Shenzhen China Bicycle Company (Holdings) Limited
Semi-Annual Report 2021
Financial ReportI. Audit reportWhether the semi annual report is audited
□ Yes √ No
The company's semi annual financial report has not been auditedII. Financial Statement
Statement in Financial Notes are carried in RMB/CNY
1. Consolidated Balance Sheet
Prepared by Shenzhen China Bicycle Company (Holdings) Limited
June 30, 2021
In RMB/CNY
| Item | June 30, 2021 | December 31, 2020 |
| Current assets: | ||
| Monetary funds | 17,434,893.24 | 19,887,978.05 |
| Settlement provisions | ||
| Capital lent | ||
| Trading financial assets | ||
| Derivative financial assets | ||
| Note receivable | ||
| Account receivable | 55,552,419.15 | 55,031,424.70 |
| Receivable financing | ||
| Accounts paid in advance | 4,382,245.09 | 816,541.52 |
| Insurance receivable |
| Reinsurance receivables | ||
| Contract reserve of reinsurance receivable | ||
| Other account receivable | 654,021.99 | 576,770.36 |
| Including: Interest receivable | ||
| Dividend receivable | ||
| Buying back the sale of financial assets | ||
| Inventories | 7,601,075.77 | 7,729,325.94 |
| Contractual assets | ||
| Assets held for sale | ||
| Non-current asset due within one year | ||
| Other current assets | 3,340,005.35 | 2,715,425.31 |
| Total current assets | 88,964,660.59 | 86,757,465.88 |
| 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 | 3,612,186.01 | 3,792,133.36 |
| Construction in progress | ||
| Productive biological asset | ||
| Oil and gas asset | ||
| Right-of-use assets | ||
| Intangible assets | ||
| Expense on Research and Development | ||
| Goodwill | ||
| Long-term expenses to be apportioned |
| Deferred income tax asset | 793,170.75 | 793,170.75 |
| Other non-current asset | 1,135,849.05 | 400,000.00 |
| Total non-current asset | 5,541,205.81 | 4,985,304.11 |
| Total assets | 94,505,866.40 | 91,742,769.99 |
| Current liabilities: | ||
| Short-term loans | ||
| Loan from central bank | ||
| Capital borrowed | ||
| Trading financial liability | ||
| Derivative financial liability | ||
| Note payable | ||
| Account payable | 9,986,504.06 | 9,606,144.94 |
| Accounts received in advance | ||
| Contractual liability | 16,699,148.73 | 15,254,713.38 |
| Selling financial asset of repurchase | ||
| Absorbing deposit and interbank deposit | ||
| Security trading of agency | ||
| Security sales of agency | ||
| Wage payable | 813,937.14 | 1,459,244.07 |
| Taxes payable | 752,945.33 | 722,321.02 |
| Other account payable | 37,658,215.37 | 37,882,805.52 |
| 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 | 1,374,986.67 | 1,175,251.38 |
| Total current liabilities | 67,285,737.30 | 66,100,480.31 |
| Non-current liabilities: | ||
| Insurance contract reserve |
| Long-term loans | ||
| Bonds payable | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Lease liability | ||
| Long-term account payable | ||
| Long-term wages payable | ||
| Accrual liability | ||
| Deferred income | ||
| Deferred income tax liabilities | ||
| Other non-current liabilities | ||
| Total non-current liabilities | ||
| Total liabilities | 67,285,737.30 | 66,100,480.31 |
| 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 | -1,199,584,747.54 | -1,200,950,240.88 |
| Total owner’ s equity attributable to parent company | 12,270,724.32 | 10,905,230.98 |
| Minority interests | 14,949,404.78 | 14,737,058.70 |
| Total owner’ s equity | 27,220,129.10 | 25,642,289.68 |
| Total liabilities and owner’ s equity | 94,505,866.40 | 91,742,769.99 |
Legal Representative: Li HaiPerson in charge of Accounting Works: Sun Longlong
Person in charge of Accounting Institution: Zhong Xiaojin
2. Balance Sheet of Parent Company
In RMB/CNY
| Item | June 30, 2021 | December 31, 2020 |
| Current assets: | ||
| Monetary funds | 9,500,564.76 | 10,097,024.59 |
| Trading financial assets | ||
| Derivative financial assets | ||
| Note receivable | ||
| Account receivable | 24,528,945.87 | 24,274,935.96 |
| Receivable financing | ||
| Accounts paid in advance | 985,143.87 | 800,000.00 |
| Other account receivable | 129,953.19 | 115,263.05 |
| Including: Interest receivable | ||
| Dividend receivable | ||
| Inventories | 509,377.73 | 550,421.78 |
| Contractual assets | ||
| Assets held for sale | ||
| Non-current assets maturing within one year | ||
| Other current assets | 2,978,772.76 | 2,652,771.13 |
| Total current assets | 38,632,758.18 | 38,490,416.51 |
| Non-current assets: | ||
| Debt investment | ||
| Other debt investment | ||
| Long-term receivables | ||
| Long-term equity investments | 19,960,379.73 | 19,960,379.73 |
| Investment in other equity instrument | ||
| Other non-current financial assets | ||
| Investment real estate | ||
| Fixed assets | 3,400,670.61 | 3,530,501.40 |
| Construction in progress | ||
| Productive biological assets |
| Oil and natural gas assets | ||
| Right-of-use assets | ||
| Intangible assets | ||
| Research and development costs | ||
| Goodwill | ||
| Long-term deferred expenses | ||
| Deferred income tax assets | ||
| Other non-current assets | 1,135,849.05 | 400,000.00 |
| Total non-current assets | 24,496,899.39 | 23,890,881.13 |
| Total assets | 63,129,657.57 | 62,381,297.64 |
| Current liabilities: | ||
| Short-term borrowings | ||
| Trading financial liability | ||
| Derivative financial liability | ||
| Notes payable | ||
| Account payable | 576,266.32 | 748,604.24 |
| Accounts received in advance | ||
| Contractual liability | 15,134,353.38 | 14,685,423.04 |
| Wage payable | 609,508.72 | 1,146,371.58 |
| Taxes payable | 12,953.86 | 24,906.50 |
| Other accounts payable | 39,379,876.05 | 39,409,824.37 |
| Including: Interest payable | ||
| Dividend payable | ||
| Liability held for sale | ||
| Non-current liabilities due within one year | ||
| Other current liabilities | 1,175,960.12 | 1,101,243.63 |
| Total current liabilities | 56,888,918.45 | 57,116,373.36 |
| Non-current liabilities: | ||
| Long-term loans | ||
| Bonds payable | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Lease liability |
| Long-term account payable | ||
| Long term employee compensation payable | ||
| Accrued liabilities | ||
| Deferred income | ||
| Deferred income tax liabilities | ||
| Other non-current liabilities | ||
| Total non-current liabilities | ||
| Total liabilities | 56,888,918.45 | 57,116,373.36 |
| 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 | -1,205,614,732.74 | -1,206,590,547.58 |
| Total owner’s equity | 6,240,739.12 | 5,264,924.28 |
| Total liabilities and owner’s equity | 63,129,657.57 | 62,381,297.64 |
3. Consolidated Profit Statement
In RMB/CNY
| Item | Semi-annual of 2021 | Semi-annual of 2020 |
| I. Total operating income | 54,130,317.60 | 42,656,355.21 |
| Including: Operating income | 54,130,317.60 | 42,656,355.21 |
| Interest income | ||
| Insurance gained | ||
| Commission charge and commission income | ||
| II. Total operating cost | 54,197,658.54 | 40,013,244.72 |
| Including: Operating cost | 48,590,120.12 | 36,100,765.65 |
| 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 | 41,264.77 | 19,899.04 |
| Sales expense | 876,189.13 | 1,478,378.78 |
| Administrative expense | 2,619,117.48 | 1,679,719.44 |
| R&D expense | 2,120,389.55 | 753,742.20 |
| Financial expense | -49,422.51 | -19,260.39 |
| Including: Interest expenses | ||
| Interest income | -74,408.45 | -31,929.72 |
| Add: Other income | 2,516.00 | 10,105.77 |
| 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 | ||
| 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 | 1,318,717.42 | 170,387.85 |
| (Loss is listed with “-”) | ||
| Losses of devaluation of asset (Loss is listed with “-”) | 27,669.02 | |
| Income from assets disposal (Loss is listed with “-”) | 24,936.44 | |
| III. Operating profit (Loss is listed with “-”) | 1,281,561.50 | 2,848,540.55 |
| Add: Non-operating income | 457,664.40 | 744,788.91 |
| Less: Non-operating expense | 2,676.80 | |
| IV. Total profit (Loss is listed with “-”) | 1,739,225.90 | 3,590,652.66 |
| Less: Income tax expense | 161,386.48 | 170,038.76 |
| V. Net profit (Net loss is listed with “-”) | 1,577,839.42 | 3,420,613.90 |
| (i) Classify by business continuity | ||
| 1.continuous operating net profit (net loss listed with ‘-”) | 1,577,839.42 | 3,420,613.90 |
| 2.termination of net profit (net loss listed with ‘-”) | ||
| (ii) Classify by ownership | ||
| 1.Net profit attributable to owner’s of parent company | 1,365,493.34 | 2,797,643.50 |
| 2.Minority shareholders’ gains and losses | 212,346.08 | 622,970.40 |
| 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 | 1,577,839.42 | 3,420,613.90 |
| Total comprehensive income attributable to owners of parent Company | 1,365,493.34 | 2,797,643.50 |
| Total comprehensive income attributable to minority shareholders | 212,346.08 | 622,970.40 |
| VIII. Earnings per share: | ||
| (i) Basic earnings per share | 0.0025 | 0.0051 |
| (ii) Diluted earnings per share | 0.0025 | 0.0051 |
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 party
Legal Representative: Li HaiPerson in charge of Accounting Works: Sun LonglongPerson in charge of Accounting Institution: Zhong Xiaojin
4. Profit Statement of Parent Company
In RMB/CNY
| Item | Semi-annual of 2021 | Semi-annual of 2020 |
| I. Operating income | 12,378,683.92 | 15,950,824.42 |
| Less: Operating cost | 10,513,040.90 | 12,634,196.40 |
| Taxes and surcharge | 6,780.60 | 7,511.96 |
| Sales expenses | 342,616.35 | 256,975.98 |
| Administration expenses | 1,308,649.65 | 1,136,110.22 |
| R&D expenses | 985,885.21 | 753,742.20 |
| Financial expenses | -56,817.01 | -11,110.06 |
| Including: Interest expenses | ||
| Interest income | -65,092.61 | -16,963.68 |
| Add: Other income | 2,501.91 | 8,595.12 |
| 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 | 1,209,451.29 | 204,620.45 |
| (Loss is listed with “-”) | ||
| Losses of devaluation of asset (Loss is listed with “-”) | 27,669.02 | |
| Income on disposal of assets (Loss is listed with “-”) | 24,936.44 | |
| II. Operating profit (Loss is listed with “-”) | 518,150.44 | 1,411,549.73 |
| Add: Non-operating income | 457,664.40 | 177,227.94 |
| Less: Non-operating expense | ||
| III. Total Profit (Loss is listed with “-”) | 975,814.84 | 1,588,777.67 |
| Less: Income tax | ||
| IV. Net profit (Net loss is listed with “-”) | 975,814.84 | 1,588,777.67 |
| (i) continuous operating net profit (net loss listed with ‘-”) | 975,814.84 | 1,588,777.67 |
| (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 | 975,814.84 | 1,588,777.67 |
| VII. Earnings per share: | ||
| (i) Basic earnings per share | ||
| (ii) Diluted earnings per share |
5. Consolidated Cash Flow Statement
In RMB/CNY
| Item | Semi-annual of 2021 | Semi-annual of 2020 |
| I. Cash flows arising from operating activities: | ||
| Cash received from selling commodities and providing labor services | 56,072,881.75 | 25,999,057.43 |
| 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 | 2,666.96 | 10,712.11 |
| Other cash received concerning operating activities | 8,732,027.81 | 15,006,655.40 |
| Subtotal of cash inflow arising from operating activities | 64,807,576.52 | 41,016,424.94 |
| Cash paid for purchasing commodities and receiving labor service | 51,386,530.21 | 25,572,959.40 |
| 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 | 4,600,762.58 | 2,860,928.35 |
| Taxes paid | 606,781.27 | 263,658.94 |
| Other cash paid concerning operating activities | 10,660,629.28 | 10,968,482.31 |
| Subtotal of cash outflow arising from operating activities | 67,254,703.34 | 39,666,029.00 |
| Net cash flows arising from operating activities | -2,447,126.82 | 1,350,395.94 |
| 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 | |
| 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 | |
| Cash paid for purchasing fixed, intangible and other long-term assets | 5,957.99 | |
| 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 | 5,957.99 | |
| Net cash flows arising from investing activities | -5,957.99 | 64,500.00 |
| 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 | ||
| Cash received from loans | ||
| Other cash received concerning financing activities | ||
| Subtotal of cash inflow from financing activities | 4,725,000.00 |
| Cash paid for settling debts | ||
| Cash paid for dividend and profit distributing or interest paying | ||
| Including: Dividend and profit of minority shareholder paid by subsidiaries | ||
| Other cash paid concerning financing activities | ||
| Subtotal of cash outflow from financing activities | ||
| Net cash flows arising from financing activities | 4,725,000.00 | |
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | ||
| V. Net increase of cash and cash equivalents | -2,453,084.81 | 6,139,895.94 |
| Add: Balance of cash and cash equivalents at the period -begin | 19,887,978.05 | 6,074,367.91 |
| VI. Balance of cash and cash equivalents at the period -end | 17,434,893.24 | 12,214,263.85 |
6. Cash Flow Statement of Parent Company
In RMB/CNY
| Item | Semi-annual of 2021 | Semi-annual of 2020 |
| I. Cash flows arising from operating activities: | ||
| Cash received from selling commodities and providing labor services | 8,529,883.80 | 7,581,014.00 |
| Write-back of tax received | 2,652.02 | 9,110.82 |
| Other cash received concerning operating activities | 8,894,920.39 | 19,278,497.89 |
| Subtotal of cash inflow arising from operating activities | 17,427,456.21 | 26,868,622.71 |
| Cash paid for purchasing commodities and receiving labor service | 5,583,811.46 | 2,063,572.76 |
| Cash paid to/for staff and workers | 3,163,849.78 | 2,253,629.12 |
| Taxes paid | 109,766.66 | 229,400.44 |
| Other cash paid concerning operating activities | 9,160,530.15 | 8,732,615.26 |
| Subtotal of cash outflow arising from operating activities | 18,017,958.05 | 13,279,217.58 |
| Net cash flows arising from operating activities | -590,501.84 | 13,589,405.13 |
| 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 | |
| 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 | |
| Cash paid for purchasing fixed, intangible and other long-term assets | 5,957.99 | |
| 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 | 5,957.99 | 8,775,000.00 |
| Net cash flows arising from investing activities | -5,957.99 | -8,710,500.00 |
| 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 | -596,459.83 | 4,878,905.13 |
| Add: Balance of cash and cash equivalents at the period -begin | 10,097,024.59 | 1,959,804.92 |
| VI. Balance of cash and cash equivalents at the period -end | 9,500,564.76 | 6,838,710.05 |
7. Statement of Changes in Owners’ Equity (Consolidated)
Current Amount
In RMB/CNY
| Item | Semi-annual of 2021 | ||||||||||||||
| 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 secur | Other | |||||||||||||
| ities | |||||||||||||||
| I. The ending balance of the previous year | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,200,950,240.88 | 10,905,230.98 | 14,737,058.70 | 25,642,289.68 | ||||||||
| Add: Changes of accounting policy | |||||||||||||||
| Error correction of the last period | |||||||||||||||
| Enterprise combine under the same control | |||||||||||||||
| Other | |||||||||||||||
| II. The beginning balance of the current year | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,200,950,240.88 | 10,905,230.98 | 14,737,058.70 | 25,642,289.68 | ||||||||
| III. Increase/ Decrease in the period (Decrease is listed with “-”) | 1,365,493.34 | 1,365,493.34 | 212,346.08 | 1,577,839.42 | |||||||||||
| (i) Total comprehensive income | 1,365,493.34 | 1,365,493.34 | 212,346.08 | 1,577,839.42 | |||||||||||
| (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 period | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,199,584,747.54 | 12,270,724.32 | 14,949,404.78 | 27,220,129.10 |
Amount of the previous period
In RMB/CNY
| Item | Semi-annual of 2020 | ||||||||||||||
| 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. The ending balance of the previous 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. The beginning balance of the current 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 the period (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 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 |
8. Statement of Changes in Owners’ Equity (Parent Company)
Current Amount
In RMB/CNY
| Item | Semi-annual of 2021 | |||||||||||
| Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Retained profit | Other | Total owners’ equity | |||
| Preferred stock | Perpetual capital securities | Other | ||||||||||
| I. The ending balance of the previous year | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,206,590,547.58 | 5,264,924.28 | |||||||
| Add: Changes of accounting policy | ||||||||||||
| Error correction of the last period | ||||||||||||
| Other | ||||||||||||
| II. The beginning balance of the current year | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,206,590,547.58 | 5,264,924.28 | |||||||
| III. Increase/ Decrease in the period (Decrease is listed with “-”) | 975,814.84 | 975,814.84 | ||||||||||
| (i) Total comprehensive income | 975,814.84 | 975,814.84 | ||||||||||
| (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 period | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,205,614,732.74 | 6,240,739.12 |
Amount of the previous period
In RMB/CNY
| Item | Semi-annual of 2020 | |||||||||||
| Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Retained profit | Other | Total owners’ equity | |||
| Preferred stock | Perpetual capital securities | Other | ||||||||||
| I. The ending balance of the previous 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. The beginning balance of the | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,209,458,208.07 | 2,397,263.79 | |||||||
| current year | ||||||||||||
| III. Increase/ Decrease in the period (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 period | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,207,869,430.40 | 3,986,041.46 |
III. Company Profile
1. History and basic information
According to the Approval Document SFBF (1991) No. 888 issued by the People’s Government of Shenzhen,Shenzhen China Bicycle Company (Holdings) Limited (hereinafter referred to as the Company) wasreincorporated as the company limited by shares in November 1991. On 28 December 1991, upon the ApprovalDocument SRYFZ(1991) No. 119 issued by Shenzhen Special Economic Zone Branch of the People’s Bank ofChina, the Company got listed on Shenzhen Stock Exchange. Registered of the Company amounted as551,347,947.00 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, electric tricycles, electric four-wheelers, children's bicycles, exercise bikes, sports equipment,mechanical products, toys, electric toys, electronic products, new energy equipment and storage equipment (lithiumbatteries, batteries, etc.), household appliances and spare parts, and electronic components; wholesale, retail, importand export and related supporting business of above-mentioned products (excluding commodities subject to statetrade management, handling the application according to the relevant national regulations for commoditiesinvolving quotas, license management and other special provisions and management,); fine chemical products(excluding dangerous goods), wholesale and retail of carbon fiber composite materials; technology development ofcomputer software, transfer of self-developed technological achievements, and providing relevant technicalinformation consultation; own property leasing; property management. (The above projects do not involve specialadministrative measures for the implementation access of national regulations, and those involving restrictedprojects and pre-existing administrative licenses must obtain the pre-existing administrative licensing documentsbefore operation.) Purchase and sale of gold products, platinum jewelry, palladium jewelry, K-gold jewelry, silverjewelry, 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 by national laws and administrative regulations).
