Shenzhen China Bicycle Company (Holdings) Limited
Semi-Annual Report 2020
Financial ReportI. Audit reports
Whether the semi-annual report was audited or not
□ Yes √ No
The financial report of this semi-annual report was unaudited.
II. Financial statements
Units in Notes of Financial Statements is RMB
1. Consolidated Balance Sheet
Prepared by Shenzhen China Bicycle Company (Holdings) Limited
2020-06-30
In RMB
| Item | 2020-6-30 | 2019-12-31 |
| Current assets: | ||
| Monetary funds | 12,214,263.85 | 6,074,367.91 |
| Settlement provisions | ||
| Capital lent | ||
| Tradable financial assets | ||
| Derivative financial assets | ||
| Note receivable | 150,000.00 | 580,000.00 |
| Account receivable | 46,088,457.94 | 38,616,523.93 |
| Receivable financing | ||
| Accounts paid in advance | 2,489,164.74 | 938,425.99 |
| Insurance receivable | ||
| Reinsurance receivables | ||
| Contract reserve of reinsurance receivable | ||
| Other account receivable | 458,177.20 | 740,354.71 |
| Including: Interest receivable | ||
| Dividend receivable | ||
| Buying back the sale of financial assets | ||
| Inventories | 4,125,856.91 | 6,078,330.30 |
| Contractual assets | ||
| Assets held for sale | ||
| Non-current asset due within one year | ||
| Other current assets | 3,247,541.04 | 3,318,514.25 |
| Total current assets | 68,773,461.68 | 56,346,517.09 |
| Non-current assets: | ||
| Loans and payments on behalf | ||
| Debt investment | ||
| Other debt investment | ||
| Long-term account receivable | ||
| Long-term equity investment | ||
| Investment in other equity instrument | ||
| Other non-current financial assets | ||
| Investment real estate | ||
| Fixed assets | 3,963,702.62 | 4,191,503.33 |
| Construction in progress | ||
| Productive biological asset | ||
| Oil and gas asset | ||
| Right-of-use assets | ||
| Intangible assets | 376,500.00 | 753,000.00 |
| Expense on Research and Development | ||
| Goodwill |
| Long-term expenses to be apportioned | ||
| Deferred income tax asset | 980,142.35 | 1,042,582.16 |
| Other non-current asset | 400,000.00 | 400,000.00 |
| Total non-current asset | 5,720,344.97 | 6,387,085.49 |
| Total assets | 74,493,806.65 | 62,733,602.58 |
| Current liabilities: | ||
| Short-term loans | ||
| Loan from central bank | ||
| Capital borrowed | ||
| Trading financial liability | ||
| Derivative financial liability | ||
| Note payable | ||
| Account payable | 8,719,444.82 | 10,191,385.23 |
| Accounts received in advance | 1,739,953.80 | |
| Contractual liability | 8,025,100.53 | |
| Selling financial asset of repurchase | ||
| Absorbing deposit and interbank deposit | ||
| Security trading of agency | ||
| Security sales of agency | ||
| Wage payable | 582,921.26 | 599,962.73 |
| Taxes payable | 823,926.77 | 585,062.75 |
| Other account payable | 36,755,216.28 | 38,175,654.98 |
| 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 | 54,906,609.66 | 51,292,019.49 |
| 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 | 0.00 | 0.00 |
| Total liabilities | 54,906,609.66 | 51,292,019.49 |
| 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 | -1,201,938,432.06 | -1,204,736,075.56 |
| Total owner’ s equity attributable to parent company | 9,917,039.80 | 7,119,396.30 |
| Minority interests | 9,670,157.19 | 4,322,186.79 |
| Total owner’ s equity | 19,587,196.99 | 11,441,583.09 |
| Total liabilities and owner’ s equity | 74,493,806.65 | 62,733,602.58 |
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 | 2020-6-30 | 2019-12-31 |
| Current assets: | ||
| Monetary funds | 6,838,710.05 | 1,959,804.92 |
| Trading financial assets | ||
| Derivative financial assets | ||
| Note receivable | 150,000.00 | 580,000.00 |
| Account receivable | 29,017,233.11 | 32,843,536.70 |
| Receivable financing | ||
| Accounts paid in advance | 1,497,198.05 | 76,937.00 |
| Other account receivable | 124,488.41 | 485,062.44 |
| Including: Interest receivable | ||
| Dividend receivable | ||
| Inventories | 223,422.27 | 1,333,374.72 |
| Contractual assets | ||
| Assets held for sale | ||
| Non-current assets maturing within one year | ||
| Other current assets | 3,167,103.71 | 2,830,705.01 |
| Total current assets | 41,018,155.60 | 40,109,420.79 |
| Non-current assets: | ||
| Debt investment | ||
| Other debt investment | ||
| Long-term receivables | ||
| Long-term equity investments | 13,010,379.73 | 4,235,379.73 |
| Investment in other equity instrument | ||
| Other non-current financial assets |
| Investment real estate | ||
| Fixed assets | 3,650,474.41 | 3,813,708.80 |
| Construction in progress | ||
| Productive biological assets | ||
| Oil and natural gas assets | ||
| Right-of-use assets | ||
| Intangible assets | 376,500.00 | 753,000.00 |
| 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 | 17,437,354.14 | 9,202,088.53 |
| Total assets | 58,455,509.74 | 49,311,509.32 |
| Current liabilities | ||
| Short-term borrowings | ||
| Trading financial liability | ||
| Derivative financial liability | ||
| Notes payable | ||
| Account payable | 5,835,192.76 | 9,002,524.60 |
| Accounts received in advance | 572,687.18 | |
| Contractual liability | 7,625,884.18 | |
| Wage payable | 486,086.77 | 507,738.35 |
| Taxes payable | 27,656.38 | 27,797.28 |
| Other accounts payable | 40,494,648.19 | 36,803,498.12 |
| Including: Interest payable | ||
| Dividend payable | ||
| Liability held for sale | ||
| Non-current liabilities due within one year | ||
| Other current liabilities | ||
| Total current liabilities | 54,469,468.28 | 46,914,245.53 |
| 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 | 0.00 | 0.00 |
| Total liabilities | 54,469,468.28 | 46,914,245.53 |
| 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 | -1,207,869,430.40 | -1,209,458,208.07 |
| Total owner’s equity | 3,986,041.46 | 2,397,263.79 |
| Total liabilities and owner’s equity | 58,455,509.74 | 49,311,509.32 |
3. Consolidated Profit Statement
In RMB
| Item | 2020 semi-annual | 2019 semi-annual |
| I. Total operating income | 42,656,355.21 | 38,274,433.02 |
| Including: Operating income | 42,656,355.21 | 38,274,433.02 |
| Interest income | ||
| Insurance gained | ||
| Commission charge and commission income | ||
| II. Total operating cost | 40,013,244.72 | 39,540,757.20 |
| Including: Operating cost | 36,100,765.65 | 35,329,514.97 |
| 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 | 19,899.04 | 36,587.77 |
| Sales expense | 1,478,378.78 | 1,875,723.61 |
| Administrative expense | 1,679,719.44 | 2,359,383.84 |
| R&D expense | 753,742.20 | 0.00 |
| Financial expense | -19,260.39 | -60,452.99 |
| Including: Interest expenses | ||
| Interest income | -31,929.72 | -71,134.40 |
| Add: other income | 10,105.77 | 0.00 |
| 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 “-”) | 170,387.85 | -17,479.82 |
| Losses of devaluation of asset (Loss is listed with “-”) | 40,616.29 | |
| Income from assets disposal (Loss is listed with “-”) | 24,936.44 | 0.00 |
| III. Operating profit (Loss is listed with “-”) | 2,848,540.55 | -1,243,187.71 |
| Add: Non-operating income | 744,788.91 | 148,627.00 |
| Less: Non-operating expense | 2,676.80 | 50.00 |
| IV. Total profit (Loss is listed with “-”) | 3,590,652.66 | -1,094,610.71 |
| Less: Income tax expense | 170,038.76 | -4,152.36 |
| V. Net profit (Net loss is listed with “-”) | 3,420,613.90 | -1,090,458.35 |
| (i) Classify by business continuity | ||
| 1.continuous operating net profit (net loss listed with ‘-”) | 3,420,613.90 | -1,090,458.35 |
| 2.termination of net profit (net loss listed with ‘-”) | ||
| (ii) Classify by ownership | ||
| 1.Net profit attributable to owner’s of parent company | 2,797,643.50 | -798,946.17 |
| 2.Minority shareholders’ gains and losses | 622,970.40 | -291,512.18 |
| 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.Amount of financial assets re-classify to other comprehensive income | ||
| 4.Credit impairment provision for other debt investment | ||
| 5.Cash flow hedging reserve | ||
| 6.Translation differences arising on translation of foreign currency financial statements | ||
| 7.Other | ||
| Net after-tax of other comprehensive income attributable to minority shareholders | ||
| VII. Total comprehensive income | 3,420,613.90 | -1,090,458.35 |
| Total comprehensive income attributable to owners of parent Company | 2,797,643.50 | -798,946.17 |
| Total comprehensive income attributable to minority shareholders | 622,970.40 | -291,512.18 |
| VIII. Earnings per share: | ||
| (i) Basic earnings per share | 0.0051 | -0.0014 |
| (ii) Diluted earnings per share | 0.0051 | -0.0014 |
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 Longlong
Person in charge of Accounting Institution: Zhong Xiaojin
4. Profit Statement of Parent Company
In RMB
| Item | 2020 semi-annual | 2019 semi-annual |
| I. Operating income | 15,950,824.42 | 25,404,378.84 |
| Less: Operating cost | 12,634,196.40 | 23,670,022.62 |
| Taxes and surcharge | 7,511.96 | 14,194.90 |
| Sales expenses | 256,975.98 | 240,105.59 |
| Administration expenses | 1,136,110.22 | 1,721,493.88 |
| R&D expenses | 753,742.20 | 0.00 |
| Financial expenses | -11,110.06 | -13,583.08 |
| Including: interest expenses | ||
| Interest income | -16,963.68 | -18,497.84 |
| Add: other income | 8,595.12 | 0.00 |
| 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 “-”) | 204,620.45 | -39,523.02 |
| Losses of devaluation of asset (Loss is listed with “-”) | ||
| Income on disposal of assets (Loss is listed with “-”) | 24,936.44 | 0.00 |
| II. Operating profit (Loss is listed with “-”) | 1,411,549.73 | -267,378.09 |
| Add: Non-operating income | 177,227.94 | 148,627.00 |
| Less: Non-operating expense | ||
| III. Total Profit (Loss is listed with “-”) | 1,588,777.67 | -118,751.09 |
| Less: Income tax | ||
| IV. Net profit (Net loss is listed with “-”) | 1,588,777.67 | -118,751.09 |
| (i)continuous operating net profit (net loss listed with ‘-”) | 1,588,777.67 | -118,751.09 |
| (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.Amount of financial assets re-classify to other comprehensive income | ||
| 4.Credit impairment provision for other debt investment | ||
| 5.Cash flow hedging |
| reserve | ||
| 6.Translation differences arising on translation of foreign currency financial statements | ||
| 7.Other | ||
| VI. Total comprehensive income | 1,588,777.67 | -118,751.09 |
| VII. Earnings per share: | ||
| (i) Basic earnings per share | ||
| (ii) Diluted earnings per share |
5. Consolidated Cash Flow Statement
In RMB
| Item | 2020 semi-annual | 2019 semi-annual |
| I. Cash flows arising from operating activities: | ||
| Cash received from selling commodities and providing labor services | 25,999,057.43 | 8,643,245.76 |
| 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 | 10,712.11 | 57,448.96 |
| Other cash received concerning operating activities | 15,006,655.40 | 3,906,596.03 |
| Subtotal of cash inflow arising from operating activities | 41,016,424.94 | 12,607,290.75 |
| Cash paid for purchasing commodities and receiving labor service | 25,572,959.40 | 7,104,453.81 |
| 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 | 2,860,928.35 | 3,076,592.48 |
| Taxes paid | 263,658.94 | 5,517,601.44 |
| Other cash paid concerning operating activities | 10,968,482.31 | 5,809,899.76 |
| Subtotal of cash outflow arising from operating activities | 39,666,029.00 | 21,508,547.49 |
| Net cash flows arising from operating activities | 1,350,395.94 | -8,901,256.74 |
| 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 | 64,500.00 | 0.00 |
| Net cash received from disposal of subsidiaries and other units |
| Other cash received concerning investing activities | ||
| Subtotal of cash inflow from investing activities | 64,500.00 | 0.00 |
| Cash paid for purchasing fixed, intangible and other long-term assets | 0.00 | 16,814.16 |
| Cash paid for investment | ||
| Net increase of mortgaged loans | ||
| Net cash received from subsidiaries and other units obtained | ||
| Other cash paid concerning investing activities | ||
| Subtotal of cash outflow from investing activities | 0.00 | 16,814.16 |
| Net cash flows arising from investing activities | 64,500.00 | -16,814.16 |
| III. Cash flows arising from financing activities | ||
| Cash received from absorbing investment | 4,725,000.00 | |
| Including: Cash received from absorbing minority shareholders’ investment by subsidiaries | 4,725,000.00 | |
| Cash received from loans | ||
| Other cash received concerning financing activities | 2,016,600.82 | |
| Subtotal of cash inflow from financing activities | 4,725,000.00 | 2,016,600.82 |
| Cash paid for settling debts | ||
| Cash paid for dividend and profit distributing or interest paying | ||
| Including: Dividend and profit of minority shareholder paid by subsidiaries | ||
| Other cash paid concerning financing activities | 0.00 | 2,000,000.00 |
| Subtotal of cash outflow from financing activities | 0.00 | 2,000,000.00 |
| Net cash flows arising from financing activities | 4,725,000.00 | 16,600.82 |
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | ||
| V. Net increase of cash and cash equivalents | 6,139,895.94 | -8,901,470.08 |
| Add: Balance of cash and cash equivalents at the period -begin | 6,074,367.91 | 16,488,886.26 |
| VI. Balance of cash and cash equivalents at the period -end | 12,214,263.85 | 7,587,416.18 |
6. Cash Flow Statement of Parent Company
In RMB
| Item | 2020 semi-annual | 2019 semi-annual |
| I. Cash flows arising from operating activities: | ||
| Cash received from selling commodities and providing labor services | 7,581,014.00 | 2,949,631.00 |
| Write-back of tax received | 9,110.82 | 57,448.96 |
| Other cash received concerning operating activities | 19,278,497.89 | 4,242,368.68 |
| Subtotal of cash inflow arising from operating activities | 26,868,622.71 | 7,249,448.64 |
| Cash paid for purchasing commodities and receiving labor service | 2,063,572.76 | 721,217.50 |
| Cash paid to/for staff and workers | 2,253,629.12 | 1,498,002.56 |
| Taxes paid | 229,400.44 | 5,319,908.09 |
| Other cash paid concerning operating activities | 8,732,615.26 | 4,418,229.99 |
| Subtotal of cash outflow arising from operating activities | 13,279,217.58 | 11,957,358.14 |
| Net cash flows arising from operating activities | 13,589,405.13 | -4,707,909.50 |
| 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 | 64,500.00 | 0.00 |
| Net cash received from disposal of subsidiaries and other units | ||
| Other cash received concerning investing activities | ||
| Subtotal of cash inflow from investing activities | 64,500.00 | 0.00 |
| Cash paid for purchasing fixed, intangible and other long-term assets | 0.00 | 16,814.16 |
| Cash paid for investment | 8,775,000.00 | |
| Net cash received from subsidiaries and other units obtained | ||
| Other cash paid concerning investing activities | ||
| Subtotal of cash outflow from investing activities | 8,775,000.00 | 16,814.16 |
| Net cash flows arising from investing activities | -8,710,500.00 | -16,814.16 |
| 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 | 4,878,905.13 | -4,724,723.66 |
| Add: Balance of cash and cash equivalents at the period -begin | 1,959,804.92 | 8,889,572.73 |
| VI. Balance of cash and cash equivalents at the period -end | 6,838,710.05 | 4,164,849.07 |
7. Statement of Changes in Owners’ Equity (Consolidated)
This Period
In RMB
| Item | 2020 semi-annual | ||||||||||||||
| 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 | -1,204,736,075.56 | 7,119,396.30 | 4,322,186.79 | 11,441,583.09 | ||||||||
| 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 | -1,204,736,075.56 | 7,119,396.30 | 4,322,186.79 | 11,441,583.09 | ||||||||
| III. Increase/ Decrease in this year (Decrease is listed with “-”) | 2,797,643.50 | 2,797,643.50 | 5,347,970.40 | 8,145,613.90 | |||||||||||
| (i) Total comprehensive income | 2,797,643.50 | 2,797,643.50 | 622,970.40 | 3,420,613.90 | |||||||||||
| (ii) Owners’ devoted and decreased capital | 4,725,000.00 | 4,725,000.00 | |||||||||||||
| 1.Common shares invested by shareholders | 4,725,000.00 | 4,725,000.00 | |||||||||||||
| 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 | -1,201,938,432.06 | 9,917,039.80 | 9,670,157.19 | 19,587,196.99 |
Last Period
In RMB
| Item | 2019 semi-annual | ||||||||||||||
| Owners’ equity attributable to the parent Company | 少数股东权益 | 所有者权益合计 | |||||||||||||
| Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Provision of general risk | Retained profit | Other | Subtotal | |||||
| Preferred stock | Perpetual capital securities | Other | |||||||||||||
| I. Balance at the end of the last year | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,197,549,169.92 | 14,306,301.94 | 2,674,162.80 | 16,980,464.74 | ||||||||
| Add: Changes of accounting policy | |||||||||||||||
| Error correction of the last period | |||||||||||||||
| Enterprise combine under the same control | |||||||||||||||
| Other | |||||||||||||||
| II. Balance at the beginning of this year | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,197,549,169.92 | 14,306,301.94 | 2,674,162.80 | 16,980,464.74 | ||||||||
| III. Increase/ Decrease in this year (Decrease is listed with “-”) | -798,946.17 | -798,946.17 | -291,512.18 | -1,090,458.35 | |||||||||||
| (i) Total comprehensive income | -798,946.17 | -798,946.17 | -291,512.18 | -1,090,458.35 | |||||||||||
| (ii) Owners’ devoted and decreased capital | |||||||||||||||
| 1.Common shares invested by shareholders | |||||||||||||||
| 2. Capital invested by holders of other equity instruments | |||||||||||||||
| 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 | -1,198,348,116.09 | 13,507,355.77 | 2,382,650.62 | 15,890,006.39 |
8. Statement of Changes in Owners’ Equity (Parent Company)
This Period
In RMB
| Item | 2020 semi-annual | |||||||||||
| 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 | -1,209,458,208.07 | 2,397,263.79 | |||||||
| 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 | -1,209,458,208.07 | 2,397,263.79 | |||||||
| III. Increase/ Decrease in this year (Decrease is listed with “-”) | 1,588,777.67 | 1,588,777.67 | ||||||||||
| (i) Total comprehensive income | 1,588,777.67 | 1,588,777.67 | ||||||||||
| (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 | -1,207,869,430.40 | 3,986,041.46 |
Last period
In RMB
| Item | 2019 semi-annual | |||||||||||
| Share capital | Other equity instrument | Capital public reserve | Less: Inventory shares | Other comprehensive | Reasonable reserve | Surplus reserve | Retained profit | Other | Total owners’ equity | |||
