Shenzhen China Bicycle Company (Holdings) Limited
ANNUAL REPORT 2019
April 2020
Section I. Important Notice, Contents and InterpretationBoard 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 Annual Report isauthentic, accurate and complete.
All directors are attended the Board Meeting for report deliberation.The 2019 annual financial report of the Company was audited by Baker TillyChina CPA (LLP), and an unqualified audit report with significant uncertaintyof going concern was issued. The board of directors and the board of supervisorsof the Company have detailed explanations on related matters. Investors shouldread carefully.Since the audited net profit is negative for two consecutive fiscal years in 2018and 2019, according to the relevant regulation of Article 13.2.1 of RulesGoverning the Listing of Stocks on Shenzhen Stock Exchange, Shenzhen StockExchange will implement delisting risk warning for the stock trading of theCompany.The Company has no plan of cash bonus, dividends and capitalizing of reserveseither.
content
Section I Important Notice and Interpretation ...................... 错误!未定义书签。Section II Company Profile and Main Financial Indexes ..... 错误!未定义书签。
Section III Summary of Company Business ...... 10
Section IV Discussion and Analysis of the Operation ...... 11
Section V Important Events ...... 27
Section VI Changes in shares and shareholders ...... 38Section VII Preferred Stock...................................................... 错误!未定义书签。Section VIII Convertible Bonds ...... 48
Section IXParticulars about Directors, Supervisors and Senior Executives错误!未定义书签。Section X Corporate Governance ...... 57
Section XI Corporate Bond ...... 63
Section XII Financial report ...... 64Section XIII Documents available for reference .................... 错误!未定义书签。
Interpretation
Items | Refers to | Contents |
Section II. Company Profile and Main Financial IndexesI. Company information
Short form of the stock | Zhonghua – A, Zhonghua -B | Stock code | 000017, 200017 |
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) | 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 | ||
Registrations add. | No. 3008, Buxin Rd., Shenzhen | ||
Code for registrations add | 518019 | ||
Offices add. | Room 1201, Wantong Building, No.3002, Sungang East Road, Shenzhen | ||
Codes for office add. | 518023 | ||
Company’s Internet Web Site | www.cbc.com.cn | ||
dmc@szcbc.com |
II. Person/Way to contact
Secretary of the Board | Rep. of security affairs | |
Name | Sun Longlong | Cui Hongxia, Zhong Xiaojin |
Contact add. | Room 1201, Wantong Building, No.3002, Sungang East Road, Shenzhen | Room 1201, Wantong Building, No.3002, Sungang East Road, Shenzhen |
Tel. | 0755-25516998,28181666 | 0755-25516998,28181666 |
Fax. | 0755-28181009 | 0755-28181009 |
dmc@szcbc.com | dmc@szcbc.com |
III. Information disclosure and preparation place
Newspaper appointed for information disclosure | Securities Times; Hong Kong Commercial Daily |
Website for annual report publish appointed by CSRC | Juchao Website (www.cninfo.com.cn) |
Preparation place for annual report | Room 1201, Wantong Building, No.3002, Sungang East Road, Shenzhen |
IV. Registration changes of the Company
Organization code | 914403006188304524 |
Changes of main business since listing (if applicable) | Main products or services provided at present: Emmelle bicycle, electric bicycle, lithium battery materials and gold jewelry. |
Previous changes for controlling shareholders (if applicable) | 1. In March 1992, the Stock of the Company was listed in Shenzhen Stock Exchange, and 23.28% equity of the Company was held by Shenzhen Lionda Holding Co., Ltd. and Hong Kong Dahuan Bicycle Co., Ltd respectively. 2. In March 2002, legal shares 13.58% A-stock of the Company was obtained by China Huarong Asset Management Co., Ltd. through court auction, and became the first majority shareholder of the Company. 3. On 13 November 2006, the 65,098,412 legal shears of CBC held by Huarong Company was acquired by Shenzhen Guosheng Energy Investment Development Co., Ltd. via the “Equity Transfer Agreement” signed, and first majority of the Company comes to Guosheng Energy. Guosheng Energy is the wholly-owned subsidiary of National Investment, actual controller was Zhang Yanfeng. 4. In January 2011, controlling shareholder of Shenzhen Guosheng Energy Investment Development Co., Ltd.—Shenzhen National Investment Development Co., Ltd. entered into equity transfer agreement with Mr. Ji Hanfei, 100% equity of Guosheng Energy was transfer to Mr. Ji Hanfei with price of 70 million. Shenzhen Guosheng Energy Investment Development Co., Ltd. Shenzhen Guosheng Energy Investment Development Co., Ltd. holds 63,508,747 A-stock of the Company with 11.52% in total share capital of the Company. 5. On February 20, 2017, Ji Hanfei and Guosheng Energy made an “Explanation” to abandon the actual control of the Company, after Ji Hanfei made the declaration to abandon the actual control of the Company, the investment from CBC by Mr. Ji changed to general investment instead of actual controlling, and the actual controller of the Company changed from Ji Hanfei to no actual controller. |
V. Other relevant informationCPA engaged by the Company
Name of CPA | Baker Tilly China CPA (LLP) |
Offices add. for CPA | A-1 and A-5 of No.68 Building, No.19 Chegongzhuang West Road, Haidian District Beijing |
Signing Accountants | Chen Zhigang, Zhang Lei |
Sponsor engaged by the Company for performing continuous supervision duties in reporting period
□ Applicable √ Not applicable
Financial consultant engaged by the Company for performing continuous supervision duties in reporting period
□ Applicable √ Not applicable
VI. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accountingerror correction or not
□ Yes √ No
2019 | 2018 | Changes over last year | 2017 | |
Operating income (RMB) | 76,022,687.75 | 119,906,950.34 | -36.60% | 137,490,597.69 |
Net profit attributable to shareholders of the listed company (RMB) | -7,186,905.64 | -1,591,968.91 | 351.45% | 1,529,587.27 |
Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses (RMB) | -7,370,499.83 | -1,837,914.46 | 301.03% | 1,189,700.50 |
Net cash flow arising from operating activities (RMB) | -13,791,941.34 | -9,479,474.16 | 45.49% | -3,431,578.40 |
Basic earnings per share (RMB/Share) | -0.0130 | -0.0029 | 348.28% | 0.0028 |
Diluted earnings per share (RMB/Share) | -0.0130 | -0.0029 | 348.28% | 0.0028 |
Weighted average ROE | -53.69% | -10.54% | -43.15% | 10.11% |
Year-end of 2019 | Year-end of 2018 | Changes over end of last year | Year-end of 2017 | |
Total assets (RMB) | 62,733,602.58 | 73,242,960.17 | -14.35% | 73,559,961.28 |
Net assets attributable to shareholder of listed company (RMB) | 7,119,396.30 | 14,306,301.94 | -50.24% | 15,898,270.85 |
VII. Difference of the accounting data under accounting rules in and out of China
1. Difference of the net profit and net assets disclosed in financial report, under both IAS (InternationalAccounting Standards) 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 IAS (InternationalAccounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
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.
VIII. Quarterly main financial index
In RMB
Q 1 | Q 2 | Q 3 | Q 4 | |
Operating income | 21,954,108.28 | 16,320,324.74 | 24,574,484.81 | 13,173,769.92 |
Net profit attributable to shareholders of the listed company | -366,774.37 | -432,171.80 | 1,040,149.76 | -7,428,109.23 |
Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses | -410,571.37 | -499,818.80 | 1,040,149.76 | -7,500,259.42 |
Net cash flow arising from operating activities | -6,105,394.21 | -2,795,862.53 | 1,583,584.06 | -6,474,268.66 |
Whether there are significant differences between the above-mentioned financial index or its total number and the relevant financialindex disclosed in the company’s quarterly report and semi-annual report
□Yes √ No
IX. Items and amounts of extraordinary profit (gains)/loss
√Applicable □ Not applicable
In RMB
Item | 2019 | 2018 | 2017 | Note |
Gains/losses from the disposal of non-current asset (including the write-off that accrued for impairment of assets) | -85,730.05 | -2,464.81 | ||
Switch-back of provision of impairment of account receivable and contractual assets which are treated with separate depreciation test | 219,118.00 | 278,664.18 | ||
Other non-operating income and expenditure except for the aforementioned items | 194,691.02 | 261,141.96 | 281,545.89 | |
Less: Impact on income tax | 48,672.76 | 98,632.48 | 139,436.31 | |
Impact on minority shareholders’ equity (post-tax) | -37,575.93 | 49,951.88 | 78,422.18 | |
Total | 183,594.19 | 245,945.55 | 339,886.77 | -- |
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for CompaniesOffering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according to
the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering TheirSecurities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable √ Not applicable
In reporting period, the Company has no particular about items defined as recurring profit (gain)/loss according to the lists ofextraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities tothe Public --- Extraordinary Profit/loss
Section III. Summary of Company BusinessI. Main businesses of the company in the reporting periodDuring the reporting period, the Company is engaged in the main business of bicycle business, lithium battery material business andjewelry and gold business. Bicycle business including the production, assembly, purchase and sales of bicycles and electric bicyclesetc.II. Major changes in main assets
1. Major changes in main assets
Major assets | Note of major changes |
Monetary fund | Taxes payable at end of the last year was paid in the period |
Account receivable | Receivables from customers increased |
Account paid in advance | The account paid in advance for lithium battery materials business in previous year was delivered successively in the period |
Inventory | Inventories at end of the period increased |
Other current assets | Input tax expected to be deducted increased in the period |
2. Main overseas assets
□ Applicable √ Not applicable
III. Core Competitiveness AnalysisDespite the fierce market competition in the bicycle industry as a conventional industry, the increased awarenessof green commuting, leisure and exercises as a result of the development of China’s social economy and thechange of people’s living concept creates structural development opportunity for the bicycle industry. TheCompany will continue to do better in various aspects of operation such as market development, productdevelopment, quality management and sales of e-commerce, extended and expansion the application of upstream& downstream industry for the industrial chain step by step, so as to maintain and improve the Company’s abilityto continue as a going concern before the restructuring. During the reporting period, the Company newly developsjewelry and god supply chain business and expands the business dimensions. In August 2019, the Company andShenzhen Zuankinson Jewelry Co., Ltd jointly established a Shenzhen Xinsen Jewelry and Gold Supply ChainCo., ltd with contribution of 6.5 million yuan. Of which, the Company holds 65% equity, and is the controllingshareholder of Shenzhen Xinsen Jewelry and Gold Supply Chain Co., ltd, while 35% equity held by ZuankinsonJewelry. According to actual operation development, in February 2020, the two parties are decided to increase the
capital of Shenzhen Xinsen Jewelry and Gold Supply Chain Co., ltd to 20 million yuan in the same proportion. Onthe other hand, the Company sets the conditions for introducing the restructuring party in the reorganization plan,expecting to restore the sustainable operation ability and sustainable profitability through asset restructuring.
In addition, the Company is trying to carry out the issuance of non-public shares, hoping to improve the operatingstrength and development momentum. On April 21, 2020, the company convened the 19
th(provisional) boardmeeting of the tenth session of the board of directors, and reviewed and approved the “Proposal on theTermination of Agreement for Signing a Conditional Share Subscription Agreement (Second Revision) with theOriginal Subscription Object” and the “Proposal on the Plan for Non-public Issuance of A Shares of ShenzhenChina Bicycle Company (Holdings) Limited”, etc. The company terminated the non-public offering of shares of2016 and launched the plan for non-public issuance of A shares in 2020, and planned to raise funds with totalamount not exceeding RMB 450 million by non-public offering of shares to 5 specific investors, i.e. WanshengIndustrial Holdings (Shenzhen) Co., Ltd., Fuzhou Zuankinson Jewelry Co., Ltd., Shenzhen Yilian JinchuangTechnology Co., Ltd., Shenzhen Hualinglong Jewelry Co., Ltd., and Shenzhen Jindaogu Jewelry Co., Ltd., allraised funds will be used to supplement working capital after deducting the issuance expenses. The non-publicoffering plan still needs to be approved by the company’s shareholders’ meeting and the China SecuritiesRegulatory Commission. Relevant work is in progress.
Section IV. Discussion and Analysis of the BusinessI. IntroductionIn 2019, the international political and economic situation is complex and severe, domestic developmentimbalance and inadequate problems are still prominent, and the economy is facing a new downward pressure.Under the leadership of central government and governments at all levels, the whole nation strengthened theirconfidence, overcame difficulties, and forged ahead, and achieved steady progress in economic and socialdevelopment, and the economic fundamentals were continuously consolidated and developed. As a sector in thetraditional manufacturing field, the bicycle industry continued the dilemma of rise in labor cost, manufacturingcosts, cost of capital, and material costs. In 2018, the relevant state ministry issued a new national standard forelectric bicycle safety technical specifications which was implemented on April 15, 2019. The implementation ofthe new national standard has accelerated the industry’s reshuffle and formed industry shocks beforeimplementation. In addition, in the past two years, the bike sharing has been violently oscillating the bicycleindustry and the upstream supply chain operations with capital advantages, due to the lack of profit model andcapital chain problems, and it continued to have a big impact on the whole industry in 2019. At the same time, asa traditional manufacturing industry, the bicycle industry also ushered in the “Made in China 2025” strategy,
under the guidance of the basic principles of “Innovation Driven, Quality First, Green Development, StructureOptimization, and Talent Based”, took the important opportunity to speed up the transformation and upgrading,ushered in the development opportunity of the implementation of the new national standards for electric bicycles,and also faced with the important challenges of e-commerce development impacts on channels, channelintegration 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 andimprove 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 of e-commerce retailbusiness; at the same time, correspondingly carried out the tracking study on industrial projects and technologyapplications of upstream and downstream of industrial chain in the long-term process of electric bicycle business,started getting involved in the lithium battery materials business based on the extensive business consultation andbusiness opportunity sifting, continues to expanding the business of Lithium battery materials and rich the mainbusiness; During the reporting period, the Company newly develops jewelry and god supply chain business andexpands the business dimensions. In August 2019, the Company and Shenzhen Zuankinson Jewelry Co., Ltdjointly established a Shenzhen Xinsen Jewelry and Gold Supply Chain Co., ltd with contribution of 6.5 millionyuan. Of which, the Company holds 65% equity, and is the controlling shareholder of Shenzhen Xinsen Jewelry
and Gold Supply Chain Co., ltd, while 35% equity held by Zuankinson Jewelry. According to actual operationdevelopment, in February 2020, the two parties are decided to increase the capital of Shenzhen Xinsen Jewelryand Gold Supply Chain Co., ltd to 20 million yuan in the same proportion. on the other hand, strive to promote theselection work of the company's restructuring, planned the non-public offering of shares, expecting to improve thebusiness strength and development potential.
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
thsession 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. On April 21, 2020, the company convened the 19
th(provisional) board meeting of the tenthsession of the board of directors, and reviewed and approved the “Proposal on the Termination of Agreement forSigning a Conditional Share Subscription Agreement (Second Revision) with the Original Subscription Object”and the “Proposal on the Plan for Non-public Issuance of A Shares of Shenzhen China Bicycle Company(Holdings) Limited”, etc. The company terminated the non-public offering of shares of 2016 and launched theplan for non-public issuance of A shares in 2020, and planned to raise funds with total amount not exceedingRMB 450 million by non-public offering of shares to 5 specific investors, i.e. Wansheng Industrial Holdings(Shenzhen) Co., Ltd., Fuzhou Zuankinson Jewelry Co., Ltd., Shenzhen Yilian Jinchuang Technology Co., Ltd.,Shenzhen Hualinglong Jewelry Co., Ltd., and Shenzhen Jindaogu Jewelry Co., Ltd., all raised funds will be usedto supplement working capital after deducting the issuance expenses. The non-public offering plan still needs tobe approved by the company’s shareholders’ meeting and the China Securities Regulatory Commission. Relevantwork is in progress.
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 business dimension, rich the main business and strengthening thestructural adjustment, intensifying the quality management, strengthening cost control, overcoming the industryshocks and industry punches of share-bicycle’s fluctuation on the eve of the implementation of new nationalstandards, strive to improving the ability of traditional enterprises to adapt to economy new normal and participate
in market competition. Through various efforts, the company achieved operating revenue of 76,022,700 Yuan andnet profit of -7,813,900 Yuan in 2019, of which, the net profit attributable to shareholders of listed companieswas-7,186,900 Yuan.
Item | Period-end or current period | Period-begin or last period | Y-o-Y changes (+,-) | Cause of changes |
Operation revenue | 76,022,687.75 | 119,906,950.34 | -36.60% | Revenue from bicycle and lithium battery material business declined |
Operation cost | 68,681,471.12 | 108,071,430.05 | -36.45% | Cost of bicycle and lithium battery material business declined |
Sales expenses | 3,178,476.39 | 5,933,231.41 | -46.43% | Decline of sales resulted in a decreases in operation expenses |
R&D expenses | 2,753,277.72 | 0.00 | More investment in R&D of bicycle business and lithium battery material | |
Net profit | -7,813,881.65 | -1,880,505.78 | 315.52% | Loss from the declined in revenue and soaring expenses |
Net profit attributable to shareholders of parent company | -7,186,905.64 | -1,591,968.91 | 315.52% | Loss of profits results in a deficit of profit attributable to owners of parent company |
Net cash flow from operation activity | -13,791,941.34 | -9,479,474.16 | 45.49% | Tax of previous year paid in the current period and choice of the settlement method |
Net cash flow from investment activity | -897,577.01 | -17,293.82 | 5,090.16% | Purchasing fixed assets in the period |
Net cash flow from financing activity | 4,275,000.00 | 6,808,378.06 | -37.21% | The bank acceptance issue upon receipt of the pledged bank certificate of deposit decreased in the period |
Monetary fund | 6,074,367.91 | 18,488,886.26 | -67.15% | Pay last year’s taxes and payment of bills payable on due |
Account receivable | 38,616,523.93 | 29,007,509.02 | 33.13% | Receivable from customers increased |
Account paid in advance | 938,425.99 | 13,799,753.60 | -93.20% | The account paid in advance for materials (for the business of lithium battery material business) are delivery basically in the period |
Inventory | 6,078,330.30 | 2,386,603.94 | 154.69% | The jewelry gold and bicycles in stock from the subsidiary |
Other current assets | 3,318,514.25 | 2,266,241.66 | 46.43% | Input tax to be deducted increased |
Note payable | 0.00 | 2,000,000.00 | -100.00% | Bank acceptance bill are due for payment |
Account received in advance | 1,739,953.80 | 405,779.88 | 328.79% | Account received by subsidiary in advance for goods from clients increased in the period |
Taxes payable | 585,062.75 | 6,297,096.28 | -90.71% | Taxes of lat year are paid in the period |
Minority’s interest | 4,322,186.79 | 2674162.80 | 61.63% | Share holding of the minority shareholder of the subsidiary newly established was 35% |
II. Main business analysis
1. Introduction
See the “I-Introduction” in “Discussion and Analysis of the Business”
2. Revenue and cost
(1) Constitute of operation revenue
In RMB
2019 | 2018 | Y-o-y changes (+,-) | |||
Amount | Ratio in operation revenue | Amount | Ratio in operation revenue | ||
Total operation revenue | 76,022,687.75 | 100% | 119,906,950.34 | 100% | -36.60% |
According to industries | |||||
Sales of bicycles and spare parts | 46,942,798.66 | 61.75% | 84,703,248.36 | 70.64% | -44.58% |
Lithium battery material | 24,460,850.63 | 32.18% | 35,203,701.98 | 29.36% | -30.52% |
Jewelry and gold | 4,619,038.46 | 6.07% | |||
According to products | |||||
Sales of bicycles and spare parts | 46,942,798.66 | 61.75% | 84,703,248.36 | 70.64% | -44.58% |
Lithium battery material | 24,460,850.63 | 32.18% | 35,203,701.98 | 29.36% | -30.52% |
Jewelry and gold | 4,619,038.46 | 6.07% | |||
According to region | |||||
Domestic | 76,022,687.75 | 100.00% | 119,906,950.34 | 100.00% | -36.60% |
(2) About the industries, products, or regions accounting for over 10% of the company’s operating incomeor operating profit
√Applicable □ Not applicable
In RMB
Operation revenue | Operation cost | Gross profit ratio | Increase/decrease of operating revenue y-o-y | Increase/decrease of operating cost y-o-y | Increase/decrease of gross profit ratio y-o-y | |
According to industries | ||||||
Sales of bicycles and spare parts | 46,942,798.66 | 41,597,621.68 | 11.39% | -44.58% | -45.15% | 0.92% |
Lithium battery material | 24,460,850.63 | 22,828,770.32 | 6.67% | -30.52% | -29.18% | -1.76% |
Jewelry and gold | 4,619,038.46 | 4,255,079.12 | 7.88% | |||
According to products | ||||||
Sales of bicycles and spare parts | 46,942,798.66 | 41,597,621.68 | 11.39% | -44.58% | -45.15% | 0.92% |
Lithium battery material | 24,460,850.63 | 22,828,770.32 | 6.67% | -30.52% | -29.18% | -1.76% |
Jewelry and gold | 4,619,038.46 | 4,255,079.12 | 7.88% | |||
According to region | ||||||
Domestic | 76,022,687.75 | 68,681,471.12 | 9.66% | -36.60% | -36.45% | -0.21% |
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main business based onlatest one year’s scope of period-end
□ Applicable √ Not applicable
(3) Income from physical sales larger than income from labors
√ Yes □ No
Industries | Item | Unit | 2019 | 2018 | Y-o-y changes (+,-) |
Bicycle, electric bicycle | Sales volume | In 10 thousand | 7.44 | 13.42 | -44.56% |
Output | In 10 thousand | 7.4 | 13.35 | -44.57% | |
Inventory | In 10 thousand | 0.18 | 0.22 | -18.18% | |
Lithium battery material | Sales volume | Ton | 385 | 543.25 | -29.13% |
Output | 0 | ||||
Inventory | 0 | ||||
Purchase volume | Ton | 385 | 543.25 | -29.13% | |
Jewelry and gold | Sales volume | Piece | 2317 | 0 | |
Output | Piece | 0 | |||
Inventory | Piece | 2015 | 0 | ||
Purchase volume | 4332 | 0 |
Reasons for y-o-y relevant data with over 30% changes
√Applicable □Not applicable
During the reporting period, after the implementation of the new national standard, the detailed implementingrules of the 3C standard for bicycle were delayed. The consumer market, upstream supply chain, and downstreamdistribution channels were on the sidelines, leading to a significant decline in market demand orders. In this period,the company invested in the establishment of a holding subsidiary to develop the jewelry gold supply chainbusiness, and increased the operating income of the jewelry gold supply chain business.
(4) Fulfillment of the company’s signed significant sales contracts up to this reporting period
□ Applicable √ Not applicable
(5) Constitute of operation cost
Classification of industries
In RMB
Industries | Item | 2019 | 2018 | Y-o-y changes (+,-) | ||
Amount | Ratio in operation cost | Amount | Ratio in operation cost | |||
Sales of bicycles and spare parts | Sales of bicycles and spare parts | 41,597,621.68 | 60.57% | 75,836,250.52 | 70.17% | -9.60% |
Lithium battery material | Lithium battery material | 22,828,770.32 | 33.24% | 32,235,179.53 | 29.83% | 3.41% |
Jewelry and gold | Jewelry and gold | 4,255,079.12 | 6.20% | 6.20% |
NoteNil
(6) Whether the changes in the scope of consolidation in Reporting Period
√ Yes □No
In August 2019, the Company and Shenzhen Zuankinson Jewelry Co., Ltd jointly established a Shenzhen XinsenJewelry and Gold Supply Chain Co., ltd. Of which, the Company holds 65% equity, while 35% equity held byShenzhen Zuankinson Jewelry Co., Ltd, the enterprise was included in the consolidate scope since establishment.
(7) Major changes or adjustment in business, product or service of the Company in Reporting Period
√ Applicable □ Not applicable
In August 2019, the Company and Shenzhen Zuankinson Jewelry Co., Ltd jointly established a Shenzhen XinsenJewelry and Gold Supply Chain Co., ltd, increase a supply chain business of jewelry and gold.
(8) Major sales and main suppliers
Major sales client of the Company
Total top five clients in sales (RMB) | 56,880,682.95 |
Proportion in total annual sales volume for top five clients | 74.82% |
Ratio of related parties in annual total sales among the top five clients | 0.00% |
Information of top five clients of the Company
Serial | Name | Sales (RMB) | Proportion in total annual sales |
1 | Client 1 | 26,366,871.67 | 34.68% |
2 | Client 2 | 10,717,707.40 | 14.10% |
3 | Client 3 | 10,417,655.70 | 13.70% |
4 | Client 4 | 4,929,310.40 | 6.48% |
5 | Client 5 | 4,449,137.78 | 5.85% |
Total | -- | 56,880,682.95 | 74.82% |
Other situation of main clients
□ Applicable √ Not applicable
Main suppliers of the Company
Total purchase amount from top five suppliers (RMB) | 46,626,764.46 |
Proportion in total annual purchase amount for top five suppliers | 67.89% |
Ratio of related parties in annual total sales among the top five suppliers | 0.00% |
Information of top five suppliers of the Company
Serial | Name | Purchase (RMB) | Proportion in total annual purchase |
1 | Supplier 1 | 18,420,361.26 | 26.82% |
2 | Supplier 2 | 12,429,740.35 | 18.10% |
3 | Supplier 3 | 7,902,236.28 | 11.51% |
4 | Supplier 4 | 4,070,973.47 | 5.93% |
5 | Supplier 5 | 3,803,453.10 | 5.54% |
Total | -- | 46,626,764.46 | 67.89% |
Other notes of main suppliers
□ Applicable √ Not applicable
3. Expenses
In RMB
2019 | 2018 | Y-o-y changes (+,-) | Note of major changes | |
Sales expenses | 3,178,476.39 | 5,933,231.41 | -46.43% | Decrease in sales revenue resulted in a decrease in operating expenses |
Administrative expenses | 6,409,465.59 | 6,627,286.22 | -3.29% | |
Financial expenses | -95,401.17 | -348,684.16 | -72.64% | Interest income from bank deposit fell |
R&D expenses | 2,753,277.72 | More investment on R&D of bicycle business and Lithium battery material business |
4. R&D investment
√ Applicable □ Not applicable
More investment on R&D of bicycle business and Lithium battery material business in the periodR&D investment of the Company
2019 | 2018 | Change ratio | |
Number of R&D (people) | 15 | 7 | 114.29% |
Ratio of number of R&D | 25.42% | 13.21% | 12.21% |
R&D investment (Yuan) | 2,753,277.72 | 894,440.42 | 207.82% |
R&D investment accounted for R&D income | 3.62% | 0.75% | 2.87% |
R&D investment capitalization (Yuan) | 0.00 | 0.00 | 0.00% |
Capitalization R&D investment accounted for R&D investment | 0.00% | 0.00% | 0.00% |
The reason of great changes in the proportion of total R&D investment accounted for operation income than last year
□ Applicable √ Not applicable
Reason for the great change in R&D investment capitalization rate and rational description
□ Applicable √ Not applicable
5. Cash flow
In RMB
Item | 2019 | 2018 | Y-o-y changes (+,-) |
Subtotal of cash in-flow from operation activity | 42,717,223.29 | 40,567,846.42 | 5.30% |
Subtotal of cash out-flow from operation activity | 56,509,164.63 | 50,047,320.58 | 12.91% |
Net cash flow from operation activities | -13,791,941.34 | -9,479,474.16 | 45.49% |
Subtotal of cash out-flow from investment activity | 897,577.01 | 17,293.82 | 5,090.16% |
Net cash flow from investment activities | -897,577.01 | -17,293.82 | 5,090.16% |
Subtotal of cash in-flow from financing activity | 4,275,000.00 | 8,808,378.06 | -51.47% |
Subtotal of cash out-flow from financing activity | 2,000,000.00 | -100.00% | |
Net cash flow from financing activities | 4,275,000.00 | 6,808,378.06 | -37.21% |
Net increased amount of cash and cash equivalent | -10,414,518.35 | -2,688,389.92 | 287.39% |
Main reasons for y-o-y major changes in aspect of relevant data
√ Applicable □ Not applicable
1.Major changes in subtotal of cash out-flow from investment activity: mainly because purchased fixed assets in the period;
2.Major changes in subtotal of cash in-flow from financing activity: the bank acceptance draft issued by time deposit pledge reducedin the period
Reasons of major difference between the cash flow of operation activity in report period and net profit of the Company
√ Applicable □ Not applicable
Some customers pay by bank acceptance draft in the periodIII. Analysis of the non-main business
√ Applicable □ Not applicable
In RMB
Amount | Ratio in total profit | Note | Whether be sustainable | |
Assets impairment | 499,175.17 | -6.40% | Impairment provision | N |
Non-operation revenue | 6,259,839.85 | -80.24% | Revenue of the assets management ready for proposed in reorganization case | N |
Non-operation | 6,065,148.83 | -77.74% | Expenditure of the assets management ready for | N |
expenditure | proposed in reorganization case | |||
Credit impairment | 2,533,065.87 | 32.47% | Impairment provision | N |
IV. Assets and liability
1. Major changes of assets composition
Adjustment on the relevant items of financial statement at beginning of the year when implemented the new financial instrumentstandards, new revenue standards and new leasing standards since 2019
□ Applicable √ Not applicable
In RMB
Year-end of 2019 | Year-end of 2018 | Ratio changes | Note of major changes | |||
Amount | Ratio in total assets | Amount | Ratio in total assets | |||
Monetary fund | 6,074,367.91 | 9.68% | 18,488,886.26 | 25.24% | -15.56% | |
Account receivable | 38,616,523.93 | 61.56% | 29,007,509.02 | 39.60% | 21.96% | |
Inventory | 6,078,330.30 | 9.69% | 2,386,603.94 | 3.26% | 6.43% | |
Fix assets | 4,191,503.33 | 6.68% | 3,502,807.32 | 4.78% | 1.90% |
2. Assets and liability measured by fair value
□ Applicable √ Not applicable
3. Limited assets rights till end of the period
1.At the end of the current period, the total fixed output value included six suites of house properties at 7-20FLianxin JiaYuan, Luohu District, Shenzhen purchased in 2016, with original value of 2,959,824.00 Yuan, whichwere affordable housing purchased from the Housing and Construction Bureau of Luohu District to provide toenterprise talents for living. The contract stipulated that the purchasing enterprise is not allowed to conduct anyform of property rights transaction with any units or individual other than the government.
