements, which has fulfilled one of the followingcriteria:
(1) it represents an independent key operation or key operating region;
(2) it is part of the proposed disposal plan on an independent key operation or proposed disposal in key operatingregion; or
(3) it only establishes for acquisition of subsidiary through disposal.
Accounting for discontinued operation is set out in note V-13 “Assets held for sale”.
44. Major accounting policy and changes
(1)Main accounting policy changes
□Applicable √Not applicable
(2) Changes of important accounting estimate
□Applicable √Not applicable
(3) Adjustment the financial statements at the beginning of the first year of implementation of new financialinstrument standards, new revenue standards and new leasing standards
□Applicable √Not applicable
(4) Retrospective adjustment of early comparison data description when initially implemented the newfinancial instrument standards and new leasing standards
□Applicable √Not applicable
45. Other
NilVI. 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 | 5%, 6%, 13%, 16% |
| Tax for maintaining and building cities | Turnover tax payable | 7% |
| Enterprise income tax | Taxable income | 25% |
| Educational surtax | Turnover tax payable | 3% |
| Local educational surtax | Turnover tax payable | 2% |
Property tax
| Property tax | Turnover tax payable | 1.2% |
| Taxpaying body | Income tax rate |
| The Company | 25.00% |
| Shenzhen Emmelle Industrial Co., Ltd. | 25.00% |
| Item | Balance at period-end | Balance at period-begin |
| Cash on hand | 67,591.16 | 126,486.63 |
| Cash in bank | 7,519,825.02 | 16,305,989.07 |
| Other monetary fund | 2,000,000.00 | 2,056,410.56 |
| Total | 9,587,416.18 | 18,488,886.26 |
| Item | Balance at period-end | Balance at period-begin |
Including:
| Including: | ||
| Including: |
| Item | Balance at period-end | Balance at period-begin |
| Item | Balance at period-end | Balance at period-begin |
| Bank acceptance | 180,000.00 | 0.00 |
| Total | 180,000.00 | 0.00 |
| Category | Balance at period-end | Balance at period-begin | ||||||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
| Amount | Ratio | Amount | Accrual ratio | Amount | Ratio | Amount | Accrual ratio | |||
| Including: | ||||||||||
| Including: | ||||||||||
| Total | 0.00 | 0.00% | 0.00 | 0.00% | 0.00 | 0.00 | 0.00% | 0.00 | 0.00% | 0.00 |
| Name | Balance at period-end | |||
| Book balance | Bad debt provision | Accrual ratio | Accrual causes | |
| Total | 0.00 | 0.00 | -- | -- |
| Name | Balance at period-end | |||
| Book balance | Bad debt provision | Accrual ratio | Accrual causes | |
Total
| Total | 0.00 | 0.00 | -- | -- |
| Name | Balance at period-end | |||
| Book balance | Bad debt provision | Accrual ratio | Accrual causes | |
| Name | Balance at period-end | ||
| Book balance | Bad debt provision | Accrual ratio | |
| Total | 0.00 | 0.00 | -- |
| Name | Balance at period-end | ||
| Book balance | Bad debt provision | Accrual ratio | |
| Category | Balance at period-begin | Current changes | Balance at period-end | ||
| Accrual | Collected or reversal | Charge-off | |||
| Total | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Item | Amount pledged at period-end |
| Total | 0.00 |
(4) Note receivable which have endorsed and discount at period-end and has not expired on balance sheetdate
In RMB
| Item | Amount derecognition at period-end | Amount not derecognition at period-end |
| Bank acceptance | 24,200,000.00 | |
| Total | 24,200,000.00 |
| Item | Amount transfer to account receivable at period-end |
| Total | 0.00 |
| Item | Amount charge-off |
| Enterprise | Nature | Amount charge-off | Causes of charge-off | Procedure for charge-off | Amount cause by related transactions or not (Y/N) |
| Total | -- | 0.00 | -- | -- | -- |
| Category | Balance at period-end | Balance at period-begin | ||||||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
| Amount | Ratio | Amount | Accrual ratio | Amount | Ratio | Amount | Accrual ratio | |||
| Account receivable with bad debt | 2,477,48 | 6.37% | 2,099,36 | 84.74% | 378,124.1 | 2,477,485 | 7.66% | 2,099,361 | 84.74% | 378,124.19 |
provision accrual bysingle basis
| provision accrual by single basis | 5.20 | 1.01 | 9 | .20 | .01 | |||||
| Including: | ||||||||||
| Account receivable with bad debt provision accrual by portfolio | 36,432,635.12 | 93.63% | 1,250,554.75 | 3.43% | 35,182,080.37 | 29,860,222.34 | 92.34% | 1,230,837.51 | 4.12% | 28,629,384.83 |
| Including: | ||||||||||
| Total | 38,910,120.32 | 100.00% | 3,349,915.76 | 8.61% | 35,560,204.56 | 32,337,707.54 | 100.00% | 3,330,198.52 | 10.30% | 29,007,509.02 |
| Name | Balance at period-end | |||
| Book balance | Bad debt provision | Accrual ratio | Accrual causes | |
| Shijiazhuang Dasong Tech. Co., Ltd | 1,059,165.50 | 1,059,165.50 | 100.00% | Business terminated, and the money recovery is uncertain |
| Sichuan Wanling Electric Technology Co., Ltd. | 1,103,452.20 | 882,761.76 | 80.00% | Difficult to recover |
| Shanghai Swen Electric Vehicle Co., Ltd. | 314,867.50 | 157,433.75 | 50.00% | Difficult to recover |
| Total | 2,477,485.20 | 2,099,361.01 | -- | -- |
| Name | Balance at period-end | |||
| Book balance | Bad debt provision | Accrual ratio | Accrual causes | |
| Name | Balance at period-end | ||
| Book balance | Bad debt provision | Accrual ratio | |
| Within one year(one year included) | 34,798,417.31 | 104,395.25 | 0.30% |
| 1-2 years (2 years included) | 488,301.90 | 1,464.91 | 0.30% |
| 2-3 years (3 years included) | 1,225.00 | 3.68 | 0.30% |
| 3-4 years (4 years included) | |||
Over 5 years
