SHENZHEN CEREALS HOLDINGS CO.,LTD.
SEMI-ANNUAL REPORT 2022
【August 2022】
Section I. Important Notice, Contents and Interpretation
Board of Directors, Supervisory Committee, all directors, supervisors and senior executives ofSHENZHEN CEREALS HOLDINGS CO.,LTD. (hereinafter referred to as the Company)hereby confirm that there are no any fictitious statements, misleading statements, orimportant omissions carried in this report, and shall take all responsibilities, individualand/or joint, for the reality, accuracy and completion of the whole contents.
Person in charge of the Company Hu Xianghai, Head of Accounting Lu Yuhe and Head ofAccounting Institution (Accounting Supervisors) Wen Jieyu hereby confirm that theFinancial Report of Semi-Annual Report 2022 is authentic, accurate and complete.
All Directors are attended the Board Meeting for deliberation of this Report.
Concerning the forward-looking statements with future planning involved in the semi-annualreport, they do not constitute a substantial commitment for investors, Securities Times, ChinaSecurities Journal, Hong Kong Commercial Daily and Juchao Website (www.cninfo.com.cn)are the media appointed by the Company for information disclosure, all information of theCompany disclosed in the above mentioned media should prevail. Investors are advised toexercise caution of investment risks.
The Company has analyzed the risk factors that the Company may exist and itscountermeasures in the report, investors are advised to pay attention to read “Risks andCountermeasures”in the report of Section III-Management Discussion and Analysis. Thisreport has been prepared in Chinese and English version respectively. In the event ofdifference in interpretation between the two versions, Chinese report shall prevail.
The Company plans not to distributed cash dividend, bonus and no capitalizing of commonreserves either.
Contents
Section I Important Notice, Contents and Interpretation..................................................................................................................................................................................错误!未定义书签。
Section II Company Profile and Main Financial Indexes ...... 6
Section III Management Discussion and Analysis ...... 10
Section IV Corporate Governance ...... 28
Section V Enviornmental and Social Responsibility ...... 29
Section VI Important Events ...... 31
Section VII Changes in Shares and Particular about Shareholders ...... 40Section VIII Preferred Stock...........................................................................................................错误!未定义书签。Section IX Corporate Bonds............................................................................................................错误!未定义书签。Section X Financial Report ...... 47
Documents Available for Reference
1. Text of financial statement with signature and seals of the person in charge of the Company, person in charge ofaccounting works and person in charge of accounting institution(accounting supervisor);
2. Original and official copies of all documents which have been disclosed during the reporting period;
3. Original copies of Semi-Annual Report 2022 with signature of the person in charge of the Company.
Interpretation
| Items | Refers to | Contents |
| SZCH/Listed Company /the Company/ | Refers to | Shenzhen Cereals Holdings Co., Ltd. |
| Shenzhen Flour | Refers to | Shenzhen Flour Co., Ltd |
| Shenliang Quality Inspection | Refers to | Shenliang Quality Inspection Co., Ltd. |
| Dongguan Logistics | Refers to | Dongguan Shenliang Logistics Co., Ltd. |
| Shenbao Huacheng | Refers to | Shenzhen Shenbao Huacheng Technology Co., Ltd. |
| Hualian Company | Refers to | Shenzhen Hualian Grain and Oil Trading Co., Ltd. |
| Shenliang Cold Chain | Refers to | Shenzhen Shenliang Cold Chain Logistics Co., Ltd. |
| Shenliang Property | Refers to | Shenzhen Shenliang Property Development Co., Ltd. |
| Wuyuan Jufangyong | Refers to | Wuyuan County Jufangyong Tea Co., Ltd. |
| Shenliang Food | Refers to | Huizhou Shenliang Food Co., Ltd. |
| Shenliang Grease | Refers to | Grease Branch of Shenzhen Grain Group Co., Ltd. |
| Wuhan Jiacheng | Refers to | Wuhan Jiacheng Biotechnology Co., Ltd. |
| Zhenping Company | Refers to | Zhenping Market Operation Tech. Co., Ltd. |
| Food Materials Group | Refers to | Shenzhen Food Materials Group Co., Ltd |
| Shenzhen SASAC | Refers to | Shenzhen Municipal People’s Government State-owned Assets Supervision & Administration Commission |
| CSRC | Refers to | China Securities Regulation Commission |
| SSE | Refers to | Shenzhen Stock Exchange |
| Article of Association | Refers to | Article of Association of Shenzhen Cereals Holdings Co., Ltd. |
| RMB/10 thousand Yuan | Refers to | CNY/ten thousand Yuan |
Section II Company Profile and Main Financial IndexesI. Company profile
| Short form for share | SZCH, Shenliang B | Stock code | 000019, 200019 |
| Listing stock exchange | Shenzhen Stock Exchange | ||
| Chinese name of the Company | 深圳市深粮控股股份有限公司 | ||
| Abbr. of Chinese name of the Company (if applicable) | 深粮控股 | ||
| English name of the Company(if applicable) | SHENZHEN CEREALS HOLDINGS CO.,LTD | ||
| Legal Representative | Hu Xianghai | ||
II. Person/Way to contact
| Secretary of the Board | Rep. of security affairs | |
| Name | Chen Xiaohua | Chen Kaiyue, Liu Muya |
| Contact add. | 13/F, Tower A, World Trade Plaza, No.9 Fuhong Rd., Futian District, Shenzhen | 13/F, Tower A, World Trade Plaza, No.9 Fuhong Rd., Futian District, Shenzhen |
| Tel. | 0755-83778690 | 0755-83778690 |
| Fax. | 0755-83778311 | 0755-83778311 |
| chenxh@slkg1949.com | chenky@slkg1949.com、liumy@slkg1949.com |
III. Others
1. Way of contact
Whether registrations address, offices address and codes as well as website and email of the Company changed in reporting period ornot
□ Applicable √Not applicable
The registrations address, offices address and codes as well as website and email of the Company have no changes in the Period,found more in Annual Report 2021.
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
The newspaper appointed for information disclosure, website for semi-annual report publish appointed by CSRC and preparationplace for semi-annual report have no change in reporting period, found more details in Annual Report 2021.
3.Other relevant information
Whether other relevant information has changed in the reporting period
□ Applicable √ Not applicable
IV. Main accounting data and financial indexesWhether information disclosure and preparation place changed in reporting period or not
□Yes √No
| Current Period | Same period of last year | Changes over last year (+,-) | |
| Operating revenue(RMB) | 4,338,044,528.35 | 5,262,189,180.53 | -17.56% |
| Net profit attributable to shareholders of the listed Company (RMB) | 237,527,782.93 | 243,846,874.76 | -2.59% |
| Net profit attributable to shareholders of the listed Company after deducting non-recurring gains and losses (RMB) | 227,132,288.75 | 237,039,666.31 | -4.18% |
| Net cash flow arising from operating activities(RMB) | 260,373,502.86 | -691,272,151.33 | 137.67% |
| Basic earnings per share (RMB/Share) | 0.2061 | 0.2116 | -2.60% |
| Diluted earnings per share(RMB/Share) | 0.2061 | 0.2116 | -2.60% |
| Weighted average ROE | 5.00% | 5.17% | -0.17% |
| End of current Period | End of last year | Changes over end of last year (+,-) | |
| Total assets (RMB) | 7,632,695,093.68 | 7,669,618,906.32 | -0.48% |
| Net assets attributable to shareholder of listed Company (RMB) | 4,579,686,071.77 | 4,630,292,102.34 | -1.09% |
V. 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
Unit: CNY/RMB
| Net profit attributable to shareholders of the listed Company | Net assets attributable to shareholders of listed Company |
| Current period | Last period | Period-end | Period-begin | |
| Chinese GAAP | 237,527,782.93 | 243,846,874.76 | 4,579,686,071.77 | 4,630,292,102.34 |
| Items and amount adjusted by IAS | ||||
| Adjustment for other payable fund of stock market regulation | 1,067,000.00 | 1,067,000.00 | ||
| IAS | 237,527,782.93 | 243,846,874.76 | 4,580,753,071.77 | 4,631,359,102.34 |
2. Difference of the net profit and net assets disclosed in financial report, under both foreign accountingrules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company has no above mentioned condition occurred in the period
3. Explanation on differences of the data under accounting standards in and out of China
□ Applicable √ Not applicable
VI. Items and amounts of extraordinary profit (gains)/loss
√ Applicable □ Not applicable
Unit: CNY/RMB
| Item | Amount | Note |
| Governmental subsidy reckoned into current gains/losses (except for those with normal operation business concerned, and conform to the national policies & regulations and are continuously enjoyed at a fixed or quantitative basis according to certain standards) | 8,046,293.93 | |
| Profit and loss of assets delegation on others’ investment or management | 221,889.46 | |
| Except for the effective hedging operations related to normal business operation of the Company, the gains/losses of fair value changes from holding the trading financial assets and trading financial liabilities, and the investment earnings obtained from disposing the trading financial asset, trading financial liability and financial assets available for sale | 3,573,445.74 | |
| Switch-back of provision of impairment of account receivable which are treated with separate depreciation test | 127,286.00 | |
| Other non-operating income and expenditure except for the aforementioned items | 1,065,883.45 | |
| Less: impact on income tax | 2,637,117.23 | |
| Impact on minority shareholders’ equity (after-tax) | 2,187.17 | |
| Total | 10,395,494.18 |
Other gains/losses items that conform to the definition of non-recurring gains/losses:
□ Applicable √ Not applicable
The Company does not have other gains/losses items that conform to the definition of non-recurring gains/lossesInformation on the definition of non-recurring profit(gain)/loss that listed in the Q&A Announcement No.1 on Information Disclosurefor Companies Offering Their Securities to the Public --- Extraordinary (non-recurring) Profit(gain)/loss as the recurringprofit(gain)/loss
□Applicable √Not applicable
The Company does not have any non-recurring profit(gain)/loss listed under the Q&A Announcement No.1 on InformationDisclosure for Companies Offering Their Securities to the Public --- Extraordinary (non-recurring) Profit(gain)/loss defined asrecurring profit(gain)/loss
Section III Management Discussion and AnalysisI. Main businesses of the Company in the reporting period
Main business of the Company includes the wholesale and retail business, food processing and manufacturingbusiness, leasing and commerce service business.
The wholesale and retail business are mainly rice, wheat, rice in the husk, corn, sorghum, cooking oil and othervarieties of grain and oil as well as the sales of fine tea, beverage and condiment. Mainly supplied wheat, rice,corn, barley, sorghum and other raw grain to customers such as the industry's large traders, feed processing andflour processing enterprises and so on; mainly sold rice, flour, cooking oil, high-quality tea, beverages and otherproducts to demand units and community residents. During the reporting period, the international environmentbecame more complex and severe, the conflict between Russia and Ukraine deepened and evolved, domesticpandemics had frequent outbreaks, unexpected factors exceeded expectations, the adverse impact wassignificantly increased, and the economic development was extremely unusual. The company continued to fight aprotracted battle for pandemic prevention and control, took multiple measures to ensure the supply of goods,stabilize the supply, improve the products, strengthen the brand, deepen the market, and be a "stabilizer" for thefood security of the special zone.
Food processing and manufacturing business are mainly the processing the technology research in aspect of flour,rice, cooking oil, tea and natural plant extracts, beverage, condiments, prepared foods, functional foods and soforth. The company's flour brands and products include “Jinchangman”, “Yingshanhong” and “Hongli” seriesbread flour; “Clivia” and “Canna” series tailored flour for cakes and steamed bun; “Sunflower” special flour fornoodles and dumpling skin; “Tianlvxiang” flour for civilian use and the rest; Rice products include “ShenliangDoximi”, “Guzhixiang”, “Gufengxianman”, “Runxiangliangpin”, “Panong Blue”, “Taitai Fukou”,“Duobaogufang”, “Taihexiang” and others; Cooking oil products include brands such as “Shenliang Fuxi”,“Shenliang Jinxi” , “Youtian” and others; Tea brands mainly include "Jufangyong" tea; "Yichong" fresh extract,"Jindiao" instant tea powder and other tea deep-processed products, as well as "Shenbao" chrysanthemum andlemon tea, the "Cha Mi Xiang Qi" series of tea beverages as fresh fruit tea with grains and light food; lunch of"Utopia Autumn" tea and wine continues to enrich the product mix; Condiments are mainly "Sanjing" oystersauce and sauces and the prepared food brand "Wotian"; the functional red yeast food"Shankangyuan"; Multiplebrands shapes a product series, including "Shenliang Yushuiqing" rice, noodles, oil and miscellaneous cerealsseries, "Jiaxi" rice and noodle series, "Jinchangman" noodle and oil series, "Black-faced Spoonbill" tea, rice, oil,drinking water, side dishes and spices series.
The leasing and business service refers to providing the professional import & export trade, warehousing &
storage, logistic & distribution, quality inspection & information technology services, property leasing andmanagement, business operation management services for all kinds of clients in the upstream and downstream ofthe industrial chain, by using the advantage of brand reputation, operation service capacity and facility technologythat accumulated in field of grain and oil market. Its Dongguan smart gain logistics complex is a comprehensivegrain distribution service body integrating five major functions: grain & oil terminal, transit reserve, testing &distribution, processing & production and market trading; subsidiary Shenliang Quality Inspection was awarded as“Guangdong Shenzhen National Grain Quality Monitoring Station” and Shenliang Cold Chain provides coldchain of food storage and distribution services to the customers, subsidiary Zhenping Company create a smartsupply chain management services platform for promoting the quality enhancement of "vegetable baskets" forcommon people. Subsidiary Shenliang Property is a professional assets management platform enterprise.II. Core Competitiveness AnalysisThe company enhances the endogenous power by deepening reform, strengthens the "extensive" development byinnovation cooperation, and continuously upgrades and transforms the governance pattern, development quality,and guarantee ability, and has embarked on a path of sustainable and high-quality development through self-innovation, and become a highly competitive, innovative and influential "ten billion" backbone grain enterprise inthe domestic grain industry.
(1) Strategic guidance
The company's core management team has rich experience, strong strategic vision and pragmatic spirit. Thecompany focuses on the main business, vigorously promotes business model innovation and transformation, andactively promotes the transformation from a "trade-oriented enterprise" to a "service-oriented enterprise" and fromthe "operation-oriented management and control" to the "strategic management and control", and has successivelyput forward the strategic goals and the specific implementation paths of building "the most competitive graincirculation service enterprise in the region", "excellent service provider of grain supply chain" and "excellentservice provider in the supply chain of intelligent cereals, oil and foodstuff ". The company strengthens the grainstrategic service capability, integrates its strategy into the national strategy, focuses on the functional positioningof "strengthening and optimizing the main business of grain, and serving the people's livelihood", actively deploysthe supply chain, and continues to independently invest in "high-quality grain source base + channel logisticsnodes + regional intelligent comprehensive park + urban intelligent distribution center”, and further promotes anumber of high-quality grain, oil and food projects and people's livelihood happiness projects such as NortheastGrain Source Base, Dongguan Grain Logistics Node, Intelligent Group Meals, Affordable Granary “Benefitingthe People” Project, and “Tea &Rice Mutual Expectancy” Mini-type Synthesis, and effectively undertakes theimportant tasks of "ballast stone", "reservoir" and "regulator" for food security in the "dual-zone construction".
(2) Management and operation
The company actively builds a supply chain safe storage and transportation system to ensure regional foodsecurity; and actively builds a supply chain storage and transportation system to establish the operation strategy of"establishing food security firmly on supply chain security". According to the combination of dynamic and static,constant storage and constant new, and business orientation, the company improves the resource allocation of theintelligent cereals, oil and food supply chain, and strengthens the professional capabilities of "purchasingtransactions, logistics allocation, warehousing rotation, and emergency response". In terms of business layout, thecompany deeply cultivates subdivides target markets, carries out differentiated and professional operations, anduses "Internet +" as a means to innovate and develop supply channels and transaction methods for grain and oilproducts, builds and improves the "three-in-one" multi-level product supply network of terminal grain and oil e-commerce, catering delivery services, and bulk grain and oil trading services. In terms of business managementand control, the seamless link between "business" and "planning, funds, quality inspection, inventory, risk control,and discipline inspection" has been realized by the self-owned information management system, and a rigorous"six-in-one" management and control system to effectively has been built to reduce operating risks while fullyparticipating in market competition, and effectively realized the "consistency of political responsibility andeconomic responsibility, and the unity of social benefits and economic benefits".
(3) R & D technology
The company attaches great importance to transforming and upgrading traditional industries with moderntechnological means. It actively introduces new-generation information technologies such as the Internet ofThings, cloud computing, big data, and mobile Internet into grain management, forming an information systemthat can cover the entire industrial chain of the grain industry, so as to realize refined control of key links of grainprocurement, warehousing, logistics, processing, trading, distribution, etc., and to promote the development of the"Internet + food" industry. The company's informatization construction capability is at the leading level in thedomestic grain industry. It is the first in the industry to build a "standardized, mechanized, informationized, andharmless" system for warehouse management. The self-developed "grain logistics information system (ShenliangGLS)" has built a framework for the construction of grain informatization work, innovated the grain managementmodel and led the development direction of the grain industry. The project was awarded the "National Internet ofThings Major Application Demonstration Project" by the National Development and Reform Commission and theMinistry of Finance, and Experience of "Shenliang GLS" Enabling Total Quality Management Mode won the2020 National Quality Benchmark. The company has strong research and development capabilities in the field offood and beverages, and has gathered leading technological advantages and equipment systems. Its subsidiaries,Shenbao Huacheng, Wuyuan Jufangyong, and Wuhan Jiacheng are all national high-tech enterprises. Thecompany has undertaken a number of national research projects, presided over or participated in the preparation ofa number of national standards and industry standards, and many informatization project achievements andscientific and technological achievements have won national, provincial and municipal awards.
(4) Quality control
The company gives full play to the advantages of products, channels, brands, warehousing, quality inspection, etc.,controls product quality and safety, and provides high-quality and safe products for the society. Its subsidiary,Shenbao Huacheng, has established a quality control system recognized by large international food and beveragecompanies. Its subsidiary, Shenliang Quality Inspection, has the leading grain and oil quality inspectiontechnology and equipment in the domestic grain industry, it has been incorporated into the national grain qualitysupervision and inspection system, and was awarded the "Guangdong Shenzhen National Grain QualityMonitoring Station" by the State Grain Administration, and obtained the Assessment Certificate (CATL) of theQuality and Safety Testing Agency of Agricultural Products and the Certificate of Qualification (CMA) of theInspection and Testing Agency, etc., possessing with a number of certified testing capabilities. Shenliang QualityInspection includes pesticide residues, heavy metal pollutants, mycotoxins and other health indicators and foodtaste indicators in the daily inspection indicators, and has the ability to test four types of indicators such as grainconventional quality, storage quality, grain safety and edible quality, which can meet the relevant qualityinspection needs of grain and oil products, and can accurately analyze the nutrient content and health indicators ofgrains and determine its storage quality and edible quality. It has built a "digital laboratory" in the grain industryto monitor the entire process of sampling, testing, and distribution in real time, and cooperates with collaborativeplatforms to save, retrieve, integrate, analyze, and share grain and oil testing data to achieve 100% inspectioncoverage of grain and oil products.
(5) Incentive mechanism
The company focuses on the strategy of "strengthening the enterprise with talents", innovatively implements EVAassessment, and stimulates the internal driving force of enterprise development. It continues to innovate the talenttraining mechanism and build a high-quality talent supply chain, and has established an open talent echelon thatmeets the needs of the long-term development of the enterprise so as to reserve intelligence for the upgrading anddevelopment of the enterprise; it establishes result-oriented incentives and constraints appraisal system throughthe innovative implementation of the EVA performance appraisal mechanism, advocates employees to createvalue for shareholders, advocates the company to share value with employees, fully reflects the principle ofprioritizing the interests of shareholders, favorably promotes the rational allocation of corporate resources, andeffectively establishes a performance culture and stimulates the vitality of the company. The company is the firstpilot enterprise in the state-owned assets system to implement the full coverage of the EVA assessment, so as toexplore the replicable experience of establishing a share and incentive mechanism that is compatible with thelabor market and linked to the economic benefits of the enterprise. The company insists on cultivating andadvocating a corporate culture with the core values of "people oriented, performance first, quality first, andharmony first", and combines the personal development goals of employees with the corporate vision to enhancethe cohesiveness of the company.III. Main business analysis2022 is the key period of the "14
th
Five-Year Plan". The company adheres to the general principle of seeking
progress while maintaining stability, actively serves and integrates into the new development pattern of grainsecurity, strengthens the coordinated guarantee of the whole chain of production, purchase, storage, processingand sales, and insists on laying equal stress on quantity and quality, and thoroughly implements high-quality grainprojects to strengthen, optimize and expand the industrial chain. During the reporting period, Dongguan LogisticsIndustrial Park project of the company was put into use, the company's transit business volume increased steadily,the rise in prices of high value-added services and bulk trade and the increase in the gross profit margin of grainand oil trade led to an increase in the company's overall efficiency. As of June 30, 2022, the company's total assetswere 7.633 billion yuan, of which the net assets attributable to shareholders of the listed company were 4.58billion yuan; the cumulative operating revenue was 4.338 billion yuan, achieving total profit of 241 million yuan,the net profit attributable to shareholders of the listed company was 238 million yuan, the weighted average returnon equity was 5.00%, and the basic earnings per share was 0.2061 yuan per share.
During the reporting period, the company based on its own advantages and industrial development, usedinformation technology, innovated and opened up the grain and oil products supply channels and trading methods,created a new pattern for tea and food business industry, built a multi-group and multi-channel food supply chainand service network, expanded the effective supply of medium- and high-end grain, oil, and food, and aims tomeet people's needs of "quality, diversity, nutrition, health, green, and convenience", and promoted thetransformation of grain and oil products from "eat full" to "eat well". The company continues to focus on graincirculation services, and completes grain and oil supply services with quality and quantity by actively buildingsupply chains, continuously extending the industrial chains, innovating business models, and upgrading theindustrial value chains, the development of the main grain and oil business continues to improve.
(1) Focus on reform and innovation, and consolidate the support of modern governance capabilitiesThe company has completed the three-year action tasks of state-owned enterprise reform, the key tasks andmeasures of the "Double Hundred Action", and the key task of benchmarking the world-class managementimprovement action, and provided the national food and agriculture industry and the state-owned assets andstate-owned enterprises with a replicable and popularized "Shenliang Model". The company has carried out anumber of informatization construction projects to accelerate the digital transformation of the company's entirechain. It has strictly performed information disclosure obligations, and continued to receive the highest rating of"A" in the Shenzhen Stock Exchange's 2021 annual information disclosure assessment for companies listed on themain board. It continues to strengthen organizational management and form a modern governance system withcomplete system, scientific standardization and efficient operation.
(2) Focus on key projects and make breakthroughs to drive all-round developmentThe company's Northeast Grain Source Base has further strengthened the "production, purchase, storage,processing and sales" chain of cereal and oil food, and Hongxinglong warehouse has adjusted the varieties ofunprocessed grain reserves; the rice production line has been officially put into production; new methods such as
containerized railway-sea or truck-sea combined transportation are adopted to reduce cereal loss, reducetransportation time, and open up the channel of "north grain transported to the south".The company's Dongguan grain logistics node construction and operation goes well, the Shenliang LogisticsBuilding is officially opened, the A1 flat warehouse project has completed the construction of the main body andthe supporting projects and is about to be put into production, and the A2 and A3 plots have obtained theconstruction project planning permit and accelerated the construction. It successfully obtained the port operatingpermit for berths No. 1 and No.2, and has started the construction of berth No.3; the port handling capacityreached a new high in the first half of the year.
(3) Focus on brand building, enable operations to improve quality and efficiencyThe company firmly promotes brand development, continuously improves the excellent brand matrix,continuously improves the quality and scale of food supply, strengthens the core competitiveness, innovation andoutput capabilities of the brand, serves the common people with more high-quality grain and oil products withpreferential prices, and sets an example in cereals, oils and foodstuff to create a benchmark for people's livelihoodand happiness. A total of 12 products from three subsidiaries of the company, i.e. Shenzhen Flour, Shenliang Food,and Shenliang Oils and Fats, were selected into the ninth batch of "Shenzhen Products"; Shenbao Huacheng, asubsidiary of the company, was awarded the 12
th
"Shenzhen Time-honored Brand".
(4) Focus on regional grain security, strengthen and standardize grain and oil managementThe company is determined to be a "stabilizer" for grain security in Shenzhen Special Economic Zone, regularlyinspects and verifies the quantity and quality of grain and oil in stock at each warehouse, and provides reserveservices with high quality and quantity; builds a green and smart grain depot, and follows the full-processinspection of warehousing, inventory and ex-warehouse. During the pandemic in Shenzhen, the company's graindepots implemented closed management, and the "three-in-one" logistics model, automated warehouses, digitallaboratories and other emergency supply guarantees were operated in real time, which built the "first line ofdefense" for emergency guarantee of grain supply.