V. Investment
1. Overall situation
√ Applicable □ Not applicable
Investment in reporting period (Yuan) | Investment in the same period of last year (Yuan) | Change scope |
4,225,000.00 | 0.00 | 100.00% |
2. The major equity investment obtained in the reporting period
√ Applicable □ Not applicable
In RMB
Name of invested company | Main business | Investment style | Investment amount | Shareholding ratio | Capital sources | Partners | Time horizon | Product type | Progress as at balance sheet date | Anticipated income | Profit/loss of current investment | Litigation issues involved (Y/N) | Date of disclosure (if any) | Disclosure index (if any) |
Shenzhen Xinsen Jewelry and gold Supply Chain Co., Ltd. | Jewelry and gold supply chain | Newly established | 4,225,000.00 | 65.00% | Owned fund | Shenzhen Zuankinson Jewelry Co., Ltd. | 20-year | Jewelry and gold supply chain | Completed | 172,602.06 | 172,602.06 | N | 2019-08-12 | Found more in the Notice on Investment Outside (N.: 2019-016) released on appointed media juchao website (http://www.cninfo.com.cn) dated 12 Aug. 2019 |
Total | -- | -- | 4,225,000.00 | -- | -- | -- | -- | -- | -- | 172,602.06 | 172,602.06 | -- | -- | -- |
3. The major non-equity investment doing in the reporting period
□ Applicable √ Not applicable
4. Financial assets investment
(1) Securities investment
□ Applicable √ Not applicable
The company had no securities investment in the reporting period.
(2) Derivative investment
□ Applicable √ Not applicable
The Company has no derivatives investment in the Period
5. Application of raised proceeds
□ Applicable √ Not applicable
The company had no application of raised proceeds in the reporting period.VI. Sales of major assets and equity
1. Sales of major assets
□ Applicable √ Not applicable
The Company had no sales of major assets in the reporting 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 | Operation revenue | Operating profit | Net profit |
Shenzhen Emmelle Industry Co., Ltd. | Subsidiary | Sales of bicycles and spare parts | 2000000 | 16,887,227.61 | 6,514,157.40 | 15,470,013.00 | -2,232,714.47 | -2,399,718.61 |
Shenzhen Xinsen Jewelry and gold Supply | Subsidiary | Jewelry and gold supply chain | 6500000 | 8,698,896.04 | 6,765,541.63 | 4,619,038.46 | 277,866.15 | 265,541.63 |
Particular about subsidiaries obtained or disposed in report period
√ Applicable □ Not applicable
Chain Co.,Ltd.
Company name
Company name | The way of getting and treating subsidiary in the reporting | Influence on overall product and performance |
Shenzhen Xinsen Jewelry and gold Supply Chain Co., Ltd. | Invest and establish | Net profit attributable to parent company has 172,602.06 yuan increased in the period |
Notes of holding and shareholding companies
1.The Company holds 70 percent equity of the Shenzhen Emmelle Industry Co., Ltd., the balance of minority equity at year-endamounting to 1,954,247.22 Yuan.
2.The Company holds 65 percent equity of the Shenzhen Xinsen Jewelry and gold Supply Chain Co., Ltd., the balance of minorityequity at year-end amounting to 2,367,939.57 Yuan.
VIII. Structured vehicle controlled by the Company
□ Applicable √ Not applicable
IX. Future Development Prospects
1. Development trend of the industry the Company operates in and market competition pattern it deals with:
As a sector in the traditional manufacturing field, the bicycle industry continued the dilemma of rise in labor costs,manufacturing costs, capital costs, and material costs. In April 2019, the implementation of the new nationalstandard of safety technical specifications for electric bicycles accelerated the industry reshuffle and resulted anew round of industry shock. In addition, in the past two years, the bike sharing has been violently oscillating thebicycle industry and the upstream supply chain operations with capital advantages, due to the lack of profit modeland capital chain problems, its aftershocks continue to rattle the industry’s recovery. At the same time, as atraditional manufacturing industry, the bicycle industry also ushered in the “Made in China 2025” strategy, underthe guidance of the basic principles of “Innovation Driven, Quality First, Green Development, StructureOptimization, and Talent Based”, took the important opportunity to speed up the transformation and upgrading,ushered in the development opportunity of the implementation of the new national standards for electric bicycles,and also faced with the important challenges of e-commerce development impacts on channels, channelintegration and Internet+. China has the world’s largest production and marketing of electric bicycles, after yearsof development, electric bicycles have gradually become an important means of transportation for consumers oneveryday short-distance trips, 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, CBC has been closelyfollowing up the research on their technological development, application development, and commercial value for
a long period of time, and has determined the qualified suppliers for core components year by year. As one of thecore components of 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. The implementation of the new national standard forelectric bicycle safety technical specifications has comprehensively improved the safety performance of electricbicycles, and adjusted and improved technical indicators such as speed limits, vehicle quality, and pedaling ability.The new standard is close to people’s livelihood and serving people’s livelihood, which improved the applicationspace of lithium battery energy storage, and the lithium battery electric bicycle is ushering in a new stage ofdevelopment.
In the gold and jewelry industry, in the context of China’s sustained rapid economic growth and rising per capitaincome levels, in addition to meeting the need for keeping the value, the jewelry consumption is also arequirement for people to pursue fashion and show personality. At present, China is one of the world’s largest,most important, and fastest-growing jewellery markets, the consumption of many jewellery categories ranks in theforefront of the world, among which the sales of gold, silver, platinum, jade, pearls and other products rank first inthe world. China’s jewelry gold industry market has formed a three-legged pattern of domestic, Hong Kong andforeign brands, and the market shares continue to be concentrated. At present, China’s per capita jewelryconsumption is still far lower than that of developed countries, and our jewelry gold consumption market still hasa lot of room for improvement, but the market competition is fierce. In August 2019, the company invested in theestablishment of a holding subsidiary, Shenzhen Xinsen Jewelry and Gold Supply Chain Co., Ltd., and began toget involved in the jewelry gold supply chain business.
2. Future development opportunity and new yearly business plan of the Company:
With the fierce market competition, new development opportunities are also formed. At the end of 2013, theCompany completed the implementation of its restructuring plan and concluded its bankruptcy procedure, therebyimproving the legal environment its business faces with. On the basis of business work over the past few years,the business plan of the Company for 2020is:
(1) Continue to actively cooperate with shareholders and the board of directors to promote the reorganization ofthe company and promote the planning of non-public offering of shares.
(2) Reform and improve the internal management mechanism, decompose and implement the company's annualtask to each Distribution Company and regional manager, take the manager responsibility system, follow p monthby month, and roll the assessment.
(3) Strengthen the development of 3C-certified electric bicycles, mid-to-high-end bicycles and children bicycles,and strengthen the development and promotion of mid-to-high-end bicycles accessories and intelligent accessories.Strictly implement the access and exit mechanism for OEM factories and suppliers, strictly control the quality,and carry out personnel supplement and personnel training according to plan.
(4) In terms of the bicycle traditional mode business, the company endeavored to maintain the traditional business,
kept a close eye on the largest customers of the first echelon, focused on expanding the second echelon customers,actively promoted the expansion of its distribution network terminal construction, further expanded new markets,and supported new customer businesses; through the cooperation with the government procurement informationcenter, increased the follow-up work on group purchase orders; according to the new characteristics of marketdemand, we will actively promote the change of electric bicycles jointly with dealers, and organize some specialcompetitions through the club to publicize and promote the brand.
(5) In aspect of e-commerce retailing: based on the e-commerce work of last year, further train the company’se-commerce team, strive to improve the EMMELLE flagship store sales capabilities on all e-commerce platformsand the brand publicity coverage effects, improve the company's official website mall and WeChat mall, expandthe brand influence, promote the faster growth of network sales business. Improve the supporting work of offlinebusiness, bring the traditional network dealers, physical stores and OEM plants into the offline supporting systemof e-commerce business by reforming the mechanisms and sharing the benefits. In terms of channel construction,we strive to extend product sales to villages and towns through the rural taobao e-commerce platform.
(6)In terms of the lithium battery materials business, in 2020, we will increase the business development force,forge talent teams, enrich product lines, develop new customers, promote the new technology applications andincrease investment in new product development.
(7) Regarding the jewelry gold supply chain business, in 2020, the company will actively expand and integrate thejewelry supply chain in procurement channels, sales channels, and marketing resources, and lay out with the PearlRiver Delta as an important area of the jewelry supply chain business.
(8) Strengthen the background management and office automation, and improve the support degree of backgrounddepartments to front desk business.
3. Risk factors adverse to the Company’s development:
(1)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.
(2) In early 2020, in order to combat the COVID-19 epidemic and its influence, the social economy entered aspecial dilemma, operation of the Company has been blocked, upstream and downstream supply and sales linkshave been blocked.In the fave of the above problems, the central government and governments at all levels have taken multiplemeasures to stabilize the people’s livelihood, stabilize the enterprises and employment, the Company will strive tomaintain stability and seek development through increase the income and reduce the expenditures. In 2019,
combined with the actual situation on its own poor background after reorganization, on the one hand, the companyadhered to taking the development of traditional business model as the principle, carry out new products researchand development according to the new national standards, optimized and adjusted product structure and salesmodel transformation, actively expanded the e-commerce business model and realized the favorable operation ofthe e-commerce retail business according to the e-commerce transformation of business team and the costcontrollable mode of external contact and cooperation and internal guidance. And continues to expanding thelithium battery material business, rich the main business; On the basis of the establishment of a holding subsidiaryin 2019 and the newly launched jewelry gold supply chain business, according to the actual situation of businessdevelopment, in February 2020, it was decided to increase the capital of Shenzhen Xinsen Jewelry Gold SupplyChain Co., Ltd. to the same proportion to 20 million yuan to expand the business. On the one hand, it strives topromote the selection of the company’s restructuring party and plans to promote the non-public offering of shares,hoping to improve the company’s operating strength and development potential.X. Reception of research, communication and interview
1. In the report period, reception of research, communication and interview
√ Applicable □ Not applicable
Time | Way | Type | Basic situation index of investigation | |
Jan.-Mar. 2019 | Telephone communication | Individual | Consulting company restructuring problem | |
Apr.- Jun. 2019 | Telephone communication | Individual | Inquiry progress of the private placement | |
Jul.- Sept. 2019 | Telephone communication | Individual | Consulting company restructuring problem | |
Oct.-Dec. 2019 | Telephone communication | Individual | Inquiry progress of the private placement | |
Reception (times) | 10 | |||
Number of hospitality | 0 | |||
Number of individual reception | 10 | |||
Number of other reception | 0 | |||
Disclosed, released or let out major undisclosed information | N |
Section V. Important Events
I. Profit distribution plan of common stock and capitalizing of common reserves planFormulation, Implementation and Adjustment of common stock Profit Distribution Policy Especially Cash Dividend policy duringthe Reporting Period
□ Applicable √ Not applicable
Profit distribution plan (pre-plan) of common stock and capitalizing of common reserves plan (pre-plan) in latest three years(including the reporting period)
Cash dividend of common stock in latest three years (including the reporting period)
In RMB
Year for bonus shares | Amount for cash bonus (tax included) | Net profit attributable to common stock shareholders of listed company in consolidation statement for bonus year | Ratio of the cash bonus in net profit attributable to common stock shareholders of listed company contained in consolidation statement | Proportion for cash bonus by other ways(i.e. share buy-backs) | Ratio of the cash bonus by other ways in net profit attributable to common stock shareholders of listed company contained in consolidation statement | Total cash bonus (including other ways) | Ratio of the total cash bonus (other ways included) in net profit attributable to common stock shareholders of listed company contained in consolidation statement |
2019 | 0.00 | -7,186,905.64 | 0.00% | 0.00 | 0.00% | 0.00 | 0.00% |
2018 | 0.00 | -1,591,968.91 | 0.00% | 0.00 | 0.00% | 0.00 | 0.00% |
2017 | 0.00 | 1,529,587.27 | 0.00% | 0.00 | 0.00% | 0.00 | 0.00% |
The Company gains profits in reporting period and the retained profit of common stock shareholders provided by parent company ispositive but no plan of cash dividend proposed of common stock
□ Applicable √ Not applicable
II. Profit distribution plan and capitalizing of common reserves plan for the Period
□ Applicable √ Not applicable
The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve either forthe year.
III. Implementation of commitment
1. Commitments completed in Period and those without completed till end of the Period from actualcontroller, shareholders, related parties, purchaser and companies
□ Applicable √ Not applicable
The Company has no commitments completed in Period and those without completed till end of the Period from actual controller,shareholders, related parties, purchaser and companies
2. Concerning assets or project of the Company, which has profit forecast, and reporting period still inforecasting period, explain reasons of reaching the original profit forecast
□ Applicable √ Not applicable
IV. Non-operational fund occupation from controlling shareholders and its related party
□ Applicable √ Not applicable
No non-operational fund occupation from controlling shareholders and its related party in period.V. Explanation from Board of Directors, Supervisory Committee and Independent Directors(if applicable) for “Qualified Opinion” that issued by CPA
√ Applicable □ Not applicable
On 11
th, May 2012, the largest shareholder and biggest creditor of the Company, Shenzhen Guosheng EnergyInvestment and Development Co., Ltd. applied to Shenzhen Municipal Intermediate People's Court for reformingthe Company 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. In late October, 2012, ShenzhenMunicipal 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) Mallesons andShenzhen ZhengYuan Liquidation Affairs Co., Ltd. as the custodians of the Company. At the same time, ShenzhenMunicipal Intermediate People's Court made (2012) Shenzhen Intermediate Court Po Zi No. 30-1 written decision,and approved the Company to manage property and business affairs by itself under the supervision of custodiansaccording to the law. On 5 November 2013, the Shenzhen Intermediate People’s Court (2012) Shen Zhong Fa PoZi No. 30-6 Civil Ruling Paper judged that approved the reorganization plan of the Company. On 27 December2013, the Civil Ruling Paper Shenzhen Intermediate People’s Court (2012) Shen Zhong Fa Po Zi No. 30-10 ruledthat the reorganization plan of CBC was completed and bankruptcy procedures of CBC 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 the
recombination 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 varyrelated works actively and promote the reorganization work with all efforts.
VI. Particulars about the changes in aspect of accounting policy, estimates and calculationmethod compared with the financial report of last year
√ Applicable □ Not applicable
1.Change of accounting policy
(1) On 30 April 2019, the Ministry of Finance issued the Notice on Revision and Issuance of 2019 FinancialStatement Format for General Corporate (Cai Kuai [2019] No.6), format of the financial statement has beenrevised. The Revision and Issued of 2018 Financial Statement Format for General Corporate (Cai Kuai [2018]No.15) repeal at the same time. Main impact are as:
Content and reasons for accounting policy changes | Item and amount impacted |
”Note receivable and account receivable” is divide into Account receivable and Note receivable for presentation | In consolidate balance sheet, the note receivable at end of 2019 recorded as 580,000.00 yuan, account receivable recorded as 38,616,523.93 yuan; note receivable at end of 2018 recorded as 0.00 yuan and account receivable recorded as 29,007,509.02 yuan. In balance sheet of parent company, the note receivable at end of 2019 recorded as 580,000.00 yuan, account receivable recorded as 32,843,536.70 yuan; note receivable at end of 2018 recorded as 0.00 yuan and account receivable recorded as 12,827,954.16 yuan |
”Note payable and account payable” is divide into Account payable and Note payable for presentation | In consolidate balance sheet, the note payable at end of 2019 recorded as 0.00 yuan, account payable recorded as 10,191,385.23 yuan; note payable at end of 2018 recorded as 2,000,000.00 yuan and account payable recorded as 9,979,010.69 yuan In balance sheet of parent company, the note payable at end of 2019 recorded as 0.00 yuan, account payable recorded as 9,002,524.60 yuan; note payable at end of 2018 recorded as 0.00 yuan and account payable recorded as 0.00 yuan |
”Less: Loss of assets impairment” adjusted to “Add: Loss of assets impairment (Loss is listed with “-”)” | In consolidate profit statement, the loss of assets impairment for 2019 recorded as -499,175.17 yuan while recorded as -1,200,526.41 yuan for year of 2018. In profit statement of the parent company, the loss of assets impairment for 2019 recorded as 0.00 yuan while recorded as 14,209.76 yuan for year of 2018. |
The government grants actually received by the enterprise, are | In consolidate cash flow statement, the government grants |
listed under the item of “Cash received from other operating activities” whether it is related to assets or income. | reckoned in “Cash received from other operating activities” for year of 2019 recorded as 0.00 yuan while recorded as 0.00 yuan for year of 2018. In cash flow statement of parent company, the government grants reckoned in “Cash received from other operating activities” for year of 2019 recorded as 0.00 yuan while recorded as 0.00 yuan for year of 2018. |
(2) Change of classification and measurement of financial instrument
In 2017, the Ministry of Finance revised the Accounting Standards for Business Enterprise No. 22- Recognitionand Measurement of Financial Instruments, Accounting Standards for Business Enterprise No. 23- Transfer ofFinancial Assets, Accounting Standards for Business Enterprise No. 24- Hedge Accounting and AccountingStandards for Business Enterprise No. 37- Presentation of Financial Instruments. The above mentioned standardsare implemented since 1 Jan. 2019. according to the standards, for financial instruments that have not beenrecognized as of the date of implementation, if the previous recognition and measurement are inconsistent withthe requirements of the revised standards, the amount of retained earnings at the beginning of the year and otherrelevant items in the financial statements shall be adjusted according to the cumulative impact number, and theinformation of the comparable period shall not be adjusted. Main impacts are as:
Content and reasons for accounting policy changes | Item and amount impacted |
When implemented the new financial instrument standard, the financial assets debt instrument measured by fair value and with variation reckoned into current gains/losses will listed under the item of “Trading financial assets” | No impact on the financial statement while implemented the new standards |
When implemented the new financial instrument standard, the bad debt loss accrual from account receivable and other account receivable will listed under the item of “Credit impairment loss (loss is listed with”-”)” | Credit impairment loss in consolidate profit statement for year of 2019 recorded as -2,533,065.87 yuan. Credit impairment loss in profit statement of the parent company for year of 2019 recorded as -2,150,073.55 yuan. |
(3) On 7 December 2018, the Ministry of Finance issued the Notice on Revised Accounting Standards forBusiness Enterprise No.21- Lease (Cai Kuai [2018]No.35). according to the cumulative impact, the retainedearnings at beginning of the year and other relevant items in the financial statement of the lease liability of theright to use assets shall be adjusted, and the information of the comparable period shall not be adjusted. No impacton the financial statement while implemented the new standards.
(4) On 9 May 2019, the Ministry of Finance issued the Notice on Revised Accounting Standards for BusinessEnterprise No.7- Non-monetary assets exchange (Cai Kuai [2019]No.8), the exchange of non-monetary assetsbetween the implementation date of this standard on 1 Jan. 2019 (solstice) shall be adjusted according to thestandard. The exchange of non-monetary assets incurred before 1 Jan. 2019 shall not be adjusted retroactively. Noimpact on the financial statement while implemented the new standards.
VII. Major accounting errors within reporting period that needs retrospective restatement
□ Applicable √ Not applicable
No major accounting errors within reporting period that needs retrospective restatement for the Company in the period.VIII. Compare with last year’s financial report; explain changes in consolidation statement’sscope
√ Applicable □ Not applicable
In August 2019, the Company and Shenzhen Zuankinson Jewelry Co., Ltd jointly established a Shenzhen XinsenJewelry and Gold Supply Chain Co., ltd. Of which, the Company holds 65% equity, while 35% equity held byShenzhen Zuankinson Jewelry Co., Ltd, the enterprise was included in the consolidate scope since establishment.IX. Appointment and non-reappointment (dismissal) of CPAAccounting firm appointed
Name of domestic accounting firm | Baker Tilly China CPA (LLP) |
Remuneration for domestic accounting firm (in 10 thousand Yuan) | 45 |
Continuous life of auditing service for domestic accounting firm | 4 |
Name of domestic CPA | Chen Zhigang, Zhang Lei |
Continuous life of auditing service for domestic accounting firm | 4 |
Re-appointed accounting firms in this period
□ Yes √No
Appointment of internal control auditing accounting firm, financial consultant or sponsor
√ Applicable □ Not applicable
In the year, the Company engaged Baker Tilly China CPA (LLP) as the auditing organ for internal control of the Company for year of2019, charges amounted as 150,000 Yuan. In 2016, Dongwu Securities are appointed as the finance consultant of the Company forprivately placement of shares, relevant works are still in promotion in the year.
X. Particular about suspended and delisting after annual report disclosed
□ Applicable √ Not applicable
XI. Bankruptcy reorganization
□ Applicable √ Not applicable
No bankruptcy reorganization for the Company in reporting period.
XII. Significant lawsuits and arbitration of the Company
□Applicable √Not applicable
No significant lawsuits and arbitration occurred in the reporting period.
XIII. Penalty and rectification
□ Applicable √ Not applicable
No penalty and rectification for the Company in reporting period.XIV. Integrity of the company and its controlling shareholders and actual controllers
□ Applicable √ Not applicable
XV. Implementation of the company’s stock incentive plan, employee stock ownership plan orother employee incentives
□ Applicable √ Not applicable
The Company had no implementation of the company’s stock incentive plan, employee stock ownership plan or other employeeincentives in the reporting period.XVI. Major related transaction
1. Related transaction with routine operation concerned
√ Applicable □ Not applicable
Related party | Relationship | Type of related transaction | Content of related transaction | Pricing principle | Related transaction price | Related transaction amount (in 10 thousand Yuan) | Proportion in similar transactions | Trading limit approved (in 10 thousand Yuan) | Whether over the approved limited or not (Y/N) | Clearing form for related transaction | Available similar market price | Date of disclosure | Index of disclosure |
Shenzhen Zuankinson Jewelry and gold supply chain Co., Ltd. | 35% shareholders of the Company’s controlled subsidiaries | Related Transaction with day-to-day operation concerned | Procurement of raw materials, sales of goods | In accordance with the principle of fairness and justice, the | Market price | 272.98 | 59.10% | 1,000 | N | Cash settlement | 272.98 | 2019-12-17 | Notice on Forecast of Day-to-day Related Transactions (No.: |
market price as the basis for pricing | 2019022) | |||||||||
Total | -- | -- | 272.98 | -- | 1,000 | -- | -- | -- | -- | -- |
Detail of sales return with major amount involved | N/A | |||||||||
Report the actual implementation of the daily related transactions which were projected about their total amount by types during the reporting period (if applicable) | 272.98 million yuan | |||||||||
Reasons for major differences between trading price and market reference price | N/A |
2. Related transactions by assets acquisition and sold
□ Applicable √ Not applicable
No related transactions by assets acquisition and sold for the Company in reporting period.
3. Main related transactions of mutual investment outside
□ Applicable √ Not applicable
No main related transactions of mutual investment outside for the Company in reporting period.
4. Contact of related credit and debt
√ Applicable □ Not applicable
Whether exist non-operating contact of related credit and debt or not
√Yes □No
Claim receivable from related party
Related party | Relationship | Causes of formation | 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) | Balance at period-end(10 thousand Yuan) |
Shenzhen Zuankinson Jewelry and | 35% shareholders of the | Procurement of raw materials, | N | 0 | 272.98 | 242.8 | 0.00% | 0 | 30.18 |
gold supply chain Co., Ltd. | Company’s controlled subsidiaries | sales of goods | |
Influence on operation result and financial statue of the Company from related credit | No influence |
Debts payable to related party
Related party | Relationship | Causes of formation | 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) | Balance at period-end(10 thousand Yuan) |
Shenzhen Guosheng Energy Investment Development Co., Ltd. | Large shareholder | Subsidiary Emmelle loan | 650 | 0 | 0 | 0.00% | 0 | 650 |
Influence on operation result and financial statue of the Company from related debts | No influence |
5. Other related transactions
□ Applicable √ Not applicable
The company had no other significant related transactions in reporting period.
XVII. Significant contract and implementations
1. Trusteeship, contract and leasing
(1) Trusteeship
□ Applicable √ Not applicable
No trusteeship for the Company in reporting period.
(2) Contract
□ Applicable √ Not applicable
No contract for the Company in reporting period.
(3) Leasing
□ Applicable √ Not applicable
No leasing for the Company in reporting period.
2. Major guarantees
□ Applicable √ Not applicable
No guarantee for the Company in reporting period.
3. Entrust others to cash asset management
(1) Trust financing
□ Applicable √ Not applicable
No trust financing for the Company in reporting period.
(2) Entrusted loans
□ Applicable √ Not applicable
The company had no entrusted loans in the reporting period.
4. Other material contracts
□ Applicable √ Not applicable
No other material contracts for the Company in reporting period.XVIII. Social responsibility
1. Performance of social responsibility
Nil
2. Execution of social responsibility of targeted poverty alleviation
(1) Targeted poverty alleviation
Nil
(2) Summary of 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) | —— | —— |
(4) Subsequent precision poverty alleviation program
Nil
3. Environmental protection
Listed company and its subsidiary belongs to the key pollution enterprise listed by Department of Environmental ProtectionNoNilXIX. Explanation on other significant events
√ Applicable □ Not applicable
1.Planning of non-public issue of shares
In July 2016, the Company started to plan a non-public issue of shares with proceeds to be utilized to acquirematerial assets. The Plan on Non-public Issue of A shares in 2016 was considered and approved by the Board ofthe Company. Based on the due diligence, audit, assessment and business negation with intermediates, taking intoaccount the conditions of capital market and actual conditions of the Company, the Board of the Companyconsidered and approved the Proposal Relating to Adjusting the Plan of non-public of A Shares, the Explanationon non-public of A-shares for year of 2016 Amendment, the Plan on Non-public Issue of A shares in 2016(amended), the Plan on Non-public Issue of A shares in 2016 (Second Amended) and Plan on Non-public Issue ofA shares in 2016 (Third Amended) from February 2017 to February 2018. According to the three revised drafts,the number of non-public offering of shares should 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 shouldnot exceed RMB 750 million, will be used for the following projects after deducting the issuance expenses: 1.RMB 680 million of funds for “online and offline marketing network platform construction and upgradingproject”; 2. RMB 70 million of funds for “R & D center construction project”. The issuing objects of thisnon-public offering include four specific investors which are Ruian Information, Zhisheng High-tech, WanshengIndustry and Beier High-tech. The subscription amount of Ruian Information does not exceed 250 million Yuan,and the number of subscribed shares does not exceed 36,756,529 shares; the subscription amount of ZhishengHigh-tech does not exceed 200 million Yuan, and the number of subscribed shares does not exceed 29,405,223shares; the subscription amount of Wansheng Industry and Beier High-tech respectively does not exceed 150million Yuan, and the number of subscribed shares does not exceed 22,053,917 shares respectively.
On April 21, 2020, the company convened the 19
th(provisional) board meeting of the tenth session of the board ofdirectors, and reviewed and approved the “Proposal on the Termination of Agreement for Signing a ConditionalShare Subscription Agreement (Second Revision) with the Original Subscription Object” and the “Proposal on thePlan for Non-public Issuance of A Shares of Shenzhen China Bicycle Company (Holdings) Limited”, etc. Thecompany terminated the non-public offering of shares of 2016 and launched the plan for non-public issuance of Ashares in 2020, and planned to raise funds with total amount not exceeding RMB 450 million by non-publicoffering of shares to 5 specific investors, i.e. Wansheng Industrial Holdings (Shenzhen) Co., Ltd., FuzhouZuankinson Jewelry Co., Ltd., Shenzhen Yilian Jinchuang Technology Co., Ltd., Shenzhen Hualinglong JewelryCo., Ltd., and Shenzhen Jindaogu Jewelry Co., Ltd., all raised funds will be used to supplement workingcapital after deducting the issuance expenses. The non-public offering plan still needs to be approved by thecompany’s shareholders’ meeting and the China Securities Regulatory Commission. Relevant work is in progress.