MaGoods in processs and services provided so far: EMMELLE bicycles, electrical bicycles, lithium batterymaterial and gold jewelry.
3. Release of the financial report
The Financial Report released on 25 August 2021 after approved by 31
st session of 10
thBOD of the Company.Two subsidiaries included in consolidate scope in the period, and one sub-subsidiary, found more in 1. carry in Note VIII.
IV. Compilation Basis of Financial Statement
1. Compilation Basis
The financial statement is prepared based on continuing operation assumptions, and according to actualoccurrence, in line with relevant accounting rules and follow important accounting policy and estimation.
2. Going concern
On 11 May 2012, the largest shareholder and biggest creditor of the Company, Shenzhen Guosheng EnergyInvestment Development Co., Ltd. applied to Shenzhen Municipal Intermediate People's Court for reforming theCompany as the Company couldn’t pay off the matured debts and was seriously insolvent. On 12 October 2012,Shenzhen Municipal Intermediate People's Court ruled to accept the application proposed by Guosheng Energyaccording to (2012) Shenzhen Intermediate Court Po Zi No. 30 civil ruling. On the last ten-day of October 2012,Shenzhen Municipal Intermediate People's Court ruled to reform the Company since 25 October 2012 accordingto (2012) Shenzhen Intermediate Court Po Zi No. 30-1 civil ruling, appointed King & Wood (Shenzhen)Mallesons and Shenzhen ZhengYuan Liquidation Affairs Co., Ltd. as the custodians of the Company. On the sameday, Shenzhen Municipal Intermediate People's Court made (2012) Shenzhen Intermediate Court Po Zi No. 30-1written decision, and approved the Company to manage property and business affairs by itself under thesupervision of custodians according to the law. On 5 November 2013, the Shenzhen Intermediate People’s Court(2012) Shen Zhong Fa Po Zi No. 30-6 Civil Ruling Paper judged that approved the reorganization plan of theCompany. On 27 December 2013, the Civil Ruling Paper Shenzhen Intermediate People’s Court (2012) ShenZhong Fa Po Zi No. 30-10 ruled that the reorganization plan of CBC was completed and bankruptcy procedures ofthe Company closed down.The Company has solved the debt problem by reforming, realized the net assets with positive value, the mainbusiness of bicycle is able to be maintained and realizes the stable development. The Company has set up theconditions for introducing the recombination party in the reforming plan, and expects to restore the abilities ofsustainable operation and sustained profitability by reorganization. The conditions of introducing therecombination party includes: the assessed value of net assets should be no less than 2 billion Yuan, the net assetsin the same year for implementing the major reorganization should be no less than 200 million Yuan. TheCompany doesn’t have the recombination party at the moment.
V. Main accounting policy and Accounting EstimateTips for specific accounting policy and estimate:
1. Declaration on compliance with accounting standards for business enterpriseThe financial statement prepared by the Company, based on follow compilation basis, is comply with therequirement of new accounting standards for business enterprise issued by Ministry of Finance and its applicationguide, commentate as well as other regulations (collectively referred to as Accounting Standards for BusinessEnterprise), which is reflect a real and truth financial status of the Company, as well as operation results and cashflow situations.Furthermore, the statement has reference to the listing and disclosure requirement from “Rules Governing theDisclosure of Information for Enterprise with Stock Listed No.15-general regulation of financial report” (2014Revised) and “Notice on Implementation of New Accounting Standards for Listed Companies” (KJBH (2018) No.453)
2. Accounting period
Calendar year is the accounting period for the Company, which is starting from 1 January to 31 December.
3. Business cycles
The business period for the Company, which is the Gregorian calendar starting from 1 January to 31 December
4. Book-keeping currency
The Company and its subsidiaries take RMB as the standard currency for bookkeeping.
5. Accounting treatment for business combinations under the same control and those not under the samecontrol
(1) Accounting treatment for business combinations under the same control and those not under the same controlFor a business merger that is under the same control and is achieved by the Company through one singletransaction or multiple transactions, assets and liabilities obtained from that business combination shall bemeasured at their book value at the combination date as recorded by the party being absorbed in the consolidatedfinancial statement of ultimate controlling party. Capital reserve shall be adjusted as per the difference betweenthe book value of obtained net assets and the book value of paid consolidated consideration (or the nominal valueof the issued shares) of the Company; retained earnings shall be adjusted if the capital reserve is not sufficient foroffset.
(2) Accounting treatment for Enterprise combine not under the same control
The Company will validate the difference that the combined cost is more than the fair value of the net identifiableassets gained from the acquiree on the acquisition date as goodwill; where the combined cost is less than the fairvalue of net identifiable assets gained from the acquiree during business combination, the fair value and combinedcost of various identifiable assets, liabilities and contingent liabilities from the acquiree must be rechecked. Wherethe combined cost is, after the recheck, still less than the fair value of net identifiable assets gained from theacquiree during business combination, the difference shall be charged to current profits and losses.As for business combination not under common control and realized through multiple transactions and by steps,the Company shall make accounting treatment as follows:
1) Adjust the initial investment cost of long-term equity investments. As for stock equities held before theacquisition date accounted according to the equity method, re-measurement is carried out according to the fairvalue of the equity on the acquisition date. The balance between the fair value and the book value is included inthe current investment income. If the acquiree’s stock equities held before the acquisition date involves changes ofother comprehensive incomes and other owner's equities under accounting with the equity method, the balancebetween the fair value and the book value is included in the current investment income on the acquisition date,excluding other comprehensive incomes incurred by changes due to re-measurement of net liabilities or net assetsof the defined benefit plan.
2) Confirm the goodwill (or include the amount in the profits and losses). The initial investment cost of long-termequity investments adjusted in step 1 is compared with the fair value of net identifiable assets of the subsidiaryshared on the acquisition date. If the former is greater than the latter, the balance is confirmed as goodwill; if theformer is less than the latter, the balance is included in the current profits and losses.Loss of control of a subsidiary in multiple transactions in which it disposes equity interests of its subsidiary instages
(1)In determining whether to account for the multiple transactions as a single transactionA parent shall consider all the terms and conditions of the transactions and their economic effects. One or more ofthe following may indicate that the parent should account for the multiple arrangements as a single transaction:
1) Arrangements are entered into at the same time or in contemplation of each other;
2) Arrangements work together to achieve an overall commercial effect;
3) The occurrence of one arrangement is dependent on the occurrence of at least one other arrangement;
4)One arrangement considered on its own is not economically justified, but it is economically justified when
considered together with other arrangements.
(2)Accounting treatment for each of the multiple transactions forming part of a bundled transactions whicheventually results in loss of control the subsidiary during disposal of its subsidiary in stages
If each of the multiple transactions forms part of a bundled transactions which eventually results in loss of controlthe subsidiary, these multiple transactions should be accounted for as a single transaction. In the consolidatedfinancial statements, the difference between the consideration received and the corresponding percentage of thesubsidiary’s net assets in each transaction prior to the loss of control shall be recognized in other comprehensiveincome and transferred to the profit or loss when the parent eventually loses control of the subsidiary.The remaining equity investment shall be re-measured at its fair value in the consolidated financial statements atthe date when control is lost. The difference between the total amount of consideration received from thetransaction that resulted in the loss of control and the fair value of the remaining equity investment and the shareof net assets of the former subsidiary calculated continuously from the acquisition date or combination date basedon the previous shareholding proportion, shall be recognized as investment income for the current period whencontrol is lost. The amount previously recognized in other comprehensive income in relation to the formersubsidiary’s equity investment should be transferred to investment income for the current period when control islost
(3)Accounting treatment for each of the multiple transactions NOT forming part of a bundled transactions whicheventually results in loss of control the subsidiary during disposal of its subsidiary in stagesIf the Company doesn't lose control of investee, the difference between the amount of the consideration receivedand the corresponding portion of net assets of the subsidiary shall be adjusted to the capital reserve (capital /equitypremium) in the consolidated financial statements.If the Company loses control of investee, the remaining equity investment shall be re-measured at its fair value inthe consolidated financial statements at the date when control is lost. The difference between the total amount ofconsideration received from the transaction that resulted in the loss of control and the fair value of the remainingequity investment and the share of net assets of the former subsidiary calculated continuously from the acquisitiondate or combination date based on the previous shareholding percentage, shall be recognized as investmentincome for the current period when control is lost. The amount previously recognized in other comprehensiveincome in relation to the former subsidiary’s equity investment should be transferred to investment income for thecurrent period when control is lost.
6. Compilation method of consolidated financial statement
Consolidated financial statements are prepared by the Company in accordance with Accounting Standard forBusiness Enterprise No. 33-Consolidated Financial Statements and based on financial statements of parentcompany and its subsidiaries and other related information.When consolidating the financial statements, the following items are eliminated: internal equity investment andowners’ equity of subsidiaries, proceeds on internal investments and profit distribution of subsidiaries, internaltransactions, internal debts and claim. The accounting policies adopted by subsidiaries are the same as parentcompany.
7. Classification of joint venture arrangement and accounting treatment for joint control
(1) Affirmation and classification of joint venture arrangement
Joint arrangement refers to an arrangement controlled by two or more than two participants. Joint venturearrangement has the following characteristics: 1) Each participant is bound by the arrangement; 2) Two or moreparticipants carry out joint control on implementation of the arrangement. Any participant cannot control thearrangement independently. Any participant for joint control can stop other participants or participantcombinations to independently control the arrangement.Joint control refers to the sharing of control over certain arrangement under related agreements, and relatedactivities of the arrangement must be determined only when obtaining the unanimous consent of the partiessharing control.Joint venture arrangement is classified in to joint operation and joint venture. Joint operation refers to anarrangement that a joint party enjoys assets related to the arrangement and bears liabilities related to thearrangement. Joint venture refers to an arrangement that a joint party only has the power governing net assets ofthe arrangement.
(2) Accounting treatment of joint venture arrangement
Joint venture participants should confirm the following items related to interest shares in joint venture and carryout accounting settlement according to relevant provisions of the Accounting Standards for Business Enterprises:
1) confirm the assets held separately and confirm the assets held jointly based on shares; 2) confirm the liabilitiesborne separately and confirm the liabilities borne jointly based on shares; 3) confirm the income incurred afterselling its shares in joint venture output; 4) confirm the income after selling the joint venture outputs based onshares; 5) confirm the expenses incurred separately and confirm the expenses incurred in joint venture based onshares.Joint venture participants should carry out accounting settlement for investments of the joint venture according toprovisions of Accounting Standards for Business Enterprises No.2–Long-term Equity Investments.
8. Recognition of cash and cash equivalents
Cash in cash flow statement means the inventory cash and savings available for use anytime. Cash equivalentsrefer to the short-term (generally due within three months since the date of purchase) highly liquid investmentsthat are readily convertible into known amounts of cash and that are subject to an insignificant risk of change invalue.
9. Foreign currency transaction and financial statement conversion
(1)Conversion for foreign currency transaction
When initially recognized, the foreign currency for the transaction shall be converted into CNY amount accordingto the spot exchange rate on the date of transaction. For the foreign currency monetary items, conversion must bebased on the spot exchange rate on the balance sheet date and the exchange difference incurred from differentexchange rates, except for the exchange difference of principal and interest incurred due to foreign currency loanrelated to acquisition or construction of assets that qualify for capitalization, shall be charged to current profits andlosses; foreign currency non-monetary items measured with historical cost are still converted as per the spotexchange rate on the transaction date and keep the RMB amount unchanged; foreign currency non-monetary itemsmeasured with fair value shall be converted as per the spot exchange rate on the date of determining the fair valueand the difference shall be charged to current profits and losses or other comprehensive income.
(2)Conversion of financial statements presented in foreign currencies
The asset and liability items in the balance sheet shall be converted at the spot exchange rate on the balance sheetdate; the owner’s equity items, except for the items of “undistributed profit”, shall be converted at the spotexchange rate on the transaction date; the income and expenditure items in the profit statement shall be convertedat the spot exchange rate on the transaction date. The translation difference of foreign financial statementsconducted as above is recognized as other comprehensive incomes.
10. Financial instruments
(1) Recognition and termination for financial instrument
Financial assets or financial liabilities are recognized when the Group becomes a party to the contractualprovisions of the instrument.When buying and selling financial assets in a conventional manner, recognize and derecognize them according tothe accounting of the trading day. Buying and selling financial assets in a conventional manner refers to thecollection or delivery of financial assets in accordance with the contract terms and within the period prescribed byregulations or prevailing practices. Trading day refers to the date when the Company promises to buy or sellfinancial assets.When meeting the following conditions, derecognize a financial asset (or part of a financial asset, or part of agroup of similar financial assets), i.e. to write off from its account and balance sheet:
1) The right to receive cash flows from financial assets expires;
2) The right to receive cash flows of financial assets is transferred, or assume the obligation to pay the full amountof cash flows received to a third party in a timely manner under the “handover agreement”; and (a) virtuallytransferred almost all risks and rewards of the ownership of financial assets, or (b) although virtually neithertransferred nor retained almost all risks and rewards of the ownership of financial assets, abandoned the control 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 assetsmeasured at fair value and whose changes are included in other comprehensive income, and financial assetsmeasured at fair value and whose changes are included in the current profit and loss according to the Company’sbusiness model for managing financial assets and the contractual cash flow characteristics of financial assets atinitial recognition. The subsequent measurement of financial assets depends on their classification.The Company’s classification of financial assets is based on the Company’s business model for managingfinancial assets and the cash flow characteristics of financial assets.
1) Financial assets measured at amortized cost
Financial assets that meet the following conditions at the same time are classified as financial assets measured atamortized cost: the Company’s business model for managing this financial asset is to collect contractual cashflows; the contract terms of the financial asset stipulate that the cash flow generated on a specific date is only thepayment of principal and interest based on the outstanding principal amount. For such financial assets, the actualinterest rate method is used for subsequent measurement based on amortized cost, and the gains or losses arisingfrom amortization or impairment are included in the current profit and loss.