| Preferr | Perpet | Other | ||||||||||
| ed stock | ual capital securities | income | ||||||||||
| 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 “-”) | -118,751.09 | -118,751.09 | ||||||||||
| (i) Total comprehensive income | -118,751.09 | -118,751.09 | ||||||||||
| (ii) Owners’ devoted and decreased capital | ||||||||||||
| 1.Common shares invested by shareholders | ||||||||||||
| 2. Capital invested by holders of other equity instruments | ||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | ||||||||||||
| 4. Other | ||||||||||||
| (III) Profit distribution | ||||||||||||
| 1. Withdrawal of surplus |
| reserves | ||||||||||||
| 2. Distribution for owners (or shareholders) | ||||||||||||
| 3. Other | ||||||||||||
| (IV) Carrying forward internal owners’ equity | ||||||||||||
| 1. Capital reserves conversed to capital (share capital) | ||||||||||||
| 2. Surplus reserves conversed to capital (share capital) | ||||||||||||
| 3. Remedying loss with surplus reserve | ||||||||||||
| 4．Carry-over retained earnings from the defined benefit plans | ||||||||||||
| 5．Carry-over retained earnings from other comprehensive income | ||||||||||||
| 6. Other | ||||||||||||
| (V) Reasonable reserve | ||||||||||||
| 1. Withdrawal in the report period | ||||||||||||
| 2. Usage in the report period | ||||||||||||
| (VI)Others | ||||||||||||
| IV. Balance at the end of the report period | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,203,897,254.49 | 7,958,217.37 |
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 ChinaBicycle Company (Holdings) Limited (hereinafter referred to as the Company) was reincorporated as the company limited by sharesin November 1991. On 28 December 1991, upon the Approval Document SRYFZ(1991) No. 119 issued by Shenzhen SpecialEconomic Zone Branch of the People’s Bank of China, the Company got listed on Shenzhen Stock Exchange. Registered of theCompany 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 business activities: Research & development of the bicycles, electric bicycles, electric motorcycles, motorcycles, electrictricycles, electric four-wheelers, children's bicycles, exercise bikes, sports equipment, mechanical products, toys, electric toys,electronic products, new energy equipment and storage equipment (lithium batteries, batteries, etc.), household appliances and spareparts, and electronic components; wholesale, retail, import and export and related supporting business of above-mentioned products(excluding commodities subject to state trade management, handling the application according to the relevant national regulations forcommodities involving quotas, license management and other special provisions and management,); fine chemical products (excludingdangerous goods), wholesale and retail of carbon fiber composite materials; technology development of computer software, transfer ofself-developed technological achievements, and providing relevant technical information consultation; own property leasing; propertymanagement. (The above projects do not involve special administrative measures for the implementation access of national regulations,and those involving restricted projects and pre-existing administrative licenses must obtain the pre-existing administrative licensingdocuments before operation.) Purchase and sale of gold products, platinum jewelry, palladium jewelry, K-gold jewelry, silver jewelry,inlaid jewelry, jewelry, jade ware, gem-and-jade products, clocks and watches, precious metal materials, diamonds, jadeite, crafts(except ivory and its products), calligraphy and painting, collection (except for antiques, cultural relics, and items prohibited bynational laws and administrative regulations).
Main products and services provided so far: EMMELLE bicycles, electrical bicycles, lithium battery material and gold jewelry.
3. Release of the financial report
The Financial Report released on 27 August 2020 after approved by 24
th
session of 10
thBOD of the Company.Two subsidiaries included in consolidate scope in the period, found more in 1. carry in Note IX. Equity in other entity.
IV. Compilation Basis of Financial Statement
1. Compilation Basis
The financial statement is prepared based on continuing operation assumptions, and according to actual occurrence, in line withrelevant 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 Energy Investment DevelopmentCo., Ltd. applied to Shenzhen Municipal Intermediate People's Court for reforming the Company as the Company couldn’t pay offthe matured debts and was seriously insolvent. On 12 October 2012, Shenzhen Municipal Intermediate People's Court ruled to acceptthe application proposed by Guosheng Energy according to (2012) Shenzhen Intermediate Court Po Zi No. 30 civil ruling. On the lastten-day of October 2012, Shenzhen Municipal Intermediate People's Court ruled to reform the Company since 25 October 2012according to (2012) Shenzhen Intermediate Court Po Zi No. 30-1 civil ruling, appointed King & Wood (Shenzhen) Mallesons andShenzhen ZhengYuan Liquidation Affairs Co., Ltd. as the custodians of the Company. On the same day, Shenzhen MunicipalIntermediate People's Court made (2012) Shenzhen Intermediate Court Po Zi No. 30-1 written decision, and approved the Companyto manage property and business affairs by itself under the supervision of custodians according to the law. On 5 November 2013, theShenzhen Intermediate People’s Court (2012) Shen Zhong Fa Po Zi No. 30-6 Civil Ruling Paper judged that approved thereorganization plan of the Company. On 27 December 2013, the Civil Ruling Paper Shenzhen Intermediate People’s Court (2012)Shen Zhong Fa Po Zi No. 30-10 ruled that the reorganization plan of CBC was completed and bankruptcy procedures of theCompany closed down.The Company has solved the debt problem by reforming, realized the net assets with positive value, the main business of bicycle isable to be maintained and realizes the stable development. The Company has set up the conditions for introducing the recombinationparty in the reforming plan, and expects to restore the abilities of sustainable 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 assets in the same year for implementing the major reorganization should be no less than 200 million Yuan. The Companydoesn’t have the recombination party at the moment.V. Main accounting policy and Accounting EstimateTips for specific accounting policy and estimate:
N/A
1. Declaration on compliance with accounting standards
The financial statement prepared by the Company, based on follow compilation basis, is comply with the requirement of newaccounting standards for business enterprise issued by Ministry of Finance and its application guide, commentate as well as otherregulations (collectively referred to as Accounting Standards for Business Enterprise), which is reflect a real and truth financial statusof the Company, as well as operation results and cash flow situations.
Furthermore, the statement has reference to the listing and disclosure requirement from “Rules Governing the Disclosure ofInformation for Enterprise with Stock Listed No.15-general regulation of financial report” (2014 Revised) and “Notice onImplementation 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 single transaction or multipletransactions, assets and liabilities obtained from that business combination shall be measured at their book value at the combinationdate as recorded by the party being absorbed in the consolidated financial statement of ultimate controlling party. Capital reserveshall be adjusted as per the difference between the book value of obtained net assets and the book value of paid consolidatedconsideration (or the nominal value of the issued shares) of the Company; retained earnings shall be adjusted if the capital reserve isnot sufficient for offset.
(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 identifiable assets gained fromthe acquiree on the acquisition date as goodwill; where the combined cost is less than the fair value of net identifiable assets gainedfrom the acquiree during business combination, the fair value and combined cost of various identifiable assets, liabilities andcontingent liabilities from the acquiree must be rechecked. Where the combined cost is, after the recheck, still less than the fair valueof net identifiable assets gained from the acquiree during business combination, the difference shall be charged to current profits andlosses.As for business combination not under common control and realized through multiple transactions and by steps, the Company shallmake accounting treatment as follows:
1) Adjust the initial investment cost of long-term equity investments. As for stock equities held before the acquisition date accountedaccording to the equity method, re-measurement is carried out according to the fair value of the equity on the acquisition date. Thebalance between the fair value and the book value is included in the current investment income. If the acquiree’s stock equities heldbefore the acquisition date involves changes of other comprehensive incomes and other owner's equities under accounting with theequity method, the balance between the fair value and the book value is included in the current investment income on the acquisitiondate, excluding other comprehensive incomes incurred by changes due to re-measurement of net liabilities or net assets of the definedbenefit plan.
2) Confirm the goodwill (or include the amount in the profits and losses). The initial investment cost of long-term equity investmentsadjusted in step 1 is compared with the fair value of net identifiable assets of the subsidiary shared on the acquisition date. If theformer is greater than the latter, the balance is confirmed as goodwill; if the former is less than the latter, the balance is included inthe current profits and losses.Loss of control of a subsidiary in multiple transactions in which it disposes equity interests of its subsidiary in stages
(1)In determining whether to account for the multiple transactions as a single transaction
A parent shall consider all the terms and conditions of the transactions and their economic effects. One or more of the following mayindicate 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 when considered togetherwith other arrangements.
(2)Accounting treatment for each of the multiple transactions forming part of a bundled transactions which eventually results in lossof 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 control the subsidiary,these multiple transactions should be accounted for as a single transaction. In the consolidated financial statements, the differencebetween the consideration received and the corresponding percentage of the subsidiary’s net assets in each transaction prior to theloss of control shall be recognized in other comprehensive income and transferred to the profit or loss when the parent eventuallyloses control of the subsidiary.The remaining equity investment shall be re-measured at its fair value in the consolidated financial statements at the date whencontrol is lost. The difference between the total amount of consideration received from the transaction that resulted in the loss ofcontrol and the fair value of the remaining equity investment and the share of net assets of the former subsidiary calculatedcontinuously from the acquisition date or combination date based on the previous shareholding proportion, shall be recognized asinvestment income for the current period when control is lost. The amount previously recognized in other comprehensive income inrelation to the former subsidiary’s equity investment should be transferred to investment income for the current period when controlis lost
(3)Accounting treatment for each of the multiple transactions NOT forming part of a bundled transactions which eventually results inloss of control the subsidiary during disposal of its subsidiary in stagesIf the Company doesn't lose control of investee, the difference between the amount of the consideration received and thecorresponding portion of net assets of the subsidiary shall be adjusted to the capital reserve (capital /equity premium) in theconsolidated financial statements.If the Company loses control of investee, the remaining equity investment shall be re-measured at its fair value in the consolidatedfinancial statements at the 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 share of net assets of theformer subsidiary calculated continuously from the acquisition date or combination date based on the previous shareholdingpercentage, shall be recognized as investment income for the current period when control is lost. The amount previously recognizedin other comprehensive income in relation to the former subsidiary’s equity investment should be transferred to investment incomefor the current 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 for Business Enterprise No.33-Consolidated Financial Statements and based on financial statements of parent company and its subsidiaries and other relatedinformation.
When consolidating the financial statements, the following items are eliminated: internal equity investment and owners’ equity ofsubsidiaries, proceeds on internal investments and profit distribution of subsidiaries, internal transactions, internal debts and claim.The accounting policies adopted by subsidiaries are the same as parent company.
7. Classification of joint venture arrangement and accounting treatment for joint control
(1) Affirmation and classification of joint venture arrangement
Joint arrangement refers to an arrangement controlled by two or more than two participants. Joint venture arrangement has thefollowing characteristics: 1) Each participant is bound by the arrangement; 2) Two or more participants carry out joint control onimplementation of the arrangement. Any participant cannot control the arrangement independently. Any participant for joint controlcan stop other participants or participant combinations to independently control the arrangement.Joint control refers to the sharing of control over certain arrangement under related agreements, and related activities of thearrangement must be determined only when obtaining the unanimous consent of the parties sharing control.Joint venture arrangement is classified in to joint operation and joint venture. Joint operation refers to an arrangement that a jointparty enjoys assets related to the arrangement and bears liabilities related to the arrangement. Joint venture refers to an arrangementthat a joint party only has the power governing net assets of the arrangement.
(2) Accounting treatment of joint venture arrangement
Joint venture participants should confirm the following items related to interest shares in joint venture and carry out accountingsettlement according to relevant provisions of the Accounting Standards for Business Enterprises: 1) confirm the assets heldseparately and confirm the assets held jointly based on shares; 2) confirm the liabilities borne separately and confirm the liabilitiesborne jointly based on shares; 3) confirm the income incurred after selling its shares in joint venture output; 4) confirm the incomeafter selling the joint venture outputs based on shares; 5) confirm the expenses incurred separately and confirm the expenses incurredin joint venture based on shares.Joint venture participants should carry out accounting settlement for investments of the joint venture according to provisions ofAccounting 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 equivalents refer to the short-term(generally due within three months since the date of purchase) highly liquid investments that are readily convertible into knownamounts of cash and that are subject to an insignificant risk of change in value.
9. Foreign currency transaction and financial statement conversion
(1)Conversion for foreign currency transaction
When initially recognized, the foreign currency for the transaction shall be converted into CNY amount according to the spotexchange rate on the date of transaction. For the foreign currency monetary items, conversion must be based on the spot exchangerate on the balance sheet date and the exchange difference incurred from different exchange rates, except for the exchange differenceof principal and interest incurred due to foreign currency loan related to acquisition or construction of assets that qualify forcapitalization, shall be charged to current profits and losses; foreign currency non-monetary items measured with historical cost arestill converted as per the spot exchange rate on the transaction date and keep the RMB amount unchanged; foreign currencynon-monetary items measured with fair value shall be converted as per the spot exchange rate on the date of determining the fairvalue and 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 sheet date; the owner’sequity items, except for the items of “undistributed profit”, shall be converted at the spot exchange rate on the transaction date; theincome and expenditure items in the profit statement shall be converted at the spot exchange rate on the transaction date. Thetranslation difference of foreign financial statements conducted 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 contractual provisions of theinstrument.When buying and selling financial assets in a conventional manner, recognize and derecognize them according to the accounting ofthe trading day. Buying and selling financial assets in a conventional manner refers to the collection or delivery of financial assets inaccordance with the contract terms and within the period prescribed by regulations or prevailing practices. Trading day refers to thedate when the Company promises to buy or sell financial assets.When meeting the following conditions, derecognize a financial asset (or part of a financial asset, or part of a group of similarfinancial 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 amount of cash flowsreceived to a third party in a timely manner under the “handover agreement”; and (a) virtually transferred almost all risks andrewards of the ownership of financial assets, or (b) although virtually neither transferred nor retained almost all risks and rewards ofthe ownership of financial assets, abandoned the control of the financial assets.