2. Outside investment to established a controlling subsidiary
On 12 August 2019, the Proposal of Investment to Established a Controlling Subsidiary was deliberated andapproved by the 14
th session (interim) of 10
thBOD, agreed that the Company and Shenzhen Zuankinson JewelryCo., Ltd jointly established the Shenzhen Xinsen Jewelry and Gold Supply Chain Co., ltd., of which, theCompany contributed 4.225 million yuan with 65% equity of Shenzhen Xinsen Jewelry and Gold Supply ChainCo., ltd held, and comes to the controlling shareholder of Shenzhen Xinsen Jewelry and Gold Supply Chain Co.,ltd; Zuankinson invested 2.275 million yuan with 35% equity of Shenzhen Xinsen Jewelry and gold Supply ChainCo., Ltd held.On 19 Feb. 2020, the Proposal on Increasing Capital to Controlling Subsidiary was deliberated and approved by
th Session (interim) of 10
thBOD, agreed that the Company and counter party- Shenzhen Zuankinson JewelryCo., Ltd to increase the capital of Shenzhen Xinsen Jewelry and Gold Supply Chain Co., ltd in the sameproportion. Of which, 8.775 million yuan increased by the Company while Shenzhen Zuankinson Jewelry Co.,Ltd increased 4.725 yuan. After capital increased, shareholding of the two parties are remain the same, theCompany still is the controlling shareholder of Shenzhen Xinsen Jewelry and gold Supply Chain Co., Ltd.
XX. Significant event of subsidiary of the Company
□ Applicable √ Not applicable
Section VI. Changes in Shares and Particulars about 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% | 3,957 | 0.00% | |||||
1. State-owned shares | 0 | 0.00% | 0 | 0.00% | |||||
2. State-owned legal person’s shares | 0 | 0.00% | 0 | 0.00% | |||||
3. Other domestic shares | 3,957 | 0.00% | 3,957 | 0.00% | |||||
Including: Domestic legal person’s shares | 0 | 0.00% | 0 | 0.00% | |||||
Domestic natural person’s shares | 3,957 | 0.00% | 3,957 | 0.00% | |||||
4. Foreign shares | 0 | 0.00% | 0 | 0.00% | |||||
Including: Foreign legal person’s shares | 0 | 0.00% | 0 | 0.00% | |||||
Foreign natural person’s shares | 0 | 0.00% | 0 | 0.00% | |||||
II. Unrestricted shares | 551,343,990 | 100.00% | 551,343,990 | 100.00% | |||||
1. RMB Ordinary shares | 302,981,008 | 54.95% | 302,981,008 | 54.95% | |||||
2. Domestically listed foreign shares | 248,362,982 | 45.05% | 248,362,982 | 45.05% | |||||
3. Overseas listed foreign shares | 0 | 0.00% | 0 | 0.00% | |||||
4. Others | 0 | 0.00% | 0 | 0.00% | |||||
III. Total shares | 551,347,947 | 100.00% | 551,347,947 | 100.00% |
Reasons for share changed
□ Applicable √ Not applicable
Approval of share changed
□ Applicable √ Not applicable
Ownership transfer of share changed
□ 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 for the Company 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
1. Security offering (without preferred stock) in Reporting Period
□ Applicable √ Not applicable
2. Changes of total shares and shareholders structure as well as explanation on changes of assets andliability structure
□ Applicable √ Not applicable
3. Existing internal staff shares
□ Applicable √ Not applicable
III. Particulars about shareholder and actual controller of the Company
1. Amount of shareholders of the Company and particulars about shares holding
In Share
Total common stock shareholders in reporting period-end | 50,884 | Total common stock shareholders at end of last month before annual report disclosed | 49,779 | Total preference shareholders with voting rights recovered at end of reporting period (if applicable) (found in note 8) | 0 | Total preference shareholders with voting rights recovered at end of last month before annual report | 0 |
disclosed (if applicable) (found in note 8) | ||||||||||
Particulars about shares held above 5% by shareholders or top ten shareholders | ||||||||||
Full name of Shareholders | Nature of shareholder | Proportion of shares held | Total shareholders at the end of report period | Changes in report period | Amount of restricted shares held | Amount of un-restricted shares held | Number of share pledged/frozen | |||
State of share | Amount | |||||||||
Shenzhen Guosheng Energy Investment Development Co., Ltd. | Domestic non-State-owned legal person | 11.52% | 63,508,747 | 0.00 | 0 | 63,508,747 | 0 | |||
UOB Koy Hian (Hong Kong) Co., Ltd. | Foreign legal person | 2.89% | 15,907,850 | 0.00 | 0 | 15,907,850 | 0 | |||
Guosen Securities (Hong Kong) brokerage Co., Ltd. | Foreign legal person | 2.52% | 13,909,425 | 0.00 | 0 | 13,909,425 | 0 | |||
Shenwan Hongyuan Securities (Hong Kong) Co., Ltd. | Foreign legal person | 1.20% | 6,626,116 | -5,000.00 | 0 | 6,626,116 | 0 | |||
Li Huili | Domestic nature person | 0.71% | 3,891,124 | 0.00 | 0 | 3,891,124 | 0 | |||
Xu Hongbo | Domestic nature person | 0.58% | 3,187,419 | 50,000 | 0 | 3,187,419 | 0 | |||
CMS Hong Kong Co., Ltd | State-owned legal person | 0.54% | 2,958,688 | -98,664 | 0 | 2,958,688 | 0 | |||
Ge Zhiqiong | Domestic nature person | 0.52% | 2,861,552 | 664,736.00 | 0 | 2,861,552 | 0 | |||
Special Account for Property Disposal of Bankrupt Enterprise of CBC | Domestic non-State-owned legal person | 0.47% | 2,602,402 | 0.00 | 0 | 2,602,402 | 0 | |||
Zhuorun Technology Co., Ltd. | Foreign legal person | 0.36% | 2,000,000 | 0.00 | 0 | 2,000,000 | 0 |
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 shareholders | Li Huili, spouse of the Ji Hanfei, the actual controller of he Company- Shenzhen Guosheng 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. | ||
Particular about top ten shareholders with un-restrict shares held | |||
Shareholders’ name | Amount of un-restrict 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. | 6,626,116 | Domestically listed foreign shares | 6,626,116 |
Li Huili | 3,891,124 | Domestically listed foreign shares | 3,891,124 |
Xu Hongbo | 3,187,419 | Domestically listed foreign shares | 3,187,419 |
CMS Hong Kong Co., Ltd | 2,958,688 | Domestically listed foreign shares | 2,958,688 |
Ge Zhiqiong | 2,861,552 | RMB common shares | 374,900 |
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 or consistent actors within the top 10 un-restrict shareholders and between top 10 un-restrict shareholders and top 10 shareholders | Li Huili, spouse of the Ji Hanfei, the actual controller of he Company- Shenzhen Guosheng 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 |
Whether top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held have a buy-backagreement dealing in reporting period
□ Yes √ No
The top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held of the Company have nobuy-back agreement dealing in reporting period.
2. Controlling shareholder of the Company
Nature of controlling shareholders: No controlling subjectType of controlling shareholders: Non-existentThe Company does not have the controlling shareholder.On 21 February 2017, we received a Letter of “Explanation on Relevant Event of CBC” from Shenzhen GuoshengEnergy Investment Development Co., Ltd. the letter said: since obtained controlling rights of the ShenzhenGuosheng Energy Investment Development Co., Ltd. (hereinafter referred to as Guosheng Energy) on 3 Jan. 2011,in view of Ji Hanfei is the first majority shareholder and largest creditor of CBC, and CBC facing a serious debtcrisis, Ji Hanfei initiative seeking an actual controller of CBC, by actively participate the shareholders generalmeeting of CBC, showing major influence on CBC for achieving actually controls of the Company in purpose ofresolving the debt crisis.
On 11th
, May 2012, the largest shareholder and biggest creditor of the Company, Shenzhen Guosheng EnergyInvestment and Development Co., Ltd. applied to Shenzhen Municipal Intermediate People's Court for reformingthe Company 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. In second half year of 2013, on thebasis of the investor interest adjustment scheme deliberated and approved by creditor’s meeting and investors’conference, Shenzhen Intermediate People’s Court approved the reorganization plan for CBC, the reorganization
plan of CBC completed on 27 December 2013 and close the bankruptcy proceedings of CBC. As a largestmajority shareholder and largest creditor of the Company, Guosheng Energy vote in favor on creditor’s meetingand investors’ conference, in respect of the investor interest adjustment scheme, and provided 5.39 million Yuan toCBC for claims settlement and maintain the assets of main business of CBC. Debts of the CBC solved byreorganization, net assets of CBC turns to positive value, the main business of bicycle maintained and achieved asteady development.Currently, CBC is planning a private placement for business promotion and transformation, optimize assetstructure, further to strengthen the Company and sustainable ability in development. Taking into account the debtproblem of CBC has been resolved, the Company needs supports from all over the shareholders, and based on theactual condition of development of Guosheng Energy and share-holding ratio, Ji Hanfei and Guosheng Energydecided to change the actually controller state to general investment, that is Ji Hanfei and Guosheng Energy, willnot participate in the operation management plan of CBC in future, and they have no plans to seeking an actualcontrolling rights of CBC in next 12 months eitherThe Shenzhen Guosheng Energy Investment Development will hold stock of the CBC and exercise shareholders’rights as a common investor.
Changes of controlling shareholders in reporting period
□Applicable √Not applicable
Controlling shareholders of the Company has no changes in the period.
3. Actual controller and persons acting in concert of the Company
Nature of actual controller: No actual controllerType of actual controller: Non-existentThe company does not have the actual controller.(I) Facts and reasons for the company's determination of the actual controller's alterationOn February 20, 2017, Ji Hanfei and Guosheng Energy made an “Explanation” to abandon the actual control ofthe Company, after Ji Hanfei made the declaration to abandon the actual control of the Company, the actualcontroller of the Company changed from Ji Hanfei to no actual control, the specific facts and reasons are asfollows:
1. The voting rights of Ji Hanfei to actually control the shares of the CompanyAccording to the “Security Holder Roster” issued by China Securities Depository and Clearing Co., Ltd.,Shenzhen Branch and the documents publicly disclosed by Shenzhen China Bicycle, up to December 31, 2016, JiHanfei held 63,508,747 shares of the Company’s A-Shares through Guosheng Energy, and his spouse, Li Huili,held 3,891,124 shares of the Company’s B-Shares, so Ji Hanfei totally controlled 67,399,871 shares of theCompany’s voting shares, accounting for 12.22% of the total number of shares of the Company. Ji Hanfei actuallycontrolled no more than 30.00% of the Company’s voting rights and had no control over the Company's generalmeeting of shareholders.
2. Ji Hanfei’s control to the Company's board of directors
According to the Resolution Announcement of the 18
th
session of 8
thBoard of Directors and the ResolutionAnnouncement of the First Extraordinary General Meeting of 2013 publicly disclosed by the Company andconfirmed by the Company and Guosheng Energy, the directors of the current board of directors of the Companyshould be nominated by the eighth session of board of directors, Guosheng Energy did not nominate the currentboard of directors for the Company.Therefore, Ji Hanfei has not restructured the board of directors of the Company by controlling the Company’svoting shares after obtaining the control power of Guosheng Energy, and has not actually dominated over half ofthe members of the board of directors of the Company.According to the Resolution Announcement of the 24
th session of the 9
thBoard of Directors announced on April27, 2017 by the Company, the ninth session of board of directors of the Company reviewed and passed thefollowing proposals concerning the candidates for the tenth session of board of directors:
(1) Passed the Proposal on Nominating Candidates for Directors of the Tenth Session of Board of Directors,agreed the current board of directors to nominate Mr. Li Hai, Mr. Yao Zhengwang, Mr. Cao Fang, Mr. Yang Fenbo,Mr. Sun Longlong and Mr. Zhong Hua as the candidates for the directors of the tenth session of board of directorsof the company and participate in the election of the general shareholders’ meeting as the term of office of thedirector of the 9
thsession of board of directors of the company has expired.
(2) Passed the Proposal on Nominating Candidates for Independent Directors of the Tenth Session of Board ofDirectors, agreed the current board of directors to nominate Mr. Song Xishun, Mr. Zhang Zhigao and Ms. YangHao as the candidates for the independent directors of the tenth session of board of directors of the company as theterm of office of the director of the 9
th
session of board of directors of the company has expired, and submitted theproposal to the Shenzhen Stock Exchange for review, the candidates can only participate in the election of thegeneral shareholders’ meeting when there is no objection to the review.
According to the Company’s explanation and the announcement document of the 24
thsession of 9
thboard ofdirectors of the Company, the candidates for the tenth session of board of directors should be nominated by theninth session of board of directors, the Company did not receive the nomination of candidates for the tenth sessionof board of directors from Guosheng Energy.
According to the explanation of the Company and Guosheng Energy and the review to the resume of the directorcandidates announced by the ninth session of board of directors of the Company, in addition to Yao Zhengwang,serving as a supervisor of Guojun Energy, the above mentioned director candidates had no related relationshipswith Guosheng Energy and Ji Hanfei.
In conclusion, even the stockholders’ meeting of the Company considered and agreed the above-mentioneddirector candidate to serve as the directors of the tenth session of the board of directors of the Company, Ji Hanfeiand Guosheng Energy had not actually dominated over half of the members of the tenth session of board ofdirectors of the Company.
3. Ji Hanfei’s significant influence on the general meeting of shareholders of the CompanyOn October 12, 2012, the Shenzhen Intermediate People's Court issued the “Civil Ruling” of “(2012) SZFPZ No.30” to accept the application for the reorganization of the Company by Guosheng Energy. On December 27, 2013,Shenzhen Intermediate People's Court issued the “Civil Ruling” of “(2012) SZFPZ No. 30-10”, which ruled thatthe implementation of the Company’s reorganization plan was completed and the Company’s bankruptcyproceedings ended. According to the explanation of Guosheng Energy and the inspection of bankruptcy andrestructuring documents, Guosheng Energy had actively participated in the meeting of creditors for theCompany’s bankruptcy and reorganization and had provided interest-free loan support to the Company during thebankruptcy and reorganization, which had a significant influence on the Company’s general meeting ofshareholders. .
On February 20, 2017, Ji Hanfei and Guosheng Energy issued the “Explanation”: “Since Ji Hanfei obtained thecontrol power of Guoji Energy on January 3, 2011, in view of the fact that it was the Company’s largestshareholder and largest creditor and the Company faced serious debt crisis for a long time, Ji Hanfei activelysought the actual controller status of the Company and exerted a significant influence on the Company by activelyparticipating in the Company’s general meeting of shareholders so as to realize the actual control of the Companyand then strive to promote and solve the Company's debt crisis properly."
Therefore, from January 3, 2011 to February 19, 2017, Ji Hanfei had a subjective purpose for actually controllingthe Company.After Ji Hanfei made a clear declaration on Feb. 20, 2017 to abandon the actual control of the Company, Ji Hanfeidid not subjectively attempt to influence the general meeting of stockholders of the Company by seeking theactual control rights. Objectively, the Company’s voting rights dominated by Ji Hanfei did not exceed 30.00% andhe did not nominate more than half of the directors of the Company’s board of directors, Ji Hanfei could noteffectively control the Company’s general meeting of shareholders and the board of directors.
According to the “Announcement on the Resolutions of the 24
th
session of 9
thBoard of Directors” announced bythe Company on April 27, 2017 and confirmed by the Company, Ji Hanfei and Guosheng Energy, Ji Hanfei andGuosheng Energy didn’t not nominate any candidate for the directors of the tenth session of board of directors tothe Company after Ji Hanfei and Guosheng Energy made the declaration to abandon the control power.
In view of the above, the Company considered that the proportion of the Company’s shares actually controlled byJi Hanfei was relatively low, which was not sufficient to control the general meeting of shareholders or make asignificant impact on the general meeting of shareholders, and he had promised to give up the right of control tothe company, the Company has no actual controller since February 20, 2017.
The sponsor institutions and law firms engaged by the company for the non-public offering of shares have
checked this issue and made clear opinions to support.
Whether has the shareholder with over 10% stock held in ultimate controlling standards or not
√ Yes □ No
Legal personShare holding in ultimate control standards
Shareholder | Legal person/person in charge of the unit | Date of foundation | Organization code | Main operation business |
Shenzhen Guosheng Energy Investment Development Co., Ltd. | Ji Hanfei | 2005-04-26 | 91440300774115792 | Industry development, domestic commerce, materials supply and sale (excluding specially run, controlled and sold merchandises) |
Equity of the listed enterprise in and out of China controlled by the shareholders in ultimate control standards in the period | N/A |
Changes of actual controller in reporting period
□Applicable √ Not applicable
Actual controller of the Company has no changes in the periodProperty right and controlling relationship between the actual controller and the Company is as follow:
Actual controller controlling the Company by entrust or other assets management
□ Applicable √ Not applicable
4. Particulars about other legal person shareholders with over 10% shares held
□ Applicable √ Not applicable
5. Limitation and reducing the holdings of shares of controlling shareholders, actual controllers,restructuring side and other commitment subjects
□ Applicable √ Not applicable
Section VII. Preferred Stock
□ Applicable √ Not applicable
The Company had no preferred stock in the Period.
Section VIII. Convertible Bonds
□ Applicable √ Not applicable
The Company had no convertible bonds in the Period.
Section IX. Particulars about Directors, Supervisors, Senior
Executives and EmployeesI. Changes of shares held by directors, supervisors and senior executives
Name | Title | Working status | Sex | Age | Start dated of office term | End date of office term | Shares held at period-begin (Share) | Amount of shares increased in this period (Share) | Amount of shares decreased in this period (Share) | Other changes (share) | Shares held at period-end (Share) |
Li Hai | Director | Currently in office | M | 51 | 2010-08-26 | 2020-06-28 | 0 | 0 | 0 | 0 | 0 |
President | Currently in office | M | 51 | 2013-09-26 | 2020-06-28 | 0 | 0 | 0 | 0 | 0 | |
Chairman | Currently in office | M | 51 | 2015-04-15 | 2020-06-28 | 0 | 0 | 0 | 0 | 0 | |
Yao Zhengwang | Director | Currently in office | M | 45 | 2010-08-26 | 2020-06-28 | 0 | 0 | 0 | 0 | 0 |
Cao Fang | Director | Currently in office | M | 46 | 2010-08-26 | 2020-06-28 | 0 | 0 | 0 | 0 | 0 |
Yang Fenbo | Director | Currently in office | M | 63 | 2006-06-30 | 2020-06-28 | 0 | 0 | 0 | 0 | 0 |
Sun Longlong | Director | Currently in office | M | 47 | 2017-06-29 | 2020-06-28 | 0 | 0 | 0 | 0 | 0 |
Secretary of Board | Currently in office | M | 47 | 2012-05-17 | 2020-06-28 | 0 | 0 | 0 | 0 | 0 | |
CFO | Currently in office | M | 47 | 2017-05-22 | 2020-06-28 | 0 | 0 | 0 | 0 | 0 | |
Zhong Hua | Director | Currently in office | M | 56 | 2017-06-29 | 2020-06-28 | 0 | 0 | 0 | 0 | 0 |
Yang Lan | Independent director | Currently in office | F | 51 | 2017-06-29 | 2020-06-28 | 0 | 0 | 0 | 0 | 0 |
Song Xishun | Independent | Currently in office | M | 57 | 2017-06-29 | 2020-06-28 | 0 | 0 | 0 | 0 | 0 |
director | |||||||||||
Zhang Zhigao | Independent director | Currently in office | M | 55 | 2017-06-29 | 2020-06-28 | 0 | 0 | 0 | 0 | 0 |
Li Xiang | The convener of the board of supervisors | Currently in office | M | 46 | 2014-06-27 | 2021-02-12 | 0 | 0 | 0 | 0 | 0 |
Zheng Zhonghuan | Supervisor | Currently in office | M | 58 | 2011-06-27 | 2021-02-12 | 5,276 | 0 | 0 | 0 | 5,276 |
Li Jialin | Staff Supervisor | Currently in office | M | 59 | 2014-05-22 | 2021-02-12 | 0 | 0 | 0 | 0 | 0 |
Total | -- | -- | -- | -- | -- | -- | 5,276 | 0 | 0 | 0 | 5,276 |
II. Changes of directors, supervisors and senior executives
□ Applicable √ Not applicable
III. Post-holding
Professional background, major working experience and present main responsibilities in Company of directors,supervisors and senior executiveMr. Li Hai, born in 1969, graduated from Economic department of Shenzhen University in major of accounting;he took the turns of deputy manager of finance department, chief supervisor associate of finance department,secretary of the Board and vice president, etc. of the Company, and now he serves as chairman, legalrepresentative and president of the Company.
Mr. Yao Zhengwang, born in 1975, with bachelor degree of law, successively took the post of Supervisor ofSupervision Office, Deputy Manager of Sales Department, and Deputy Manager of Legal Affairs Department ofShenzhen Guomin Investment Development Co. Ltd. and deputy general manager of Administration Center ofCompliant Risk Control, as well as director, secretary of the Board and convener of supervisory committee ofCBC; now he serves as director of the Company and Leshan City Commercial Bank Co., Ltd..
Mr. Cao Fang, born in 1974, master degree; since May of 2007, he took post of item manager of marketing andmanagement department in headquarter of Life Insurance, associate of general manager of marketing andmanagement headquarter as well as general manager of market and business department, he acted as member ofplanning team of Life Insurance Branch in Guangdong. And subsequently served in strategy and development
center, Office of the Chairman, Supervision office; he serves as deputy GM of Shanghai Branch of Life Insurancesince March 2012 and person in charge of the sales management center in Funde Insurance Holding
Mr. Yang Fenbo, born in 1957, China senior economist with master degree of MBA and engineer, held the positionof minister of development department, concurrently minister of science and technology department, assistantgeneral manager, assistant to chairman, deputy chief engineer and chief engineer at Shenzhen Lionda Group; tookthe chairman and concurrently general manager of Guangdong Sunrise Holding Co., Ltd.; now, he is the chairmanof Shenzhen Liona Group Co., Ltd. and Shenzhen Qianhai Fu Rong Asset Management Co., Ltd.
Mr. Sun Longlong, born in 1973, graduated from Shanghai University of Finance and Economics in 1995 with abachelor degree, a bachelor of Economics. He successively worked as financial affairs in Shenzhen QiongjiaoIndustry Co., Ltd. and Shenzhen Solar Pipe Co., Ltd., he worked in the Company since May 1999, andsuccessively served as Deputy Manager of financial department, Manager, manager of comprehensivemanagement department, manager of enterprise management department, now he serves as Director, CFO andsecretary of the Board of the Company.
Mr. Zhonghua, born in 1964, undergraduate college, has an engineer title. He worked in technical section ofGuangdong Xingning Motormaker and Guangdong Xingning Mechatronic Industry Company; he worked in theperiod since December 1991, and have successively held the posts of director of the quality management dept.,director of testing center, deputy GM and GM of the quality management dept., now he serves as director of theCompany, and OEM management chief and GM of the quality management dept. in Shenzhen EMMELLEIndustrial Co., Ltd.
Ms. Yang Lan, born in 1969, is a master’s degree holder, a certified tax accountant, a certified appraiser, acertified public accountant, and an auditor. She successively served as a member of Guiyang Audit Bureau, thehead of Zhuhai BDO China Shu Lun Pan Certified Public Accountants, the head of Shanghai Lixin ChangjiangCertified Public Accountants, Zhuhai Branch, the head of Guangdong Lixin Changjiang Certified PublicAccountants, and the senior manager of Pan-China Certified Public Accountants (LLP), Guangdong Branch; andhas been serving as the deputy head of Guangdong Lixin Changjiang Certified Public Accountants since 2015.
Mr. Song Xishun, born in 1963, holds a master’s degree in Chinese from Xiamen University. He once served as ateacher of PLA University of Foreign Language, took office at Public Security Bureau of Xiamen City, XiamenCity Bureau of Culture, served as the deputy dean of Cultural Industry School of Xiamen University ofTechnology and an arbitrator of Xiamen City Personnel Dispute Arbitration Committee. He has been teaching atXiamen University of Technology since 2003, and currently serves as the deputy dean (worked since January2013, part-time) of Cultural Development Institute of Xiamen University of Technology, a lawyer (part-time) ofZhong Yin (Xiamen) Law Firm, an independent director (part-time) of the Jordan Sports Co., Ltd., an independentdirector (part-time) of Dehua Hengyi Art Ceramics Co., Ltd and Ankee Food Co., Ltd; and the vice chairman(part-time) of Xiamen Language Association.
Mr. Zhang Zhigao, born in 1965, is a bachelor of laws from Fudan University, a certified public accountant and acertified appraiser; he has been serving as a partner lawyer of Shanghai Xuan Lun Law Firm since 2007. He usedto be a technician of Shanghai Electrical Machinery Plant, a lecturer of Shanghai Lixin University of Commerce,and a partner lawyer of Shanghai Alshine Law Firm; served as a member of the twelfth
session of CPPCC ofXuhui District, Shanghai, an independent director of Shanghai Kai Kai Industrial Co., Ltd., an independentdirector of Shanghai Norcent Technology Development Co., Ltd., and an independent director of ShanghaiXingye Real Estate Co., Ltd.; he currently serves as a supervisor (part-time) of Shanghai Lingqing VentureCapital Investment Management Co., Ltd., a director (part-time) of Shanghai Chengxi Asset Management Co.,Ltd., and a director (part-time) of Zhongcheng Village Bank Co., Ltd. of Kuiwen District, Weifang City .
Mr. Li Xiang, born in 1974, holds a master’s degree. He once served as the secretary of the party committee, thedirector of the organization department of the party committee, and the manager of the human resourcesdepartment at Pacific Life Jiangxi Branch. Since March 2008, he has been serving as the deputy general managerof Shenzhen Guosheng Energy Investment Development Co., Ltd.
Mr. Zheng Zhonghuan, born in 1962, holds a bachelor’s degree and an engineer title. He once worked atShenzhen Light Textile Industry Company and Shenzhen Light Industry Company. Since October 1985, he hasbeen working at Shenzhen China Bicycle Company (Holdings) Limited, and once served as the deputy managerand manager of planning department, the manager of material department, and the manager of manufacturingdepartment; and he serves as a supervisor of the Company and the manager of the procurement managementdepartment of Shenzhen Emmelle Industrial Co., Ltd.
Mr. Li Jialin, born in 1961, a master degree with a title of senior engineer. He successively served as seniorengineer of the Company in electrical & mechanical engineering division, GM assistant of Hunan GuangdianMotorcycle Company, manager of the Company in H&R Dept. now he serves as Staff representative supervisor,commissioner of comprehensive office of the Company and person in charge of the labor union.