2) Debt instrument investments measured at fair value and whose changes are included in other comprehensiveincomeFinancial assets that meet the following conditions at the same time are classified as financial assets measured atfair value and whose changes are included in other comprehensive income: the Company’s business model formanaging this financial asset is to both collect contractual cash flows and sell the financial assets; the contractterms of the financial asset stipulate that the cash flow generated on a specific date is only for the payment ofprincipal and interest based on the outstanding principal amount. For such financial assets, fair value is used forsubsequent measurement. The discount or premium is amortized by using the actual interest method and isrecognized as interest income or expenses. Except that the impairment loss and the exchange difference of foreigncurrency monetary financial assets are recognized as current gains and losses, changes in the fair value of suchfinancial assets are recognized as other comprehensive income, until the financial asset is derecognized, itscumulative gains or losses are transferred to the current profit and loss. Interest income related to such financialassets is included in the current profit and loss.
3) Equity instrument investments measured at fair value and whose changes are included in other comprehensiveincomeThe Company irrevocably chooses to designate some non-trading equity instrument investments as financialassets measured at fair value and whose changes are included in other comprehensive income. Only relevantdividend income is included in the current profit and loss, and changes in fair value are recognized as othercomprehensive income, until the financial asset is derecognized, its accumulated gains or losses are transferred toretained earnings.
4) Financial assets measured at fair value and whose changes are included in the current profit and loss
Financial assets except for above financial assets measured at amortized cost and financial assets measured at fairvalue and whose changes are included in other comprehensive income are classified as financial assets measuredat fair value and whose changes are included in the current profit and loss. During initial recognition, in order toeliminate or significantly reduce accounting mismatches, financial assets can be designated as financial assetsmeasured at fair value and whose changes included in the current profit and loss. For such financial assets, fairvalue is used for subsequent measurement, and all changes in fair value are included in the current profit and loss.When and only when the Company changes its business model for managing financial assets, it will reclassify allaffected related financial assets.For financial assets measured at fair value and whose changes are included in the current profit or loss, the relatedtransaction costs are directly included in the current profit and loss, and the related transaction costs of other typesof financial assets are included in the initial recognition amount.
(3) Classification and measurement of financial liabilities
The Company’s financial liabilities are classified as financial liabilities measured at amortized cost and financialliabilities measured at fair value and whose changes are included in the current profit and loss at initialrecognition.Financial liabilities that meet one of the following conditions can be designated as financial liabilities measured atfair value and whose changes are included in current profit or loss during initial measurement: (1) Thisdesignation can eliminate or significantly reduce accounting mismatches; (2) According to the group riskmanagement or investment strategies stated in official written documents, management and performanceevaluation of financial liability portfolios or financial assets and financial liability portfolios are conducted basedon fair value, and are reported to key management personnel within the group on this basis; (3) The financialliability includes embedded derivatives that need to be split separately.The Company determines the classification of financial liabilities at initial recognition. For financial liabilities thatare measured at fair value and whose changes are included in the current profit or loss, the related transactioncosts are directly included in the current profit and loss, and the related transaction costs of other financialliabilities are included in its initial recognition amount.The subsequent measurement of financial liabilities depends on their classification:
1) Financial liabilities measured at amortized cost
For such financial liabilities, adopt actual interest rate method and make subsequent measurements based onamortized costs.
2) Financial liabilities measured at fair value and whose changes are included in the current profit and lossFinancial liabilities that are measured at fair value and whose changes are included in the current profit or lossinclude trading financial liabilities (including derivatives that are financial liabilities) and financial liabilitiesdesignated to be measured at fair value at the initial recognition and whose changes are included in the currentprofit or loss.
(4) Financial instruments offset
If the following conditions are met at the same time, the financial assets and financial liabilities are listed in thebalance sheet with the net amount after mutual offset: legal right to offset the confirmed amount, and this legalright is currently executable; Net settlement, or simultaneous realization of the financial assets and liquidation ofthe financial liabilities.
(5) Impairment of financial assets
The Company recognizes the loss provisions on the basis of expected credit losses for financial assets measured atamortized cost, debt instrument investments measured at fair value and whose changes are included in othercomprehensive income and financial guarantee contracts. Credit loss refers to the difference between allcontractual cash flows receivable under the contract and discounted according to original actual interest rate bythe Company and all expected receivable cash flows, that is, the present value of all cash shortages.The Company considers all reasonable and evidence-based information, including forward-looking information,and estimates the expected credit loss of financial assets measured at amortized cost and financial assets measuredat fair value and whose changes are included in other comprehensive income (debt instruments) in a single orcombined manner.
1) General model of expected credit loss
If the credit risk of the financial instrument has increased significantly since the initial recognition, the Companymeasures its loss provisions in accordance with the amount equivalent to the expected credit loss of the financialinstrument for the entire duration; if the credit risk of the financial instrument has not significantly increased sincethe initial recognition, the Company measures its loss provisions in accordance with the amount equivalent to theexpected credit loss of the financial instrument in the next 12 months. The resulting increased or reversed amountof the loss provisions is included in the current profit and loss as an impairment loss or gain. For the Company’sspecific assessment of credit risk, please see details in Note IX. Risks Related to Financial Instruments”.Generally, the Company believes that the credit risk of the financial instrument has significantly increased when itexceeds 30 days after the due date, unless there is concrete evidence that the credit risk of the financial instrumenthas not increased significantly since initial recognition.Specifically, the Company divides the process of credit impairment of financial instruments of which no creditimpairment has occurred at the time of purchase or origin into three stages. There are different accountingtreatment methods for the impairment of financial instruments at different stages:
Stage one: Credit risk has not increased significantly since initial recognitionFor a financial instrument at this stage, the enterprise should measure the loss provisions according to theexpected credit losses in the next 12 months, and calculate the interest income based on its book balance (that is,without deducting provisions for impairment) and the actual interest rate (if the instrument is a financial asset, thesame below).Stage two: Credit risk has increased significantly since initial recognition but no credit impairment has occurredFor a financial instrument at this stage, the enterprise should measure the loss provisions according to theexpected credit loss of the instrument for its entire duration, and calculate the interest income based on its bookbalance and actual interest rate.
Stage three: Credit impairment occurs after initial recognitionFor a financial instrument at this stage, the enterprise should measure the loss provisions based on the expectedcredit losses of the instrument for its entire duration, but the calculation of interest income is different from thefinancial assets at the previous two stages. For financial assets that have suffered credit impairment, the enterpriseshould calculate interest income based on its amortized cost (book balance minus the provisions for impairment,i.e., book value) and the actual interest rate.For financial assets that have suffered credit impairment at the time of purchase or origin, the enterprise shouldonly recognize changes in expected credit losses for the entire duration after initial recognition as loss provisions,and calculate the interest income based on its amortized cost and credit-adjusted actual interest rate.
2) The Company chooses not to compare the financial instrument with lower credit risk on the balance sheet datewith its credit risk at initial recognition, but directly makes the assumption that the credit risk of the instrumenthas not increased significantly since the initial recognition.If the enterprise confirms that the default risk of financial instruments is low, the borrower has a strong ability tofulfill its contractual cash flow obligations in the short term, and even if there are adverse changes in the economicsituation and operating environment in a longer period of time, it will not necessarily reduce the borrower’s abilityto fulfill its contractual cash flow obligations, then the financial instrument can be considered to have lower creditrisk.
3) Accounts receivable and lease receivables
The Company adopts the simplified model of expected credit loss for accounts receivables specified in“Accounting Standards for Business Enterprises No.14 - Revenue” and without containing significant financingcomponents (including the case that the financing components in contracts that do not exceed one year are notconsidered according to the standards), that is, always measures their loss provisions according to the amount ofexpected credit loss during the entire duration.The Company makes accounting policy choices for the receivables containing significant financing componentsand the lease receivables specified in “Accounting Standards for Business Enterprises No.21 - Leases”, andchooses to adopt the simplified model of expected credit losses, that is, to measure the loss provisions inaccordance with the amount of expected credit losses throughout the entire duration.
(6) Transfer of financial assets
Where the Company has transferred almost all the risks and rewards in the ownership of the financial asset to thetransferee, the recognition of the financial assets shall be terminated; where almost all risks and rewards in theownership of a financial asset are retained, the recognition of the financial assets are not terminated.
If the Group neither transfers nor retains substantially all the risks and rewards of ownership of a financial asset, itshall be accounted for as follows: the financial asset should be terminated if the Group waives control over theasset; it recognizes the financial asset to the extent of its continuing involvement in the transferred financial asset
and recognizes an associated liability if the Group does not waives control over the asset.If the transferred financial assets continue to be involved by providing financial guarantee, the assets continue tobe involved shall be recognized according to the lower of the book value of the financial assets and the amount offinancial guarantee. The financial guarantee amount means the maximum amount of consideration received whichwill be required to be repaid.
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”Nil
11.Note receivable
The Group adopts the simplified model of expected credit loss for the accounts receivables specified in“Accounting Standards for Business Enterprises No.14 - Revenue” and without containing significant financingcomponents (including the case that the financing components in contracts that do not exceed one year are notconsidered according to the standards), that is, always measures their loss provisions according to the amount ofexpected credit loss during the entire duration, and the resulting increased or reversed amount of the loss provisionis included in the current profit and loss as an impairment loss or gain. The accrual method is as follows:
The Company divides the bills receivable into two types, i.e. bank acceptance bills and commercial acceptancebills portfolios, according to the type of financial instruments. For bank acceptance bills, the accepting bank paysthe determined amount to the taker or the bearer unconditionally due to the maturity of the bills, the overdue creditloss is low and has not increased significantly since the initial confirmation, the Company believes that the risk ofoverdue default is 0; for commercial acceptance bills, the Company believes that the probability of default isrelated to the aging, we use a simplified model of expected credit losses, that is the allowance for losses is alwaysmeasured at the amount of expected credit losses over the entire duration period. Proportion for accrual foundmore in the accounting policy and estimate for account receivable.
12. Account receivable
The Company adopts the simplified model of expected credit loss for accounts receivables specified in“Accounting Standards for Business Enterprises No.14 - Revenue” and without containing significant financingcomponents (including the case that the financing components in contracts that do not exceed one year are notconsidered according to the standards), that is, always measures their loss provisions according to the amount ofexpected credit loss during the entire duration, and the resulting increased or reversed amount of the loss provisionis included in the current profit and loss as an impairment loss or gain.
For accounts receivable that contain a significant financing component, the Company chooses to use the
simplified model of expected credit losses, that is, to always measure its loss provisions according to the amountof expected credit losses during the entire duration.
1. Simplified model of expected credit losses: always measure the loss provisions according to the amount ofexpected credit losses during the entire durationThe Company considers all reasonable and well-founded information, including estimates of expected creditlosses on accounts receivable in a single or combined manner.
(1) Account receivable with single significant amount and withdrawal single item bad debt provision
| Basis or amount of judgment for account with single significant amount | Withdrawal method for bad debt provision of account receivable with single significant amount |
| Receivable commercial acceptance bill, account receivable and other receivables with single amount more than 5 million yuan (including) | Carry out impairment test separately, and withdraw bad debt provision according to the difference between the present value of future cash flow and its book value |
(2)Receivables with provision for bad debts by portfolio
| Portfolio determine basis | |
| Age analysis | On the basis of the actual loss rate of the portfolio of receivables with similar credit risk characteristics which are the same or similar in the previous year, for the single amount of non-material receivables, it is divided into several portfolios according to the credit risk characteristics together with the receivables without impairment after the separate test |
| Other | Bank acceptance |
In the combination, the proportion of bad debt provision withdrawn by aging analysis method is as follow:
| Account age | Accrual proportion of commercial acceptance bill receivable | Withdrawing proportion of the account receivable | Withdrawing proportion of other receivable |
| Within one year(one year included) | 0.3% | 0.3% | 0.3% |
| 1～2 years (2-year included) | 100% | 0.3% | 0.3% |
| 2～3 years (3-year included) | 100% | 0.3% | 0.3% |
| Over 3 years | 100% | 100% | 100% |
| Including: determined to be un-collectible | Write off | Write off | Write off |
(3) Account receivable with significant single amount and single provision for bad debts
| Basis or amount of judgment for account with single minor amount | Withdrawal method for bad debt provision of account receivable with single minor amount |
| Receivable commercial acceptance bill, account receivable and other receivables with single amount less than 5 million yuan (including), and the probability of recall is small by nature | Carry out impairment test separately, and withdraw bad debt provision according to the difference between the present value of future cash flow and its book value |
2. A general model of expected credit loss
Found more in the treatment in【10. Financial Instrument】
13. Receivable financing
Financial assets that meet the following conditions at the same time are classified as financial assets measured atfair value and whose changes are included in other comprehensive income: the Company’s business model formanaging this financial asset is to both collect contractual cash flows and sell the financial assets; the contractterms of the financial asset stipulate that the cash flow generated on a specific date is only for the payment ofprincipal and interest based on the outstanding principal amount.The Company transfers the receivables held by discounting or endorsement, and such operations are morefrequent with large amount involved. The management business models is essentially both the collection ofcontractual cash flows and the sales; in accordance with the relevant provision of financial instrument standards,classified them into the financial assets measured at fair value and with its variation reckoned into othercomprehensive income.
14.Other account receivable
Determination method and accounting treatment of the expected credit loss of other account receivableThe Company adopts the simplified model of expected credit loss for accounts receivables specified in“Accounting Standards for Business Enterprises No.14 - Revenue” and without containing significant financingcomponents (including the case that the financing components in contracts that do not exceed one year are notconsidered according to the standards), that is, always measures their loss provisions according to the amount ofexpected credit loss during the entire duration, and the resulting increased or reversed amount of the loss provisionis included in the current profit and loss as an impairment loss or gain.
For accounts receivable that contain a significant financing component, the Company chooses to use thesimplified model of expected credit losses, that is, to always measure its loss provisions according to the amountof expected credit losses during the entire duration.
1. Simplified model of expected credit losses: always measure the loss provisions according to the amount ofexpected credit losses during the entire durationThe Company considers all reasonable and well-founded information, including estimates of expected creditlosses on accounts receivable in a single or combined manner.
(1) Account receivable with single significant amount and withdrawal single item bad debt provision
| Basis or amount of judgment for account with single significant amount | Withdrawal method for bad debt provision of account receivable with single significant amount |
| Receivable commercial acceptance bill, account receivable and other receivables with single amount more than 5 million yuan (including) | Carry out impairment test separately, and withdraw bad debt provision according to the difference between the present value of future cash flow and its book value |
(2)Receivables with provision for bad debts by portfolio
| Portfolio determine basis | |
| Age analysis | On the basis of the actual loss rate of the portfolio of receivables with similar credit risk characteristics which are the same or similar in the previous year, for the single amount of non-material receivables, it is divided into several portfolios according to the credit risk characteristics together with the receivables without impairment after the separate test |
| Other | Bank acceptance |
In the combination, the proportion of bad debt provision withdrawn by aging analysis method is as follow:
| Account age | Accrual proportion of commercial acceptance bill receivable | Withdrawing proportion of the account receivable | Withdrawing proportion of other receivable |
| Within one year(one year included) | 0.3% | 0.3% | 0.3% |
| 1～2 years (2-year included) | 100% | 0.3% | 0.3% |
| 2～3 years (3-year included) | 100% | 0.3% | 0.3% |
| Over 3 years | 100% | 100% | 100% |
| Including: determined to be un-collectible | Write off | Write off | Write off |
(3) Account receivable with 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 【10. Financial Instrument 】
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, goodson hand, wrap page, low value consumables, materials for consigned processing and goods sold.
(2) Valuation of inventories
Inventories are initially measured at cost upon acquisition, which includes procurement costs, processing costsand other costs. The prices of inventories are calculated using weighted average method when they are delivered.
(3) Provision for inventory impairment
When a comprehensive count of inventories is done at the end of the period, provision for inventory impairment isallocated or adjusted using the lower of the cost of inventory and the net realizable value. The net realizable valueof stock in inventory (including finished products, inventory merchandize and materials for sale) that can be solddirectly is determined using the estimated saleable price of such inventory deducted by the cost of sales andrelevant taxation over the course of ordinary production and operation. The net realizable value of material ininventory that requires processing is determined using the estimated saleable price of the finished productdeducted by the cost to completion, estimated cost of sales and relevant taxation over the course of ordinaryproduction and operation. The net realizable value of inventory held for performance of sales contract or laborservice contract is determined based on the contractual price; in case the amount of inventory held exceeds thecontractual amount, the net realizable value of the excess portion of inventory is calculated using the normalsaleable price.Provision for impairment is made according to individual items of inventories at the end of the period; however,for inventories with large quantity and low unit price, the provision is made by categories; inventories of productsthat are produced and sold in the same region or with the same or similar purpose or usage and are difficult to be
measured separately are combined for provision for impairment.If the factors causing a previous write-off of inventory value has disappeared, the amount written-off is reversedand the amount provided for inventory impairment is reversed and recognized in profit or loss for the period.
(4)Inventory system
Perpetual inventory system is adopted.