(5) Focus on risk prevention and control, and firmly guard the bottom line and red line of safetyThe company has firmly built a five-in-one "big risk control" management mechanism of "internal controlevaluation + safety production + audit + legal affairs + quality safety", and promoted full coverage of independentevaluation and risk assessment of subsidiaries; strengthened the cost control of the whole process of engineeringprojects; improved capital management system, built a unified supervision platform for funds, and improved thelong-term supervision mechanism for fund security check.Y-o-y changes of main financial data
Unit: CNY/RMB
| Current period | Same period of last year | Y-o-y increase/decr | Reasons for changes |
| ease | ||||
| Operating revenue | 4,338,044,528.35 | 5,262,189,180.53 | -17.56% | The grain and oil trading sales declined due to the impact of epidemic on supplying chain business of the Company |
| Operating cost | 3,775,825,625.81 | 4,650,397,070.67 | -18.81% | The grain and oil trading sales declined due to the impact of epidemic on supplying chain business of the Company |
| Sales expenses | 79,331,081.69 | 106,711,776.77 | -25.66% | Stock of grain & oil and trading of grain & oil in the period decreased compared with the same period of the previous year, the sales expenses from warehousing and port terminal declined |
| Management expenses | 125,631,541.74 | 109,316,093.65 | 14.93% | Total profit after reducing rent by the same caliber increased compared with the same period of the previous year, according to the operation, the Company prepays the annual performance and the payroll match |
| Financial expenses | 28,009,628.45 | 17,204,774.52 | 62.80% | The berths 1 and 2 and CDE warehouse were put into operation last year, the expense-based interest costs increased compared with the same period of last year |
| Income tax expense | 2,958,666.41 | 13,407,354.56 | -77.93% | |
| R&D investment | 10,137,177.77 | 10,926,018.15 | -7.22% | |
| Net cash flow arising from operating activities | 260,373,502.86 | -691,272,151.33 | 137.67% | The reserve gain& oil settlement payment in 2021 and advance appropriation in the first half of 2022 are collected in the first half of 2022 while the same period of previous year was the second half of 2021 |
| Net cash flow arising from investment activities | -25,369,682.63 | -267,111,859.35 | 90.50% | In the same period of last year, the consideration paid for acquisition of minority interest from Dongguan Logistics of 322 million yuan, and no similar occurred in current period |
| Net cash flow arising from financing activities | -212,953,478.35 | 836,677,347.40 | -125.45% | In the same period of last year, there were more loans from operation flow, and in current period, some long-term loans are paid due to the |
| sufficient monetary funds | ||||
| Net increase of cash and cash equivalent | 22,090,601.62 | -121,720,142.83 | 118.15% |
Major changes on profit composition or profit resources in reporting period
No major changes on profit composition or profit resources occurred in reporting period
Constitute of operating revenue
Unit: CNY/RMB
| Current period | Same period last year | Increase/decrease y-o-y (+,-) | |||
| Amount | Ratio in operation income | Amount | Ratio in operation income | ||
| Total operating revenue | 4,338,044,528.35 | 100% | 5,262,189,180.53 | 100% | -17.56% |
| According to industries | |||||
| Wholesale and retail | 3,409,189,664.66 | 78.59% | 4,400,038,220.56 | 83.62% | -22.52% |
| Leasing and commercial services | 470,365,451.05 | 10.84% | 476,311,036.38 | 9.05% | -1.25% |
| Manufacturing | 458,489,412.64 | 10.57% | 385,839,923.59 | 7.33% | 18.83% |
| According to products | |||||
| Grain and oil trading and processing | 3,754,406,530.76 | 86.55% | 4,675,804,942.84 | 88.86% | -19.71% |
| Grain and oil storage, logistics and services | 439,642,478.40 | 10.13% | 422,355,721.28 | 8.03% | 4.09% |
| Food & beverage and tea processing | 113,272,546.54 | 2.61% | 111,339,446.11 | 2.11% | 1.74% |
| Leasing and others | 30,722,972.65 | 0.71% | 52,689,070.30 | 1.00% | -41.69% |
| According to region | |||||
| Domestic market | 4,313,917,094.98 | 99.44% | 5,245,073,883.18 | 99.67% | -17.75% |
| Exportation | 24,127,433.37 | 0.56% | 17,115,297.35 | 0.33% | 40.97% |
Industries, products or regions that account for more than 10% of the operating revenue or operating profit
√ Applicable □Not applicable
Unit: CNY/RMB
| Operating revenue | Operating cost | Gross profit ratio | Increase/decrease of operating revenue y-o-y | Increase/decrease of operating cost y-o-y | Increase/decrease of gross profit ratio y-o-y |
| According to industries | ||||||
| Wholesale and retail | 3,409,189,664.66 | 3,182,456,673.11 | 6.65% | -22.52% | -23.00% | 0.58% |
| According to products | ||||||
| Grain and oil trading and processing | 3,754,406,530.76 | 3,505,941,830.21 | 6.62% | -19.71% | -20.54% | 0.98% |
| According to region | ||||||
| Domestic market | 4,313,917,094.98 | 3,759,320,612.43 | 12.86% | -17.75% | -18.94% | 1.28% |
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main business based onlatest one year’s scope of period-end
□ Applicable √Not applicable
Reasons for y-o-y relevant data with over 30% changes
□ Applicable √Not applicable
IV. Analysis of the non-main business
√ Applicable □ Not applicable
Unit: CNY/RMB
| Amount | Ratio in total profit | Causes | Whether be sustainable | |
| Investment income | 3,038,365.75 | 1.26% | Unsustainable | |
| Gains/losses of fair value variation | 221,889.46 | 0.09% | Unsustainable | |
| Asset impairment | -81,499,450.86 | -33.79% | Accrual of the reserve for falling prices of goods in stock. When selling the goods with falling prices accrual, the actual carrying forward of the reserves will be used to offset the current cost | Unsustainable |
| Non-operating income | 1,133,017.31 | 0.47% | Unsustainable | |
| Non-operating expense | 67,133.97 | 0.03% | Unsustainable |
V. Assets and liability analysis
1. Major changes of assets composition
Unit: CNY/RMB
| End of current period | End of last year | Ratio changes(+,-) | Notes of major changes | |||
| Amount | Ratio in total assets | Amount | Ratio in total assets | |||
| Monetary fund | 72,460,681.82 | 0.95% | 50,409,923.65 | 0.66% | 0.29% | |
| Account receivable | 174,146,597.77 | 2.28% | 283,047,341.62 | 3.69% | -1.41% | Settlement of grain & oil service income at end of previous year are received in current period |
| Inventory | 3,619,041,269.92 | 47.41% | 3,460,618,674.81 | 45.12% | 2.29% | Increase in grain & oil stock compared to the beginning of the period |
| Investment real estate | 225,116,917.61 | 2.95% | 233,096,698.49 | 3.04% | -0.09% | |
| Long-term equity investment | 72,955,363.50 | 0.96% | 73,490,443.49 | 0.96% | 0.00% | |
| Fix assets | 2,122,654,384.98 | 27.81% | 2,127,831,149.19 | 27.74% | 0.07% | |
| Construction in process | 198,788,393.17 | 2.60% | 207,946,539.97 | 2.71% | -0.11% | |
| Right-of-use assets | 87,899,195.17 | 1.15% | 97,648,674.06 | 1.27% | -0.12% | |
| Short-term loans | 725,635,087.73 | 9.51% | 504,766,782.25 | 6.58% | 2.93% | Increase in operating flow loans during the period |
| Contract liability | 83,531,467.12 | 1.09% | 182,972,314.85 | 2.39% | -1.30% | Contract liability decline due to the carrying forward of recognized revenue upon completion of performance obligations |
| Long-term loans | 624,310,269.81 | 8.18% | 730,521,692.22 | 9.52% | -1.34% | Repayment of long-term loans |
| Lease liability | 79,340,597.07 | 1.04% | 80,173,743.75 | 1.05% | -0.01% | |
2. Main overseas assets
□Applicable √Not applicable
3. Assets and liability measured by fair value
√ Applicable □ Not applicable
Unit: CNY/RMB
| Items | Opening amount | Changes of fair value gains/losses in this period | Accumulative changes of fair value reckoned into equity | Devaluation of withdrawing in the period | Amount of purchase in the period | Amount of sale in the period | Other changes | Ending amount |
| Financial assets | ||||||||
| 1.Trading financial assets (excluding derivative financial assets) | 211,060,770.50 | 221,889.46 | 138,934,274.95 | 72,348,385.01 | ||||
| Other non-current financial assets | 57,500.00 | 80,000,000.00 | 80,057,500.00 | |||||
| Aforementioned total | 211,118,270.50 | 221,889.46 | 80,000,000.00 | 138,934,274.95 | 152,405,885.01 | |||
| Financial liabilities | 0.00 | 0.00 | ||||||
Content of other changes
Whether there have major changes on measurement attributes for main assets of the Company in report period or not
□ Yes √No
4. The assets rights restricted till end of the period
| Item | Ending book value | Reasons for restriction |
| Monetary fund | 1,000,000.00 | Guarantee deposit |
| Fix assets | 354,690,060.54 | According to the long-term loan mortgage contract signed by Dongguan Logistics, a subsidiary of the Company, with Shenzhen Branch of Agricultural |
| Item | Ending book value | Reasons for restriction |
| Development Bank and Huizhou Zhongkai Sub-branch of HSBC, Dongguan Logistics has subordinate mortgaged the real estate property rights of the structures of Yue (2020) Dongguan Property Right No. 0127118, Yue (2020) Dongguan Property Right No. 0127119, Yue (2020) Dongguan Property Right No. 0127120, and Yue (2020) Dongguan Property Right No.0119705 at No. 10, Jingang South Road, Machong Town, Dongguan City and other aground buildings as collateral for the loan. | ||
| Intangible assets | 34,607,208.17 | According to the long-term loan mortgage contract signed by Dongguan Logistics, a subsidiary of the Company, with Shenzhen Branch of Agricultural Development Bank and Huizhou Zhongkai Sub-branch of HSBC, Dongguan Logistics has subordinate mortgaged the real estate property rights of the structures of Yue (2020) Dongguan Property Right No. 0127118, Yue (2020) Dongguan Property Right No. 0127119, Yue (2020) Dongguan Property Right No. 0127120, and Yue (2020) Dongguan Property Right No.0119705 at No. 10, Jingang South Road, Machong Town, Dongguan City and other aground buildings as collateral for the loan. |
| Intangible assets | 32,555,832.71 | According to the loan contract Yue DG2017 NGDZ No. 006 signed by International Food, a subsidiary of the Company, with Bank of Communications Co., Ltd., Dongguan Branch, International Food has mortgaged its two pieces of land "DFGY (2009) DT No. 190" and "Yue (2020) Dongguan Real Estate Right No. 0321771" to the Bank of Communications Co., Ltd., Dongguan Branch as loan collateral. |
| Total | 422,853,101.42 |
VI. Investment analysis
1. Overall situation
√ Applicable □ Not applicable
| Investment in reporting period (RMB) | Investment in the same period of last year (RMB) | Changes (+,-) |
| 33,983,734.95 | 423,203,922.73 | -92.68% |
2.The major equity investment obtained in the reporting period
□ Applicable √Not applicable
3.The major non-equity investment carrying in the reporting period
√ Applicable □ Not applicable
Unit: CNY/RMB
| Item | Investment | Whether it is | Industry with | Amount | Accumulated | Capital source | Progress | Expected | Income | Reasons for | Date of | Disclosure |
| method | the fixed assets investment (Y/N) | the investment involved | input in the period | actual input as of the end of reporting period | s | earnings | accumulated at end of the reporting period | failure to achieve planned progress and expected benefits | disclosure (if any) | index (if any) | ||
| Logistic node project (phase II) of Dongguan Shenliang Logistics Co., Ltd. | Self-build | Y | Storage and wharf | 17,458,885 | 1,469,018,012 | Owned Funds | 88.00% | - | - | - | - | - |
| Total | -- | -- | -- | 17,458,885 | 1,469,018,012 | -- | -- | - | - | -- | -- | -- |
4. Financial assets investment
(1) Securities investment
√ Applicable □ Not applicable
Unit: CNY/RMB
| Variety of securities | Code of securities | Short form of securities | Initial investment cost | Accounting measurement model | Book value at the beginning of the period | Changes in fair value of the current profit and loss | Cumulative fair value changes in equity | Current purchase amount | Current sales amount | Profit and loss in the Reporting Period | Book value at the end of the period | Accounting subject | Capital Source |
| Domestic and overseas stock | 000017 | Zhonghua-A | 0.00 | Fair value measurements | 921,099.27 | 221,889.46 | 221,889.46 | 1,142,988.73 | Trading financial assets | Debt rescheduled shares | |||
| Total | 0.00 | -- | 921,099.27 | 221,889.46 | 0.00 | 0.00 | 0.00 | 221,889.46 | 1,142,988.73 | -- | -- | ||
(2) Derivative investment
□ Applicable√Not applicable
The Company has no derivatives investment in the Period
5. Application of raised proceeds
□ Applicable√Not applicable
The Company has no application of raised proceeds in the Period
VII. Sales of major assets and equity
1. Sales of major assets
□ Applicable √Not applicable
The Company had no sales of major assets in the reporting period.
2. Sales of major equity
□ Applicable √ Not applicable
VIII. Analysis of main holding Company and stock-jointly companies
√ Applicable□Not applicable
Particular about main subsidiaries and stock-jointly companies net profit over 10%
Unit: CNY/RMB
| Company name | Type | Main business | Register capital | Total assets | Net assets | Operating revenue | Operating profit | Net profit |
| Shenzhen Cereals Group Co., Ltd | Subsidiary | Grain & oil trading processing,Grain and oil reserve service | 1,530,000,000.00 | 7,724,060,588.89 | 4,176,587,134.71 | 4,135,433,596.58 | 191,940,309.99 | 190,067,853.96 |
| Shenzhen Hualian Grain and Oil Trading Co., Ltd. | Subsidiary | Grain & oil trading | 100,000,000.00 | 1,328,101,571.73 | 236,491,463.20 | 716,632,540.79 | 76,222,688.50 | 67,907,072.76 |
| Shenzhen Flour Co., Ltd | Subsidiary | Grain & oil trading processing,Grain and oil reserve service | 30,000,000.00 | 1,047,853,454.19 | 125,037,613.88 | 1,311,330,491.16 | 42,274,613.24 | 43,240,341.15 |
Particular about subsidiaries obtained or disposed in report period
√ Applicable □ Not applicable
| Company name | The way of getting and treating subsidiary in the reporting | Influence on overall product and performance |
| Shenzhen Shenbao Technology Center Co., Ltd. | Mergers and Acquisitions | No material impact on overall production, operation and results of the Company for the year |
| Zhenping Market Operation Tech. Co., Ltd. | Newly established | No material impact for now on overall production, operation and results of the Company for the year |
| Shenliang Hongli Grain & Oil (Shenzhen) Co., Ltd. | Newly established | No material impact for now on overall production, operation and results of the Company for the year |
Explanation on main holding/stock-jointly enterprise:
Shenzhen Cereals Group Co., Ltd: business scope: general business items: grain and oil purchase and sales, grain and oil storage andsupply of military grain; grain and oil and products management and processing (operated by branches); operation and processing offeed (operated by outsourcing); investment in grain and oil, feed logistics projects; establishing grain and oil and feed trading market(including e-commerce market) (market license is also available); storage (operated by branches); development, operation andmanagement of free property; providing management services for hotels; investing and setting up industries (specific projects areseparately declared); domestic trade; engaging in import and export business; E-commerce and information construction; and graincirculation service. Licensed business items: the following projects shall be operated only with the relevant examination and approvaldocuments if they are involved in obtaining approval: information services (internet information service only); general freight,professional transport (refrigerated preservation). Register capital was 1,530,000,000.00 Yuan. Ended as this period, total assetsamounted as 7,724,060,588.89 Yuan, and net assets amounting to 4,176,587,134.71 Yuan, shareholders’ equity attributable to parentCompany is 3,976,719,908.68 Yuan; in the reporting period, achieved operation revenue, net profit and net profit attributable toshareholder of parent Company as 4,135,433,596.58 Yuan, 190,067,853.96 Yuan and 181,114,135.34 Yuan respectively.
Shenzhen Hualian Grain and Oil Trading Co., Ltd.: Business scope: general business items: domestic trade (except for projects thatlaws, administrative regulations, and decisions of the State Council require approval before registration); engaging in import andexport business (except for projects prohibited by laws, administrative regulations, and decision of the State Council, restrictedprojects can be operated only after obtaining permission); online feed sales; information consultation, self-owned housing leasing(excluding talent agency services and other restricted items); international freight forwarding, domestic freight forwarding (can onlybe operated after being approved by the transport department if laws, administrative regulations, State Council decision require theapproval of transport department); Licensed business items: purchase and sale of grain and oil, online sales of grain and oil;information service business (internet information service business only). Register capital was 100,000,000.00 Yuan. Ended as thisperiod, total assets amounted as 1,328,101,571.73 Yuan, and net assets amounting to 236,491,463.2 Yuan, shareholders’ equityattributable to parent Company is 208,500,133.85 Yuan;in the reporting period, achieved operation revenue, net profit and net profitattributable to parent Company as 716,632,540.79 Yuan, 67,907,072.76 Yuan and 67,612,430.08 Yuan respectively.
Shenzhen Flour Co., Ltd: business scope: hardware and electrical equipment, chemical products (excluding hazardous chemicals andrestricted items), auto parts, purchase and sales of construction materials; self-operated import and export business (carry outaccording to the provisions of the registration certificate SMGDZZ No. 76); domestic trade (excluding franchise, exclusive control,monopoly commodities); wheat wholesale and retail; flour processing and production. Register capital was 30,000,000.00 Yuan.Ended as this period, total assets amounted as 1,047,853,454.19 Yuan, and net assets amounting to 125,037,613.88 Yuan,shareholders’ equity attributable to parent Company is 125,037,613.88 Yuan; in the reporting period, achieved operation revenue, netprofit and net profit attributable to parent Company as 1,311,330,491.16 Yuan, 43,240,341.15 Yuan and 43,240,341.15 Yuanrespectively.
IX. Structured vehicle controlled by the Company
□ Applicable √Not applicable
X. Risks and countermeasures
1. The risk of the impact of the COVID-19 pandemic
The continued COVID-19 pandemic greatly affected the macroeconomic operation, and the uncertain risks facedby economic development have intensified. The company has been greatly and negatively affected in terms ofproduction, trade, and industrial supply chain, resulting in rises in material costs, labor costs, logistics costs andother costs a certain extent.
In response to this risk, the company strictly implements the pandemic prevention policies, and does a good job inpandemic prevention tirelessly. On the one hand, the company builds a normalized mechanism for pandemicprevention and control, and implements prevention and control measures from three aspects of "people, objects,and environment"; on the other hand, the company makes reasonable arrangements for production and businessthrough advance planning to ensure that the company's production and operation are carried out in an orderlymanner. In addition, the company further promotes refined management to reduce costs and increase efficiency.
2. Raw material price fluctuation risk
Firstly, the monetary tightening policies to combat the inflation due to the over-issuance and depreciation of USdollar and the decline in social production levels caused by the COVID-19 pandemic have led to sharpfluctuations in prices of domestic and foreign commodities; secondly, as the COVID-19 pandemic continues,some countries have controlled the export of agricultural products, and the restrictions on the circulation ofagricultural products caused the prices of agricultural products to rise; finally, the Russian-Ukrainian conflict haveblocked the grain exports of two important grain-producing countries, causing the global grain and oil prices tocontinue to rise. The above risks have greatly impacted the industry in which the company operates, and thecompany's external raw material procurement costs continue to be under pressure.
The company will actively respond to the adverse effects of raw material price fluctuations on the company'soperations through measures such as strengthening market forecasts, establishing strategic cooperation,optimizing supply management, and refining the management of the entire industry chain.
3. Food safety risks
As a major livelihood issue, food safety concerns the vital interests and safety and health of the people. Under thecurrent situation of the sporadic and repeated COVID-19 pandemic, as emergency supplies, the distribution andtransportation of grain may be affected by the transportation control and the requirements of local pandemicprevention policies. In order to ensure the supply and quality of emergency supplies, the company has madecareful deployment and joint coordination of various units to strengthen the pandemic prevention and control ofkey objects such as people, vehicles, and the environment accompanying the goods, which not only ensures the
quality compliance and hygienic safety of the food to be put in storage, but also effectively guarantees sufficientgrain and oil reserves, stable market supply and good food quality.
To address this risk, the company implements the following specific measures. First, strictly implement the mainresponsibility for food quality and safety. The company implements the special post for special responsibility,implements the requirements of "one batch, one inspection" for grain, oil and food, and strengthens the sourcecontrol. Second, strengthen public opinion detection of food safety. The company strengthens the monitoring andtracking of food safety public opinion trends, stabilizes the consumer market sentiment of grain and oil, and doesa good job in the management of grain quality and safety. Third, continuously improve the level of product qualityassurance through technological transformation and technological progress. Fourth, strengthen producttransportation and storage management to prevent secondary pollution of products.
4. The risk of market competition
As a representative enterprise of regional grain, oil and food business, there is still a certain gap in scale and brandawareness between the company and other central enterprises and large multinational grain, oil and foodenterprises. In the future, the competition in the grain, oil and food industry will become more and more fierce, ifthe company cannot effectively promote the own brands and expand marketing channels, it may face greatermarket competition risks.
In order to cope with this risk, on the one hand, the company continues to improve the plan management level,formulates the purchase and sales plan during the year, and carefully optimizes the procurement channels toensure sufficient grain supply and orderly supply; on the other hand, it continues to strengthen communicationwith upstream and downstream customers in the industry chain, vigorously expands sales channels, focuses oncustomer needs, develops brands and services, and enhances the company's brand value and competitiveness. Atthe same time, the company actively develops new customers and effectively expands markets outside the regionand emerging markets.
5. Merger and acquisition integration risk
The company carries out investment and M&A projects according to its development strategy. Whether the M&Aproject can form a synergistic effect with the original business and whether it can be effectively integrated withthe original corporate culture and management methods will affect the realization of the enterprise strategic goals,and the lack of adequate management and control may lead to M&A-related risks.
In response to this risk, the company will take the following measures. The first is to pay attention to theintegrating degree of the operation of the acquired company with the company's development strategy, and makecorrections in a timely manner; the second is to pay attention to the synergy between the acquired company andthe company's existing industries, and coordinate the deployment of resources in a timely manner; the third is togradually promote and realize the integration of systems and cultures; the fourth is to optimize the performance-
based innovation incentive and assessment mechanism, and constantly adjust the incentive policies of the acquiredcompanies to adapt to the business objective.
Section IV Corporate Governance
I. Annual General Meeting and extraordinary shareholders general meeting held in thisperiod
1. AGM in the period
| Sessions | Type | Investor participation (%) | Opening date | Disclosure date | Resolutions |
| 2021 Annual general meeting | AGM | 72.09% | 2022-05-18 | 2022-05-19 | Resolution Notice of AGM 2021 of Shenzhen Cereals Holdings Co., Ltd. (Notice No.: 2022-15) released on Juchao website (www.cninfo.com.cn) dated 19 May 2022 |
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √ Not applicable
II. Changes of directors, supervisors and senior executives
√ Applicable □ Not applicable
| Name | Position | Type | Date | Causes |
| Wang Li | Director | Outgoing | 2022-01-12 | Retirement |
| Zhu Junming | President | Outgoing | 2022-06-05 | Passed away |
III. Profit distribution plan and capitalizing of common reserves plan for the Period
□ Applicable √ Not applicable
The Company plans not to carried out distribution of cash dividend, bonus shares and share converted from capital reserve either forthe half yearIV. Implementation of the Company’s stock incentive plan, employee stock ownership plan orother employee incentives
□ Applicable √ Not applicable
During the reporting period, the Company has no stock incentive plan, employee stock ownership plan or other employee incentivesthat have not been implemented.
Section V Environmental and Social ResponsibilityI. Major environmental protection
The listed Company and its subsidiary whether belong to the key sewage units released from environmental protection department
□Yes √No
Administrative penalties imposed for environmental issues during the reporting period
| Company/Subsidiary | Reasons for penalty | Violation situation | Penalty results | Impact on the production & operation of the listed company | Corrective measures |
| - | - | - | - | - | - |
Other environmental information disclosed with reference to the key emission unitsN/AMeasures taken to reducing the carbon emissions during the reporting period and their effectiveness
□ Applicable √Not applicable
Reasons for not disclosing other environmental informationThe company attached great importance to environmental protection work, and each subsidiary has built correspondingenvironmental protection facilities according to the actual situation of production and operation to treat waste gas, dust, wastewaterand solid waste generated in the production process, so as to make its emissions reach the national and local relevant standards. Atthe same time, based on its own business characteristics, the company’s subsidiaries have formulated a series of rules and regulationson environmental protection and strictly implemented them to institutionalize and standardize the environmental protection.
II. Social responsibility
1. Rural revitalization.
In order to thoroughly implement the guiding spirit of the CPC Central Committee and the State Council onconsolidating and expanding the results of poverty alleviation and the effective connection of rural revitalizationand the decision-making and deployment of the Provincial Party Committee and the Municipal Party Committeeon the implementation opinions on comprehensively promoting rural revitalization, according to the unifiedarrangement of the Shenzhen Municipal Party Committee, in July 2021, SZCH and Government OfficesAdministration of Shenzhen Municipality and Meteorological Bureau of Shenzhen Municipality selected andassigned personnel to formed a support working team stationed in the town (hereinafter referred to as "theworking team") to help carry out rural revitalization and assistance work in Tuocheng Town, Longchuan County,Heyuan City, the working team gave full play to the advantages of the industry and provided support for theindustrial development of Tuocheng Town.
The first was to implement the important exposition of General Secretary Xi Jinping's rural revitalization work inpractical work. Conducted in-depth research in towns and villages, completed the rural revitalization researchreport and planning with high quality, and relevant results represented Heyuan City to participate in the selectionof Guangdong Province. The second was to implement the monitoring of poverty-returning with heart andemotion. Implemented the contact mechanism for poverty-returning households, established a help book forspecial groups, and connected with charitable and public welfare resources. The third was to adhere to people firstand life first, and assisted in the defense of the super-strong "Dragon Boat Water". Focused on helping XinduVillage, Shengli Village, Dajiang Village and Sanyin Village. Among them, Comrade Huang Bo joined the militiaemergency team for flood fighting and emergency rescue at the first time, and made outstanding contributions,winning the title of "Flood Control and Flood Fighting Model" issued by the People's Armed Forces of TuochengTown.
2. The work of aid to Tibet.
The selected second batch of aid-Tibet cadres thoroughly implemented the spirit of Xi Jinping's importantinstructions, applied realistic and pragmatic approaches, took real action and worked hard, and conscientiouslycarried out every task of aid to Tibet with a strong sense of responsibility and mission, achieved the consolidationof poverty alleviation results and the effective connection of rural revitalization, steadily promoted the high-quality development of the farms in Zayu County, and successfully completed the task of aid to Tibet.
3. Volunteer service.
In the first half of 2022, the pandemic situation in Shenzhen showed a trend of frequent occurrences. In the face ofthe severe pandemic, Shenliang people acted bravely and acted well, actively participated in the anti-pandemicfront line, and demonstrated the social responsibility of state-owned enterprises with service consciousness. Morethan 110 people of the company participated in the front-line prevention and control of the pandemic, and thevolunteer service time exceeded 8,000 hours.
Section VI Important Events
I. Commitments completed in Period and those without completed till end of the Period from actualcontroller, shareholders, related parties, purchaser and companies
√Applicable □ Not applicable
| Commitment reason | Promise by | Type of commitments | Content of commitments | Commitment date | Commitment term | Implementation |
| Commitments in assets reorganization | Food Materials Group | Shares limited for sale commitment | Commitment on the Lock-up Period of the Shares: Shenzhen Shenbao Industrial Co., Ltd. (hereinafter referred to as “Shenshenbao” and “Listed Company”) intends to purchase the 100% equity of Shenzhen Cereals Group Co., Ltd. (hereinafter referred to as “SZCG”, “target company”) held by the shareholders of SZCG through issuance of shares. Shenzhen Food Materials Group Co., Ltd (hereinafter referred to as “the committed person”), the controlling shareholder of SZCG, has made the following commitments: 1. The committed person should not transfer the shares of the listed company obtained from this transaction within 36 months from the date of listing of the shares. If the closing price of the listed company’s stock is lower than the issue price for 20 consecutive trading days within 6 months after the completion of this transaction, or the closing price is lower than the issue price at the term end of 6 months after the completion of the transaction, the lock-up period for the committed person to hold the company’s stock automatically prolongs for at least 6 months. 2. At the expiration of the above-mentioned lock-up period, if the committed person doesn’t fully fulfill the performance compensation obligation stipulated in the Performance Compensation Agreement, the lock-up period of the shares issued to the committed person will be prolonged to the date when the performance compensation obligation is | 2018-04-02 | 2022-5-12 | Completed |
| fulfilled. 3. Before this transaction, the shares of the Listed Company held by the committed person and the companies controlled by the promise shall not be transferred within 12 months after the completion of this transaction. 4. During the lock-up period of shares, the part that the committed person has increased due to the bonus issue of dividends, transfer of share capital or share allotment of the Listed Company and other ex dividend and ex right matters should also abide by the above-mentioned share lock-up arrangement. 5. If the above lock-up period does not comply with the latest regulatory requirements of the securities regulatory authority, the committed person will agree to make corresponding adjustments according to the latest regulatory opinions of the regulatory authorities, and implement in accordance with the relevant provisions of the China Securities Regulatory Commission and the Shenzhen Stock Exchange after the lock-up period expires. | |||
| Completed on time (Y/N) | Y | ||
| If the commitment is overdue and has not been fulfilled, the specific reasons for incomplete performance and the work plan for next step shall be explained in detail | Not applicable | ||
II. Non-operational fund occupation from controlling shareholders and its related party
□ Applicable √ Not applicable
No non-operational fund occupation from controlling shareholders and its related party in period.