(2) Classification and measurement of financial assets
The Company’s financial assets are classified as financial assets measured at amortized cost, financial assets measured at fair valueand whose changes are included in other comprehensive income, and financial assets measured at fair value and whose changes areincluded in the current profit and loss according to the Company’s business model for managing financial assets and the contractualcash flow characteristics of financial assets at initial recognition. The subsequent measurement of financial assets depends on theirclassification.The Company’s classification of financial assets is based on the Company’s business model for managing financial assets and thecash 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 at amortized cost: theCompany’s business model for managing this financial asset is to collect contractual cash flows; the contract terms of the financialasset stipulate that the cash flow generated on a specific date is only the payment of principal and interest based on the outstandingprincipal amount. For such financial assets, the actual interest rate method is used for subsequent measurement based on amortizedcost, and the gains or losses arising from 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 comprehensive incomeFinancial assets that meet the following conditions at the same time are classified as financial assets measured at fair value andwhose changes are included in other comprehensive income: the Company’s business model for managing this financial asset is toboth collect contractual cash flows and sell the financial assets; the contract terms of the financial asset stipulate that the cash flowgenerated on a specific date is only for the payment of principal and interest based on the outstanding principal amount. For such
financial assets, fair value is used for subsequent measurement. The discount or premium is amortized by using the actual interestmethod and is recognized 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 such financial assets arerecognized as other comprehensive income, until the financial asset is derecognized, its cumulative gains or losses are transferred tothe current profit and loss. Interest income related to such financial assets is included in the current profit and loss.
3) Equity instrument investments measured at fair value and whose changes are included in other comprehensive incomeThe Company irrevocably chooses to designate some non-trading equity instrument investments as financial assets measured at fairvalue and whose changes are included in other comprehensive income. Only relevant dividend income is included in the currentprofit and loss, and changes in fair value are recognized as other comprehensive income, until the financial asset is derecognized, itsaccumulated gains or losses are transferred to retained 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 fair value and whosechanges are included in other comprehensive income are classified as financial assets measured at fair value and whose changes areincluded in the current profit and loss. During initial recognition, in order to eliminate or significantly reduce accounting mismatches,financial assets can be designated as financial assets measured at fair value and whose changes included in the current profit and loss.For such financial assets, fair value is used for subsequent measurement, and all changes in fair value are included in the currentprofit and loss.When and only when the Company changes its business model for managing financial assets, it will reclassify all affected relatedfinancial assets.For financial assets measured at fair value and whose changes are included in the current profit or loss, the related transaction costsare directly included in the current profit and loss, and the related transaction costs of other types of financial assets are included inthe 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 financial liabilities measuredat 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 at fair value andwhose changes are included in current profit or loss during initial measurement: (1) This designation can eliminate or significantlyreduce accounting mismatches; (2) According to the group risk management or investment strategies stated in official writtendocuments, management and performance evaluation of financial liability portfolios or financial assets and financial liabilityportfolios are conducted based on fair value, and are reported to key management personnel within the group on this basis; (3) Thefinancial liability includes embedded derivatives that need to be split separately.The Company determines the classification of financial liabilities at initial recognition. For financial liabilities that are measured atfair value and whose changes are included in the current profit or loss, the related transaction costs are directly included in the currentprofit and loss, and the related transaction costs of other financial liabilities 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 on amortized 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 loss include tradingfinancial liabilities (including derivatives that are financial liabilities) and financial liabilities designated to be measured at fair valueat the initial recognition and whose changes are included in the current profit 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 the balance sheet withthe net amount after mutual offset: legal right to offset the confirmed amount, and this legal right is currently executable; Netsettlement, or simultaneous realization of the financial assets and liquidation of the financial liabilities.
(5) Impairment of financial assets
The Company recognizes the loss provisions on the basis of expected credit losses for financial assets measured at amortized cost,debt instrument investments measured at fair value and whose changes are included in other comprehensive income and financialguarantee contracts. Credit loss refers to the difference between all contractual cash flows receivable under the contract anddiscounted according to original actual interest rate by the Company and all expected receivable cash flows, that is, the present valueof all cash shortages.The Company considers all reasonable and evidence-based information, including forward-looking information, and estimates theexpected credit loss of financial assets measured at amortized cost and financial assets measured at fair value and whose changes areincluded in other comprehensive income (debt instruments) in a single or combined manner.
1) General model of expected credit loss
If the credit risk of the financial instrument has increased significantly since the initial recognition, the Company measures its lossprovisions in accordance with the amount equivalent to the expected credit loss of the financial instrument for the entire duration; ifthe credit risk of the financial instrument has not significantly increased since the initial recognition, the Company measures its lossprovisions in accordance with the amount equivalent to the expected credit loss of the financial instrument in the next 12 months. Theresulting increased or reversed amount of the loss provisions is included in the current profit and loss as an impairment loss or gain.For the Company’s specific 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 it exceeds 30 daysafter the due date, unless there is concrete evidence that the credit risk of the financial instrument has not increased significantly sinceinitial recognition.Specifically, the Company divides the process of credit impairment of financial instruments of which no credit impairment hasoccurred at the time of purchase or origin into three stages. There are different accounting treatment methods for the impairment offinancial 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 the expected credit losses inthe 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, the same 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 the expected credit loss of theinstrument for its entire duration, and calculate the interest income based on its book balance 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 expected credit losses of theinstrument for its entire duration, but the calculation of interest income is different from the financial assets at the previous two stages.For financial assets that have suffered credit impairment, the enterprise should 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 should only recognizechanges 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 date with its credit riskat initial recognition, but directly makes the assumption that the credit risk of the instrument has not increased significantly since theinitial recognition.
If the enterprise confirms that the default risk of financial instruments is low, the borrower has a strong ability to fulfill its contractualcash flow obligations in the short term, and even if there are adverse changes in the economic situation and operating environment ina longer period of time, it will not necessarily reduce the borrower’s ability to fulfill its contractual cash flow obligations, then thefinancial instrument can be considered to have lower credit risk.
3) Accounts receivable and lease receivables
The Company adopts the simplified model of expected credit loss for accounts receivables specified in “Accounting Standards forBusiness Enterprises No.14 - Revenue” and without containing significant financing components (including the case that thefinancing components in contracts that do not exceed one year are not considered according to the standards), that is, alwaysmeasures their loss provisions according to the amount of expected credit loss during the entire duration.
The Company makes accounting policy choices for the receivables containing significant financing components and the leasereceivables specified in “Accounting Standards for Business Enterprises No.21 - Leases”, and chooses to adopt the simplified modelof expected credit losses, that is, to measure the loss provisions in accordance with the amount of expected credit losses throughoutthe 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 the transferee, therecognition of the financial assets shall be terminated; where almost all risks and rewards in the ownership of a financial asset areretained, 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, it shall be accountedfor as follows: the financial asset should be terminated if the Group waives control over the asset; it recognizes the financial asset tothe extent of its continuing involvement in the transferred financial asset and recognizes an associated liability if the Group does notwaives control over the asset.If the transferred financial assets continue to be involved by providing financial guarantee, the assets continue to be involved shall berecognized according to the lower of the book value of the financial assets and the amount of financial guarantee. The financialguarantee amount means the maximum amount of consideration received which will 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 forBusiness Enterprises No.14 - Revenue” and without containing significant financing components (including the case that thefinancing components in contracts that do not exceed one year are not considered according to the standards), that is, alwaysmeasures their loss provisions according to the amount of expected credit loss during the entire duration, and the resulting increasedor reversed amount of the loss provision is included in the current profit and loss as an impairment loss or gain. The accrual methodis as follows:
The Company divides the bills receivable into two types, i.e. bank acceptance bills and commercial acceptance bills portfolios,
according to the type of financial instruments. For bank acceptance bills, the accepting bank pays the determined amount to the takeror the bearer unconditionally due to the maturity of the bills, the overdue credit loss is low and has not increased significantly sincethe initial confirmation, the Company believes that the risk of overdue default is 0; for commercial acceptance bills, the Companybelieves that the probability of default is related to the aging, we use the aging analysis method to accrue bad debt provisions, fordetails 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 forBusiness Enterprises No.14 - Revenue” and without containing significant financing components (including the case that thefinancing components in contracts that do not exceed one year are not considered according to the standards), that is, alwaysmeasures their loss provisions according to the amount of expected credit loss during the entire duration, and the resulting increasedor reversed amount of the loss provision is included in the current profit and loss as an impairment loss or gain.For accounts receivable that contain a significant financing component, the Company chooses to use the simplified model ofexpected credit losses, that is, to always measure its loss provisions according to the amount of expected credit losses during theentire duration.
1. Simplified model of expected credit losses: always measure the loss provisions according to the amount of expected credit lossesduring the entire durationThe Company considers all reasonable and well-founded information, including estimates of expected credit losses on accountsreceivable 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 Note V.- (10) Financial InstrumentNote: well-explain according to specific condition of the Company
13. Account receivable financing
N/A
14. Other account receivable
Determining method and accounting treatment on the expected credit loss of other account receivableThe Company adopts the simplified model of expected credit loss for accounts receivables specified in “Accounting Standards forBusiness Enterprises No.14 - Revenue” and without containing significant financing components (including the case that thefinancing components in contracts that do not exceed one year are not considered according to the standards), that is, alwaysmeasures their loss provisions according to the amount of expected credit loss during the entire duration, and the resulting increasedor reversed amount of the loss provision is included in the current profit and loss as an impairment loss or gain.
For accounts receivable that contain a significant financing component, the Company chooses to use the simplified model ofexpected credit losses, that is, to always measure its loss provisions according to the amount of expected credit losses during theentire duration.
1. Simplified model of expected credit losses: always measure the loss provisions according to the amount of expected credit lossesduring the entire durationThe Company considers all reasonable and well-founded information, including estimates of expected credit losses on accountsreceivable 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 minor 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 Note V.- (10) Financial InstrumentNote: well-explain according to specific condition of the Company
15. Inventory
The Company shall comply with the disclosure requirement of “Guidelines on Industry Information Disclosure of Shenzhen StockExchange No. 11- Listed Company Engaged in Jewelry-related Business”
(1) Classification of inventory
The inventory of the Company refers to such seven classifications as the raw materials, product in process, goods on 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 costs and other costs. Theprices 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 is allocated oradjusted using the lower of the cost of inventory and the net realizable value. The net realizable value of stock in inventory (includingfinished products, inventory merchandize and materials for sale) that can be sold directly is determined using the estimated saleableprice of such inventory deducted by the cost of sales and relevant taxation over the course of ordinary production and operation. Thenet realizable value of material in inventory that requires processing is determined using the estimated saleable price of the finishedproduct deducted by the cost to completion, estimated cost of sales and relevant taxation over the course of ordinary production andoperation. The net realizable value of inventory held for performance of sales contract or labor service contract is determined basedon the contractual price; in case the amount of inventory held exceeds the contractual amount, the net realizable value of the excessportion of inventory is calculated using the normal saleable price.Provision for impairment is made according to individual items of inventories at the end of the period; however, for inventories withlarge quantity and low unit price, the provision is made by categories; inventories of products that are produced and sold in the sameregion or with the same or similar purpose or usage and are difficult to be measured separately are combined for provision forimpairment.If the factors causing a previous write-off of inventory value has disappeared, the amount written-off is reversed and the amountprovided 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
N/A
17.Contractual cost
N/A
18. Assets held for sale
The Company classifies such corporate components (or non-current assets) that meet the following criteria as held-for-sale: (1)Disposable immediately under current conditions based on similar transactions for disposals of such assets or practices for thedisposal group; (2) Probable disposal; that is, a decision has been made on a plan for disposal and an undertaking to purchase hasbeen obtained (the undertaking to purchase means a binding purchase agreement entered into by the Company and other parties,which contains transaction price, time and adequately strict punishments for breach of contract provisions, which renders thepossibility of material adjustment 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 byrelevant rules.
The expected net residual value of asset held for sale is adjusted by the Company to reflect its fair value less selling expense,provided that the net amount shall not exceed the original carrying value of the asset. In case that the original value is higher than theadjusted expected net residual value, the difference shall be recorded in profit or loss for the period as asset impairment loss, andallowance of impairment for the asset shall be provided. Impairment loss recognized in respect of the disposal group held for saleshall be used to offset the carrying value of the goodwill in the disposal group, and then offset the carrying value of the non-currentassets within the disposal 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 expenses increased as at thesubsequent balance date, the reduced amount before will be recovered and reversed in the assets impairment loss amount recognizedafter being classified as held for sale, and the reversed amount will be recorded in the current profits or loss. The impairment loss onassets recognized before being classified as held for sale will not be reversed. In respect of the disposal group held for sale, if the netamount after their fair value less the selling expenses increased as at the subsequent balance date, the reduced amount before will berecovered and reversed in the assets impairment loss amount recognized in non-current assets after being classified as held for sale,and the reversed amount will be recorded in the current profits or loss. The reduced book value of the goodwill as well as theimpairment loss on assets recognized before the non-current assets are classified as held for sale will not be reversed. The subsequentreversed amount in respect of the impairment loss on assets recognized in the disposal group held for sale will increase the bookvalue in proportion of the book value of each non-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, the investment in a subsidiaryshall be classified as held for sale in its entirety in the individual financial statement of the parent company, and all the assets andliabilities of the subsidiary shall be classified as held for sale in the consolidated financial statement subject to that the proposeddisposal of investment in the subsidiary satisfies such conditions as required for being classified as held for sale notwithstanding partequity investment will be retained by the Company after such disposal.
19.Debt investment
N/A
20.Other debt investment
N/A
21.Long-term account receivable
N/A
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 cash payment, transferof non-cash assets, assumption of debts or issuance of equity securities as the consolidation consideration, the shares of the bookvalue of the owner’s equity obtained from the combined party on the date of combination in the ultimate controlling party’sconsolidated financial statements shall be recognized as its initial investment cost. Capital reserves shall be adjusted according to thebalance between the initial investment cost for long-term equity investment and the book value of paid consolidation consideration orthe total face value of issued shares (capital premium or equity premium). If capital reserves are insufficient for offset, retainedearnings shall be adjusted.As for business combination under the common control realized by the Company through several transactions, the initial investmentcost of the investment shall be determined based on the share of the carrying value of the owners’ equity of the consolidated party ascalculated according to the shareholding proportion on the consolidation date. Difference between initial investment cost and thecarrying value of long-term equity investment before combination and the sum of carrying value of newly paid consideration foradditional shares acquired on the date of combination is to adjust capital reserve (capital premium or equity premium). If the balanceof 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 fair value of theconsolidated 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 acquisitioncosts shall be taken as the initial investment cost. For those ones obtained by the issuance of equity securities, the fair value of theissued equity securities shall be taken as the initial investment cost. For those ones invested by investors, the value agreed in theinvestment contract or agreement shall be taken as the initial investment cost, provided that the value agreed in the contract oragreement 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-term investment is accountedfor using the cost method in the Company’s financial statements. The equity method is adopted when the Group has joint control, orexercises significant influence on the investee.Under cost method, long term equity investment is measured at initial investment cost. Except for the price actually paid forobtaining the investment or the cash dividends or profits declared but not yet distributed which is included in the consideration, theCompany recognizes cash dividends or profits declared by the investee as current investment gains, and determine whether there isimpairment on long term investment according to relevant assets impairment policies.Under equity method, when the initial investment cost of the long-term equity investment exceeds the share of fair value in the netidentifiable assets in the investee, the difference shall be included in initial investment cost of the long-term equity investment. When
the initial investment cost is lower than the share of fair value in the net identifiable asset in the investee, such difference isrecognized in profit or loss for the period with adjustment of cost of the long-term equity investment.Under equity method, after the Company acquires a long-term equity investment, it shall, in accordance with its attributable share ofthe net profit or loss realized by the investee, recognize the investment profit or loss and adjust carrying value of the investment. TheGroup recognizes its share of the investee’s net profits or losses after making appropriate adjustments to the investee’s net profits andlosses based on the fair value of the investee’s identifiable assets at the acquisition date, using the Group’s accounting policies andperiods, and eliminating the portion of the profits or losses arising from internal transactions with its joint ventures and associates,attributable to the investing entity according to its shareholding proportion (but impairment losses for assets arising from internaltransactions shall be recognized in full). The carrying amount of the investment is reduced based on the Group’s share of any profitdistributions or cash dividends declared by the investee. The Group’s share of net losses of the investee is recognized to the extent thecarrying amount of the investment together with any long-term interests that in substance form part of its net investment in theinvestee is reduced to zero, except that the Group has the obligations to assume additional losses. The Group adjusts the carryingamount of the long-term equity investment for any changes in owners’ equity of the investee (other than net profits or losses) andincludes the corresponding adjustments in the owners’ equity of the Group.