| Over 5 years | 1,144,690.91 | 1,144,690.91 | 100.00% |
| Total | 36,432,635.12 | 1,250,554.75 | -- |
| Name | Balance at period-end | ||
| Book balance | Bad debt provision | Accrual ratio | |
| Account age | Balance at period-end |
| Within one year(one year included) | 34,798,417.31 |
| 1-2 years | 488,301.90 |
| 2-3 years | 1,225.00 |
| Over 3 years | 1,144,690.91 |
| Over 5 years | 1,144,690.91 |
| Total | 36,432,635.12 |
| Category | Balance at period-begin | Current changes | Balance at period-end | ||
| Accrual | Collected or reversal | Charge-off | |||
| Aging analysis and accrual on single basis | 3,330,198.52 | 39,523.02 | 19,805.78 | 3,349,915.76 | |
| Total | 3,330,198.52 | 39,523.02 | 19,805.78 | 3,349,915.76 | |
Enterprise
| Enterprise | Amount collected or reversal | Collection way |
| Item | Amount charge-off |
| Enterprise | Nature | Amount charge-off | Causes of charge-off | Procedure for charge-off | Amount cause by related transactions or not (Y/N) |
| Enterprise | Relationship with the Company | Amount | Account age | Bad debt provision | Ratio in total account receivable (%) | Account nature |
| Shenzhen Weiterui New Energy Technology Co., Ltd. | Non-related party | 8,822,791.17 | Within one year | 26,468.37 | 22.68 | Payment for goods |
| Jinan Yuxintai Sales Co., Ltd. | Non-related party | 7,556,575.55 | Within one year | 22,669.73 | 19.42 | Payment for goods |
| Shenzhen Jiahaosong Technology Co., Ltd. | Non-related party | 6,816,303.75 | Within one year | 20,448.91 | 17.52 | Payment for goods |
| Zhengzhou Guiguan Tech. Trade. Co., Ltd | Non-related party | 2,458,418.00 | Within one year | 7,375.25 | 6.32 | Payment for goods |
| Fu Qi | Non-related party | 2,285,670.40 | Within two years | 6,857.01 | 5.87 | Payment for goods |
| Total | 27,939,758.87 | 83,819.27 | 71.81 |
(6) Assets and liability resulted by account receivable transfer and continuous involvementNilOther explanation:
At end of the period, there was no account receivable from shareholder unit and other related parties that holds 5%(included) voting rights of the Company among Account Receivables
6. Receivables financing
In RMB
| Item | Balance at period-end | Balance at period-begin |
| Account age | Balance at period-end | Balance at period-begin | ||
| Amount | Ratio | Amount | Ratio | |
| Within one year | 5,139,379.30 | 100.00% | 13,799,753.60 | 100.00% |
| Total | 5,139,379.30 | -- | 13,799,753.60 | -- |
| Enterprise | Relationship with the Company | Amount | Account age | Nature | Ratio in total advance e payment (%) |
| Zhaoqing Kaisite Battery Material Co., Ltd. | Non-related party | 4,502,078.18 | Within one year | Prepayments for raw materials | 87.60 |
| Shenzhen OZM Decoration Design Engineering Co., Ltd. | Non-related party | 636,000.00 | Within one year | Prepayments for decoration | 12.38 |
| Shenzhen JFM Package Material Co., | Non-related | 1,301.12 | Within one | Prepayments for | 0.02 |
Ltd.
| Ltd. | party | year | raw materials | ||
| Total | 5,139,379.30 | 100.00 |
| Item | Balance at period-end | Balance at period-begin |
| Other account receivable | 765,634.71 | 844,537.19 |
| Total | 765,634.71 | 844,537.19 |
| Item | Balance at period-end | Balance at period-begin |
| Borrower | Balance at period-end | Overdue time | Overdue reason | Impairment (Y/N) and judgment basis |
| Total | 0.00 | -- | -- | -- |
| Item(or invested company) | Balance at period-end | Balance at period-begin |
| Item(or invested | Balance at period-end | Account age | Causes of failure for | Impairment (Y/N) and |
company)
| company) | collection | judgment basis | ||
| Total | 0.00 | -- | -- | -- |
| Account nature | Book balance at period-end | Book balance at period-begin |
| Deposit or margin | 721,672.00 | 783,672.00 |
| Payment for equipment | 311,400.00 | 311,400.00 |
| Personal loan of employees | 88,098.50 | 31,098.50 |
| Other | 129,610.55 | 205,750.45 |
| Total | 1,250,781.05 | 1,331,920.95 |
| Bad debt provision | Phase I | Phase II | Phase III | Total |
| Expected credit losses over next 12 months | Expected credit losses for the entire duration (without credit impairment occurred) | Expected credit losses for the entire duration (with credit impairment occurred) | ||
| Balance of Jan. 1, 2019 in the period | —— | —— | —— | —— |
| Account age | Balance at period-end |
| Within one year(one year included) | 545,238.53 |
| 1-2 years | 181,000.00 |
| 2-3 years | 41,700.00 |
| Over 3 years | 482,842.52 |
| 3-4 years | 13,943.00 |
| 4-5 years | 20,164.00 |
| Over 5 years | 448,735.52 |
Total
| Total | 1,250,781.05 |
| Category | Balance at period-begin | Current changes | Balance at period-end | |
| Accrual | Collected or reversal | |||
| Aging analysis | 487,383.76 | 2,237.42 | 485,146.34 | |
| Total | 487,383.76 | 2,237.42 | 485,146.34 | |
| Enterprise | Amount switch-back or collection | Collection way |
| Total | 0.00 | -- |
| Item | Amount charge-off |
| Enterprise | Nature | Amount charge-off | Causes of charge-off | Procedure for charge-off | Amount cause by related transactions or not (Y/N) |
| Total | -- | 0.00 | -- | -- | -- |
| Enterprise | Nature | Balance at period-end | Account age | Proportion in total other account receivables at period-end | Ending balance of bad debt provision |
| Shenzhen Luwei Mechatronic Equipment Co., Ltd | Payment for equipment | 300,000.00 | Over 5 years | 23.95% | 300,000.00 |
| Shenzhen Anjingheng Industrial Co., Ltd. | Deposit and margin | 266,000.00 | Within one year | 21.23% | 798.00 |
| Shenzhen Material | Deposit and margin | 181,918.00 | Within one year | 14.52% | 545.75 |
Group Co., Ltd.