III. External guarantee out of the regulations
□ Applicable √ Not applicable
No external guarantee out of the regulations occurred in the period.
IV. Appointment and non-reappointment (dismissal) of CPAWhether the financial report has been audited or not
□Yes √No
The financial report has not been auditedV. Explanation from Board of Directors and Supervisory Committee for “Qualified Opinion”that issued by CPA
□ Applicable √ Not applicable
VI. Explanation from the BOD for “Qualified Opinion” of last year
□ Applicable √ Not applicable
VII. Bankruptcy reorganization
□ Applicable √ Not applicable
No bankruptcy reorganization for the Company in end of this period
VIII. Lawsuits
Significant lawsuits and arbitration
□ Applicable √ Not applicable
No significant lawsuits and arbitration occurred in the reporting period
Other lawsuits
√ Applicable □ Not applicable
| Lawsuits (arbitration) | Amount involved (in 10 thousand Yuan) | Resulted an accrual liability (Y/N) | Progress | Trial result and influence | Execution of judgment | Disclosure date | Disclosure index |
| As of 30 June 2022, other lawsuits that | 11,797.26 | Yes, the single loan contract dispute from | The Company actively makes use of | After comprehensive analysis, the outcome | In promoting actively | Not applicable |
| did not meet the disclosure standards for significant lawsuits mainly including: disputes over purchase and sales contract, disputes over loans contract, disputes over construction contracts, disputes over corporate separation contracts and housing lease contract dispute etc. | subordinate enterprise of the Company is expected to form an accrual liability of 3.5 million yuan approximately. Other lawsuit-related cases are relatively small in individual amount, and will not have a significant impact on the Company when analyzed in conjunction with the progress of these cases. | the advantageous resources of internal legal affairs and external laws firm to follow up and deal with the lawsuit-related cases. At present, the Company is responding to and dealing with the cases effectively in accordance with relevant laws and regulations | of the cases involved in the lawsuits will not have a significant impact on the Company |
IX. Penalty and rectification
□ Applicable √Not applicable
X. Integrity of the Company and its controlling shareholders and actual controllers
□ Applicable √Not applicable
XI. Major related transaction
1. Related transaction with routine operation concerned
□ Applicable √ Not applicable
No related transaction occurred in the period with routine operation concerned
2. Assets or equity acquisition, and sales of assets and equity
□ Applicable √ Not applicable
No related transaction concerning the asses or equity acquisition and sold in the period
3. Related transaction of foreign investment
□ Applicable √Not applicableNo related transaction of foreign investment occurred in the period
4. Related credits and liabilities
□ Applicable √ Not applicable
No related credits and liabilities occurred in period
5. Contact with the related finance companies
□ Applicable √Not applicable
There are no deposits, loans, credits or other financial business between the finance companies with associated relationship andrelated parties
6. Transactions between the finance company controlled by the Company and related parties
□ Applicable √ Not applicable
There are no deposits, loans, credits or other financial business between the finance companies controlled by the Company andrelated parties
7. Other major related transaction
□ Applicable √Not applicable
No other major related transaction in the Period.XII. Significant contract and implementations
1. Trusteeship, contract and leasing
(1) Trusteeship
□ Applicable √Not applicable
No trusteeship for the Company in reporting period
(2) Contract
□ Applicable √Not applicable
No contract for the Company in reporting period
(3) Leasing
□ Applicable √Not applicable
No leasing in reporting period
2. Major Guarantee
√Applicable □ Not applicable
Unit: 10 thousand Yuan
| External Guarantee (not including guarantees to subsidiaries) | ||||||||||
| Name of the Company guaranteed | Related Announcement disclosure date | Guarantee limit | Actual date of happening | Actual guarantee limit | Guarantee type | Collateral (if any) | Counter guarantee (if any) | Guarantee term | Complete implementation or not | Guarantee for related party (Y/N) |
| Guarantee for the subsidiaries | ||||||||||
| Name of the Company guaranteed | Related Announcement disclosure date | Guarantee limit | Actual date of happening | Actual guarantee limit | Guarantee type | Collateral (if any) | Counter guarantee (if any) | Guarantee term | Complete implementation or not | Guarantee for related party (Y/N) |
| Dongguan International Food Industrial Park Development Co., Ltd. | 37,632 | 2018-07-27 | 30,632 | Joint liability guaranty | N/A | N | 14 years | N | N | |
| Total amount of approving guarantee for subsidiaries in report period (B1) | 79,138 | Total amount of actual occurred guarantee for subsidiaries in report period (B2) | 2,372 | |||||||
| Total amount of approved guarantee for subsidiaries at the end of reporting period (B3) | 116,770 | Total balance of actual guarantee for subsidiaries at the end of reporting period (B4) | 30,632 | |||||||
| Guarantee of the subsidiaries for the subsidiaries | ||||||||||
| Name of the Company guaranteed | Related Announcement disclosure date | Guarantee limit | Actual date of happening | Actual guarantee limit | Guarantee type | Collateral (if any) | Counter guarantee (if any) | Guarantee term | Complete implementation or not | Guarantee for related party (Y/N) |
| Dongguan Shenliang Logistics Co., Ltd. | 27,300 | 2015-07-13 | 9,921 | Joint liability guaranty | N/A | N | 8 years | N | N | |
| Dongguan International Food Industrial Park Development Co., Ltd. | 39,168 | 2018-07-27 | 31,883 | Joint liability guaranty | N/A | N | 14 years | N | N | |
| Total amount of approving guarantee for subsidiaries in report period (C1) | 49,062 | Total amount of actual occurred guarantee for subsidiaries in report period (C2) | 2,469 | |||||||
| Total amount of approved guarantee for subsidiaries at the end of reporting period (C3) | 115,530 | Total balance of actual guarantee for subsidiaries at the end of reporting period (C4) | 41,804 | |||||||
| Total amount of guarantee of the Company (total of three above mentioned guarantee) | ||||||||||
| Total amount of approving guarantee in report period (A1+B1+C1) | 128,200 | Total amount of actual occurred guarantee in report period (A2+B2+C3) | 4,841 | |||||||
| Total amount of approved guarantee at the end of report period (A3+B3+C2) | 232,300 | Total balance of actual guarantee at the end of report period (A4+B4+C4) | 72,436 | |||||||
| The proportion of the total amount of actually guarantee in the net assets of the | 15.82% | |||||||||
| Company (that is A4+ B4+C4) | |
| Including: | |
| Balance of the guarantee provided for shareholder, actual controller and their related parties (D) | 0 |
| The debts guarantee amount provided for the guaranteed parties whose assets-liability ratio exceed 70% directly or indirectly (E) | 72,436 |
| Proportion of total amount of guarantee in net assets of the Company exceed 50% (F) | 0 |
| Total amount of the aforesaid three guarantees (D+E+F) | 72,436 |
Explanation on guarantee with composite wayN/A
3.Trust financing
√ Applicable □ Not applicable
Unit: 10 thousand Yuan
| Type | Fund sources | Amount occurred | Undue balance | Overdue amount | Impairment amount accrual for overdue financial management |
| Bank financial products | Owned funds | 34,500 | 34,500 | 0 | 0 |
| Total | 34,500 | 34,500 | 0 | 0 | |
The high-risk trust investment with single major amount or has minor security, poor fluidity and non-guaranteed
□ Applicable √Not applicable
Unrecoverable principal or impairment possibility from entrust investment
□ Applicable √ Not applicable
4. Other material contracts
□ Applicable √ Not applicable
No other material contracts in the period.XIII. Explanation of other important events
√ Applicable □ Not applicable
1. Changes in directors, supervisor and senior executives
(1) On January 12, 2022, the Company received a written resignation report from Director Mr. Wang Li, who has reached thestatutory retirement age and has applied for resignation as a Director of the Company and Mr. Li does not hold any other positions inthe Company after leaving. Found more in Notice on Retirement of Directors released on Juchao Website (www.cninfo.com.cn)dated January 14, 2022.
(2) On June 5, 2022, President and legal representative of the Company Mr. Zhu Junming passed away due to illness, number of thedirectors was reduced from 8 to 7, which is not lower than the minimum number of directors as regulated in Company Law. Foundmore in Notice on Death of the President and Legal Representative of the Company released on Juchao Website(www.cninfo.com.cn) dated June 7, 2022.
XIV. Important events from subsidiaries
□ Applicable √ Not applicable
Section VII. Changes in Shares and Particulars about ShareholdersI. Changes in Share Capital
1. Changes in Share Capital
Unit: Share
| Before the Change | Increase/Decrease in the Change (+, -) | After the Change | |||||||
| Amount | Proportion | New shares issued | Bonus shares | Public reserve transfer into share capital | Others | Subtotal | Amount | Proportion | |
| I. Restricted shares | 684,601,142 | 59.40% | 0 | 0 | 0 | 0 | 0 | 684,601,142 | 59.40% |
| 1. State-owned shares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 2. State-owned legal person’s shares | 684,569,567 | 59.40% | 0 | 0 | 0 | 0 | 0 | 684,569,567 | 59.40% |
| 3. Other domestic shares | 31,575 | 0.00% | 0 | 0 | 0 | 0 | 0 | 31,575 | 0.00% |
| Including: Domestic legal person’s shares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| Domestic natural person’s shares | 31,575 | 0.00% | 0 | 0 | 0 | 0 | 0 | 31,575 | 0.00% |
| 4. Foreign shares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| Including: Foreign legal person’s shares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| Foreign natural person’s shares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| II. Unrestricted shares | 467,934,112 | 40.60% | 0 | 0 | 0 | 0 | 0 | 467,934,112 | 40.60% |
| 1. RMB ordinary shares | 416,184,832 | 36.11% | 0 | 0 | 0 | 0 | 0 | 416,184,832 | 36.11% |
| 2. Domestically listed foreign shares | 51,749,280 | 4.49% | 0 | 0 | 0 | 0 | 0 | 51,749,280 | 4.49% |
| 3. Overseas listed | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| foreign shares | |||||||||
| 4. Others | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| III. Total shares | 1,152,535,254 | 100.00% | 0 | 0 | 0 | 0 | 0 | 1,152,535,254 | 100.00% |
Reasons for share changed
□ Applicable √ Not applicable
Approval of share changed
□ Applicable √ Not applicable
Ownership transfer of share changed
□ Applicable √ Not applicable
Progress of shares buy-back
□ Applicable √ Not applicable
Implementation progress of reducing holdings of shares buy-back by centralized bidding
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to commonshareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose or need to disclosed under requirement from security regulators
□ Applicable √ Not applicable
2. Changes of lock-up stocks
□ Applicable √ Not applicable
II. Securities issuance and listing
□ Applicable √ Not applicable
III. Number of shareholders and particulars about shares holding
Unit: Share
| Total common stock shareholders in reporting period-end | 55,911 | Total preference shareholders with voting rights recovered at end of reporting period (if applicable) (see note 8) | 0 | |||||
| Particulars about common shares held above 5% by shareholders or top ten common shareholders | ||||||||
| Full name of Shareholders | Nature of shareholder | Proportion of shares held | Amount of common shares held at the end of reporting period | Changes in report period | Amount of restricted common shares held | Amount of common shares held without restriction | Information of shares pledged, tagged or frozen | |
| State of share | Amou | |||||||
| nt | ||||||||
| Shenzhen Food Materials Group Co., Ltd | State-owned legal person | 63.79% | 735,237,253 | 0 | 669,184,735 | 66,052,518 | ||
| Shenzhen Agricultural Products Group Co., Ltd | State-owned legal person | 8.23% | 94,832,294 | 0 | 15,384,832 | 79,447,462 | ||
| Dongguan Fruit Vegetable Non-staple Food Trading Market Co., Ltd. | Domestic non-state legal person | 0.75% | 8,698,216 | 8,698,216 | 0 | 8,698,216 | ||
| Jiang Runlin | Domestic nature person | 0.46% | 5,300,000 | 5,300,000 | 0 | 5,300,000 | ||
| Hong Kong Securities Clearing Company Limited | Foreign legal person | 0.35% | 4,070,515 | 1,407,928 | 0 | 4,070,515 | ||
| Lin Junbo | Domestic nature person | 0.33% | 3,830,100 | 230,100 | 0 | 3,830,100 | ||
| Zhong Zhenxin | Domestic nature person | 0.29% | 3,295,500 | 0 | 0 | 3,295,500 | ||
| Sun Huiming | Domestic nature person | 0.28% | 3,250,062 | 0 | 0 | 3,250,062 | ||
| Chen Jiuyang | Domestic nature person | 0.26% | 2,978,570 | 121,870 | 0 | 2,978,570 | ||
| Wang Yulin | Domestic nature person | 0.12% | 1,370,630 | 1,370,630 | 0 | 1,370,630 | ||
| Strategy investor or general legal person becoming the top 10 common shareholders by placing new shares (if applicable) (see note 3) | N/A | |||||||
| Explanation on associated relationship among the aforesaid shareholders | Shenzhen SASAC directly holds 100% equity of Shenzhen Food Materials Group Co., Ltd., and holds 34% of Shenzhen Agricultural Products Group Co., Ltd. indirectly through Shenzhen Food Materials Group Co., Ltd.; the Company was not aware of any related relationship between other shareholders above, and whether they belonged to parties acting in concert as defined by the Acquisition Management Method of Listed Company. | |||||||
| Description of the above shareholders in relation to delegate/entrusted voting rights and abstention from voting rights. | N/A | |||||||
| Special note on the repurchase account among the top 10 shareholders (if applicable) (see note | N/A | |||||||
| 11) | |||
| Particular about top ten shareholders with un-lock up common stocks held | |||
| Shareholders’ name | Amount of common shares held without restriction at Period-end | Type of shares | |
| Type | Number | ||
| Shenzhen Agricultural Products Group Co., Ltd | 79,447,462 | RMB common shares | 79,447,462 |
| Shenzhen Food Materials Group Co., Ltd | 66,052,518 | RMB common shares | 66,052,518 |
| Dongguan Fruit Vegetable Non-staple Food Trading Market Co., Ltd. | 8,698,216 | RMB common shares | 8,698,216 |
| Jiang Runlin | 5,300,000 | RMB common shares | 5,300,000 |
| Hong Kong Securities Clearing Company Limited | 4,070,515 | RMB common shares | 4,070,515 |
| Lin Junbo | 3,830,100 | RMB common shares | 3,830,100 |
| Zhong Zhenxin | 3,295,500 | RMB common shares | 3,295,500 |
| Sun Huiming | 3,250,062 | Domestically listed foreign shares | 3,250,062 |
| Chen Jiuyang | 2,978,570 | RMB common shares | 2,978,570 |
| Wang Yulin | 1,370,630 | RMB common shares | 1,370,630 |
| Expiation on associated relationship or consistent actors within the top 10 un-lock up common shareholders and between top 10 un-lock up common shareholders and top 10 common shareholders | Shenzhen SASAC directly holds 100% equity of Shenzhen Food Materials Group Co., Ltd., and holds 34% of Shenzhen Agricultural Products Group Co., Ltd. indirectly through Shenzhen Food Materials Group Co., Ltd.; the Company was not aware of any related relationship between other shareholders above, and whether they belonged to parties acting in concert as defined by the Acquisition Management Method of Listed Company. | ||
| Explanation on top 10 common shareholders involving margin business (if applicable) (see note 4) | At the end of reporting period, Shareholder – Lin Junbo holds 3,094,100 shares of the Company under customer credit trading secured securities account through China Merchants Securities Co., Ltd., common account holds 736,000 shares, and 3,830,100 shares are held in total at end of the Period. During the reporting period, the credit trading secured securities account has 505,900 shares decreased, and shares held in the common account has 736,000 shares increased, shares held are increased 230,100 shares in total. | ||
Whether top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held have a buy-backagreement dealing in reporting period
□ Yes √ No
The top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held of the Company have nobuy-back agreement dealing in reporting period.
IV. Changes of shares held by directors, supervisors and senior executives
□ Applicable √ Not applicable
Shares held by directors, supervisors and senior executives have no changes in reporting period, found more details in Annual Report2021.
V. Changes in controlling shareholders or actual controllersChange of controlling shareholder during the reporting period
□ Applicable √ Not applicable
The Company had no change of controlling shareholder during the reporting periodChange of actual controller during the reporting period
□ Applicable √ Not applicable
The Company had no change of actual controller during the reporting period
Section VIII. Preferred Stock
□ Applicable √ Not applicable
The Company had no preferred stock in the Period.
Section IX Corporate Bonds
□ Applicable √ Not applicable
Section X Financial ReportI. Audit reportWhether the semi annual report is audited
□ Yes √ No
The company's semi annual financial report has not been audited
II. Financial StatementStatement in Financial Notes are carried Unit: CNY/RMB
1. Consolidated Balance Sheet
Prepared by SHENZHEN CEREALS HOLDINGS CO., LTD.
June 30, 2022
Unit: CNY/RMB
| Item | June 30, 2022 | January 1, 2022 |
| Current assets: | ||
| Monetary funds | 72,460,681.82 | 50,409,923.65 |
| Settlement provisions | ||
| Capital lent | ||
| Trading financial assets | 72,348,385.01 | 211,060,770.50 |
| Derivative financial assets | ||
| Note receivable | 97,750.00 | 687,242.00 |
| Account receivable | 174,146,597.77 | 283,047,341.62 |
| Receivable financing | ||
| Accounts paid in advance | 94,594,325.01 | 115,894,774.61 |
| Insurance receivable | ||
| Reinsurance receivables | ||
| Contract reserve of reinsurance receivable | ||
| Other account receivable | 46,469,468.38 | 32,377,838.35 |
| Including: Interest receivable | ||
| Dividend receivable | ||
| Buying back the sale of financial assets | ||
| Inventories | 3,619,041,269.92 | 3,460,618,674.81 |
| Contract assets | ||
| Assets held for sale | ||
| Non-current asset due within one year |
| Other current assets | 96,125,797.78 | 88,457,984.90 |
| Total current assets | 4,175,284,275.69 | 4,242,554,550.44 |
| Non-current assets: | ||
| Loans and payments on behalf | ||
| Debt investment | ||
| Other debt investment | ||
| Long-term account receivable | ||
| Long-term equity investment | 72,955,363.50 | 73,490,443.49 |
| Investment in other equity instrument | ||
| Other non-current financial assets | 80,057,500.00 | 57,500.00 |
| Investment real estate | 225,116,917.61 | 233,096,698.49 |
| Fixed assets | 2,122,654,384.98 | 2,127,831,149.19 |
| Construction in progress | 198,788,393.17 | 207,946,539.97 |
| Productive biological asset | 373,155.60 | 378,001.80 |
| Oil and gas asset | ||
| Right-of-use assets | 87,899,195.17 | 97,648,674.06 |
| Intangible assets | 595,234,927.12 | 609,405,194.82 |
| Expense on Research and Development | 326,306.90 | |
| Goodwill | 1,953,790.56 | 1,953,790.56 |
| Long-term expenses to be apportioned | 26,155,659.30 | 28,795,206.45 |
| Deferred income tax asset | 40,597,732.21 | 40,529,425.47 |
| Other non-current asset | 5,297,491.87 | 5,931,731.58 |
| Total non-current asset | 3,457,410,817.99 | 3,427,064,355.88 |
| Total assets | 7,632,695,093.68 | 7,669,618,906.32 |
| Current liabilities: | ||
| Short-term loans | 725,635,087.73 | 504,766,782.25 |
| Loan from central bank | ||
| Capital borrowed | ||
| Trading financial liability | ||
| Derivative financial liability | ||
| Note payable | ||
| Account payable | 554,848,179.43 | 426,906,669.71 |
| Accounts received in advance | 8,440,204.85 | 2,379,891.67 |
| Contract liability | 83,531,467.12 | 182,972,314.85 |
| Selling financial asset of repurchase | ||
| Absorbing deposit and interbank deposit | ||
| Security trading of agency |
| Security sales of agency | ||
| Wage payable | 243,659,888.70 | 320,706,055.47 |
| Taxes payable | 45,257,793.47 | 86,813,588.15 |
| Other account payable | 379,510,687.74 | 376,607,198.99 |
| Including: Interest payable | ||
| Dividend payable | 2,933,690.04 | 2,933,690.04 |
| Commission charge and commission payable | ||
| Reinsurance payable | ||
| Liability held for sale | ||
| Non-current liabilities due within one year | 112,832,529.55 | 128,732,475.16 |
| Other current liabilities | 1,764,823.46 | 4,367,576.91 |
| Total current liabilities | 2,155,480,662.05 | 2,034,252,553.16 |
| Non-current liabilities: | ||
| Insurance contract reserve | ||
| Long-term loans | 624,310,269.81 | 730,521,692.22 |
| Bonds payable | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Lease liability | 79,340,597.07 | 80,173,743.75 |
| Long-term account payable | 17,445,737.26 | 17,266,921.98 |
| Long-term wages payable | ||
| Accrual liability | 3,500,000.00 | 3,500,000.00 |
| Deferred income | 87,080,932.92 | 93,129,536.68 |
| Deferred income tax liabilities | 13,661,333.11 | 13,868,191.82 |
| Other non-current liabilities | ||
| Total non-current liabilities | 825,338,870.17 | 938,460,086.45 |
| Total liabilities | 2,980,819,532.22 | 2,972,712,639.61 |
| Owner’s equity: | ||
| Share capital | 1,152,535,254.00 | 1,152,535,254.00 |
| Other equity instrument | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Capital public reserve | 1,259,639,656.65 | 1,259,639,656.65 |
| Less: Inventory shares | ||
| Other comprehensive income | ||
| Reasonable reserve | ||
| Surplus public reserve | 405,575,490.42 | 405,575,490.42 |
| Provision of general risk | ||
| Retained profit | 1,761,935,670.70 | 1,812,541,701.27 |
| Total owner’ s equity attributable to parent company | 4,579,686,071.77 | 4,630,292,102.34 |
| Minority interests | 72,189,489.69 | 66,614,164.37 |
| Total owner’ s equity | 4,651,875,561.46 | 4,696,906,266.71 |
| Total liabilities and owner’ s equity | 7,632,695,093.68 | 7,669,618,906.32 |
Legal Representative: Hu XianghaiPerson in charge of accounting works: Lu YuhePerson in charge of accounting institute: Wen Jieyu
2. Balance Sheet of Parent Company
Unit: CNY/RMB
| Item | June 30, 2022 | January 1, 2022 |
| Current assets: | ||
| Monetary funds | 3,445,937.73 | 2,264,388.89 |
| Trading financial assets | 72,189,251.68 | 181,047,789.68 |
| Derivative financial assets | ||
| Note receivable | ||
| Account receivable | 33,806,426.32 | 135,678,426.30 |
| Receivable financing | ||
| Accounts paid in advance | ||
| Other account receivable | 1,163,766,691.58 | 983,939,717.84 |
| Including: Interest receivable | ||
| Dividend receivable | 540,000,000.00 | 540,000,000.00 |
| Inventories | ||
| Contract assets | ||
| Assets held for sale | ||
| Non-current assets maturing within one year | ||
| Other current assets | 274,391.11 | 1,083,482.32 |
| Total current assets | 1,273,482,698.42 | 1,304,013,805.03 |
| Non-current assets: | ||
| Debt investment | ||
| Other debt investment | ||
| Long-term receivables | ||
| Long-term equity investments | 4,024,019,425.09 | 4,048,519,425.09 |
| Investment in other equity instrument | ||
| Other non-current financial assets |
| Investment real estate | 16,279,118.62 | 16,514,913.76 |
| Fixed assets | 33,958,651.80 | 32,097,138.18 |
| Construction in progress | 516,131.26 | 239,282.75 |
| Productive biological assets | 373,155.60 | 378,001.80 |
| Oil and natural gas assets | ||
| Right-of-use assets | ||
| Intangible assets | 17,924,048.27 | 19,338,264.04 |
| Research and development costs | ||
| Goodwill | ||
| Long-term deferred expenses | 1,354,041.18 | 1,538,731.98 |
| Deferred income tax assets | ||
| Other non-current assets | 4,701,190.87 | 4,602,630.58 |
| Total non-current assets | 4,099,125,762.69 | 4,123,228,388.18 |
| Total assets | 5,372,608,461.11 | 5,427,242,193.21 |
| Current liabilities: | ||
| Short-term borrowings | 28,175,026.24 | |
| Trading financial liability | ||
| Derivative financial liability | ||
| Notes payable | ||
| Account payable | ||
| Accounts received in advance | ||
| Contract liability | ||
| Wage payable | 27,395,625.61 | 29,472,163.62 |
| Taxes payable | 4,967,437.88 | 2,801,612.80 |
| Other accounts payable | 963,897,833.67 | 764,330,925.37 |
| Including: Interest payable | ||
| Dividend payable | 2,933,690.04 | 2,933,690.04 |
| Liability held for sale | ||
| Non-current liabilities due within one year | ||
| Other current liabilities | ||
| Total current liabilities | 996,260,897.16 | 824,779,728.03 |
| 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 | 3,500,000.00 | 3,500,000.00 |
| Deferred income | ||
| Deferred income tax liabilities | ||
| Other non-current liabilities | ||
| Total non-current liabilities | 3,500,000.00 | 3,500,000.00 |
| Total liabilities | 999,760,897.16 | 828,279,728.03 |
| Owners’ equity: | ||
| Share capital | 1,152,535,254.00 | 1,152,535,254.00 |
| Other equity instrument | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Capital public reserve | 3,018,106,568.27 | 3,018,106,568.27 |
| Less: Inventory shares | ||
| Other comprehensive income | ||
| Special reserve | ||
| Surplus reserve | 133,171,062.28 | 133,171,062.28 |
| Retained profit | 69,034,679.40 | 295,149,580.63 |
| Total owner’s equity | 4,372,847,563.95 | 4,598,962,465.18 |
| Total liabilities and owner’s equity | 5,372,608,461.11 | 5,427,242,193.21 |
3. Consolidated Profit Statement
Unit: CNY/RMB
| Item | Semi-annual of 2022 | Semi-annual of 2021 |
| I. Total operating income | 4,338,044,528.35 | 5,262,189,180.53 |
| Including: Operating income | 4,338,044,528.35 | 5,262,189,180.53 |
| Interest income | ||
| Insurance gained | ||
| Commission charge and commission income | ||
| II. Total operating cost | 4,027,985,541.37 | 4,901,525,013.61 |
| Including: Operating cost | 3,775,825,625.81 | 4,650,397,070.67 |
| 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 | 9,050,485.91 | 6,969,279.85 |
| Sales expense | 79,331,081.69 | 106,711,776.77 |
| Administrative expense | 125,631,541.74 | 109,316,093.65 |
| R&D expense | 10,137,177.77 | 10,926,018.15 |
| Financial expense | 28,009,628.45 | 17,204,774.52 |
| Including: Interest expenses | 27,256,521.87 | 15,362,400.04 |
| Interest income | 1,233,894.54 | 765,002.68 |
| Add: Other income | 8,030,243.98 | 4,891,929.30 |
| Investment income (Loss is listed with “-”) | 3,038,365.75 | 3,501,371.30 |
| Including: Investment income on affiliated company and joint venture | -535,079.99 | 440,179.67 |
| 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 “-”) | 221,889.46 | 288,972.32 |
| Loss of credit impairment (Loss is listed with “-”) | 245,856.01 | 34,157.37 |
| Losses of devaluation of asset (Loss is listed with “-”) | -81,499,450.86 | -111,448,173.12 |
| Income from assets disposal (Loss is listed with “-”) | 8,318.64 | |
| III. Operating profit (Loss is listed with “-”) | 240,095,891.32 | 257,940,742.73 |
| Add: Non-operating income | 1,133,017.31 | 1,627,702.56 |
| Less: Non-operating expense | 67,133.97 | 403,164.30 |
| IV. Total profit (Loss is listed with “-”) | 241,161,774.66 | 259,165,280.99 |
| Less: Income tax expense | 2,958,666.41 | 13,407,354.56 |
| V. Net profit (Net loss is listed with “-”) | 238,203,108.25 | 245,757,926.43 |
| (i) Classify by business continuity | ||