Post-holding in shareholder’s unit
√Applicable □ Not applicable
Name | Name of shareholder’s unit | Position in shareholder’s unit n | Start dated of office term | End date of office term | Received remuneration from shareholder’s unit (Y/N) |
Yao Zhengwang | Shenzhen Guosheng Energy Investment Development Co., Ltd. | Supervisor | 2006-10-09 | Y | |
Li Xiang | Shenzhen Guosheng Energy Investment Development Co., Ltd. | Deputy GM | 2008-03-01 | Y | |
Note of post-holding in | N/A |
Post-holding in other unit
√Applicable □ Not applicable
shareholder’sunitName
Name | Name of other units | Position in other unit | Start dated of office term | End date of office term | Received remuneration from other unit (Y/N) |
Yao Zhengwang | Leshan Commercial Bank Co., Ltd. | Supervisor | 2019-01-10 | 2022-01-09 | Y |
Cao Fang | Funde Insurance Holdings sales management center | Person in charge | 2016-06-01 | Y | |
Yang Fenbo | Shenzhen Lionda Group Co., Ltd. | Senior consultant | 2017-09-12 | Y | |
Yang Lan | Guangdong BDO Changjiang CPA Firm | Deputy director | 2001-04-01 | Y | |
Song Xishun | Xiamen University of Technology | Vice professor | 2003-09-01 | Y | |
Song Xishun | Zhong Yin (Xiamen) Law Firm | Part-time lawyer | 2003-09-01 | Y | |
Song Xishun | Jordan Sports Co., Ltd. | Independent director | 2015-02-01 | Y | |
Song Xishun | Ankee Food Co., Ltd | Independent director | 2018-01-06 | Y | |
Song Xishun | Dehua Hengyi Art Ceramic Co., Ltd. | Independent director | 2013-01-01 | Y | |
Zhang Zhigao | SHULUN & PARTNERS (SHANGHAI) | Partner lawyer | 2007-12-01 | Y | |
Zhang Zhigao | Shanghai Lingqing Venture Investment Management Co., Ltd. | Supervisor | 2009-07-21 | N | |
Zhang Zhigao | Shanghai Chengxi Asset Management Co., Ltd. | Director | 2010-05-10 | N | |
Zhang Zhigao | Zhongcheng Villiage Bank Co., Ltd. of Kuiwen District, Weifang City | Director | 2013-12-31 | Y | |
Note of post-holding in other unit | N/A |
Punishment of securities regulatory authority in recent three years to the company’s current and outgoing directors, supervisors andsenior management during the reporting period
□ Applicable √ Not applicable
IV. Remuneration for directors, supervisors and senior executives
Decision-making procedures, recognition basis and payment for directors, supervisors and senior executives
Decision procedure of remuneration of directors, supervisors, senior management | According to relevant rules of the Article of Association, the general meeting of shareholders decides remuneration of directors and supervisors. The Board of Directors decides senior management’s. |
Confirmation basis of remuneration of directors, supervisors and senior management | The Company refers to the position rank and comprehensive industry level. And then general meeting of shareholders approves compensation standard and allowance of independent directors. According to the "Interim Measures to Annual Performance Assessment of Executives" and performance evaluation standards the Company issues annual performance salary. |
Actual payment of remuneration of directors, supervisors and senior management | The Company strictly paid remuneration of directors, supervisors and senior management accordingly with decision procedure and confirmation basis. Total payment for remuneration of directors, supervisors and supervisors amounted to RMB 1,439,700 from January to December in 2019. |
Remuneration for directors, supervisors and senior executives in reporting period
In 10 thousand Yuan
Name | Title | Sex | Age | Post-holding status | Total remuneration obtained from the Company (before taxes) | Whether remuneration obtained from related party of the Company |
Li Hai | Director | M | 51 | Currently in office | 61.91 | N |
Sun Longlong | Director | M | 47 | Currently in office | 22.66 | N |
Zhong Hua | Director | M | 56 | Currently in office | 15.98 | N |
Zheng Zhonghuan | Supervisor | M | 58 | Currently in office | 13.76 | N |
Li Jialin | Staff Supervisor | M | 59 | Currently in office | 15.38 | N |
Yang Lan | Independent director | F | 51 | Currently in office | 4.76 | N |
Song Xishun | Independent director | M | 57 | Currently in office | 4.76 | N |
Zhang Zhigao | Independent director | M | 55 | Currently in office | 4.76 | N |
N |
Total | -- | -- | -- | -- | 143.97 | -- |
Delegated equity incentive for directors, supervisors and senior executives in reporting period
□ Applicable √ Not applicable
V. Particulars of workforce
1. Number of Employees, Professional composition, Education background
Employee in-post of the parent Company (people) | 44 |
Employee in-post of main Subsidiaries (people) | 15 |
The total number of current employees (people) | 59 |
The total number of current employees to receive pay (people) | 59 |
Retired employee’ s expenses borne by the parent Company and main Subsidiaries (people) | 0 |
Professional composition | |
Category of professional composition | Numbers of professional composition (people) |
Production personnel | 19 |
Sales personnel | 15 |
Technical personnel | 8 |
Financial personnel | 7 |
Administrative personnel | 10 |
Total | 59 |
Education background | |
Category of education background | Numbers (people) |
Undergraduate | 24 |
Junior college | 21 |
Other | 14 |
Total | 59 |
2. Remuneration Policy
Formulated the remuneration policy according to the position title and comprehensive industry salary standards
3. Training programs
Formulated the training programs according to the position title
4. Labor outsourcing
□ Applicable√ Not applicable
Section X. Corporate Governance
I. Corporate governance of the CompanyDuring the reporting period, the Company was strictly in accordance with the "Company Law", "Securities Law"as well as "Listing Corporation Management Standards" and other relevant laws, regulations and normativedocuments. We combined the actual situation, constantly improved the corporate governance structure, and striveto build a modern enterprise system. Operation, assembling and holding of general meeting of shareholders, theBoard of Directors and board of supervisors were strictly with relevant rules of procedure. Thus we protectedinterests of the Company. The actual situation of corporate governance structure was in accordance with therelease of normative documents about the listing Corporation management rules from China Securities RegulatoryCommission.
Is there any difference between the actual condition of corporate governance and relevant regulations about corporate governance forlisted company from CSRC?
□Yes √ No
There are no differences between the actual condition of corporate governance and relevant regulations about corporate governancefor listed company from CSRC.II. Independent of the Company relative to controlling shareholders’ in aspect of businesses,personnel, assets, organization and financeThe Company separate business, personnel, assets, institute and finance with largest shareholder or other related parties, owesindependent and completed self-operation ability.III. Horizontal competition
□ Applicable √ Not applicable
IV. In the report period, the Company held annual shareholders’ general meeting andextraordinary shareholders’ general meeting
1. Annual 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) |
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √ Not applicable
V. Responsibility performance of independent directors
1. The attending of independent directors to Board meetings and general meeting
The attending of independent directors to Board Meeting and general meeting | |||||||
Name of independent director | Times of Board meeting supposed to attend in the report period | Times of Board meeting Presence | Times of attending Board meeting by communication | Times of Board meeting entrusted presence | Times of Board meeting Absence | Absent the Board Meeting for the second time in a row (Y/N) | Times of attending shareholding meeting |
Yang Lan | 8 | 2 | 6 | 0 | 0 | N | 1 |
Song Xishun | 8 | 2 | 6 | 0 | 0 | N | 1 |
Zhang Zhigao | 8 | 2 | 6 | 0 | 0 | N | 0 |
Explanation of absent the Board Meeting for the second time in a rowNil
2. Objection for relevant events from independent directors
Independent directors come up with objection about Company’s relevant matters
□Yes √No
Independent directors has no objections for relevant events in reporting period.
3. Other explanation about responsibility performance of independent directorsThe opinions from independent directors have been adopted
√ Yes □ No
Explanation on advice that accepted/not accepted from independent directorsNil
VI. Duty performance of the special committees under the board during the reporting periodBoard of directors set up audit commission and remuneration and appraisal commission taking responsibility
based on Governance Rules of Listed Company, Article of Association as well as Procedure Rules of Board ofDirectors and other duties and rights various departments endowed.
As for compiling and audit on annual financial report were checked and communicated by Audit commission inaccordance with rules of Working Procedure of Annual Report of Audit Commission, and they submitted decisionto board of directors for approval.
Remuneration and appraisal commission of the Company, in reporting period, according to the “Interim Measureon Assessment Reward of Annual Performance for Senior Executives”, carry out evaluation on the managementteam members for operation works in 2018.
VII. Works from Supervisory CommitteeThe Company has risks in reporting period that found in supervisory activity from supervisory committee
□ Yes √ No
Supervisory committee has no objection about supervision events in reporting period.VIII. Examination and incentives of senior managementThe Company initially established the standard and incentive mechanism for open and transparent performance evaluation ondirectors, supervisors and management layer. The appointment of senior management staff was open and transparent, in accordancewith provisions of the law.IX. Internal Control
1. Details of major defects in IC appraisal report that found in reporting period
□Yes √ No
2. Appraisal Report of Internal Control
Disclosure date of full internal control evaluation report | 2020-04-28 |
Disclosure index of full internal control evaluation report | Appraisal Report of Internal Control 2019 of CBC released on Juchao website |
The ratio of the total assets of units included in the scope of evaluation accounting for the total assets on the company's consolidated financial statements | 100.00% |
The ratio of the operating income of units included in the scope of evaluation | 100.00% |
accounting for the operating income on the company's consolidated financial statements | ||
Defects Evaluation Standards | ||
Category | Financial Reports | Non-financial Reports |
Qualitative criteria | Material defect: (1) inefficiency of environment control; (2) inefficiency of internal supervision; (3) direct impact on major mistakes of investment decisions; (4) directly make the significant error in the financial statements; (5) violation of the laws, regulations, rules and other normative documents, resulting in investigation of the central government and regulatory agencies, and being sentenced to a fine or penalty, being restricted industry exit, canceling business license and being forced the closure of etc. Major defect: (1) indirect impact on major mistakes of investment decisions; (2) indirectly make the significant error in the financial statements; (3) Lack of important system; (4) violation of the laws, regulations, rules and other normative documents, resulting in investigation of the local government and regulatory agencies, and being sentenced to a fine or penalty, and being ordered to suspend business for rectification and cause the Company’s business stop of etc. General defect: other control defect besides material defect and major defect. | Material defect: (1) inefficiency of environment control; (2) inefficiency of internal supervision; (3) direct impact on major mistakes of investment decisions; (4) directly make the significant error in the financial statements; (5) violation of the laws, regulations, rules and other normative documents, resulting in investigation of the central government and regulatory agencies, and being sentenced to a fine or penalty, being restricted industry exit, canceling business license and being forced the closure of etc. Major defect: (1) indirect impact on major mistakes of investment decisions; (2) indirectly make the significant error in the financial statements; (3) Lack of important system; (4) violation of the laws, regulations, rules and other normative documents, resulting in investigation of the local government and regulatory agencies, and being sentenced to a fine or penalty, and being ordered to suspend business for rectification and cause the Company’s business stop of etc. General defect: other control defect besides material defect and major defect. |
Quantitative standard | 1. Potential loss or potential error of total profit: (1) General defect: less than or equal to pre-tax total profit of 3%, (2) Major defect: more than pre-tax total profit of 3%( and absolute amount more than RMB 0.5 million), (3) Material defect:: more than 5% of pre-tax total profit and absolute amount more than RMB 1 million; 2. Potential loss or potential error of operating income: (1) General defect: less than or | 1. Potential loss or potential error of total profit: (1) General defect: less than or equal to pre-tax total profit of 3%, (2) Major defect: more than pre-tax total profit of 3%( and absolute amount more than RMB 0.5 million), (3) Material defect:: more than 5% of pre-tax total profit and absolute amount more than RMB 1 million; 2. Potential loss or potential error of operating income: (1) |
equal to operating income of 1%, (2) Major defect: more than 1% of operating income and less than or equal to 3% of operation income, (3) Material defect:: more than 3% of operating income; 3. Potential loss or potential error of total assets: (1) General defect: less than or equal to 1% of total assets, (2) Major defect: more than 1% of total profit and less than or equal to 3% of total profit, (3) Material defect:: more than 3% of total profit | General defect: less than or equal to operating income of 1%, (2) Major defect: more than 1% of operating income and less than or equal to 3% of operation income, (3) Material defect:: more than 3% of operating income; 3. Potential loss or potential error of total assets: (1) General defect: less than or equal to 1% of total assets, (2) Major defect: more than 1% of total profit and less than or equal to 3% of total profit, (3) Material defect:: more than 3% of total profit | |
Amount of significant defects in financial reports | 0 | |
Amount of significant defects in non-financial reports | 0 | |
Amount of important defects in financial reports | 0 | |
Amount of important defects in non-financial reports | 0 |
X. Auditing report of internal control
√Applicable □ Not applicable
Deliberations in Internal Control Audit Report | |
We considers that China Bicycle Company (Holdings) Limited, in line with Basic Norms of Internal Control and relevant regulations, shows an effectiveness internal control of financial report in all major aspects dated 31 December 2019. | |
Disclosure details of audit report of internal control | Disclosed |
Disclosure date of audit report of internal control (full-text) | 2020-04-28 |
Index of audit report of internal control (full-text) | Audit Report of Internal Control of CBC Baker Tilly Zi [2020] No.21705 released on Juchao Website |
Opinion type of auditing report of IC | Standard unqualified |
Whether the non-financial report had major defects | No |
Carried out modified opinion for internal control audit report from CPA
□Yes √ No
The internal control audit report, issued by CPA, has concerted opinion with self-evaluation report, issued from the Board
√ Yes □ No
Section XI. Corporation Bonds
Whether or not the Company public offering corporation bonds in stock exchange, which undue or without payment in full atmaturity on the approval date for annual report disclosedNo
Section XII. Financial ReportI. Audit report
Type of audit opinion | an unqualified audit report with significant uncertainty of going concern |
Signing date of audit report | 2020-04-26 |
Name of audit institute | Baker Tilly China CPA (LLP) |
Number of audit report | Baker Tilly Zi [2020] No.: 21695 |
Name of CPA | Chen Zhigang, Zhang Lei |
Text of auditor’s Reportan unqualified audit report with significant uncertainty of going concern
To all shareholders of Shenzhen China Bicycle Company (Holdings) LimitedI. Auditing opinionsWe have audited the financial statement under the name of Shenzhen China Bicycle Company (Holdings) Limited(hereinafter referred to as CBC), including the consolidated and parent Company’s balance sheet of 31 December2019 and profit statement, and cash flow statement, and statement on changes of shareholders’ equity for the yearended, and notes to the financial statements for the year ended.In our opinion, the Company’s financial statements have been prepared in accordance with the EnterprisesAccounting Standards and Enterprises Accounting System, and they fairly present the financial status of theCompany and of its parent company as of 31 December 2019 and its operation results and cash flows for the yearended.II. Basis of opinionWe conducted our audit in accordance with the Auditing Standards for Certified Public Accountants of China. Ourresponsibilities under those standards are further described in the “Auditor’s Responsibilities for the Audit of theFinancial Statements” section of the auditor’s report. We are independent of the Company in accordance with theCertified Public Accountants of China’s Code of Ethics for Professional Accountants, and we have fulfilled ourother ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our opinion.III. Major uncertainty with continuous operation concernedWe bring to the attention of the users of the financial statements, as stated in note XV of the financial statements
under the name of CBC, China Bicycle Company has completed implementation of the restructuring plan dated27 December 2013 and terminate the bankruptcy proceedings, in which the condition of introduction of investorshas been set out with a view to restoring its ability to continue as a going concern and its sustainable profitabilitythrough asset restructuring. Up to the reporting date of auditing, the Company has not introduced any investor, butretained the business of bicycles so as to maintain its ability to continue as a going concern before the injection ofassets by investors. These events or circumstances indicate that there are significant uncertainties that may causesignificant doubts about the sustainable operation ability of China Bicycle Company. This matter does not affectthe published audit opinion.
IV. Key audit mattersKey audit matters are those matters that, in our professional judgment, were of most significance in our audit ofthe financial statements of the current period. These matters were addressed in the context of our audit of thefinancial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion onthese matters. The key audit matter we identified is as follows:
Key audit matters | Audit address |
1. Revenue recognized | |
CBC mainly engages in the sales of bicycles, electric vehicles and relevant materials. In 2019, the main business income of Shenzhen China Bicycle Company was RMB 76,022,687.75, all of which were generated from domestic sales. Shenzhen China Bicycle Company took the receipt of products as the time point for confirming the sales revenue. Due to the significant amount of operating income, the authenticity of the revenue and whether it should be included in the appropriate accounting period had a significant impact on the operating results of the company in 2019, and there might be potential misstatements. Therefore, we took the recognition of income as a key audit matter. Please refer to the accounting policies said in “24. Income” of “Note III Significant Accounting Policies and Accounting Estimate”, “22. Operation Revenue and Cost” of “Note VI Combined Financial Statement Annotation and “5. Operating Income and Costs” of “Note XV Financial Statement Annotation of Parent Company” of the financial statements annotation. | 1. Understand, test and evaluate the effectiveness of the internal control design and operation related to the company’s sales and collections. 2. Check the relevant provisions of customer contracts, and pay attention to the changes in pricing methods, acceptance methods, delivery locations and deadlines, settlement methods, etc., and assess whether the company’s recognition of income meets the requirements of the accounting standards and whether it is consistent with the disclosed accounting policies. 3. Inquire and understand the background information of major customers through open channels, such as business registration data, etc., confirm whether there are potential unrecognized related party relationships between the customer and the company and related parties. 4. Check the customer information (such as contact information, contact address, order time, etc.) of online marketing and evaluate the authenticity and rationality of online marketing; examine the market price of main materials and analyze the rationality of gross profit rate fluctuation. 5.Inform the main customers of the current transaction |
amount and fund balance by confirmation letters, and visitimportant customers to verify the authenticity of thecompany’s revenue recognition.
6. Check the contracts, warehouse receipts, delivery notes
and delivery receipt records of major customers
7. Check the delivery note within a certain period before and
after the balance sheet date, pay attention to the date ofreceipt, and confirm whether the revenue recognition isincluded in the correct accounting period.
Key audit matters
Key audit matters | Audit address |
2. Impairment of account receivable |
As of December 31, 2019, the balance of accounts receivable of Shenzhen China Bicycle Company was RMB 43,195,503.11, and the balance of bad debt provisions was RMB 4,578,979.18. As the balance of accounts receivable was significant and the assessment of bad debt provision involved the significant judgment of management, we regarded the impairment of accounts receivable as a key audit matter. Please refer to the accounting policies said in “12. Accounts Receivables” of Note III Significant Accounting Policies and Accounting Estimate, “2. Note receivable” and “3. accounts Receivables” of “Note VI Combined Financial Statement Annotation”, and “1. Note receivable “ and “2. accounts Receivables” of “Note XV Financial Statement Annotation of Parent Company” of the financial statements annotation. | 1. Understand and test the effectiveness of the internal control design and operation related to the accounts receivable management 2. Review the rationality and consistency of accounting policies of the bad debt provision for accounts receivable of the management, and review the rationality of major standards of single amount determined by the management. 3. For the accounts receivable with separate provision for bad debts, select samples to obtain management’s basis for estimating the estimated future recoverable amount, including customer credit record, default or delayed payment records, and actual repayment after date, and review its rationality. For the accounts receivable with provision for bad debts according to the aging analysis method, analyze the rationality of the accounting estimates for the bad-debt provision of the accounts receivable of China Bicycle Company, and select samples to test the accuracy of the ageing. |
V. Other informationThe management of CBC (the “Management”) is responsible for other information which includes the informationcovered in the Company’s 2018 annual report excluding the financial statement and our audit report.The audit opinion issued by us for the financial statement has not covered other information, for which we do notissue any form of assurance opinions.Considering our audit on financial statements, we are liable to read other information, during which, we shallconsider whether other information differs materially from the financial statements or that we understand duringour audit, or whether there is any material misstatement.
Based on the works executed by us, we should report the fact if we find any material misstatement in otherinformation. In this regards, we have nothing to report.VI. Responsibilities of management and those charged with governance for the financial statementsThe management is responsible for the preparation of the financial statements in accordance with the AccountingStandards for Enterprise to secure a fair presentation, and for the design, establishment and maintenance of theinternal control necessary to enable the preparation of financial statements that are free from materialmisstatement, whether due to fraud or error.In preparing the financial statements, the management is responsible for assessing the Company’s ability tocontinue as a going concern, disclosing matters related to going concern and using the going concern assumptionunless the management either intends to liquidate the Company or to cease operations, or has no realisticalternative but to do so.Those charged with governance are responsible for overseeing the Company’s financial reporting process.VII. Responsibilities of the auditor for the financial statementsOur objectives are to obtain reasonable assurance about whether the financial statements as a whole are free frommaterial misstatement, whether due to fraud or error, and to issue an audit report that includes our audit opinion.Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordancewith the CAS will always detect a material misstatement when it exists. Misstatements can arise from fraud orerror and are considered material if, individually or in the aggregate, they could reasonably be expected toinfluence the economic decisions of users taken on the basis of the financial statements.As part of an audit in accordance with the CAS, we exercise professional judgment and maintain professionalskepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient andappropriate to provide a basis for audit opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that areappropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates andrelated disclosures made by the management.
(4) Conclude on the appropriateness of the management’s use of the going concern assumption and, based on theaudit evidence obtained, whether a material uncertainty exists related to events or conditions that may castsignificant doubt on the Company’s ability to continue as a going concern. If we conclude that a materialuncertainty exists, we are required by the CAS to draw users’ attention in audit report to the related disclosures inthe financial statements or, if such disclosures are inadequate, to modify audit opinion. Our conclusions are basedon the information obtained up to the date of audit report. However, future events or conditions may cause theCompany to cease to continue as a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements, and whether the financialstatements represent the underlying transactions and events in a manner that achieves fair presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or businessactivities within the Company to express audit opinion on the financial statements. We are responsible for thedirection, supervision and performance of the group audit. We remain solely responsible for audit opinion.We communicate with those charged with governance regarding, among other matters, the planned scope andtiming of the audit and significant audit findings, including any significant deficiencies in internal control that weidentify during our audit.We also provide those charged with governance with a statement that we have complied with relevant ethicalrequirements regarding independence, and communicate with them all relationships and other matters that mayreasonably be thought to bear on our independence, and where applicable, related safeguard measures.From the matters communicated with those charged with governance, we determine those matters that were ofmost significance in the audit of the financial statements of the current period and are therefore the key auditmatters. We describe these matters in the auditor’s report unless law or regulation precludes public disclosureabout the matter or when, in extremely rare circumstances, we determine that a matter should not becommunicated in the auditor’s report because of the adverse consequences of doing so would reasonably beexpected to outweigh the public interest benefits of such communication.