| Group Co., Ltd. | |||||
| Alipay (China) Network Technology Co., Ltd. | Deposit and margin | 110,000.00 | Within two years | 8.78% | 330.00 |
| Guangzhou Vipshop E-Business Co., Ltd. | Deposit and margin | 50,000.00 | Within two years | 3.99% | 150.00 |
| Total | -- | 907,918.00 | -- | 72.47% | 301,823.75 |
| Enterprise | Government grants | Balance at period-end | Ending account age | Time, amount and basis of amount collection estimated |
| Item | Balance at period-end | Balance at period-begin | ||||
| Book balance | Depreciation reserve | Book value | Book balance | Depreciation reserve | Book value | |
| Raw materials | 329,937.29 | 23,015.17 | 306,922.12 | 388,818.51 | 23,015.17 | 365,803.34 |
| Finished goods | 3,094,478.81 | 321,016.86 | 2,773,461.95 | 2,382,433.75 | 361,633.15 | 2,020,800.60 |
| Total | 3,424,416.10 | 344,032.03 | 3,080,384.07 | 2,771,252.26 | 384,648.32 | 2,386,603.94 |
(2) Inventory depreciation reserve
In RMB
| Item | Balance at period-begin | Current increased | Current decreased | Balance at period-end | ||
| Accrual | Other | Switch back or charge-off | Other | |||
| Raw materials | 23,015.17 | 23,015.17 | ||||
| Finished goods | 361,633.15 | 40,616.29 | 321,016.86 | |||
| Total | 384,648.32 | 40,616.29 | 344,032.03 | |||
| Item | Amount |
| Item | Balance at period-end | Balance at period-begin | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Item | Amount changes | Causes |
| Item | Accrual in the period | Switch-back in the period | Reversal/Charge-off in the period | Causes |
11. Assets held for sale
In RMB
| Item | Book balance at period-end | Impairment provision | Ending book value | Fair value | Expected disposal expenses | Expected disposal time |
| Item | Balance at period-end | Balance at period-begin |
| Creditor's rights | Balance at period-end | Balance at period-begin | ||||||
| Face value | Coupon rate | Actual rate | Due date | Face value | Coupon rate | Actual rate | Due date | |
| Item | Balance at period-end | Balance at period-begin |
| Prepaid intermediary fee | 1,792,452.81 | 1,792,452.81 |
| Prepaid tax | 2,817,406.12 | 473,788.85 |
| Total | 4,609,858.93 | 2,266,241.66 |
| Item | Balance at period-end | Balance at period-begin | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
In RMB
| Creditor's rights | Balance at period-end | Balance at period-begin | ||||||
| Face value | Coupon rate | Actual rate | Due date | Face value | Coupon rate | Actual rate | Due date | |
| Bad debt provision | Phase I | Phase II | Phase III | Total |
| Expected credit losses over next 12 months | Expected credit losses for the entire duration (without credit impairment occurred) | Expected credit losses for the entire duration (with credit impairment occurred) | ||
| Balance of Jan. 1, 2019 in the period | —— | —— | —— | —— |
| Item | Balance at period-begin | Accrued interest | Change of fair value in the period | Balance at period-end | Cost | Cumulative changes of fair value | Cumulative loss impairment recognized in other comprehensive income | Note |
| Other creditors’ investment | Balance at period-end | Balance at period-begin | ||||||
| Face value | Coupon rate | Actual rate | Due date | Face value | Coupon rate | Actual rate | Due date | |
| Bad debt provision | Phase I | Phase II | Phase III | Total |
| Expected credit losses over next 12 months | Expected credit losses for the entire duration (without credit impairment occurred) | Expected credit losses for the entire duration (with credit impairment occurred) | ||
| Balance of Jan. 1, 2019 in the period | —— | —— | —— | —— |
Change of book balance of loss provision with amount has major changes in the period
□Applicable √Not applicable
Other explanation:
Nil
16. Long-term account receivable
(1) Long-term account receivable
In RMB
| Item | Balance at period-end | Balance at period-begin | Discount rate interval | ||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | ||
| Bad debt provision | Phase I | Phase II | Phase III | Total |
| Expected credit losses over next 12 months | Expected credit losses for the entire duration (without credit impairment occurred) | Expected credit losses for the entire duration (with credit impairment occurred) | ||
| Balance of Jan. 1, 2019 in the period | —— | —— | —— | —— |
| The invested entity | Balance at period-be | Changes in the period (+,-) | Balance at period-en | Ending balance of | |||||||
| Additional | Capital reduction | Investment gains | Other comprehe | Other equity | Cash dividend | Accrual of | Other | ||||
gin(Bookvalue)
| gin(Book value) | investment | recognized under equity | nsive income adjustment | change | or profit announced to issued | impairment provision | d(Book value) | impairment provision | |||
| I. Joint venture | |||||||||||
| II. Associated enterprise | |||||||||||
| Item | Balance at period-end | Balance at period-begin |
| Item | Dividend income recognized | Cumulative gains | Cumulative losses | Retained earnings transfer from other comprehensive income | Causes of those that designated measured by fair value and with its variation reckoned into other comprehensive income | Cause of retained earnings transfer from other comprehensive income |
| Item | Balance at period-end | Balance at period-begin |
(2) Investment real estate measured at fair value
□Applicable √Not applicable
(3) Investment real estate without property rights certificate
In RMB
| Item | Book value | Reasons for failing to complete the property rights certificate |
| Item | Balance at period-end | Balance at period-begin |
| Fixed assets | 3,333,489.56 | 3,502,807.32 |
| Total | 3,333,489.56 | 3,502,807.32 |
| Item | Housing and buildings | Machinery equipment | Means of transportation | Electronic equipment及Other | Total |
| I. original book value: | |||||
| 1.Balance at period-begin | 2,959,824.00 | 416,629.06 | 958,593.21 | 225,888.32 | 4,560,934.59 |
| 2.Current increased | |||||
| (1) Purchase | 16,814.16 | ||||
| (2) construction in process transfer-in | |||||
| (3) the increase in business combination | |||||
| 3.Current decreased | |||||
| (1)Disposal or |
scrap
| scrap | |||||
| 4.Balance at period-end | 2,959,824.00 | 433,443.22 | 958,593.21 | 225,888.32 | 4,577,748.75 |
| II. accumulated depreciation | |||||
| 1.Balance at period-begin | 332,980.20 | 146,742.76 | 442,326.93 | 136,077.38 | 1,058,127.27 |
| 2.Current increased | 66,596.04 | 19,000.54 | 86,273.40 | 14,261.94 | 186,131.92 |
| (1) Accrual | 66,596.04 | 19,000.54 | 86,273.40 | 14,261.94 | 186,131.92 |
| 3.Current decreased | |||||
| (1)Disposal or scrap | |||||
| 4.Balance at period-end | 399,576.24 | 165,743.30 | 528,600.33 | 150,339.32 | 1,244,259.19 |
| III. Impairment provision | |||||
| 1.Balance at period-begin | |||||
| 2.Current increased | |||||
| (1) Accrual | |||||
| 3.Current decreased | |||||
| (1)Disposal or scrap | |||||
| 4.Balance at period-end | |||||
| IV. Book value | |||||
| 1.Ending book value | 2,560,247.76 | 267,699.92 | 429,992.88 | 75,549.00 | 3,333,489.56 |
2.Opening book
value
| 2.Opening book value | 2,626,843.80 | 269,886.30 | 516,266.28 | 89,810.94 | 3,502,807.32 |
| Item | Original book value | Accumulated depreciation | Impairment provision | Book value | Note |
| Item | Original book value | Accumulated depreciation | Impairment provision | Book value |
| Item | Ending book value |
| Item | Book value | Reasons for failing to complete the property rights certificate |