16.Contract assets
1. Confirmation method and standard of contract assets
The Company lists contractual assets or contractual liabilities in the balance sheet based on the relationshipbetween performance obligations and customer payments. The Company's right to receive consideration forgoods or services transferred to the customer (And that right depends on factors other than the passage of time) islisted as contractual assets. Contractual assets and contractual liabilities under the same contract are listed as a netamount. The Company's right to receive consideration from customers unconditionally (only depends on thepassage of time) is listed separately as a receivable.
2. Determination and accounting treatment of the expected credit loss for contract assetsDetermination and accounting treatment of the expected credit loss for contract assets found more in Note “10.Financial Instrument - impairment of financial assets”
Nil
17.Contract cost
Nil
18. Assets held for sale
The Company classifies such corporate components (or non-current assets) that meet the following criteria asheld-for-sale: (1) Disposable immediately under current conditions based on similar transactions for disposals ofsuch assets or practices for the disposal group; (2) Probable disposal; that is, a decision has been made on a planfor disposal and an undertaking to purchase has been obtained (the undertaking to purchase means a bindingpurchase agreement entered into by the Company and other parties, which contains transaction price, time andadequately strict punishments for breach of contract provisions, which renders the possibility of materialadjustment or revocation of the agreement is extremely minor), and the disposal is expected to be completedwithin a year. Besides, approval from relevant competent authorities or regulatory authorities has been obtained asrequired by relevant 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 thatthe original value is higher than the adjusted expected net residual value, the difference shall be recorded in profitor loss for the period as asset impairment loss, and allowance of impairment for the asset shall be provided.Impairment loss recognized in respect of the disposal group held for sale shall be used to offset the carrying valueof the goodwill in the disposal group, and then offset the carrying value of the non-current assets within thedisposal group based on their respective proportion of their carrying value.
In respect of the non-current assets held for sale, if the net amount after their fair value less the selling expensesincreased as at the subsequent balance date, the reduced amount before will be recovered and reversed in theassets impairment loss amount recognized after being classified as held for sale, and the reversed amount will berecorded in the current profits or loss. The impairment loss on assets recognized before being classified as held forsale will not be reversed. In respect of the disposal group held for sale, if the net amount after their fair value lessthe selling expenses increased as at the subsequent balance date, the reduced amount before will be recovered andreversed in the assets impairment loss amount recognized in non-current assets after being classified as held forsale, and the reversed amount will be recorded in the current profits or loss. The reduced book value of thegoodwill as well as the impairment loss on assets recognized before the non-current assets are classified as heldfor sale will not be reversed. The subsequent reversed amount in respect of the impairment loss on assetsrecognized in the disposal group held for sale will increase the book value in proportion of the book value of eachnon-current assets (other than goodwill) in the disposal group.
In respect of loss of control in a subsidiary arising from disposal of the investment in such subsidiary, theinvestment in a subsidiary shall be classified as held for sale in its entirety in the individual financial statement ofthe parent company, and all the assets and liabilities of the subsidiary shall be classified as held for sale in theconsolidated financial statement subject to that the proposed disposal of investment in the subsidiary satisfies suchconditions as required for being classified as held for sale notwithstanding part equity investment will be retainedby the Company after such disposal.
19.Debt investment
Nil
20.Other debt investment
Nil
21.Long-term account receivable
Nil
22. Long-term equity investment
(1)Determination of investment costs
1) If it is formed by the business combination under the common control, and that the combining party takes cashpayment, transfer of non-cash assets, assumption of debts or issuance of equity securities as the consolidationconsideration, the shares of the book value of the owner’s equity obtained from the combined party on the date ofcombination in the ultimate controlling party’s consolidated financial statements shall be recognized as its initialinvestment cost. Capital reserves shall be adjusted according to the balance between the initial investment cost forlong-term equity investment and the book value of paid consolidation consideration or the total face value ofissued shares (capital premium or equity premium). If capital reserves are insufficient for offset, retained earningsshall be adjusted.As for business combination under the common control realized by the Company through several transactions, theinitial investment cost of the investment shall be determined based on the share of the carrying value of theowners’ equity of the consolidated party as calculated according to the shareholding proportion on theconsolidation date. Difference between initial investment cost and the carrying value of long-term equityinvestment before combination and the sum of carrying value of newly paid consideration for additional sharesacquired on the date of combination is to adjust capital reserve (capital premium or equity premium). If thebalance of capital reserve is insufficient, any excess is adjusted to retained earnings.
2) As for long-term equity investment formed from business combination not under common control, the fairvalue of the consolidated consideration paid shall be deemed as the initial investment cost on the acquisition date.
3) Except those ones formed by the business combination, for all items obtained by means of cash payment,actually paid acquisition costs shall be taken as the initial investment cost. For those ones obtained by the issuanceof equity securities, the fair value of the issued equity securities shall be taken as the initial investment cost. Forthose ones invested by investors, the value agreed in the investment contract or agreement shall be taken as theinitial investment cost, provided that the value agreed in the contract or agreement shall be fair.
(2)Subsequent measurement and profit or loss recognition
For a long-term equity investment where the Company can exercise control over the investee, the long-terminvestment is accounted for using the cost method in the Company’s financial statements. The equity method isadopted when the Group has joint control, or exercises significant influence on the investee.Under cost method, long term equity investment is measured at initial investment cost. Except for the priceactually paid for obtaining the investment or the cash dividends or profits declared but not yet distributed which isincluded in the consideration, the Company recognizes cash dividends or profits declared by the investee ascurrent investment gains, and determine whether there is impairment on long term investment according torelevant assets impairment policies.Under equity method, when the initial investment cost of the long-term equity investment exceeds the share of fair
value in the net identifiable assets in the investee, the difference shall be included in initial investment cost of thelong-term equity investment. When the initial investment cost is lower than the share of fair value in the netidentifiable asset in the investee, such difference is recognized in profit or loss for the period with adjustment ofcost of the long-term equity investment.Under equity method, after the Company acquires a long-term equity investment, it shall, in accordance with itsattributable share of the net profit or loss realized by the investee, recognize the investment profit or loss andadjust carrying value of the investment. The Group recognizes its share of the investee’s net profits or losses aftermaking appropriate adjustments to the investee’s net profits and losses based on the fair value of the investee’sidentifiable assets at the acquisition date, using the Group’s accounting policies and periods, and eliminating theportion of the profits or losses arising from internal transactions with its joint ventures and associates, attributableto the investing entity according to its shareholding proportion (but impairment losses for assets arising frominternal transactions shall be recognized in full). The carrying amount of the investment is reduced based on theGroup’s share of any profit distributions or cash dividends declared by the investee. The Group’s share of netlosses of the investee is recognized to the extent the carrying amount of the investment together with anylong-term interests that in substance form part of its net investment in the investee is reduced to zero, except thatthe Group has the obligations to assume additional losses. The Group adjusts the carrying amount of the long-termequity investment for any changes in owners’ equity of the investee (other than net profits or losses) and includesthe corresponding adjustments in the owners’ equity of the Group.
(3) Determination of control and significant influence on investee
Control is the power over an investee. An investor must have exposure or rights to variable returns from itsinvolvement with the investee, and the ability to use its power over the investee to affect the amount of theinvestor’s returns. Significant influence is the power to participate in the financial and operating policy decisionsof the investee but is not control or joint control with other parties over those policies
(4)Disposal of long-term equity investment
1) Partial disposal of long term investment in which control is retained
When long term investment is been partially disposed but control is retained by the company, the differencebetween disposal proceeds and carrying amount of the proportion being disposed is accounted for through profitor loss.
2) Partial disposal of long term investment in which control is lost
When long term investment is partially disposed and control is lost as a result, the carrying value of the long terminvest on the stock right, the difference between carrying amount of the part being disposed and disposal proceedsshould be recognized as profit or loss. The residual part should be treated as long term investment or otherfinancial assets according to their carrying amount. After partial disposal, if the company is able to exertsignificant influence or common control over the investee, the investment should be measured according to costmethod or equity method, in compliance with relevant accounting standards and regulations.
(5)Impairment test and provision for impairment
If there is objective evidence on the balance sheet date showing investment in subsidiaries, associates and jointventures is impaired, provision of impairment shall be made against the difference between the carrying amountand the recoverable amount of the investment.
23. Investment real estate
Measurement modeMeasured by cost methodDepreciation or amortization method
(1) Investment property including land use right which has been rented out, land use right which is held fortransfer upon appreciation and buildings which has been rented out.
(2) Investment properties are initially measured at cost and subsequently measured as per the cost pattern, andrelevant withdrawal of provision for depreciation or amortization is carried out by the same method for fixedassets and intangible assets. As of the balance sheet date, where there is any indication that an investment propertyexperiences impairment, the relevant impairment provision shall be provided for based on the difference betweenthe carrying value and the recoverable amount.
24. Fixed assets
(1) Recognition conditions
Fixed assets refer to the tangible assets for production of products, provision of labor, lease or operation, and witha service life in excess of one financial year. Fixed assets are recorded at the actual cost at the time of acquisition,and depreciation is calculated and withdrawn using the average life method from the month after they reach theintended usable state
(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% |
Nil
(3) Recognition basis, valuation and depreciation method for financial lease assetsFinance lease is determined when one or a combination of the following conditions are satisfied: (1) theownership has been transferred to the lessee when the leasing term is due; (2) the lessee has the option to purchasethe leasing asset at a price that is much lower than its fair value, so it can be reasonably determined that the lesseewill take the option at the very beginning of the lease; (3) the leasing term accounts for most time of the useful life(ordinarily accounting for 75% or higher) even if the ownership does not transfer to the lessee; (4) the presentvalue of the minimum amount of rent that the lessee has to pay at the first day of the lease amounts to 90% orhigher of its fair value at the same date; or the present value of the minimum amount of rent that the lessor collectsat the first day of the lease amounts to 90% or higher of its fair value at the same date; and/or (5) the leased assetsare of such a specialized nature that only the lessee can use them without major modifications. Fixed assetsrented-in under finance lease are recorded at the lower of fair value and the present value of the minimum leasepayment at the inception of the lease, and are depreciated following the depreciation policy for self-owned fixedassets.
25. Construction in progress
(1)When the construction in progress has reached the intended condition for use, it will be treated as fixed assetsas per the actual construction cost. If the construction in progress has reached the intended condition for use butcompletion accounting is not carried out, the construction in progress should be first treated as fixed assets as perthe estimated value. After completion accounting is carried out, the original estimated value should be adjusted asper the actual cost, but the provision for depreciation withdrawn should not be adjusted.
(2)As of the balance sheet date, where there is any indication that a construction in process experiencesimpairment, the relevant impairment provision shall be provided for based on the difference between the carryingvalue and the recoverable amount.
26. Borrowing expenses
Nil
27.Biological assets
Nil
28. Oil and gas asset
Nil
29.Right-of-use asset
Ni
30. Intangible assets
(1) Valuation method, service life and impairment test
1.Intangible assets include land use right, patent right and non-patent technology, which should be initiallymeasured at cost.
2.Intangible assets with limited service life should be amortized systematically and reasonably in their servicelives as per the expected form of realization economic benefits relating to the said intangible assets. If the form ofrealization cannot be reliably determined, the intangible assets should be amortized on a straight-line basis.
3.At the balance sheet date, when there is any indication that the intangible assets with finite useful lives may beimpaired, a provision for impairment loss is recognized on the excess of the carrying amounts of the assets overtheir recoverable amounts. Intangible assets with infinite useful lives and intangible assets not satisfying thecondition for use yet are subject to impairment test each year notwithstanding whether the assets are impaired.
(2) Internal accounting policies relating to research and development expendituresExpenditure incurred in the research phase of internal R&D shall be included in current gain/loss at the time ofoccurrence. Intangible assets recognized for expenditure in exploitation stage by satisfying the followed at sametime: ①it is technically feasible that the intangible asset can be used or sold upon completion; ②there isintention to complete the intangible asset for use or sale; ③the intangible asset can produce economic benefits,including there is evidence that the products produced using the intangible asset has a market or the intangibleasset itself has a market; if the intangible asset is for internal use, there is evidence that there exists usage for theintangible asset; ④there is sufficient support in terms of technology, financial resources and other resources inorder to complete the development of the intangible asset, and there is capability to use or sell the intangible asset;
⑤the expenses attributable to the development phase of the intangible asset can be measured reliably.
31. Impairment of long-term assets
Nil
32. Long-term expenses to be apportioned
Long-term expenses to be apportioned are booked by actual amount occurred, and apportioned evenly during thebenefit period or regulated period.In case that the long-term deferred expenses are not likely to benefit the
subsequent accounting periods, the outstanding value of the item to be amortized shall be included in currentprofit or loss in full.
33. Contract liability
The Company lists contract assets or contract liabilities in the balance sheet based on the relationship betweenperformance obligations and customer payments. The Company's obligations to transfer goods or provide servicesto customers for which consideration has been received or receivable are listed as contract liabilities. Contractassets and contract liabilities under the same contract are listed as a net amount.
34. Employee compensation
(1) Accounting treatment for short-term compensation
During the accounting period when staff providing service to the Company, the actual short-term compensationoccurred shall recognized as liabilities and reckoned into current gains/losses or relevant assets costs. Thenon-monetary welfare is measured by fair value.
(2) Accounting treatment for post-employment benefit
The Company terminates the labor relationship with an employee before the employee labor contract expires, orproposes to offer a compensation to encourage an employee to voluntarily accept the downsizing. When theCompany cannot unilaterally withdraw the labor relationship cancellation plan or the downsizing proposal norconfirm the relevant costs of the restructuring involving the payment of termination benefits, whichever is earlier,the liabilities arising from the compensation for the termination of the labor relationship with the employees arerecognized and included in the current profit and loss.
(3) Accounting for retirement benefits
When the Company terminates the employment relationship with employees before the end of the employmentcontracts or provides compensation as an offer to encourage employees to accept voluntary redundancy, theCompany shall recognize employee compensation liabilities arising from compensation for staff dismissal andincluded in profit or loss for the current period, when the Company cannot revoke unilaterally compensation fordismissal due to the cancellation of labor relationship plans and employee redundant proposals; and the Companyrecognize cost and expenses related to payment of compensation for dismissal and restructuring, whichever is
earlier.
(4) Accounting for other long-term employee benefits
The employees of the Company have participated in the basic social endowment insurance organized andimplemented by the local labor and social security department. The Company pays the endowment insurancepremium to the local basic social endowment insurance agency on a monthly basis based on the base and ratio ofthe local basic social endowment insurance payment. After the retirement of employees, the local labor and socialsecurity department has the responsibility to pay the social basic pension to the retired employees. During theaccounting period in which employees provide services, the Company recognizes the amount payable calculatedaccording to the above social security insurance regulations as the liabilities and includes them in the currentprofit and loss or related asset costs.
35.Lease liabilities
Nil
36. Accrual liability
Nil
37. Share-based payment
(1)Types of share-based payment
Share-based payment comprises of equity-settled share-based payment and cash-settled share-based payment.
(2)Determination of fair value of equity instruments
1)determined based on the price quoted in an active market if there exists active market for the instrument.
2)determined by adoption of valuation technology if there exists no active market, including by reference to therecent arm’s length market transactions between knowledgeable, willing parties, reference to the current fair valueof another instrument that is substantially the same, discounted cash flow analysis and option pricing models.
(3)Basis for determination of the best estimate of exercisable equity instruments
To be determined based on the subsequent information relating to latest change of exercisable employees.
(4)Accounting relating to implementation, amendment and termination of share-based payment schemes
1)Equity-settled share-based payment
For equity instruments that may be exercised immediately after the grant, the fair value of such instrument shall,on the date of the grant, be recognized in relevant costs or expenses with the increase in the capital reserveaccordingly. For equity-settled share-based payment made in return for the rendering of employee services that
cannot be exercised until the services are fully rendered during vesting period or specified performance targets aremet, on each balance sheet date within the vesting period, the services acquired in the current period shall, basedon the best estimate of the number of exercisable instruments, be recognized in relevant costs or expenses and thecapital reserves at the fair value of such instruments on the date of the grant.
For equity-settled share-based payment made in exchange for service from other parties, such payment shall bemeasured at the fair value of the service as of the acquisition date is the fair value can be measured reliably. And ifthe fair value of the service cannot be measured reliably while the fair value of the equity instrument can bemeasured reliably, it shall be measure at the fair value of the instrument as of the date on which the service isacquired, which shall be recorded in relevant cost or expense with increase in owners’ equity accordingly.
2)Cash-settled share-based payment
For the cash-settled share-based payment that may be exercised immediately after the grant in exchange for renderof service by employees, the fair value of the liability incurred by the Company shall, on the date of the grant, berecognized in relevant costs or expenses and the liabilities shall be increased accordingly. For cash-settledshare-based payment made in return for the rendering of employee services that cannot be exercised until theservices are fully provided during vesting period or specified performance targets are met, on each balance sheetdate within the vesting period, the services acquired in the current period shall, based on the best estimate of thenumber of exercisable instruments, be recognized in relevant costs or expenses and the corresponding liabilities atthe fair value of the liability incurred by the Company.