Beijing·China 26 April 2020 | Chinese CPA: (Partner): | Chen Zhigang |
Chinese CPA: | Zhang Lei |
II. Financial statement
Unit in note of financial statement refers to CNY: RMB (Yuan)
1. Consolidated Balance Sheet
Prepared by Shenzhen China Bicycle Company (Holdings) Limited
2019-12-31
In RMB
Item | 2019-12-31 | 2018-12-31 |
Current assets: | ||
Monetary funds | 6,074,367.91 | 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 | 580,000.00 | |
Account receivable | 38,616,523.93 | 29,007,509.02 |
Receivable financing | ||
Accounts paid in advance | 938,425.99 | 13,799,753.60 |
Insurance receivable | ||
Reinsurance receivables | ||
Contract reserve of reinsurance receivable | ||
Other account receivable | 740,354.71 | 844,537.19 |
Including: Interest receivable | ||
Dividend receivable | ||
Buying back the sale of financial assets | ||
Inventories | 6,078,330.30 | 2,386,603.94 |
Contractual assets | ||
Assets held for sale | ||
Non-current asset due within one year | ||
Other current assets | 3,318,514.25 | 2,266,241.66 |
Total current assets | 56,346,517.09 | 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 | 4,191,503.33 | 3,502,807.32 |
Construction in progress | ||
Productive biological asset | ||
Oil and gas asset | ||
Right-of-use assets | ||
Intangible assets | 753,000.00 | 1,506,000.00 |
Expense on Research and Development | ||
Goodwill | ||
Long-term expenses to be apportioned | ||
Deferred income tax asset | 1,042,582.16 | 1,040,621.18 |
Other non-current asset | 400,000.00 | 400,000.00 |
Total non-current asset | 6,387,085.49 | 6,449,428.50 |
Total assets | 62,733,602.58 | 73,242,960.17 |
Current liabilities: | ||
Short-term loans | ||
Loan from central bank | ||
Capital borrowed | ||
Trading 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 | |
Account payable | 10,191,385.23 | 9,979,010.69 |
Accounts received in advance | 1,739,953.80 | 405,779.88 |
Contractual liability | ||
Selling financial asset of repurchase | ||
Absorbing deposit and interbank deposit | ||
Security trading of agency | ||
Security sales of agency | ||
Wage payable | 599,962.73 | 435,736.16 |
Taxes payable | 585,062.75 | 6,297,096.28 |
Other account payable | 38,175,654.98 | 37,144,872.42 |
Including: Interest payable | ||
Dividend payable | ||
Commission charge and commission payable | ||
Reinsurance payable | ||
Liability held for sale | ||
Non-current liabilities due within one year | ||
Other current liabilities | ||
Total current liabilities | 51,292,019.49 | 56,262,495.43 |
Non-current liabilities: | ||
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 | 51,292,019.49 | 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 | -1,204,736,075.56 | -1,197,549,169.92 |
Total owner’ s equity attributable to parent company | 7,119,396.30 | 14,306,301.94 |
Minority interests | 4,322,186.79 | 2,674,162.80 |
Total owner’ s equity | 11,441,583.09 | 16,980,464.74 |
Total liabilities and owner’ s equity | 62,733,602.58 | 73,242,960.17 |
Legal Representative: Li HaiPerson in charge of Accounting Works: Sun LonglongPerson in charge of Accounting Institution: Zhong Xiaojin
2. Balance Sheet of Parent Company
In RMB
Item | 2019-12-31 | 2018-12-31 |
Current assets: | ||
Monetary funds | 1,959,804.92 | 8,889,572.73 |
Trading financial assets | ||
Financial assets measured by fair value and with variation reckoned into current gains/losses | ||
Derivative financial assets |
Note receivable | 580,000.00 | |
Account receivable | 32,843,536.70 | 12,827,954.16 |
Receivable financing | ||
Accounts paid in advance | 76,937.00 | 13,798,452.48 |
Other account receivable | 485,062.44 | 380,925.78 |
Including: Interest receivable | ||
Dividend receivable | ||
Inventories | 1,333,374.72 | |
Contractual assets | ||
Assets held for sale | ||
Non-current assets maturing within one year | ||
Other current assets | 2,830,705.01 | 2,130,677.11 |
Total current assets | 40,109,420.79 | 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 | 4,235,379.73 | 10,379.73 |
Investment in other equity instrument | ||
Other non-current financial assets | ||
Investment real estate | ||
Fixed assets | 3,813,708.80 | 2,995,407.48 |
Construction in progress | ||
Productive biological assets | ||
Oil and natural gas assets | ||
Right-of-use assets | ||
Intangible assets | 753,000.00 | 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 | 9,202,088.53 | 4,911,787.21 |
Total assets | 49,311,509.32 | 42,939,369.47 |
Current liabilities | ||
Short-term borrowings | ||
Trading financial liability | ||
Financial liability measured by fair value and with variation reckoned into current gains/losses | ||
Derivative financial liability | ||
Notes payable | ||
Account payable | 9,002,524.60 | |
Accounts received in advance | 572,687.18 | 327,632.18 |
Contractual liability | ||
Wage payable | 507,738.35 | 151,598.60 |
Taxes payable | 27,797.28 | 5,416,117.27 |
Other accounts payable | 36,803,498.12 | 28,967,052.96 |
Including: Interest payable | ||
Dividend payable | ||
Liability held for sale | ||
Non-current liabilities due within one year | ||
Other current liabilities | ||
Total current liabilities | 46,914,245.53 | 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 | 46,914,245.53 | 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 | -1,209,458,208.07 | -1,203,778,503.40 |
Total owner’s equity | 2,397,263.79 | 8,076,968.46 |
Total liabilities and owner’s equity | 49,311,509.32 | 42,939,369.47 |
3. Consolidated Profit Statement
In RMB
Item | 2019 | 2018 |
I. Total operating income | 76,022,687.75 | 119,906,950.34 |
Including: Operating income | 76,022,687.75 | 119,906,950.34 |
Interest income | ||
Insurance gained | ||
Commission charge and commission income | ||
II. Total operating cost | 80,986,694.86 | 121,010,900.34 |
Including: Operating cost | 68,681,471.12 | 108,071,430.05 |
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 | 59,405.21 | 727,636.82 |
Sales expense | 3,178,476.39 | 5,933,231.41 |
Administrative expense | 6,409,465.59 | 6,627,286.22 |
R&D expense | 2,753,277.72 | |
Financial expense | -95,401.17 | -348,684.16 |
Including: Interest expenses | ||
Interest income | 110,834.04 | 369,745.70 |
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 “-”) | ||
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 “-”) | -2,533,065.87 | |
Losses of devaluation of asset (Loss is listed with “-”) | -499,175.17 | -1,200,526.41 |
Income from assets disposal (Loss is listed with “-”) | ||
III. Operating profit (Loss is listed with “-”) | -7,996,248.15 | -2,304,476.41 |
Add: Non-operating income | 6,259,839.85 | 4,634,304.77 |
Less: Non-operating expense | 6,065,148.83 | 4,458,892.86 |
IV. Total profit (Loss is listed with “-”) | -7,801,557.13 | -2,129,064.50 |
Less: Income tax expense | 12,324.52 | -248,558.72 |
V. Net profit (Net loss is listed with “-”) | -7,813,881.65 | -1,880,505.78 |
(i) Classify by business continuity | ||
1.continuous operating net profit (net loss listed with ‘-”) | -7,813,881.65 | -1,880,505.78 |
2.termination of net profit (net loss listed with ‘-”) | ||
(ii) Classify by ownership | ||
1.Net profit attributable to owner’s of parent company | -7,186,905.64 | -1,591,968.91 |
2.Minority shareholders’ gains and losses | -626,976.01 | -288,536.87 |
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 | ||
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 | -7,813,881.65 | -1,880,505.78 |
Total comprehensive income attributable to owners of parent Company | -7,186,905.64 | -1,591,968.91 |
Total comprehensive income attributable to minority shareholders | -626,976.01 | -288,536.87 |
VIII. Earnings per share: | ||
(i) Basic earnings per share | -0.0130 | -0.0029 |
(ii) Diluted earnings per share | -0.0130 | -0.0029 |
Enterprise combine under the same control in the Period, the combined party realized net profit of 0 Yuan before combination, andrealized 0 Yuan at last period for combined partyLegal Representative: Li HaiPerson in charge of Accounting Works: Sun LonglongPerson in charge of Accounting Institution: Zhong Xiaojin
4. Profit Statement of Parent Company
In RMB
Item | 2019 | 2018 |
I. Operating income | 57,765,728.40 | 33,859,463.41 |
Less: Operating cost | 52,957,470.16 | 29,856,342.44 |
Taxes and surcharge | 30,534.64 | 572,884.38 |
Sales expenses | 669,212.01 | 872,164.08 |
Administration expenses | 5,274,201.03 | 3,801,648.55 |
R&D expenses | 2,753,277.72 | |
Financial expenses | -27,640.88 | -138,128.50 |
Including: interest expenses | ||
Interest income | 36,142.99 | 146,307.16 |
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 “-”) | ||
Changing income of fair value (Loss is listed with “-”) | ||
Loss of credit impairment (Loss is listed with “-”) | -2,150,073.55 | |
Losses of devaluation of asset (Loss is listed with “-”) | 14,209.76 | |
Income on disposal of assets (Loss is listed with “-”) | ||
II. Operating profit (Loss is listed with “-”) | -6,041,399.83 | -1,091,237.78 |
Add: Non-operating income | 5,964,797.81 | 4,601,274.42 |
Less: Non-operating expense | 5,603,102.65 | 4,428,752.86 |
III. Total Profit (Loss is listed with “-”) | -5,679,704.67 | -918,716.22 |
Less: Income tax | ||
IV. Net profit (Net loss is listed with “-”) | -5,679,704.67 | -918,716.22 |
(i)continuous operating net profit (net loss listed with ‘-”) | -5,679,704.67 | -918,716.22 |
(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 | ||
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 | -5,679,704.67 | -918,716.22 |
VII. Earnings per share: | ||
(i) Basic earnings per share | -0.010 | -0.002 |
(ii) Diluted earnings per share | -0.010 | -0.002 |
5. Consolidated Cash Flow Statement
In RMB
Item | 2019 | 2018 |
I. Cash flows arising from operating activities: | ||
Cash received from selling commodities and providing labor services | 34,301,259.24 | 36,129,289.85 |
Net increase of customer deposit and interbank deposit | ||
Net increase of loan from central bank | ||
Net increase of capital borrowed from other financial institution | ||
Cash received from original insurance contract fee | ||
Net cash received from reinsurance business | ||
Net increase of insured savings and investment | ||
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 | ||
Other cash received concerning operating activities | 8,415,964.05 | 4,438,556.57 |
Subtotal of cash inflow arising from operating activities | 42,717,223.29 | 40,567,846.42 |
Cash paid for purchasing commodities and receiving labor service | 33,526,465.17 | 30,870,252.63 |
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 capital lent | ||
Cash paid for interest, commission charge and commission | ||
Cash paid for bonus of guarantee slip | ||
Cash paid to/for staff and workers | 6,068,095.14 | 7,034,174.47 |
Taxes paid | 5,495,235.28 | 2,508,051.27 |
Other cash paid concerning operating activities | 11,419,369.04 | 9,634,842.21 |
Subtotal of cash outflow arising from operating activities | 56,509,164.63 | 50,047,320.58 |
Net cash flows arising from operating activities | -13,791,941.34 | -9,479,474.16 |
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 | 897,577.01 | 17,293.82 |
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 | 897,577.01 | 17,293.82 |
Net cash flows arising from investing activities | -897,577.01 | -17,293.82 |
III. Cash flows arising from financing activities | ||
Cash received from absorbing investment | 2,275,000.00 | |
Including: Cash received from absorbing minority shareholders’ investment by subsidiaries | ||
Cash received from loans | ||
Other cash received concerning financing activities | 2,000,000.00 | 8,808,378.06 |
Subtotal of cash inflow from financing activities | 4,275,000.00 | 8,808,378.06 |
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 | 4,275,000.00 | 6,808,378.06 |
IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | ||
V. Net increase of cash and cash equivalents | -10,414,518.35 | -2,688,389.92 |
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 | 6,074,367.91 | 16,488,886.26 |
6. Cash Flow Statement of Parent Company
In RMB
Item | 2019 | 2018 |
I. Cash flows arising from operating activities: | ||
Cash received from selling commodities and providing labor services | 20,912,867.52 | 191,824.00 |
Write-back of tax received | ||
Other cash received concerning operating activities | 11,527,292.59 | 5,803,118.03 |
Subtotal of cash inflow arising from operating activities | 32,440,160.11 | 5,994,942.03 |
Cash paid for purchasing commodities and receiving labor service | 15,697,313.54 | 416,418.59 |
Cash paid to/for staff and workers | 4,179,923.89 | 2,958,657.75 |
Taxes paid | 5,298,670.25 | 1,101,894.37 |
Other cash paid concerning operating activities | 9,071,443.23 | 8,014,959.57 |
Subtotal of cash outflow arising from | 34,247,350.91 | 12,491,930.28 |
operating activities | ||
Net cash flows arising from operating activities | -1,807,190.80 | -6,496,988.25 |
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 | 897,577.01 | 11,844.82 |
Cash paid for investment | 4,225,000.00 | |
Net cash received from subsidiaries and other units obtained | ||
Other cash paid concerning investing activities | ||
Subtotal of cash outflow from investing activities | 5,122,577.01 | 11,844.82 |
Net cash flows arising from investing activities | -5,122,577.01 | -11,844.82 |
III. Cash flows arising from financing activities | ||
Cash received from absorbing investment | ||
Cash received from loans | ||
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 | -6,929,767.81 | -6,508,833.07 |
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 | 1,959,804.92 | 8,889,572.73 |
7. Statement of Changes in Owners’ Equity (Consolidated)
Current period
In RMB
Item | 2019 | ||||||||||||||
Owners’ equity attributable to the 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 “-”) | -7,186,905.64 | -7,186,905.64 | 1,648,023.99 | -5,538,881.65 | |||||||||||
(i) Total comprehensive income | -7,186,905.64 | -7,186,905.64 | -626,976.01 | -7,813,881.65 | |||||||||||
(ii) Owners’ devoted and decreased capital | 2,275,000.00 | 2,275,000.00 | |||||||||||||
1.Common shares invested by shareholders | 2,275,000.00 | 2,275,000.00 | |||||||||||||
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 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 | -1,204,736,075.56 | 7,119,396.30 | 4,322,186.79 | 11,441,583.09 |
Last Period
In RMB
Item | 2018 | ||||||||||||||
Owners’ equity attributable to the 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 “-”) | -1,591,968.91 | -1,591,968.91 | -288,536.87 | -1,880,505.78 | |||||||||||
(i) Total comprehensive income | -1,591,968.91 | -1,591,968.91 | -288,536.87 | -1,880,505.78 | |||||||||||
(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 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 | -1,197,549,169.92 | 14,306,301.94 | 2,674,162.80 | 16,980,464.74 |
8. Statement of Changes in Owners’ Equity (Parent Company)
Current period
In RMB
Item | 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 year | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,203,778,503.40 | 8,076,968.46 | |||||||
III. Increase/ Decrease in this year (Decrease is listed with “-”) | -5,679,704.67 | -5,679,704.67 | ||||||||||
(i) Total comprehensive income | -5,679,704.67 | -5,679,704.67 | ||||||||||
(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 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 | -1,209,458,208.07 | 2,397,263.79 |
Last Period
In RMB
Item | 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 year (Decrease | -918,716.22 | -918,716.22 |
is listed with “-”) | ||||||||||||
(i) Total comprehensive income | -918,716.22 | -918,716.22 | ||||||||||
(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 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 | -1,203,778,503.40 | 8,076,968.46 |
III. Company Profile
1. History and basic information
According to the Approval Document SFBF (1991) No. 888 issued by the People’s Government of Shenzhen,Shenzhen China Bicycle Company (Holdings) Limited (hereinafter referred to as the Company) wasreincorporated as the company limited by shares in November 1991. On 28 December 1991, upon the ApprovalDocument SRYFZ(1991) No. 119 issued by Shenzhen Special Economic Zone Branch of the People’s Bank ofChina, the Company got listed on Shenzhen Stock Exchange. Registered of the Company amounted as
551,347,947.00 Yuan.Legal representative: Li HaiLocation: No. 3008, Buxin Road, Luohu District, ShenzhenCertificate for Uniform Social Credit Code: 914403006188304524
2. Business nature and main operation activities
The Company's industry: machinery manufacturing industryMain operation activities: The production and assembly of various bicycles and spare parts, components, parts,mechanical product, sport machinery, fine chemicals, carbon fiber composites material, household electricalappliance and affiliated components (products management by license excluded).The majority of its products were previously exported, however, the sales volume sharply declined in recent yearsbecause of the antidumping litigation. Hence, the Company commences on the debt reorganization and thereorganization plan was completed on 27 December 2013 with bankruptcy proceedings terminated. Meanwhile,makes greater efforts to develop and research the new products, and creates a range of electrical bicycles tooccupy the domestic market.Main products and services provided so far: EMMELLE bicycles, electrical bicycles, lithium battery material andgold jewelry.
3. Release of the financial report
The Financial Report released on 27 April 2020 after approved by 20
th session of 10
thBOD of the Company.Two subsidiaries included in consolidate scope in the period, that is Shenzhen Emmelle Industry Co., Ltd andShenzhen Xinsen Jewelry and gold Supply Chain Co., Ltd, of which, the Shenzhen Xinsen Jewelry and goldSupply Chain Co., Ltd is the subsidiary newly included in consolidate scope by establishment in the period.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 the
Company as the Company couldn’t pay off the matured debts and was seriously insolvent. On 12 October 2012,Shenzhen Municipal Intermediate People's 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 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 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 EstimateTips 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 balance
between 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
(3)Accounting 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 stages
If 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 ofconsideration 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
(1) Recognition and termination for financial instrument
Financial assets or financial liabilities are recognized when the Group becomes a party to the contractualprovisions of the instrument.When buying and selling financial assets in a conventional manner, recognize and derecognize them according tothe accounting of the trading day. Buying and selling financial assets in a conventional manner refers to thecollection or delivery of financial assets in accordance with the contract terms and within the period prescribed byregulations or prevailing practices. Trading day refers to the date when the Company promises to buy or sellfinancial assets.When meeting the following conditions, derecognize a financial asset (or part of a financial asset, or part of agroup of similar financial assets), i.e. to write off from its account and balance sheet:
1) The right to receive cash flows from financial assets expires;
2) The right to receive cash flows of financial assets is transferred, or assume the obligation to pay the full amountof cash flows received to a third party in a timely manner under the “handover agreement”; and (a) virtuallytransferred almost all risks and rewards of the ownership of financial assets, or (b) although virtually neithertransferred nor retained almost all risks and rewards of the ownership of financial assets, abandoned the control ofthe financial assets.
(2) Classification and measurement of financial assets
The Company’s financial assets are classified as financial assets measured at amortized cost, financial assetsmeasured at fair value and whose changes are included in other comprehensive income, and financial assetsmeasured at fair value and whose changes are included in the current profit and loss according to the Company’sbusiness model for managing financial assets and the contractual cash flow characteristics of financial assets atinitial recognition. The subsequent measurement of financial assets depends on their classification.The Company’s classification of financial assets is based on the Company’s business model for managingfinancial assets and the cash flow characteristics of financial assets.
1) Financial assets measured at amortized cost
Financial assets that meet the following conditions at the same time are classified as financial assets measured atamortized cost: the Company’s business model for managing this financial asset is to collect contractual cashflows; the contract terms of the financial asset stipulate that the cash flow generated on a specific date is only thepayment of principal and interest based on the outstanding principal amount. For such financial assets, the actual
interest rate method is used for subsequent measurement based on amortized cost, and the gains or losses arisingfrom amortization or impairment are included in the current profit and loss.
2) Debt instrument investments measured at fair value and whose changes are included in other comprehensiveincomeFinancial assets that meet the following conditions at the same time are classified as financial assets measured atfair value and whose changes are included in other comprehensive income: the Company’s business model formanaging this financial asset is to both collect contractual cash flows and sell the financial assets; the contractterms of the financial asset stipulate that the cash flow generated on a specific date is only for the payment ofprincipal and interest based on the outstanding principal amount. For such financial assets, fair value is used forsubsequent measurement. The discount or premium is amortized by using the actual interest method and isrecognized as interest income or expenses. Except that the impairment loss and the exchange difference of foreigncurrency monetary financial assets are recognized as current gains and losses, changes in the fair value of suchfinancial assets are recognized as other comprehensive income, until the financial asset is derecognized, itscumulative gains or losses are transferred to the current profit and loss. Interest income related to such financialassets is included in the current profit and loss.
3) Equity instrument investments measured at fair value and whose changes are included in other comprehensiveincomeThe Company irrevocably chooses to designate some non-trading equity instrument investments as financialassets measured at fair value and whose changes are included in other comprehensive income. Only relevantdividend income is included in the current profit and loss, and changes in fair value are recognized as othercomprehensive income, until the financial asset is derecognized, its accumulated gains or losses are transferred toretained earnings.
4) Financial assets measured at fair value and whose changes are included in the current profit and lossFinancial assets except for above financial assets measured at amortized cost and financial assets measured at fairvalue and whose changes are included in other comprehensive income are classified as financial assets measuredat fair value and whose changes are included in the current profit and loss. During initial recognition, in order toeliminate or significantly reduce accounting mismatches, financial assets can be designated as financial assetsmeasured at fair value and whose changes included in the current profit and loss. For such financial assets, fairvalue is used for subsequent measurement, and all changes in fair value are included in the current profit and loss.When and only when the Company changes its business model for managing financial assets, it will reclassify allaffected related financial assets.For financial assets measured at fair value and whose changes are included in the current profit or loss, the relatedtransaction costs are directly included in the current profit and loss, and the related transaction costs of other typesof financial assets are included in the initial recognition amount.
(3) Classification and measurement of financial liabilities
The Company’s financial liabilities are classified as financial liabilities measured at amortized cost and financialliabilities measured at fair value and whose changes are included in the current profit and loss at initial
recognition.Financial liabilities that meet one of the following conditions can be designated as financial liabilities measured atfair value and whose changes are included in current profit or loss during initial measurement: (1) Thisdesignation can eliminate or significantly reduce accounting mismatches; (2) According to the group riskmanagement or investment strategies stated in official written documents, management and performanceevaluation of financial liability portfolios or financial assets and financial liability portfolios are conducted basedon fair value, and are reported to key management personnel within the group on this basis; (3) The financialliability includes embedded derivatives that need to be split separately.The Company determines the classification of financial liabilities at initial recognition. For financial liabilities thatare measured at fair value and whose changes are included in the current profit or loss, the related transactioncosts are directly included in the current profit and loss, and the related transaction costs of other financialliabilities are included in its initial recognition amount.The subsequent measurement of financial liabilities depends on their classification:
1) Financial liabilities measured at amortized cost
For such financial liabilities, adopt actual interest rate method and make subsequent measurements based onamortized costs.
2) Financial liabilities measured at fair value and whose changes are included in the current profit and lossFinancial liabilities that are measured at fair value and whose changes are included in the current profit or lossinclude trading financial liabilities (including derivatives that are financial liabilities) and financial liabilitiesdesignated to be measured at fair value at the initial recognition and whose changes are included in the currentprofit or loss.
(4) Financial instruments offset
If the following conditions are met at the same time, the financial assets and financial liabilities are listed in thebalance sheet with the net amount after mutual offset: legal right to offset the confirmed amount, and this legalright is currently executable; Net settlement, or simultaneous realization of the financial assets and liquidation ofthe financial liabilities.
(5) Impairment of financial assets
The Company recognizes the loss provisions on the basis of expected credit losses for financial assets measured atamortized cost, debt instrument investments measured at fair value and whose changes are included in othercomprehensive income and financial guarantee contracts. Credit loss refers to the difference between allcontractual cash flows receivable under the contract and discounted according to original actual interest rate bythe Company and all expected receivable cash flows, that is, the present value of all cash shortages.The Company considers all reasonable and evidence-based information, including forward-looking information,and estimates the expected credit loss of financial assets measured at amortized cost and financial assets measuredat fair value and whose changes are included in other comprehensive income (debt instruments) in a single orcombined manner.
1) General model of expected credit loss
If the credit risk of the financial instrument has increased significantly since the initial recognition, the Companymeasures its loss provisions in accordance with the amount equivalent to the expected credit loss of the financialinstrument for the entire duration; if the credit risk of the financial instrument has not significantly increased sincethe initial recognition, the Company measures its loss provisions in accordance with the amount equivalent to theexpected credit loss of the financial instrument in the next 12 months. The resulting increased or reversed amountof the loss provisions is included in the current profit and loss as an impairment loss or gain. For the Company’sspecific assessment of credit risk, please see details in Note IX. Risks Related to Financial Instruments”.Generally, the Company believes that the credit risk of the financial instrument has significantly increased when itexceeds 30 days after the due date, unless there is concrete evidence that the credit risk of the financial instrumenthas not increased significantly since initial recognition.Specifically, the Company divides the process of credit impairment of financial instruments of which no creditimpairment has occurred at the time of purchase or origin into three stages. There are different accountingtreatment methods for the impairment of financial instruments at different stages:
Stage one: Credit risk has not increased significantly since initial recognitionFor a financial instrument at this stage, the enterprise should measure the loss provisions according to theexpected credit losses in the next 12 months, and calculate the interest income based on its book balance (that is,without deducting provisions for impairment) and the actual interest rate (if the instrument is a financial asset, thesame below).Stage two: Credit risk has increased significantly since initial recognition but no credit impairment has occurredFor a financial instrument at this stage, the enterprise should measure the loss provisions according to theexpected credit loss of the instrument for its entire duration, and calculate the interest income based on its bookbalance and actual interest rate.Stage three: Credit impairment occurs after initial recognitionFor a financial instrument at this stage, the enterprise should measure the loss provisions based on the expectedcredit losses of the instrument for its entire duration, but the calculation of interest income is different from thefinancial assets at the previous two stages. For financial assets that have suffered credit impairment, the enterpriseshould calculate interest income based on its amortized cost (book balance minus the provisions for impairment,i.e., book value) and the actual interest rate.For financial assets that have suffered credit impairment at the time of purchase or origin, the enterprise shouldonly recognize changes in expected credit losses for the entire duration after initial recognition as loss provisions,and calculate the interest income based on its amortized cost and credit-adjusted actual interest rate.
2) The Company chooses not to compare the financial instrument with lower credit risk on the balance sheet datewith its credit risk at initial recognition, but directly makes the assumption that the credit risk of the instrumenthas not increased significantly since the initial recognition.If the enterprise confirms that the default risk of financial instruments is low, the borrower has a strong ability to
fulfill its contractual cash flow obligations in the short term, and even if there are adverse changes in the economicsituation and operating environment in a longer period of time, it will not necessarily reduce the borrower’s abilityto fulfill its contractual cash flow obligations, then the financial instrument can be considered to have lower creditrisk.
3) Accounts receivable and lease receivables
The Company adopts the simplified model of expected credit loss for accounts receivables specified in“Accounting Standards for Business Enterprises No.14 - Revenue” and without containing significant financingcomponents (including the case that the financing components in contracts that do not exceed one year are notconsidered according to the standards), that is, always measures their loss provisions according to the amount ofexpected credit loss during the entire duration.The Company makes accounting policy choices for the receivables containing significant financing componentsand the lease receivables specified in “Accounting Standards for Business Enterprises No.21 - Leases”, andchooses to adopt the simplified model of expected credit losses, that is, to measure the loss provisions inaccordance with the amount of expected credit losses throughout the entire duration.
(6) Transfer of financial assets
Where the Company has transferred almost all the risks and rewards in the ownership of the financial asset to thetransferee, the recognition of the financial assets shall be terminated; where almost all risks and rewards in theownership of a financial asset are retained, the recognition of the financial assets are not terminated.
If the Group neither transfers nor retains substantially all the risks and rewards of ownership of a financial asset, itshall be accounted for as follows: the financial asset should be terminated if the Group waives control over theasset; it recognizes the financial asset to the extent of its continuing involvement in the transferred financial assetand recognizes an associated liability if the Group does not waives control over the asset.If the transferred financial assets continue to be involved by providing financial guarantee, the assets continue tobe involved shall be recognized according to the lower of the book value of the financial assets and the amount offinancial guarantee. The financial guarantee amount means the maximum amount of consideration received whichwill be required to be repaid.
11.Note receivable
The Group adopts the simplified model of expected credit loss for the accounts receivables specified in“Accounting Standards for Business Enterprises No.14 - Revenue” and without containing significant financingcomponents (including the case that the financing components in contracts that do not exceed one year are notconsidered according to the standards), that is, always measures their loss provisions according to the amount ofexpected credit loss during the entire duration, and the resulting increased or reversed amount of the loss provisionis included in the current profit and loss as an impairment loss or gain. The accrual method is as follows:
The Company divides the bills receivable into two types, i.e. bank acceptance bills and commercial acceptancebills portfolios, according to the type of financial instruments. For bank acceptance bills, the accepting bank paysthe determined amount to the taker or the bearer unconditionally due to the maturity of the bills, the overdue creditloss is low and has not increased significantly since the initial confirmation, the Company believes that the risk ofoverdue default is 0; for commercial acceptance bills, the Company believes that the probability of default isrelated to the aging, we use the aging analysis method to accrue bad debt provisions, for details of the accrual ratio,please refer to III-12 Accounting Policies and Estimates of Accounts Receivable.
12.Account receivable
The Company adopts the simplified model of expected credit loss for accounts receivables specified in“Accounting Standards for Business Enterprises No.14 - Revenue” and without containing significant financingcomponents (including the case that the financing components in contracts that do not exceed one year are notconsidered according to the standards), that is, always measures their loss provisions according to the amount ofexpected credit loss during the entire duration, and the resulting increased or reversed amount of the loss provisionis included in the current profit and loss as an impairment loss or gain.
13.Receivable financing
For accounts receivable that contain a significant financing component, the Company chooses to use thesimplified model of expected credit losses, that is, to always measure its loss provisions according to the amountof expected credit losses during the entire duration.
1. Simplified model of expected credit losses: always measure the loss provisions according to the amount ofexpected credit losses during the entire durationThe Company considers all reasonable and well-founded information, including estimates of expected creditlosses on accounts receivable in a single or combined manner.
(1) Account receivable with single significant amount and withdrawal single item bad debt provision
Basis or amount of judgment for account with single significant amount | Withdrawal method for bad debt provision of account receivable with single significant amount |
Receivable commercial acceptance bill, account receivable and other receivables with single amount more than 5 million yuan (including) | Carry out impairment test separately, and withdraw bad debt provision according to the difference between the present value of future cash flow and its book value |
(2)Receivables with provision for bad debts by portfolio
Portfolio determine basis |
Age analysis | On the basis of the actual loss rate of the portfolio of receivables with similar credit risk characteristics which are the same or similar in the previous year, for the single amount of |
non-material receivables, it is divided into several portfolios according to the credit risk characteristics together with the receivables without impairment after the separate test | |
Other | Bank acceptance |
In the combination, the proportion of bad debt provision withdrawn by aging analysis method is as follow:
Account age | Accrual proportion of commercial acceptance bill receivable | Withdrawing proportion of the account receivable | Withdrawing proportion of other receivable |
Within one year(one year included) | 0.3% | 0.3% | 0.3% |
1~2 years (2-year included) | 100% | 0.3% | 0.3% |
2~3 years (3-year included) | 100% | 0.3% | 0.3% |
Over 3 years | 100% | 100% | 100% |
Including: determined to be un-collectible | Write off | Write off | Write off |
(3) Account receivable with significant single amount and single provision for bad debts
Basis or amount of judgment for account with single minor amount | Withdrawal method for bad debt provision of account receivable with single minor amount |
Receivable commercial acceptance bill, account receivable and other receivables with single amount less than 5 million yuan (including), and the probability of recall is small by nature | Carry out impairment test separately, and withdraw bad debt provision according to the difference between the present value of future cash flow and its book value |
2. A general model of expected credit loss
Found more in the treatment above said in 10. Financial Instrument
14.Other account receivable
Determination method and accounting treatment of the expected credit loss of other account receivable
(1) Account receivable with single significant amount and withdrawal single item bad debt provision:
Account with single significant amount: 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)Account receivable with bad debt provision accrual by portfolio
For the receivables with non significant single amount at the end of the period, they are divided into severalcombinations together with the receivables without impairment after independent test according to the account ageas the credit risk feature. The impairment loss is calculated and determined according to a certain proportion ofthe ending balance of these receivables combinations (impairment test can be conducted separately), and the baddebt provision is withdrawn.
In addition to the receivables for which impairment provision has been separately made, the company determinesthe following proportion of provision for bad debts based on the actual loss rate of the combination of receivableswith account age as credit risk characteristics in the previous year, which is the same or similar to the receivables,in combination with the current situation:
(2) Any analysis
Account age | Accrual proportion of account receivable | Accrual proportion of other account receivable |
Within one year(one year included) | 0.3% | 0.3% |
1~2 years (2-year included) | 0.3% | 0.3% |
2~3 years (3-year included) | 0.3% | 0.3% |
Over 3 years | 100% | 100% |
Including: determined to be un-collectible | Write off | Write off |
Note: no provision is made for bad debt for inter-company receivables and other receivables with the scope ofconsolidation.
(3) Account receivable with minor single amount but single provision for bad debtsReasons for provision of bad debt reserve on single base: The Company conducts impairment test separately forreceivables that are not significant in single amount but have the following characteristics, if there is objectiveevidence that they have been impaired, the impairment loss will be recognized and the provision for bad debts willbe made based on the balance between the present value of future cash flows and its book value; receivables thatare in dispute with the other party or involving litigation or arbitration; there are clear signs indicating that thedebtor is likely to be unable 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
(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.Contractual assets
Nil
17.Contractual cost
Nil
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 as
required 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 theassets 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.Debt investment
Nil
20.Other debt investment
Nil
21.Long-term account receivable
Nil
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 theowners’ 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 as
current 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 netlosses 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 proceeds
should 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 fortransfer 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) Recognition conditions
Fixed assets refer to the tangible assets for production of products, provision of labor, lease or operation, and with a service life inexcess of one financial year.
(2) Depreciation methods
Category | Method | Years of depreciation | Scrap value rate | Yearly depreciation rate |
Housing buildings | Straight-line depreciation | 20-year | 10% | 4.5% |
Machinery equipment | Straight-line depreciation | 10-year | 10% | 9% |
Means of transportation | Straight-line depreciation | 5-year | 10% | 18% |
Electronic equipment and others | Straight-line depreciation | 5-year | 10% | 18% |
Fixed assets are recorded at the actual cost at the time of acquisition, and depreciation is calculated and withdrawn using the averagelife method from the month after they reach the intended usable state
(3) Recognition basis, valuation and depreciation method for financial lease assetsFinance lease is determined when one or a combination of the following conditions are satisfied: (1) theownership has been transferred to the lessee when the leasing term is due; (2) the lessee has the option to purchasethe leasing asset at a price that is much lower than its fair value, so it can be reasonably determined that the lesseewill take the option at the very beginning of the lease; (3) the leasing term accounts for most time of the useful life(ordinarily accounting for 75% or higher) even if the ownership does not transfer to the lessee; (4) the presentvalue of the minimum amount of rent that the lessee has to pay at the first day of the lease amounts to 90% orhigher of its fair value at the same date; or the present value of the minimum amount of rent that the lessor collectsat the first day of the lease amounts to 90% or higher of its fair value at the same date; and/or (5) the leased assetsare of such a specialized nature that only the lessee can use them without major modifications. Fixed assetsrented-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
Nil
27.Biological assets
Nil
28. Oil and gas asset
Nil
29.Right-of-use asset
Nil
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 initially
measured 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 be
impaired, 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 sametime: ①it is technically feasible that the intangible asset can be used or sold upon completion; ②there isintention to complete the intangible asset for use or sale; ③the intangible asset can produce economic benefits,including there is evidence that the products produced using the intangible asset has a market or the intangibleasset itself has a market; if the intangible asset is for internal use, there is evidence that there exists usage for theintangible asset; ④there is sufficient support in terms of technology, financial resources and other resources inorder to complete the 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
Nil
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.Contractual liabilities
Nil
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 Company terminates the labor relationship with an employee before the employee labor contract expires, orproposes to offer a compensation to encourage an employee to voluntarily accept the downsizing. When theCompany cannot unilaterally withdraw the labor relationship cancellation plan or the downsizing proposal norconfirm the relevant costs of the restructuring involving the payment of termination benefits, whichever is earlier,the liabilities arising from the compensation for the termination of the labor relationship with the employees arerecognized and included in the current profit and loss.