| 1.continuous operating net profit (net loss listed with ‘-”) | 238,203,108.25 | 245,757,926.43 |
| 2.termination of net profit (net loss listed with ‘-”) | ||
| (ii) Classify by ownership |
| 1.Net profit attributable to owner’s of parent company | 237,527,782.93 | 243,846,874.76 |
| 2.Minority shareholders’ gains and losses | 675,325.32 | 1,911,051.67 |
| 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 | 238,203,108.25 | 245,757,926.43 |
| Total comprehensive income attributable to owners of parent Company | 237,527,782.93 | 243,846,874.76 |
| Total comprehensive income attributable to minority shareholders | 675,325.32 | 1,911,051.67 |
| VIII. Earnings per share: | ||
| (i) Basic earnings per share | 0.2061 | 0.2116 |
| (ii) Diluted earnings per share | 0.2061 | 0.2116 |
Enterprise combines 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: Hu XianghaiPerson in charge of accounting works: Lu YuhePerson in charge of accounting institute: Wen Jieyu
4. Profit Statement of Parent Company
Unit: CNY/RMB
| Item | Semi-annual of 2022 | Semi-annual of 2021 |
| I. Operating income | 94,732,571.88 | 78,409,527.17 |
| Less: Operating cost | 235,795.14 | 235,795.14 |
| Taxes and surcharge | 239,797.63 | 443,112.63 |
| Sales expenses | ||
| Administration expenses | 35,210,060.97 | 40,040,419.50 |
| R&D expenses | ||
| Financial expenses | -249,289.38 | 893,183.83 |
| Including: Interest expenses | 1,215,509.60 | 1,145,171.80 |
| Interest income | 1,385,168.73 | 285,480.74 |
| Add: Other income | 216,639.79 | 169,161.92 |
| Investment income (Loss is listed with “-”) | 2,279,175.50 | 567,166.06 |
| 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 “-”) | 221,889.46 | 288,972.32 |
| Loss of credit impairment (Loss is listed with “-”) | -220,207.77 | |
| Losses of devaluation of asset (Loss is listed with “-”) | ||
| Income on disposal of assets (Loss is listed with “-”) | ||
| II. Operating profit (Loss is listed with “-”) | 62,013,912.27 | 37,602,108.60 |
| Add: Non-operating income | 5,000.00 | |
| Less: Non-operating expense | 150,000.00 | |
| III. Total Profit (Loss is listed with “-”) | 62,018,912.27 | 37,452,108.60 |
| Less: Income tax | ||
| IV. Net profit (Net loss is listed with “-”) | 62,018,912.27 | 37,452,108.60 |
| (i) continuous operating net profit (net loss listed with ‘-”) | 62,018,912.27 | 37,452,108.60 |
| (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 | 62,018,912.27 | 37,452,108.60 |
| VII. Earnings per share: | ||
| (i) Basic earnings per share | ||
| (ii) Diluted earnings per share |
5. Consolidated Cash Flow Statement
Unit: CNY/RMB
| Item | Semi-annual of 2022 | Semi-annual of 2021 |
| I. Cash flows arising from operating activities: | ||
| Cash received from selling commodities and providing labor services | 4,505,675,220.29 | 4,872,625,307.71 |
| 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 | 27,412,268.12 | 15,314,266.13 |
| Other cash received concerning operating activities | 969,031,224.09 | 509,043,498.66 |
| Subtotal of cash inflow arising from operating activities | 5,502,118,712.50 | 5,396,983,072.50 |
| Cash paid for purchasing commodities and receiving labor service | 3,881,170,164.56 | 5,229,031,194.26 |
| 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 | 213,374,966.28 | 158,496,287.47 |
| Taxes paid | 117,336,305.52 | 108,750,086.71 |
| Other cash paid concerning operating activities | 1,029,863,773.28 | 591,977,655.39 |
| Subtotal of cash outflow arising from operating activities | 5,241,745,209.64 | 6,088,255,223.83 |
| Net cash flows arising from operating activities | 260,373,502.86 | -691,272,151.33 |
| II. Cash flows arising from investing activities: | ||
| Cash received from recovering investment | 485,000,000.00 | 270,000,000.00 |
| Cash received from investment income | 2,507,720.69 | 3,051,423.05 |
| Net cash received from disposal of fixed, intangible and other long-term assets | 570.00 | 17,565.00 |
| Net cash received from disposal of subsidiaries and other units | ||
| Other cash received concerning investing activities | 154.49 | 54,336.41 |
| Subtotal of cash inflow from investing activities | 487,508,445.18 | 273,123,324.46 |
| Cash paid for purchasing fixed, intangible and other long-term assets | 97,877,199.01 | 98,438,615.15 |
| Cash paid for investment | 415,000,000.00 | 120,006,966.66 |
| Net increase of mortgaged loans | ||
| Net cash received from subsidiaries and other units obtained | 321,680,000.00 | |
| Other cash paid concerning investing activities | 928.80 | 109,602.00 |
| Subtotal of cash outflow from investing activities | 512,878,127.81 | 540,235,183.81 |
| Net cash flows arising from investing activities | -25,369,682.63 | -267,111,859.35 |
| III. Cash flows arising from financing activities: | ||
| Cash received from absorbing investment | 4,900,000.00 | 490,000.00 |
| Including: Cash received from absorbing minority shareholders’ investment by subsidiaries | 4,900,000.00 | |
| Cash received from loans | 1,923,171,121.48 | 2,006,423,247.45 |
| Other cash received concerning financing activities | ||
| Subtotal of cash inflow from financing activities | 1,928,071,121.48 | 2,006,913,247.45 |
| Cash paid for settling debts | 1,817,214,190.96 | 907,763,968.37 |
| Cash paid for dividend and profit distributing or interest paying | 314,281,984.10 | 262,471,931.68 |
| Including: Dividend and profit of minority shareholder paid by subsidiaries | ||
| Other cash paid concerning financing activities | 9,528,424.77 | |
| Subtotal of cash outflow from financing activities | 2,141,024,599.83 | 1,170,235,900.05 |
| Net cash flows arising from financing activities | -212,953,478.35 | 836,677,347.40 |
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | 40,259.74 | -13,479.55 |
| V. Net increase of cash and cash equivalents | 22,090,601.62 | -121,720,142.83 |
| Add: Balance of cash and cash equivalents at the period -begin | 49,370,080.20 | 190,494,225.94 |
| VI. Balance of cash and cash | 71,460,681.82 | 68,774,083.11 |
equivalents at the period -end
6. Cash Flow Statement of Parent Company
Unit: CNY/RMB
| Item | Semi-annual of 2022 | Semi-annual of 2021 |
| I. Cash flows arising from operating activities: | ||
| Cash received from selling commodities and providing labor services | 456,611,209.00 | 826,505.31 |
| Write-back of tax received | 127,947.08 | |
| Other cash received concerning operating activities | 1,390,207,872.37 | 664,855,399.05 |
| Subtotal of cash inflow arising from operating activities | 1,846,947,028.45 | 665,681,904.36 |
| Cash paid for purchasing commodities and receiving labor service | 45,000,000.00 | |
| Cash paid to/for staff and workers | 31,404,815.06 | 25,664,475.70 |
| Taxes paid | 2,411,446.34 | 1,938,500.47 |
| Other cash paid concerning operating activities | 1,384,817,990.79 | 337,740,658.17 |
| Subtotal of cash outflow arising from operating activities | 1,418,634,252.19 | 410,343,634.34 |
| Net cash flows arising from operating activities | 428,312,776.26 | 255,338,270.02 |
| II. Cash flows arising from investing activities: | ||
| Cash received from recovering investment | 255,000,000.00 | 10,000,000.00 |
| Cash received from investment income | 1,359,602.96 | 123,077.77 |
| Net cash received from disposal of fixed, intangible and other long-term assets | ||
| Net cash received from disposal of subsidiaries and other units | ||
| Other cash received concerning investing activities | 54,336.41 | |
| Subtotal of cash inflow from investing activities | 256,359,602.96 | 10,177,414.18 |
| Cash paid for purchasing fixed, | 4,135,551.25 | 4,271,363.11 |
| intangible and other long-term assets | ||
| Cash paid for investment | 145,000,000.00 | 20,006,966.66 |
| Net cash received from subsidiaries and other units obtained | 321,680,000.00 | |
| Other cash paid concerning investing activities | 216,912,975.11 | |
| Subtotal of cash outflow from investing activities | 366,048,526.36 | 345,958,329.77 |
| Net cash flows arising from investing activities | -109,688,923.40 | -335,780,915.59 |
| III. Cash flows arising from financing activities: | ||
| Cash received from absorbing investment | ||
| Cash received from loans | 342,127,475.10 | 411,800,462.65 |
| Other cash received concerning financing activities | ||
| Subtotal of cash inflow from financing activities | 342,127,475.10 | 411,800,462.65 |
| Cash paid for settling debts | 370,299,684.12 | 99,925,561.27 |
| Cash paid for dividend and profit distributing or interest paying | 289,268,397.83 | 230,890,398.24 |
| Other cash paid concerning financing activities | ||
| Subtotal of cash outflow from financing activities | 659,568,081.95 | 330,815,959.51 |
| Net cash flows arising from financing activities | -317,440,606.85 | 80,984,503.14 |
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | -1,697.17 | |
| V. Net increase of cash and cash equivalents | 1,181,548.84 | 541,857.57 |
| Add: Balance of cash and cash equivalents at the period -begin | 2,264,388.89 | 5,312,806.71 |
| VI. Balance of cash and cash equivalents at the period -end | 3,445,937.73 | 5,854,664.28 |
7. Statement of Changes in Owners’ Equity (Consolidated)
Current Amount
Unit: CNY/RMB
| Item | Semi-annual of 2022 | ||
| Owners’ equity attributable to the parent Company | Min | Tota | |
| 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 | ority interests | l owners’ equity | |||
| Preferred stock | Perpetual capital securities | Other | |||||||||||||
| I. The ending balance of the previous year | 1,152,535,254.00 | 1,259,639,656.65 | 405,575,490.42 | 1,812,541,701.27 | 4,630,292,102.34 | 66,614,164.37 | 4,696,906,266.71 | ||||||||
| 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 | 1,152,535,254.00 | 1,259,639,656.65 | 405,575,490.42 | 1,812,541,701.27 | 4,630,292,102.34 | 66,614,164.37 | 4,696,906,266.71 | ||||||||
| III. Increase/ Decrease in the period (Decrease is listed with “-”) | -50,606,030.57 | -50,606,030.57 | 5,575,325.32 | -45,030,705.25 | |||||||||||
| (i) Total comprehensive income | 237,527,782.93 | 237,527,782.93 | 675,325.32 | 238,203,108.25 | |||||||||||
| (ii) Owners’ devoted and decreased capital | 4,900,000.00 | 4,900,000.00 | |||||||||||||
| 1.Common shares invested by shareholders | 4,900,000.00 | 4,900,000.00 | |||||||||||||
| 2. Capital invested by holders of other equity instruments | |||||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | |||||||||||||||
| 4. Other | |||||||||||||||
| (iii) Profit distribution | -288,133,813.50 | -288,133,813.50 | -288,133,813.50 | ||||||||||||
| 1. Withdrawal of surplus reserves | |||||||||||||||
| 2. Withdrawal of general risk provisions | |||||||||||||||
| 3. Distribution for owners (or shareholders) | -288,133,813.50 | -288,133,813.50 | -288,133,813.50 | ||||||||||||
| 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 | 723,692.27 | 723,692.27 | 723,692.27 | ||||||||||||
| 2. Usage in the report period | 723,692.27 | 723,692.27 | 723,692.27 | ||||||||||||
| (vi) Others | |||||||||||||||
| VI. Balance at the end of the period | 1,152,535,254.00 | 1,259,639,656.65 | 405,575,490.42 | 1,761,935,670.70 | 4,579,686,071.77 | 72,189,489.69 | 4,651,875,561.46 |
Amount of the previous period
Unit: CNY/RMB
| 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 securities | Other | |||||||||||||
| I. The ending balance of the previous year | 1,152,535,254.00 | 1,422,892,729.36 | 382,367,575.37 | 1,637,536,441.03 | 4,595,331,999.76 | 199,913,404.33 | 4,795,245,404.09 | ||||||||
| 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 | 1,152,535,254.00 | 1,422,892,729.36 | 382,367,575.37 | 1,637,536,441.03 | 4,595,331,999.76 | 199,913,404.33 | 4,795,245,404.09 | ||||||||
| III. Increase/ Decrease in the period (Decrease is | -160,572,715. | 13,339,823.96 | -147,232,891. | -159,837,432.71 | -307,070,324.37 | ||||||||||
| listed with “-”) | 62 | 66 | |||||||||||||
| (i) Total comprehensive income | 243,846,874.76 | 243,846,874.76 | 1,911,051.67 | 245,757,926.43 | |||||||||||
| (ii) Owners’ devoted and decreased capital | -160,572,715.62 | -160,572,715.62 | -161,748,484.38 | -322,321,200.00 | |||||||||||
| 1.Common shares invested by shareholders | -160,572,715.62 | -160,572,715.62 | -161,748,484.38 | -322,321,200.00 | |||||||||||
| 2. Capital invested by holders of other equity instruments | |||||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | |||||||||||||||
| 4. Other | |||||||||||||||
| (iii) Profit distribution | -230,507,050.80 | -230,507,050.80 | -230,507,050.80 | ||||||||||||
| 1. Withdrawal of surplus reserves | |||||||||||||||
| 2. Withdrawal of general risk provisions | |||||||||||||||
| 3. Distribution | -230, | -230, | -230,5 |
| for owners (or shareholders) | 507,050.80 | 507,050.80 | 07,050.80 | ||||||||||||
| 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 | |||||||||||||||
| VI. Balance at the end of the period | 1,152,535,254.00 | 1,262,320,013.74 | 382,367,575.37 | 1,650,876,264.99 | 4,448,099,108.10 | 40,075,971.62 | 4,488,175,079.72 |
8. Statement of Changes in Owners’ Equity (Parent Company)
Current Amount
Unit: CNY/RMB
| Item | Semi-annual of 2022 | |||||||||||
| 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 | 1,152,535,254.00 | 3,018,106,568.27 | 133,171,062.28 | 295,149,580.63 | 4,598,962,465.18 | |||||||
| Add: Changes of accounting policy | ||||||||||||
| Error correction of the last period | ||||||||||||
| Other | ||||||||||||
| II. The beginning balance of the current year | 1,152,535,254.00 | 3,018,106,568.27 | 133,171,062.28 | 295,149,580.63 | 4,598,962,465.18 | |||||||
| III. Increase/ Decrease in the period (Decrease is | -226,114,901. | -226,114,901.23 | ||||||||||
| listed with “-”) | 23 | |||||||||||
| (i) Total comprehensive income | 62,018,912.27 | 62,018,912.27 | ||||||||||
| (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 | -288,133,813.50 | -288,133,813.50 | ||||||||||
| 1. Withdrawal of surplus reserves | ||||||||||||
| 2. Distribution for owners (or shareholders) | -288,133,813.50 | -288,133,813.50 | ||||||||||
| 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 | ||||||||||||
| VI. Balance at the end of the period | 1,152,535,254.00 | 3,018,106,568.27 | 133,171,062.28 | 69,034,679.40 | 4,372,847,563.95 |
Amount of the previous period
Unit: CNY/RMB
| 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 stoc | Perpetual capital | Other | ||||||||||
| k | securities | |||||||||||
| I. The ending balance of the previous year | 1,152,535,254.00 | 3,018,106,568.27 | 109,963,147.23 | 316,785,396.01 | 4,597,390,365.51 | |||||||
| Add: Changes of accounting policy | ||||||||||||
| Error correction of the last period | ||||||||||||
| Other | ||||||||||||
| II. The beginning balance of the current year | 1,152,535,254.00 | 3,018,106,568.27 | 109,963,147.23 | 316,785,396.01 | 4,597,390,365.51 | |||||||
| III. Increase/ Decrease in the period (Decrease is listed with “-”) | -193,054,942.20 | -193,054,942.20 | ||||||||||
| (i) Total comprehensive income | 37,452,108.60 | 37,452,108.60 | ||||||||||
| (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 | -230,507,050.80 | -230,507,050.80 | ||||||||||
| 1. Withdrawal of surplus reserves | ||||||||||||
| 2. Distribution for owners (or shareholders) | -230,507,050.80 | -230,507,050.80 | ||||||||||
| 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 | ||||||||||||
| VI. Balance at the end of the period | 1,152,535,254.00 | 3,018,106,568.27 | 109,963,147.23 | 123,730,453.81 | 4,404,335,423.31 |
III. Basic information of Company
Shenzhen Cereals Holdings Co., Ltd. (formerly the Shenzhen Shenbao Industrial Co., Ltd., hereinafter referred toas “Company” or “the Company” ), formerly named Shenzhen Shenbao Canned Food Company, obtainedapproval (Document (1991) No.978) from Shenzhen Municipal People’s Government to change to the name asShenzhen Shenbao Industrial Co., ltd. on 1 August 1991.Then with the approval (Document (1991)No.126) fromPeople’s Bank of China, the Company began to list on Shenzhen Stock Exchange. The Company belongs to thegrain, oil, food and beverage industry.
As of 30 June 2022, the cumulative amount of shares issued by the Company was 1,152,535,254 shares withregistered capital of 1,152,535,254.00 yuan. Registered address: Shenzhen, Guangdong Province; HQ of theCompany: 8/F, Tower B, No.4 Building, Software Industry Base, South District, Science & Technology Park,Xuefu Rd., Yuehai Street, Nanshan District, Shenzhen. Main business of the Company: general operating items:
Purchase and sales of grain and oil, grain & oil reserves; operation and processing of grain & oil products;production of tea, tea products, tea and natural plant extract, canned foods, beverages and native products(business license of the production place shall be separately applied for); feed management and processing(outsourcing); investment, operation and development of grain & oil logistics, feed logistics and tea garden etc.;sales of feed and tea; warehousing services; food circulation services; modern food supply chain services;technology development and services of grain & oil, tea, plant products, soft drinks and foods; construction of E-commerce and information, IT development and supporting services; industrial investment (specific items will be
declared separately); domestic trade; operating the import and export business; engaged in real estate developmentand operation on the lands where the right-to-use has been legally acquired; development, operation, leasing andmanagement of the own property; property management; providing management services to hotels.(itemsmentioned above which are involved in approval from national laws, administrative regulations and decision ofthe state council, must be submitted for examination and approval before operation ). Licensed business item:
wholesale of prepackaged food (excluding reheating prepackaged food) (in non-physical way); informationservice (internet information service only); general freight, professional transportation (refrigeration and fresh-keeping). Parent enterprise of the Company: Shenzhen Food Materials Group Co., Ltd; actual controller of theCompany: Assets Supervision and Administration Commission of Shenzhen municipal People’s Government.
Change of the consolidate scope in the Period found more in “Note VIII. Change of consolidate scope”
Information with subsidiaries concerned found more in the “Note IX. Equity in other entity”IV. Basis of preparation of financial statements
1. Basis of preparation
The financial statement are prepared in line with the Accounting Standards for Business Enterprise -BasicStandard issued by Ministry of Finance and specific accounting principle as well as the application guidance forthe accounting principles for enterprise, interpretation to the accounting principles for enterprise and other relatedrequirements (hereinafter referred to as Accounting Standards for Business Enterprise), combining theInformation Disclosure Preparation Rules for Company Public Issuing Securities No.15-General Rules forFinancial Report of the CSRC
2. Going concern
The financial statement has been prepared on a going concern basis.V. Major accounting policy, accounting estimationSpecific accounting policies and estimation attention:
The following disclosures have covered the specific accounting policy and estimation formulated by the Company in accordancewith the actual production and operation characteristics. Found more in Note “15. Inventory ”, “24. Fix assets” and“39. Revenue”
1. Statement for observation of Accounting Standard for Business EnterpriseThe financial statements prepared by the Company are in accordance to requirements of Accounting Standard forBusiness Enterprise issued by Ministry of Finance, which truly and completely reflect the financial status of theCompany and parent company on 30 June 2022, as well as the consolidate and parent company’s operational
results and cash flow from Jan.-Jun. of 2022.
2. Accounting period
Calendar year is the accounting period for the Company, that is falls to the range starting from 1 January to 31December.
3. Operating cycle
Operating cycle of the Company was 12 months
4. Standard 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 samecontrolBusiness combination under the same control: The assets and liabilities the Company acquired in a businesscombination shall be measured in accordance with book value of assets, liabilities (including the ultimatecontrolling party of goodwill acquired by the merging parties and the formation of) stated in combined financialreport of the ultimate controlling party on the merger date. The net book value of assets and the payment of themerger consideration in the merger book value (or nominal value of shares issued) shall be adjusted in the sharepremium of reserve capital. the share premium in capital reserve is not enough for deducting, retained earnings .
Business combination not under the same control: Combination cost is the fair value of the assets paid, theliabilities incurred or assumed by the purchaser for the acquisition of the control of the purchaser and the equitysecurities issued on the purchase date. The difference between the fair value and book value is recognized in profitor loss. Goodwill is realized by the Company as for the difference between the combination cost and the fair valueof the recognizable net assets of the acquiree acquired by acquirer in such business combination. In case that theabove cost is less than the above fair value even with re-review, then the difference shall be recorded in currentgains and losses. Each identifiable assets, liabilities and contingent liability of the acquiree acquired in acombination that qualifies for recognition is measured at fair value at the date of purchase.
The directed expenses incurred in the business combination are recorded into current gains/losses; the trading feesfor issuing equity securities or debt securities for the business combination shall be recorded into the initialconfirmation amount of equity securities or debt securities.
6. Methods for preparation of consolidated financial statements
1.1 Consolidated scope
The consolidation scope of the consolidated financial statements of the Company is fixed on the basis of control,which includes the Company and all subsidiaries. Control means that the Company has power over the investee,enjoys variable returns through its participation in the investee’s related activities, and has the ability to influencethe amount of returns by using the power over the investee.
1.2 Consolidated procedure
The Company regards the entire enterprise group as an accounting entity and prepares consolidated financialstatements in accordance with unified accounting policies to reflect the overall financial status, operating resultsand cash flow of the enterprise group. The influence of internal transactions between the company and itssubsidiaries and among the subsidiaries shall be offset. If internal transactions indicate that the relevant assetshave suffered impairment losses, the partial losses shall be confirmed in full. If the accounting policy andaccounting period adopted by the subsidiary are inconsistent with the Company, when preparing the consolidatedfinancial statements, make necessary adjustments in accordance with the Company's accounting policy andaccounting period.
Subsidiary's equity, current net profits or losses and current comprehensive income belonging to minorityshareholders shall be listed respectively under item of owners’ equity in the consolidated balance sheet, item ofnet profit in profit sheet and item of total comprehensive income. Current loss minority shareholders of asubsidiary exceed the minority shareholders in the subsidiary's opening owners' equity share and the formation ofbalance, offset against minority interests.
(1) Increase of subsidiary or business
During the reporting period, the merger of the enterprises under the same control results in additional subsidiariesor business, the operation results and cash flow of the subsidiaries or business from beginning to the end of thereporting shall be included in the consolidated profit statement; also adjust the opening figures of the consolidatedfinancial statements and the related items in the comparative statements, the consolidated reporting body isconsidered to have existed since the point when the ultimate controller began to control it.
If additional investment and other reasons can lead investee to be controlled under the same control, equityinvestments made before obtaining controlling right, relevant gains and losses and other comprehensive income aswell as other changes in net assets confirmed during the latter date between point obtaining original equity andcombined party and combinee under the same control day to the combined day, shall be offset against the retainedearnings or profit or loss of the comparative reporting period.
During the reporting period, if a subsidiary or business is added due to a business combination not under the samecontrol, it shall be included in the consolidated financial statements on the basis of the fair value of various
identifiable assets, liabilities and contingent liabilities determined on the purchase date.
Equity held from investee before acquisition date shall be measured at fair value of acquisition date if additionalinvestment and other reasons can lead investee to be controlled under the same control. Difference between thefair value and the book value is recognized as investment income. Other comprehensive income and other changesin owner’s equity under the equity method of accounting that can be reclassified to profit or loss at a later date aretransferred to investment income for the period to which they belong at the date of purchase.
(2) Disposal of subsidiaries
① The general approach
If losing controlling right to investee due to disposal of partial equity, the remaining equity after the disposal shallbe re-measured at fair value at the date when control is lost. Price of equity disposal plus fair value of theremaining equity, then subtracting net assets held from the former subsidiary from the acquisition date orcombination date initially measured in accordance with original stake and goodwill, the difference shall beincluded in investment income of the period losing controlling right. Other comprehensive income and otherchanges in owner’s equity under the equity method of accounting related to equity investments in formersubsidiaries that can be reclassified to profit or loss in the future are transferred to investment income in thecurrent period when control is lost.
② Step disposal of subsidiaries
As multiple transactions over disposal of the subsidiary's equity lead to loss of controlling right, if the terms of thetransaction, situation and economic impact subject to one or above of the following conditions, usually it indicatesrepeated transactions should be accounted for as a package deal:
i. These transactions are made considering at the same time or in the case of mutual impact;ii. These transactions only reach a complete business results when as a whole;iii. A transaction occurs depending on the occurrence of at least one other transaction;iv. Single transaction is not economical, but considered together with other transactions it is economical.If each transaction is a package transaction, each transaction is accounted for as a disposal of a subsidiary and lossof control; before the loss of control the difference between the disposal price and the corresponding net assets ofthe subsidiary, recognized as other comprehensive income in the consolidated financial statements, into currentprofit and loss at current period when losing controlling right.