3)Revision and termination of share-based payment schemes
If the revision results in an increase in the fair value of the equity instruments granted, the Company shallrecognize the increase in the services rendered accordingly at the increased fair value of the equity instruments. Ifthe revision results in an increase in the number of equity instruments granted, the Company will recognize theincrease in the services rendered accordingly at the fair value of the increased number of equity instruments. If theCompany revises the vesting conditions on terms favorable to the employees, the Company will take intoconsideration of the revised vesting conditions when dealing with the vesting conditions.
If the revision results in a decrease in the fair value of the equity instruments granted, the Company shall continuerecognize the amount of services rendered accordingly at the fair value of the equity instruments on the date ofgrant without considering the decrease in the fair value of the equity instruments. If the revision results in adecrease in the number of equity instruments granted, the Company will account for such decrease by reducingpart of the cancellation of equity instruments granted. If the Company revises the vesting conditions on terms notfavorable to the employees, the Company will not take into consideration of the revised vesting conditions whendealing with the vesting conditions.
If the Company cancels the equity instruments granted or settles the equity instruments granted during the vesting
period (other than cancellation as a result of failure to satisfy the vesting conditions), such cancellation orsettlement will be treated as accelerated exercisable rights and the original amount in the remaining vesting periodwill be recognized immediately.
38. Other financial instruments including senior shares and perpetual bondsNil
39. Revenue
The Company shall comply with the disclosure requirement of “Guidelines on Industry Information Disclosure ofShenzhen Stock Exchange No. 11- Listed Company Engaged in Jewelry-related Business”
(1) Recognition of revenue
On the starting date of the contract, the company evaluates the contract, identifies each individual performanceobligation contained in the contract, and determines whether each individual performance obligation is performedwithin a certain period of time or at a certain point in time.When meeting one of the following conditions, it belongs to the performance obligation within a certain period oftime, otherwise, it belongs to the performance obligation at a certain point in time: 1) The customer obtains andconsumes the economic benefits brought by the company's performance at the same time as the companyperforms the contract; 2) The customer can control the goods or services under construction during the company'sperformance; 3) The goods or services produced during the company's performance have irreplaceable uses, andthe company has the right to collect payments for the accumulated performance part of the contract during theentire contract period .For performance obligations performed within a certain period of time, the company recognizes revenue inaccordance with the performance progress during that period of time. When the performance progress cannot bereasonably determined, if the cost incurred is expected to be compensated, the revenue shall be recognizedaccording to the amount of the cost incurred until the performance progress can be reasonably determined. Forperformance obligations performed at a certain point in time, revenue is recognized at the point when thecustomer obtains control of the relevant goods or services. When judging whether the customer has obtainedcontrol of the goods, the company considers the following signs: 1) The company has the current right to receivepayment for the goods, that is, the customer has the current payment obligation for the goods; 2) The company hastransferred the legal ownership of the goods to the customer, that is, the customer has legal ownership of thegoods; 3) The company has transferred the product to the customer in kind, that is, the customer has physicallytaken possession of the product; 4) The company has transferred the major risks and rewards of the ownership ofthe goods to the customer, that is, the customer has obtained the main risks and rewards of the ownership of thegoods; 5) the customer has accepted the goods; 6) Other signs indicate that the customer has obtained control ofthe goods.
(2) Principles of income measurement
1) The company measures income based on the transaction price allocated to each individual performanceobligation. The transaction price is the amount of consideration that the company expects to be entitled to receivedue to the transfer of goods or services to the customer, and does not include the amount collected on behalf of athird party and the amount expected to be returned to the customer.
2) If there is variable consideration in the contract, the company shall determine the best estimate of the variableconsideration based on the expected value or the amount most likely to incur, but the transaction price includingthe variable consideration shall not exceed the amount at which the accumulatively recognized income is mostlikely not be subject to a significant reversal when the relevant uncertainty is eliminated.
3) If there is a major financing component in the contract, the company shall determine the transaction price basedon the amount payable in cash when the customer assumes control of the goods or services. The differencebetween the transaction price and the contract consideration shall be amortized by the effective interest methodduring the contract period. On the starting date of the contract, if the company expects that the interval betweenthe customer's acquisition of control of the goods or services and the customer's payment of the price will notexceed one year, we will not consider the significant financing components in the contract.
4) If the contract contains two or more performance obligations, the company will allocate the transaction pricesto each individual performance obligation in accordance with the relative proportion of the stand-alone sellingprice of the goods promised by each individual performance obligation on the commencement date of contract.
(3) Specific method of revenue recognition:
In accordance with the general principles of revenue recognition and the actual situation of the company's productsales, the company formulates a specific revenue recognition method that the products sold by the company tocustomers are recognized as revenue after the products are delivered to the customer and the customer carries outacceptance and inspection.
40. Government subsidy
(1) government subsidy including those relating to assets and relating to income
(2)government grant, if granted as monetary assets, are measured at the amount received or receivable, andmeasured at fair value if granted as non-monetary assets. If the fair value can not be determined reliably, theyshall be measured at nominal value.
(3) Aggregate method for government subsidy:
1)government subsidy relating to assets are recognized as deferred income, which shall be recorded in profit orloss by installment reasonably and systematically within the useful life of the assets. If assets are sold, transferred,discarded as useless or damaged prior to expiration of the useful life, the remaining deferred income undistributedshall be transferred to profit or loss for the period in which the assets are disposed.
2)If government subsidy relating to income are used to compensate for relevant costs or loss for the subsequentperiods, they shall be recognized as deferred income, and recorded in profit or loss for the period in which therelevant costs are recognized. If government subsidy relating to income are used to compensate for the relevantcosts or loss occurred, they shall be recorded in profit or loss for the period directly.
(4)Net method for government subsidy
1) government subsidy relating to assets are used to write off the carrying value of the relevant assets;
2) If government subsidy relating to income are used to compensate for relevant costs or loss for the subsequentperiods, they shall be recognized as deferred income, and recorded in profit or loss for the period in which offsetagainst the relevant costs. If government subsidy relating to income are used to compensate for the relevant costsor loss occurred, they shall be offset against the relevant costs for the period directly.
(5)The Company adopts aggregated accounting method for the government subsidy received.
(6)As for the government subsidy comprising both portions relating to assets and income, separate accountingshall be made for different portion; in case it is hard to differentiate the portions, the grants will be recorded asrelated to income in general.
(7)The Company realizes government subsidy relating to its normal activities as other income based on thesubstance of economic business, and if not related to its normal activities, realized as non-operating income andexpenditure.
(8)Subsidized loans from preferential policy obtained by the Company are classified based on whether subsidyfunds are paid to the loaning bank or directly to the Company by the competent financial authorities and aretreated based on the following principles:
1)Where subsidy funds are paid to the loaning bank by the competent financial authorities and the bank thenprovides loans to the Company at a preferential policy rate, accounting shall be made by the Company as follows:
a. Recognizes the actual borrowing amount received as the carrying value of the loan, and calculates the relevantborrowing costs based on the principal and the preferential policy rate.b.Recognizes the fair value of the loan as the carrying value and calculates the borrowing cost under effectiveinterest method, and recognizes the difference between the actual amount received and the fair value of the loan asdeferred income. Deferred income is amortized over the term of the loan under effective interest method andoffset against the relevant borrowing costs.
2)Where subsidy funds are paid directly to the Company, the Company will offset the corresponding subsidyagainst the relevant borrowing expenses.
41. Deferred income tax assets/Deferred income tax liabilities
(1) Deferred tax assets or deferred tax liabilities are calculated and recognized based on the difference between thecarrying amount and tax base of assets and liabilities (and the difference of the carrying amount and tax base ofitems not recognized as assets and liabilities but with their tax base being able to be determined according to taxlaws) and in accordance with the tax rate applicable to the period during which the assets are expected to berecovered or the liabilities are expected to be settled.
(2)A deferred tax asset is recognized to the extent of the amount of the taxable income, which it is most likely toobtain and which can be deducted from the deductible temporary difference. At the balance sheet date, if there isany exact evidence that it is probable that future taxable profits will be available against which deductibletemporary differences can be utilized, the deferred tax assets unrecognized in prior periods are recognized.
(3)At the balance sheet date, the carrying amount of deferred tax assets is reviewed. The carrying amount of adeferred tax asset is reduced to the extent that it is no longer probable that sufficient taxable profits will beavailable to allow the benefit of the deferred tax asset to be utilized. Such reduction is subsequently reversed tothe extent that it becomes probable that sufficient taxable income will be available.
(4)The income tax and deferred tax for the period are treated as income tax expenses or income through profit orloss, excluding those arising from the following circumstances: ① business combination; and ② thetransactions or items directly recognized in equity.
42. Lease
(1)Accounting for operating lease
When the Company is the lessee, lease payments are recognized as cost or profit or loss with straight-line methodover the lease term. Initial expenses are recognized directly into profit or loss. Contingent rents are charged asprofit or loss in the periods in which they are incurred.When the Company is the lessor, lease income is recognized as profit or loss with straight-line method over thelease term. Initial expenses, other than those with material amount and eligible for capitalization which arerecognized as profit or loss by installments, are recognized directly as profit or loss. Contingent rents are chargedinto profit or loss in the periods in which they are incurred.
(2)Accounting for financing lease
When the company acts as lessee, at the inception of lease, the lower of fair value of leased assets at the inceptionof lease and the present value of minimum lease payment is recognized as the value of leased assets. The
minimum lease payment is recognized as the value of long-term payable. Their difference is recorded asunrecognized finance costs with any initial direct expense incurred recorded in the value of leased assets. For eachperiod of the lease term, current finance cost is calculated using effective interest method.
When the company acts as lessor, at the inception of lease, the sum of minimum lease income at the inception oflease and the initial direct expense is recognized as the value of finance lease payment receivable, with unsecuredbalance also recorded. The difference between the sum of minimum lease income, initial direct expense andunsecured balance and the sum of their present values is recognized as unrealized finance income. For each periodof the lease term, current finance income is calculated using effective interest method.
43. Other important accounting policy and estimation
Discontinued operation refers to the operation disposed or classified as held-for-sale by the Company andpresented separately under operation segments and financial statements, which has fulfilled one of the followingcriteria:
(1) it represents an independent key operation or key operating region;
(2) it is part of the proposed disposal plan on an independent key operation or proposed disposal in key operatingregion; or
(3) it only establishes for acquisition of subsidiary through disposal.
The enterprise shall separately list profit and loss from continuing operations and profit and loss fromdiscontinuing operations in the profit statement. For non-current assets held for sale or disposal groups that do notmeet the definition of discontinuing operations, the impairment losses and reversal amounts and disposal gainsand losses should be presented as profit or loss from continuing operations. Operational gains and losses anddisposal profits and losses such as impairment losses and reversal amounts of discontinuing operations should bereported as profits or losses of discontinuing operations.
44. 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. 21 - Lease" of the Ministry of Finance, the enterprise that are required to be listed both domestically and | Deliberated and approved by 31st session of 10th BOD | The changes in accounting policy will not have a material impact on the financial status, operation results and cash flow of the Company |
The Company applies simplified treatment to lease and chooses not to recognize the right -of-use assets and lease liability, and ineach period of lease term, charged to the cost of relevant assets or current gain/loss on a straight-line basis or other systematic andreasonable basis, no need to adjust the items of balance sheet at the beginning of the year.
(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 LeaseStandards since 2021ApplicableWhether adjusted the item of balance sheet at year-begin or not
□Yes √No
Explanation of reasons for not requiring adjustment of the items of balance sheet at beginning of the yearMainly the short-term lease and low-value assets, the Company applies simplified treatment to lease and chooses not to recognize theright -of-use assets and lease liability, and in each period of lease term, charged to the cost of relevant assets or current gain/loss on astraight-line basis or other systematic and reasonable basis, no need to adjust the items of balance sheet at the beginning of the year.
(4) Explanation on retrospective adjustment of prior period comparative data for the first implementationof new leasing standards from 2021
□Applicable √Not applicable
45. Other
nil
VI. Taxes
1. Main tax category and tax rate
internationally and enterprises that arelisted outside of China and adopt IFRS orASBE to prepare their financial statements,will be effective from January 1, 2019.Other enterprises implementing the ASBEswill be effective from 1 Jan. 2021.Tax category
| 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 | 2.5%, 10%, 15% |
| Educational surtax | Turnover tax payable | 3% |
| Local educational surtax | Turnover tax payable | 2% |
Disclose reasons for different taxpaying body
| Taxpaying body | Income tax rate |
| The Company | 15.00% |
| Shenzhen Emmelle Industry Co., Ltd. | 2.5%, 10% |
| Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd. | 2.5%, 10% |
| Shenzhen Emmelle Cloud Technology Co., Ltd. | 2.5%, 10% |
2. Tax preference
1) : The Company obtained the high-tech enterprise certificate "GR202044200651" jointly approved by the Shenzhen Science andTechnology Innovation Commission, the Shenzhen Finance Bureau, and the Shenzhen Tax Service, State Taxation Administration onDecember 11, 2020, the validity period is from 2020 to 2022. Therefore, the company enjoys a preferential tax rate of 15% in 2020.
2) : According to the "Enterprise Income Tax Law of the People's Republic of China" and its implementation regulations, the "Noticeof the State Taxation Administration and Ministry of Finance on the Implementation of Inclusive Tax Relief Policies for Small andMicro Enterprises" (CS[2019] No. 13) and Announcement of the Implementation of Preferential Income Tax Policies for Small &Micro Enterprises and Individual Entrepreneurs by the Ministry of Finance and the State Administration of Taxation (CS[2021]No.12) and other provisions, from January 1, 2021 to December 31, 2022, the portion of the annual taxable income of small,low-profit enterprises that does not exceed 1 million yuan will be included in the taxable income by 25%, and the corporate incometax will be paid at a tax rate of 20%. On the basis of this preferential policy, the tax will be halved (the effective tax rate is 2.5%);The part of annual taxable income exceeding 1 million yuan but not exceeding 3 million yuan shall be deducted by 50% and includedin the taxable income, and the enterprise income tax shall be paid at the tax rate of 20% (the effective tax rate is 10%). ShenzhenXinsen Jewelry Gold Supply Chain Co., Ltd., Shenzhen Emmelle Industry Co., Ltd., adn Shenzhen Emmelle Cloud Technology Co.,Ltd., the Company’s subsidiaries, are small and low-profit enterprises, so the above preferential tax rate is applicable to them.