(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 social
security 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 liabilities
Nil
36. Accrual liability
Nil
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 bondsNil
39. Revenue
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 notexpected 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 the
relevant 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 accounting shallbe made for different portion; in case it is hard to differentiate the portions, the grants will be recorded as relatedto 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 baseof items not recognized as assets and liabilities but with their tax base being able to be determined accordingto tax laws) and in accordance with the tax rate applicable to the period during which the assets are expectedto be 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 orloss, 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 as
unrecognized 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.
The enterprise shall separately list profit and loss from continuing operations and profit and loss fromdiscontinuing operations in the profit statement. For non-current assets held for sale or disposal groups that do notmeet the definition of discontinuing operations, the impairment losses and reversal amounts and disposal gainsand losses should be presented as profit or loss from continuing operations. Operational gains and losses anddisposal profits and losses such as impairment losses and reversal amounts of discontinuing operations should bereported as profits or losses of discontinuing operations.
44. Major accounting policy and changes
(1) Main accounting policy changes
√ Applicable □ Not applicable
The contents and reasons of accounting policy changes | Examination and approval procedures | Note |
Note receivable and account receivable” is divide into Account receivable and Note receivable for presentation | In consolidate balance sheet, the note receivable at end of 2019 recorded as 580,000.00 yuan, account receivable recorded as 38,616,523.93 yuan; note receivable at end of 2018 recorded as 0.00 yuan and account receivable recorded as 29,007,509.02 yuan. In balance sheet of |
parent company, the note receivable at end of 2019 recorded as 580,000.00 yuan, account receivable recorded as 32,843,536.70 yuan; note receivable at end of 2018 recorded as 0.00 yuan and account receivable recorded as 12,827,954.16 yuan | ||
”Note payable and account payable” is divide into Account payable and Note payable for presentation | In consolidate balance sheet, the note payable at end of 2019 recorded as 0.00 yuan, account payable recorded as 10,191,385.23 yuan; note payable at end of 2018 recorded as 2,000,000.00 yuan and account payable recorded as 9,979,010.69 yuan. In balance sheet of parent company, the note payable at end of 2019 recorded as 0.00 yuan, account payable recorded as 9,002,524.60 yuan; note payable at end of 2018 recorded as 0.00 yuan and account payable recorded as 0.00 yuan. | |
”Less: Loss of assets impairment” adjusted to “Add: Loss of assets impairment (Loss is listed with “-”)” | In consolidate profit statement, the loss of assets impairment for 2019 recorded as -499,175.17 yuan while recorded as -1,200,526.41 yuan for year of 2018. In profit statement of the parent company, the loss of assets impairment for 2019 recorded as 0.00 yuan while recorded as 14,209.76 yuan for year of 2018. | |
The government grants actually received by the enterprise, are listed under the item of “Cash received from other operating activities” whether it is related to assets or income. | In consolidate cash flow statement, the government grants reckoned in “Cash received from other operating activities” for year of 2019 recorded as 0.00 yuan while recorded as 0.00 yuan for year of 2018. In cash flow statement of parent company, the government grants reckoned in “Cash received from other operating activities” for year of 2019 recorded as 0.00 yuan while recorded as 0.00 yuan for year of 2018. | |
When implemented the new financial instrument standard, the financial assets debt instrument measured by fair value and with variation reckoned into current gains/losses will listed under the item of “Trading financial assets” | No impact on the financial statement while implemented the new standards |
When implemented the new financial instrument standard, the bad debt loss accrual from account receivable and other account receivable will listed under the item of “Credit impairment loss (loss is listed with”-”)” | Credit impairment loss in consolidate profit statement for year of 2019 recorded as -2,533,065.87 yuan. Credit impairment loss in profit statement of the parent company for year of 2019 recorded as -2,150,073.55 yuan. |
Nil
(2) Main accounting policy changes
□ Applicable √ Not applicable
(3)Adjustment on the relevant items of financial statement at beginning of the year when implemented thenew financial instrument standards, new revenue standards and new leasing standards since 2019
□ Applicable √ Not applicable
(4)Description of the comparative data at the early stage of retroactive adjustment of new financialinstrument standards or new lease standards implemented since 2019
□ Applicable √ Not applicable
45. Other
Nil
VI. Taxes
1. Main tax category and tax rate
Tax category | Tax calculation evidence | Tax rate |
Value added tax | Sales of goods, taxable labor service revenue, taxable income, intangible assets income and income from property leasing | 5%, 6%, 13%, 16% |
Tax for maintaining and building cities | Turnover tax payable | 7% |
Enterprise income tax | Taxable income | 25%, 20% |
Educational surtax | Turnover tax payable | 3% |
Local educational surtax | Turnover tax payable | 2% |
Property tax | 70% of the original value for property | 1.2% |
Stamp tax | Amount of the contract for purchasing and sales | 0.03% |
Disclose reasons for different taxpaying body
Taxpaying body | Income tax rate |
The Company | 25% |
Shenzhen Emmelle Industry Co., Ltd. | 25% |
Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd. | 20% |
2. Tax preference
According to the “Notice on the Implementation of the Inclusive Tax Reduction and Exemption Policy for Smalland Micro Enterprises” (Caishui [2019] No.13), for the portion of the annual taxable income of small andmicro-profit enterprises not exceeding 1 million yuan, of which 25% is reckoned in taxable income, and thecorporate income tax is paid at a tax rate of 20%; for the portion of annual taxable income exceeding 1 millionyuan but not exceeding 3 million yuan, of which 50% is reckoned in taxable income, and the corporate income taxis paid at a tax rate of 20%.
3. Other
According to the “Announcement on Deepening VAT Reform Related Policies” (MOF, STA, GAC Announcement2019 No. 39), from April 1, 2019, if the tax rate of taxpayers’ taxable sales of VAT was originally 16%, the taxrate is adjusted to 13%. The VAT rate of the Company and its subsidiaries has been adjusted to 13% from April 1,2019.VII. Notes to Items in Consolidated Financial Statements
1. Monetary fund
In RMB
Item | Balance at period-end | Balance at period-begin |
Cash on hand | 89,313.66 | 126,486.63 |
Cash in bank | 5,979,003.60 | 16,305,989.07 |
Other monetary fund | 6,050.65 | 2,056,410.56 |
Total | 6,074,367.91 | 18,488,886.26 |
Including: total payments deposited abroad | 89,313.66 | 126,486.63 |
Other explanationNil
2. Trading financial assets
In RMB
Item | Balance at period-end | Balance at period-begin |
Including: | ||
Including: |
Other explanation:
Nil
3. Derivative financial assets
In RMB
Item | Balance at period-end | Balance at period-begin |
Total | 0.00 |
Other explanation:
Nil
4. Notes receivable
(1) Category
In RMB
Item | Balance at period-end | Balance at period-begin |
Bank acceptance | 580,000.00 | |
Total | 580,000.00 |
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: | ||||||||||
Including: | ||||||||||
Total | 0.00 | 0.00% | 0.00 | 0.00% | 0.00 | 0.00 | 0.00% | 0.00 | 0.00% | 0.00 |
Bad debt provision accrual on single basis:
In RMB
Name | Balance at period-end | |||
Book balance | Bad debt provision | Accrual ratio | Accrual causes | |
Total | 0.00 | 0.00 | -- | -- |
Bad debt provision accrual on single basis:
In RMB
Name | Balance at period-end | |||
Book balance | Bad debt provision | Accrual ratio | Accrual causes | |
Total | 0.00 | 0.00 | -- | -- |
Bad debt provision accrual on single basis:
In RMB
Name | Balance at period-end | |||
Book balance | Bad debt provision | Accrual ratio | Accrual causes | |
Total | 0.00 | 0.00 | -- | -- |
Bad debt provision accrual on single basis:
In RMB
Name | Balance at period-end | |||
Book balance | Bad debt provision | Accrual ratio | Accrual causes | |
Total | 0.00 | 0.00 | -- | -- |
Bad debt provision accrual on single basis:
In RMB
Name | Balance at period-end | |||
Book balance | Bad debt provision | Accrual ratio | Accrual causes | |
Total | 0.00 | 0.00 | -- | -- |
Bad debt provision accrual on single basis:
In RMB
Name | Balance at period-end | |||
Book balance | Bad debt provision | Accrual ratio | Accrual causes |
Bad debt provision accrual on portfolio:
In RMB
Name | Balance at period-end | ||
Book balance | Bad debt provision | Accrual ratio | |
Total | 0.00 | 0.00 | -- |
Explanation on portfolio basis:
Bad debt provision accrual on portfolio:
In RMB
Name | Balance at period-end | ||
Book balance | Bad debt provision | Accrual ratio | |
Total | 0.00 | 0.00 | -- |
Explanation on portfolio basis:
Bad debt provision accrual on portfolio:
In RMB
Name | Balance at period-end | ||
Book balance | Bad debt provision | Accrual ratio |
Explanation on portfolio basis:
NilBad debt provision accrual on portfolio:
In RMB
Name | Balance at period-end | ||
Book balance | Bad debt provision | Accrual ratio |
Explanation on portfolio basis:
NilBad debt provision accrual on portfolio:
In RMB
Name | Balance at period-end | ||
Book balance | Bad debt provision | Accrual ratio |
Explanation on portfolio basis:
If the provision for bad debts of notes receivable is made in accordance with the general model of expected credit losses, please referto the disclosure of other account receivable to disclose related information about bad-debt provisions:
□Applicable √Not applicable
(2) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
In RMB
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 |
Including important amount of bad debt provision collected or reversal in the period:
□Applicable √Not applicable
(3) Note receivable pledged at period-end
In RMB
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 | 16,151,069.12 | |
Total | 16,151,069.12 | 0.00 |
(5) Notes transfer to account receivable due for failure implementation by drawer at period-end
In RMB
Item | Amount transfer to account receivable at period-end |
Total | 0.00 |
Other explanationNil
(6) Note receivable actually charge-off in the period
In RMB
Item | Amount charge-off |
Including important note receivable charge-off:
In RMB
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 | -- | -- | -- |
Explanation on note receivable change-off:
Nil
5. Account receivable
(1) 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 | |||
Account receivable with bad debt provision accrual by single basis | 9,421,186.95 | 21.81% | 4,477,656.23 | 47.53% | 4,943,530.72 | 2,477,485.20 | 7.66% | 2,099,361.01 | 84.74% | 378,124.19 |
Including: |
Accounts with single significant amount but with bad debts provision accrued individually | 5,035,603.75 | 11.66% | 1,510,681.13 | 30.00% | 3,524,922.62 | |||||
Accounts with single minor amount but with bad debts provision accrued individually | 4,385,583.20 | 10.15% | 2,966,975.10 | 67.65% | 1,418,608.10 | 2,477,485.20 | 7.66% | 2,099,361.01 | 84.74% | 378,124.19 |
Account receivable with bad debt provision accrual by portfolio | 33,774,316.16 | 78.19% | 101,322.95 | 0.30% | 33,672,993.21 | 29,860,222.34 | 92.34% | 1,230,837.51 | 4.12% | 28,629,384.83 |
Including: | ||||||||||
Account receivable withdrawal bad debt provision by group of credit risk characteristics (Aging analysis method) | 33,774,316.16 | 78.19% | 101,322.95 | 0.30% | 33,672,993.21 | 29,860,222.34 | 92.34% | 1,230,837.51 | 4.12% | 28,629,384.83 |
Total | 43,195,503.11 | 100.00% | 4,578,979.18 | 10.60% | 38,616,523.93 | 32,337,707.54 | 100.00% | 3,330,198.52 | 10.30% | 29,007,509.02 |
Bad debt provision accrual on single basis: Account receivable with significant single amount period-end but withdrawal bad debtprovision on single basis
In RMB
Name | Balance at period-end | |||
Book balance | Bad debt provision | Accrual ratio | Accrual causes | |
Shenzhen Jiahaosong Technology Co., Ltd. | 5,035,603.75 | 1,510,681.13 | 30.00% | Expected to be difficult to recover |
Total | 5,035,603.75 | 1,510,681.13 | -- | -- |
Bad debt provision accrual on single basis: Account receivable with minor single amount period-end but withdrawal bad debtprovision on single basis
In RMB
Name | Balance at period-end | |||
Book balance | Bad debt provision | Accrual ratio | Accrual causes | |
Shijiazhuang Dasong | 1,039,165.50 | 1,039,165.50 | 100.00% | Expected to be difficult |
Tech. Co., Ltd | to recover | |||
Sichuan Wanling Electric Technology Co., Ltd. | 1,102,072.20 | 1,102,072.20 | 100.00% | Expected to be difficult to recover |
Shanghai Swen Electric Vehicle Co., Ltd. | 304,867.50 | 243,894.00 | 80.00% | Expected to be difficult to recover |
Guangdong Xinlingjia New Energy Co., Ltd. | 1,267,000.00 | 380,100.00 | 30.00% | Expected to be difficult to recover |
Shenzhen Boyineng Technology Co., Ltd. | 672,478.00 | 201,743.40 | 30.00% | Expected to be difficult to recover |
Total | 4,385,583.20 | 2,966,975.10 | -- | -- |
Bad debt provision accrual on single basis:
In RMB
Name | Balance at period-end | |||
Book balance | Bad debt provision | Accrual ratio | Accrual causes |
Bad debt provision accrual on portfolio: Account receivable with bad debt provision accrual on aging analysis
In RMB
Name | Balance at period-end | ||
Book balance | Bad debt provision | Accrual ratio | |
Within one year (one year included) | 32,632,190.64 | 97,896.57 | 0.30% |
1-2 years (2 years included) | 1,142,125.52 | 3,426.38 | 0.30% |
Total | 33,774,316.16 | 101,322.95 | -- |
Explanation on portfolio basis:
NilBad debt provision accrual on portfolio
In RMB
Name | Balance at period-end | ||
Book balance | Bad debt provision | Accrual ratio |
Explanation on portfolio basis:
If the provision for bad debts of account receivable is made in accordance with the general model of expected credit losses, please referto the disclosure of other account receivable to disclose related information about bad-debt provisions:
□Applicable √Not applicable
By account age
In RMB
Account age | Balance at period-end |
Within one year (one year included) | 37,731,364.39 |
Within one year | 37,731,364.39 |
1-2 years | 3,184,410.52 |
2-3 years | 468,148.50 |
Over 3 years | 1,811,579.70 |
3-4 years | 772,414.20 |
4-5 years | 1,039,165.50 |
Total | 43,195,503.11 |
(2) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
In RMB
Category | Balance at period-begin | Current changes | Balance at period-end | |||
Accrual | Collected or reversal | Charge-off | Other | |||
Bad debt provision for accounts receivable | 3,330,198.52 | 2,493,679.37 | 1,244,898.71 | 4,578,979.18 | ||
Total | 3,330,198.52 | 2,493,679.37 | 1,244,898.71 | 4,578,979.18 |
Including important amount of bad debt provision collected or reversal in the period:
In RMB
Enterprise | Amount collected or reversal | Collection way |
Total | 0.00 | -- |
(3) Account receivables actually charge-off during the reporting period
In RMB
Item | Amount charge-off |
Goods receivable | 1,244,898.71 |
Including major account receivables charge-off:
In RMB
Enterprise | Nature | Amount charge-off | Causes of charge-off | Procedure for charge-off | Amount cause by related transactions or not (Y/N) |
Shenzhen Zhonghua Bicycle (Group) Co., Ltd. Hebei Branch | Goods payment | 1,144,690.91 | Bankruptcy is not liquidated and cannot be recovered | 否 |
Emmelle Electric Vehicle Store in Midong District, Urumqi | Goods payment | 55,968.48 | Business termination, long-term accounts that cannot be recovered | 否 | |
Shijiazhuang Diju Trading Co., Ltd. | Goods payment | 29,917.00 | Business termination, long-term accounts that cannot be recovered | 否 | |
Other | Goods payment | 14,322.32 | Business termination, long-term accounts that cannot be recovered | 否 | |
Total | -- | 1,244,898.71 | -- | -- | -- |
Explanation on account receivable charge-off:
Nil
(4) Top five account receivables collected by arrears party at ending balance
In RMB
Name | Ending balance of accounts receivable | Proportion of total closing balance of accounts receivable | Ending balance of bad bet provision |
Guangshui Jiaxu Energy Technology Co., Ltd. | 9,544,200.90 | 22.10% | 28,632.60 |
Zhengzhou Guiguan Tech. Trade. Co., Ltd | 7,377,678.50 | 17.08% | 22,133.04 |
Jinan Yuxintai Sales Co., Ltd. | 5,408,096.00 | 12.52% | 16,224.29 |
Shenzhen Jiahaosong Technology Co., Ltd. | 5,035,603.75 | 11.66% | 1,510,681.13 |
Shenzhen Weiterui New Energy Technology Co., Ltd. | 3,924,471.05 | 9.09% | 11,773.41 |
Total | 31,290,050.20 | 72.45% |
(5) Account receivable derecognition due to transfer of financial assets
Nil
(6) Assets and liability resulted by account receivable transfer and continuous involvement
NilOther explanation:
Nil
6. Receivables financing
In RMB
Item | Balance at period-end | Balance at period-begin |
Total | 0.00 |
Change of receivables financing and fair value in the period
□Applicable √Not applicable
If the provision for bad debts of receivable financing is made in accordance with the general model of expected credit losses, pleaserefer to the disclosure of other account receivable to disclose related information about bad-debt provisions:
□Applicable √Not applicable
Other explanation:
Nil
7. Account paid in advance
(1) By account age
In RMB
Account age | Balance at period-end | Balance at period-begin | ||
Amount | Ratio | Amount | Ratio | |
Within one year | 938,425.99 | 100.00% | 13,799,753.60 | 100.00% |
Total | 938,425.99 | -- | 13,799,753.60 | -- |
Explanation on un-settlement in time for advance payment with over one year account age and major amounts:
Nil
(2) Top 5 advance payment at ending balance by prepayment object
Enterprise | Relationship with the Company | Amount | Account age | Nature | Ratio in total advance e payment (%) |
Shenzhen Jinming Artisan Jewelry Co., Ltd. | Non-related party | 800,000.00 | Within 1 year | Prepaid processing fee | 85.25 |
Shenzhen Longxinghang Jewelry Co., Ltd. | Non-related party | 40,268.67 | Within 1 year | Prepaid processing fee | 4.29 |
Dongguan Dalang Jiuzhi Motor Factory | Non-related | 27,707.00 | Within 1 year | Goods advance | 2.95 |
party | payment | ||||
Guangzhou Weidi Jewelry Co., Ltd. | Non-related party | 21,220.32 | Within 1 year | Prepaid processing fee | 2.26 |
Huizhou Minghui Vehicle Industry Co., Ltd. | Non-related party | 14,000.00 | Within 1 year | Goods advance payment | 1.49 |
Total | 903,195.99 | 96.24 |
Other explanation:
At end of the period, there was no advance payment from shareholder unit and other related parties that holds 5% (included) votingrights of the Company among Advance Payment
8. Other account receivable
In RMB
Item | Balance at period-end | Balance at period-begin |
Interest receivable | 0.00 | |
Dividend receivable | 0.00 | |
Other account receivable | 740,354.71 | 844,537.19 |
Total | 740,354.71 | 844,537.19 |
(1) Interest receivable
1) Category
In RMB
Item | Balance at period-end | Balance at period-begin |
Total | 0.00 |
2) Important overdue interest
In RMB
Borrower | Balance at period-end | Overdue time | Overdue reason | Impairment (Y/N) and judgment basis |
Total | 0.00 | -- | -- | -- |
Other explanation:
Nil
3) Accrual of bad debt provision
□Applicable √Not applicable
(2) Dividend receivable
1) Category
In RMB
Item (or invested company) | Balance at period-end | Balance at period-begin |
Total | 0.00 |
2) Important dividend receivable with over one year aged
In RMB
Item (or invested company) | Balance at period-end | Account age | Causes of failure for collection | Impairment (Y/N) and judgment basis |
Total | 0.00 | -- | -- | -- |
3) Accrual of bad debt provision
□Applicable √Not applicable
Other explanation:
Nil
(3) Other account receivable
1) By nature
In RMB
Account nature | Book balance at period-end | Book balance at period-begin |
Deposit or margin | 754,822.00 | 783,672.00 |
Payment for equipment | 311,400.00 | 311,400.00 |
Personal loan of employees | 28,060.45 | 31,098.50 |
Other | 205,750.45 | |
Total | 1,094,282.45 | 1,331,920.95 |
2) Accrual of bad debt provision
In RMB
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 on January 1, 2019 | 487,383.76 | 487,383.76 | ||
January 1, 2019 balance in the current period | —— | —— | —— | —— |
Accrued in this period | 39,386.50 | 39,386.50 | ||
Write off this period | 172,842.52 | 172,842.52 | ||
Balance on December 31, 2019 | 353,927.71 | 353,927.74 |
Change of book balance of loss provision with amount has major changes in the period
□Applicable √Not applicable
By account age
In RMB
Account age | Balance at period-end |
Within one year (one year included) | 229,464.45 |
Within one year | 229,464.45 |
1-2 years | 452,918.00 |
2-3 years | 60,200.00 |
Over 3 years | 351,700.00 |
3-4 years | 41,700.00 |
4-5 years | 10,000.00 |
Over 5 years | 300,000.00 |
Total | 1,094,282.45 |
3) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
In RMB
Category | Balance at period-begin | Current changes | Balance at period-end | |||
Accrual | Collected or reversal | Write off | Other | |||
Bad debt provision for other receivables | 487,383.76 | 39,386.50 | 172,842.52 | 353,927.74 | ||
Total | 487,383.76 | 39,386.50 | 172,842.52 | 353,927.74 |
NilImportant amount of bad debt provision switch-back or collection in the period:
In RMB
Enterprise | Amount switch-back or collection | Collection way |
Total | 0.00 | -- |
Nil
4) Other account receivables actually charge-off during the reporting period
In RMB
Item | Amount charge-off |
Other receivables | 172,842.52 |
Including major other account receivables charge-off:
In RMB
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 | -- | -- | -- |
Other Explanation on account receivable charge-offNil
5) Top 5 other account receivable collected by arrears party at ending balance
In RMB
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 | 27.42% | 300,000.00 |
Shenzhen Anjingheng Industrial Co., Ltd. | Rent deposit | 275,150.00 | Within 2 years | 25.14% | 825.45 |
Shenzhen Material Group Co., Ltd. | Rent deposit | 181,918.00 | 1-2 years | 16.62% | 545.75 |
Alipay (China) Network Technology Co., Ltd. | Margin or deposit | 170,000.00 | Within 3 years | 15.54% | 510.00 |
Guangzhou Vipshop E-Business Co., Ltd. | Margin or deposit | 50,000.00 | Within 2 years | 4.57% | 150.00 |
Total | -- | 977,068.00 | -- | 89.29% | 302,031.20 |
6) Account receivable with government grants involved
In RMB
Enterprise | Government grants | Balance at period-end | Ending account age | Time, amount and basis of amount collection estimated |
Nil
7) Other account receivable derecognition due to financial assets transferNil
8) Assets and liability resulted by other account receivable transfer and continuous involvement
NilOther explanation:
Nil
9. Inventory
Whether implemented the new revenue standards
□Yes √No
(1) Category
In RMB
Item | Balance at period-end | Balance at period-begin | ||||
Book balance | Depreciation reserve | Book value | Book balance | Depreciation reserve | Book value | |
Raw materials | 2,183,259.92 | 2,183,259.92 | 388,818.51 | 23,015.17 | 365,803.34 | |
Finished goods | 1,542,282.57 | 521,083.05 | 1,021,199.52 | 2,382,433.75 | 361,633.15 | 2,020,800.60 |
Consigned processing materials | 2,873,870.86 | 2,873,870.86 | ||||
Total | 6,599,413.35 | 521,083.05 | 6,078,330.30 | 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 | Other |
charge-off | ||||||
Raw materials | 23,015.17 | 23,015.17 | ||||
Finished goods | 361,633.15 | 499,175.17 | 339,725.27 | 521,083.05 | ||
Total | 384,648.32 | 499,175.17 | 362,740.44 | 521,083.05 |
The net realizable value is determined by deducting the necessary expenses from the market price at the end of the period, theinventory falling price reserves reversed or written off in the current period are the sales of the inventory with impairment withdrawnin the current period.