(3) Determination of control and significant influence on investee
Control is the power over an investee. An investor must have exposure or rights to variable returns from its involvement with theinvestee, and the ability to use its power over the investee to affect the amount of the investor’s returns. Significant influence is thepower to participate in the financial and operating policy decisions of the investee but is not control or joint control with other partiesover 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 difference between disposalproceeds and carrying amount of the proportion being disposed is accounted for through profit or 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 term invest on the stockright, 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 other financial assets according to their carrying amount. After partialdisposal, if the company is able to exert significant influence or common control over the investee, the investment should bemeasured according to cost method 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 joint ventures is impaired,provision of impairment shall be made against the difference between the carrying amount and the recoverable amount of theinvestment.
23. Investment real estate
Measurement modeMeasured by cost methodDepreciation or amortization method
(1) Investment property including land use right which has been rented out, land use right which is held for transfer uponappreciation and buildings which has been rented out.
(2) Investment properties are initially measured at cost and subsequently measured as per the cost pattern, and relevant withdrawal ofprovision for depreciation or amortization is carried out by the same method for fixed assets and intangible assets. As of the balancesheet date, where there is any indication that an investment property experiences impairment, the relevant impairment provision shall
be provided for based on the difference between the 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 assets
Finance lease is determined when one or a combination of the following conditions are satisfied: (1) the ownership has beentransferred to the lessee when the leasing term is due; (2) the lessee has the option to purchase the leasing asset at a price that is muchlower than its fair value, so it can be reasonably determined that the lessee will take the option at the very beginning of the lease; (3)the leasing term accounts for most time of the useful life (ordinarily accounting for 75% or higher) even if the ownership does nottransfer to the lessee; (4) the present value of the minimum amount of rent that the lessee has to pay at the first day of the leaseamounts to 90% or higher of its fair value at the same date; or the present value of the minimum amount of rent that the lessorcollects at the first day of the lease amounts to 90% or higher of its fair value at the same date; and/or (5) the leased assets are of sucha specialized nature that only the lessee can use them without major modifications. Fixed assets rented-in under finance lease arerecorded at the lower of fair value and the present value of the minimum lease payment at the inception of the lease, and aredepreciated following the depreciation policy for self-owned fixed assets.
25. Construction in progress
(1)When the construction in progress has reached the intended condition for use, it will be treated as fixed assets as per the actualconstruction cost. If the construction in progress has reached the intended condition for use but completion accounting is not carriedout, the construction in progress should be first treated as fixed assets as per the estimated value. After completion accounting iscarried out, the original estimated value should be adjusted as per the actual cost, but the provision for depreciation withdrawn shouldnot be adjusted.
(2)As of the balance sheet date, where there is any indication that a construction in process experiences impairment, the relevant
impairment provision shall be provided for based on the difference between the carrying value and the recoverable amount.
26. Borrowing expenses
N/A
27.Biological assets
N/A
28. Oil and gas asset
N/A
29.Right-of-use asset
N/A
30. Intangible assets
(1) Valuation method, service life and impairment test
(a)Intangible assets include land use right, patent right and non-patent technology, which should be initially measured at cost.(b)Intangible assets with limited service life should be amortized systematically and reasonably in their service lives as per theexpected form of realization economic benefits relating to the said intangible assets. If the form of realization cannot be reliablydetermined, the intangible assets should be amortized on a straight-line basis.(c)At the balance sheet date, when there is any indication that the intangible assets with finite useful lives may be impaired, aprovision for impairment loss is recognized on the excess of the carrying amounts of the assets over their recoverable amounts.Intangible assets with infinite useful lives and intangible assets not satisfying the condition for use yet are subject to impairment testeach year notwithstanding whether the assets are impaired.
(2) Internal accounting policies relating to research and development expenditures
Expenditure incurred in the research phase of internal R&D shall be included in current gain/loss at the time of occurrence.Intangible assets recognized for expenditure in exploitation stage by satisfying the followed at same time: ①it is technically feasiblethat the intangible asset can be used or sold upon completion; ②there is intention to complete the intangible asset for use or sale; ③the intangible asset can produce economic benefits, including there is evidence that the products produced using the intangible assethas a market or the intangible asset itself has a market; if the intangible asset is for internal use, there is evidence that there existsusage for the intangible asset; ④there is sufficient support in terms of technology, financial resources and other resources in order tocomplete the development of the intangible asset, and there is capability to use or sell the intangible asset; ⑤the expensesattributable to the development phase of the intangible asset can be measured reliably.
31. Impairment of long-term assets
N/A
32. Long-term expenses to be apportioned
Long-term expenses to be apportioned are booked by actual amount occurred, and apportioned evenly during the benefit period orregulated period.In case that the long-term deferred expenses are not likely to benefit the subsequent accounting periods, theoutstanding value of the item to be amortized shall be included in current profit or loss in full.
33.Contractual liability
N/A
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 compensation occurred shallrecognized as liabilities and reckoned into current gains/losses or relevant assets costs. The non-monetary welfare is measured by fairvalue.
(2) Accounting treatment for post-employment benefit
N/A
(3) Accounting for retirement benefits
Retirement benefitsWhen the Company terminates the employment relationship with employees before the end of the employment contracts or providescompensation as an offer to encourage employees to accept voluntary redundancy, the Company shall recognize employeecompensation liabilities arising from compensation for staff dismissal and included in profit or loss for the current period, when theCompany cannot revoke unilaterally compensation for dismissal due to the cancellation of labor relationship plans and employeeredundant proposals; and the Company recognize cost and expenses related to payment of compensation for dismissal andrestructuring, whichever is earlier.
(4) Accounting for other long-term employee benefits
Defined contribution plansThe employees of the Company have participated in the basic social endowment insurance organized and implemented by the locallabor and social security department. The Company pays the endowment insurance premium to the local basic social endowmentinsurance agency on a monthly basis based on the base and ratio of the local basic social endowment insurance payment. After theretirement of employees, the local labor and social security department has the responsibility to pay the social basic pension to theretired employees. During the accounting period in which employees provide services, the Company recognizes the amount payable
calculated according to the above social security insurance regulations as the liabilities and includes them in the current profit andloss or related asset costs.
35.Lease liabilities
N/A
36. Accrual liability
N/A
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 the recent arm’s lengthmarket transactions between knowledgeable, willing parties, reference to the current fair value of another instrument that issubstantially 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 thegrant, be recognized in relevant costs or expenses with the increase in the capital reserve accordingly. For equity-settled share-basedpayment made in return for the rendering of employee services that cannot be exercised until the services are fully rendered duringvesting period or specified performance targets are met, on each balance sheet date within the vesting period, the services acquired inthe current period shall, based on the best estimate of the number of exercisable instruments, be recognized in relevant costs orexpenses and the capital reserves at the fair value of such instruments on the date of the grant.
For equity-settled share-based payment made in exchange for service from other parties, such payment shall be measured at the fairvalue of the service as of the acquisition date is the fair value can be measured reliably. And if the fair value of the service cannot bemeasured reliably while the fair value of the equity instrument can be measured reliably, it shall be measure at the fair value of theinstrument as of the date on which the service is acquired, which shall be recorded in relevant cost or expense with increase inowners’ 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 render of service byemployees, the fair value of the liability incurred by the Company shall, on the date of the grant, be recognized in relevant costs orexpenses and the liabilities shall be increased accordingly. For cash-settled share-based payment made in return for the rendering ofemployee services that cannot be exercised until the services are fully provided during vesting period or specified performancetargets are met, on each balance sheet date within the vesting period, the services acquired in the current period shall, based on thebest estimate of the number of exercisable instruments, be recognized in relevant costs or expenses and the corresponding liabilitiesat the 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 shall recognize the increase inthe services rendered accordingly at the increased fair value of the equity instruments. If the revision results in an increase in thenumber of equity instruments granted, the Company will recognize the increase in the services rendered accordingly at the fair valueof the increased number of equity instruments. If the Company revises the vesting conditions on terms favorable to the employees,the Company will take into consideration 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 continue recognize theamount of services rendered accordingly at the fair value of the equity instruments on the date of grant without considering thedecrease in the fair value of the equity instruments. If the revision results in a decrease in the number of equity instruments granted,the Company will account for such decrease by reducing part of the cancellation of equity instruments granted. If the Companyrevises the vesting conditions on terms not favorable to the employees, the Company will not take into consideration of the revisedvesting conditions when dealing with the vesting conditions.
If the Company cancels the equity instruments granted or settles the equity instruments granted during the vesting period (other thancancellation as a result of failure to satisfy the vesting conditions), such cancellation or settlement will be treated as acceleratedexercisable rights and the original amount in the remaining vesting period will be recognized immediately.
38. Other financial instruments including senior shares and perpetual bondsN/A
39. Revenue
The Company shall comply with the disclosure requirement of “Guidelines on Industry Information Disclosure of Shenzhen StockExchange No. 11- Listed Company Engaged in Jewelry-related Business”
(1) Sales of goods
Income from sale of goods is recognized when the following conditions are met: 1)the Company has transferred the key risks andreturn on the ownership of the merchandize to the buyer; 2)the Company has not retained continued management rights associatedwith ownership and no longer exercises effective control on the merchandize sold; 3)the amount of income can be reliably measured;
4)the relevant economic benefits are very likely to flow to the enterprise; 5)the costs incurred or to be incurred can be reliablymeasured.Timing for recognition of revenue of the Company from products sales: revenue is recognized upon delivery of products to andconfirmed by purchaser with signature.
(2)Rendering of services
When the outcome of the transaction can be estimated reliably, revenue from rendering of services is recognized using the percentageof completion method. When the outcome of the transaction cannot be estimated reliably at the balance sheet date, revenue isrecognized based on the amount of the costs incurred and the costs incurred are charged off at the same amount when the costsincurred are expected to be recoverable; and no revenue is recognized and the costs incurred are charged off as an expense of theperiod when the costs incurred are not expected to be recovered.
(3) Transfer of asset use right revenue
When the economic benefits related to the transaction is likely to flow to the company and the income amount can be reliablycalculated, the company shall recognize income arising from transfer of asset use right. The income of interests is determined onbasis of the time and real interest rate of the company’s cash funds which is utilized by other persons. The income of royalties isdetermined on basis of the chargeable time and method fixed 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, and measured at fair value ifgranted as non-monetary assets. If the fair value can not be determined reliably, they shall 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 loss by installmentreasonably and systematically within the useful life of the assets. If assets are sold, transferred, discarded as useless or damaged priorto expiration of the useful life, the remaining deferred income undistributed shall be transferred to profit or loss for the period inwhich the assets are disposed.
2)If government grants relating to income are used to compensate for relevant costs or loss for the subsequent periods, they shall berecognized as deferred income, and recorded in profit or loss for the period in which the relevant costs are recognized. If governmentgrants relating to income are used to compensate for the relevant costs or loss occurred, they shall be recorded in profit or loss for theperiod 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 subsequent periods, they shall berecognized as deferred income, and recorded in profit or loss for the period in which offset against the relevant costs. If governmentgrants relating to income are used to compensate for the relevant costs or loss occurred, they shall be offset against the relevant costsfor 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 shall be made fordifferent portion; in case it is hard to differentiate the portions, the grants will be recorded as related to income in general.
(7)The Company realizes government grants relating to its normal activities as other income based on the substance of economicbusiness, and if not related to its normal activities, realized as non-operating income and expenditure.
(8)Subsidized loans from preferential policy obtained by the Company are classified based on whether subsidy funds are paid to theloaning bank or directly to the Company by the competent financial authorities and are treated based on the following principles:
1)Where subsidy funds are paid to the loaning bank by the competent financial authorities and the bank then provides loans to theCompany 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 relevant borrowing costsbased on the principal and the preferential policy rate.
b.Recognizes the fair value of the loan as the carrying value and calculates the borrowing cost under effective interest method, andrecognizes the difference between the actual amount received and the fair value of the loan as deferred income. Deferred income is
amortized over the term of the loan under effective interest method and offset against the relevant borrowing costs.
2)Where subsidy funds are paid directly to the Company, the Company will offset the corresponding subsidy against the relevantborrowing 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 the carrying amountand tax base of assets and liabilities (and the difference of the carrying amount and tax base of items not recognized as assets andliabilities but with their tax base being able to be determined according to tax laws) and in accordance with the tax rate applicable tothe period during which the assets are expected to 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 to obtain and whichcan be deducted from the deductible temporary difference. At the balance sheet date, if there is any exact evidence that it is probablethat future taxable profits will be available against which deductible temporary differences can be utilized, the deferred tax assetsunrecognized in prior periods are recognized.
(3)At the balance sheet date, the carrying amount of deferred tax assets is reviewed. The carrying amount of a deferred tax asset isreduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow the benefit of the deferredtax asset to be utilized. Such reduction is subsequently reversed to the extent that it becomes probable that sufficient taxable incomewill be available.
(4)The income tax and deferred tax for the period are treated as income tax expenses or income through profit or loss, excludingthose arising from the following circumstances: ① business combination; and ② the transactions or items directly recognized inequity.
42. Lease
(1)Accounting for operating lease
N/A
(2)Accounting for financing lease
N/A
43. Other important accounting policy and estimation
N/A
44. Changes of important accounting policy and estimation
(1) Changes of important accounting policy
√ Applicable □ Not applicable
| The contents and reasons of accounting policy changes | Examination and approval procedures | Note |
| According to the regulations of "Accounting Standards for Business Enterprises No. 14 - Revenue" of the Ministry of Finance, domestic listed companies are required to implement this accounting standard from January 1, 2020. The Company has implemented the "Accounting Standards for Business Enterprises No. 14 - Revenue" (CK [2017] No. 22) revised by the Ministry of Finance from January 1, 2020. | Deliberated and approved by 24th session of 10th BOD |
In accordance with the relevant regulations for the connection of the old and new standards, no adjustments are made to comparableperiod information, and the cumulative impact of the implementation of the new standards adjusts the amount of retained earnings atthe beginning of the period and other related items in the financial statements. The specific impact of the implementation of the newrevenue standard on the Company is that the contract-related advance receipts are changed from the "advance receipts" item to the"contract liabilities" item in presentation.