| Six properties in Lianxin Garden | 2,560,247.76 | The six properties (7-20F) of Lianxin Garden with original value of 2,959,824.00 Yuan. The property purchasing refers to the indemnificatory housing for enterprise talent buying from Shenzhen Housing and Construction Bureau of Luohu District. According to the agreement, the enterprise shall not carrying any kind of property trading with any units or individuals except the government, and the company has no property certification on the above mentioned properties. |
(6) Fixed assets disposal
In RMB
| Item | Balance at period-end | Balance at period-begin |
| Item | Balance at period-end | Balance at period-begin |
| Item | Balance at period-end | Balance at period-begin | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Item | Budget | Opening balance | increased in the 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 |
| Item | Accrual in the period | Reasons for accrual |
| Item | Balance at period-end | Balance at period-begin |
Book balance
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value |
| Item | Total |
| Item | Land use right | Patent | Non-patent technology | Trademark | Total |
| I. Original book value | |||||
| 1.Balance at period-begin | 5,271,000.00 | 5,271,000.00 | |||
| 2.Current increased | |||||
| (1) Purchase | |||||
| (2) internal R |
& D
| & D | |||||
| (3) the increase in business combination | |||||
| 3.Current decreased | |||||
| (1) Disposal | |||||
| 4.Balance at period-end | 5,271,000.00 | 5,271,000.00 | |||
| II. accumulated depreciation | |||||
| 1.Balance at period-begin | 3,765,000.00 | 3,765,000.00 | |||
| 2.Current increased | 376,500.00 | 376,500.00 | |||
| (1) Accrual | 376,500.00 | 376,500.00 | |||
| 3.Current decreased | |||||
| (1) Disposal | |||||
| 4.Balance at period-end | 4,141,500.00 | 4,141,500.00 | |||
| III. Impairment provision | |||||
| 1.Balance at period-begin | |||||
| 2.Current increased | |||||
| (1) Accrual | |||||
| 3.Current decreased | |||||
| (1) Disposal | |||||
4.Balance at
period-end
| 4.Balance at period-end | |||||
| IV. Book value | |||||
| 1.Ending book value | 1,129,500.00 | 1,129,500.00 | |||
| 2.Opening book value | 1,506,000.00 | 1,506,000.00 |
| Item | Book value | Reasons for failing to complete the property rights certificate |
| Item | Balance at period-begin | Current increased | Current decreased | Balance at period-end |
| The invested entity or items | Balance at period-begin | Current increased | Current decreased | Balance at period-end |
| The invested entity or items | Balance at period-begin | Current increased | Current decreased | Balance at period-end |
stable period growth rate, profit rate, discount rate, forecast period, etc. when estimating the present value of future cash flow), andthe impairment loss of goodwill :
NilImpact of impairment test for goodwillNilOther explanationNil
29. Long-term expenses to be apportioned
In RMB
| Item | Balance at period-begin | Current increased | Amortized in the Period | Other decrease | Balance at period-end |
| Item | Balance at period-end | Balance at period-begin | ||
| Deductible temporary difference | Deferred income tax assets | Deductible temporary difference | Deferred income tax assets | |
| Impairment provision of assets | 4,179,094.13 | 1,044,773.54 | 4,162,484.72 | 1,040,621.18 |
| Total | 4,179,094.13 | 1,044,773.54 | 4,162,484.72 | 1,040,621.18 |
| Item | Balance at period-end | Balance at period-begin | ||
| Taxable temporary differences | Deferred income tax liabilities | Taxable temporary differences | Deferred income tax liabilities | |
| Item | Trade-off between the deferred income tax assets and liabilities | Ending balance of deferred income tax assets or liabilities after | Trade-off between the deferred income tax assets and liabilities at | Opening balance of deferred income tax assets or liabilities after |
off-set
| off-set | period-begin | off-set | ||
| Deferred income tax assets | 1,044,773.54 |
| Item | Balance at period-end | Balance at period-begin |
| Year | Ending amount | Opening amount | Note |
| Item | Balance at period-end | Balance at period-begin |
| Advance payment for house | 400,000.00 | 400,000.00 |
| Total | 400,000.00 | 400,000.00 |
| Item | Balance at period-end | Balance at period-begin |
(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
| Borrower | Balance at period-end | Lending rate | Overdue time | Overdue rate |
| Item | Balance at period-end | Balance at period-begin |
| Including: | ||
| Including: |
| Item | Balance at period-end | Balance at period-begin |
| Category | Balance at period-end | Balance at period-begin |
| Bank acceptance | 2,000,000.00 | 2,000,000.00 |
| Total | 2,000,000.00 | 2,000,000.00 |
| Item | Balance at period-end | Balance at period-begin |
| Within one year(one year included) | 6,810,356.07 | 9,713,137.52 |
1-2 years (2 years included)
| 1-2 years (2 years included) | 7,099.50 | 7,099.50 |
| 2-3 years (3 years included) | 137,423.41 | 137,423.41 |
| 3-4 years (4 years included) | 2,366.00 | 2,366.00 |
| Over 5 years | 118,984.26 | 118,984.26 |
| Total | 7,076,229.24 | 9,979,010.69 |
| Item | Balance at period-end | Reasons of un-paid or carry-over |
| Item | Balance at period-end | Balance at period-begin |
| Within one year(one year included) | 1,585,651.60 | 371,039.28 |
| 1-2 years (2 years included) | 3,469.60 | 3,469.60 |
| 2-3 years (3 years included) | 2,080.00 | 2,080.00 |
| Over 3 years | 29,191.00 | 29,191.00 |
| Total | 1,620,392.20 | 405,779.88 |
| Item | Balance at period-end | Reasons of un-paid or carry-over |
| Item | Amount |
38. Contract liability
In RMB
| Item | Balance at period-end | Balance at period-begin |
| Item | Amount changes | Causes |
| Item | Balance at period-begin | Current increased | Current decreased | Balance at period-end |
| I. Short-term compensation | 435,736.16 | 2,823,763.18 | 2,719,977.39 | 539,521.95 |
| II. Post-employment benefit-Defined contribution plan | 207,279.90 | 207,279.90 | ||
| Total | 435,736.16 | 3,031,043.08 | 2,927,257.29 | 539,521.95 |
| Item | Balance at period-begin | Current increased | Current decreased | Balance at period-end |
| 1. Wages, bonus, allowances and subsidy | 428,742.32 | 2,475,459.98 | 2,371,459.98 | 532,742.32 |
| 3. Social insurance | 94,453.52 | 94,453.52 | ||
| Including: Medical insurance | 82,516.16 | 82,516.16 | ||
| Work injury insurance | 5,386.86 | 5,386.86 | ||
| Maternity insurance | 6,550.50 | 6,550.50 | ||
| 4. Housing accumulation fund | 207,218.72 | 207,218.72 | ||
| 5. Labor union expenditure and personnel education expense | 6,993.84 | 41,230.96 | 41,445.17 | 6,779.63 |
Other short-termcompensation
| Other short-term compensation | 5,400.00 | 5,400.00 | ||
| Total | 435,736.16 | 2,823,763.18 | 2,719,977.39 | 539,521.95 |
| Item | Balance at period-begin | Current increased | Current decreased | Balance at period-end |
| 1. Basic endowment insurance | 201,559.48 | 201,559.48 | ||
| 2. Unemployment insurance | 5,720.42 | 5,720.42 | ||
| Total | 207,279.90 | 207,279.90 |
| Item | Balance at period-end | Balance at period-begin |
| Value added tax | 5,716,531.88 | |
| Individual income tax | 20,597.95 | 25,288.27 |
| Tax for maintaining and building cities | 4,511.47 | 325,396.78 |
| Property tax | 90,141.20 | |
| Educational surtax | 3,184.85 | 227,569.65 |
| Stamp tax | 2,125.70 | 2,309.70 |
| Total | 120,561.17 | 6,297,096.28 |
| Item | Balance at period-end | Balance at period-begin |
| Other account payable | 37,583,929.90 | 37,144,872.42 |
| Total | 37,583,929.90 | 37,144,872.42 |
(1) Interest payable
In RMB
| Item | Balance at period-end | Balance at period-begin |
| Borrower | Amount overdue | Overdue reason |
| Item | Balance at period-end | Balance at period-begin |
| Item | Balance at period-end | Balance at period-begin |
| Custodian and common benefit debts | 18,691,592.20 | 18,853,692.84 |