If each transactions doesn’t form a package deal, equity held from subsidiary shall be accounted in accordancewith relevant rules before losing controlling right, while in accordance with general accounting treatment whenlosing controlling right.
(3) Purchase of a minority stake in the subsidiary
Long-term equity investment of the Company for the purchase of minority interests in accordance with the newlyacquired stake in the new calculation shall be entitled to the difference between the net assets from the acquisition
date (or combination date) initially measured between the consolidated balance sheet adjustment capital balanceof the share premium in the capital reserve share premium insufficient, any excess is adjusted to retained earnings.
(4) Disposal of equity in subsidiary without losing control
Disposal price and disposal of long-term equity investment due to partial disposal of subsidiaries and long-termequity investment made between the relative net assets from the purchase date or the date of merger were initiallymeasured at the difference between the subsidiary shall enjoy, the consolidated balance sheet adjustment in thebalance of the share premium, capital balance of the share premium insufficient, any excess is adjusted to retainedearnings.
7. Classification of joint venture arrangement and accounting for joint operationsThe joint venture arrangement are divided into joint operations and joint ventures.The joint operation, a joint venture arrangement in which the joint ventures enjoys the assets and bear theliabilities associated with the arrangement.The Company recognized the following items related to its shares of interest in the joint operation:
(1) Recognition of the assets held separately by the Company, and recognition of the jointly held assets based onthe share of the Company;
(2) Recognition of the liabilities borne by the Company individually and liabilities borne jointly in proportion tothe shares;
(3)Recognition of revenue from the sales of the shares of common operating output;
(4) Recognition of the revenue from joint operation arising from the sale of the output at the shares;
(5) Recognition of the separately incurred costs and recognition ot the expenses incurred in joint operations basedon the shares;Investment in joint venture is accounted for using the equity method, found more in “V(22) Long-term equityinvestment”
8. Recognition standards for cash and cash equivalents
Cash refers to the cash on hand and cash equivalents of deposits that can be used for payment at any time. Cashequivalent refers to the investment held by the Company with short maturity and strong liquidity that are easy tobe converted into known amounts with little risk of change in cash value.
9. Foreign currency business and conversion of foreign currency statement
1.1 Foreign currency business
The foreign currency business uses the spot exchange rate on the transaction date as the conversion rate to convertthe foreign currency amount into RMB.The balance of foreign currency monetary items on the balance sheet date is converted at the spot exchange rateon the balance sheet date. The resulting exchange differences, except that the balance of exchange generated from
the foreign currency special borrowings related to the assets whose acquisition and construction are eligible forcapitalization is disposed in accordance with the principle of borrowing costs capitalization, are included in thecurrent profit and loss.
1.2 Conversion of foreign currency financial statements
Assets and liabilities in the balance sheet are converted at the spot exchange rate on the balance sheet date; exceptfor the “undistributed profit” item, other items of the owner's equity items are converted at the spot exchange rateat the time of occurrence. Income and expense items in the income statement are converted at the spot exchangerate on the transaction date.When disposing an overseas operation, the translation difference of the foreign currency financial statementsrelated to the overseas operation is transferred from the owner's equity items to the disposal of the current profitand loss.
10. Financial instruments
The Company recognizes a financial assets, financial liabilities or equity instrument when it becomes a party to afinancial instrument contract.
1.1 Categories of financial instruments
According to the business model of managing financial assets and the contractual cash flow characteristics offinancial assets, at initial recognition, the Company classifies the financial assets into the financial assetsmeasured at amortized cost, the financial assets(debt instrument) measured at fair value and whose changes areincluded in other comprehensive income, and the financial assets measured at fair value and whose changes areincluded in current gain or loss.
The Company classifies the financial assets that meet the following conditions and are not designated to bemeasured at fair value and whose changes are recorded into the current gain/losses as financial assets measured atamortized cost:
－ the business mode is aimed at collecting contractual cash flows；－ contractual cash flows represent only payments of principal and interest based on the outstanding principalamount.
The Company classifies the financial assets (debt instruments) that meet the following conditions and are notspecified as measured at fair value and whose changes are recorded into the current gain/losses as financial assets(debt instruments) measured at fair value and whose changes are recorded into other comprehensive income:
－ the business model is aimed at both the collection of contractual cash flows and the sales of the financialassets;－ contractual cash flows represent only payments of principal and interest based on the outstanding principal
amount.
For non-trading equity instrument investment, the Company determines whether it is designated as a financialasset (equity instrument) measured at fair value and whose changes are included in other comprehensive incomeat the initial recognition. The designation is made on a single investment basis and the related investment meet thedefinition of an equity instrument from an issuer’s perspective.
Except for the above-mentioned financial assets measured at amortized cost and at fair value with changesincluded in other comprehensive income, the Company classifies all other financial assets as financial assetsmeasured at fair value and with changes included in current profits and losses. At the time of initial recognition, ifaccounting mismatches can be eliminated or significantly reduced, the Company can irrevocably designate thefinancial assets that should be classified as financial assets measured at amortized cost or measured at fair valueand whose changes are included in other comprehensive income as the financial assets measured at fair value andwhose changes are included in the current profit and loss.
In the initial recognition, financial liabilities are classified as the financial liabilities measured at fair value andwhose changes are included in current profit and loss and the financial liabilities measured at amortized cost.
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 and loss in the initial measurement:
1) The designation can eliminate or significantly reduce accounting mismatches.
2) According to the enterprise risk management or investment strategy specified in the official written document,manage and make performance evaluation of the financial liability portfolio or financial assets and financialliability portfolio based on fair value, and report to the key management personnel based on this.
3) The financial liability includes embedded derivatives that need to be separately split.
1.2 Recognition and measurement for financial instrument
(1) Financial assets measured at amortized cost
Financial assets measured at amortized cost include notes receivable, accounts receivable, other receivables, long-term receivables, and debt investment, which are initially measured at fair value, and related transaction costs areincluded in the initial recognition amount. The accounts receivable not including major financing components andthe accounts receivable that the Company decides not to consider the financing component of not more than oneyear are initially measured at the contract transaction price.
Interest calculated by the effective interest method during the holding period is included in the current profit andloss.
When recovering or disposing, the difference between the price obtained and the book value of the financial asset
is included in the current profit and loss.
(2) Financial assets (debt instruments) measured at fair value and whose changes are included in othercomprehensive incomeFinancial assets (debt instruments) measured at fair value and whose changes are included in other comprehensiveincome, including receivables financing, other debt investment, etc., are initially measured at fair value, andrelated transaction expenses are included in the initial recognition amount. The financial assets are subsequentlymeasured at fair value, the changes in fair value are included in other comprehensive income except for interest,impairment losses or gains and exchange gains and losses calculated by using the effective interest method.
When a financial asset is terminated for recognition, the accumulated gain or loss previously included in othercomprehensive income is transferred from other comprehensive income and included in current profit and loss.
(3) Financial assets (equity instruments) measured at fair value and whose changes are included in othercomprehensive incomeFinancial assets (equity instruments) measured at fair value and whose changes are included in othercomprehensive income, including other equity instruments, etc., are initially measured at fair value, and relatedtransaction expenses are included in the initially recognized amount. The financial assets are subsequentlymeasured at fair value, and changes in fair value are included in other comprehensive income. The dividendsobtained are included in the current profits and losses.
When a financial asset is terminated for recognition, the accumulated gain or loss previously included in othercomprehensive income is transferred from other comprehensive income and included in retained earnings.
(4) Financial assets measured at fair value and whose changes are included in current profit and lossFinancial assets measured at fair value and whose changes are included in current profit and loss, includingTradable financial assets, derivative financial assets and other non-current financial assets, etc., are initiallymeasured at fair value, and related transaction expenses are included in the initial recognition amount. Thefinancial assets are subsequently measured at fair value, and changes in fair value are recognized in current profitand loss.
(5) Financial liabilities measured at fair value and whose changes are included in current profit and lossFinancial liabilities measured at fair value and whose changes are included in current profit and loss, includingtransaction financial liabilities, derivative financial liabilities, etc., are initially measured at fair value, and relatedtransaction expenses are included in current profit and loss. The financial liabilities are subsequently measured atfair value, and changes in fair value are included in current profit and loss.
When a financial liability is terminate for recognition, the difference between book value and the consideration
paid shall be recorded into the current profit and loss.
(6) Financial liabilities measured at amortized cost
Financial liabilities measured at amortized cost, including short-term borrowings, bills payable, accounts payable,other payable, long-term borrowings, bonds payable, and long-term payable, are initially measured at fair value,and related transaction expenses are included in the initial recognition amount.
Interest calculated by the effective interest method during the holding period is included in the current profit andloss.
When a financial liability is terminate for recognition, the difference between the consideration paid and the bookvalue of the financial liability is included in current profit and loss.
1.3 Termination of recognition and transfer of financial assets
If one of the following conditions is satisfied, the Company shall terminate the recognition of financial assets:
－ the contractual rights to receive cash flows from financial assets terminates;－ the financial asset has been transferred and virtually all the risks and rewards of the ownership of the financialasset have been transferred to the transferee;－ the financial assets have been transferred. Although the company has neither transferred nor retained nearly allthe risks and rewards of ownership of the financial assets, it has not retained control of the financial assets
When transfer of financial assets occurs, if substantially all the risks and rewards of ownership of the financialasset are retained, the recognition of the financial asset shall not be terminated.
When judging whether or not the aforesaid terminal recognition condition for financial assets is arrived at fortransfer of financial assets, the Company generally adopts the principle that substance over weighs format.
The Company divides such transfer into entire transfer and part transfer. As for the entire transfer meetingcondition for discontinued recognition, balance between the following two items is recorded in current gains andlosses:
1) Carrying value of financial assets in transfer;
2) Aggregate of the consideration received from transfer and accumulative movements of fair value originallyrecorded in owners’ equity directly (applicable for the financial assets (debt instrument) measured at fair valueand whose changes are recorded into other comprehensive income)
As for the part transfer meeting condition for discontinued recognition, entire carrying value of financial assets intransfer is shared by discontinued recognition part and continued recognition part, in light of their respective fairvalue. Balance between the following two items is recorded in current gains and losses:
1)Carrying value of discontinued recognition part;
2) Aggregate of the consideration of discontinued recognition part and amount of such part attributable toaccumulative movements of fair value originally recorded in owners’ equity directly (applicable when financialassets involved in transfer belong to financial assets (debt instrument) measured at fair value and whose changesare included in other comprehensive income).
Financial assets are still subject to recognition if transfer of such assets doesn’t satisfy the condition fordiscontinued recognition. And consideration received is recognized as financial liability.
1.4 Terminating the recognition of financial liability
As for the financial liabilities with its whole or part present obligations released, the company shall terminate therecognition for such financial liabilities or part of it. if the company enters into agreement with its creditor tosubstitute for the existing financial liabilities by means of assuming new financial liabilities, then the companyshall terminate the recognition for the existing financial liabilities and recognized the new financial liabilitiesprovided that the contract clauses of the new and the existing financial liabilities are different in substance.
If the company makes substantial amendment to the whole or part contract clauses of the existing financialliabilities, it shall terminate the recognition for the existing financial liabilities or part of it. Meanwhile, thefinancial liabilities with amendment to its clauses shall be realized as new financial liabilities.
In case of terminate the recognition of financial liabilities in whole or part, the difference between the carryingvalue of such financial liabilities and consideration paid (including the non-cash assets exchanged or newfinancial liabilities assumed) shall be recorded in current gains and losses.
In case that the company repurchases part of financial liabilities, based on the comparative fair value of thecontinuing recognition part and the derecognizing part, the company shall allocate the carrying value of thefinancial liabilities in whole on the repurchase date. Difference between the carrying value allocated to thederecognizing part and the consideration paid (including the non-cash assets exchanged or new financial liabilitiesassumed) shall be recorded in current gains and losses.
1.5 Recognition method for fair value of financial assets and financial liabilities
As for the financial instrument with an active market, the fair value is determined by the offer of the active market;there is no active market for a financial instrument, the valuation techniques to determine its fair value. At thetime of valuation, the Company adopted applicable in the present case and there is enough available data andother information technology to support valuation, assets or liabilities of feature selection and market participants
in the trading of the underlying asset or liability considered consistent input value and priority as the relevantobservable inputs. Where relevant observable inputs can not get or do not get as far as practicable, the use of un-observable inputs.
1.6 Testing of the financial assets impairment and accounting treatment
The Company estimates the expected credit losses of financial assets measured at amortized cost, financial assets(debt instruments) measured at fair value and whose changes are included in other comprehensive income, andfinancial guarantee contracts in a single or combined way.
The Company considers reasonable and well-founded information about past events, current conditions, andforecasts of future economic conditions, and uses the risk of default as the weight to calculate the probability-weighted amount of the present value of the difference between the cash flow receivable from the contract and thecash flow expected to be received to confirm the expected credit loss.
If the credit risk of the financial instrument has increased significantly since the initial recognition, the Companymeasures its loss provision based on the amount equivalent to the expected credit losses for the entire duration ofthe financial instrument; if the credit risk of the financial instrument has not increased significantly since theinitial recognition, the Company measures its loss provision based on the amount equivalent to the expected creditlosses of the financial instrument in the next 12 months. The increase or reversal amount of the resulting lossprovision is included in the current profit and loss as an impairment loss or gain.
The Company compares the risk of default on the balance sheet date of financial instruments with the risk ofdefault on the date of initial recognition to determine the relative change in the risk of default during the expectedlife of the financial instrument so as to assess whether the credit risk of the financial instrument has increasedsignificantly since the initial recognition. Usually, if it s overdue for more than 30 days, the Company shallbelieve that the credit risk of the financial instrument has increased significantly, unless there is conclusiveevidence that the credit risk of the financial instrument has not increased significantly since the initial recognition.
If the financial instrument's credit risk at the balance sheet date is low, the Company shall believe that the creditrisk of the financial instrument has not increased significantly since the initial recognition.
If there is objective evidence that a financial asset has suffered credit impairment, the Company shall makeprovision for impairment of the financial asset on a single basis.
Regarding the accounts receivable and contract assets formed from transactions regulated by the "AccountingStandards for Business Enterprises No. 14-Revenue" (2017), regardless of whether it contains a significantfinancing component, the Company always measure its loss reserves at the amount equivalent to the expectedcredit loss during the entire duration.
For lease receivables, the Company always chooses to measure its loss reserves at an amount equivalent toexpected credit losses during the entire duration.
If the Company no longer reasonably expects whether the contractual cash flow of a financial asset can berecovered in whole or in part, it will directly write down the book balance of the financial asset.
11. Note receivable
12. Account receivable
13. Receivable financing
14. Other account receivable
Determining method and accounting treatment on the expected credit loss of other account receivable
15. Inventory
1.1 Classification and costs of inventory
Inventory includes raw materials, revolving material, goods in process, goods in transit and work in process-outsourced and so on.
Inventory is initially measured at cost, which includes the costs of purchase, processing costs and otherexpenditures incurred in bringing the inventories to their present location and condition.
1.2 Valuation methods for delivery of inventory
The weighted average or individual valuation method is used when the inventory is issued according to the natureof the business.
1.3 Recognition standards of the net realizable value for inventory
On the balance sheet date, inventories shall be measured at the lower of cost and net realizable value. When thecost of inventories is higher than its net realizable value, make provisions for inventory write-down. The netrealizable value refers to the amount of the estimated selling price of the inventory minus the estimated cost,estimated selling expenses and related taxes and fees at the time of completion in daily activities.
The net realizable value of inventory products and materials for sale, in normal business production, ismeasured as the residual value after deducting the estimated sales expense and related taxes and fees fromthe estimated selling price; the net realizable value of an item of inventories subject to further processing,in normal business production, is measured as the residual value after deducting the sum of the estimated
costs of completion, sales expense and related taxes and fees from the estimated selling price of the for-sale item. The net realizable value of the quantity of inventories held to satisfy firm sales or servicecontracts is based on the contract price. If the sales contracts are for less than the inventory quantities held,the net realizable value of the excess is based on general selling prices.
After making provisions for inventory write-down, if the factors that previously affected the write-down of theinventory value have disappeared, causing the net realizable value of the inventory to be higher than its bookvalue, it shall be reversed within the amount of the inventory write-down that has been withdrawn, and thereversed amount is included in the current profit and loss.
1.4 Inventory system
Inventory system is the perpetual inventory system.
1.5 Amortization of low-value consumables and packaging materials
(1) Low-value consumables adopts the method of primary resale;
(2) Wrappage adopts the method of primary resale.
16. Contract asset
1.1Methods and criteria for recognition of a contract asset
The Company lists contract assets or contract liabilities in the balance sheet based on the relationship betweenperformance obligations and customer payments. The Company lists the right (and the right depends on otherfactors other than the passage of time) to receive consideration for the transfer of goods or services to customersas contract assets. Contract assets and contract liabilities under the same contract are presented in net amount. TheCompany's unconditional (only depending on the passage of time) right to collect consideration from customersare separately listed as receivables.
1.2Determination method and accounting treatment method of expected credit loss of contract assetsFound more in the (10).6 Testing of the financial assets impairment and accounting treatment carried underNote V
17. Contract cost
18. Assets held for sale
19. Creditors’ investment
20. Other creditors’ investment
21. Long-term account receivable
22. Long-term equity investment
1.1Criteria for judgment of the common control and significant influence
Common control refers to the control that is common to an arrangement in accordance with the relevantagreement, and the relevant activities of the arrangement must be agreed upon by the participants sharing thecontrol rights before making a decision. Where the Company and other joint venture parties jointly control theinvested entity and have rights to the net assets of the invested entity, the invested entity is the joint venture of theCompany.
Significant influence refers to the right to participate in making decisions relating to the financial and operationalpolicies of an enterprise, while not able to control or jointly control (with others) establishment of these policies.If the Company has significant influence on the invested enterprises, than such invested enterprises shall be thejoint venture of the Company.
1.2Determination of initial investment cost
(1) Long-term equity investment formed by business combination
For a long-term equity investment in a subsidiary formed by a business combination under the same control, theinitial investment cost of the long-term equity investment is based on the share of the book value of the owner’sequity of the combined party obtained in the consolidated financial statements of the ultimate controlling party onthe combining date. The difference between the initial investment cost of long-term equity investment and thebook value of the consideration paid shall be used to adjust the equity premium in the capital reserve; when theequity premium in the capital reserve is insufficient to offset, adjust the retained earnings. If it is possible toexercise control over an investee under the same control due to additional investment, etc., adjust the equitypremium based on the difference between the initial investment cost of the long-term equity investment confirmedin accordance with the above principles and the book value of the long-term equity investment before thecombination plus the sum of the book value of the new valuable consideration for the shares obtained on thecombining date, if the equity premium is not enough to offset, offset the retained earnings.
For long-term equity investment in a subsidiaries formed by business combination not under the same control, theinitial investment cost is based on the cost of the combination determined at the date of purchase. If it is possible
to exercise control over an investee not under the same control due to additional investment, the sum of bookvalue of the equity investment originally held plus the cost of the additional investment is used as the initialinvestment cost.
(2) Long-term equity investment required by means other than business combination
For long-term equity investments obtained through payment with cash, then the actual payment shall be viewed asinitial investment cost.
For long-term equity investments obtained through issuance of equity securities, then the fair value of suchsecurities shall be viewed as initial investment cost
1.3Subsequent measurement and recognition of gains and losses
(1) Long-term equity investment measured by cost
The long-term equity investment for subsidiary shall be measured by cost, unless the investment qualities as heldfor sale. Other than payment actually paid for obtaining investment or cash dividend or profit included inconsideration which has been declared while not granted yet, the Company recognizes investment incomeaccording to its share in the cash dividend or profit declared for grant by the invested unit.
(2) Long-term equity investment measured by equity
The Company calculates long term equity investment in associates and joint ventures under equity method. Wherethe initial investment cost of a long-term equity investment exceeds the Group’s share of the fair value of theinvestee’s identifiable net assets at the time of acquisition, no adjustment is made to the initial investment cost.Where the initial investment cost is less than the Group’s share of the fair value of the investee’s identifiable netassets at the time of acquisition, the difference is recognized in profit or loss for the period. And adjusted the costsof long-term equity investment at the same time.
Return on investments and other comprehensive income is recognized respectively by shares of net gains andlosses realized by the invested company and other comprehensive income, and book value of such investment isadjusted accordingly. Profit or cash dividends pro rata distributed by the invested company are to minus bookvalue of the relative long-term investment. Book value of long-term investment is adjusted when changes occurother than net gains and losses, other comprehensive income and profit distribution of the invested company(abbreviated as other changes of owners’ equity), and is to report in owners’ equity accordingly.
When confirming the share of the net profit and loss, other comprehensive income and other owner’s equitychanges that should be enjoyed by the investee, adjust the net profit and other comprehensive income of theinvestee based on the fair value of the investee’s identifiable net assets at the time when the investment is obtainedand in accordance with the company’s accounting policies and accounting period before confirmation.
The un-realized transaction gains/losses attributable to investment enterprise, internally occurred between theCompany, affiliated units and joint-ventures should calculated by proportion of shares-holding which should beoffset, than recognized investment gains/losses(except where the assets invested or sold constitute a business). Ifthe unrealized internal transaction losses with the investee are assets impairment losses, they will be fullyrecognized.
In addition to assuming obligations for additional losses, the company’s net losses to joint ventures or associatesare limited to the book value of long-term equity investments and other long-term equity that actually constitutesnet investment in joint ventures or associates write down to zero. If a joint venture or an associated enterpriserealizes net profits in the future, the company resumes recognizing its share of profits after the share of profitsmakes up for the share of unrecognized losses.
(3) Disposal of long-term equity investment
Difference between carrying value and actual acquisition price in respect of disposal of long term equityinvestment shall be included in current period gains and losses.
Long-term equity investment accounted for by equity methodFor long-term equity investments accounted for by partial disposition equity method, the remaining equity is stillaccounted for by the equity method, the other comprehensive income recognized by the original equity methodshall be carried forward in a corresponding proportion on the same basis as the direct disposal of related assets orliabilities by the investee, other changes in owner's equity are carried forward to the current profit and loss on apro rata basis.
If the joint control or significant influence on the investee is lost due to the disposal of equity investment, for theother comprehensive income recognized by the original equity investment due to the adoption of the equitymethod, use the same basis as the investee to directly dispose of related assets or liabilities for accountingtreatment when terminating the adoption of the equity method, the same basis as the direct disposal of relatedassets or liabilities by the investee is used for accounting treatment, all other changes in owner's equity aretransferred to the current profit and loss when terminating the adoption of the equity method.
If the control of the investee is lost due to the disposal of part of the equity investment, and the remaining equitycan exercise joint control or exert significant influence on the investee when preparing individual financialstatements, the equity method shall be used for accounting and the remaining equity shall be deemed to beaccounted for by the equity method for adjustment since the acquisition, and the other comprehensive incomerecognized before obtaining the control of the investee is carried forward on the same basis as the direct disposalof related assets or liabilities by the investee in proportion, changes in other owners’ equity confirmed by theequity method are carried forward to the current profit and loss on a pro rata basis; if the remaining equity cannot
exercise joint control or exert significant influence on the investee, it shall be recognized as a financial asset, andthe difference between its fair value and book value on the day when the control is lost is included in the currentprofit and loss, and all other comprehensive income and other owner's equity changes recognized before obtainingthe control of the investee are carried forward.
If the equity investment in a subsidiary is disposed of through multiple transactions until it loses control, and it isa package transaction, each transaction shall be accounted for as a transaction that disposes of the equityinvestment of the subsidiary and loses control. The difference between the cost of each disposal before the loss ofcontrol and the book value of the long-term equity investment corresponding to the equity being disposed of isfirst recognized as other comprehensive income in individual financial statements, and then transferred to thecurrent profit and loss of the loss of control when the control is lost. If it is not a package transaction, eachtransaction shall be accounted for separately.
23. Investment real estate
MeasurementMeasured by costDepreciation or amortization methodInvestment real estate is defined as the real estate with the purpose to earn rent or capital appreciation or both,including the rented land use rights and the land use rights which are held and prepared for transfer afterappreciation, the rented buildings (including the buildings for rent after completion of self-construction ordevelopment activities and the buildings under construction or development for future lease).
Subsequent expenditures related to investment real estate are included in the cost of investment real estate when itis probable that the related economic benefits will flow and the cost can be measured; otherwise, charged tocurrent gain/loss as incurred.
Current investment real estate of the Company are measured by cost. As for the investment real estate-rentalbuilding measured by cost, the depreciation policy is same as the fixed assets of the Company, the land use rightfor rental has the same amortization policy as intangible assets.
24. Fix assets
(1) Recognition
Fixed assets is defined as the tangible assets which are held for the purpose of producing goods, providingservices, lease or for operation & management, and have more than one year of service life. Fixed assets should berecognized for qualified the followed conditions at the same time:
① It is probable that the economic benefits associated with the assets will flow into the Company;
② The cost of the assets can be measured reliably.
Fixed assets are initially measured at cost (and considering the impact of expected abandonment cost factors).
Subsequent expenditures related to fixed assets are included in the cost of fixed assets when the related economicbenefits are likely to flow in and their costs can be reliably measured; the book value of the replaced part isderecognized; all other subsequent expenditures are included in the current profit and loss when incurred.
(2)Depreciation methods
| Category | Method | Years of depreciation | Scrap value rate | Yearly depreciation rate |
| House and buildings | ||||
| Production buildings | Straight-line depreciation | 20-35 | 5.00 | 2.71-4.75 |
| Non-production buildings | Straight-line depreciation | 20-40 | 5.00 | 2.38-4.75 |
| Temporary dormitory and simple room etc. | Straight-line depreciation | 5-15 | 5.00 | 6.33-19.00 |
| Gas storage bin | Straight-line depreciation | 20 | 5.00 | 4.75 |
| Silo | Straight-line depreciation | 50 | 5.00 | 1.90 |
| Wharf and supporting facilities | Straight-line depreciation | 50 | 5.00 | 1.90 |
| Machinery equipment | ||||
| Other machinery equipment | Straight-line depreciation | 10-20 | 5.00 | 4.75-9.50 |
| Warehouse transmission equipment | Straight-line depreciation | 20 | 5.00 | 4.75 |
| Transport equipment | Straight-line depreciation | 3-10 | 5.00 | 9.50-31.67 |
| Electronic equipment and others | Straight-line depreciation | 2-10 | 5.00 | 9.50-47.50 |
Estimated the net salvage rate to determine the depreciation rate. For fixed assets with provision for impairment, the amount ofdepreciation shall be determined in future periods according to the book value after deducting the provision for impairment and basedon the usable life. If each component of the fixed assets has different service lives or provides economic benefits to the enterprise indifferent ways, select different depreciation rates or depreciation methods, and the depreciation is accrued separately.
(3) Recognition, measurement and depreciation of fixed assets held under finance lease
25. Construction in process
Construction in process is measured at the actual cost incurred. The actual cost includes construction cost,installation cost, borrowing costs that meet the capitalization conditions, and other necessary expendituresincurred before the construction in progress reaches its intended usable state. When the construction in processreaches the intended usable state, it will be transferred to fixed assets and depreciation will be accrued from the
next month.