(2) Changes of important accounting estimation
□ Applicable √ Not applicable
(3)Adjust the financial statement items at beginning of the year when first implemented the New RevenueStandards and New Lease Standards since 2020
ApplicableWhether adjusted the item of balance sheet at year-begin or not
√Yes □No
Consolidated balance sheet
In RMB
| Item | 2019-12-31 | 2020-01-01 | Adjustment |
| Current assets: | |||
| Monetary funds | 6,074,367.91 | 6,074,367.91 | |
| Settlement provisions | |||
| Capital lent | |||
| Tradable financial assets | |||
| Derivative financial assets | |||
| Note receivable | 580,000.00 | 580,000.00 | |
| Account receivable | 38,616,523.93 | 38,616,523.93 | |
| Receivable financing |
| Account paid in advance | 938,425.99 | 938,425.99 | |
| Insurance receivable | |||
| Reinsurance receivables | |||
| Contract reserve of reinsurance receivable | |||
| Other account receivable | 740,354.71 | 740,354.71 | |
| Including: Interest receivable | |||
| Dividend receivable | |||
| Buying back the sale of financial assets | |||
| Inventories | 6,078,330.30 | 6,078,330.30 | |
| Contractual assets | |||
| Assets held for sale | |||
| Non-current asset due within one year | |||
| Other current assets | 3,318,514.25 | 3,318,514.25 | |
| Total current assets | 56,346,517.09 | 56,346,517.09 | |
| Non-current assets: | |||
| Loans and payments on behalf | |||
| Debt investment | |||
| Other debt 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 | 4,191,503.33 | |
| Construction in progress |
| Productive biological asset | |||
| Oil and gas asset | |||
| Right-of-use assets | |||
| Intangible assets | 753,000.00 | 753,000.00 | |
| Expense on Research and Development | |||
| Goodwill | |||
| Long-term expenses to be apportioned | |||
| Deferred income tax asset | 1,042,582.16 | 1,042,582.16 | |
| Other non-current asset | 400,000.00 | 400,000.00 | |
| Total non-current asset | 6,387,085.49 | 6,387,085.49 | |
| Total assets | 62,733,602.58 | 62,733,602.58 | |
| Current liabilities: | |||
| Short-term loans | |||
| Loan from central bank | |||
| Capital borrowed | |||
| Trading financial liability | |||
| Derivative financial liability | |||
| Note payable | |||
| Account payable | 10,191,385.23 | 10,191,385.23 | |
| Accounts received in advance | 1,739,953.80 | 0.00 | -1,739,953.80 |
| Contract liability | 1,539,782.12 | 1,539,782.12 | |
| Selling financial asset of repurchase | |||
| Absorbing deposit and interbank deposit | |||
| Security trading of agency | |||
| Security sales of agency | |||
| Wage payable | 599,962.73 | 599,962.73 | |
| Taxes payable | 585,062.75 | 785,234.43 | 200,171.68 |
| Other account payable | 38,175,654.98 | 38,175,654.98 | |
| 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 | 51,292,019.49 | |
| 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 | 0.00 | ||
| Total liabilities | 51,292,019.49 | 51,292,019.49 | |
| 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 | -1,204,736,075.56 | |
| Total owner’ s equity attributable to parent company | 7,119,396.30 | 7,119,396.30 | |
| Minority interests | 4,322,186.79 | 4,322,186.79 | |
| Total owner’ s equity | 11,441,583.09 | 11,441,583.09 | |
| Total liabilities and owner’ s equity | 62,733,602.58 | 62,733,602.58 |
ExplanationAccording to the new revenue standard, adjust the number of statements at the beginning of the year, based on the amount received inadvance of the contract, amount excluding tax is adjusted from "Account receivable in advance" to "contract liabilities", and "amountof tax to be written off" is adjusted to "tax payable".Balance sheet of parent company
In RMB
| Item | 2019-12-31 | 2020-01-01 | Adjustment |
| Current assets: | |||
| Monetary funds | 1,959,804.92 | 1,959,804.92 | |
| Trading financial assets | |||
| Derivative financial assets | |||
| Note receivable | 580,000.00 | 580,000.00 | |
| Account receivable | 32,843,536.70 | 32,843,536.70 | |
| Receivable financing | |||
| Account paid in advance | 76,937.00 | 76,937.00 |
| Other account receivable | 485,062.44 | 485,062.44 | |
| Including: Interest receivable | |||
| Dividend receivable | |||
| Inventories | 1,333,374.72 | 1,333,374.72 | |
| Contractual assets | |||
| Assets held for sale | |||
| Non-current assets maturing within one year | |||
| Other current assets | 2,830,705.01 | 2,830,705.01 | |
| Total current assets | 40,109,420.79 | 40,109,420.79 | |
| Non-current assets: | |||
| Debt investment | |||
| Other debt investment | |||
| Long-term receivables | |||
| Long-term equity investments | 4,235,379.73 | 4,235,379.73 | |
| Investment in other equity instrument | |||
| Other non-current financial assets | |||
| Investment real estate | |||
| Fixed assets | 3,813,708.80 | 3,813,708.80 | |
| Construction in progress | |||
| Productive biological assets | |||
| Oil and gas assets | |||
| Right-of-use assets | |||
| Intangible assets | 753,000.00 | 753,000.00 | |
| 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 | 9,202,088.53 | |
| Total assets | 49,311,509.32 | 49,311,509.32 | |
| Current liabilities | |||
| Short-term borrowings | |||
| Trading financial liability | |||
| Derivative financial liability | |||
| Notes payable | |||
| Account payable | 9,002,524.60 | 9,002,524.60 | |
| Accounts received in advance | 572,687.18 | 0.00 | -572,687.18 |
| Contract liability | 506,802.81 | 506,802.81 | |
| Wage payable | 507,738.35 | 507,738.35 | |
| Taxes payable | 27,797.28 | 93,681.65 | 65,884.37 |
| Other accounts payable | 36,803,498.12 | 36,803,498.12 | |
| 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 | 46,914,245.53 | |
| 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 | 0.00 | ||
| Total liabilities | 46,914,245.53 | 46,914,245.53 | |
| 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 | -1,209,458,208.07 | |
| Total owner’s equity | 2,397,263.79 | 2,397,263.79 | |
| Total liabilities and owner’s equity | 49,311,509.32 | 49,311,509.32 |
ExplanationAccording to the new revenue standard, adjust the number of statements at the beginning of the year, based on the amount received inadvance of the contract, amount excluding tax is adjusted from "Account receivable in advance" to "contract liabilities", and "amountof tax to be written off" is adjusted to "tax payable".
(4)Retrospective adjustment of the previous comparative data for first implemented the New RevenueStandards and New Lease Standards since 2020
□ Applicable √ Not applicable
45. Other
N/A
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% |
| 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% |
Disclose reasons for different taxpaying body
| Taxpaying body | Income tax rate |
| 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 Small and MicroEnterprises” (Caishui [2019] No.13), for the portion of the annual taxable income of small and micro-profit enterprises not exceeding1 million yuan, of which 25% is reckoned in taxable income, and the corporate income tax is paid at a tax rate of 20%; for the portionof annual taxable income exceeding 1 million yuan but not exceeding 3 million yuan, of which 50% is reckoned in taxable income,and the corporate income tax is paid at a tax rate of 20%.
3. Other
NilVII. Notes to Items in Consolidated Financial Statements
1. Monetary fund
In RMB
| Item | Ending balance | Opening Balance |
| Cash on hand | 108,773.66 | 89,313.66 |
| Cash in bank | 12,105,490.19 | 5,979,003.60 |
| Other monetary fund | 6,050.65 | |
| Total | 12,214,263.85 | 6,074,367.91 |
Other explanationAt the end of the period, there are no mortgages, pledges, freezes, etc. that restrict the use of funds.At the end of the period, there are no funds deposited overseas or with potential recovery risks.
2. Trading financial assets
In RMB
| Item | Ending balance | Opening Balance |
| Including: | ||
| Including: |
Other explanation:
Nil
3. Derivative financial assets
In RMB
| Item | Ending balance | Opening Balance |
Other explanation:
Nil
4. Notes receivable
(1) Category
In RMB
| Item | Ending balance | Opening Balance |
| Bank acceptance | 150,000.00 | 580,000.00 |
| Total | 150,000.00 | 580,000.00 |
In RMB
| Category | Ending balance | Opening Balance | ||||||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
| Amount | Ratio | Amount | Accrual ratio | Amount | Ratio | Amount | Accrual ratio | |||
| 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 | Ending balance | |||
| Book balance | Bad debt provision | Accrual ratio | Accrual causes | |
| Total | 0.00 | 0.00 | -- | -- |
Bad debt provision accrual on single basis:
In RMB
| Name | Ending balance | |||
| Book balance | Bad debt provision | Accrual ratio | Accrual causes | |
| Total | 0.00 | 0.00 | -- | -- |
Bad debt provision accrual on single basis:
In RMB
| Name | Ending balance | |||
| Book balance | Bad debt provision | Accrual ratio | Accrual causes | |
| Total | 0.00 | 0.00 | -- | -- |
Bad debt provision accrual on single basis:
In RMB
| Name | Ending balance | |||
| Book balance | Bad debt provision | Accrual ratio | Accrual causes | |
Bad debt provision accrual on portfolio:
In RMB
| Name | Ending balance | ||
| 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 | Ending balance | ||
| 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 | Ending balance | ||
| 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 | Opening Balance | Current changes | Ending balance | ||
| Accrual | Collected or reversal | Charge-off | |||
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 |
(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 | 8,967,471.70 | 0.00 |
| Total | 8,967,471.70 | 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 |
Other explanation
(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) |
Explanation on note receivable change-off:
5. Account receivable
(1) Category
In RMB
| Category | Ending balance | Opening Balance | ||||||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
| Amount | Ratio | Amount | Accrual ratio | Amount | Ratio | Amount | Accrual ratio | |||
| Account receivable with bad debt provision accrual by single basis | 5,786,607.45 | 11.51% | 4,073,811.33 | 70.40% | 1,712,796.12 | 9,421,186.95 | 21.81% | 4,477,656.23 | 47.53% | 4,943,530.72 |
| 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 | 5,786,607.45 | 11.51% | 4,073,811.33 | 70.40% | 1,712,796.12 | 4,385,583.20 | 10.15% | 2,966,975.10 | 67.65% | 1,418,608.10 |
| Account receivable with bad debt provision accrual by portfolio | 44,509,189.39 | 88.49% | 133,527.57 | 0.30% | 44,375,661.82 | 33,774,316.16 | 78.19% | 101,322.95 | 0.30% | 33,672,993.21 |
| Including: | ||||||||||
| Aging analysis method | 44,509,189.39 | 88.49% | 133,527.57 | 0.30% | 44,375,661.82 | 33,774,316.16 | 78.19% | 101,322.95 | 0.30% | 33,672,993.21 |
| Total | 50,295,796.84 | 100.00% | 4,207,338.90 | 8.37% | 46,088,457.94 | 43,195,503.11 | 100.00% | 4,578,979.18 | 10.60% | 38,616,523.93 |
Bad debt provision accrual on single basis: The individual amount is not significant
In RMB
| Name | Ending balance | |||
| Book balance | Bad debt provision | Accrual ratio | Accrual causes | |
| Shijiazhuang Dasong Tech. Co., Ltd | 837,064.00 | 837,064.00 | 100.00% | Expected to be difficult 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. | 1,149,000.00 | 380,100.00 | 33.08% | Expected to be difficult to recover |
| Shenzhen Jiahaosong Technology Co., Ltd. | 2,393,603.75 | 1,510,681.13 | 63.11% | Expected to be difficult to recover |
| Total | 5,786,607.45 | 4,073,811.33 | -- | -- |
Bad debt provision accrual on single basis:
In RMB
| Name | Ending balance | |||
| Book balance | Bad debt provision | Accrual ratio | Accrual causes | |
Bad debt provision accrual on portfolio: Aging analysis
In RMB
| Name | Ending balance | ||
| Book balance | Bad debt provision | Accrual ratio | |
| Within one year (one year included) | 40,519,515.84 | 121,558.55 | 0.30% |
| 1-2 years (2 years included) | 3,989,673.55 | 11,969.02 | 0.30% |
| Total | 44,509,189.39 | 133,527.57 | -- |
Explanation on portfolio basis:
NilBad debt provision accrual on portfolio:
In RMB
| Name | Ending balance | ||
| 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, pleaserefer to the disclosure of other account receivable to disclose related information about bad-debt provisions:
□Applicable √Not applicable
By account age
In RMB
| Account age | Ending balance |
| Within one year (one year included) | 40,519,515.84 |
| Within one year | 40,519,515.84 |
| 1-2 years | 7,496,552.80 |
| 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 | 50,295,796.84 |
(2) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
In RMB
| Category | Opening Balance | Current changes | Ending balance | |||
| Accrual | Collected or reversal | Charge-off | Other | |||
| Bad debt provision for accounts receivable | 4,578,979.18 | 33,996.70 | 201,743.40 | 202,101.50 | 4,207,338.90 | |
| Total | 4,578,979.18 | 33,996.70 | 201,743.40 | 202,101.50 | 4,207,338.90 | |
Including important amount of bad debt provision collected or reversal in the period:
In RMB
| Enterprise | Amount collected or reversal | Collection way |
| Shenzhen Boyineng Technology Co., Ltd. | 201,743.40 | Payment recovery |
| Total | 201,743.40 | -- |
At the end of the previous year, for those estimated to be difficult to recover, 30% bad debt provision was accrued based on theinsignificant single amount and a separate provision for bad debts. During this year, the company collected payment for several timesand by various methods. After the impairment test, the possibility of recoverable was greatly increased, so the provision for bad debtsthat had been accrued was reversed.