3. Other
Nil
VII. Notes to Items in Consolidated Financial Statements
1. Monetary fund
In RMB
| Item | Ending balance | Opening balance |
| Cash on hand | 29,702.26 | 21,530.26 |
| Cash in bank | 17,405,190.98 | 19,866,447.79 |
| Total | 17,434,893.24 | 19,887,978.05 |
Other explanationNil
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 |
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 | |
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 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 | Other | |||
| Total | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Including important amount of bad debt provision collected or reversal in the period:
□Applicable √Not applicable
(3) Note receivable pledged at period-end
In RMB
| Item | Amount pledged at period-end |
| Total | 0.00 |
(4) Note receivable which have endorsed and discount at period-end and has not expired on balance sheetdate
In RMB
| Item | Amount derecognition at period-end | Amount not derecognition at period-end |
| Total | 0.00 | 0.00 |
(5) Notes transfer to account receivable due for failure implementation by drawer at period-end
In RMB
| Item | Amount transfer to account receivable at period-end |
| Total | 0.00 |
Other explanationNil
(6) Note receivable actually charge-off in the period
In RMB
| Item | Amount charge-off |
Including important note receivable charge-off:
In RMB
| Enterprise | Nature | Amount charge-off | Causes of charge-off | Procedure for charge-off | Amount cause by related transactions or not (Y/N) |
| Total | -- | 0.00 | -- | -- | -- |
Explanation on note receivable change-off:
Nil
5. Account receivable
(1) Category
In RMB
| Category | 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 | 6,176,655.91 | 10.43% | 3,492,318.65 | 56.54% | 2,684,337.26 | 10,400,557.65 | 17.33% | 4,821,546.38 | 46.36% | 5,579,011.27 |
| Including: | ||||||||||
| Accounts with single minor amount but with bad debts provision accrued individually | 6,176,655.91 | 10.43% | 3,492,318.65 | 56.54% | 2,684,337.26 | 10,400,557.65 | 17.33% | 4,821,546.38 | 46.36% | 5,579,011.27 |
| Account receivable with bad debt provision accrual by portfolio | 53,027,163.38 | 89.57% | 159,081.49 | 0.30% | 52,868,081.89 | 49,601,217.08 | 82.67% | 148,803.65 | 0.30% | 49,452,413.43 |
| Including: | ||||||||||
| Account receivable withdrawal bad debt provision by group of credit risk characteristics (Aging analysis method) | 53,027,163.38 | 89.57% | 159,081.49 | 0.30% | 52,868,081.89 | 49,601,217.08 | 82.67% | 148,803.65 | 0.30% | 49,452,413.43 |
| Total | 59,203,819.29 | 100.00% | 3,651,400.14 | 6.17% | 55,552,419.15 | 60,001,774.73 | 100.00% | 4,970,350.03 | 8.28% | 55,031,424.70 |
Bad debt provision accrual on single basis: Account receivable with significant single amount period-end but withdrawal bad debtprovision on single basis
In RMB
| Name | Ending balance | |||
| Book balance | Bad debt provision | Accrual ratio | Accrual causes | |
| Sichuan Wanling Electric Technology Co., Ltd. | 1,102,072.20 | 1,102,072.20 | 100.00% | Expected to be difficult to recover |
| Zhengzhou Guiguan Tech. Trade. Co., Ltd | 1,007,233.79 | 302,170.14 | 30.00% | Expected to be difficult to recover |
| Suzhou Jiaxin Economic Trade Co., Ltd. | 888,757.00 | 266,627.10 | 30.00% | Expected to be difficult to recover |
| Shijiazhuang Dasong Tech. Co., Ltd | 797,064.00 | 797,064.00 | 100.00% | Expected to be difficult to recover |
| Dongguan Daxiang New Energy Co., Ltd. | 746,734.00 | 224,020.20 | 30.00% | Expected to be difficult to recover |
| Suzhou Daming Vehicle Industry Co., Ltd. | 552,596.42 | 276,298.21 | 50.00% | Expected to be difficult to recover |
| Guangdong Xinlingjia New Energy Co., Ltd. | 348,136.00 | 104,440.80 | 30.00% | Expected to be difficult to recover |
| Suzhou Daming Vehicle Industry Co., Ltd. | 449,195.00 | 134,758.50 | 30.00% | Expected to be difficult to recover |
| Shanghai Swen Electric Vehicle Co., Ltd. | 284,867.50 | 284,867.50 | 100.00% | Expected to be difficult to recover |
| Total | 6,176,655.91 | 3,492,318.65 | -- | -- |
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: Accounts receivable with provision for bad debts by aging analysis method
In RMB
| Name | Ending balance | ||
| Book balance | Bad debt provision | Accrual ratio | |
| Within one year (one year included) | 50,855,577.44 | 152,566.73 | 0.30% |
| 1-2 years (2 years included) | 2,171,585.94 | 6,514.76 | 0.30% |
| Total | 53,027,163.38 | 159,081.49 | -- |
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, please
refer 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) | 46,671,675.70 |
| Within one year | 46,671,675.70 |
| 1-2 years | 4,659,969.93 |
| 2-3 years | 5,668,169.96 |
| Over 3 years | 2,204,003.70 |
| 3-4 years | 304,867.50 |
| 4-5 years | 1,102,072.20 |
| Over 5 years | 797,064.00 |
| Total | 59,203,819.29 |
(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 | 4,970,350.03 | 38,984.24 | 1,357,934.13 | 3,651,400.14 | ||
| Total | 4,970,350.03 | 38,984.24 | 1,357,934.13 | 3,651,400.14 | ||
Including important amount of bad debt provision collected or reversal in the period:
In RMB
| Enterprise | Amount collected or reversal | Collection way |
| Shenzhen Jiahaosong Technology Co., Ltd. | 718,081.13 | Bank transfer, payment of goods arrears |
| Shenzhen Weterui New Energy Technology Co., Ltd. | 501,291.32 | Bank transfer, payment of goods arrears |
| Total | 1,219,372.45 | -- |
After the Company sent a lawyer's letter, the other party offset arrears by part of the goods after negotiation, and the rest was paid bybank transfer. Because the customer has not paid the debt according to the time limit agreed in the contract, which is more than oneyear overdue, and the debt recovery is expected to be difficult, so the bad debt is set aside at 30% of impairment.
(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. | 19,875,160.22 | 33.57% | 59,625.48 |
| Shenzhen Yunshang Jewelry Co., Ltd. | 11,810,930.58 | 19.95% | 35,432.79 |
| Fuzhou Rongrun Jewelry Co., Ltd. | 10,254,982.87 | 17.32% | 30,764.95 |
| Xi’an Grom Trading Co., Ltd. | 5,178,103.39 | 8.75% | 15,534.31 |
| Xi’an Zhongjinpu Trading Co., Ltd. | 1,696,559.60 | 2.86% | 5,089.68 |
| Total | 48,815,736.66 | 82.45% |
(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 | 4,382,245.09 | 100.00% | 816,541.52 | 100.00% |
| Total | 4,382,245.09 | -- | 816,541.52 | -- |
Explanation on un-settlement in time for advance payment with over one year account age and major amounts:
Nil
(2) Top 5 advance payment at ending balance by prepayment object
| Enterprise | Relationship with the Company | Amount | Account age | Nature | Ratio in total advance e payment (%) |
| Shenzhen Lianzhonghe Technology Co., Ltd. | Non-related party | 1,642,320.00 | Within one year | Payment | 37.48 |
| Shenzhen Guanhong Weiye Technology Co., Ltd. | Non-related party | 721,000.00 | Within one year | Payment | 16.45 |
| Shenzhen Qunli Information Technology Co., Ltd. | Non-related party | 467,837.00 | Within one year | Payment | 10.67 |
| Shenzhen Longrui Langshi Technology Development Co., Ltd. | Non-related party | 400,000.00 | Within one year | Payment | 9.13 |
| Liancheng Kedeyi New Energy Technology Co., Ltd. | Non-related party | 322,600.00 | Within one year | Payment | 7.36 |
| Total | 3,553,757.00 | 81.09 |
Other explanation:
Nil
8. Other account receivable
In RMB
| Item | Ending balance | Opening balance |
| Other account receivable | 654,021.99 | 576,770.36 |
| Total | 654,021.99 | 576,770.36 |
(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 | Ending book balance | Opening book balance |
| Deposit or margin | 647,093.00 | 618,609.00 |
| Payment for equipment | 311,400.00 | 311,400.00 |
| Personal loan of employees | 59,396.96 | 10,396.88 |
| Total | 1,017,889.96 | 940,405.88 |
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, 2021 | 363,635.52 | 363,635.52 | ||
| January 1, 2021 balance in the current period | —— | —— | —— | —— |
| Accrued in this period | 358.54 | 358.54 | ||
| Reversal in Current Period | 126.09 | 126.09 | ||
| Balance on June 30, 2021 | 363,867.97 | 363,867.97 |
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) | 540,019.96 |
| Within one year (one year included) | 540,019.96 |
| 1-2 years | 62,000.00 |
| 2-3 years | 53,970.00 |
| Over 3 years | 361,900.00 |
| 3-4 years | 40,200.00 |
| 4-5 years | 11,700.00 |
| Over 5 years | 310,000.00 |
| Total | 1,017,889.96 |
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 | Charge-off | Other | |||
| Bad debt provision for other receivables | 363,635.52 | 358.54 | 126.09 | 363,867.97 | ||
| Total | 363,635.52 | 358.54 | 126.09 | 363,867.97 | ||
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 |
| Shenzhen Luwei Mechatronic Equipment Co., Ltd | Payment for equipment | 300,000.00 | Over 5 years | 29.47% | 300,000.00 |
| Shenzhen Gangdelong Industrial Co., Ltd. | Margin or deposit | 211,840.00 | Within one year | 20.81% | 635.52 |
| Shenye Pengji (Group) Co., Ltd. | Margin or deposit | 111,927.00 | Within one year | 10.99% | 335.78 |
| Alipay (China) Network Technology Co., Ltd. customer reserve fund | Margin or deposit | 110,000.00 | Within 3 years | 10.81% | 330.00 |
| Quick Money Payment Clearing Information Co., Ltd. Customer Reserve Fund | Margin or deposit | 30,000.00 | Within one year | 2.95% | 90.00 |
| Total | -- | 763,767.00 | -- | 75.03% | 301,391.30 |
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 involvement
NilOther explanation:
Nil
9. Inventory
Whether companies 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 | 3,231,813.44 | 3,231,813.44 | 1,298,565.61 | 1,298,565.61 | ||
| Inventory goods | 3,065,640.50 | 250,864.51 | 2,814,775.99 | 2,545,994.24 | 278,533.53 | 2,267,460.71 |
| Goods sold | 5,656.40 | 5,656.40 | ||||
| Consigned processing materials | 1,554,486.34 | 1,554,486.34 | 4,157,643.22 | 4,157,643.22 | ||
| Total | 7,851,940.28 | 250,864.51 | 7,601,075.77 | 8,007,859.47 | 278,533.53 | 7,729,325.94 |
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”
| Item | Category | Amount(yuan) | Percentage |
| Finished product | Jewelry | 1,370,407.91 | 22.08% |
| Gold jewelry | — | — | |
| Other | — | — | |
| Total | 1,370,407.91 | 22.08% | |
| Raw materials | Gold | 821,910.81 | 13.24% |
| Platinum | — | — | |
| Diamonds | 2,612,048.33 | 42.08% | |
| Total | 3,433,959.14 | 55.32% |
| Packaging | 51,215.71 | 0.83% | |
| Goods in process | 1,352,340.64 | 21.78% | |
| Total | 6,207,923.40 | 100.00% |
(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 goods | 278,533.53 | 27,669.02 | 250,864.51 | |||
| Total | 278,533.53 | 27,669.02 | 250,864.51 | |||
Nil
(3) Explanation on capitalization of borrowing costs at ending balance of inventoryNil
(4) Description of the current amortization amount of contract performance costsNil
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 has major changes and causes:
In RMB
| Item | Amount changes | Reason for change |
| 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 | Accrued in this period | Reversal in Current 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 | 期末Book balance | Impairment provision | Ending book value | 公允价值 | 预计处置费用 | 预计处置时间 |
| 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 | 3,340,005.35 | 2,652,771.13 |
| Prepaid corporate income tax | 51,574.09 | |
| Prepaid input tax | 11,080.09 | |
| Total | 3,340,005.35 | 2,715,425.31 |
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) | ||
| January 1, 2021 balance 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
15. Other creditors’ investment
In RMB
| 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 | Expected credit losses for | Expected credit losses for |
| losses over next 12 months | the entire duration (without credit impairment occurred) | the entire duration (with credit impairment occurred) | ||
| January 1, 2021 balance 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 | 折现率区间 | ||||
| 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) | ||
| January 1, 2021 balance 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 transfer
(3) Assets and liabilities resulted by long-term account receivable transfer and continues involvementOther explanation
17. Long-term equity investments
In RMB
| The | Opening | Changes in the period (+, -) | Ending | Ending |
| invested entity | balance (Book value) | 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 | Balance (Book value) | balance of impairment provision |
| I. Joint venture | |||||||||||
| Subtotal | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| II. Associated enterprise | |||||||||||
| Subtotal | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 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 | 3,612,186.01 | 3,792,133.36 |
| Total | 3,612,186.01 | 3,792,133.36 |
(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 | 1,414,480.77 | 958,593.21 | 248,254.93 | 5,581,152.91 |
| 2.Current increased | 5,272.56 | 5,272.56 | |||
| (1) Purchase | 5,272.56 | 5,272.56 | |||
| (2) Construction in process transfer-in | |||||
| (3) The increase in business |
| combination | |||||
| 3.Current decreased | |||||
| (1) Disposal or scrap | |||||
| 4.Ending balance | 2,959,824.00 | 1,414,480.77 | 958,593.21 | 253,527.49 | 5,586,425.47 |
| II. Accumulated depreciation | |||||
| 1.Opening balance | 599,364.36 | 316,423.81 | 690,963.97 | 182,267.41 | 1,789,019.55 |
| 2.Current increased | 66,596.04 | 63,651.72 | 46,751.52 | 8,220.63 | 185,219.91 |
| (1) Accrual | 66,596.04 | 63,651.72 | 46,751.52 | 8,220.63 | 185,219.91 |
| 3.Current decreased | |||||
| (1) Disposal or scrap | |||||
| 4.Ending balance | 665,960.40 | 380,075.53 | 737,715.49 | 190,488.04 | 1,974,239.46 |
| 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 | 2,293,863.60 | 1,034,405.24 | 220,877.72 | 63,039.45 | 3,612,186.01 |
| 2.Opening book value | 2,360,459.64 | 1,098,056.96 | 267,629.24 | 65,987.52 | 3,792,133.36 |
(2) Fixed assets temporary idle
In RMB
| Item | Original book value | Accumulated depreciation | Impairment provision | Book value | Note |
(3) Fixed assets leasing-out by operational lease
In RMB
| Item | Ending book value |
(4) 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 | 2,293,863.60 | 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 explanationNil
(5) Fixed assets disposal
In RMB
| Item | Ending balance | Opening balance |
Other explanationNil
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) Provision for impairment of construction in progress in the current period
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 provision | Book value | Book balance | Impairment provision | Book value | |
| 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 | 5,271,000.00 | 5,271,000.00 | |||
| 2.Current increased | |||||
| (1) Accrual | |||||
| 3.Current decreased | |||||
| (1) Disposal | |||||
| 4.Ending balance | 5,271,000.00 | 5,271,000.00 | |||
| 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 | |||||
| 2.Opening book value |
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:
1) There is no mortgage for intangible assets at the end of the period.
2) At the end of the period, no signs of impairment of intangible assets were found, and no impairment provision was made.
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 | ||
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 | ||
(2) Impairment provision of goodwill
In RMB
| The invested entity or items | Opening balance | Current increased | Current decreased | Ending balance | ||
| Accrual | Dispose | |||||
| Total | 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 assets | 793,170.75 | 3,172,682.98 | 793,170.75 | 3,172,682.98 |
| Total | 793,170.75 | 3,172,682.98 | 793,170.75 | 3,172,682.98 |
(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 | |
(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 | 793,170.75 | 793,170.75 |
(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:
Nil
31. Other non-current assets
In RMB
| Item | Ending balance | Opening balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Advance payment for house | 400,000.00 | 0.00 | 400,000.00 | 400,000.00 | 0.00 | 400,000.00 |
| Fixed increase intermediary fee | 735,849.05 | 0.00 | 735,849.05 | |||
| Total | 1,135,849.05 | 0.00 | 1,135,849.05 | 400,000.00 | 0.00 | 400,000.00 |
Other explanation:
As of June 30, 2021, 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:
(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
| 种类 | 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) | 9,071,697.05 | 8,691,337.93 |
| 1-2 years (2 years included) | 423,346.08 | 423,346.08 |
| 2-3 years (3 years included) | 487,016.93 | 487,016.93 |
| 3-4 years (4 years included) | 1,240.00 | 1,240.00 |
| 4-5 years (5 years included) | ||
| Over 5 years | 3,204.00 | 3,204.00 |
| Total | 9,986,504.06 | 9,606,144.94 |
(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:
Nil
37. Account received in advance
(1) Account received in advance
In RMB
| Item | Ending balance | Opening balance |
(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 |
| Cooperative received in advance | 9,174,311.93 | 9,174,311.93 |
| Rent received in advance | 5,306,666.67 | 5,511,111.11 |
| Goods received in advance | 2,218,170.13 | 569,290.34 |
| Total | 16,699,148.73 | 15,254,713.38 |
Book value has major changes in the period and causes
In RMB
| Item | Amount changes | Reason for change |
| Goods received in advance | 1,648,879.79 | Goods received in advance |
| Total | 1,648,879.79 | —— |
39. Wage payable
(1) Wage payable
In RMB
| Item | Opening balance | Current increased | Current decreased | Ending balance |
| I. Short-term compensation | 1,459,244.07 | 3,442,252.67 | 4,087,559.60 | 813,937.14 |
| II. Post-employment benefit-Defined contribution plan | 263,291.38 | 263,291.38 | ||
| Total | 1,459,244.07 | 3,705,544.05 | 4,350,850.98 | 813,937.14 |
(2) Short-term compensation
In RMB
| Item | Opening balance | Current increased | Current decreased | Ending balance |
| 1. Wages, bonus, allowances and subsidy | 1,452,981.20 | 3,128,974.64 | 3,773,774.72 | 808,181.12 |
| 3. Social insurance | 109,324.60 | 109,324.60 | ||
| Including: Medical insurance | 100,844.32 | 100,844.32 | ||
| Work injury insurance | 2,304.18 | 2,304.18 |
| Maternity insurance | 6,176.10 | 6,176.10 | ||
| 4. Housing accumulation fund | 167,955.60 | 167,955.60 | ||
| 5. Labor union expenditure and personnel education expense | 6,262.87 | 35,997.83 | 36,504.68 | 5,756.02 |
| Total | 1,459,244.07 | 3,442,252.67 | 4,087,559.60 | 813,937.14 |
(3) Defined contribution plan
In RMB
| Item | Opening balance | Current increased | Current decreased | Ending balance |
| 1. Basic endowment insurance | 259,342.82 | 259,342.82 | ||
| 2. Unemployment insurance | 3,948.56 | 3,948.56 | ||
| Total | 263,291.38 | 263,291.38 |
Other explanation:
At the end of the period, there were no arrears in employee compensation.