| Intercourse funds | 6,500,000.00 | 6,500,000.00 |
| Warranty and guarantee money | 10,626,764.76 | 9,767,553.26 |
| Other payable service charge(intermediary services included) | 801,237.74 | 801,237.74 |
| Other | 964,335.20 | 1,222,388.58 |
| Total | 37,583,929.90 | 37,144,872.42 |
| Item | Balance at period-end | Reasons of un-paid or carry-over |
| Custodian and common benefit debts | 18,691,592.20 | - |
| Warranty and guarantee money | 8,000,000.00 | Performance bond |
| Shenzhen Guosheng Energy Investment Development Co., Ltd. | 6,500,000.00 | Interest-free loans |
| Total | 33,191,592.20 | -- |
Nil
42. Liability held for sale
In RMB
| Item | Balance at period-end | Balance at period-begin |
| Item | Balance at period-end | Balance at period-begin |
| Item | Balance at period-end | Balance at period-begin |
| 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 | Balance at period-end |
| Item | Balance at period-end | Balance at period-begin |
46. Bonds payable
(1) Bonds payable
In RMB
| Item | Balance at period-end | Balance at period-begin |
| Outstanding financial instrument | Period-begin | Current increased | Current decreased | Period-end | ||||
| Amount | Book value | Amount | Book value | Amount | Book value | Amount | Book value | |
| Item | Balance at period-end | Balance at period-begin |
| Item | Balance at period-end | Balance at period-begin |
(1) By nature
In RMB
| Item | Balance at period-end | Balance at period-begin |
| Item | Balance at period-begin | Current increased | Current decreased | Balance at period-end | Causes of formation |
| Item | Balance at period-end | Balance at period-begin |
| Item | Current Period | Last Period |
| Item | Current Period | Last Period |
| Item | Current Period | Last Period |
50. Accrual liability
Whether implemented the new revenue standards
□Yes √No
In RMB
| Item | Balance at period-end | Balance at period-begin | Causes of formation |
| Item | Balance at period-begin | Current increased | Current decreased | Balance at period-end | Causes of formation |
| Liability | Balance at period-begin | New grants in the Period | Amount reckoned in non-operation revenue | Amount reckoned in other income | Cost reduction in the period | Other changes | Balance at period-end | Assets-related/income related |
| Item | Balance at period-end | Balance at period-begin |
| Balance at period-begin | Changes in the period (+,-) | Balance at period-end | |||||
| New shares issued | Bonus share | Shares transferred from capital reserve | Other | Subtotal | |||
Total shares
| Total shares | 551,347,947.00 | 0.00 | 551,347,947.00 |
| Outstanding financial instrument | Period-begin | Current increased | Current decreased | Period-end | ||||
| Amount | Book value | Amount | Book value | Amount | Book value | Amount | Book value | |
| Item | Balance at period-begin | Current increased | Current decreased | Balance at period-end |
| Other capital reserve | 627,834,297.85 | 627,834,297.85 | ||
| Total | 627,834,297.85 | 627,834,297.85 |
| Item | Balance at period-begin | Current increased | Current decreased | Balance at period-end |
57.Other comprehensive income
In RMB
| Item | Balance at period-begin | Current Period | Balance at period-end | |||||
| Account before income tax in the period | Less: written in other comprehensive income in previous period and carried forward to gains and losses in current period | Less: written in other comprehensive income in previous period and carried forward to retained earnings in current period | Less : income tax expense | Belong to parent company after tax | Belong to minority shareholders after tax | |||
| Item | Balance at period-begin | Current increased | Current decreased | Balance at period-end |
| Item | Balance at period-begin | Current increased | Current decreased | Balance at period-end |
| Statutory surplus reserves | 32,673,227.01 | 32,673,227.01 | ||
| Total | 32,673,227.01 | 32,673,227.01 |
Item
| Item | Current period | Last Period |
| Retained profit at period-end before adjustment | -1,197,549,169.92 | -1,195,957,201.01 |
| Retained profit at period-begin after adjustment | -1,197,549,169.92 | -1,195,957,201.01 |
| Add: net profit attributable to shareholders of parent company for this year | -798.946.17 | -1,591,968.91 |
| Retained profit at period-end | -1,198,348,116.09 | -1,197,549,169.92 |
| Item | Current Period | Last Period | ||
| Revenue | Cost | Revenue | Cost | |
| Main business | 33,834,135.17 | 32,088,349.25 | 63,664,151.78 | 59,106,390.80 |
| Other business | 4,440,297.85 | 3,241,165.72 | 4,070,747.57 | 2,057,815.53 |
| Total | 38,274,433.02 | 35,329,514.97 | 67,734,899.35 | 61,164,206.33 |
| Item | Current Period | Last Period |
| Tax for maintaining and building cities | 10,738.55 | 29,269.66 |
| Educational surtax | 8,298.22 | 20,906.89 |
| Stamp tax | 17,551.00 | 25,561.20 |
| Total | 36,587.77 | 75,737.75 |
63. Sales expenses
In RMB
| Item | Current Period | Last Period |
| Employee compensation | 946,503.40 | 1,532,803.51 |
| Business travel expenses | 189,953.21 | 192,454.31 |
| Lease fee | 300,492.89 | 188,033.90 |
| Sales expenses on internet | 246,947.49 | 535,515.52 |
| Other | 191,826.62 | 307,120.29 |
| Total | 1,875,723.61 | 2,755,927.53 |
| Item | Current Period | Last Period |
| Salary, social insurance | 1,941,131.64 | 1,828,693.52 |
| Other | 418,252.20 | 1,481,026.72 |
| Total | 2,359,383.84 | 3,309,720.24 |
| Item | Current Period | Last Period |
| Item | Current Period | Last Period |
| Interest expenses | ||
| Less: Interest income | 71,134.40 | 272,686.20 |
| Exchange loss | ||
| Commission charge etc. | 10,681.41 | 11,710.39 |
Total
| Total | -60,452.99 | -260,975.81 |
| Sources | Current Period | Last Period |
| Item | Current Period | Last Period |
| Item | Current Period | Last Period |
| Sources | Current Period | Last Period |
| Item | Current Period | Last Period |
| Bad debt loss of other account receivable | 2,237.42 | -10.25 |
| Bad debt loss of long-term account receivable | -19,717.24 | -7,208.95 |
| Total | -17,479.82 | -7,219.20 |
72. Losses of devaluation of asset
Whether implemented the new revenue standards
□Yes √No
In RMB
| Item | Current Period | Last Period |
| II. Inventory falling price loss | 40,616.29 | |
| Total | 40,616.29 |
| Sources | Current Period | Last Period |
| Item | Current Period | Last Period | Amount reckoned in current non-recurring gains/losses |
| Other | 148,627.00 | 72,126.28 | |
| Total | 148,627.00 | 72,126.28 |
| Government grants | Issuing subject | Offering causes | Nature | Subsidy impact current gains/losses (Y/N) | The special subsidy (Y/N) | Amount in the Period | Amount in last period | Assets-related/income-related |
| Item | Current Period | Last Period | Amount reckoned in current non-recurring gains/losses |
| Other | 50.00 | 30,140.00 |
Total
| Total | 50.00 | 30,140.00 |
| Item | Current Period | Last Period |
| Current income tax expense | 233,133.98 | |
| Deferred income tax expense | -4,152.36 | |
| Total | -4,152.36 | 233,133.98 |
| Item | Current Period |
| Total Profit | -1,094,610.71 |
| Income tax measured by statutory/applicable tax rate | -273,652.68 |
| Impact on deductible temporary differences or losses deductible which was un-recognized as deferred income tax assets | 269,500.32 |
| Income tax expenses | -4,152.36 |
| Item | Current Period | Last Period |
| Interest and Rent and utilities etc. | 2,583,334.70 | 1,673,601.27 |
| Other intercourse funds | 1,323,261.33 | 855,411.09 |
| Total | 3,906,596.03 | 2,529,012.36 |
Nil
(2) Other cash paid in relation to operation activities
In RMB