(3) Account receivables actually charge-off during the reporting period
In RMB
| Item | Amount charge-off |
| The actual write-off of accounts receivable | 202,101.50 |
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) |
| Shijiazhuang Dasong Technology Co., Ltd. | Goods payment | 202,101.50 | Unable to recover | N | |
| Total | -- | 202,101.50 | -- | -- | -- |
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. | 12,758,950.90 | 25.37% | 38,276.85 |
| Zhengzhou Guiguan Tech. Trade. Co., Ltd | 5,218,756.80 | 10.38% | 15,656.27 |
| Shenzhen Bi’ai Diamond Co., Ltd. | 4,897,954.16 | 9.74% | 14,693.86 |
| Fuzhou Rongrun Jewelry Co., Ltd. | 3,558,748.00 | 7.08% | 10,676.24 |
| Shenzhen Weiterui New Energy Technology Co., Ltd. | 3,424,471.05 | 6.81% | 10,273.41 |
| Total | 29,858,880.91 | 59.38% |
(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
6. Receivables financing
In RMB
| Item | Ending balance | Opening Balance |
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 | Ending balance | Opening Balance | ||
| Amount | Ratio | Amount | Ratio | |
| Within one year | 2,489,164.74 | 100.00% | 938,425.99 | 100.00% |
| Total | 2,489,164.74 | -- | 938,425.99 | -- |
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 (%) |
| Taixing Suchi Electronics Co., Ltd. | Non-related party | 830,000.00 | Within 1 year | Goods advance payment | 33.34 |
| Shenzhen Jinming Artisan Jewelry Co., Ltd. | Non-related party | 610,658.49 | Within 1 year | Prepaid processing fee | 24.53 |
| Hubei Zhongyi Technology Co., Ltd. | Non-related party | 360,000.00 | Within 1 year | Goods advance payment | 14.46 |
| Shenzhen Zhuoyue New Times Electronics Co., Ltd. | Non-related party | 284,400.00 | Within 1 year | Goods advance payment | 11.43 |
| Huzhou Kunlun Power Battery Material Co., Ltd. | Non-related party | 97,500.00 | Within 1 year | Goods advance payment | 3.92 |
| Total | 2,182,558.49 | 87.68 |
Other explanation：
Nil
8. Other account receivable
In RMB
| Item | Ending balance | Opening Balance |
| Other account receivable | 458,177.20 | 740,354.71 |
| Total | 458,177.20 | 740,354.71 |
(1) Interest receivable
1) Category
In RMB
| Item | Ending balance | Opening Balance |
2) Important overdue interest
In RMB
| Borrower | Ending balance | 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) | Ending balance | Opening Balance |
2) Important dividend receivable with over one year aged
In RMB
| Item (or invested company) | Ending balance | 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 Ending balance | Book Opening Balance |
| Deposit or margin | 369,600.88 | 754,822.00 |
| Payment for equipment | 311,400.00 | 311,400.00 |
| Personal loan of employees | 130,254.99 | 28,060.45 |
| Total | 811,255.87 | 1,094,282.45 |
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, 2020 | 353,927.74 | 353,927.74 | ||
| Balance on January 1, 2020 in the current period | —— | —— | —— | —— |
| Current reversal | 849.07 | 849.07 | ||
| Balance on June 30, 2020 | 353,078.67 | 353,078.67 |
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 | Ending balance |
| Within one year (one year included) | 173,016.88 |
| Within one year | 173,016.88 |
| 1-2 years | 116,338.99 |
| 2-3 years | 170,200.00 |
| 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 | 811,255.87 |
3) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
In RMB
| Category | Opening Balance | Current changes | Ending balance | |||
| Accrual | Collected or reversal | Write off | Other | |||
| Bad debt provision for other receivables | 353,927.74 | 849.07 | 353,078.67 | |||
| Total | 353,927.74 | 849.07 | 353,078.67 | |||
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-off
Nil
5) Top 5 other account receivable collected by arrears party at ending balance
In RMB
| Enterprise | Nature | Ending balance | 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 | 36.98% | 300,000.00 |
| Alipay (China) Network Technology Co., Ltd. | Margin or deposit | 110,000.00 | Within 3 years | 13.56% | 330.00 |
| Shenye Pengji (Group) Co., Ltd. | Rent deposit | 107,194.00 | Within 1 year | 13.21% | 321.58 |
| Guangzhou Vipshop E-Business Co., Ltd. | Margin or deposit | 50,000.00 | Within 2 years | 6.16% | 150.00 |
| Quick Money Payment Clearing Information Co., Ltd. | Margin or deposit | 30,000.00 | Within 2 years | 3.70% | 90.00 |
| Total | -- | 597,194.00 | -- | 73.61% | 300,891.58 |
6) Account receivable with government grants involved
In RMB
| Enterprise | Government grants | Ending balance | 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 involvementNilOther explanation：
Nil
9. Inventory
Does the company need to comply with the disclosure requirements of the real estate industryNo
(1) Category
In RMB
| Item | Ending balance | Opening Balance | ||||
| Book balance | Provision for inventory depreciation or contract performance cost impairment provision | Book value | Book balance | Provision for inventory depreciation or contract performance cost impairment provision | Book value | |
| Raw materials | 839,565.85 | 839,565.85 | 2,183,259.92 | 2,183,259.92 | ||
| Finished goods | 1,308,177.98 | 134,889.09 | 1,173,288.89 | 1,542,282.57 | 521,083.05 | 1,021,199.52 |
| Consigned processing materials | 2,113,002.17 | 2,113,002.17 | 2,873,870.86 | 2,873,870.86 | ||
| Total | 4,260,746.00 | 134,889.09 | 4,125,856.91 | 6,599,413.35 | 521,083.05 | 6,078,330.30 |
The Company shall comply with the disclosure requirement of “Guidelines on Industry Information Disclosure of Shenzhen StockExchange No. 11- Listed Company Engaged in Jewelry-related Business”
(2) Provision for inventory depreciation or contract performance cost impairment provision
In RMB
| Item | Opening Balance | Current increased | Current decreased | Ending balance | ||
| Accrual | Other | Switch back or charge-off | Other | |||
| Inventory | 521,083.05 | 386,193.96 | 134,889.09 | |||
| Total | 521,083.05 | 386,193.96 | 134,889.09 | |||
Nil
(3) Explanation on capitalization of borrowing costs at ending balance of inventory
Nil
(4) Description of the current amortization amount of contract performance costs
Nil
10. Contractual assets
In RMB
| Item | Ending balance | Opening Balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Total | 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 Ending balance | 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 | Ending balance | Opening Balance |
Important creditors’ investment/other creditors’ investment
In RMB
| Creditor's rights | Ending balance | Opening Balance | ||||||
| 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
In RMB
| Item | Ending balance | Opening Balance |
| Tax credit and input tax to be certified | 3,191,727.71 | 3,188,649.68 |
| Prepaid corporate income tax | 55,813.33 | 129,864.57 |
| Total | 3,247,541.04 | 3,318,514.25 |
Other explanation:
Nil
14. Creditors’ investment
In RMB
| Item | Ending balance | Opening Balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Total | 0.00 | 0.00 | 0.00 | 0.00 | ||
Important creditors’ investment
In RMB
| Creditor's rights | Ending balance | Opening Balance | ||||||
| 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, 2020 in the current | —— | —— | —— | —— |
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
period
Item
| Item | Opening Balance | Accrued interest | Change of fair value in the period | Ending balance | 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 | —— |
Important other creditors’ investment
In RMB
| Other creditors’ investment | Ending balance | Opening Balance | ||||||
| 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, 2020 in the current period | —— | —— | —— | —— |
Change of book balance of loss provision with amount has major changes in the period
□Applicable √Not applicable
Other explanation:
Nil
16. Long-term account receivable
(1) Long-term account receivable
In RMB
| Item | Ending balance | Opening Balance | 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 | -- | ||
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, 2020 in the current period | —— | —— | —— | —— |
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 transferNil
(3) Assets and liabilities resulted by long-term account receivable transfer and continues involvementNilOther explanationNil
17. Long-term equity investments
In RMB
| The invested entity | Opening Balance (Book value) | Changes in the period (+, -) | Ending balance (Book value) | Ending balance of impairment provision | |||||||
| Additional investment | Capital reduction | Investment gains recognized under equity | Other comprehensive income adjustmen | Other equity change | Cash dividend or profit announced to | Accrual of impairment provision | Other | ||||
| t | issued | ||||||||||
| 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 | Ending balance | Opening Balance |
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 reckoned into other comprehensive income | Cause of retained earnings transfer from other comprehensive income |
Other explanation:
Nil
19. Other non-current financial assets
In RMB
| Item | Ending balance | Opening Balance |
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 | Ending balance | Opening Balance |
| Fixed assets | 3,963,702.62 | 4,191,503.33 |
| Total | 3,963,702.62 | 4,191,503.33 |
(1) Fixed assets
In RMB
| Item | Housing and buildings | Machinery equipment | Means of transportation | Electronic equipment and other | Total |
| I. original book value: | |||||
| 1.Opening Balance | 2,959,824.00 | 1,477,691.03 | 958,593.21 | 230,136.11 | 5,626,244.35 |
| 2.Current increased | 4,455.45 | 4,455.45 | |||
| (1) Purchase | 4,455.45 | 4,455.45 | |||
| (2) construction in process transfer-in | |||||
| (3) the increase in business combination | |||||
| 3.Current decreased | 63,210.26 | 63,210.26 |
| (1) Disposal or scrap | 63,210.26 | 63,210.26 | |||
| 4.Ending balance | 2,959,824.00 | 1,414,480.77 | 958,593.21 | 234,591.56 | 5,567,489.54 |
| II. accumulated depreciation | |||||
| 1.Opening Balance | 466,172.28 | 217,943.02 | 586,406.73 | 164,218.99 | 1,434,741.02 |
| 2.Current increased | 66,596.04 | 65,896.12 | 57,806.12 | 9,814.67 | 200,112.95 |
| (1) Accrual | 66,596.04 | 65,896.12 | 57,806.12 | 9,814.67 | 200,112.95 |
| 3.Current decreased | 31,067.05 | 31,067.05 | |||
| (1) Disposal or scrap | 31,067.05 | 31,067.05 | |||
| 4.Ending balance | 532,768.32 | 252,772.09 | 644,212.85 | 174,033.66 | 1,603,786.92 |
| III. Impairment provision | |||||
| 1.Opening Balance | |||||
| 2.Current increased | |||||
| (1) Accrual | |||||
| 3.Current decreased | |||||
| (1) Disposal or scrap | |||||
| 4.Ending balance | |||||
| IV. Book value | |||||
| 1.Ending book value | 2,427,055.68 | 1,161,708.68 | 314,380.36 | 60,557.90 | 3,963,702.62 |
| 2.Opening book value | 2,493,651.72 | 1,259,748.01 | 372,186.48 | 65,917.12 | 4,191,503.33 |
(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 7-20F 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 | Ending balance | Opening Balance |
Other explanation
Nil
22. Construction in progress
In RMB
| Item | Ending balance | Opening Balance |
(1) Construction in progress
In RMB
| Item | Ending balance | Opening Balance | ||||
| 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 | Ending balance | Opening Balance | ||||
| Book balance | Impairment | Book value | Book balance | Impairment | Book value | |
| provision | provision | |||||
| Total | 0.00 | 0.00 | 0.00 | 0.00 |
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.Opening Balance | 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.Ending balance | 5,271,000.00 | 5,271,000.00 | |||
| II. accumulated depreciation | |||||
| 1.Opening Balance | 4,518,000.00 | 4,518,000.00 | |||
| 2.Current increased | 376,500.00 | 376,500.00 | |||
| (1) Accrual | 376,500.00 | 376,500.00 | |||
| 3.Current decreased | |||||
| (1) Disposal | |||||
| 4.Ending balance | 4,894,500.00 | 4,894,500.00 | |||
| III. Impairment provision | |||||
| 1.Opening Balance | |||||
| 2.Current increased | |||||
| (1) Accrual | |||||
| 3.Current decreased | |||||
| (1) Disposal | |||||
| 4.Ending balance | |||||
| IV. Book value | |||||
| 1.Ending book value | 376,500.00 | 376,500.00 | |||
| 2.Opening book value | 753,000.00 | 753,000.00 |
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 | Opening Balance | Current increased | Current decreased | Ending balance | ||||
| 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 | 0.00 | |
Other explanationNil
28. Goodwill
(1) Original book value of goodwill
In RMB
| The invested entity or items | Opening Balance | Current increased | Current decreased | Ending balance | ||
| 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 | Opening Balance | Current increased | Current decreased | Ending balance | ||
| 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 goodwillNilOther explanationNil
29. Long-term expenses to be apportioned
In RMB
| Item | Opening Balance | Current increased | Amortized in the Period | Other decrease | Ending balance |
| Total | 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 | Ending balance | Opening Balance | ||
| Deductible temporary difference | Deferred income tax assets | Deductible temporary difference | Deferred income tax assets | |
| Impairment provision of | 980,142.35 | 3,920,569.42 | 1,042,582.16 | 4,170,328.65 |
| assets | ||||
| Total | 980,142.35 | 3,920,569.42 | 1,042,582.16 | 4,170,328.65 |
(2) Deferred income tax liabilities without offset
In RMB
| Item | Ending balance | Opening Balance | ||
| Taxable temporary differences | Deferred income tax liabilities | Taxable temporary differences | Deferred income tax liabilities | |
| Total | 0.00 | 0.00 | 0.00 | 0.00 |
(3) Deferred income tax assets and deferred income tax liabilities listed after off-set
In RMB
| Item | Trade-off between the deferred income tax assets and liabilities | Ending balance of deferred income tax assets or liabilities after off-set | Trade-off between the deferred income tax assets and liabilities at period-begin | Opening balance of deferred income tax assets or liabilities after off-set |
| Deferred income tax assets | 980,142.35 | 1,042,582.16 |
(4) Details of unrecognized deferred income tax assets
In RMB
| Item | Ending balance | Opening Balance |
| Total | 0.00 | 0.00 |
(5) Deductible losses of un-recognized deferred income tax assets expired on the 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
In RMB
| Item | Ending balance | Opening Balance | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
| Prepay for house purchase | 400,000.00 | 400,000.00 | 400,000.00 | 400,000.00 | ||
| Total | 400,000.00 | 400,000.00 | 400,000.00 | 400,000.00 | ||
Other explanation:
As of June 30, 2020, the Housing and Construction Bureau of Luohu District, Shenzhen City has not delivered houses for enterprisetalents in Luohu District.
32. Short-term loans
(1) Category
In RMB
| Item | Ending balance | Opening Balance |
Explanation on short-term loans category:
Nil
(2) Overdue outstanding short-term loans
Total 0.00 Yuan overdue outstanding short-term loans at period-end, including the followed significant amount:
In RMB
| Borrower | Ending balance | Lending rate | Overdue time | Overdue rate |
| Total | 0.00 | -- | -- | -- |
Other explanation:
Nil
33. Trading financial liability
In RMB
| Item | Ending balance | Opening Balance |
| Including: | ||
| Including: |
Other explanation:
Nil
34. Derivative financial liability
In RMB
| Item | Ending balance | Opening Balance |
Other explanation:
Nil
35. Notes payable
In RMB
| Category | Ending balance | Opening Balance |
Notes expired at period-end without paid was 0.00 Yuan.
36. Account payable
(1) Account payable
In RMB
| Item | Ending balance | Opening Balance |
| Within one year (one year included) | 8,103,743.89 | 9,575,684.30 |
| 1-2 years (2 years included) | 487,016.93 | 487,016.93 |
| 2-3 years (3 years included) | 7,099.50 | 7,099.50 |
| 3-4 years (4 years included) | 118,380.50 | 118,380.50 |
| 4-5 years (5 years included) | 2,366.00 | 2,366.00 |
| Over 5 years | 838.00 | 838.00 |
| Total | 8,719,444.82 | 10,191,385.23 |
(2) Important account payable with account age over one year
In RMB
| Item | Ending balance | 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 | Aging | Ratio in total accounts payable (%) | Nature | |
| Tianjin Jianya Electronic | Non-related party | 2,777,584.30 | Within 1 year | 31.86 | Goods payment | |
| Technology Co., Ltd. | |||||
| Fujian Hengsheng Jewelry Co., Ltd. | Non-related party | 1,276,993.06 | Within 1 year | 14.65 | Goods payment |
| Baodao Vehicle Industry Group Co., Ltd. | Non-related party | 1,262,115.24 | Within 1 year | 14.47 | Goods payment |
| Changzhou Youyi Vehicle Technology Co., Ltd. | Non-related party | 747,661.00 | Within 1 year | 8.57 | Goods payment |
| Guangxi Shengdong New Energy Technology Co., Ltd. | Non-related party | 649,600.00 | Within 1 year | 7.45 | Goods payment |
| Total | 6,713,953.60 | 77.00 |
37. Account received in advance
(1) Account received in advance
In RMB
| Item | Ending balance | Opening Balance |
| Total | 0.00 |
(2) Account received in advance with over one year book age
In RMB
| Item | Ending balance | Reasons of un-paid or carry-over |
| Total | 0.00 | -- |
Other explanation：
Nil
38. Contract liability
In RMB
| Item | Ending balance | Opening Balance |
| Rent received in advance | 6,982,666.68 | |
| Advance payment | 1,042,433.85 | 1,539,782.12 |
| Total | 8,025,100.53 | 1,539,782.12 |
Book value has major changes in the period and causes
In RMB
| Item | Amount changes | Causes |
| Shenzhen Renhui Wooden Products Co., Ltd. | 6,556,000.00 | Rent in advance according to the contract |
| Total | 6,556,000.00 | —— |
39. Wage payable
(1) Wage payable
In RMB
| Item | Opening Balance | Current increased | Current decreased | Ending balance |
| I. Short-term compensation | 599,962.73 | 2,948,339.49 | 2,965,380.96 | 582,921.26 |
| II. Post-employment benefit-Defined contribution plan | 96,178.27 | 96,178.27 | ||
| Total | 599,962.73 | 3,044,517.76 | 3,061,559.23 | 582,921.26 |
(2) Short-term compensation
In RMB
| Item | Opening Balance | Current increased | Current decreased | Ending balance |
| 1. Wages, bonus, allowances and subsidy | 593,459.94 | 2,651,491.52 | 2,669,044.65 | 575,906.81 |
| 3. Social insurance | 64,350.87 | 64,350.87 | ||
| Including: Medical insurance | 56,780.88 | 56,780.88 | ||
| Work injury insurance | 1,396.27 | 1,396.27 | ||
| Maternity insurance | 6,173.72 | 6,173.72 | ||
| 4. Housing accumulation fund | 193,066.56 | 192,406.56 | 660.00 | |
| 5. Labor union expenditure and personnel education expense | 6,502.79 | 39,430.54 | 39,578.88 | 6,354.45 |
| Total | 599,962.73 | 2,948,339.49 | 2,965,380.96 | 582,921.26 |
(3) Defined contribution plan
In RMB
| Item | Opening Balance | Current increased | Current decreased | Ending balance |
| 1. Basic endowment | 95,029.87 | 95,029.87 |
| insurance | ||||
| 2. Unemployment insurance | 1,148.40 | 1,148.40 | ||
| Total | 96,178.27 | 96,178.27 |
Other explanation:
At the end of the period, there was no arrears in employee compensation.