26. Borrowing expenses
1.1 Recognition of the borrowing expenses capitalization
Borrowing expenses that attributed for purchasing or construction of assets that are complying start to becapitalized and counted as relevant assets cost; other borrowing expenses, reckoned into current gains andlosses after expenses recognized while occurred.
Assets satisfying the conditions of capitalization are those assets of fixed, investment real estate etc. which need along period of time to purchase, construct, or manufacturing before becoming usable.
1.2 Period of capitalization
Capitalizing period was from the time star capitalizing until the time of suspended capitalization. Theperiod for borrowing expenses suspended excluded in the period.
Capitalizing for borrowing expenses by satisfying the followed at same time:
(1) Assets expense occurred, and paid as expenses in way of cash, non-cash assets transfer or debt withinterest taken for purchasing, constructing or manufacturing assets that complying with capitalizingcondition;
(2) Borrowing expenses have occurred;
(3) Necessary activities occurred for reaching predicted usable statues or sale-able status for assetspurchased, constructed or manufactured.
If purchasing, construction, or manufacturing process of an asset satisfying the conditions of capitalizationreached its predicted usable status or sale-able status, capitalization suspended for borrowing expenses.
1.3 Period of suspended
If purchasing, construction, or manufacturing process of an asset satisfying the conditions of capitalization issuspended abnormally for over 3 months, capitalizing of borrowing expenses shall be suspended; the suspendedassets that satisfying the conditions of capitalization meets the necessary procedure of reaching predicted usablestatus or for-sale status, capitalizing of borrowing expenses shall be resumed. The borrowing expenses occurredduring the period of suspended shall reckon into current gains and losses until the purchasing, construction, ormanufacturing process is resumed for capitalizing.
1.4 Capitalization rate of the borrowing costs, measurement of the capitalized amountAs for the special loans borrowed for the purchase, construction or production of assets eligible for capitalization,the borrowing costs are capitalized by deducting the actual borrowing costs incurred in current period of special
borrowing, the interest income earned by borrowing funds that have not ye been used, deposited in the bank or theinvestment income obtained from the temporary investment.
For the general borrowings used for the acquisition, construction or production of assets eligible for capitalization,the amount of borrowing costs that should be capitalized for general borrowings is calculated and determinedaccording to the weighted average of the asset expenditures of accumulated asset expenditures over the specialborrowings multiplying by the capitalization rate of the occupied general borrowings. The capitalization rate isdetermined based on the weighted average interest rate of general borrowings.
During the capitalization period, the exchange difference of the principal and interest of the specialized foreigncurrency borrowing is capitalized and included in the cost of the assets that meet the capitalization conditions.Exchange differences arising from the principal and interest of foreign currency borrowings other than specializedforeign currency borrowing are included in the current profits and losses.
27. Biological assets
(1) The Company's biological assets are productive biological assets, which are classified into productivebiological assets, consumptive biological assets and biological assets for commonweal according to the purpose ofholding and the way in which economic benefits are realized.
(2) Biological assets are initially measured at cost.
(3) The necessary expenditures incurred by productive biological assets before reaching the intended productionand operation purposes constitute the cost of the productive biological assets. Subsequent expenditures incurredafter achieving the intended production purposes shall be included in the current profit and loss.
(4) The necessary expenditures for consumptive biological assets before closure constitute the cost ofconsumptive biological assets, and subsequent expenditures incurred after closure are included in the currentprofit and loss. The consumptive biological assets are carried at cost when harvested using the proportionalmethod of accumulation.
(5) The Company’s biological assets are mainly tea trees. The company’s productive biological assets that achievethe intended production and operation purposes are depreciated according to the average service life method, andthe service life is determined as the remaining period of land use after deducting the immature tea tree period (5years), the residual value rate is 5%. At the end of each year, the company reviews the service life, expected netresidual value and depreciation methods. If the service life and expected net output value are different from theoriginal estimate, or there is a significant change in the realization of economic benefits, it will be used as anaccounting estimate change to adjust the service life or estimated net output value or change the depreciationmethod.
(6)Biological assets for commonweal refer to biological assets whose main purpose is protection andenvironmental protection, including wind-breaking and sand-fixing forests, soil and water conservation forests,and water conservation forests.
The cost of self-constructed biological assets for commonweal shall be determined in accordance with thenecessary expenditures such as cost of planting, tending fees, forest protection fees, forest culture andmanagement facility fees, improved seed experiment fees, survey design fees, and indirect costs that should beapportioned before the closure, including borrowing costs that meet the conditions for capitalization.
Biological assets for commonweal are subsequently measured at cost. There is no need to withdraw the assetimpairment reserve for biological assets for commonweal.
(7)The balance of the disposal consideration from the sale, inventory loss, death or damage of biological assetsafter deducting the book value and relevant taxes shall be included in the current profit and loss.
28. Oil and gas assets
29. Right-of-use assets
30. Intangible assets
(1) Measurement, use of life and impairment testing
1.1 Measurement
(1)Initial measurement is made at cost when the Company acquires intangible assets;For those intangible assets purchased from outside, the purchase value, relevant taxes and other paymentsattributable to predicted purpose obtained should recognized as cost for this assets.
(2)Subsequent measurement
Analyzing and judging the service life of an intangible asset when they are acquired.Those intangible assets with limited useful life are evenly amortized on straight basis from the date when theybecome usable to the end of expected useful life;Intangible assets for which it is impossible to predict the termduring which the assets can bring in economic benefits are viewed as intangible assets with indefinite lifewithout amortization.
1.2 Estimation of the service life of intangible assets with limited service life
| Item | Predicted useful life | Amortization method | Basis |
| Land use right | Amortized the actual rest of life after certificate of land use right obtained | Straight-line method | Certificate of land use right |
| Forest tree use | Service life arranged | Straight-line | Protocol agreement |
| Item | Predicted useful life | Amortization method | Basis |
| right | method | ||
| Trademark use right | 10-year | Straight-line method | Actual situation of the Company |
| Shop management right | Service life arranged | Straight-line method | Protocol agreement |
| Software use right | 5-8 years | Straight-line method | Protocol agreement |
| Patents and others | 20-year | Straight-line method | Actual situation of the Company |
1.3 Judgment basis on intangible assets with uncertain service life and review procedures for the service lifeIntangible assets for which it is impossible to predict the term during which the assets can bring in economicbenefits are viewed as intangible assets with indefinite life. Intangible assets with indefinite life are notamortized during the holding period, and useful life is re-reviewed at the end of each accounting period. Incase that it is still determined as indefinite after such re-review, then impairment test will be conductedcontinuously in every accounting period.
(2)Accounting policy of the internal R&D expenditure
31. Impairment of long term assets
The long-term assets as long-term equity investments, investment real estate measured at cost, fixed assets,construction in progress, right-of-use assets, intangible assets with certain service life and oil & gas assets aretested for impairment if there is any indication that an asset may be impaired at the balance date. If the result ofthe impairment test indicates that the recoverable amount of the asset is less than its carrying amount, a provisionfor impairment and an impairment loss are recognized for the amount by which the asset’s carrying amountexceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell andthe present value of the future cash flows expected to be derived from the asset. Provision for asset impairment isdetermined and recognized on the individual asset basis. If it is not possible to estimate the recoverable amount ofan individual asset, the recoverable amount of a group of assets to which the asset belongs is determined. A groupof assets is the smallest group of assets that is able to generate independent cash inflows.
For goodwill formed by business combination, intangible assets with uncertain service life, and intangible assetsthat have not yet reached the usable state, regardless of whether there are signs of impairment, impairment testshall be carried out at least at the end of each year.
When the Company conducts the goodwill impairment test, the book value of goodwill formed by businesscombination is apportioned to the relevant asset group according to reasonable methods from the date of purchase;if it is difficult to apportion it to the relevant asset group, apportion it to the relevant asset group portfolio.Relevant asset group or assets portfolio is the asset group or combination of assets group that can benefit from thesynergies of the enterprise merger.
When conducting impairment test for relevant asset group with inclusion of goodwill, in case that there isindication of impairment for such asset group, impairment test would be firstly conducted in respect of the assetgroups without inclusion of goodwill. Then, it shall calculate the recoverable amount and determine thecorresponding impairment loss as compared to its carrying value. Then conduct an impairment test on the assetgroup or asset group portfolios containing goodwill, and compare their book value with the recoverable amount. Ifthe recoverable amount is lower than the book value, the amount of impairment loss first deducts the book valueof the goodwill allocated to the asset group or asset group portfolio, and then deducts the book value of the otherassets in proportion according to the proportion of the book value of the other assets other than goodwill in theasset group or asset group portfolio.
Once recognized, asset impairment loss would not be reversed in future accounting period.
32. Long term prepaid expense
Long term prepaid expense represents the expense which the Company has occurred and shall be amortized in thecurrent and later periods with amortization period exceeding one year. Long-term prepaid expenses of theCompany includes expenditures on improvement of investment real estate, decoration fee and expenditure forfixed assets improvement etc. Long term prepaid expense is amortized during the beneficial period under straightline method.
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 obligation to transfer goods or provide servicesto customers for consideration received or receivable from customers is listed as contract liabilities. Contractassets and contract liabilities under the same contract are presented in net amount.
34. Staff remuneration
(1)Accounting treatment of short term remuneration
In the period of employee services, short-term benefits are actually recognized as liabilities and charged to profitor loss or relevant assets costs.
Regarding to the social insurance and housing funds that the Company paid for employees, the Company shouldrecognize corresponding employees benefits payable according to the appropriation basis and proportion asstipulated by relevant requirements and recognize the corresponding liabilities.
The employee welfare expenses incurred shall be recorded into the current gain/loss or the cost of relevant assetsaccording to the actual amount when actually incurred, and the non-monetary welfare shall be measured at fair
value.
(2)Accounting treatment for post employment benefits
Defined contribution planThe Company pays basic endowment insurance and unemployment insurance for employees according to therelevant regulations of the local government. In the accounting period in which employees provide services for theCompany, the amount to be paid is calculated according to the local payment base and proportion, and isrecognized as a liability and included in current profit and loss or related asset cost. In addition, the Company alsoparticipates in the enterprise annuity plan/supplementary pension insurance fund approved by the relevant statedepartments. The Company pays a certain percentage of the total wages of employees to the annuity plan/localsocial insurance agency, and the corresponding expenditures are included in the current profit and loss or the costof related asset.
Defined benefit planThe Company assigns the benefit obligation arising from the defined benefit plan to the period during which theemployee provides service according to the formula determined by the expected accumulated benefit unit method,and includes it in the current profit and loss or related asset cost.
The deficit or surplus formed by the present value of the defined benefit plan obligation minus the fair value of thedefined benefit plan asset is recognized as a net benefit or net asset of the defined benefit plan. If there is a surplusin the defined benefit plan, the Company measures the net assets of the defined benefit plan by the lower of thesurplus and the asset limit of the defined benefit plan.
All defined benefit plan obligations, including obligations expected to be paid within twelve months of the end ofthe annual reporting period in which the employee provides services, are discounted based on the market return ofthe national debt matching with the defined benefit plan obligations deadline and currency or the high qualitycorporation bonds in an active market on the balance sheet date.
The service cost generated by the defined benefit plan and the net liabilities or the net interest of the net assets ofthe defined benefit plan are included in the current profit and loss or the related assets cost; the changes generatedby the remeasurement of net liabilities or net assets of the defined benefit plan are included in othercomprehensive income, and will not be transferred back to profit or loss in the subsequent accounting period,when the original defined benefit plan is terminated, the part that was originally included in other comprehensiveincome will be carried forward to undistributed profit within the scope of equity.
When settling the defined benefit plan, the settlement gain or loss is confirmed by the difference between thepresent value of the defined benefit plan obligation and the settlement price determined on the settlement date.
(3)Accounting treatment for dismissal benefit
If the Company provides dismissal benefits to employees, the employee compensation liabilities arising fromdismissal benefits shall be recognized on the earlier date of the following two, and shall be included in the currentprofit and loss: When the company cannot unilaterally withdraw the dismissal benefits provided by the dismissalplan or downsizing proposal; When the company confirms the costs or expenses related to the reorganizationinvolving the payment of dismissal benefits.
(4)Accounting treatment for other long term staff benefits
35. Lease liability
36. Accrual liability
The Company will recognize the obligations related to contingencies as expected liabilities when they meet thefollowing conditions:
(1)The responsibility is a current responsibility undertaken by the Company;
(2)Fulfilling of the responsibility may lead to financial benefit outflow;
(3)The responsibility can be measured reliably for its value.
Accrual liabilities shall conduct initial measurement by best estimation of expenditures needed by fulfillment ofcurrent responsibilities.
While determined the best estimation, take the risks, uncertainty and periodic value of currency that connected tothe contingent issues into consideration. For major influence from periodic value of currency, determined bestestimation after discount on future relevant cash out-flow.
Where there is a continuous range of required expenditures, and the probability of occurrence of various resultswithin this range is the same, the best estimate is determined according to the median value in the range; in othercases, the best estimate shall be treated as follows:
? If a contingency involves a single item, it shall be determined according to the amount most likely to occur.? If a contingency involves multiple items, it shall be determined in accordance with various possible outcomesand related probability calculation.
If all or part of the expenditure required to pay off the estimated liabilities is expected to be compensated by athird party, the compensation amount shall be separately recognized as an asset when it is basically certain that itcan be received, and the recognized compensation amount shall not exceed the book value of the estimatedliability.
The Company reviews the book value of estimated liabilities on the balance sheet date. If there is conclusiveevidence that the book value does not reflect the current best estimate, the book value will be adjusted accordingto the current best estimate.
37.Share-based payment
38. Other financial instrument of preferred stocks and perpetual bond
39. Revenue
Accounting policy used for revenue recognition and measurement
1.1 Accounting policy used for revenue recognition and measurement
The Company fulfills the performance obligations in the contract, that is, revenue is recognized when thecustomer obtains control of the relevant goods or services. Obtaining control of related goods or services meansbeing able to lead the use of the goods or services and obtain almost all of the economic benefits from them.
If the contract contains two or more performance obligations, the Company will allocate the transaction price toeach individual performance obligation in accordance with the relative proportion of the stand-alone selling priceof the goods or services promised by each individual performance obligation on the starting date of the contract.The Company measures revenue based on the transaction price allocated to each individual performanceobligation.
The transaction price refers to the amount of consideration that the Company expects to be entitled to receive dueto the transfer of goods or services to customers, excluding payments collected on behalf of third parties andpayments expected to be returned to customers. The Company determines the transaction price in accordance withthe terms of the contract and combined with its past customary practices, when determining the transaction price,it considers the influence of variable consideration, major financing components in the contract, non-cashconsideration, consideration payable to customers and other factors. The Company determines the transactionprice that includes variable consideration at an amount that does not exceed the amount of accumulatedrecognized revenue that is unlikely to be materially reversed when the relevant uncertainty is eliminated. If thereis a significant financing component in the contract, the Company determines the transaction price based on theamount payable in cash when the customer obtains control of the goods or services, and uses the actual interestmethod to amortize the difference between the transaction price and the contract consideration during the contractperiod. (Tips: for the interval between the transfer of control and the payment of the price by the customer doesnot exceed one year, the enterprise may disregard the financing component thereof. Enterprise should makedisclosure according to the actual situation )
It belongs to the performance obligation fulfilled within a certain period of time when meeting one of thefollowing conditions, otherwise it belongs to the performance obligation fulfilled at a certain point in time:
?The customer obtains and consumes the economic benefits brought by the Company's performance at the same
time as the Company's performance.?Customers can control the products under construction in the Company's performance process.?The products produced by the Company during the performance of the contract have irreplaceable uses, and theCompany has the right to collect payment for the accumulated performance part of the contract during the entirecontract period.
For performance obligations performed within a certain period of time, the Company recognizes revenueaccording to the performance progress during that period, except where the performance progress cannot bereasonably determined. The Company considers the nature of the goods or services and adopts the output methodor the input method to determine the progress of performance. When the performance progress cannot bereasonably determined, and the costs incurred are expected to be compensated, the Company shall recognize therevenue according to the amount of the costs incurred until the performance progress can be reasonablydetermined.
For performance obligations performed at a certain point in time, the Company recognizes revenue at the pointwhen the customer obtains control of the relevant goods or services. When judging whether a customer hasobtained control of goods or services, the Company considers the following signs:
?The Company has the current right to collect payment for the goods or services, that is, the customer has thecurrent payment obligation for the goods or services.?The Company has transferred the legal ownership of the goods to the customer, that is, the customer has the legalownership of the goods.?The Company has transferred the goods to the customer in kind, that is, the customer has taken possession of thegoods in kind.?The Company has transferred the main risks and rewards of the ownership of the goods to the customer, that is,the customer has obtained the main risks and rewards of the ownership of the goods.?The customer has accepted the goods or services, etc.
1.2 Specific principle
(1) Revenue from sales of goods: the sales revenue is recognized after the goods sold domestically have beendelivered and the relevant terms agreed in the contract are met; for export sales, the realization of sales revenue isconfirmed after the goods have been dispatched and declared in compliance with the relevant terms as agreed inthe contract. For export sales, the sales revenue is recognized after the goods have been sent and declared and therelevant terms agreed in the contract are met.
(2) Revenue from provision of labor services: For the dynamic reserve of grain and oil and its rotation servicesprovided by the Company to the Shenzhen Municipal Government, the revenue is recognized when relevant laborservices occur, the revenue from grain and oil reserve services is calculated and confirmed monthly based on theactual amount of grain and oil reserves and the reserve price stipulated in the "Shenzhen Municipal Government
Grain Reserve Expenses Contract Operation Regulations" and the "Shenzhen Municipal Government EdibleVegetable Oil Government Reserve Expenses Contract Operation Regulations".
(3) Other income:
1)-The amount of royalty revenue is calculated and determined in accordance with the charging time and methodagreed in the relevant contract or agreement;
2)- Income from real estate, terminal warehouse and other property leasing and terminal docking business iscalculated and recognized as the property rental income, warehousing and logistics income.
Differences in accounting policies for revenue recognition due to the different operating models for the same types of business
40. Government subsidy
1.1 Types
Governments subsidy of the Company refer to the monetary and non-monetary assets obtained from governmentfor free, and are divided into those related to assets and others related to revenues.
Government subsidy related to assets refer to those obtained by the Company and used for purchase orconstruction of or otherwise to form long-term assets. Government subsidies related to revenue refer to those otherthan government subsidies related to assets.
Specific criteria for classifying the government subsidy as asset-related by the Company are: government subsidyacquired for the acquisition and construction or other formation of long-term assets
Specific criteria for classifying the government subsidy as income-related by the Company are: governmentsubsidy obtained by the Company other than those related to assets.
1.2 Recognition time point
At end of the period, if there is evidence show that the Company qualified relevant condition of fiscal supportingpolices and such supporting funds are predicted to obtained, than recognized the amount receivable as governmentsubsidy. After that, government subsidy shall recognize while actually received.
Government subsidy in the form of monetary assets are stated at the amount received or receivable.Government subsidy in the form of non-monetary assets are measured at fair value; if fair value cannot beobtained, a nominal amount (one yuan) is used. Government subsidy measured at nominal amount isrecognized immediately in profit or loss for the current period.
1.3 Accounting treatment
Based on the nature of economic business, the Company determines whether a certain type of government subsidybusiness should be accounted for by using the total amount method or the net amount method. In general, the
Company only chooses one method for similar or similar government subsidy services, and this method isconsistently applied to the business.
| Item | Calculation content |
| Based on gross method | All business of government subsidy |
Government subsidy related to assets is used to offset the book value of related assets or be recognized as deferredincome. If it is confirmed as deferred income, it shall be included in the current profit and loss in a reasonable andsystematic way by stages within the useful life of the relevant assets (those related to the Company’s dailyactivities are included in other income; those unrelated to the Company’s daily activities are included in the non-operating income);
Government subsidy related to income that is used to compensate the Company's related costs or losses insubsequent periods is recognized as deferred income, and is included in the current profit and loss during theperiod when the related costs or losses are recognized (those related to the Company’s daily activities are includedin other income; those unrelated to the Company’s daily activities are included in the non-operating income) orused to offset related costs or losses; those used to compensate the Company’s related costs, expenses or lossesare directly included in the current profit and loss (those related to the Company’s daily activities are included inother income; those unrelated to the Company’s daily activities are included in the non-operating income) or usedto offset related costs or losses.
The policy-related preferential loan interest discounts obtained by the Company shall be accounted for separatelyin the following two situations:
(1)The finance allocates interest discount funds to the lending bank. If the lending bank provides loans to theCompany at a policy-based preferential interest rate, the Company will use the actually received loan amount asthe entry value of the loan, and calculate related borrowing costs according to the loan principal and the policy-based preferential interest rate.
(2) If the finance directly allocates interest discount funds to the Company, the Company will write down therelevant borrowing costs with the corresponding interest discount.
41. Deferred income tax assets and deferred income tax liabilities
Income tax includes current income tax and deferred income tax. Except for income tax arising from businessmergers and transactions or events that are directly included in owner's equity (including other comprehensiveincome), the Company include current income tax and deferred income tax in current profit and loss.
Deferred income tax assets and deferred income tax liabilities are calculated and recognized based on thedifference (temporary difference) between the tax base of assets and liabilities and their book value.
Deductible temporary differences recognized by deferred income tax assets is limited to the taxable income that islikely to be obtained in the future to deduct deductible temporary differences. For the deductible losses and taxdeductions that can be carried forward for subsequent years are limited to the future taxable income that is likelyto be obtained to deduct deductible and tax deductions.
For taxable temporary differences, except for special circumstances, deferred income tax liabilities are recognized.Special circumstances that do not recognize deferred income tax assets or deferred income tax liabilities include:
? Initial recognition of goodwill;? Transactions or events that neither are a business combination nor affect accounting profits and taxable income(or deductible losses) when occur.
For taxable temporary differences related to investments in subsidiaries, associates and joint ventures, deferredincome tax liabilities are recognized, unless the Company can control the timing of the reversal of the temporarydifferences and the temporary differences are not likely to be reversed in the foreseeable future. For deductibletemporary differences related to investments in subsidiaries, associates and joint ventures, when the temporarydifferences are likely to be reversed in the foreseeable future and are likely to be used to deduct the taxableincome of deductible temporary differences in the future, recognize deferred income tax assets.
On the balance sheet date, deferred income tax assets and deferred income tax liabilities are measured at theapplicable tax rate during the period when the relevant assets are expected to be recovered or the relevantliabilities are expected to be paid off in accordance with the provisions of the tax law.
On the balance sheet date, the Company reviews the book value of deferred income tax assets. If it is probable thatsufficient taxable income cannot be obtained in the future to offset the benefits of deferred income tax assets, thebook value of the deferred income tax assets shall be written down. When it is possible to obtain sufficient taxableincome, the write-down amount shall be reversed.
When there is a statutory right to settle on a net basis, and an intention to settle on a net basis or acquire assets andpay off liabilities at the same time, the current income tax assets and current income tax liabilities are presented atthe net amount after offsetting.
On the balance sheet date, deferred income tax assets and deferred income tax liabilities shall be listed as the netamount after offset when the following conditions are met at the same time:
? The tax subject has the statutory right to settle current income tax assets and current income tax liabilities on anet basis;?Income tax assets and deferred income tax liabilities are related to the income tax levied by the same taxadministration department on the same taxation subject or related to different taxation subjects, however, in theperiod during which each important deferred income tax asset and liability are reversed in the future, the taxpayer
involved intends to settle the current income tax assets and liabilities on a net basis or obtain assets and settleliabilities at the same time.
42. Lease
(1)Accounting treatment for operating lease
1.Right-of-use assets
On the commencement date of the lease term, the Company recognizes the right-of-use assets for leases other thanshort-term leases and low-value asset leases. The right-of-use assets shall be initially measured at cost. The costincludes:
? The initial measurement amount of lease liabilities;?Where the lease payments paid on or before the commencement date of the lease term have a lease incentive, theamount of the lease incentive already enjoyed shall be deducted;
?Initial direct costs incurred by the Company;?Costs expected to be incurred by the Company to dismantle and remove the leased assets, restore the sites wherethe leased assets locate or restore the leased assets to the state agreed upon in the lease terms, excluding costsincurred for the production of inventory.
The Company shall subsequently use the straight-line method to calculate the depreciation of the right-of-useassets. Where ownership of the leased asset can be reasonably determined at the end of the lease term, theCompany shall calculate the depreciation during the remaining useful life of the leased asset; Otherwise, thedepreciation of the leased asset is calculated during the period which is shorter between the lease term and theremaining useful life of the leased asset.
The Company determines whether the right-of-use asset impairment has occurred in accordance with theprinciples described in the Notes III- "(20). Impairment of Long-term Assets", and makes accounting treatment forthe identified impairment loss.
2.Lease liability
On the commencement date of the lease term, the Company recognizes the lease liabilities for leases other thanshort-term leases and low-value asset leases. Lease liabilities are initially measured at the present value ofoutstanding lease payments. The lease payments include:
?Where there is a lease incentive in the fixed payments (including the substantive fixed payments), deduct thelease incentive;
?Variable lease payments depending on the index or ratio;?The payments estimated to be paid according to the guaranteed residual value provided by the company;?The executive price of the call option provided that the company reasonably determines that the option will be
exercised;
?The payments payable to exercise the termination of lease option provided that the lease term reflects that thecompany shall exercise the termination of lease option.
The Company uses the interest rate implicit in lease as the discount rate, but if the interest rate implicit in leasecannot be reasonably determined, the Company's incremental borrowing rate shall be used as the discount rate.
The Company calculates the interest expense of the lease liability in each period of the lease term at a fixedperiodic rate and records it into the current profits and losses or the cost of underlying asset.
The variable lease payments not included in the measurement of lease liabilities are booked into the profits andlosses of the current period or the cost of related assets when actually incurred.After the commencement date of the lease term, if any of the following circumstances occurs, the Company shallre-measure the lease liabilities and adjust the corresponding right-of-use assets. If the book value of the right-of-use assets has been reduced to zero, but the lease liabilities still need to be further reduced, the difference shall berecorded into the profits and losses of the current period.
?If the evaluation results of the call option, the lease renewal option or the termination option changes, or the
actual exercise of the said option is inconsistent with the original evaluation results, the Company shall remeasurethe lease liability at the present value calculated by the changed lease payment and the revised discount rate;
?In the event of a change in the substantive fixed payment, a change in the amount expected to be payable for theguaranteed residual value, or a change in the index or ratio used to determine the lease payment, the Companyshall remeasure the lease liability according to the present value calculated by the changed lease payment and theoriginal discount rate. However, where changes in lease payments result from changes in floating interest rates,the present value is calculated by using the revised discount rate.
(3) Short-term leases and low-value asset leases
The Company chooses not to recognize the right-of-use assets and lease liabilities for short-term leases and low-value asset leases, and records the relevant lease payments into the current profits and losses or related asset costsin accordance with the straight-line method for each period of the lease term. A short-term lease is a lease notexceeding 12 months and excluding the call option on the commencement date of the lease term. The low-valueasset lease refers to a lease with a lower value when a single leased asset is a new asset. Where the companysubleases or expects to sublease the leased asset, the original lease is not a low-value asset lease.