| Item | Current Period | Last Period |
| Period expenses, operation development and common benefit debts etc. paid | 5,809,899.76 | 4,714,582.54 |
| Total | 5,809,899.76 | 4,714,582.54 |
| Item | Current Period | Last Period |
| Item | Current Period | Last Period |
| Item | Current Period | Last Period |
| Bill margin received | 2,016,600.82 | |
| Total | 2,016,600.82 |
| Item | Current Period | Last Period |
| Payment of bill margin | 2,000,000.00 |
Total
| Total | 2,000,000.00 |
| Supplementary information | Current period | Last Period |
| 1． Net profit adjusted to cash flow of operation activities: | -- | -- |
| Net profit | -1,090,458.35 | 491,916.41 |
| Add: Impairment provision of assets | -23,136.47 | 7,219.20 |
| Depreciation of fixed assets, consumption of oil assets and depreciation of productive biology assets | 186,131.92 | 184,546.75 |
| Depreciation of right-of-use asset | 376,500.00 | 376,500.00 |
| Decrease of deferred income tax asset( (increase is listed with “-”) | -4,152.36 | |
| Decrease of inventory (increase is listed with “-”) | -693,780.13 | -2,033,200.69 |
| Decrease of operating receivable accounts (increase is listed with “-”) | -2,006,581.24 | -5,809,570.61 |
| Increase of operating payable accounts (decrease is listed with “-”) | -5,645,780.11 | 3,419,617.75 |
| Net cash flow from operation activities | -8,901,256.74 | -3,362,971.19 |
| 2. Material investment and financing not involved in cash flow | -- | -- |
| 3. Net change of cash and cash equivalents: | -- | -- |
| Balance of cash at period-end | 7,587,416.18 | 15,814,304.99 |
| Less: Balance of cash at period-begin | 16,488,886.26 | 19,177,276.18 |
| Net increased amount of cash and cash equivalent | -8,901,470.08 | -3,362,971.19 |
| Amount |
Including:
| Including: | -- |
| Including: | -- |
| Including: | -- |
| Amount | |
| Including: | -- |
| Including: | -- |
| Including: | -- |
| Item | Balance at period-end | Balance at period-begin |
| I. Cash | 7,587,416.18 | 16,488,886.26 |
| Including: Cash on hand | 67,591.16 | 126,486.63 |
| Bank deposit available for payment at any time | 7,519,825.02 | 16,305,989.07 |
| Other monetary fund available for payment at any time | 56,410.56 | |
| Ⅲ. Balance of cash and cash equivalent at period-end | 7,587,416.18 | 16,488,886.26 |
Item
| Item | Ending book value | Restriction reasons |
| Monetary fund | 2,000,000.00 | Margin of 2,000,000.00 yuan for bank acceptance bill |
| Fixed asset | 2,560,247.76 | The six houses for talents in Lianxin Garden without the property certificate, and can no be traded with any party except the government |
| Total | 4,560,247.76 | -- |
| Item | Ending foreign currency balance | Convert rate | Ending RMB balance converted |
| Monetary fund | -- | -- | |
| Including: USD | |||
| EURO | |||
| HKD | |||
| Account receivable | -- | -- | |
| Including: USD | |||
| EURO | |||
| HKD | |||
| Long-term loans | -- | -- | |
| Including: USD | |||
| EURO | |||
| HKD | |||
(2) Explanation on foreign operational entity, including as for the major foreign operational entity,disclosed main operation place, book-keeping currency and basis for selection; if the book-keepingcurrency changed, explain reasons
□Applicable √Not applicable
83. Hedging
Disclosed hedging items and relevant hedging instrument based on hedging’s category, disclosed qualitative and quantitativeinformation for the arbitrage risks:
Nil
84. Government grants
(1) Government grants
In RMB
| Category | Amount | Item | Amount reckoned into current gains/losses |
| 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 |
Nil
(2) Combination cost and goodwill
In RMB
| Combination cost |
| Fair value on purchasing date | Book value on purchasing date | |
2. Enterprise combine under the same control
(1) Enterprise combined under the same control in the Period
In RMB
| Combined party | 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 |
| Combination cost |
| Combination date | At end of last period | |
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.)And relevant informationNil
6. Other
NilIX. 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 | Sales of bicycles and spare parts | 70.00% | Investment | |
(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% | -291,512.18 | 2,382,650.62 |
| Subsidiary | Balance at period-end | Balance at period-begin | ||||||||||
| Current assets | Non-current assets | Total assets | Current liability | Non-current liability | Total liabilities | Current assets | Non-current assets | Total assets | Current liability | Non-current liability | Total liabilities | |
| Shenzhen Emmelle Industrial Co., Ltd. | 20,516,177.08 | 1,487,179.64 | 22,003,356.72 | 14,061,187.97 | 14,061,187.97 | 29,791,525.49 | 1,548,021.02 | 31,339,546.51 | 22,425,670.50 | 22,425,670.50 | ||
| Subsidiary | Current Period | Last Period | ||||||
| Operation revenue | Net profit | Total comprehensive income | Cash flow from operation activity | Operation revenue | Net profit | Total comprehensive income | Cash flow from operation activity | |
| Shenzhen Emmelle Industrial Co., Ltd. | 13,212,224.34 | -971,707.26 | -971,707.26 | -4,193,347.24 | 44,367,011.18 | -207,485.52 | -207,485.52 | 1,114,664.36 |
(4) Major restriction on using corporate assets and liquidate corporate debtsNil
(5) Financial or other supporting provided to structuring entity that included in consolidated financialstatementNilOther explanation:
Nil
2. Transaction that has owners equity shares changed in subsidiary but still with controlling rights
(1) Owners equity shares changed in subsidiary
(2) Impact on minority’s interest and owners’ equity attributable to parent company
In RMB
| Joint venture or associated enterprise | Main operation place | Registered place | Business nature | Share-holding ratio | Accounting treatment | |
| Directly | Indirectly | |||||
| Balance at period-end/Current Period | Balance at period-begin/Last Period | |
| Balance at period-end/Current Period | Balance at period-begin/Last Period | |
| Balance at period-end/Current Period | Balance at period-begin/Last Period | |
| Joint venture： | -- | -- |
| Total numbers measured by share-holding ratio | -- | -- |
| Associated enterprise： | -- | -- |
| Total numbers measured by share-holding ratio | -- | -- |
| Joint venture or associated enterprise | 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 |
| Name | Main operation place | Registered place | Business nature | Share-holding ratio/share enjoyed | |
| Directly | Indirectly | ||||
6. Other
X. Risk related with financial instrumentThe major financial instruments of the Company consist of monetary fund, account receivable, other accountreceivable, account payable and other account payable, etc. details of these financial instruments are disclosed inthe relevant notes. Risks relating to these financial instruments and risk management policies adopted by theCompany to minimize these risks are detailed as follows. Management of the Company manages and monitors therisk 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 riskimpact of operating performance to the lowest level, maximize the interests of shareholders and other equityinvestors. Based on these objectives, the Company has established risk management policies to identify andanalyze the risks faced by the Company, set adequate risk acceptable level and designed relevant internal controlsystem to monitor the level of risks. The Company regularly reviews these policies and related internal controlsystem to adapt to market development and change of operating activities of the Company. The major risks arisingfrom the Company’s financial instruments are credit risk and liquidity risk.