40. Taxes payable
In RMB
| Item | Ending balance | Opening Balance |
| Value added tax | 680,747.23 | 740,374.76 |
| Corporate income tax | 110,321.60 | 14,285.50 |
| Individual income tax | 22,317.11 | 21,755.56 |
| Tax for maintaining and building cities | 2,001.21 | 925.10 |
| Educational surtax | 1,392.64 | 623.21 |
| Stamp tax | 7,146.98 | 7,270.30 |
| Total | 823,926.77 | 785,234.43 |
Other explanation:
Nil
41. Other account payable
In RMB
| Item | Ending balance | Opening Balance |
| Other account payable | 36,755,216.28 | 38,175,654.98 |
| Total | 36,755,216.28 | 38,175,654.98 |
(1) Interest payable
In RMB
| Item | Ending balance | Opening Balance |
Important interest overdue without paid:
In RMB
| Borrower | Amount overdue | Overdue reason |
| Total | 0.00 | -- |
Other explanation:
Nil
(2) Dividend payable
In RMB
| Item | Ending balance | Opening Balance |
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 | Ending balance | Opening Balance |
| Custodian and common benefit debts | 18,707,866.44 | 18,764,512.80 |
| Intercourse funds | 6,500,000.00 | 6,500,000.00 |
| Warranty and guarantee money | 11,077,458.84 | 11,291,325.00 |
| Other payable service charge (intermediary services included) | 255,083.95 | 876,599.88 |
| Other | 214,807.05 | 743,217.30 |
| Total | 36,755,216.28 | 38,175,654.98 |
2) Significant other payable with over one year age
In RMB
| Item | Ending balance | Reasons of un-paid or carry-over |
| Custodian and common benefit debts | 18,707,866.44 | - |
| Warranty and guarantee money | 4,000,000.00 | Performance bond |
| Shenzhen Guosheng Energy Investment Development Co., Ltd. | 6,500,000.00 | Interest-free loans |
| Total | 29,207,866.44 | -- |
Other explanation
Top 5 other receivables at period-end
| Enterprise | Relationship with the company | Amount | Aging | Ratio in total other receivables (%) | Nature | |
| Custodian and common benefit debts | Non-related party | 18,707,866.44 | Over 5 years | 50.90 | Obligatory right of common benefit | |
| Shenzhen Guosheng Energy Investment Development Co., Ltd. | related party | 6,500,000.00 | Over 5 years | 17.69 | Interest-free loans | |
| Wansheng Industrial Holdings | Non-related party | 2,000,000.00 | Within 4 years | 5.44 | Cash deposit | |
| (Shenzhen) Co., Ltd. | |||||
| Fuzhou Zuanjinsen Jewelry Co., Ltd. | related party | 2,000,000.00 | Within 1 year | 5.44 | Cash deposit |
| Shenzhen Bei’er High-tech Enterprise (Limited Partnership) | Non-related party | 1,500,000.00 | Within 4 years | 4.08 | Cash deposit |
| Total | 30,707,866.44 | 83.55 |
42. Liability held for sale
In RMB
| Item | Ending balance | Opening Balance |
Other explanation:
Nil
43. Non-current liabilities due within one year
In RMB
| Item | Ending balance | Opening Balance |
Other explanation:
Nil
44. Other current liabilities
In RMB
| Item | Ending balance | Opening Balance |
Changes of short-term bond payable:
In RMB
| Bond | Face value | Release date | Bond period | Issuing amount | Opening balance | Issued in the Period | Accrual interest by face value | Premium/discount amortization | Paid in the Period | Ending balance | |
| Total | -- | -- | -- | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Other explanation:
Nil
45. Long-term loans
(1) Category
In RMB
| Item | Ending balance | Opening Balance |
Explanation on category of long-term loans:
NilOther explanation, including interest rate section:
Nil
46. Bonds payable
(1) Bonds payable
In RMB
| Item | Ending balance | Opening Balance |
(2) Changes of bonds payable (not including the other financial instrument of 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 | Ending balance | |
| Total | -- | -- | -- | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
(3) Convertible conditions and time for shares transfer for the convertible bonds
Nil
(4) Other financial instruments classify as financial liability
Basic information of the outstanding preferred stock and perpetual capital securities at period-endNilChanges of outstanding preferred stock and perpetual capital securities at period-end
In RMB
| Outstanding financial instrument | Period-begin | 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 | 0.00 |
Basis for financial liability classification for other financial instrumentNilOther explanation
Nil
47. Lease liability
In RMB
| Item | Ending balance | Opening Balance |
Other explanationNil
48. Long-term account payable
In RMB
| Item | Ending balance | Opening Balance |
(1) By nature
In RMB
| Item | Ending balance | Opening Balance |
Other explanation:
Nil
(2) Special payable
In RMB
| Item | Opening Balance | Current increased | Current decreased | Ending balance | Causes of formation |
| Total | 0.00 | 0.00 | -- |
Other explanation:
Nil
49. Long-term wages payable
(1) Long-term wages payable
In RMB
| Item | Ending balance | Opening Balance |
(2) Changes of defined benefit plans
Present value of the defined benefit plans:
In RMB
| Item | Current 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
In RMB
| Item | Ending balance | Opening Balance | Causes of formation |
Other explanation, including relevant important assumptions and estimation:
Nil
51. Deferred income
In RMB
| Item | Opening Balance | Current increased | Current decreased | Ending balance | Causes of formation |
| Total | 0.00 | 0.00 | -- |
Item with government grants involved:
In RMB
| Liability | Opening Balance | New grants in the Period | Amount reckoned in non-operation revenue | Amount reckoned in other income | Cost reduction in the period | Other changes | Ending balance | Assets-related/income related |
Other explanation:
Nil
52. Other non-current liabilities
In RMB
| Item | Ending balance | Opening Balance |
Other explanation:
Nil
53. Share capital
In RMB
| Opening Balance | Changes in the period (+, -) | Ending balance | |||||
| 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 | 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 | Opening Balance | Current increased | Current decreased | Ending balance |
| 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 | Opening Balance | Current increased | Current decreased | Ending balance |
| Total | 0.00 | 0.00 |
Other explanation, including changes and reasons for changes:
Nil
57. Other comprehensive income
In RMB
| Item | Opening Balance | Current Period | Ending balance | |||||
| Account before income tax in the period | Less: written in other comprehensive income in previous period and carried forward to gains and losses in current period | Less: written in other comprehensive income in previous period and carried forward to retained earnings in current period | Less: income tax expense | Belong to parent company after tax | Belong to minority shareholders after tax | |||
| Total other comprehensive income | 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 | Opening Balance | Current increased | Current decreased | Ending balance |
| Total | 0.00 | 0.00 |
Other explanation, including changes and reasons for changes:
Nil
59. Surplus public reserve
In RMB
| Item | Opening Balance | Current increased | Current decreased | Ending balance |
| 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 | -1,204,736,075.56 | -1,197,549,169.92 |
| Retained profit at period-begin after adjustment | -1,204,736,075.56 | -1,197,549,169.92 |
| Add: net profit attributable to shareholders of parent company for this period | 2,797,643.50 | -798,946.17 |
| Retained profit at period-end | -1,201,938,432.06 | -1,198,348,116.09 |
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 | 36,004,701.56 | 32,454,948.30 | 33,834,135.17 | 32,088,349.25 |
| Other business | 6,651,653.65 | 3,645,817.35 | 4,440,297.85 | 3,241,165.72 |
| Total | 42,656,355.21 | 36,100,765.65 | 38,274,433.02 | 35,329,514.97 |
Information relating to revenue:
In RMB
| Category | Branch 1 | Branch 2 | Total | |
| Product Types | 25,097,387.76 | 17,558,967.45 | 42,656,355.21 | |
| Including: | ||||
| Jewelry gold | 25,097,387.76 | 25,097,387.76 | ||
| Bicycle lithium battery materials and others | 17,558,967.45 | 17,558,967.45 | ||
| Including: | ||||
| Including: | ||||
| Including: | ||||
| Including: | ||||
| Including: | ||||
| Including: |
Information relating to performance obligations:
NilInformation related to the transaction price apportioned to the remaining performance obligations:
The amount of income corresponding to the performance obligations that have been signed at the end of this reporting period buthave not yet been fulfilled or have not done with fulfillment is 0.00 yuan, among them, yuan of revenue is expected to be recognizedin YEAR, yuan of revenue is expected to be recognized in YEAR, and yuan of revenue is expected to be recognized in YEAR.Other explanation
62. Tax and extras
In RMB
| Item | Current Period | Last Period |
| Tax for maintaining and building cities | 432.52 | 10,738.55 |
| Educational surtax | 308.94 | 8,298.22 |
| Stamp tax | 19,157.58 | 17,551.00 |
| Total | 19,899.04 | 36,587.77 |
Other explanation:
Nil
63. Sales expenses
In RMB
| Item | Current Period | Last Period |
| Salary and Social Security Provident Fund | 654,651.76 | 946,503.40 |
| Online sales fee | 420,049.56 | 246,947.49 |
| Other | 403,677.46 | 682,272.72 |
| Total | 1,478,378.78 | 1,875,723.61 |
Other explanation:
Nil
64. Administrative expenses
In RMB
| Item | Current Period | Last Period |
| Salary and Social Security Provident Fund | 1,474,643.26 | 1,941,131.64 |
| Other | 205,076.18 | 418,252.20 |
| Total | 1,679,719.44 | 2,359,383.84 |
Other explanation:
Nil
65. R&D expenses
In RMB
| Item | Current Period | Last Period |
| Salary and Social Security Provident Fund | 753,742.20 | |
| Total | 753,742.20 | 0.00 |
Other explanation:
Nil
66. Financial expenses
In RMB
| Item | Current Period | Last Period |
| Interest income | -31,929.72 | -71,134.40 |
| Commission charge etc. | 12,669.33 | 10,681.41 |
| Total | -19,260.39 | -60,452.99 |
Other explanation:
Nil
67. Other income
In RMB
| Sources | Current Period | Last Period |
| Tax handling fee | 10,105.77 |
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 | 849.07 | 2,237.42 |
| Bad debt losses of accounts receivable | 169,538.78 | -19,717.24 |
| Total | 170,387.85 | -17,479.82 |
Other explanation:
Nil
72. Losses of devaluation of asset
In RMB
| Item | Current Period | Last Period |
| II. Loss of inventory depreciation and loss | 40,616.29 |
| of contract performance cost impairment | ||
| Total | 40,616.29 |
Other explanation:
73. Income from assets disposal
In RMB
| Sources | Current Period | Last Period |
| Fixed asset disposal | 24,936.44 |
74. Non-operating income
In RMB
| Item | Current Period | Last Period | Amount reckoned in current non-recurring gains/losses |
| Other | 744,788.91 | 148,627.00 | 744,788.91 |
| Total | 744,788.91 | 148,627.00 | 744,788.91 |
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:
75. Non-operating expenses
In RMB
| Item | Current Period | Last Period | Amount reckoned in current non-recurring gains/losses |
| Other | 2,676.80 | 50.00 | 2,676.80 |
| Total | 2,676.80 | 50.00 | 2,676.80 |
Other explanation:
Nil
76. Income tax expenses
(1) Income tax expenses
In RMB
| Item | Current Period | Last Period |
| Current income tax expense | 107,598.95 | |
| Deferred income tax expense | 62,439.81 | -4,152.36 |
| Total | 170,038.76 | -4,152.36 |
(2) Adjustment on accounting profit and income tax expenses
In RMB
| Item | Current Period |
| Total Profit | 3,590,652.66 |
| Income tax measured by statutory/applicable tax rate | 897,663.17 |
| The impact of applying different tax rates to subsidiaries | -293,865.24 |
| Impact on deductible temporary differences or losses deductible which was un-recognized as deferred income tax assets | -433,759.17 |
| Income tax expenses | 170,038.76 |
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. | 2,356,618.56 | 2,583,334.70 |
| Deposit, security deposit, advance payment received | 10,556,000.00 | |
| Other intercourse funds | 2,094,036.84 | 1,323,261.33 |
| Total | 15,006,655.40 | 3,906,596.03 |
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 |
| Refund of deposit | 4,000,000.00 | |
| Payment of period expenses, operating expenses and common debts, etc. | 6,968,482.31 | 5,809,899.76 |
| Total | 10,968,482.31 | 5,809,899.76 |
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 | 2,016,600.82 | |
| Total | 2,016,600.82 |
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 | 0.00 | 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 | 3,420,613.90 | -1,090,458.35 |
| Add: Assets impairment provision | -170,387.85 | -23,136.47 |
| Depreciation of fixed assets, consumption of oil assets and depreciation of productive biology assets | 200,112.95 | 186,131.92 |
| Amortization of intangible assets | 376,500.00 | 376,500.00 |
| Loss from disposal of fixed assets, intangible assets and other long-term assets (income is listed with “-”) | -24,936.44 | |
| Decrease of deferred income tax asset (increase is listed with “-”) | 62,439.81 | -4,152.36 |
| Decrease of inventory (increase is listed with “-”) | 1,952,473.39 | -693,780.13 |
| Decrease of operating receivable accounts (increase is listed with “-”) | -8,239,522.04 | -2,006,581.24 |
| Increase of operating payable accounts (decrease is listed with “-”) | 3,773,102.22 | -5,645,780.11 |
| Net cash flow from operation activities | 1,350,395.94 | -8,901,256.74 |
| 2. Material investment and financing not involved in cash flow | -- | -- |
| 3. Net change of cash and cash equivalents: | -- | -- |
| Add: Ending balance of cash equivalents | 12,214,263.85 | 7,587,416.18 |
| Less: Opening balance of cash equivalents | 6,074,367.91 | 16,488,886.26 |
| Net increased amount of cash and cash equivalent | 6,139,895.94 | -8,901,470.08 |
(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:
Nil
(4) Constitution of cash and cash equivalent
In RMB
| Item | Ending balance | Opening Balance |
| Including: Cash on hand | 108,773.66 | 89,313.66 |
| Bank deposit available for payment at any time | 12,105,490.19 | 5,979,003.60 |
| Other monetary fund available for payment at any time | 6,050.65 | |
| II. Cash equivalents | 12,214,263.85 | 6,074,367.91 |
| Ⅲ. Balance of cash and cash equivalent at period-end | 12,214,263.85 | 6,074,367.91 |
Other explanation:
Nil
80. Notes of changes of owners’ equity
Explain the name and adjusted amount in “Other” at end of last year:
Nil
81. Assets with ownership or use right restricted
In RMB
| Item | Ending book value | Restriction reasons |
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
NilVIII. 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 | Equity ratio obtained in | Basis of combined | Combination | Standard to determine the | Income of the combined | Net profit of the combined | Income of the combined | Net profit of the combined |
| party | combination | under the same control | date | combination date | party from period-begin of combination to the combination date | party from period-begin of combination to the combination date | party during the comparison period | 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 and Gold Co., Ltd jointly established a Shenzhen Xinsen Jewelryand Gold Supply Chain Co., ltd. of which, the Company holds 65% equity, while 35% equity held by Shenzhen Zuankinson Jewelryand Gold Co., Ltd, the enterprise was included in the consolidate scope since establishment.
6. Other
Nil
IX. Equity in other entity
1. Equity in subsidiary
(1) Constitute of enterprise group
| Subsidiary | Main operation place | Registered place | Business nature | Share-holding ratio | Acquired way | |
| Directly | Indirectly | |||||
| Shenzhen Emmelle Industrial Co., Ltd. | Shenzhen | Shenzhen | 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% | 109,033.70 | 2,063,280.92 | |
| Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd. | 35.00% | 513,936.70 | 7,606,876.27 |
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
| Subsidiary | Ending balance | Opening Balance | ||||||||||
| 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. | 15,124,798.09 | 1,291,409.58 | 16,416,207.67 | 9,538,604.61 | 0.00 | 9,538,604.61 | 15,468,811.90 | 1,418,415.71 | 16,887,227.61 | 10,373,070.21 | 0.00 | 10,373,070.21 |
| Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd. | 24,967,893.46 | 1,960.98 | 24,969,854.44 | 3,235,922.24 | 0.00 | 3,235,922.24 | 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 | 1,638,684.75 | 363,445.66 | 363,445.66 | -2,879,621.36 | 13,212,224.3 | -971,707.26 | -971,707.26 | -4,193,347.24 |
| Emmelle Industrial Co., Ltd. | 4 | |||||||
| Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd. | 25,097,387.76 | 1,468,390.57 | 1,468,390.57 | -9,359,387.83 |
Other explanation:
(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
(2) Impact on minority’s interest and owners’ equity attributable to parent company
In RMB
Other explanation
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:
Basis of the voting rights with 20% below but with major influence, or without major influence but with over 20% (20% included)voting rights hold:
(2) Main financial information of the important joint venture
In RMB
| Ending balance/Current Period | Opening Balance/Last Period | |
Other explanation
(3) Main financial information of the important associated enterprise
In RMB
| Ending balance/Current Period | Opening Balance/Last Period | |
Other explanation
(4) Financial summary for un-important joint venture or associated enterprise
In RMB
| Ending balance/Current Period | Opening Balance/Last Period | |
| Joint venture： | -- | -- |
| Total numbers measured by share-holding ratio | -- | -- |
| Associated enterprise： | -- | -- |
| Total numbers measured by share-holding ratio | -- | -- |
Other explanation
(5) Assets transfer ability has major restriction from joint venture or associated enterprise
(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
(7) Un-confirmed commitment with investment concerned with joint venture
(8) Contingent liability with investment concerned with joint venture or associated enterprise
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:
If the co-runs entity is the separate entity, basis of the co-runs classificationOther explanation
5. Equity in structuring entity that excluding in the consolidated financial statementRelevant explanation
6. Other
X. Risk related with financial instrumentThe major financial instruments of the Company consist of monetary fund, account receivable, other accountreceivable, account payable and other account payable, etc. details of these financial instruments are disclosed inthe relevant notes. Risks relating to these financial instruments and risk management policies adopted by theCompany to minimize these risks are detailed as follows. Management of the Company manages and monitors therisk exposures, to make sure they are under control.