4. Lease change
If the lease changes and meets the following conditions at the same time, the Company will treat the lease changeas a separate lease for accounting treatment:
?The lease change expands the lease scope by increasing one or more right of use of the leased assets;?The increased consideration and the separate price for the extension portion of the lease shall be equivalent to theamount adjusted according to the contract.
If the lease change is not regarded as a separate lease for accounting treatment, the company shall, on the effectivedate of the lease change, reapportion the consideration of the contract after the change, redetermine the lease term,and remeasure the lease liabilities according to the present value calculated by the changed lease payments and therevised discount rate.
If the lease change results in the narrowing of the lease scope or the shortening of the lease term, the Companyshall adjust the book value of the right-of-use assets accordingly, and record the profits or losses related to partialor complete termination of lease into the profits and losses of the current period. The Company shall adjust thebook value of the right-of-use assets accordingly if the lease liabilities are remeasured due to other lease changes.
5. Rent concessions related to COVID-19
Where the simplified method of rent concessions related to COVID-19 is adopted, the Company shall notassess whether there is a lease change, and shall continue to calculate the interest expense of the lease liability atthe same discount rate as before the concessions and include it in the current profit and loss, and continue to makean depreciation for right-of-use assets in the same way as before the concession. In the event of rent reduction orexemption, the Company shall treat the reduced rent as the variable lease payment amount, and offset the relatedasset cost or expenses by using the discounted amount at the undiscounted rate or the discounted rate before theconcession when the original rent payment obligation is relieved by reaching a concession agreement, and adjustthe lease liabilities accordingly; where the rent payment is delayed, the Company shall offset the lease liabilitiesrecognized in the previous period when the actual payment is made.For short-term leases and low-value asset leases, the Company shall continue to include the original contract rentin the related asset cost or expenses in the same way as before the concession. In the event of rent reduction orexemption, the Company shall treat the reduced rent as the variable lease payment, and offset the relevant assetcost or expenses during the reduction and exemption period; where the rent payment is delayed, the Companyshall recognize the rent payable as a payable during the original payment period, and offset the payablerecognized in the previous period when the actual payment is made.
(2)Accounting treatment for financing lease
43. Other important accounting policy and estimation
44. Changes of important accounting policy and estimation
(1)Changes of important accounting policies
□ Applicable √ Not applicable
(2) Changes of important accounting estimate
□ Applicable √ Not applicable
45. Other
N/AVI. Taxes
1. Type of tax and rate for main applicable tax
| Taxes | Basis | Rate |
| VAT | The output tax is calculated on the basis of the sales of goods and the taxable service income calculated according to the tax law. After deducting the input tax amount that is allowed to be deducted in the current period, the difference part is the value-added tax payable. | 13.00%, 9.00%, 6.00%, 5.00%, 3.00% |
| Urban maintenance and construction tax | Calculated according to the actual value-added tax and consumption tax | 7.00%, 5.00% |
| Enterprise income tax | Calculated according to taxable income | 25.00%, 20.00%, 15.00% |
| Educational surtax | Calculated according to the actual value-added tax and consumption tax | 3.00% |
| Local education surcharge | Calculated according to the actual value-added tax and consumption tax | 2.00% |
| Property tax | Price-based resource tax, 1.2 percent of the remaining value after deducting 20% of the original value of the property; 12 percent of the rental income if levy by rents. | 1.20%, 12.00% |
| Deed tax | When the property right of the real property is transferred, the contract price | 3.00%-5.00% |
shall be paid to the owner of the propertyright in one lump sum
Rate of income tax for different taxpaying body:
| Taxpaying body | Rate of income tax |
| Shenzhen Cereals Holdings Co., Ltd. | 25.00% |
| Shenzhen Cereals Group Co., Ltd (hereinafter referred to as "SZCG") | 25.00%, Some businesses are tax-free |
| Shenzhen Hualian Grain and Oil Trading Co., Ltd. (hereinafter referred to as "Hualian Cereals and Oil") | 25.00% |
| Dongguan Hualian Grain & Oil Trade Co., Ltd. (hereinafter referred to as "Dongguan Hualian ") | 25.00% |
| Shenzhen Shenliang Hongjun Catering Management Co., Ltd. (hereinafter referred to as "Shenliang Hongjun ") | 25.00% |
| Shenzhen Flour Co., Ltd(hereinafter referred to as “Shenzhen Flour”) | Tax-free |
| Shenliang Quality Inspection Co., Ltd.(hereinafter referred to as"Quality Inspection") | 25.00% |
| Hainan Shenliang Oil & Food Co., Ltd. (hereinafter referred to as"Hainan Oil & Food") | 20.00% |
| Shenzhen Shenliang Doximi Business Co., Ltd. (hereinafter referred to as"Doximi ") | 25.00% |
| Shenzhen Shenliang Big Kitchen Food Supply Chain Co., Ltd(hereinafter referred to as"Big Kitchen") | 25.00% |
| Shenzhen Shenliang Storage (Yingkou) Co., Ltd(hereinafter referred to as"Yingkou Storage") | 25.00% |
| Shenzhen Shenliang Cold Chain Logistics Co., Ltd.(hereinafter referred to as"Cold Chain Logistics") | 15.00% |
| Shenzhen Shenliang Property Development Co., Ltd. (hereinafter referred to as"Shenliang Property") | 25.00% |
| Shenzhen Shenliang Property Management Co., Ltd. (hereinafter referred to as"Shenliang Property") | 20.00% |
| Dongguan Shenliang Logistics Co., Ltd.(hereinafter referred to as Dongguan Logistics) | 25.00% |
| Dongguan International Food Industrial Park Development Co., Ltd.(hereinafter referred to as"International Food") | 25.00% |
| Dongguan Shenliang Oil & Food Trade Co., Ltd.(hereinafter referred to as"Dongguan Oil & Food") | 25.00% |
| Shuangyashan Shenliang Cereals Base Co., Ltd. (hereinafter referred to as"Shuangyashan ") | 25.00% |
| Shenzhen Shenbao Huacheng Technology Co., Ltd. (hereinafter referred to as Shenbao Huacheng ) | 15.00% |
| Wuyuan County Jufangyong Tea Co., Ltd.(hereinafter referred to as Wuyuan Jufangyong) | 15.00% |
| Shenzhen Shenshenbao Investment Co., Ltd(hereinafter referred to as"Shenbao Investment ") | 25.00% |
| Shenzhen Shenshenbao Tea Culture Commercial Management Co., Ltd.(hereinafter referred to as"Shenbao Tea Culture") | 25.00% |
| Hangzhou Ju Fang Yong Holding Co., Ltd(hereinafter referred to as"Ju Fang Yong Holding") | 25.00% |
| Hangzhou Ju Fang Yong Trading Co., Ltd. (hereinafter referred to as"Ju Fang Yong Trading ") | 25.00% |
| Hangzhou Fuhaitang Catering Management Chain Co., Ltd. (hereinafter referred to as"Fuhaitang Catering") | 25.00% |
| Hangzhou Fuhaitang Tea Ecological Technology Co., Ltd.(hereinafter referred to as"Fuhaitang Ecological") | 25.00% |
| Mount Wuyi Shenbao Rock Tea Co., Ltd.(hereinafter referred to as"Shenbao Rock Tea") | 25.00% |
| Yunnan Shenbao Pu’er Tea Supply Chain Management Co., Ltd.(hereinafter referred to as"Pu’er Tea Supply Chain") | 25.00% |
| Shenzhen Shenliang Food Co., Ltd.(hereinafter referred to as“Shenzhen Shenliang Food ”) | 25.00% |
| Yunnan Pu’er Tea Trading Center Co., Ltd.(hereinafter referred to as"Pu’er Tea Trading Center") | 25.00% |
| Huizhou Shenliang Food Co., Ltd.(hereinafter referred to as Shenliang Food ) | 25.00% |
| Huizhou Shenbao Technology Co., Ltd.(hereinafter referred to as"Huizhou Shenbao ") | 25.00% |
| Zhenping Market Operation Tech. Co., Ltd.(hereinafter referred to as"Zhenping Market ") | 25.00% |
| Shenzhen Shenbao Industrial & Trading Co., Ltd(hereinafter referred to as"Shenbao Industrial & Trading") | 25.00% |
| Wuhan Jiacheng Biotechnology Co., Ltd.(hereinafter referred to as Wuhan Jiacheng) | 15.00% |
| Hubei Jiacheng Biotechnology Co., Ltd. .(hereinafter referred to as Hubei Jiacheng) | 25.00% |
| Wuhan Hongqu Health Biology Co., Ltd(hereinafter referred to as“Wuhan Hongqu”) | 25.00% |
| Macheng Jintian Camellia Oil Co., Ltd.(hereinafter referred to as“Macheng Jintian”) | 25.00% |
| Shenliang Hongli Grain & Oil (Shenzhen) Co., Ltd.(hereinafter referred to as“Hongli Grain & Oil”) | 25.00% |
2. Tax preferential
1. VAT preference and approval
According to the “Notice of the Ministry of Finance and the State Administration of Taxation on the Issues
Concerning the VAT Collection and Exemption of Grain Enterprises (CSZ [1999] No. 198)” and “Shenzhen TaxService, State Taxation Administration and Shenzhen Finance Bureau SGSF (SCF [1999] No.428)”, confirmingthat SZCG, the Company’s subsidiary, and its subsidiaries, are state-owned grain purchase and sale enterprisesthat undertake grain collection and storage tasks for Shenzhen, the grain sold is subject to tax-free declaration byrule and enjoys the exemption from VAT. In addition, according to the stipulation of the “Announcement of StateAdministration of Taxation on Relevant Management Matters After Clarifying the Cancellation of the Approvalof Some VAT Preferential Policies” (SAT Announcement 2015 No. 38), the approval for exemption from VATand the involved tax review and approval procedures for the state-owned grain enterprises that undertake graincollection and storage tasks, other grain enterprises that operate tax-free projects and enterprises that have ediblevegetable oil sales business for government reserves are cancelled and changed to record management. Thetaxpayer does not change the content of the record materials during the period of tax exemption can be put on aone-time record. In December 2013, SZCG obtained the notice of the VAT preferential record (SGSFJBM [2013]No.2956) from Shenzhen Futian State Administration of Taxation. In the case of no change in policy, this limitedfiling period started on January 1
st
, 2014.The VAT input tax amount of the preferential item was separatelyaccounted for, and the input VAT calculation method cannot be changed within 36 months after the selection. Asof June 30, 2022, the tax exemption policy has been in effect since its filing in 2014, and the company’s VATinput tax has not changed since it was accounted for separately in 2014, so the company continues to enjoy the taxpreference.
2. Stamp duty, house property tax, and urban land use tax preferences
According to the stipulations of “Notice of the Ministry of Finance and the State Administration of Taxation onthe Relevant Tax Policies Concerning Some National Reserved Commodities (CS [2019] No. 77)”, anddocuments of Guangdong Province Department of Finance, Guangdong Provincial Taxation Bureau of the StateAdministration of Taxation and Guangdong Provincial Food and Material Reserve Bureau (Yue Cai Shui[2020]No.2, confirming that the fund account book of SZCG, the Company’s subsidiary, and its direct depots isexempt from stamp duty, confirming that the written purchase and sale contracts of SZCG in the process ofundertaking the commodity reserve business are exempt from stamp duty, and confirming that SZCG’s houseproperty and land used for the commodity reserve business are exempt from house property tax and urban landuse tax. The execution time limit for this tax preference policy is up to June 30, 2022.
3. Enterprise income tax
(1) On May 27, 2021, the general administration of Taxation, Ministry of Finance issued the Notice on theExtension of Preferential Policies of Enterprise Income Tax of Qianhai Shenzhen-Hong Kong Modern ServiceIndustry Cooperation Zone in Shenzhen, the enterprise income tax of qualified enterprises located in QianhaiShenzhen-Hong Kong Modern Service Industry Cooperation Zone is levied at the rate of 15.00%, and the Noticeto be implemented from January 1, 2021 to December 31, 2025. The Company's subsidiary cold chain logistics isregistered in Shenzhen Qianhai Cooperation Zone, which is eligible for preferential tax conditions. According torelevant policies of the cooperation zone, its income tax will enjoy a preferential tax of 15.00%
(2) On December 23, 2021, Shenbao Huacheng, a subsidiary of the Company, obtained the High-tech EnterpriseCertificate (Certificate No.: GR202144205394) jointly issued by the Shenzhen Science and Technology Bureau,the Shenzhen Finance Bureau, and the Shenzhen Tax Service, State Taxation Administration, which is valid forthree years. According to the relevant preferential policies of the state for high-tech enterprises, the qualified high-tech enterprises will pay corporate income tax at a reduced income tax rate of 15.00% within three years from theyear of identification. Shenbao Huacheng will enjoy the preferential tax policy from 2021 to 2024.
(3) On November 3, 2021, Wuyuan Jufangyong, a subsidiary of the Company, obtained the High-tech EnterpriseCertificate (Certificate No.: GR202136000731) jointly issued by the Science and Technology Department ofJiangxi Province, the Finance Department of Jiangxi Province, and the Jiangxi Provincial Tax Service, StateTaxation Administration, which is valid for three years. According to the relevant preferential policies of the statefor high-tech enterprises, qualified high-tech enterprises will pay corporate income tax at a reduced income taxrate of 15.00% within three years from the year of identification. Wuyuan Jufangyong will enjoy the preferentialtax policy from 2021 to 2024.
(4) On November 15, 2019, Wuhan Jiacheng, a subsidiary of the Company, obtained the High-tech EnterpriseCertificate (Certificate No.: GR201942000977) jointly issued by the Department of Science and Technology ofHubei Province, the Hubei Provincial Department of Finance of Hubei Province, and the Hubei Provincial TaxService, State Taxation Administration, which is valid for three years. According to the relevant preferentialpolicies of the state for high-tech enterprises, qualified high-tech enterprises will pay corporate income tax at areduced income tax rate of 15.00% within three years from the year of identification. Wuhan Jiacheng enjoys thepreferential tax policy from 2019 to 2022.
(5) According to the Notice of the Ministry of Finance and the State Taxation Administration on the Treatment ofCorporate Income Tax Treatment of Fiscal Funds for Special Purposes (CS [2009] No. 87), the governmentalservice incomes obtained by SZCG, the Company’s subsidiary, and its subordinate companies by carrying outgovernment grain reserves business are fiscal funds for special purposes, those that meet the requirements can beregarded as non-taxable incomes and deducted from the total income when calculating the taxable income.Expenses arising from the use of the above non-taxable income for expenditure shall not be deducted from thecalculation of taxable income; for assets formed from expenditure, the calculated depreciation and amortizationshall not be deducted from the calculation of taxable income.
(6) Shenzhen Flour, a subsidiary of the Company, is a flour primary processing enterprise, according to thestipulations of the “Notice on Issuing the Scope (Trial) of Primary Processing of Agricultural Products Applicableto the Corporate Income Tax Preferential Policy (CS [2008] No. 149)” and the “Supplementary Notice on theScope of Primary Processing of Agricultural Products Applicable to the Corporate Income Tax Preferential Policyof the Ministry of Finance and the State Administration of Taxation” (CS [2011] No. 26), the wheat primary
processing is exempt from income tax.
(7) According to Article II of the "Notice of the State Taxation Administration and Ministry of Finance on theImplementation of Inclusive Tax Relief Policies for Small and Micro Enterprises" (CS[2029] No. 13), the portionof the annual taxable income of small, low-profit enterprises that does not exceed 1 million yuan will be includedin the taxable income by 25%, and the corporate income tax will be paid at a tax rate of 20%. The portion of theannual taxable income of small, low-profit enterprises exceeding 1 million yuan but not exceeding 3 million yuanwill be included in the taxable income by 50%, and the corporate income tax will be paid at a tax rate of 20%. OnMarch 31, 2021, the Ministry of Finance and the State Taxation Administration issued Announcement No. 12 of2021, for the part of the annual taxable income of small and low-profit enterprises not exceeding one million yuan,on the basis of the preferential policies stipulated in Article 2 of the Notice of the Ministry of Finance and theState Taxation Administration on Implementing Inclusive Tax Reduction and Exemption Policies for Small andMicro Enterprises (CS[2019] No. 13), the corporate income tax shall be halved; Hainan Cereals and Oils, andShenliang Property, as the Company’s subsidiaries, are small and low-profit enterprises, and are eligible for taxpreference.
3.Other
N/AVII. Annotation to main items of consolidated financial statements
1. Monetary funds
Unit: CNY/RMB
| Item | Ending balance | Opening balance |
| Cash on hand | 67,892.44 | 29,370.19 |
| Cash in bank | 70,821,643.50 | 49,173,812.84 |
| Other monetary fund | 1,571,145.88 | 1,206,740.62 |
| Total | 72,460,681.82 | 50,409,923.65 |
| The total amount of money that has restrictions on use due to mortgage, pledge or freezing | 1,000,000.00 | 1,039,843.45 |
Other explanation
2. Tradable financial assets
Unit: CNY/RMB
| Item | Ending balance | Opening balance |
| Financial assets measured by fair value and with variation reckoned into current gains/losses | 72,348,385.01 | 211,060,770.50 |
| Including: | ||
| Equity investment instrument | 1,142,988.73 | 921,099.27 |
| Structured financial products | 71,205,396.28 | 210,139,671.23 |
| Including: | ||
| Total | 72,348,385.01 | 211,060,770.50 |
Other explanation:
3. Derivative financial assets
Unit: CNY/RMB
| Item | Ending balance | Opening balance |
Other explanation
4. Note receivable
(1) Category
Unit: CNY/RMB
| Item | Ending balance | Opening balance |
| Bank acceptance bill | 97,750.00 | 687,242.00 |
| Total | 97,750.00 | 687,242.00 |
Unit: CNY/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: | ||||||||||
If the provision for bad debts of note receivable is made in accordance with the general model of expectedcredit losses, please refer to the disclosure of other account receivables to disclose related information aboutbad-debt provisions:
□ Applicable √Not applicable
(2) Bad debt provision accrual, collected or reversal in the period
Bad debt provision accrual in the period:
Unit: CNY/RMB
| Category | Opening balance | Amount changed in the period | Ending balance | |||
| Accrual | Collected or reversal | Written-off | Other | |||
Including major amount bad debt provision that collected or reversal in the period:
□ Applicable √Not applicable
(3) Note receivable that pledged at period-end
Unit: CNY/RMB
| Item | Amount pledged at period-end |
(4) Notes endorsement or discount and undue on balance sheet date
Unit: CNY/RMB
| Item | Amount derecognition at period-end | Amount not derecognition at period-end |
(5) Notes transfer to account receivable due for failure implementation by drawer at period-end
Unit: CNY/RMB
| Item | Amount transfer to account receivable at period-end |
Other explanation
(6) Note receivable actually written-off in the period
Unit: CNY/RMB
| Item | Amount written-off |
Including important note receivable that written-off:
Unit: CNY/RMB
| Enterprise | Nature | Amount written-off | Written-off causes | Procedure of written-off | Resulted by related transaction (Y/N) |
Explanation on note receivable written-off:
5. Account receivable
(1) Category
Unit: CNY/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 on a single basis | 93,902,781.96 | 34.65% | 92,734,278.08 | 98.76% | 1,168,503.88 | 95,231,065.86 | 25.05% | 92,862,561.98 | 97.51% | 2,368,503.88 |
| Including: | ||||||||||
| Account receivable with single significant amount and withdrawal | 10,455,627.54 | 3.86% | 10,455,627.54 | 100.00% | 10,455,627.54 | 2.75% | 10,455,627.54 | 100.00% | ||
| bad debt provision on single basis | ||||||||||
| Account receivable with single minor amount but with bad debts provision accrued on a single basis | 83,447,154.42 | 30.79% | 82,278,650.54 | 98.60% | 1,168,503.88 | 84,775,438.32 | 22.30% | 82,406,934.44 | 97.21% | 2,368,503.88 |
| Account receivable with bad debt provision accrual on portfolio | 177,129,809.30 | 65.35% | 4,151,715.41 | 2.34% | 172,978,093.89 | 284,943,025.46 | 74.95% | 4,264,187.72 | 1.50% | 280,678,837.74 |
| Including: | ||||||||||
| Aging portfolio | 136,002,586.24 | 50.18% | 4,151,715.41 | 3.05% | 131,850,870.83 | 143,007,108.06 | 37.62% | 4,264,187.72 | 2.98% | 138,742,920.34 |
| Other portfolio | 41,127,223.06 | 15.17% | 41,127,223.06 | 141,935,917.40 | 37.33% | 141,935,917.40 | ||||
| Total | 271,032,591.26 | 100.00% | 96,885,993.49 | 35.75% | 174,146,597.77 | 380,174,091.32 | 100.00% | 97,126,749.70 | 25.55% | 283,047,341.62 |
Bad debt provision accrual on single basis: 92,734,278.08 yuan
Unit: CNY/RMB
| Name | Ending balance | |||
| Book balance | Bad debt provision | Accrual ratio | Accrual causes | |
| Guangzhou Jinhe Feed Co., Ltd | 10,455,627.54 | 10,455,627.54 | 100.00% | Slightly possibly taken back |
| Shenzhen Faqun Industry Co., Ltd. | 4,582,156.00 | 4,582,156.00 | 100.00% | Slightly possibly taken back |
| Li Shaoyu | 2,929,128.53 | 2,929,128.53 | 100.00% | Slightly possibly taken back |
| Zhuhai Doumen Huabi Feed Co., Ltd. | 2,396,327.14 | 2,396,327.14 | 100.00% | Slightly possibly taken back |
| Chongqing Zhongxing Food Industry Co., Ltd. | 2,354,783.30 | 2,354,783.30 | 100.00% | Slightly possibly taken back |
| Hengyang Feed factory | 2,591,566.65 | 2,591,566.65 | 100.00% | Slightly possibly taken back |
| Sichuan Zhongxing Food Industry Co., Ltd. | 1,698,103.22 | 1,698,103.22 | 100.00% | Slightly possibly taken back |
| Shenzhen Buji Agricultural Products Wholesale Center Market Xingmin | 1,534,512.45 | 1,534,512.45 | 100.00% | Slightly possibly taken back |
| Commercial Bank | ||||
| Cao Shengyun | 1,429,745.00 | 1,429,745.00 | 100.00% | Slightly possibly taken back |
| Huaxing Feed Factory, Shunde District, Foshan City | 1,290,274.22 | 1,290,274.22 | 100.00% | Slightly possibly taken back |
| Shanghai office | 1,059,295.90 | 1,059,295.90 | 100.00% | Slightly possibly taken back |
| Shenzhen Dihuan Investment Development Company | 1,045,356.50 | 1,045,356.50 | 100.00% | Slightly possibly taken back |
| Other single provision | 60,535,905.51 | 59,367,401.63 | 98.07% | Slightly possibly taken back |
| Total | 93,902,781.96 | 92,734,278.08 |
Bad debt provision accrual on portfolio: 4,151,715.41 yuan
Unit: CNY/RMB
| Name | Ending balance | ||
| Book balance | Bad debt provision | Accrual ratio | |
| Combination of sales receivables | 136,002,586.24 | 4,151,715.41 | 3.05% |
| Specific object combinations | 41,127,223.06 | ||
| Total | 177,129,809.30 | 4,151,715.41 | |
Explanation on portfolio determines:
If the provision for bad debts of account receivable is made in accordance with the general model of expectedcredit losses, please refer to the disclosure of other account receivables to disclose related information aboutbad-debt provisions:
□ Applicable √Not applicable
By account age
Unit: CNY/RMB
| Account age | Ending balance |
| Within one year (including 1-year) | 162,544,194.77 |
| 1-2 years | 10,029,455.37 |
| 2-3 years | 3,296,082.19 |
| Over 3 years | 95,162,858.93 |
| 3-4 years | 1,651,225.64 |
| 4-5 years | 860,649.61 |
| Over 5 years | 92,650,983.68 |
| Total | 271,032,591.26 |
(2) Bad debt provision accrual, collected or reversal in the period
Bad debt provision accrual in the period:
Unit: CNY/RMB
| Category | Opening balance | Amount changed in the period | Ending balance | |||
| Accrual | Collected or reversal | Written-off | Other | |||
| Bad debt provision accrual on single basis | 92,862,561.98 | 128,283.90 | 92,734,278.08 | |||
| Sales Receivables Portfolio | 4,264,187.72 | 112,472.31 | 4,151,715.41 | |||
| Total | 97,126,749.70 | 240,756.21 | 96,885,993.49 | |||
Including major amount bad debt provision that collected or reversal in the period:
Unit: CNY/RMB
| Enterprise | Amount collected or reversal | Collection way |
(3) Account receivable actually written-off in the period
Unit: CNY/RMB
| Item | Amount written-off |
Including major account receivable written-off:
Unit: CNY/RMB
| Enterprise | Nature | Amount written-off | Written-off causes | Procedure of written-off | Resulted by related transaction (Y/N) |
Explanation on account receivable written-off:
(4) Top 5 account receivables at ending balance by arrears party
Unit: CNY/RMB
| Enterprise | Ending balance of accounts receivable | Proportion in total receivables at ending balance | Bad debt preparation ending balance |
| First | 33,802,000.02 | 12.47% | |
| Second | 10,455,627.54 | 3.86% | 10,455,627.54 |
| Third | 6,415,190.21 | 2.37% | |
| Fourth | 6,398,645.91 | 2.36% | |
| Fifth | 5,631,565.07 | 2.08% | 55,148.09 |
| Total | 62,703,028.75 | 23.14% |