(1)Credit risk
Credit risk represents the risk of financial loss suffered by a party to a financial instrument due to failure ofperformance obligation of another party.Credit risk of the Company is managed by category. Credit risk mainly arises from bank deposits and tradereceivables. Since the bank deposits of the Company are mainly placed with those banks of high credit rating, theCompany 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 assessmenton debtors’ credit quality and sets relevant limit on amount of debt and credit term. The maximum credit riskexposure assumed by the Company equals to the sum of carrying value of every financial asset in the balancesheet. The Company provides no guarantee 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 settlement obligation viadelivery of cash or other financial assets.When managing liquidity risk, the Company maintains and monitors such cash and cash equivalents as deemedadequate by the management, so as to satisfy its operation needs and minimize influence of fluctuation of cashflow. Management of the Company monitors application of bank borrowings to make sure it complies with
relevant borrowing agreements.
2. Capital management
The capital management policy of the Company is designed to ensure sustainable operation Of the Company so asto bring shareholders return and benefit other stakeholders, and to minimize capital cost by maintaining optimalcapital structure.In order to maintain and adjust capital structure, the Company may adjust share dividend paid to shareholders orissue new shares.The Company monitors capital structure based on gearing ratio (total liabilities divided by total assets). As at 30
th
June 2019, the gearing ratio of the Company was 75.49% (31 December 2018: 76.82%)
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 | -- | -- | -- | -- |
| II. Non-sustaining measured by fair value | -- | -- | -- | -- |
5. Adjustment information and sensitivity analysis of unobservable parameters for the fair value measuresustaining and non-persistent on third-orderNil
6. Sustaining items measured by fair value, as for the conversion between at all levels, reasons forconversion and policy for conversion time pointNil
7. Changes of valuation technique in the Period
Nil
8. Financial assets and liability not measured by fair value
Nil
9. Other
NilXII. Related party and related transactions
1. Parent company of the enterprise
| Parent company | Registered place | Business nature | Registered capital | Share-holding ratio on the enterprise for parent company | Voting right ratio on the enterprise |
3. Associated enterprise and joint venture
Found more in Note IX-3Other associated enterprise and joint venture that have related transaction with the Company in the Period or occurred in previousperiod
| Joint venture or associated enterprise | Relationship with the Company |
| Other related party | Relationship with the Company |
| Shenzhen Huahui Tongda Industrial Co., Ltd. | Supervisor of the Company Li Jialin is the legal person of the enterprise |
| Shenzhen Guosheng Energy Investment Development Co., Ltd. | The first majority shareholder |
| Related party | Transaction content | Current Period | Approved transaction amount | Whether more than the transaction amount | Last Period |
| Related party | Transaction content | Current Period | Last Period |
| Shenzhen Huahui Tongda Industrial Co., Ltd. | Sales of goods | 15,683.10 |
| Client/ | Entrusting party/ | Assets type | Starting date | Maturity date | Yield pricing | Income from |
contract-out party
| contract-out party | contractor | basis | trusteeship/contract |
| 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 |
| Lessee | Assets type | Lease income in recognized in the Period | Lease income in recognized last the Period |
| Lessor | Assets type | Lease income in recognized in the Period | Lease income in recognized last the Period |
| Secured party | Amount guarantee | Starting date | Maturity date | Guarantee completed (Y/N) |
| Guarantor | Amount guarantee | Starting date | Maturity date | Guarantee completed (Y/N) |
(5) Borrowed funds of related party
In RMB
| Related party | Borrowed funds | Starting date | Due date | Note |
| Borrowing | ||||
| Lending | ||||
| Related party | Transaction content | Current Period | Last Period |
| Item | Current Period | Last Period |
| Remuneration of key manager | 818,870.00 | 1,258,900.00 |
| Item | Related party | Balance at period-end | Balance at period-begin | ||
| Book balance | Bad debt provision | Book balance | Bad debt provision | ||
| Item | Related party | Book balance at period-end | Book balance at period-begin |
| Account received in advance | Shenzhen Huahui Tongda Industrial Co., Ltd. | 5,439.00 | |
| 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
There is no share-based payment occurred in the reporting period
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, explained reasonsThe 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 |
| Correction content | Treatment procedures | Impact items of statement during a comparison | Cumulative impacted number |
| Correction content | Approval procedures | Reasons for prospective application adopted |
2. Debt restructuring
Nil
3. Assets replacement
(1)Non-monetary assets change
Nil
(2) Other assets replacement
Nil
4. Pension plan
Nil
5. Discontinued operations
In RMB
| Item | Revenue | Expenses | Total Profit | Income tax expenses | Net profit | Discontinued operations profit attributable to owners of parent company |
| Item | Offset between segments | Total |
(4) Other explanation
Nil
7. Major transaction and events makes influence on investor’s decision
Nil
8. Other
NilXVII. Principle notes of financial statements of parent company
1. Account receivable
(1) By category
In RMB
| Category | Balance at period-end | Balance at period-begin | ||||||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
| Amount | Ratio | Amount | Accrual ratio | Amount | Ratio | Amount | Accrual ratio | |||
| Including: | ||||||||||
| Account receivable with bad debt provision accrual by portfolio | 26,040,894.92 | 100.00% | 78,122.68 | 0.30% | 25,962,772.24 | 12,866,553.82 | 100.00% | 38,599.66 | 0.30% | 12,827,954.16 |
| Including: | ||||||||||
| Total | 26,040,894.92 | 100.00% | 78,122.68 | 0.30% | 25,962,772.24 | 12,866,553.82 | 100.00% | 38,599.66 | 0.30% | 12,827,954.16 |
| Name | Balance at period-end | |||
| Book balance | Bad debt provision | Accrual ratio | Accrual causes | |
| Name | Balance at period-end | ||
| Book balance | Bad debt provision | Accrual ratio | |
| Within one year(one year | 26,040,894.92 | 78,122.68 | 0.30% |
included)
| included) | |||
| Total | 26,040,894.92 | 78,122.68 | -- |
| Name | Balance at period-end | ||
| Book balance | Bad debt provision | Accrual ratio | |
| Name | Balance at period-end | ||
| Book balance | Bad debt provision | Accrual ratio | |
| Account age | Balance at period-end |
| Within one year(one year included) | 26,040,894.92 |
| Total | 26,040,894.92 |
| Category | Balance at period-begin | Current changes | Balance at period-end | ||
| Accrual | Collected or reversal | Charge-off | |||