40. Taxes payable
In RMB
| Item | Ending balance | Opening balance |
| Value added tax | 698,016.27 | 551,216.66 |
| Corporate income tax | 48,403.51 | 140,959.81 |
| Individual income tax | 2,497.35 | 23,398.74 |
| Tax for maintaining and building cities | 860.57 | 431.55 |
| Stamp tax | 2,552.93 | 6,043.60 |
| Educational surtax | 614.70 | 270.66 |
| Total | 752,945.33 | 722,321.02 |
Other explanation:
Nil
41. Other account payable
In RMB
| Item | Ending balance | Opening balance |
| Other account payable | 37,658,215.37 | 37,882,805.52 |
| Total | 37,658,215.37 | 37,882,805.52 |
(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 | 18,728,866.44 | 18,728,866.44 |
| Warranty and guarantee money | 10,589,040.00 | 10,589,040.00 |
| Intercourse funds | 6,500,000.00 | 6,500,000.00 |
| Other payable service charge (intermediary services included) | 832,359.55 | 832,359.55 |
| Collection and payment | 654,997.35 | 654,997.35 |
| Other | 352,952.03 | 577,542.18 |
| Total | 37,658,215.37 | 37,882,805.52 |
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 | 18,728,866.44 | - |
| Warranty and guarantee money | 1,580,040.00 | Performance bond |
| Shenzhen Guosheng Energy Investment Development Co., Ltd. | 6,500,000.00 | Interest-free loans |
| Total | 26,808,906.44 | -- |
Other explanationNil
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 |
| Corresponding taxes of contract liability | 1,374,986.67 | 1,175,251.38 |
| Total | 1,374,986.67 | 1,175,251.38 |
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 |
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 explanationNil
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 | 0.00 | 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 | ||
| 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 | -1,200,950,240.88 | -1,204,736,075.56 |
| Retained profit at period-begin after adjustment | -1,200,950,240.88 | -1,204,736,075.56 |
| Add: net profit attributable to shareholders of parent company for this year | 1,365,493.34 | 2,797,643.50 |
| Retained profit at period-end | -1,199,584,747.54 | -1,201,938,432.06 |
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 | 49,792,562.36 | 46,176,297.27 | 36,004,701.56 | 32,454,948.30 |
| Other business | 4,337,755.24 | 2,413,822.85 | 6,651,653.65 | 3,645,817.35 |
| Total | 54,130,317.60 | 48,590,120.12 | 42,656,355.21 | 36,100,765.65 |
Revenue:
In RMB
| Contract type | 1# Division | 2# Division | Total | |
| Product type | 40,728,749.57 | 13,401,568.03 | 54,130,317.60 | |
| Including: | ||||
| Jewelry Gold | 40,728,749.57 | 40,728,749.57 | ||
| Bicycle lithium battery materials and other | 13,401,568.03 | 13,401,568.03 | ||
| Including: | ||||
| Including: | ||||
| Including: | ||||
| Including: | ||||
| Including: | ||||
| Including: |
Information relating to performance obligation:
NilInformation relating to the transaction price assigned to the remaining performance obligation:
The amount of revenue corresponding to performance obligation that have been signed but have not been fulfilled or have not beenfulfilled at the end of the period was 0.00 Yuan, including 0.00 Yuan is expected to be recognized as revenue in subsequent years,
0.00 Yuan is expected to be recognized as revenue in subsequent years, 0.00 Yuan is expected to be recognized as revenue insubsequent years.Other explanationNil
62. Tax and extras
In RMB
| Item | Current Period | Last Period |
| Tax for maintaining and building cities | 10,660.81 | 432.52 |
| Educational surtax | 7,614.86 | 308.94 |
| Stamp tax | 22,989.10 | 19,157.58 |
| Total | 41,264.77 | 19,899.04 |
Other explanation:
Nil
63. Sales expenses
In RMB
| Item | Current Period | Last Period |
| Salary and Social Security Provident Fund | 483,485.38 | 654,651.76 |
| Expenses of network sales | 277,385.45 | 420,049.56 |
| Other | 115,318.30 | 403,677.46 |
| Total | 876,189.13 | 1,478,378.78 |
Other explanation:
Nil
64. Administrative expenses
In RMB
| Item | Current Period | Last Period |
| Salary and Social Security Provident Fund | 1,860,932.66 | 1,474,643.26 |
| Other | 758,184.82 | 205,076.18 |
| Total | 2,619,117.48 | 1,679,719.44 |
Other explanation:
Nil
65. R&D expenses
In RMB
| Item | Current Period | Last Period |
| Salary and Social Security Provident Fund | 1,564,057.10 | 753,742.20 |
| Factory rent and utilities | 253,115.15 | |
| Depreciation of fixed assets | 46,628.10 | |
| Other | 256,589.20 | |
| Total | 2,120,389.55 | 753,742.20 |
Other explanation:
Nil
66. Financial expenses
In RMB
| Item | Current Period | Last Period |
| Interest income | -74,408.45 | -31,929.72 |
| Commission charge etc. | 24,985.94 | 12,669.33 |
| Total | -49,422.51 | -19,260.39 |
Other explanation:
Nil
67. Other income
In RMB
| Sources | Current Period | Last Period |
| Individual tax withholding fee | 2,516.00 | 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 | -232.47 | 849.07 |
| Bad debt losses of accounts receivable | 1,318,949.89 | 169,538.78 |
| Total | 1,318,717.42 | 170,387.85 |
Other explanation:
Nil
72. Losses of devaluation of asset
In RMB
| Item | Current Period | Last Period |
| II. Loss of inventory falling price and loss of contract performance cost impairment | 27,669.02 | |
| Total | 27,669.02 |
Other explanation:
Nil
73. Income from assets disposal
In RMB
| Sources | Current Period | Last Period |
| Dispose income of fixed assets | 24,936.44 |
74. Non-operating income
In RMB
| Item | Current Period | Last Period | Amount reckoned in current non-recurring gains/losses |
| 政府补助 | 300,000.00 | 300,000.00 | |
| Other | 157,664.40 | 744,788.91 | 157,664.40 |
| Total | 457,664.40 | 744,788.91 | 457,664.40 |
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 |
| High-tech enterprise recognition support fund | Science and Technology Innovation Bureau of Luohu District, Shenzhen | Subsidy | Subsidies received due to compliance with local government investment | N | N | 300,000.00 | 0.00 | Income-related |
Other explanation:
Nil
75. Non-operating expenses
In RMB
promotionand otherlocal supportpolicies
Item
| Item | Current Period | Last Period | Amount reckoned in current non-recurring gains/losses |
| Other | 2,676.80 | 0.00 | |
| Total | 2,676.80 | 0.00 |
Other explanation:
Nil
76. Income tax expenses
(1) Income tax expenses
In RMB
| Item | Current Period | Last Period |
| Current income tax expense | 161,386.48 | 107,598.95 |
| Deferred income tax expense | 62,439.81 | |
| Total | 161,386.48 | 170,038.76 |
(2) Adjustment on accounting profit and income tax expenses
In RMB
| Item | Current Period |
| Total Profit | 1,739,225.90 |
| Income tax measured by statutory/applicable tax rate | 161,386.48 |
| Income tax expenses | 161,386.48 |
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, rent, utilities, etc. | 1,443,148.59 | 2,356,618.56 |
| Deposit, security deposit, advance payment received | 6,200,000.00 | 10,556,000.00 |
| Government subsidy | 300,000.00 | |
| Other | 788,879.22 | 2,094,036.84 |
| Total | 8,732,027.81 | 15,006,655.40 |
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 |
| Deposits and security deposits paid | 6,000,000.00 | 4,000,000.00 |
| Payment of period expenses, operating expenses and common debts, etc. | 4,660,629.28 | 6,968,482.31 |
| Total | 10,660,629.28 | 10,968,482.31 |
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 |
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 |
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 | 1,577,839.42 | 3,420,613.90 |
| Add: Assets impairment provision | -1,346,386.44 | -170,387.85 |
| Depreciation of fixed assets, consumption of oil assets and depreciation of productive biology assets | 185,219.91 | 200,112.95 |
| Depreciation of right-of-use assets | ||
| Amortization of intangible assets | 376,500.00 | |
| Amortization of long-term deferred expenses | ||
| Loss from disposal of fixed assets, intangible assets and other long-term assets (gain is listed with “-”) | -24,936.44 | |
| Losses on scrapping of fixed assets (gain is listed with “-”) | ||
| Gain/loss of fair value changes (gain is listed with “-”) | ||
| Financial expenses (gain is listed |
| with “-”) | ||
| Investment loss (gain is listed with “-”) | ||
| Decrease of deferred income tax asset ((increase is listed with “-”) | 62,439.81 | |
| Increase of deferred income tax liability (decrease is listed with “-”) | ||
| Decrease of inventory (increase is listed with “-”) | 128,250.17 | 1,952,473.39 |
| Decrease of operating receivable accounts (increase is listed with “-”) | -4,177,306.87 | -8,239,522.04 |
| Increase of operating payable accounts (decrease is listed with “-”) | 1,185,256.99 | 3,773,102.22 |
| Other | ||
| Net cash flows arising from operating activities | -2,447,126.82 | 1,350,395.94 |
| 2. Material investment and financing not involved in cash flow | -- | -- |
| Conversion of debt into capital | ||
| Switching Company bonds due within one year | ||
| financing lease of fixed assets | ||
| 3. Net change of cash and cash equivalents: | -- | -- |
| Balance of cash at period end | 17,434,893.24 | 12,214,263.85 |
| Less: Balance of cash equivalent at year-begin | 19,887,978.05 | 6,074,367.91 |
| Add: Balance at year-end of cash equivalents | ||
| Less: Balance at year-begin of cash equivalents | ||
| Net increase of cash and cash equivalents | -2,453,084.81 | 6,139,895.94 |
(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 |
| I. Cash | 17,434,893.24 | 19,887,978.05 |
| Including: Cash on hand | 29,702.26 | 21,530.26 |
| Bank deposit available for payment at any time | 17,405,190.98 | 19,866,447.79 |
| Ⅲ. Balance of cash and cash equivalent at period-end | 17,434,893.24 | 19,887,978.05 |
Other explanation:
Nil
80. Notes of changes of owners’ equity
Explain the name and adjusted amount in “Other” at end of last period:
Nil
81. Assets with ownership or use right restricted
In RMB
| Item | Ending book value | Restriction reasons |
| Total | 0.00 | -- |
Other explanation:
Nil
82. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
| Item | Ending foreign currency balance | Convert rate | Ending RMB balance converted |
| Monetary fund | -- | -- | |
| Including: USD | |||
| EURO | |||
| HKD | |||
| Account receivable | -- | -- | |
| Including: USD | |||
| EURO | |||
| HKD | |||
| Long-term loans | -- | -- | |
| Including: USD | |||
| EURO | |||
| HKD | |||
Other explanation:
Nil
(2) Explanation on foreign operational entity, including as for the major foreign operational entity,disclosed main operation place, book-keeping currency and basis for selection; if the book-keepingcurrency changed, explain reasons
□Applicable √Not applicable
83. Hedging
Disclosed hedging items and relevant hedging instrument based on hedging’s category, disclosed qualitative and quantitativeinformation for the arbitrage risks:
Nil
84. Government grants
(1) Government grants
In RMB
| Category | Amount | Item | Amount reckoned into current gains/losses |
| High-tech enterprise recognition support fund | 300,000.00 | Non-operating income | 300,000.00 |
(2) Government grants rebate
□Applicable √Not applicable
Other explanation:
Nil
85. Other
Nil
VIII. Changes of consolidation range
1. Enterprise combined under different control
(1) Enterprise combined under different control in the Period
In RMB
| Acquiree | Time point for equity obtained | Cost of equity obtained | Ratio of equity obtained | Acquired way Equity obtained way | Purchasing date | Standard to determine the purchasing date | Income of acquiree from purchasing date to period-end | Net profit of acquiree from purchasing date to period-end |
Other explanation:
Nil
(2) Combination cost and goodwill
In RMB
| Combination cost |
Determination method for fair value of the combination cost and contingent consideration and changes:
NilMain reasons for large goodwill resulted:
NilOther explanation:
Nil
(3) Identifiable assets and liability on purchasing date under the acquiree
In RMB
| Fair value on purchasing date | Book value on purchasing date | |
Determination method for fair value of the identifiable assets and liabilities:
NilContingent liability of the acquiree bear during combination:
NilOther explanation:
Nil
(4) Gains or losses arising from re-measured by fair value for the equity held before purchasing dateWhether it is a business combination realized by two or more transactions of exchange and a transaction of obtained control rights inthe Period or not
□Yes √No
(5) On purchasing date or period-end of the combination, combination consideration or fair value ofidentifiable assets and liability for the acquiree are un-able to confirm rationallyNil
(6) Other explanation
Nil
2. Enterprise combine under the same control
(1) Enterprise combined under the same control in the Period
In RMB
| Combined party | Equity ratio obtained in combination | Basis of combined under the same control | Combination date | Standard to determine the combination date | Income of the combined party from period-begin of combination to the | Net profit of the combined party from period-begin of combination to the | Income of the combined party during the comparison period | Net profit of the combined party during the comparison period |
| combination date | combination date |
Other explanation:
(2) Combination cost
In RMB
| Combination cost |
Explanation on contingent consideration and its changes:
Other explanation:
(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:
Other explanation:
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 transaction
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 information:
6. Other
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 Industry 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 | |
| Shenzhen Emmelle Cloud Technology Co., Ltd. | Shenzhen | Shenzhen | Software and information technology service sales | 49.00% | 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 rights:
Subsidiary of the Company-Shenzhen Emmelle Industry Co., Ltd. (with 70% equity held by the Company) holds 70% equity ofShenzhen Emmelle Cloud Technology Co., Ltd.Controlling 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 | 30.00% | -129,838.34 | 1,463,235.67 |
| Industry Co., Ltd. | ||||
| Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd. | 35.00% | 405,941.59 | 12,943,996.76 | |
| Shenzhen Emmelle Cloud Technology Co., Ltd. | 51.00% | -63,757.17 | 542,172.35 |
Explanation on share-holding ratio of minority different from ratio of voting right:
NilOther explanation:
Subsidiary of the Company-Shenzhen Emmelle Industry Co., Ltd. (with 70% equity held by the Company) holds 70% equity ofShenzhen Emmelle Cloud Technology Co., Ltd.
(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 Industry Co., Ltd. | 12,115,698.50 | 2,368,134.13 | 14,483,832.63 | 9,606,380.42 | 9,606,380.42 | 12,402,502.99 | 2,418,250.69 | 14,820,753.68 | 9,510,506.99 | 0.00 | 9,510,506.99 | |
| Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd. | 45,037,424.78 | 36,552.02 | 45,073,976.80 | 9,498,271.75 | 9,498,271.75 | 44,211,849.29 | 36,552.02 | 44,248,401.31 | 9,832,529.38 | 0.00 | 9,832,529.38 | |
| Shenzhen Emmelle Cloud Technology Co., Ltd. | 3,636,331.59 | 3,636,331.59 | 1,749,719.14 | 1,749,719.14 | 2,037,694.53 | 0.00 | 2,037,694.53 | 26,068.02 | 0.00 | 26,068.02 | ||
In RMB
| Subsidiary | Current Period | Last Period |
| Operation revenue | Net profit | Total comprehensive income | Cash flow from operation activity | Operation revenue | Net profit | Total comprehensive income | Cash flow from operation activity | |
| Shenzhen Emmelle Industry Co., Ltd. | 773,553.50 | -432,794.48 | -432,794.48 | -20,947.65 | 1,638,684.75 | 363,445.66 | 363,445.66 | -2,879,621.36 |
| Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd. | 40,728,749.57 | 1,159,833.12 | 1,159,833.12 | -358,689.39 | 25,097,387.76 | 1,468,390.57 | 1,468,390.57 | -9,359,387.83 |
| Shenzhen Emmelle Cloud Technology Co., Ltd. | 332,743.53 | -125,014.06 | -125,014.06 | -1,476,987.94 |
Other explanation:
Nil
(4) Major restriction on using corporate assets and liquidate corporate debts
Nil
(5) Financial or other supporting provided to structuring entity that included in consolidated financialstatementNilOther explanation:
Nil
2. Transaction that has owners equity shares changed in subsidiary but still with controlling rights
(1) Owners equity shares changed in subsidiary
Nil
(2) Impact on minority’s interest and owners’ equity attributable to parent company
In RMB
Other explanationNil
3. Equity in joint venture and associated enterprise
(1) Important joint venture or associated enterprise
| Joint venture or associated enterprise | Main operation place | Registered place | Business nature | Share-holding ratio | Accounting treatment | |
| Directly | Indirectly | |||||
Share-holding ratio or shares enjoyed different from voting right ratio:
NilBasis of the voting rights with 20% below but with major influence, or without major influence but with over 20% (20% included)voting rights hold:
Nil
(2) Main financial information of the important joint venture
In RMB
| Ending balance/Current Period | Opening balance/Last Period | |
Other explanationNil
(3) Main financial information of the important associated enterprise
In RMB
| Ending balance/Current Period | Opening balance/Last Period | |
Other explanationNil
(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 explanationNil
(5) Assets transfer ability has major restriction from joint venture or associated enterpriseNil
(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 explanationNil
(7) Un-confirmed commitment with investment concerned with joint ventureNil
(8) Contingent liability with investment concerned with joint venture or associated enterpriseNil
4. Co-runs operation
| Name | Main operation place | Registered place | Business nature | Share-holding ratio/share enjoyed | |
| Directly | Indirectly | ||||
Share-holding ratio or shares enjoyed different from voting right ratio:
NilIf the co-runs entity is the separate entity, basis of the co-runs classificationNilOther explanationNil
5. Equity in structuring entity that excluding in the consolidated financial statement
Relevant explanationNil
6. Other
NilX. Risk related with financial instrumentThe major financial instruments of the Company consist of monetary fund, account receivable, other account receivable, accountpayable and other account payable, etc. details of these financial instruments are disclosed in the relevant notes. Risks relating tothese financial instruments and risk management policies adopted by the Company to minimize these risks are detailed as follows.Management of the Company manages and monitors the risk exposures, to make sure they are under control.