(3) Explanation on capitalization of borrowing costs at ending balance of inventory
Nil
(4) Assets that completed without settlement from construction contract
In RMB
Item | Amount |
Other explanation:
10. Contractual assets
In RMB
Item | Balance at period-end | Balance at period-begin | ||||
Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
Total | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Book value of contract assets have major changes and causes:
In RMB
Item | Amount changes | Causes |
Total | 0.00 | —— |
If the provision for bad debts of contract asset is made in accordance with the general model of expected credit losses, please refer to thedisclosure of other account receivable to disclose related information about bad-debt provisions:
□Applicable √Not applicable
Accrual of impairment provision in the period
In RMB
Item | Accrual in the period | Switch-back in the period | Reversal/Charge-off in the period | Causes |
Total | 0.00 | 0.00 | 0.00 | -- |
Other explanation:
Nil
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 |
Total | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -- |
Other explanation:
Nil
12. Non-current asset due within one year
In RMB
Item | Balance at period-end | Balance at period-begin |
Total | 0.00 |
Important creditors’ investment/Other creditors’ investment
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 | |
Total | 0.00 | —— | —— | —— | 0.00 | —— | —— | —— |
Other explanation:
Nil
13. Other current assets
Whether implemented the new revenue standards
□Yes √No
In RMB
Item | Balance at period-end | Balance at period-begin |
Tax credit and input tax to be certified | 3,188,649.68 | |
Prepaid corporate income tax | 129,864.57 | 463,849.63 |
Prepaid personal income tax | 9,939.22 | |
Prepaid intermediary fee | 1,792,452.81 | |
Total | 3,318,514.25 | 2,266,241.66 |
Other explanation:
Nil
14. Creditors’ investment
In RMB
Item | Balance at period-end | Balance at period-begin | ||||
Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
Total | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Important creditors’ investment
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 | |
Total | 0.00 | —— | —— | —— | 0.00 | —— | —— | —— |
Accrual of impairment provision
In RMB
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
15. Other creditors’ investment
In RMB
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 |
Total | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | —— |
Important other creditors’ investment
In RMB
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 | |
Total | 0.00 | —— | —— | —— | 0.00 | —— | —— | —— |
Accrual of impairment provision
In RMB
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 on January 1, 2019 | 0.00 | |||
Balance of Jan. 1, 2019 in the period | —— | —— | —— | —— |
--Transfer to the second stage | 0.00 | |||
-- Transfer to the third stage | 0.00 | |||
-- Reversal to the second stage | 0.00 | |||
-- Reversal to the first stage | 0.00 | |||
Provision in Current Period | 0.00 | |||
Reversal in Current Period | 0.00 | |||
Conversion in Current Period | 0.00 | |||
Write off in Current Period | 0.00 | |||
Other change | 0.00 | |||
Balance on December 31, 2019 | 0.00 |
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 | ||
Total | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -- |
Impairment of bad debt provision
In RMB
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 on January 1, 2019 | 0.00 | 0.00 | 0.00 | 0.00 |
January 1, 2019 balance in the current period | —— | —— | —— | —— |
--Transfer to the second stage | 0.00 | |||
-- Transfer to the third stage | 0.00 | |||
-- Reversal to the second stage | 0.00 | |||
-- Reversal to the first stage | 0.00 | |||
Provision in Current Period | 0.00 | |||
Reversal in Current Period | 0.00 | |||
Conversion in Current Period | 0.00 | |||
Write off in Current Period | 0.00 | |||
Other change | 0.00 | |||
Balance on December 31, 2019 | 0.00 | 0.00 | 0.00 | 0.00 |
Change of book balance of loss provision with amount has major changes in the period
□Applicable √Not applicable
Nil
(2) Long-term account receivable derecognized due to financial assets transfer
Nil
(3) Assets and liabilities resulted by long-term account receivable transfer and continues involvement
NilOther explanationNil
17. Long-term equity investments
In RMB
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 | Investment gains recognized under equity | Other comprehensive income adjustment | Other equity change | Cash dividend or profit announced to issued | Accrual of impairment provision | Other | ||||
I. Joint venture | |||||||||||
Subtotal | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
II. Associated enterprise | |||||||||||
Subtotal | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Total | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Other explanationNil
18. Other equity instrument investment
In RMB
Item | Balance at period-end | Balance at period-begin |
Total | 0.00 |
Itemized the non-tradable equity instrument investment in the period
In RMB
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 | Cause of retained earnings transfer from other comprehensive income |
Other explanation:
Nil
19. Other non-current financial assets
In RMB
reckoned intoothercomprehensive
incomeItem
Item | Balance at period-end | Balance at period-begin |
Total | 0.00 |
Other explanation:
Nil
20. Investment real estate
(1) Investment real estate measured at cost
□Applicable √Not applicable
(2) Investment real estate measured at fair value
□Applicable √Not applicable
(3) Investment real estate without property rights certificate
In RMB
Item | Book value | Reasons for failing to complete the property rights certificate |
Other explanationNil
21. Fixed assets
In RMB
Item | Balance at period-end | Balance at period-begin |
Fixed assets | 4,191,503.33 | 3,502,807.32 |
Total | 4,191,503.33 | 3,502,807.32 |
(1) Fixed assets
In RMB
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 | 1,061,061.97 | 4,247.79 | 1,065,309.76 | ||
(1) Purchase | 1,061,061.97 | 4,247.79 | 1,065,309.76 | ||
(2) construction in process transfer-in | |||||
(3) the increase in business combination | |||||
3.Current decreased | |||||
(1) Disposal or scrap | |||||
4.Balance at period-end | 2,959,824.00 | 1,477,691.03 | 958,593.21 | 230,136.11 | 5,626,244.35 |
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 | 133,192.08 | 71,200.26 | 144,079.80 | 28,141.61 | 376,613.75 |
(1) Accrual | 133,192.08 | 71,200.26 | 144,079.80 | 28,141.61 | 376,613.75 |
3.Current decreased | |||||
(1) Disposal or scrap | |||||
4.Balance at period-end | 466,172.28 | 217,943.02 | 586,406.73 | 164,218.99 | 1,434,741.02 |
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 | 2,493,651.72 | 1,259,748.01 | 372,186.48 | 65,917.12 | 4,191,503.33 |
2.Opening book value | 2,626,843.80 | 269,886.30 | 516,266.28 | 89,810.94 | 3,502,807.32 |
(2) Fixed assets temporary idle
In RMB
Item | Original book value | Accumulated depreciation | Impairment provision | Book value | Note |
(3) Fixed assets leasing-in by financing lease
In RMB
Item | Original book value | Accumulated depreciation | Impairment provision | Book value |
(4) Fixed assets leasing-out by operational lease
In RMB
Item | Ending book value |
(5) Fixed assets without property rights certificate
In RMB
Item | Book value | Reasons for failing to complete the property rights certificate |
Six properties in Lianxin Garden | 2,493,651.72 | The six properties 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. |
Other explanationNo accrual for impairment provision due to there was no evidence of impairment being found in fixed assets at period-end
(6) Fixed assets disposal
In RMB
Item | Balance at period-end | Balance at period-begin |
Other explanationNil
22. Construction in progress
In RMB
Item | Balance at period-end | Balance at period-begin |
Total | 0.00 |
(1) Construction in progress
In RMB
Item | Balance at period-end | Balance at period-begin | ||||
Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
Total | 0.00 | 0.00 | 0.00 | 0.00 |
(2) Changes in significant construction in progress
In RMB
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 |
Total | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -- | -- | 0.00 | 0.00 | 0.00% | -- |
(3) Depreciation reserves accrual
In RMB
Item | Accrual in the period | Reasons for accrual |
Total | 0.00 |
Other explanationNil
(4) Engineering materials
In RMB
Item | Balance at period-end | Balance at period-begin | ||||
Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value |
Other explanation:
Nil
23. Productive biological asset
(1) Productive biological assets measured by cost
□Applicable √Not applicable
(2) Productive biological assets measured by fair value
□Applicable √Not applicable
24. Oil and gas asset
□Applicable √Not applicable
25. Right-of-use asset
In RMB
Item | Total |
Other explanation:
Nil
26. Intangible assets
(1) Intangible assets
In RMB
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 | |||||
(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 | 753,000.00 | 753,000.00 |
(1) Accrual | 753,000.00 | 753,000.00 | |||
3.Current decreased | |||||
(1) Disposal | |||||
4.Balance at period-end | 4,518,000.00 | 4,518,000.00 | |||
III. Impairment provision | |||||
1.Balance at period-begin | |||||
2.Current increased | |||||
(1) Accrual | |||||
3.Current decreased | |||||
(1) Disposal | |||||
4.Balance at period-end | |||||
IV. Book value | |||||
1.Ending book value | 753,000.00 | 753,000.00 | |||
2.Opening book value | 1,506,000.00 | 1,506,000.00 |
Ratio of intangible assets resulted from internal R&D in balance of intangible assets at period-end
(2) Land use right without certificate of title completed
In RMB
Item | Book value | Reasons for failing to complete the property rights certificate |
Other explanation:
Nil
27. Expense on Research and Development
In RMB
Item | Balance at period-begin | Current increased | Current decreased | Balance at period-end | ||||
Internal development expenditure | Other | Confirmed as intangible assets | Transfer to current profit and loss | |||||
Total | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Other explanationNil
28. Goodwill
(1) Original book value of goodwill
In RMB
The invested entity or items | Balance at period-begin | Current increased | Current decreased | Balance at period-end | ||
Formed by business combination | Dispose | |||||
Total | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
(2) Impairment provision of goodwill
In RMB
The invested entity or items | Balance at period-begin | Current increased | Current decreased | Balance at period-end | ||
Formed by business combination | Dispose | |||||
Total | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Information about the asset group or asset group combination in which the goodwill is locatedNilExplain the method of confirming the goodwill impairment test process, key parameters (such as the forecast period growth rate,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 goodwill
NilOther 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 |
Total | 0.00 | 0.00 | 0.00 | 0.00 |
Other explanationNil
30. Deferred income tax assets/Deferred income tax liabilities
(1) Deferred income tax assets without offset
In RMB
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 | 1,042,582.16 | 4,170,328.65 | 1,040,621.18 | 4,162,484.72 |
Total | 1,042,582.16 | 4,170,328.65 | 1,040,621.18 | 4,162,484.72 |
(2) Deferred income tax liabilities without offset
In RMB
Item | Balance at period-end | Balance at period-begin | ||
Taxable temporary differences | Deferred income tax liabilities | Taxable temporary differences | Deferred income tax liabilities | |
Total | 0.00 | 0.00 | 0.00 | 0.00 |
(3) Deferred income tax assets and deferred income tax liabilities listed after off-set
In RMB
Item | Trade-off between the deferred income tax assets and liabilities | Ending balance of deferred income tax assets or liabilities after off-set | Trade-off between the deferred income tax assets and liabilities at period-begin | Opening balance of deferred income tax assets or liabilities after off-set |
Deferred income tax assets | 1,042,582.16 | 1,040,621.18 |
(4) Details of unrecognized deferred income tax assets
In RMB
Item | Balance at period-end | Balance at period-begin |
(5) Deductible losses of un-recognized deferred income tax assets expired on the followed year
In RMB
Year | Ending amount | Opening amount | Note |
Total | 0.00 | 0.00 | -- |
Other explanation:
As stated under article 17 of the Enterprise Accounting Standards No.18-Income Tax, deferred income tax assets and deferred incometax liabilities shall be measured at the tax rate applicable in the period in which the assets are expected to be recovered or liabilitiesare expected to be settled according to relevant tax laws on the balance sheet date. The tax rate adopted by the Company incalculating deferred income tax assets is 25% for both parent company and subsidiaries.
31. Other non-current assets
Whether implemented the new revenue standards
□Yes √No
In RMB
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 |
Other explanation:
In 2016, the Company paid the four houses in advance for enterprise talent, located in Yinhu Lanshan, to Shenzhen Housing andConstruction Bureau of Luohu District, up to 31
st
December 2019, payment are not paid by Shenzhen Housing and ConstructionBureau of Luohu District yet
32. Short-term loans
(1) Category
In RMB
Item | Balance at period-end | Balance at period-begin |
Total | 0.00 |
Explanation on short-term loans category:
Nil
(2) Overdue outstanding short-term loans
Total 0.00 Yuan overdue outstanding short-term loans at period-end, including the followed significant amount:
In RMB
Borrower | Balance at period-end | Lending rate | Overdue time | Overdue rate |
Total | 0.00 | -- | -- | -- |
Other explanation:
Nil
33. Trading financial liability
In RMB
Item | Balance at period-end | Balance at period-begin |
Including: | ||
Including: | ||
Total | 0.00 |
Other explanation:
Nil
34. Derivative financial liability
In RMB
Item | Balance at period-end | Balance at period-begin |
Total | 0.00 |
Other explanation:
Nil
35. Notes payable
In RMB
Category | Balance at period-end | Balance at period-begin |
Bank acceptance | 2,000,000.00 | |
Total | 2,000,000.00 |
Notes expired at period-end without paid was 0.00 Yuan.
36. Account payable
(1) Account payable
In RMB
Item | Balance at period-end | Balance at period-begin |
Within one year (one year included) | 9,575,684.30 | 9,713,137.52 |
1-2 years (2 years included) | 487,016.93 | 7,099.50 |
2-3 years (3 years included) | 7,099.50 | 137,423.41 |
3-4 years (4 years included) | 118,380.50 | 2,366.00 |
4-5 years (5 years included) | 2,366.00 | |
Over 5 years | 838.00 | 118,984.26 |
Total | 10,191,385.23 | 9,979,010.69 |
(2) Important account payable with account age over one year
In RMB
Item | Balance at period-end | Reasons of un-paid or carry-over |
Total | 0.00 | -- |
Other explanation:
The top five accounts payable at the end of the period
Enterprise | Relationship with the company | Amount | Percentage of total other payable (%) | Nature |
Tianjin Jianya Electronic Technology Co., Ltd. | Non-related party | 4,487,754.18 | 44.03 | Goods payment |
Baodao Vehicle Industry Group Co., Ltd. | Non-related party | 2,334,158.00 | 22.90 | Goods payment |
Changzhou Youyi Vehicle Technology Co., Ltd. | Non-related party | 754,123.00 | 7.40 | Goods payment |
Shanghai Junbao Diamond Co., Ltd. | Non-related party | 505,353.10 | 4.96 | Goods payment |
Jinda Intelligent Technology Co., Ltd. | Non-related party | 498,891.00 | 4.90 | Goods payment |
Total | 8,580,279.28 | 84.19 |
37. Account received in advance
Whether implemented the new revenue standards
□Yes √No
(1) Account received in advance
In RMB
Item | Balance at period-end | Balance at period-begin |
Within one year (one year included) | 1,694,366.18 | 371,039.28 |
1-2 years (2 years included) | 16,396.62 | 3,469.60 |
2-3 years (3 years included) | 2,080.00 | |
Over 3 years | 29,191.00 | 29,191.00 |
Total | 1,739,953.80 | 405,779.88 |
(2) Account received in advance with over one year book age
In RMB
Item | Balance at period-end | Reasons of un-paid or carry-over |
Total | 0.00 | -- |
(3) Projects that settle without completed from construction contract at period-end
In RMB
Item | Amount |
Other explanation:
There is no account from the shareholders or other related parties holding more than 5% (including 5%) of the voting shares of theCompany among the receivables received in advance at end of the period. There is no significant account received in advance overone year in age at end of the period.
38. Contract liability
In RMB
Item | Balance at period-end | Balance at period-begin |
Total | 0.00 |
Book value has major changes in the period and causes
In RMB
Item | Amount changes | Causes |
Total | 0.00 | —— |
39. Wage payable
(1) Wage payable
In RMB
Item | Balance at period-begin | Current increased | Current decreased | Balance at period-end |
I. Short-term | 435,736.16 | 5,851,298.80 | 5,687,072.23 | 599,962.73 |
compensation | ||||
II. Post-employment benefit-Defined contribution plan | 387,429.42 | 387,429.42 | ||
Total | 435,736.16 | 6,238,728.22 | 6,074,501.65 | 599,962.73 |
(2) Short-term compensation
In RMB
Item | Balance at period-begin | Current increased | Current decreased | Balance at period-end |
1. Wages, bonus, allowances and subsidy | 428,742.32 | 5,088,991.12 | 4,924,273.50 | 593,459.94 |
2. Employee benefits | 99,731.30 | 99,731.30 | ||
3. Social insurance | 180,592.80 | 180,592.80 | ||
Including: Medical insurance | 162,357.17 | 162,357.17 | ||
Work injury insurance | 5,585.07 | 5,585.07 | ||
Maternity insurance | 12,650.56 | 12,650.56 | ||
4. Housing accumulation fund | 388,396.24 | 388,396.24 | ||
5. Labor union expenditure and personnel education expense | 6,993.84 | 81,327.32 | 81,818.37 | 6,502.79 |
8. Other short-term compensation | 12,260.02 | 12,260.02 | ||
Total | 435,736.16 | 5,851,298.80 | 5,687,072.23 | 599,962.73 |
(3) Defined contribution plan
In RMB
Item | Balance at period-begin | Current increased | Current decreased | Balance at period-end |
1. Basic endowment insurance | 380,119.49 | 380,119.49 | ||
2. Unemployment insurance | 7,309.93 | 7,309.93 | ||
Total | 387,429.42 | 387,429.42 |
Other explanation:
At the end of the period, there was no arrears in employee compensation.
40. Taxes payable
In RMB
Item | Balance at period-end | Balance at period-begin |
Value added tax | 540,203.08 | 5,716,531.88 |
Corporate income tax | 14,285.50 | |
Individual income tax | 21,755.56 | 25,288.27 |
Tax for maintaining and building cities | 925.10 | 325,396.78 |
Educational surtax | 623.21 | 227,569.65 |
Stamp tax | 7,270.30 | 2,309.70 |
Total | 585,062.75 | 6,297,096.28 |
Other explanation:
Nil
41. Other account payable
In RMB
Item | Balance at period-end | Balance at period-begin |
Interest payable | 0.00 | |
Dividend payable | 0.00 | |
Other account payable | 38,175,654.98 | 37,144,872.42 |
Total | 38,175,654.98 | 37,144,872.42 |
(1) Interest payable
In RMB
Item | Balance at period-end | Balance at period-begin |
Total | 0.00 |
Important interest overdue without paid:
In RMB
Borrower | Amount overdue | Overdue reason |
Total | 0.00 | -- |
Other explanation:
Nil
(2) Dividend payable
In RMB
Item | Balance at period-end | Balance at period-begin |
Total | 0.00 |
Other explanation, including dividends payable with over one year age and disclosure un-payment reasons:
Nil
(3) Other account payable
1) By nature
In RMB
Item | Balance at period-end | Balance at period-begin |
Custodian and common benefit debts | 18,764,512.80 | 18,853,692.84 |
Intercourse funds | 6,500,000.00 | 6,500,000.00 |
Warranty and guarantee money | 11,291,325.00 | 9,767,553.26 |
Other payable service charge (intermediary services included) | 876,599.88 | 801,237.74 |
Other | 743,217.30 | 1,222,388.58 |
Total | 38,175,654.98 | 37,144,872.42 |
2) Significant other payable with over one year age
In RMB
Item | Balance at period-end | Reasons of un-paid or carry-over |
Custodian and common benefit debts | 18,764,512.80 | - |
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 | 33,264,512.80 | -- |
Other explanation
Top 5 other receivables at period-end
Enterprise | Relationship with the company | Amount | Ratio in total other receivables (%) | Nature |
Custodian and common benefit debts | Non-related party | 18,764,512.80 | 49.15 | Obligatory right of common benefit |
Shenzhen Guosheng Energy Investment Development Co., Ltd. | Related party | 6,500,000.00 | 17.03 | Interest-free loans |
Shenzhen Ruian Information Technology Enterprise (LP) | Non-related party | 2,500,000.00 | 6.55 | Cash deposit |
Wansheng Industrial Holdings (Shenzhen) Co., Ltd. | Non-related party | 2,000,000.00 | 5.24 | Cash deposit |
Shenzhen Zhisheng Hi-Tech Enterprise (LP) | Non-related party | 2,000,000.00 | 5.24 | Cash deposit |
Total | 31,764,512.80 | 83.21 |
42. Liability held for sale
In RMB
Item | Balance at period-end | Balance at period-begin |
Total | 0.00 |
Other explanation:
Nil
43. Non-current liabilities due within one year
In RMB
Item | Balance at period-end | Balance at period-begin |
Total | 0.00 |
Other explanation:
Nil
44. Other current liabilities
Whether implemented the new revenue standards
□Yes √No
In RMB
Item | Balance at period-end | Balance at period-begin |
Total | 0.00 |
Changes of short-term bond payable:
In RMB
Bond | Face value | Release date | Bond period | Issuing amount | Opening balance | Issued in the Period | Accrual interest by face value | Premium/discount amortization | Paid in the Period | Balance at period-end | |
Total | -- | -- | -- | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Other explanation:
Nil
45. Long-term loans
(1) category
In RMB
Item | Balance at period-end | Balance at period-begin |
Total | 0.00 |
Explanation on category of long-term loans:
NilOther explanation, including interest rate section:
Nil
46. Bonds payable
(1) Bonds payable
In RMB
Item | Balance at period-end | Balance at period-begin |
Total | 0.00 |
(2) Changes of bonds payable (not including the other financial instrument of preferred stock andperpetual capital securities that classify as financial liability)
In RMB
Bond | Face value | Release date | Bond period | Issuing amount | Opening balance | Issued in the Period | Accrual interest by face value | Premium/discount amortization | Paid in the Period | Balance at period-end | |
Total | -- | -- | -- | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
(3) Convertible conditions and time for shares transfer for the convertible bonds
Nil
(4) Other financial instruments classify as financial liability
Basic information of the outstanding preferred stock and perpetual capital securities at period-endNilChanges of outstanding preferred stock and perpetual capital securities at period-end
In RMB
Outstanding | Period-begin | Current increased | Current decreased | Period-end |
financial instrument | Amount | Book value | Amount | Book value | Amount | Book value | Amount | Book value |
Total | 0 | 0.00 | 0 | 0.00 | 0 | 0.00 | 0 | 0.00 |
Basis for financial liability classification for other financial instrumentNilOther explanationNil
47. Lease liability
In RMB
Item | Balance at period-end | Balance at period-begin |
Total | 0.00 |
Other explanationNil
48. Long-term account payable
In RMB
Item | Balance at period-end | Balance at period-begin |
Total | 0.00 |
(1) By nature
In RMB
Item | Balance at period-end | Balance at period-begin |
Total | 0.00 |
Other explanation:
Nil
(2) Special payable
In RMB
Item | Balance at period-begin | Current increased | Current decreased | Balance at period-end | Causes of formation |
Total | 0.00 | 0.00 | -- |
Other explanation:
Nil
49. Long-term wages payable
(1) Long-term wages payable
In RMB
Item | Balance at period-end | Balance at period-begin |
Total | 0.00 |
(2) Changes of defined benefit plans
Present value of the defined benefit plans:
In RMB
Item | Current Period | Last Period |
Scheme assets:
In RMB
Item | Current Period | Last Period |
Net liability (assets) of the defined benefit plans
In RMB
Item | Current Period | Last Period |
Content of defined benefit plans and relevant risks, impact on future cash flow of the Company as well as times and uncertainty:
NilMajor actuarial assumption and sensitivity analysis:
NilOther explanation:
Nil
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 |
Total | 0.00 | -- |
Other explanation, including relevant important assumptions and estimation:
Nil
51. Deferred income
In RMB
Item | Balance at period-begin | Current increased | Current decreased | Balance at period-end | Causes of formation |
Total | 0.00 | 0.00 | 0.00 | -- |
Item with government grants involved:
In RMB
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 |
Other explanation:
Nil
52. Other non-current liabilities
Whether implemented the new revenue standards
□Yes √No
In RMB
Item | Balance at period-end | Balance at period-begin |
Total | 0.00 |
Other explanation:
Nil
53. Share capital
In RMB
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 | 551,347,947.00 | 551,347,947.00 |
Other explanation:
Nil
54. Other equity instrument
(1) Basic information of the outstanding preferred stock and perpetual capital securities at period-endNil
(2) Changes of outstanding preferred stock and perpetual capital securities at period-end
In RMB
Outstanding financial instrument | Period-begin | Current increased | Current decreased | Period-end | ||||
Amount | Book value | Amount | Book value | Amount | Book value | Amount | Book value | |
Total | 0 | 0.00 | 0 | 0.00 | 0 | 0.00 | 0 |
Changes of other equity instrument, change reasons and relevant accounting treatment basis:
NilOther explanation:
Nil
55. Capital public reserve
In RMB
Item | Balance at period-begin | Current increased | Current decreased | Balance at period-end |
Other capital reserve | 627,834,297.85 | 627,834,297.85 | ||
1. Debt restructuring income | 482,580,588.23 | 482,580,588.23 | ||
2. Other | 145,253,709.62 | 145,253,709.62 | ||
Total | 627,834,297.85 | 627,834,297.85 |
Other explanation, including changes and reasons for changes:
Among the other capital reserves, 135,840,297.18 Yuan refers to the payment for creditor from shares assignment by wholeshareholders; majority shareholder Guosheng Energy donated 5,390,399.74 Yuan.
56. Treasury stock
In RMB
Item | Balance at period-begin | Current increased | Current decreased | Balance at period-end |
Total | 0.00 | 0.00 | 0.00 |
Other explanation, including changes and reasons for changes:
Nil
57.Other comprehensive income
In RMB
Item | Balance at period-begin | Current Period | Balance at period-end | |||||
Account before income tax | Less: written in other comprehensi | Less: written in other | Less: income tax expense | Belong to parent company | Belong to minority shareholders |
in the period | ve income in previous period and carried forward to gains and losses in current period | comprehensive income in previous period and carried forward to retained earnings in current period | after tax | after tax | ||||
Total other comprehensive income | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Other explanation, including the active part of the hedging gains/losses of cash flow transfer to initial recognition adjustment for thearbitraged items:
Nil
58. Reasonable reserve
In RMB
Item | Balance at period-begin | Current increased | Current decreased | Balance at period-end |
Total | 0.00 | 0.00 | 0.00 |
Other explanation, including changes and reasons for changes:
Nil
59. Surplus public reserve
In RMB
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 |
Other explanation, including changes and reasons for changes:
Nil
60. Retained profit
In RMB
Item | Current period | Last Period |
Retained profit at period-end before adjustment | -1,197,549,169.92 | -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 | -7,186,905.64 | -1,591,968.91 |
Retained profit at period-end | -1,204,736,075.56 | -1,197,549,169.92 |
Adjustment for retained profit at period-begin:
1) Retroactive adjustment due to the Accounting Standards for Business Enterprise and relevant new regulations, retained profit atperiod-begin has 0.00 Yuan affected;
2) Due to the accounting policy changes, retained profit at period-begin has 0.00 Yuan affected;
3) Due to the major accounting errors correction, retained profit at period-begin has 0.00 Yuan affected;
4) Consolidation range changed due to the same control, retained profit at period-begin has 0.00 Yuan affected;
5) Total other adjustment impacts 0.00 Yuan retained profit at period-begin
61. Operation revenue and operation cost
In RMB
Item | Current Period | Last Period | ||
Revenue | Cost | Revenue | Cost | |
Main business | 71,095,404.57 | 67,928,471.12 | 115,698,679.57 | 107,318,430.05 |
Other business | 4,927,283.18 | 753,000.00 | 4,208,270.77 | 753,000.00 |
Total | 76,022,687.75 | 68,681,471.12 | 119,906,950.34 | 108,071,430.05 |
Whether implemented the new revenue standards
□Yes √No
Other explanationNil
62. Tax and extras
In RMB
Item | Current Period | Last Period |
Tax for maintaining and building cities | 4,714.10 | 391,013.39 |
Educational surtax | 8,179.47 | 279,295.29 |
Vehicle usage tax | 1,889.84 | 3,089.84 |
Stamp tax | 44,621.80 | 54,238.30 |
Total | 59,405.21 | 727,636.82 |
Other explanation:
Nil
63. Sales expenses
In RMB
Item | Current Period | Last Period |
Employee compensation | 1,301,441.35 | 2,954,021.25 |
Marketing promotion fees | 792,290.55 | 1,052,618.98 |
Lease fee | 433,292.57 | 441,316.59 |
Business travel expenses | 421,922.06 | 812,392.85 |
Business entertainment | 52,516.39 | 336,219.12 |
Other | 177,013.47 | 336,662.62 |
Total | 3,178,476.39 | 5,933,231.41 |
Other explanation:
Nil
64. Administrative expenses
In RMB
Item | Current Period | Last Period |
Employee compensation | 2,579,922.45 | 3,298,560.81 |
Intermediary service fee | 3,149,023.50 | 1,102,426.83 |
Daily management expenses | 327,050.29 | 1,856,424.16 |
Depreciation and amortization | 353,469.35 | 369,874.42 |
Total | 6,409,465.59 | 6,627,286.22 |
Other explanation:
Nil
65. R&D expenses
In RMB
Item | Current Period | Last Period |
Employee compensation and benefits | 1,409,100.34 | |
Direct input materials | 763,338.82 | |
Depreciation of fixed assets | 23,144.40 | |
Factory rent and utilities | 553,243.59 | |
Other | 4,450.57 | |
Total | 2,753,277.72 |
Other explanation:
Nil
66. Financial expenses
In RMB
Item | Current Period | Last Period |
Interest income | -110,834.04 | -369,745.70 |
Commission charge etc. | 15,432.87 | 21,061.54 |
Total | -95,401.17 | -348,684.16 |
Other explanation:
Nil
67. Other income
In RMB
Sources | Current Period | Last Period |
68. Investment income
In RMB
Item | Current Period | Last Period |
Other explanation:
Nil
69. Net exposure hedge gains
In RMB
Item | Current Period | Last Period |
Other explanation:
Nil
70. Income from change of fair value
In RMB
Sources | Current Period | Last Period |
Other explanation:
Nil
71. Credit impairment loss
In RMB
Item | Current Period | Last Period |
Bad debt loss of other account receivable | -39,386.50 | |
Bad debt losses of accounts receivable | -2,493,679.37 | |
Total | -2,533,065.87 |
Other explanation:
Nil
72. Losses of devaluation of asset
Whether implemented the new revenue standards
□Yes √No
In RMB
Item | Current Period | Last Period |
I. Bad debt losses | -836,438.10 | |
II. Inventory falling price loss | -499,175.17 | -364,088.31 |
Total | -499,175.17 | -1,200,526.41 |
Other explanation:
Nil
73. Income from assets disposal
In RMB
Sources | Current Period | Last Period |
74. Non-operating income
In RMB
Item | Current Period | Last Period | Amount reckoned in current non-recurring gains/losses |
Other | 6,259,839.85 | 4,634,304.77 | 6,259,839.85 |
Total | 6,259,839.85 | 4,634,304.77 | 6,259,839.85 |
Government grants reckoned into current gains/losses:
In RMB
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 |
Other explanation:
1. Non-operation revenue last period mainly due to the rental revenue settle with the custodian, that is 3,256,516.11 Yuan and
compensation of 1,086,507.70 Yuan;
2. Non-operation revenue in current period mainly due to the rental revenue settle with the custodian, that is 5,565,684.61 Yuan andcompensation of 399,113.20 Yuan;
75. Non-operating expenses
In RMB
Item | Current Period | Last Period | Amount reckoned in current non-recurring gains/losses |
Fine expenditure | 188.00 | 188.00 | |
Damage and scrap loss for non-current assets | 85,730.05 | ||
Loss of old trademark scrap | 461,858.18 | 461,858.18 | |
Other | 5,603,102.65 | 4,373,162.81 | 5,603,102.65 |
Total | 6,065,148.83 | 4,458,892.86 | 6,065,148.83 |
Other explanation:
In the period and last period, the operation assets for assets to be disposed are not allocated by management, relevant maintenanceand management costs are paid by the revenue and loss compensation income from assets leasing (the assets to be disposed),reckoned into non-operating expenditure
76. Income tax expenses
(1) Income tax expenses
In RMB
Item | Current Period | Last Period |
Current income tax expense | 14,285.50 | 50,233.75 |
Deferred income tax expense | -1,960.98 | -298,792.47 |
Total | 12,324.52 | -248,558.72 |
(2) Adjustment on accounting profit and income tax expenses
In RMB
Item | Current Period |
Total Profit | -7,801,557.13 |
Income tax measured by statutory/applicable tax rate | -1,950,389.28 |
The impact of applying different tax rates to subsidiaries | -57,142.02 |
Impact on cost, expenses and losses that unable to deducted | -48,828.10 |
Impact on deductible temporary differences or losses deductible | 2,068,683.92 |
which was un-recognized as deferred income tax assets | |
Income tax expenses | 12,324.52 |
Other explanationNil
77. Other comprehensive income
Found more in Note 57
78. Items of cash flow statement
(1) Other cash received in relation to operation activities
In RMB
Item | Current Period | Last Period |
Interest and Rent and utilities etc. | 6,348,431.90 | 4,406,556.57 |
Deposits and guarantees received | 1,916,551.74 | |
Other intercourse funds | 150,980.41 | 32,000.00 |
Total | 8,415,964.05 | 4,438,556.57 |
Explanation on other cash received in relation to operation activities:
Nil
(2) Other cash paid in relation to operation activities
In RMB
Item | Current Period | Last Period |
Expenses such as rent and property management maintenance fees | 5,203,779.09 | 3,394,536.88 |
Pay cash management fee | 1,277,844.35 | 2,496,549.86 |
Pay cash for research and development | 1,297,888.58 | |
Pay cash for sales | 1,877,035.04 | 2,775,796.71 |
Intercourse funds | 1,232,265.94 | |
Deposits and security deposits paid | 363,930.00 | 285,712.13 |
Handling expenses | 15,432.87 | |
Utilities | 151,193.17 | 652,106.63 |
Non-operating expenses | 30,140.00 | |
Total | 11,419,369.04 | 9,634,842.21 |
Explanation on other cash paid in relation to operation activities:
Nil
(3) Cash received from other investment activities
In RMB
Item | Current Period | Last Period |
Explanation on cash received from other investment activities:
Nil
(4) Cash paid related with investment activities
In RMB
Item | Current Period | Last Period |
Explanation on cash paid related with investment activitiesNil
(5) Other cash received in relation to financing activities
In RMB
Item | Current Period | Last Period |
Bill margin received | 2,000,000.00 | 8,808,378.06 |
Total | 2,000,000.00 | 8,808,378.06 |
Explanation on other cash received in relation to financing activities:
Nil
(6) Cash paid related with financing activities
In RMB
Item | Current Period | Last Period |
Payment of bill margin | 2,000,000.00 | |
Total | 2,000,000.00 |
Explanation on cash paid related with financing activities:
Nil
79. Supplementary information to statement of cash flow
(1) Supplementary information to statement of cash flow
In RMB
Supplementary information | Current period | Last Period |
1. Net profit adjusted to cash flow of operation activities: | -- | -- |
Net profit | -7,813,881.65 | -1,880,505.78 |
Add: Assets impairment provision | 3,032,241.04 | 1,200,526.41 |
Depreciation of fixed assets, consumption of oil assets and depreciation of productive biology assets | 376,613.75 | 369,874.42 |
Amortization of intangible assets | 753,000.00 | 753,000.00 |
Fixed asset retirement loss (increase is listed with “-”) | 85,730.05 | |
Decrease of deferred income tax asset (increase is listed with “-”) | -1,960.98 | -298,792.47 |
Decrease of inventory (increase is listed with “-”) | -4,190,901.53 | 26,482.38 |
Decrease of operating receivable accounts (increase is listed with “-”) | -808,843.28 | -11,299,293.84 |
Increase of operating payable accounts (decrease is listed with “-”) | -5,138,208.69 | 1,563,504.67 |
Net cash flow from operation activities | -13,791,941.34 | -9,479,474.16 |
2. Material investment and financing not involved in cash flow | -- | -- |
3. Net change of cash and cash equivalents: | -- | -- |
Cash closing balance | 6,074,367.91 | 16,488,886.26 |
Less: Balance of cash equivalent Balance at period-begin | 16,488,886.26 | 19,177,276.18 |
Net increased amount of cash and cash equivalent | -10,414,518.35 | -2,688,389.92 |
(2) Net cash paid for obtaining subsidiary in the Period
In RMB
Amount | |
Including: | -- |
Including: | -- |
Including: | -- |
Other explanation:
Nil
(3) Net cash received by disposing subsidiary in the Period
In RMB
Amount | |
Including: | -- |
Including: | -- |
Including: | -- |
Other explanation:
(4) Constitution of cash and cash equivalent
In RMB
Item | Balance at period-end | Balance at period-begin |
I. Cash | 6,074,367.91 | 16,488,886.26 |
Including: Cash on hand | 89,313.66 | 126,486.63 |
Bank deposit available for payment at any time | 5,979,003.60 | 16,305,989.07 |
Other monetary fund available for payment at any time | 6,050.65 | 56,410.56 |
Ⅲ. Balance of cash and cash equivalent at period-end | 6,074,367.91 | 16,488,886.26 |
Other explanation:
Nil
80. Notes of changes of owners’ equity
Explain the name and adjusted amount in “Other” at end of last period:
Nil
81. Assets with ownership or use right restricted
In RMB
Item | Ending book value | Restriction reasons |
Total | 0.00 | -- |
Other explanation:
Nil
82. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
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 | |||
Other explanation:
Nil
(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 |
(2) Government grants rebate
□Applicable √Not applicable
Other explanation:
Nil
85. Other
Nil
VIII. Changes of consolidation range
1. Enterprise combined under different control
(1) Enterprise combined under different control in the Period
In RMB
Acquiree | Time point for equity obtained | Cost of equity obtained | Ratio of equity obtained | Acquired way Equity obtained way | Purchasing date | Standard to determine the purchasing date | Income of acquiree from purchasing date to period-end | Net profit of acquiree from purchasing date to period-end |
Other explanation:
Nil
(2) Combination cost and goodwill
In RMB
Combination cost |
Determination method for fair value of the combination cost and contingent consideration and changes:
NilMain reasons for large goodwill resulted:
NilOther explanation:
Nil
(3) Identifiable assets and liability on purchasing date under the acquiree
In RMB
Fair value on purchasing date | Book value on purchasing date |
Determination method for fair value of the identifiable assets and liabilities:
NilContingent liability of the acquiree bear during combination:
NilOther explanation:
Nil
(4) Gains or losses arising from re-measured by fair value for the equity held before purchasing dateWhether it is a business combination realized by two or more transactions of exchange and a transaction of obtained control rights inthe Period or not
□Yes √No
(5) On purchasing date or period-end of the combination, combination consideration or fair value ofidentifiable assets and liability for the acquiree are un-able to confirm rationallyNil
(6) Other explanation
Nil
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 |
Other explanation:
Nil
(2) Combination cost
In RMB
Combination cost |
Explanation on contingent consideration and its changes:
NilOther explanation:
Nil
(3) Assets and liability of the combined party on combination date
In RMB
Combination date | At end of last period |
Contingent liability of the combined party bear during combination:
NilOther explanation:
Nil
3. Counter purchase
Basic transaction information, basis of counter purchase, whether making up business due to the assets and liability reserved by listedcompany and basis, determination of combination cost, amount and calculation on adjusted equity by equity transactionNil
4. Subsidiary disposal
Whether lost controlling rights while dispose subsidiary on one time or not
□ Yes √ No
Whether lost controlling rights in the Period while dispose subsidiary on two or more steps or not
□ Yes √ No
5. Other reasons for consolidation range changed
Reasons for changed on consolidation range (such as new subsidiary established, subsidiary liquidated etc.)And relevant informationIn August 2019, the Company and Shenzhen Zuankinson Jewelry Co., Ltd jointly established a Shenzhen Xinsen Jewelry and GoldSupply Chain Co., ltd. of which, the Company holds 65% equity, while 35% equity held by Shenzhen Zuankinson Jewelry Co., Ltd,the enterprise was included in the consolidate scope since establishment.