| Aging analysis | 38,599.66 | 39,523.02 | 78,122.68 | ||
| Total | 38,599.66 | 39,523.02 | 0.00 | 0.00 | 78,122.68 |
| Enterprise | Amount collected or reversal | Collection way |
| Total | 0.00 | -- |
Nil
(3) Account receivable actually charge-off in the period
In RMB
| Item | Amount charge-off |
| Enterprise | Nature | Amount charge-off | Causes of charge-off | Procedure for charge-off | Amount cause by related transactions or not (Y/N) |
| Total | -- | 0.00 | -- | -- | -- |
| Enterprise | Relationship with the Company | Amount | Account age | Bad debt provision | Ratio in total account receivable (%) | Account nature |
| Shenzhen Weiterui New Energy Technology Co., Ltd. | Non-related party | 8,822,791.17 | Within one year | 26,468.37 | 33.88 | Payment for goods |
| Shenzhen Jiahaosong Technology Co., Ltd. | Non-related party | 6,816,303.75 | Within one year | 20,448.91 | 26.18 | Payment for goods |
| Jinan Yuxintai Sales Co., Ltd. | Non-related party | 3,306,982.00 | Within one year | 9,920.95 | 12.70 | Payment for goods |
| Zhengzhou Guiguan Tech. Trade. Co., Ltd | Non-related party | 2,458,418.00 | Within one year | 7,375.25 | 9.44 | Payment for goods |
| Guangdong Xinlingjia New Energy Co., Ltd. | Non-related party | 1,853,000.00 | Within one year | 5,559.00 | 7.12 | Payment for goods |
| Total | 23,257,494.92 | 69,772.48 | 89.32 |
(6) Assets and liability resulted by account receivable transfer and continuous involvementNilOther explanation:
Nil
2. Other account receivable
In RMB
| Item | Balance at period-end | Balance at period-begin |
| Interest receivable | 0.00 | |
| Other account receivable | 380,925.78 | 380,925.78 |
| Total | 380,925.78 | 380,925.78 |
| Item | Balance at period-end | Balance at period-begin |
| Time deposit | 0.00 | 0.00 |
| Entrust loans | 0.00 | 0.00 |
| Bond investment | 0.00 | 0.00 |
| Total | 0.00 |
| Borrower | Balance at period-end | Overdue time | Overdue reason | Impairment (Y/N) and judgment basis |
| Total | 0.00 | -- | -- | -- |
| Item(or invested company) | Balance at period-end | Balance at period-begin |
Item(or investedcompany)
| Item(or invested company) | Balance at period-end | Account age | Causes of failure for collection | Impairment (Y/N) and judgment basis |
| Account nature | Book balance at period-end | Book balance at period-begin |
| Account receivable with bad debt provision accrual by portfolio according to credit risk characteristics (Aging analysis ) | 382,072.00 | 382,072.00 |
| Total | 382,072.00 | 382,072.00 |
| Bad debt provision | Phase I | Phase II | Phase III | Total |
| Expected credit losses over next 12 months | Expected credit losses for the entire duration (without credit impairment occurred) | Expected credit losses for the entire duration (with credit impairment occurred) | ||
| Balance of Jan. 1, 2019 in the period | —— | —— | —— | —— |
| Account age | Balance at period-end |
| Within one year(one year included) | 370,172.00 |
| 1-2 years | 200.00 |
| 2-3 years | 11,700.00 |
| Total | 382,072.00 |
| Category | Balance at period-begin | Current changes | Balance at period-end |
Accrual
| Accrual | Collected or reversal |
| Enterprise | Amount switch-back or collection | Collection way |
| Item | Amount charge-off |
| Enterprise | Nature | Amount charge-off | Causes of charge-off | Procedure for charge-off | Amount cause by related transactions or not (Y/N) |
| Total | -- | 0.00 | -- | -- | -- |
| Enterprise | Nature | Balance at period-end | Account age | Proportion in total other account receivables at period-end | Ending balance of bad debt provision |
| Shenzhen Material Group Co., Ltd. | Deposit or margin | 181,918.00 | Within one year | 47.61% | 545.75 |
| Shenzhen Anjingheng Industrial Co., Ltd. | Deposit or margin | 161,000.00 | Within one year | 42.14% | 483.00 |
| Shenzhen Jintaiyuan Investment Management Co., Ltd. | Deposit or margin | 27,254.00 | Within one year | 7.13% | 81.76 |
| Shenzhen Hongkang Instrument Technology Co., Ltd | Payment for equipment | 11,400.00 | 2-3 years | 2.98% | 34.20 |
| Shenzhen Color Life Property Management Co., Ltd. Lianxin Garden Branch | Deposit and margin | 300.00 | 2-3 years | 0.08% | 0.90 |
| Total | -- | 381,872.00 | -- | 99.94% | 1,145.61 |
In RMB
| Enterprise | Government grants | Balance at period-end | Ending account age | Time, amount and basis of amount collection estimated |
| Item | Balance at period-end | Balance at period-begin | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | 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 |
| The invested entity | Balance at period-begin(Book value) | Changes in the period (+,-) | Balance at period-end(Book value) | Ending balance of impairment provision | |||
| Additional investment | Capital reduction | Accrual of impairment provision | Other | ||||
| Shenzhen Emmelle Industrial Co., Ltd. | 10,379.73 | 10,379.73 | 1,389,620.27 | ||||
| Total | 10,379.73 | 0.00 | 0.00 | 0.00 | 0.00 | 10,379.73 | 1,389,620.27 |
| Funded enterprise | Balance at period-be | Changes in the period (+,-) | Balance at period-en | Ending balance of | |||||||
| Additiona | Capital | Investme | Other | Other | Cash | Accrual | Other | ||||
gin(Bookvalue)
| gin(Book value) | l investment | reduction | nt gains recognized under equity | comprehensive income adjustment | equity change | dividend or profit announced to issued | of impairment provision | d(Book value) | impairment provision | ||
| 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 | |||
| Item | Current Period | Last Period | ||
| Revenue | Cost | Revenue | Cost | |
| Main business | 21,426,406.12 | 20,428,856.90 | 20,600,065.94 | 18,788,402.55 |
| Other business | 3,977,972.72 | 3,241,165.72 | 3,423,452.74 | 2,057,815.53 |
| Total | 25,404,378.84 | 23,670,022.62 | 24,023,518.68 | 20,846,218.08 |
| Item | Current Period | Last Period |
XVIII. Supplementary Information
1. Current non-recurring gains/losses
√Applicable □Not applicable
In RMB
| Item | Amount | Note |
| Other non-operating income and expenditure except for the aforementioned items | 148,577.00 | |
| Less: Impact on income tax | 37,144.25 | |
| Impact on minority shareholders’ equity | -11.25 | |
| Total | 111,444.00 | -- |
| Profits during report period | Weighted average ROE | Earnings per share | |
| Basic earnings per share(RMB/Share) | Diluted earnings per share(RMB/Share) | ||
| Net profits belong to common stock stockholders of the Company | -5.74% | -0.0014 | -0.0014 |
| Net profits belong to common stock stockholders of the Company after deducting nonrecurring gains and losses | -6.55% | -0.0017 | -0.0017 |
(3) Explain accounting difference over the accounting rules in and out of China; as for the differenceadjustment for data audited by foreign auditing organ, noted the name of such foreign organ
Nil
4. Other
Nil
Section XI. Documents available for reference
1. Accounting statement carrying the signatures and seals of the legal representative, person in charge ofaccounting and person in charge of accounting organ.
2. Originals documents of the Company and manuscripts of public notices that disclosed in the newspaperdesignated by CSRC in the report period.
3. English version of the Semi-Annual Report 2019