1. Risk management targets and policies
The objectives of the Company’s risk management is to balance the risk and income, reduce the negative risk impact of operatingperformance to the lowest level, maximize the interests of shareholders and other equity investors. Based on these objectives, theCompany has established risk management policies to identify and analyze the risks faced by the Company, set adequate riskacceptable level and designed relevant internal control system to monitor the level of risks. The Company regularly reviews thesepolicies and related internal control system to adapt to market development and change of operating activities of the Company. Themajor risks arising from 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 of performance obligation ofanother party.Credit risk of the Company is managed by category. Credit risk mainly arises from bank deposits and trade receivables. Since thebank deposits of the Company are mainly placed with those banks of high credit rating, the Company expects no significant creditrisk on bank deposits.As for trade receivables, the Company establishes relevant policies to control credit risk exposure. The Company, based on financialposition of debtors, their credit records, market conditions and other factors, makes assessment on debtors’ credit quality and setsrelevant limit on amount of debt and credit term. The maximum credit risk exposure assumed by the Company equals to the sum ofcarrying value of every financial asset in the balance sheet. The Company provides no guarantee that may lead it to be exposed tocredit risks.
(2) Liquidity risk
Liquidity risk refers to the risk of capital shortage of the Company when performing settlement obligation via delivery of cash orother financial assets.When managing liquidity risk, the Company maintains and monitors such cash and cash equivalents as deemed adequate by themanagement, so as to satisfy its operation needs and minimize influence of fluctuation of cash flow. Management of the Companymonitors application of bank borrowings to make sure it complies with relevant borrowing agreements.
2. Capital management
The capital management policy of the Company is designed to ensure sustainable operation Of the Company so as to bringshareholders return and benefit other stakeholders, and to minimize capital cost by maintaining optimal capital structure.
In order to maintain and adjust capital structure, the Company may adjust share dividend paid to shareholders or issue new shares.The Company monitors capital structure based on gearing ratio (total liabilities divided by total assets). As at 30 June 2021, thegearing ratio of the Company was 71.20 % (31 December 2020: 72.05%)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-order
Nil
3. Valuation technique and qualitative and quantitative information on major parameters for the fair valuemeasure sustaining and non-persistent on second-order
Nil
4. Valuation technique and qualitative and quantitative information on major parameters for the fair valuemeasure sustaining and non-persistent on third-orderNil
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 explanationNil
4. Other related party
| Other related party | Relationship with the Company |
| Shenzhen Guosheng Energy Investment Development Co., Ltd. | The first majority shareholder |
Other explanation
11.52 percent shares of the Company are held by Shenzhen Guosheng Energy Investment Development Co., Ltd.
5. Related transaction
(1) Goods purchasing, labor service providing and receiving
Goods purchasing/labor service receiving
In RMB
| Related party | Transaction content | Current Period | Approved transaction amount | Whether more than the transaction amount | Last Period |
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/outsourcing
Trusteeship/contract
In RMB
| Client/ contract-out party | Entrusting party/ contractor | Assets type | Starting date | Maturity date | Yield pricing basis | Income from trusteeship/contract |
Explanation on related trusteeship/contractNilDelegated administration/outsourcing
In RMB
| Client/ contract-out party | Entrusting party/ contractor | Assets type | Starting date | Maturity date | Pricing basis of trustee fee/outsourcing fee | Trustee fee/outsourcing fee recognized in the Period |
Explanation on related administration/outsourcingNil
(3) Related lease
As a lessor for the Company:
In RMB
| Lessee | Assets type | Lease income in recognized in the Period | Lease income in recognized last the Period |
As a lessee for the Company:
In RMB
| Lessor | Assets type | Lease income in recognized in the Period | Lease income in recognized last the Period |
Explanation on related leaseNil
(4) Related guarantee
As a guarantor for the Company
In RMB
| Secured party | Amount guarantee | Starting date | Maturity date | Guarantee completed (Y/N) |
As a secured party for the Company
In RMB
| Guarantor | Amount guarantee | Starting date | Maturity date | Guarantee completed (Y/N) |
Explanation on related guaranteeNil
(5) Borrowed funds of related party
In RMB
| Related party | Borrowed funds | Starting date | 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 | 789,400.00 | 728,400.00 |
(8) Other related transactions
Nil
6. Receivable/payable items of related parties
(1) Receivable item
In RMB
| Item | Related party | Ending balance | Opening balance | ||
| Book balance | Bad debt provision | Book balance | Bad debt provision | ||
(2) Payable item
In RMB
| Item | Related party | Ending book balance | Opening book balance |
| Other account payable | Shenzhen Guosheng Energy Investment Development Co., Ltd. | 6,500,000.00 | 6,500,000.00 |
7. Commitments of related party
Nil
8. Other
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 reasonsThe 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
NilXVI. 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
3. Assets replacement
(1) Non-monetary assets change
(2) Other assets replacement
4. Pension plan
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 explanation
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 to the account 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 | 40,728,749.57 | 13,401,568.03 | 54,130,317.60 | |
| Main business cost | 37,322,674.70 | 11,267,445.42 | 48,590,120.12 | |
| The total profit | 1,321,219.59 | 418,006.31 | 1,739,225.90 | |
| Income tax expense | 161,386.47 | 0.01 | 161,386.48 | |
| Net profit | 1,159,833.12 | 418,006.30 | 1,577,839.42 | |
| Total assets | 45,073,976.80 | 69,392,269.33 | 19,960,379.73 | 94,505,866.40 |
| Total liabilities | 9,498,271.75 | 57,787,465.55 | 67,285,737.30 | |
| Shareholders' equity Total | 35,575,705.05 | 11,604,803.78 | 19,960,379.73 | 27,220,129.10 |
(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 | 3,440,055.79 | 13.42% | 1,032,016.74 | 30.00% | 2,408,039.05 | 7,503,671.53 | 28.23% | 2,251,101.47 | 30.00% | 5,252,570.06 |
| Including: | ||||||||||
| Accounts with single minor amount but with bad debts provision accrued individually | 3,440,055.79 | 13.42% | 1,032,016.74 | 30.00% | 2,408,039.05 | 7,503,671.53 | 28.23% | 2,251,101.47 | 30.00% | 5,252,570.06 |
| Account receivable with bad debt provision accrual by portfolio | 22,187,469.22 | 86.58% | 66,562.40 | 0.30% | 22,120,906.82 | 19,079,604.72 | 71.77% | 57,238.82 | 0.30% | 19,022,365.90 |
| Including: | ||||||||||
| Account receivable withdrawal bad debt provision by group of credit risk characteristics (Aging analysis method) | 22,187,469.22 | 86.58% | 66,562.40 | 0.30% | 22,120,906.82 | 19,079,604.72 | 71.77% | 57,238.82 | 0.30% | 19,022,365.90 |
| Total | 25,627,525.01 | 100.00% | 1,098,579.14 | 4.29% | 24,528,945.87 | 26,583,276.25 | 100.00% | 2,308,340.29 | 8.68% | 24,274,935.96 |
Bad debt provision accrual on single basis: Account receivable with significant single amount period-end but withdrawal bad debtprovision on single basis
In RMB
| Name | Ending balance | |||
| Book balance | Bad debt provision | Accrual ratio | Accrual causes | |
| Zhengzhou Guiguan Tech. Trade. Co., Ltd | 1,007,233.79 | 302,170.14 | 30.00% | Expected to be difficult to recover |
| Dongguan Daxiang New Energy Co., Ltd. | 746,734.00 | 224,020.20 | 30.00% | Expected to be difficult to recover |
| Suzhou Jiaxin Economic Trade Co., Ltd. | 888,757.00 | 266,627.10 | 30.00% | Expected to be difficult to recover |
| Guangdong Xinlingjia New Energy Co., Ltd. | 348,136.00 | 104,440.80 | 30.00% | Expected to be difficult to recover |
| Suzhou Daming Vehicle Industry Co., Ltd. | 449,195.00 | 134,758.50 | 30.00% | Expected to be difficult to recover |
| Total | 3,440,055.79 | 1,032,016.74 | -- | -- |
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: Account receivable withdrawal bad debt provision by group of credit risk characteristics(Aging analysis method)
In RMB
| Name | Ending balance | ||
| Book balance | Bad debt provision | Accrual ratio | |
| Within one year (one year included) | 20,015,883.28 | 60,047.64 | 0.30% |
| 1-2 years (2 years included) | 2,171,585.94 | 6,514.76 | 0.30% |
| Total | 22,187,469.22 | 66,562.40 | -- |
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) | 20,015,883.28 |
| Within one year | 20,015,883.28 |
| 1-2 years | 5,611,641.73 |
| Over 3 years | 0.00 |
| Total | 25,627,525.01 |
(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 | 2,308,340.29 | 37,561.98 | 1,247,323.13 | 1,098,579.14 | ||
| Total | 2,308,340.29 | 37,561.98 | 1,247,323.13 | 1,098,579.14 | ||
Including important amount of bad debt provision collected or reversal in the period:
In RMB
| Enterprise | Amount collected or reversal | Collection way |
| Shenzhen Jiahaosong Technology Co., Ltd. | 718,081.13 | Bank transfer, payment of goods arrears |
| Shenzhen Weterui New Energy Technology Co., Ltd. | 501,291.32 | Bank transfer, payment of goods arrears |
| Total | 1,219,372.45 | -- |
After the Company sent a lawyer's letter, the other party offset arrears by part of the goods after negotiation, and the rest was paid bybank transfer. Because the customer has not paid the debt according to the time limit agreed in the contract, which is more than oneyear overdue, and the debt recovery is expected to be difficult, so the bad debt is set aside at 30% of impairment.
(3) Account receivables actually charge-off during the reporting period
In RMB
| Item | Amount charge-off |
Including major account receivables charge-off:
In RMB
| Enterprise | Nature | Amount charge-off | Causes of charge-off | Procedure for charge-off | Amount cause by related transactions or not (Y/N) |
| Total | -- | 0.00 | -- | -- | -- |
Explanation on account receivable charge-off:
Nil
(4) Top five account receivables collected by arrears party at ending balance
In RMB
| Name | Ending balance of accounts receivable | Proportion of total closing balance of accounts receivable | Ending balance of bad bet provision |
| Guangshui Jiaxu Energy Technology Co., Ltd. | 19,875,160.22 | 77.55% | 59,625.48 |
| Hubei Testun Electronic Technology Co., Ltd. | 1,045,000.00 | 4.08% | 3,135.00 |
| Zhengzhou Guiguan Tech. Trade. Co., Ltd | 1,007,233.79 | 3.93% | 302,170.14 |
| Suzhou Jiaxin Economic Trade Co., Ltd. | 888,757.00 | 3.47% | 266,627.10 |
| Dongguan Daxiang New Energy Co., Ltd. | 746,734.00 | 2.91% | 224,020.20 |
| Total | 23,562,885.01 | 91.94% |
(5) Account receivable derecognition due to transfer of financial assets
Nil
(6) Assets and liability resulted by account receivable transfer and continuous involvementNilOther explanation:
Nil
2. Other account receivable
In RMB
| Item | Ending balance | Opening balance |
| Other account receivable | 129,953.19 | 115,263.05 |
| Total | 129,953.19 | 115,263.05 |
(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:
Nil
(3) Other account receivable
1) By nature
In RMB
| Account nature | Ending book balance | Opening book balance |
| Deposit or margin | 106,263.00 | 105,713.00 |
| Payment for equipment | 11,400.00 | 11,400.00 |
| Reserve fund | 24,846.88 | 10,396.88 |
| Total | 142,509.88 | 127,509.88 |
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, 2021 | 12,246.83 | 12,246.83 | ||
| January 1, 2021 balance in the current period | —— | —— | —— | —— |
| Accrued in this period | 309.86 | 309.86 | ||
| Balance on June 30, 2021 | 12,556.69 | 12,556.69 |
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) | 128,609.88 |
| Within one year (one year included) | 128,609.88 |
| 1-2 years | 2,000.00 |
| Over 3 years | 11,900.00 |
| 3-4 years | 200.00 |
| 4-5 years | 11,700.00 |
| Total | 142,509.88 |
3）Bad debt provision accrual, collected or reversal in the periodAccrual 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 other receivables | 12,246.83 | 309.86 | 12,556.69 | |||
| Total | 12,246.83 | 309.86 | 12,556.69 | |||
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 2 years | 42.26% | 180.67 |
| Huang Zeqi | Reserve fund | 20,000.00 | Within one year | 14.03% | 60.00 |
| Chen Yanjun | Reserve fund | 15,000.00 | Within one year | 10.52% | 45.00 |
| Shenzhen Hongkang Instrument Technology Co., Ltd. | Payment for equipment | 11,400.00 | 4-5 years | 8.00% | 11,400.00 |
| Shenzhen Pengji Property Management Service Co., Ltd. | Deposit or margin | 10,441.00 | Within 2 years | 7.33% | 31.32 |
| Total | -- | 117,063.00 | -- | 82.14% | 11,716.99 |
6) Account receivable with government grants involved
In RMB
| Enterprise | Government grants | Ending Balance | Ending account age | Time, amount and basis of amount collection estimated |
Nil
7) Other account receivable derecognition due to financial assets transfer
Nil
8) Assets and liability resulted by other account receivable transfer and continuous involvementNilOther explanation:
Nil
3. Long-term equity investment
In RMB
| Item | Ending balance | Opening balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Investment for subsidiary | 21,350,000.00 | 1,389,620.27 | 19,960,379.73 | 21,350,000.00 | 1,389,620.27 | 19,960,379.73 |
| Total | 21,350,000.00 | 1,389,620.27 | 19,960,379.73 | 21,350,000.00 | 1,389,620.27 | 19,960,379.73 |
(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 Industry Co., Ltd. | 10,379.73 | 10,379.73 | 1,389,620.27 | ||||
| Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd. | 19,950,000.00 | 19,950,000.00 | |||||
| Total | 19,960,379.73 | 0.00 | 0.00 | 0.00 | 0.00 | 19,960,379.73 | 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 | 8,037,060.02 | 8,099,218.05 | 9,271,106.93 | 8,988,379.05 |
| Other business | 4,341,623.90 | 2,413,822.85 | 6,679,717.49 | 3,645,817.35 |
| Total | 12,378,683.92 | 10,513,040.90 | 15,950,824.42 | 12,634,196.40 |
Revenue:
In RMB
| Contract type | 1# Division | 2# Division | Total | |
| Including: | ||||
| Including: | ||||
| Including: | ||||
| Including: | ||||
| Including: | ||||
| Including: | ||||
| Including: |
Information relating to performance obligation:
NilInformation relating to the transaction price assigned to the remaining performance obligation:
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 |
| Governmental subsidy reckoned into current gains/losses (not including the subsidy | 300,000.00 |
| enjoyed in quota or ration according to national standards, which are closely relevant to enterprise’s business) | ||
| Switch back of the impairment provision for account receivable with impairment test on single basis and contract assets | 1,357,466.13 | |
| Other non-operating income and expenditure except for the aforementioned items | 157,664.40 | |
| （-）Impact on minority shareholders’ equity | 33,042.90 | |
| Total | 1,782,087.63 | -- |
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 | 11.78% | 0.0025 | 0.0025 |
| Net profits belong to common stock stockholders of the Company after deducting nonrecurring gains and losses | -3.60% | -0.0008 | -0.0008 |
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 organ
4. Other
Board of Directors of
Shenzhen China Bicycle Company (Holdings) Limited
25 August 2021