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 | |
Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd. | Shenzhen | Shenzhen | Jewelry, diamonds, gold sales | 65.00% | Investment |
Explanation on share-holding ratio in subsidiary different from ratio of voting right:
NilBasis for controlling the invested entity with half or below voting rights held and without controlling invested entity but with overhalf and over voting rightsNilControlling basis for the structuring entity included in consolidated rangeNilBasis on determining to be an agent or consignor:
NilOther explanation:
Nil
(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% | -719,915.58 | 1,954,247.22 | |
Shenzhen Xinsen Jewelry | 35.00% | 92,939.57 | 2,367,939.57 |
Explanation on share-holding ratio of minority different from ratio of voting right:
NilOther explanation:
Nil
(3) Main finance of the important non-wholly-owned subsidiary
In RMB
Gold Supply Chain Co.,Ltd.Subsidiary
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. | 15,468,811.90 | 1,418,415.71 | 16,887,227.61 | 10,373,070.21 | 0.00 | 10,373,070.21 | 29,791,525.49 | 1,548,021.02 | 31,339,546.51 | 22,425,670.50 | 0.00 | 22,425,670.50 |
Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd. | 8,696,935.06 | 1,960.98 | 8,698,896.04 | 1,933,354.41 | 0.00 | 1,933,354.41 |
In RMB
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. | 15,470,013.00 | -2,399,718.61 | -2,399,718.61 | -6,376,002.30 | 88,175,813.90 | -961,789.56 | -961,789.56 | -2,982,485.91 |
Shenzhen Xinsen Jewelry Gold Supply Chain | 4,619,038.46 | 265,541.63 | 265,541.63 | -5,608,748.24 |
Other explanation:
Nil
(4) Major restriction on using corporate assets and liquidate corporate debtsNil
(5) Financial or other supporting provided to structuring entity that included in consolidated financialstatement
NilOther explanation:
Nil
2. Transaction that has owners equity shares changed in subsidiary but still with controlling rights
(1) Owners equity shares changed in subsidiary
Nil
(2) Impact on minority’s interest and owners’ equity attributable to parent company
In RMB
Co., Ltd.
Other explanationNil
3. Equity in joint venture and associated enterprise
(1) Important joint venture or associated enterprise
Joint venture or associated enterprise | Main operation place | Registered place | Business nature | Share-holding ratio | Accounting treatment | |
Directly | Indirectly |
Share-holding ratio or shares enjoyed different from voting right ratio:
NilBasis of the voting rights with 20% below but with major influence, or without major influence but with over 20% (20% included)voting rights hold:
Nil
(2) Main financial information of the important joint venture
In RMB
Balance at period-end/Current Period | Balance at period-begin/Last Period | |
Other explanationNil
(3) Main financial information of the important associated enterprise
In RMB
Balance at period-end/Current Period | Balance at period-begin/Last Period | |
Other explanationNil
(4) Financial summary for un-important joint venture or associated enterprise
In RMB
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 | -- | -- |
Other explanationNil
(5) Assets transfer ability has major restriction from joint venture or associated enterprise
Nil
(6) Excess losses from joint venture or associated enterprise
In RMB
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 |
Other explanation
Nil
(7) Un-confirmed commitment with investment concerned with joint venture
Nil
(8) Contingent liability with investment concerned with joint venture or associated enterpriseNil
4. Co-runs operation
Name | Main operation place | Registered place | Business nature | Share-holding ratio/share enjoyed | |
Directly | Indirectly |
Share-holding ratio or shares enjoyed different from voting right ratio:
NilIf the co-runs entity is the separate entity, basis of the co-runs classificationNilOther explanationNil
5. Equity in structuring entity that excluding in the consolidated financial statementRelevant explanationNil
6. Other
Nil
X. Risk related with financial instrument
The 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 equity
investors. 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 withrelevant 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 31December 2019, the gearing ratio of the Company was 81.76% (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 | -- | -- | -- | -- |
2. Recognized basis for the market price sustaining and non-persistent measured by fair value onfirst-orderNil
3. Valuation technique and qualitative and quantitative information on major parameters for the fair valuemeasure sustaining and non-persistent on second-orderNil
4. Valuation technique and qualitative and quantitative information on major parameters for the fair valuemeasure sustaining and non-persistent on third-order
Nil
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 point
Nil
7. Changes of valuation technique in the Period
Nil
8. Financial assets and liability not measured by fair value
Nil
9. Other
Nil
XII. Related party and related transactions
1. Parent company of the enterprise
Parent company | Registered place | Business nature | Registered capital | Share-holding ratio on the enterprise for parent company | Voting right ratio on the enterprise |
Explanation on parent company of the enterpriseThe Company has no parent company so far
Ultimate controller of the Company: nilOther explanation:
Controlling shareholder and actual controller of the Company have changed on 20 February 2017. Before changed, the first majorityshareholder of the Company was Shenzhen Guosheng Energy Investment Development Co., Ltd., actual controller was Mr. Ji Hanfei;the Company has no actual controller and controlling shareholder after changed. Found more in the Annual Report 2016 released on27 April 2017 and “Reply on Surveillance Attention Letter on CBC from Shenzhen Stock Exchange” released on 26 May 2017
2. Subsidiary of the Enterprise
Found more in Note IX-1
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 explanationNil
4. Other related party
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 Zuanjinsen Jewelry Co., Ltd. | Subsidiary Xinsen Jewelry Shareholder |
Shenzhen Guosheng Energy Investment Development Co., Ltd. | The first majority shareholder |
Other explanation
11.52 percent shares of the Company are held by Shenzhen Guosheng Energy Investment Development Co., Ltd.
5. Related transaction
(1) Goods purchasing, labor service providing and receiving
Goods purchasing/labor service receiving
In RMB
Related party | Transaction content | Current Period | Approved transaction amount | Whether more than the transaction amount | Last Period |
Shenzhen Zuanjinsen Jewelry Co., Ltd. | Purchase of raw materials | 2,428,035.40 | No | 0.00 |
Goods sold/labor service providing
In RMB
Related party | Transaction content | Current Period | Last Period |
Shenzhen Huahui Tongda Industrial Co., Ltd. | Sales of goods | 18,409.04 | 234,790.09 |
Explanation on goods purchasing, labor service providing and receivingNil
(2) Related trusteeship/contract and delegated administration/outsourcingTrusteeship/contract
In RMB
Client/ contract-out party | Entrusting party/ contractor | Assets type | Starting date | Maturity date | Yield pricing basis | Income from trusteeship/contract |
Explanation on related trusteeship/contractNilDelegated administration/outsourcing
In RMB
Client/ contract-out party | Entrusting party/ contractor | Assets type | Starting date | Maturity date | Pricing basis of trustee fee/outsourcing fee | trustee fee/outsourcing fee recognized in the Period |
Explanation on related administration/outsourcingNil
(3) Related lease
As a lessor for the Company:
In RMB
Lessee | Assets type | Lease income in recognized in the Period | Lease income in recognized last the Period |
As a lessee for the Company:
In RMB
Lessor | Assets type | Lease income in recognized in the Period | Lease income in recognized last the Period |
Explanation on related leaseNil
(4) Related guarantee
As a guarantor for the Company
In RMB
Secured party | Amount guarantee | Starting date | Maturity date | Guarantee completed (Y/N) |
As a secured party for the Company
In RMB
Guarantor | Amount guarantee | Starting date | Maturity date | Guarantee completed (Y/N) |
Explanation on related guaranteeNil
(5) Borrowed funds of related party
In RMB
Related party | Borrowed funds | Starting date | Due date | Note |
Borrowing | ||||
Lending |
(6) Assets transfer and debt restructuring of related party
In RMB
Related party | Transaction content | Current Period | Last Period |
(7) Remuneration of key manager
In RMB
Item | Current Period | Last Period |
Remuneration of key manager | 1,439,685.05 | 1,950,178.00 |
(8) Other related transactions
Nil
6. Receivable/payable items of related parties
(1) Receivable item
In RMB
Item | Related party | Balance at period-end | Balance at period-begin | ||
Book balance | Bad debt provision | Book balance | Bad debt provision | ||
Other current assets | Shenzhen Zuanjinsen Jewelry Co., Ltd. | 301,754.90 |
(2) Payable item
In RMB
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
Nil
5. Other
Nil
XIV. Commitment or contingency
1. Important commitments
Important commitments in balance sheet dateNil
2. Contingency
(1) Contingency on balance sheet date
Nil
(2) For the important contingency not necessary to disclosed by the Company, explained reasons
The Company has no important contingency that need to disclosed
3. Other
Nil
XV. Events after balance sheet date
1. Important non-adjustment items
In RMB
Item | Content | Impact on financial status and operation results | Reasons on un-able to estimated the impact number |
2. Profit distribution
In RMB
3. Sales return
Nil
4. Other events after balance sheet date
On April 21, 2020, the company convened the 19
th(provisional) board meeting of the tenth session of the board of directors, andreviewed and approved the “Proposal on the Termination of Agreement for Signing a Conditional Share Subscription Agreement(Second Revision) with the Original Subscription Object” and the “Proposal on the Plan for Non-public Issuance of A Shares ofShenzhen China Bicycle Company (Holdings) Limited”, etc. The company terminated the non-public offering of shares of 2016 andlaunched the plan for non-public issuance of A shares in 2020, and planned to raise funds with total amount not exceeding RMB 450million by non-public offering of shares to 5 specific investors, i.e. Wansheng Industrial Holdings (Shenzhen) Co., Ltd., FuzhouZuankinson Jewelry Co., Ltd., Shenzhen Yilian Jinchuang Technology Co., Ltd., Shenzhen Hualinglong Jewelry Co., Ltd., andShenzhen Jindaogu Jewelry Co., Ltd., all raised funds will be used to supplement working capital after deducting the issuanceexpenses. The non-public offering plan still needs to be approved by the company’s shareholders’ meeting and the China SecuritiesRegulatory Commission.
XVI. Other important events
1. Previous accounting errors collection
(1) Retrospective restatement
In RMB
Correction content | Treatment procedures | Impact items of statement during a comparison | Cumulative impacted number |
(2) Prospective application
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 |
Other explanationNil
6. Segment
(1) Recognition basis and accounting policy for reportable segment
Nil
(2) Financial information for reportable segment
In RMB
Item | Offset between segments | Total |
(3) The Company has no reportable segments, or unable to disclose total assets and total liability forreportable segments, explain reasonsNil
(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 | |||
Account receivable with bad debt provision accrual by single basis | 6,975,081.75 | 19.92% | 2,092,524.53 | 30.00% | 4,882,557.22 | |||||
Including: | ||||||||||
Accounts with single significant amount but with bad debts provision accrued individually | 5,035,603.75 | 14.38% | 1,510,681.13 | 30.00% | 3,524,922.62 | |||||
Accounts with single minor amount but with bad debts provision accrued individually | 1,939,478.00 | 5.54% | 581,843.40 | 30.00% | 1,357,634.60 | |||||
Account receivable with bad debt provision accrual by portfolio | 28,045,114.82 | 80.08% | 84,135.34 | 0.30% | 27,960,979.48 | 12,866,553.82 | 100.00% | 38,599.66 | 0.30% | 12,827,954.16 |
Including: | ||||||||||
Account receivable withdrawal bad debt provision by group of credit risk characteristics (Aging analysis method) | 28,045,114.82 | 80.08% | 84,135.34 | 0.30% | 27,960,979.48 | 12,866,553.82 | 100.00% | 38,599.66 | 0.30% | 12,827,954.16 |
Total | 35,020,196.57 | 100.00% | 2,176,659.87 | 6.22% | 32,843,536.70 | 12,866,553.82 | 100.00% | 38,599.66 | 0.30% | 12,827,954.16 |
Bad debt provision accrual on single basis: Account receivable with significant single amount period-end but withdrawal bad debtprovision on single basis
In RMB
Name | Balance at period-end | |||
Book balance | Bad debt provision | Accrual ratio | Accrual causes | |
Shenzhen Jiahaosong Technology Co., Ltd. | 5,035,603.75 | 1,510,681.13 | 30.00% | Expected to be difficult to recover |
Total | 5,035,603.75 | 1,510,681.13 | -- | -- |
Bad debt provision accrual on single basis: Account receivable with minor single amount period-end but withdrawal bad debtprovision on single basis
In RMB
Name | Balance at period-end | |||
Book balance | Bad debt provision | Accrual ratio | Accrual causes | |
Guangdong Xinlingjia New Energy Co., Ltd. | 1,267,000.00 | 380,100.00 | 30.00% | Expected to be difficult to recover |
Shenzhen Boyineng Technology Co., Ltd. | 672,478.00 | 201,743.40 | 30.00% | Expected to be difficult to recover |
Total | 1,939,478.00 | 581,843.40 | -- | -- |
Bad debt provision accrual on single basis:
In RMB
Name | Balance at period-end | |||
Book balance | Bad debt provision | Accrual ratio | Accrual causes |
Bad debt provision accrual on portfolio: Account receivable with bad debt provision accrual on aging analysis
In RMB
Name | Balance at period-end | ||
Book balance | Bad debt provision | Accrual ratio | |
Within one year (one year included) | 28,045,114.82 | 84,135.34 | 0.30% |
Total | 28,045,114.82 | 84,135.34 | -- |
Explanation on portfolio basis:
NilBad debt provision accrual on portfolio
In RMB
Name | Balance at period-end | ||
Book balance | Bad debt provision | Accrual ratio |
Explanation on portfolio basis:
NilBad debt provision accrual on portfolio
In RMB
Name | Balance at period-end | ||
Book balance | Bad debt provision | Accrual ratio |
Explanation on portfolio basis:
If the provision for bad debts of account receivable is made in accordance with the general model of expected credit losses, please referto the disclosure of other account receivable to disclose related information about bad-debt provisions:
□Applicable √Not applicable
By account age
In RMB
Account age | Balance at period-end |
Within one year (one year included) | 33,080,718.57 |
Within one year | 33,080,718.57 |
1-2 years | 1,939,478.00 |
Total | 35,020,196.57 |
(2) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
In RMB
Category | Balance at period-begin | Current changes | Balance at period-end | |||
Accrual | Collected or reversal | Charge-off | Other | |||
Bad debt provision for accounts receivable | 38,599.66 | 2,138,060.21 | 2,176,659.87 | |||
Total | 38,599.66 | 2,138,060.21 | 2,176,659.87 |
Including important amount of bad debt provision collected or reversal in the period:
In RMB
Enterprise | Amount collected or reversal | Collection way |
Total | 0.00 | -- |
Nil
(3) Account receivables actually charge-off during the reporting period
In RMB
Item | Amount charge-off |
Including major account receivables charge-off:
In RMB
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 | -- | -- | -- |
Explanation on account receivable charge-off:
Nil
(4) Top five account receivables collected by arrears party at ending balance
In RMB
Name | Ending balance of accounts receivable | Proportion of total closing balance of accounts receivable | Ending balance of bad bet provision |
Guangshui Jiaxu Energy Technology Co., Ltd. | 9,544,200.90 | 27.25% | 28,632.60 |
Zhengzhou Guiguan Tech. Trade. Co., Ltd | 7,377,678.50 | 21.07% | 22,133.04 |
Shenzhen Jiahaosong Technology Co., Ltd. | 5,035,603.75 | 14.38% | 1,510,681.13 |
Shenzhen Weiterui New Energy Technology Co., Ltd. | 3,924,471.05 | 11.21% | 11,773.41 |
Jinan Yuxintai Sales Co., Ltd. | 3,728,202.00 | 10.65% | 11,184.61 |
Total | 29,610,156.20 | 84.56% |
(5) Account receivable derecognition due to transfer of financial assets
Nil
(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 |
Dividend receivable | 0.00 | |
Other account receivable | 485,062.44 | 380,925.78 |
Total | 485,062.44 | 380,925.78 |
(1) Interest receivable
1) Category
In RMB
Item | Balance at period-end | Balance at period-begin |
2) Important overdue interest
Borrower | Balance at period-end | Overdue time | Overdue reason | Impairment (Y/N) and judgment basis |
Total | 0.00 | -- | -- | -- |
Other explanation:
Nil
3) Accrual of bad debt provision
□Applicable √Not applicable
(2) Dividend receivable
1) Category
In RMB
Item (or invested company) | Balance at period-end | Balance at period-begin |
Total | 0.00 |
2) Important dividend receivable with over one year aged
In RMB
Item (or invested company) | Balance at period-end | Account age | Causes of failure for collection | Impairment (Y/N) and judgment basis |
Total | 0.00 | -- | -- | -- |
3) Accrual of bad debt provision
□Applicable √Not applicable
Other explanation:
Nil
(3) Other account receivable
1) By nature
In RMB
Account nature | Book balance at period-end | Book balance at period-begin |
Deposit or margin | 484,822.00 | 370,672.00 |
Payment for equipment | 11,400.00 | 11,400.00 |
Reserve | 2,000.00 | |
Total | 498,222.00 | 382,072.00 |
2) Accrual of bad debt provision
In RMB
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 on January 1, 2019 | 1,146.22 | 1,146.22 | ||
January 1, 2019 balance in the current period | —— | —— | —— | —— |
Accrued in this period | 12,013.34 | 12,013.34 | ||
Balance on December 31, 2019 | 13,159.56 | 13,159.56 |
Change of book balance of loss provision with amount has major changes in the period
□Applicable √Not applicable
By account age
In RMB
Account age | Balance at period-end |
Within one year (one year included) | 143,404.00 |
Within one year | 143,404.00 |
1-2 years | 342,918.00 |
2-3 years | 200.00 |
Over 3 years | 11,700.00 |
3-4 years | 11,700.00 |
Total | 498,222.00 |
3) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
In RMB
Category | Balance at period-begin | Current changes | Balance at period-end | |||
Accrual | Collected or reversal | Write off | Other | |||
Bad debt provision for other receivables | 1,146.22 | 12,013.34 | 13,159.56 | |||
Total | 1,146.22 | 12,013.34 | 0.00 | 0.00 | 0.00 | 13,159.56 |
NilImportant amount of bad debt provision switch-back or collection in the period:
In RMB
Enterprise | Amount switch-back or collection | Collection way |
Total | 0.00 | -- |
Nil
4) Other account receivables actually charge-off during the reporting period
In RMB
Item | Amount charge-off |
Including major other account receivables charge-off:
In RMB
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 | -- | -- | -- |
Other Explanation on account receivable charge-offNil
5) Top 5 other account receivable collected by arrears party at ending balance
In RMB
Enterprise | Nature | Balance at period-end | Account age | Proportion in total other account receivables at period-end | Ending balance of bad debt provision |
Shenzhen Anjingheng Industrial Co., Ltd. | Deposit or margin | 275,150.00 | Within 2 years | 55.23% | 825.45 |
Shenzhen Material Group Co., Ltd. | Deposit or margin | 181,918.00 | 1-2 years | 36.51% | 545.75 |
Shenzhen Jintaiyuan Investment Management Co., Ltd. | Deposit or margin | 27,254.00 | Within 1 year | 5.47% | 81.76 |
Shenzhen Hongkang Instrument Technology Co., Ltd. | Equipment | 11,400.00 | 3-4 years | 2.29% | 11,400.00 |
Zhang Xianwu | Reserve | 2,000.00 | Within 1 year | 0.40% | 6.00 |
Total | -- | 497,722.00 | -- | 99.90% | 12,858.96 |
6) Account receivable with government grants involved
In RMB
Enterprise | Government grants | Balance at period-end | Ending account age | Time, amount and basis of amount collection estimated |
Nil
7) Other account receivable derecognition due to financial assets transfer
Nil
8) Assets and liability resulted by other account receivable transfer and continuous involvement
NilOther explanation:
Nil
3. Long-term equity investment
In RMB
Item | Balance at period-end | Balance at period-begin | ||||
Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
Investment for subsidiary | 5,625,000.00 | 1,389,620.27 | 4,235,379.73 | 1,400,000.00 | 1,389,620.27 | 10,379.73 |
Total | 5,625,000.00 | 1,389,620.27 | 4,235,379.73 | 1,400,000.00 | 1,389,620.27 | 10,379.73 |
(1) Investment for subsidiary
In RMB
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 | ||||
Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd. | 4,225,000.00 | 4,225,000.00 | 0.00 | ||||
Total | 10,379.73 | 4,225,000.00 | 0.00 | 0.00 | 0.00 | 4,235,379.73 | 1,389,620.27 |
(2) Investment for associates and joint venture
In RMB
Funded enterprise | 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 | Investment gains recognized under equity | Other comprehensive income adjustment | Other equity change | Cash dividend or profit announced to issued | Accrual of impairment provision | Other | ||||
I. Joint venture | |||||||||||
Subtotal | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
II. Associated enterprise |
Subtotal | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Total | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
(3) Other explanation
Nil
4. Operation revenue and operation cost
In RMB
Item | Current Period | Last Period | ||
Revenue | Cost | Revenue | Cost | |
Main business | 54,012,420.29 | 52,204,470.16 | 31,732,088.16 | 29,103,342.44 |
Other business | 3,753,308.11 | 753,000.00 | 2,127,375.25 | 753,000.00 |
Total | 57,765,728.40 | 52,957,470.16 | 33,859,463.41 | 29,856,342.44 |
Whether implemented the new revenue standards
□Yes √No
Other explanation:
Nil
5. Investment income
In RMB
Item | Current Period | Last Period |
6. Other
Nil
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 | 194,691.02 | |
Less: Impact on income tax | 48,672.76 | |
Impact on minority shareholders’ equity | -37,575.93 |
Total | 183,594.19 | -- |
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for CompaniesOffering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according tothe lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering TheirSecurities to the Public --- Extraordinary Profit/loss, explain reasons
□Applicable √Not applicable
2. ROE and EPS
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 | -53.69% | -0.0130 | -0.0130 |
Net profits belong to common stock stockholders of the Company after deducting nonrecurring gains and losses | -55.06% | -0.013 | -0.013 |
3. Difference of the accounting data under accounting rules in and out of China
(1) Difference of the net profit and net assets disclosed in financial report, under both IAS (InternationalAccounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□Applicable √Not applicable
(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
(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 organNil
4. Other
Nil
Section XIII. 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. Original audit report with seal of the accounting firm and signature and seal of CPAs.
3. Originals documents of the Company and manuscripts of public notices that disclosed in the newspaperdesignated by CSRC in the report period.
4. English version of the Annual Report 2019
Board of Directors ofShenzhen China Bicycle Company (Holdings) Limited
26 April 2020