1. Risk management targets and policies
The objectives of the Company’s risk management is to balance the risk and income, reduce the negative riskimpact of operating performance to the lowest level, maximize the interests of shareholders and other equityinvestors. Based on these objectives, the Company has established risk management policies to identify andanalyze the risks faced by the Company, set adequate risk acceptable level and designed relevant internal controlsystem to monitor the level of risks. The Company regularly reviews these policies and related internal controlsystem to adapt to market development and change of operating activities of the Company. The major risks arisingfrom the Company’s financial instruments are credit risk and liquidity risk.
(1) Credit risk
Credit risk represents the risk of financial loss suffered by a party to a financial instrument due to failure ofperformance obligation of another party.Credit risk of the Company is managed by category. Credit risk mainly arises from bank deposits and trade
receivables. 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 30June 2020, the gearing ratio of the Company was 73.71% (31 December 2019: 81.76%)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 pointNil
7. Changes of valuation technique in the Period
Nil
8. Financial assets and liability not measured by fair value
Nil
9. Other
NilXII. Related party and related transactions
1. Parent company of the enterprise
| Parent company | Registered place | Business nature | Registered capital | Share-holding ratio on the enterprise for parent company | Voting right ratio on the enterprise |
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 explanation
4. Other related party
| Other related party | Relationship with the Company |
| Shenzhen Guosheng Energy Investment Development Co., Ltd. | The first majority shareholder |
| Shenzhen Zuanjinsen Jewelry Co., Ltd. | Subsidiary Xinsen Jewelry Shareholder |
| Fuzhou Zuanjinsen Jewelry Co., Ltd. | Subsidiary Xinsen Jewelry Shareholder |
Other explanation
11.52 percent shares of the Company are held by Shenzhen Guosheng Energy Investment Development Co., Ltd.Shenzhen Zuankinson Jewelry and Gold Co., Ltd. holds 35% equity of Shenzhen Xinsen Jewelry and Gold Supply Chain Co., Ltd.,a subsidiary of the company.
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 |
Goods sold/labor service providing
In RMB
| Related party | Transaction content | Current Period | Last Period |
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 | 728,400.00 | 818,870.00 |
(8) Other related transactions
The Company disclosed the "Announcement on the Estimated Daily Related Transactions" (Announcement No.: 2019-022) onDecember 17, 2019. According to the needs of business development, Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd., aholding subsidiary of the Company, planned to purchase raw materials and sell goods to Shenzhen Zuankinson Jewelry and GoldCo., Ltd., it was estimated that the total amount of daily related transactions in the next 12 months would not exceed 10 million yuan(a single transaction amount would not exceed 3 million yuan). The total amount of related transactions between the company'ssubsidiary and Shenzhen Zuankinson Jewelry and Gold Co., Ltd. in 2019 was 2.75 million yuan, and there were no relatedtransactions during the reporting period. As of the reporting period, the total amount of the related transactions quota was 2.75million yuan, which did not exceed the announced quota.
6. Receivable/payable items of related parties
(1) Receivable item
In RMB
| Item | Related party | Ending balance | Opening Balance | ||
| Book balance | Bad debt provision | Book balance | Bad debt provision | ||
(2) Payable item
In RMB
| Item | Related party | Book Ending balance | Book Opening Balance |
| Other account payable | Shenzhen Guosheng Energy Investment Development Co., Ltd. | 6,500,000.00 | 6,500,000.00 |
| Other account payable | Fuzhou Zuanjinsen Jewelry Co., Ltd. | 2,000,000.00 | 0 |
7. Commitments of related party
Nil
8. Other
NilXIII. 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
NilXIV. 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
NilXV. Events after balance sheet date
1. Important non-adjustment items
In RMB
| Item | Content | Impact on financial status and operation results | Reasons on un-able to estimated the impact number |
2. Profit distribution
In RMB
3. Sales return
Nil
4. Other events after balance sheet date
Nil
XVI. Other important events
1. Previous accounting errors collection
(1) Retrospective restatement
In RMB
| 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
The reporting division of the company is a business unit that provides different products or services. Since various businesses requiredifferent technologies and market strategies, the company respectively and independently manages the production and operationactivities of each reporting division and evaluates its operating results separately to determine the allocation of resources to it andevaluate its performance. The company has 2 reporting divisions, namely:
—Group company business division.—Jewelry gold business division.Assets are allocated according to the operation of the divisions and the location of the assets, and liabilities are allocated according tothe operation of the divisions. The company has established a special jewelry gold business subsidiary for this purpose.Accounting of income, costs, and expenses
(2) Financial information for reportable segment
In RMB
| Item | Jewelry Gold Business Division | Bicycle lithium battery materials and other business segments | Offset between segments | Total |
| Main business income | 25,097,387.76 | 17,558,967.45 | 42,656,355.21 | |
| Main business cost | 22,650,522.20 | 13,450,243.45 | 36,100,765.65 | |
| The total profit | 1,575,989.52 | 2,014,663.14 | 3,590,652.66 | |
| Income tax expense | 107,598.95 | 62,439.81 | 170,038.76 | |
| Net profit | 1,468,390.57 | 1,952,223.33 | 3,420,613.90 | |
| Total assets | 24,969,854.44 | 74,871,717.41 | 25,347,765.20 | 74,493,806.65 |
| Total liabilities | 3,235,922.24 | 64,008,072.89 | 12,337,385.47 | 54,906,609.66 |
| Shareholders' equity Total | 21,733,932.20 | 10,863,644.52 | 13,010,379.73 | 19,587,196.99 |
(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 | Ending balance | Opening Balance | ||||||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
| Amount | Ratio | Amount | Accrual ratio | Amount | Ratio | Amount | Accrual ratio | |||
| Account receivable with bad debt provision accrual by single basis | 3,542,603.75 | 11.43% | 1,890,781.13 | 53.37% | 1,651,822.62 | 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 | 3,542,603.75 | 11.43% | 1,890,781.13 | 53.37% | 1,651,822.62 | 1,939,478.00 | 5.54% | 581,843.40 | 30.00% | 1,357,634.60 |
| Account receivable with bad debt provision accrual by portfolio | 27,447,753.75 | 88.57% | 82,343.26 | 0.30% | 27,365,410.49 | 28,045,114.82 | 80.08% | 84,135.34 | 0.30% | 27,960,979.48 |
| Including: | ||||||||||
| Aging analysis method | 27,447,753.75 | 88.57% | 82,343.26 | 0.30% | 27,365,410.49 | 28,045,114.82 | 80.08% | 84,135.34 | 0.30% | 27,960,979.48 |
| Total | 30,990,357.50 | 100.00% | 1,973,124.39 | 6.37% | 29,017,233.11 | 35,020,196.57 | 100.00% | 2,176,659.87 | 6.22% | 32,843,536.70 |
Bad debt provision accrual on single basis: The individual amount is not significant
In RMB
| Name | Ending balance | |||
| Book balance | Bad debt provision | Accrual ratio | Accrual causes | |
| Guangdong Xinlingjia New Energy Co., Ltd. | 1,149,000.00 | 380,100.00 | 33.08% | Expected to be difficult to recover |
| Shenzhen Jiahaosong Technology Co., Ltd. | 2,393,603.75 | 1,510,681.13 | 63.11% | Expected to be difficult to recover |
| Total | 3,542,603.75 | 1,890,781.13 | -- | -- |
Bad debt provision accrual on single basis:
In RMB
| Name | Ending balance | |||
| Book balance | Bad debt provision | Accrual ratio | Accrual causes | |
Bad debt provision accrual on portfolio: Aging analysis
In RMB
| Name | Ending balance | ||
| Book balance | Bad debt provision | Accrual ratio | |
| Within one year (one year included) | 23,493,804.70 | 70,481.41 | 0.30% |
| 1-2 years (two years included) | 3,953,949.05 | 11,861.85 | 0.30% |
| Total | 27,447,753.75 | 82,343.26 | -- |
Explanation on portfolio basis:
NilBad debt provision accrual on portfolio:
In RMB
| Name | Ending balance | ||
| 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, pleaserefer to the disclosure of other account receivable to disclose related information about bad-debt provisions:
□Applicable √Not applicable
By account age
In RMB
| Account age | Ending balance |
| Within one year (one year included) | 23,493,804.70 |
| Within one year | 23,493,804.70 |
| 1-2 years | 7,496,552.80 |
| Total | 30,990,357.50 |
(2) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
In RMB
| Category | Opening Balance | Current changes | Ending balance | |||
| Accrual | Collected or reversal | Charge-off | Other | |||
| Bad debt provision for accounts receivable | 2,176,659.87 | 203,535.48 | 1,973,124.39 | |||
| Total | 2,176,659.87 | 203,535.48 | 1,973,124.39 | |||
Including important amount of bad debt provision collected or reversal in the period:
In RMB
| Enterprise | Amount collected or reversal | Collection way |
| Shenzhen Boyineng Technology Co., Ltd. | 201,743.40 | Bank debt collection |
| Total | 201,743.40 | -- |
At the end of the previous year, for those estimated to be difficult to recover, 30% bad debt provision was accrued based on theinsignificant single amount and a separate provision for bad debts. During this year, the company collected payment for several timesand by various methods. After the impairment test, the possibility of recoverable was greatly increased, so the provision for bad debtsthat had been accrued was reversed.
(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) |
Explanation on account receivable charge-off:
(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. | 12,758,950.90 | 41.17% | 38,276.85 |
| Zhengzhou Guiguan Tech. Trade. Co., Ltd | 5,218,756.80 | 16.84% | 15,656.27 |
| Shenzhen Weiterui New Energy Technology Co., Ltd. | 3,424,471.05 | 11.05% | 10,273.41 |
| Jinan Yuxintai Sales Co., Ltd. | 2,935,693.00 | 9.47% | 8,807.08 |
| Shenzhen Jiahaosong Technology Co., Ltd. | 2,393,603.75 | 7.73% | 1,510,681.13 |
| Total | 26,731,475.50 | 86.26% |
(5) Account receivable derecognition due to transfer of financial assets
(6) Assets and liability resulted by account receivable transfer and continuous involvementOther explanation：
2. Other account receivable
In RMB
| Item | Ending balance | Opening Balance |
| Other account receivable | 124,488.41 | 485,062.44 |
| Total | 124,488.41 | 485,062.44 |
(1) Interest receivable
1) Category
In RMB
| Item | Ending balance | Opening Balance |
2) Important overdue interest
| Borrower | Ending balance | 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) | Ending balance | Opening Balance |
2) Important dividend receivable with over one year aged
In RMB
| Item (or invested company) | Ending balance | 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：
(3) Other account receivable
1) By nature
In RMB
| Account nature | Book Ending balance | Book Opening Balance |
| Deposit or margin | 71,163.00 | 484,822.00 |
| Payment for equipment | 11,400.00 | 11,400.00 |
| Reserve | 54,000.00 | 2,000.00 |
| Total | 136,563.00 | 498,222.00 |
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, 2020 | 13,159.56 | 13,159.56 | ||
| Balance on January 1, 2020 in the current period | —— | —— | —— | —— |
| Current reversal | 1,084.97 | 1,084.97 | ||
| Balance on June 30, 2020 | 12,074.59 | 12,074.59 |
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 | Ending balance |
| Within one year (one year included) | 124,663.00 |
| Within one year | 124,663.00 |
| 2-3 years | 200.00 |
| Over 3 years | 11,700.00 |
| 3-4 years | 11,700.00 |
| Total | 136,563.00 |
3) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
In RMB
| Category | Opening Balance | Current changes | Ending balance | |||
| Accrual | Collected or reversal | Write off | Other | |||
| Bad debt provision for other receivables | 13,159.56 | 1,084.97 | 12,074.59 | |||
| Total | 13,159.56 | 0.00 | 1,084.97 | 0.00 | 0.00 | 12,074.59 |
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 | Ending balance | Account age | Proportion in total other account receivables at period-end | Ending balance of bad debt provision |
| Shenye Pengji (Group) Co., Ltd. | Deposit or margin | 60,222.00 | Within 1 year | 44.10% | 180.67 |
| Zeng Yuehua | Reserve | 20,000.00 | Within 1 year | 14.65% | 60.00 |
| Shenzhen Hongkang Instrument Technology Co., Ltd. | Equipment | 11,400.00 | 3-4 years | 8.35% | 11,400.00 |
| Shenzhen Pengji Property Management Service Co., Ltd. | Deposit or margin | 10,441.00 | Within 1 year | 7.65% | 31.32 |
| Lin Weiwen | Reserve | 10,000.00 | Within 1 year | 7.32% | 30.00 |
| Total | -- | 112,063.00 | -- | 82.06% | 11,701.99 |
6) Account receivable with government grants involved
In RMB
| Enterprise | Government grants | Ending balance | Ending account age | Time, amount and basis of amount collection |
Nil
7) Other account receivable derecognition due to financial assets transfer
Nil
8) Assets and liability resulted by other account receivable transfer and continuous involvementNilOther explanation：
Nil
3. Long-term equity investment
In RMB
estimatedItem
| Item | Ending balance | Opening Balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Investment for subsidiary | 14,400,000.00 | 1,389,620.27 | 13,010,379.73 | 5,625,000.00 | 1,389,620.27 | 4,235,379.73 |
| Total | 14,400,000.00 | 1,389,620.27 | 13,010,379.73 | 5,625,000.00 | 1,389,620.27 | 4,235,379.73 |
(1) Investment for subsidiary
In RMB
| The invested entity | Opening Balance (Book value) | Changes in the period (+, -) | Ending balance (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 | 8,775,000.00 | 13,000,000.00 | ||||
| Total | 4,235,379.73 | 8,775,000.00 | 0.00 | 0.00 | 0.00 | 13,010,379.73 | 1,389,620.27 |
(2) Investment for associates and joint venture
In RMB
| Funded enterprise | Opening Balance (Book value) | Changes in the period (+, -) | Ending balance (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 | 9,271,106.93 | 8,988,379.05 | 21,426,406.12 | 20,428,856.90 |
| Other business | 6,679,717.49 | 3,645,817.35 | 3,977,972.72 | 3,241,165.72 |
| Total | 15,950,824.42 | 12,634,196.40 | 25,404,378.84 | 23,670,022.62 |
Information relating to revenue:
In RMB
| Category | Branch 1 | Branch 2 | Total | |
| Including: | ||||
| Including: | ||||
| Including: | ||||
| Including: | ||||
| Including: | ||||
| Including: | ||||
| Including: |
Information relating to performance obligations:
NilInformation related to the transaction price apportioned to the remaining performance obligations:
The amount of income corresponding to the performance obligations that have been signed at the end of this reporting period buthave not yet been fulfilled or have not done with fulfillment is 0.00 yuan, among them, yuan of revenue is expected to be recognizedin YEAR, yuan of revenue is expected to be recognized in YEAR, and yuan of revenue is expected to be recognized in YEAR.Other explanation：
Nil
5. Investment income
In RMB
| Item | Current Period | Last Period |
6. Other
NilXVIII. Supplementary Information
1. Current non-recurring gains/losses
√Applicable □Not applicable
In RMB
| Item | Amount | Note |
| Gains/losses from the disposal of non-current asset | 24,936.44 | |
| Switch back of the impairment provision for account receivable with impairment test on single basis and contract assets | 201,743.40 | |
| Other non-operating income and expenditure except for the aforementioned items | 742,112.11 | |
| Less: Impact on income tax | 242,197.99 | |
| Impact on minority shareholders’ equity | 126,858.03 | |
| Total | 599,735.93 | -- |
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 | 32.84% | 0.0051 | 0.0051 |
| Net profits belong to common stock stockholders of the Company after deducting nonrecurring gains and losses | 25.80% | 0.0040 | 0.0040 |
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 XII. Documents available for reference
1. Accounting statement carrying the signatures and seals of the legal representative, person in charge ofaccounting and person in charge of accounting organ.
2. Originals documents of the Company and manuscripts of public notices that disclosed in the newspaperdesignated by CSRC in the report period.
3. English version of the Semi-Annual Report 2020.
Board of Directors ofShenzhen China Bicycle Company (Holdings) Limited
27 August 2020