(5) Assets and liabilities resulted by account receivable transfer and continues involvement
(6) Account receivable derecognition due to financial assets transfer
6. Account receivable financing
Unit: CNY/RMB
| Item | Ending balance | Opening balance |
Changes of account receivable financing and change of fair value in the period
□ Applicable √Not applicable
If the impairment provision of account receivable financing is made in accordance with the general model ofexpected credit losses, please refer to the disclosure of other account receivables to disclose related informationabout impairment provision:
□ Applicable √Not applicable
Other explanation
7. Accounts paid in advance
(1) By account age
Unit: CNY/RMB
| Account age | Ending balance | Opening balance | ||
| Amount | Ratio | Amount | Ratio | |
| Within one year | 93,526,177.70 | 98.87% | 115,518,972.22 | 99.68% |
| 1-2 years | 738,880.47 | 0.78% | 193,952.41 | 0.17% |
| 2-3 years | 164,558.11 | 0.18% | 46,662.00 | 0.04% |
| Over 3 years | 164,708.73 | 0.17% | 135,187.98 | 0.11% |
| Total | 94,594,325.01 | 115,894,774.61 | ||
Explanation on reasons of failure to settle on important account paid in advance with age over one year:
(2) Top 5 account paid in advance at ending balance by prepayment object
| Prepaid objects | Ending balance | Proportion in of total prepayment balance at the end of period (%) |
| First | 39,315,427.81 | 41.56 |
| Second | 33,101,014.04 | 34.99 |
| Three | 6,646,168.00 | 7.03 |
| Fourth | 5,610,000.00 | 5.93 |
| Fifth | 3,220,000.00 | 3.40 |
| Total | 87,892,609.85 | 92.91 |
Other explanation:
8. Other account receivable
Unit: CNY/RMB
| Item | Ending balance | Opening balance |
| Other account receivable | 46,469,468.38 | 32,377,838.35 |
| Total | 46,469,468.38 | 32,377,838.35 |
(1) Interest receivable
1) Category
Unit: CNY/RMB
| Item | Ending balance | Opening balance |
2) Significant overdue interest
Unit: CNY/RMB
| Borrower | Ending balance | Overdue time | Overdue causes | Whether impairment occurs and its judgment basis |
Other explanation
3) Accrual of bad debt provision
□ Applicable √Not applicable
(2) Dividend receivable
1) Category
Unit: CNY/RMB
| Item (or invested enterprise) | Ending balance | Opening balance |
2) Important dividend receivable with account age over one year
Unit: CNY/RMB
| Item (or invested enterprise) | Ending balance | Account age | Reasons for not collection | Whether impairment occurs and its judgment basis |
3) Accrual of bad debt provision
□ Applicable √Not applicable
Other explanation
(3) Other account receivable
1) By nature
Unit: CNY/RMB
| Nature | Ending book balance | Opening book balance |
| Margin and deposit | 15,821,639.26 | 12,323,696.08 |
| Other intercourse funds | 130,468,808.14 | 119,880,221.09 |
| Total | 146,290,447.40 | 132,203,917.17 |
2) Accrual of bad debt provision
Unit: CNY/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 Jan. 1, 2022 | 3,185,683.43 | 96,640,395.39 | 99,826,078.82 | |
| Balance of Jan. 1, 2022 in the period | ||||
| Current accrual | 128,700.20 | 128,700.20 | ||
| Current write-off | 133,800.00 | 133,800.00 | ||
| Balance on Jun. 30, 2022 | 3,314,383.63 | 96,506,595.39 | 99,820,979.02 |
Change of book balance of loss provision with amount has major changes in the period
□ Applicable √Not applicable
By account age
Unit: CNY/RMB
| Account age | Ending balance |
| Within one year (including 1-year) | 21,424,236.35 |
| 1-2 years | 18,927,585.87 |
| 2-3 years | 2,090,194.46 |
| Over 3 years | 103,848,430.72 |
| 3-4 years | 1,789,390.49 |
| 4-5 years | 1,788,178.30 |
| Over 5 years | 100,270,861.93 |
| Total | 146,290,447.40 |
3) Bad debt provision accrual, collected or reversal in the period
Bad debt provision accrual in the period:
Unit: CNY/RMB
| Category | Opening balance | Amount changed in the period | Ending balance | |||
| Accrual | Collected or reversal | Written off | Other | |||
| Bad debt provision accrual on single basis | 96,640,395.39 | 133,800.00 | 96,506,595.39 | |||
| Bad debt provision | 3,185,683.43 | 128,700.20 | 3,314,383.63 | |||
| accrual on portfolio | ||||||
| Total | 99,826,078.82 | 128,700.20 | 133,800.00 | 99,820,979.02 |
Including major amount with bad debt provision reverse or collected in the period:
Unit: CNY/RMB
| Enterprise | Amount reversal or collected | Collection way |
4) Other account receivable actually written-off in the period
Unit: CNY/RMB
| Item | Amount written-off |
Including important other account receivable written-off:
Unit: CNY/RMB
| Enterprise | Nature | Amount written-off | Written-off causes | Procedure of written-off | Resulted by related transaction (Y/N) |
Explanation on other account receivable written-off:
5) Top 5 other receivables at ending balance by arrears party
Unit: CNY/RMB
| Enterprise | Nature | Ending balance | Account age | Ratio in total ending balance of other account receivables | Bad debt preparation ending balance |
| First | Other intercourse funds | 24,608,742.46 | Within 1 year, over 5 years | 16.82% | 22,187,644.18 |
| Second | Other intercourse funds | 8,326,202.63 | Over 5 years | 5.69% | 8,326,202.63 |
| Three | Other intercourse funds | 8,285,803.57 | Over 5 years | 5.66% | 8,285,803.57 |
| Fourth | Other intercourse funds | 8,257,311.80 | Over 5 years | 5.64% | 8,257,311.80 |
| Fifth | Other intercourse funds | 6,397,067.59 | Over 5 years | 4.37% | 6,397,067.59 |
| Total | -- | 55,875,128.05 | -- | 38.18% | 53,454,029.77 |
6) Other account receivables related to Government subsidy
Unit: CNY/RMB
| Enterprise | Government subsidy | Ending balance | Ending account age | Time, amount and basis for collection predicted |
7) Other receivable for termination of confirmation due to the transfer of financial assets
8) The amount of assets and liabilities that are transferred other receivable and continued to be involvedOther explanation
9. Inventories
Whether companies need to comply with the disclosure requirements of the real estate industryNo
(1) Category
Unit: CNY/RMB
| Item | Ending balance | Opening balance | ||||
| Book balance | Inventories fall provision or contract performance costs impairment provision | Book value | Book balance | Inventories fall provision or contract performance costs impairment provision | Book value | |
| Raw materials | 75,917,421.01 | 14,841,005.00 | 61,076,416.01 | 71,483,882.02 | 14,841,005.00 | 56,642,877.02 |
| Goods in process | 18,235,651.96 | 18,235,651.96 | 23,932,099.23 | 23,932,099.23 | ||
| Inventory goods | 3,616,039,048.21 | 95,396,954.45 | 3,520,642,093.76 | 3,463,256,518.48 | 98,441,505.32 | 3,364,815,013.16 |
| Revolving material | 5,383,668.92 | 966,891.96 | 4,416,776.96 | 5,596,700.59 | 966,891.96 | 4,629,808.63 |
| Goods in transit | 10,341,793.61 | 10,341,793.61 | 5,362,274.64 | 5,362,274.64 | ||
| Low-value consumables-packaging | 3,619,880.75 | 3,619,880.75 | 4,367,402.92 | 4,367,402.92 | ||
| Consignment processing materials | 5,999,159.19 | 5,290,502.32 | 708,656.87 | 6,159,701.53 | 5,290,502.32 | 869,199.21 |
| Total | 3,735,536,623.65 | 116,495,353.73 | 3,619,041,269.92 | 3,580,158,579.41 | 119,539,904.60 | 3,460,618,674.81 |
(2) Inventories fall provision or contract performance costs impairment provision
Unit: CNY/RMB
| Item | Opening balance | Current amount increased | Current amount decreased | Ending balance | ||
| Accrual | Other | Reversal or | Other | |||
| write-off | ||||||
| Raw materials | 14,841,005.00 | 14,841,005.00 | ||||
| Inventory goods | 98,441,505.32 | 81,891,850.85 | 84,936,401.72 | 95,396,954.45 | ||
| Revolving material | 966,891.96 | 966,891.96 | ||||
| Consignment processing materials | 5,290,502.32 | 5,290,502.32 | ||||
| Total | 119,539,904.60 | 81,891,850.85 | 84,936,401.72 | 116,495,353.73 |
(3) Explanation on inventories with capitalization of borrowing costs included at ending balance
(4) Assets unsettled formed by construction contract which has completed at period-end
10. Contract assets
Unit: CNY/RMB
| Item | Ending balance | Opening balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
Amount and reasons for the major changes of book value of contract assets in the period:
Unit: CNY/RMB
| Item | Amount changed | Cause of change |
If the bad debt provision of accrual contract is made in accordance with the general model of expected credit losses, please refer tothe disclosure of other account receivables to disclose related information about bad debt provision:
□ Applicable √Not applicable
Impairment provision of contract assets in the period
Unit: CNY/RMB
| Item | Current accrual | Current reversal | Charge off/Written-off | Causes |
Other explanation
11. Assets held for sale
Unit: CNY/RMB
| Item | Ending book balance | Impairment provision | Ending book value | Fair value | Estimated disposal cost | Estimated disposal time |
Other explanation
12. Non-current asset due within one year
Unit: CNY/RMB
| Item | Ending balance | Opening balance |
Important creditors’ investment/ other creditors’ investment
Unit: CNY/RMB
| Item | Ending balance | Opening balance | ||||||
| Face value | Coupon rate | Actual rate | Maturity date | Face value | Coupon rate | Actual rate | Maturity date | |
Other explanation
13. Other current assets
Unit: CNY/RMB
| Item | Ending balance | Opening balance |
| Financial product | 10,000,000.00 | |
| Prepayment of taxes | 1,451,416.63 | 1,403,832.26 |
| Input tax to be deducted | 94,674,381.15 | 77,054,152.64 |
| Total | 96,125,797.78 | 88,457,984.90 |
Other explanation:
14. Creditors’ investment
Unit: CNY/RMB
| Item | Ending balance | Opening balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
Important creditors’ investment
Unit: CNY/RMB
| Item | Ending balance | Opening balance | ||||||
| Face value | Coupon rate | Actual rate | Maturity date | Face value | Coupon rate | Actual rate | Maturity date | |
Accrual of impairment provision
Unit: CNY/RMB
| Bad debt provision | Phase I | Phase II | Phase III | Total |
| Expected credit losses over next 12 months | Expected credit losses for the entire duration (without credit impairment occurred) | Expected credit losses for the entire duration (with credit impairment occurred) | ||
| Balance of Jan. 1, 2022 in the period |
Change of book balance of loss provision with amount has major changes in the period
□ Applicable √Not applicable
Other explanation
15. Other creditors’ investment
Unit: CNY/RMB
| Item | Opening balance | Accrual interest | Change of fair value in the period | Ending balance | Cost | Accumulated change of fair value | Loss impairment accumulated recognized in other comprehensive income | Note |
Important other creditors’ investment
Unit: CNY/RMB
| Other creditor item | Ending balance | Opening balance | ||||||
| Face value | Coupon rate | Actual rate | Maturity date | Face value | Coupon rate | Actual rate | Maturity date | |
Accrual of impairment provision
Unit: CNY/RMB
| Bad debt provision | Phase I | Phase II | Phase III | Total |
| Expected credit losses over next 12 months | Expected credit losses for the entire duration (without credit impairment occurred) | Expected credit losses for the entire duration (with credit impairment occurred) | ||
| Balance of Jan. 1, 2022 in the period |
Change of book balance of loss provision with amount has major changes in the period
□ Applicable √Not applicable
Other explanation
16. Long-term account receivable
(1) Long-term account receivable
Unit: CNY/RMB
| Item | Ending balance | Opening balance | Discount rate interval | ||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | ||
Impairment of bad debt provision
Unit: CNY/RMB
| Bad debt provision | Phase I | Phase II | Phase III | Total |
| Expected credit losses | Expected credit losses | Expected credit losses |
| over next 12 months | for the entire duration (without credit impairment occurred) | for the entire duration (with credit impairment occurred) | ||
| Balance of Jan. 1, 2022 in the period |
Change of book balance of loss provision with amount has major changes in the period
□ Applicable √Not applicable
(2) Long-term account receivable derecognition due to financial assets transfer
(3) Assets and liabilities resulted by long-term account receivable transfer and continues involvementOther explanation
17. Long-term equity investment
Unit: CNY/RMB
| The invested entity | Opening balance (book value) | Current changes (+, -) | 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 | |||||||||||
| II. Associated enterprise | |||||||||||
| Shenzhen Duoxi Equity Investment Fund Management Co., Ltd. | 2,782,691.30 | -316,755.31 | 2,465,935.99 | ||||||||
| Zhuhai Hengxing Feed Industrial Co., Ltd. | 31,534,652.77 | -219,338.14 | 31,315,314.63 | ||||||||
| Shenliang Intelligent Wulian Equity Investment Fund (Shenzhen) Partnership Enterprise (Limited) | 28,006,043.15 | -281,576.44 | 27,724,466.71 | ||||||||
| Shenzhen Shenyuan Data Tech. Co., Ltd | 11,167,056.27 | 282,589.90 | 11,449,646.17 | ||||||||
| Shenbao Liaoyuan Investment Company | 57,628.53 | ||||||||||
| Shenzhen Shenbao (Xinmin) Foods Co., Ltd.*1 | 2,870,000.00 | ||||||||||
| Subtotal | 73,490,443.49 | -535,079.99 | 72,955,363.50 | 2,927,628.53 |
| Total | 73,490,443.49 | -535,079.99 | 72,955,363.50 | 2,927,628.53 |
Other explanation
18. Other equity instrument investment
Unit: CNY/RMB
| Item | Ending balance | Opening balance |
Itemized the non-tradable equity instrument investment in the period
Unit: CNY/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
10. Other non-current financial assets
Unit: CNY/RMB
| Item | Ending balance | Opening balance |
| Debt instrument investment | 80,000,000.00 | |
| Equity instrument investment | 57,500.00 | 57,500.00 |
| Total | 80,057,500.00 | 57,500.00 |
Other explanation:
20. Investment real estate
(1) Measured at cost
√ Applicable □Not applicable
Unit: CNY/RMB
| Item | House and building | Land use right | Construction in progress | Total |
| I. Original book value | ||||
| 1.Opening balance | 583,090,328.15 | 583,090,328.15 | ||
| 2.Current amount increased |
| (1) Outsourcing | ||||
| (2) Inventory\fixed assets\construction in process transfer-in | ||||
| (3) Increased by combination | ||||
| 3.Current amount decreased | ||||
| (1) Disposal | ||||
| (2) Other transfer-out | ||||
| 4.Ending balance | 583,090,328.15 | 583,090,328.15 | ||
| II. Accumulated depreciation and accumulated amortization | ||||
| 1.Opening balance | 349,993,629.66 | 349,993,629.66 | ||
| 2.Current amount increased | 7,979,780.88 | 7,979,780.88 | ||
| (1) Accrual or amortization | 7,979,780.88 | 7,979,780.88 | ||
| 3.Current amount decreased | ||||
| (1) Disposal | ||||
| (2) Other transfer-out | ||||
| 4.Ending balance | 357,973,410.54 | 357,973,410.54 | ||
| III. Impairment provision | ||||
| 1.Opening balance | ||||
| 2.Current amount increased | ||||
| (1) Accrual | ||||
| 3. Current amount decreased | ||||
| (1) Disposal | ||||
| (2) Other transfer-out | ||||
| 4.Ending balance | ||||
| IV. Book value |
| 1.Ending book value | 225,116,917.61 | 225,116,917.61 | ||
| 2. Opening book value | 233,096,698.49 | 233,096,698.49 |
(2) Measure on fair value
□ Applicable √Not applicable
(3) Investment real estate without property certificate completed
Unit: CNY/RMB
| Item | Book value | Reasons |
Other explanation
21. Fixed assets
Unit: CNY/RMB
| Item | Ending balance | Opening balance |
| Fixed assets | 2,119,548,279.71 | 2,124,725,043.92 |
| Fixed assets disposal | 3,106,105.27 | 3,106,105.27 |
| Total | 2,122,654,384.98 | 2,127,831,149.19 |
(1) Fixed assets
Unit: CNY/RMB
| Item | House and buildings | Machinery equipment | Transport equipment | Electronic and other equipment | Total |
| I. Original book value: | |||||
| 1.Opening balance | 1,865,763,990.05 | 727,276,785.70 | 20,575,716.47 | 93,892,840.29 | 2,707,509,332.51 |
| 2.Current amount increased | 40,608,120.93 | 7,900.00 | 1,863,135.38 | 42,479,156.31 | |
| (1) Purchase | 24,420,089.59 | 7,900.00 | 1,863,135.38 | 26,291,124.97 | |
| (2) Construction in progress transfer-in | 16,188,031.34 | 16,188,031.34 | |||
| (3) Increased by combination | |||||
| 3.Current amount decreased | 2,247,336.74 | 2,673.97 | 142,513.94 | 2,392,524.65 | |
| (1) Disposal or scrap | 2,247,336.74 | 2,673.97 | 142,513.94 | 2,392,524.65 | |
| 4.Ending balance | 1,865,763,990.05 | 765,637,569.89 | 20,580,942.50 | 95,613,461.73 | 2,747,595,964.17 |
| II. Accumulated depreciation | |||||
| 1.Opening balance | 252,952,615.07 | 257,603,342.45 | 15,577,950.37 | 53,827,426.99 | 579,961,334.88 |
| 2.Current amount increased | 22,066,578.84 | 18,678,058.80 | 593,294.37 | 5,582,737.12 | 46,920,669.13 |
| (1) Accrual | 22,066,578.84 | 18,678,058.80 | 593,294.37 | 5,582,737.12 | 46,920,669.13 |
| 3.Current amount decreased | 1,516,698.65 | 1,613.47 | 138,961.14 | 1,657,273.26 | |
| (1) Disposal or scrap | 1,516,698.65 | 1,613.47 | 138,961.14 | 1,657,273.26 | |
| 4.Ending balance | 275,019,193.91 | 274,764,702.60 | 16,169,631.27 | 59,271,202.97 | 625,224,730.75 |
| III. Impairment provision | |||||
| 1.Opening balance | 2,813,063.84 | 9,889.87 | 2,822,953.71 | ||
| 2.Current amount increased | |||||
| (1) Accrual | |||||
| 3.Current amount decreased | |||||
| (1) Disposal or scrap | |||||
| 4.Ending balance | 2,813,063.84 | 9,889.87 | 2,822,953.71 | ||
| IV. Book value | |||||
| 1.Ending book value | 1,590,744,796.14 | 488,059,803.45 | 4,411,311.23 | 36,332,368.89 | 2,119,548,279.71 |
| 2. Opening book value | 1,612,811,374.98 | 466,860,379.41 | 4,997,766.10 | 40,055,523.43 | 2,124,725,043.92 |
(2) Temporarily idle fixed assets
Unit: CNY/RMB
| Item | Original book value | Accumulated depreciation | Impairment provision | Book value | Note |
(3) Fixed assets leased out by operation
Unit: CNY/RMB
| Item | Ending book value |
(4) Fix assets without property certification held
Unit: CNY/RMB
| Item | Book value | Reasons for without the property certification |
| House buildings | 594,712,049.26 | Still under processing |
| House buildings | 14,873,443.16 | At present, the relevant application and approval procedures are being started. |
Other explanation
(5) Fixed assets disposal
Unit: CNY/RMB
| Item | Ending balance | Opening balance |
| Disposal of fixed assets - machinery equipment | 3,106,105.27 | 3,106,105.27 |
| Total | 3,106,105.27 | 3,106,105.27 |
Other explanation
13. Construction in progress
Unit: CNY/RMB
| Item | Ending balance | Opening balance |
| Construction in progress | 198,788,393.17 | 207,946,539.97 |
| Total | 198,788,393.17 | 207,946,539.97 |
(1) Construction in progress
Unit: CNY/RMB
| Item | Ending balance | Opening balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Dongguan grain storage and wharf matching project | 147,012,469.99 | 147,012,469.99 | 138,980,117.20 | 138,980,117.20 | ||
| Jiangxia Base Project | 27,236,162.02 | 27,236,162.02 | 27,039,711.44 | 27,039,711.44 | ||
| Installation Project/Phase I Project (Shuangya Mountain) | 773,845.16 | 773,845.16 | 11,405,601.69 | 11,405,601.69 | ||
| Pinghu Grain Depot Phase III Low Temperature Rice Warehouse Expansion and Reconstruction Project-L2 | 8,584,169.91 | 8,584,169.91 | ||||
| Pinghu Grain Depot Phase III Low Temperature Rice Warehouse Expansion and Reconstruction Project-L4 | 7,637,139.21 | 7,637,139.21 | ||||
| Cold chain intelligent system | 3,645,282.94 | 3,645,282.94 | 3,645,282.94 | 3,645,282.94 | ||
| CDE storage of Dongguan Food Industrial Park and wharf mating projects | 2,476,401.46 | 2,476,401.46 | 1,953,288.69 | 1,953,288.69 | ||
| Far-reaching data technology smart logistics park management platform project | 2,777,600.00 | 2,777,600.00 | 1,587,200.00 | 1,587,200.00 | ||
| Warehouse No. 6 Smart Warehouse Renovation Project | 1,175,982.45 | 1,175,982.45 | 1,175,982.45 | 1,175,982.45 | ||
| Deep | 824,660.05 | 824,660.05 | 824,660.05 | 824,660.05 |
| processing of Dongguan Industry and Trading Food | ||||||
| Shenbao Plaza project | 3,842,333.64 | 3,842,333.64 | 3,842,333.64 | 3,842,333.64 | ||
| Small packing line | 2,369,122.03 | 2,369,122.03 | ||||
| Digital construction software development of Shenyuan Digital Phase V | 2,155,000.00 | 2,155,000.00 | ||||
| Other | 9,245,056.81 | 903,189.74 | 8,341,867.07 | 6,016,576.13 | 903,189.74 | 5,113,386.39 |
| Total | 203,533,916.55 | 4,745,523.38 | 198,788,393.17 | 212,692,063.35 | 4,745,523.38 | 207,946,539.97 |
(2) Changes of major construction in progress
Unit: CNY/RMB
| Item Name | Budget | Opening balance | Current amount increased | Transfer-in fixed assets | Other decreased in the Period | Ending balance | Proportion of project investment in budget | Progress | Accumulated capitalization of interest | Including: amount of capitalization of interest in Period | Interest capitalization rate in Period | Capital resources |
| Dongguan grain storage and wharf matching project | 1,242,000,000.00 | 138,980,117.20 | 8,032,352.79 | 147,012,469.99 | 77.42% | 77.42% | 35,743,874.21 | 848,940.01 | 4.36% | Other | ||
| Deep processing of Dongguan | 292,000,000.00 | 824,660.05 | 824,660.05 | 42.00% | 42.00% | 3,552,458.11 | Other |
| Industry and Trading Food | ||||||||||||
| CDE storage of Dongguan Food Industrial Park and wharf mating projects | 1,087,300,000.00 | 1,953,288.69 | 523,112.77 | 2,476,401.46 | 98.50% | 98.50% | 86,730,568.74 | Other | ||||
| Total | 2,621,300,000.00 | 141,758,065.94 | 8,555,465.56 | 150,313,531.50 | 126,026,901.06 | 848,940.01 | -- |
(3) The provision for impairment of construction in progress
Unit: CNY/RMB
| Item | Amount accrual in the period | Reasons of accrual |
Other explanation
(4) Engineering material
Unit: CNY/RMB
| Item | Ending balance | Opening balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
Other explanation
23. Productive biological asset
(1) Measured by cost
√ Applicable □Not applicable
Unit: CNY/RMB
| Item | Plant | Livestock | Forestry | Fisheries | Total |
| Tea tree | |||||
| I. Original book |
| value | |||||
| 1.Opening balance | 416,771.28 | 416,771.28 | |||
| 2.Current amount increased | |||||
| (1)Outsourcing | |||||
| (2)self-cultivate | |||||
| 3.Current amount decreased | |||||
| (1)Disposal | |||||
| (2)Other | |||||
| 4.Ending balance | 416,771.28 | 416,771.28 | |||
| II. Accumulated depreciation | |||||
| 1.Opening balance | 38,769.48 | 38,769.48 | |||
| 2.Current amount increased | 4,846.20 | 4,846.20 | |||
| (1)Accrual | 4,846.20 | 4,846.20 | |||
| 3.Current amount decreased | |||||
| (1)Disposal | |||||
| (2)Other | |||||
| 4.Ending balance | 43,615.68 | 43,615.68 | |||
| III. Impairment provision | |||||
| 1.Opening balance | |||||
| 2.Current amount increased | |||||
| (1)Accrual | |||||
| 3.Current amount decreased | |||||
| (1)Disposal |
| (2)Other | |||||
| 4.Ending balance | |||||
| IV. Book value | |||||
| 1.Ending book value | 373,155.60 | 373,155.60 | |||
| 2. Opening book value | 378,001.80 | 378,001.80 |
(2) Measured by fair value
□ Applicable √Not applicable
24. Oil and gas asset
□ Applicable √Not applicable
25. Right-of-use asset
Unit: CNY/RMB
| Item | House building | Land use rights | Total |
| I. Original book value | |||
| 1.Opening balance | 114,263,346.96 | 1,903,312.71 | 116,166,659.67 |
| 2.Current amount increased | 950,847.20 | 950,847.20 | |
| New leasing | 950,847.20 | 950,847.20 | |
| 3.Current amount decreased | |||
| 4.Ending balance | 115,214,194.16 | 1,903,312.71 | 117,117,506.87 |
| II. Accumulated depreciation | |||
| 1.Opening balance | 18,280,071.52 | 237,914.09 | 18,517,985.61 |
| 2.Current amount increased | 10,581,369.06 | 118,957.03 | 10,700,326.09 |
| (1) Accrual | 10,581,369.06 | 118,957.03 | 10,700,326.09 |
| 3.Current amount decreased | |||
| (1) Disposal | |||
| 4.Ending balance | 28,861,440.58 | 356,871.12 | 29,218,311.70 |
| III. Impairment provision | |||
| 1.Opening balance |
| 2.Current amount increased | |||
| (1) Accrual | |||
| 3.Current amount decreased | |||
| (1) Disposal | |||
| 4.Ending balance | |||
| IV. Book value | |||
| 1.Ending book value | 86,352,753.58 | 1,546,441.59 | 87,899,195.17 |
| 2. Opening book value | 95,983,275.44 | 1,665,398.62 | 97,648,674.06 |
Other explanation:
26. Intangible assets
(1) Intangible assets
Unit: CNY/RMB
| Item | Land use right | Patent | Non-patent technology | Trademark rights | Software usage rights | Forest use rights | Shop use rights | Other | Total |
| I. Original book value | |||||||||
| 1.Opening balance | 639,497,282.33 | 47,245,918.89 | 184,073.32 | 54,841,231.99 | 22,859,104.98 | 3,610,487.37 | 21,221,422.64 | 789,459,521.52 | |
| 2.Current amount increased | 459,024.87 | 459,024.87 | |||||||
| (1) Purchase | 459,024.87 | 459,024.87 | |||||||
| (2) internal R&D | |||||||||
| (3) Increased |
| by combination | |||||||||
| 3.Current amount decreased | |||||||||
| (1) Disposal | |||||||||
| 4.Ending balance | 639,497,282.33 | 47,245,918.89 | 184,073.32 | 55,300,256.86 | 22,859,104.98 | 3,610,487.37 | 21,221,422.64 | 789,918,546.39 | |
| II. Cumulative amortization | |||||||||
| 1.Opening balance | 111,897,160.87 | 29,421,168.19 | 134,532.76 | 15,904,705.80 | 6,944,583.32 | 1,525,322.61 | 7,543,227.73 | 173,370,701.28 | |
| 2.Current amount increased | 7,810,964.96 | 714,367.56 | 5,875.08 | 3,773,555.06 | 386,431.80 | 54,002.70 | 1,884,095.41 | 14,629,292.57 | |
| (1) Accrual | 7,810,964.96 | 714,367.56 | 5,875.08 | 3,773,555.06 | 386,431.80 | 54,002.70 | 1,884,095.41 | 14,629,292.57 | |
| 3.Current amount decreased | |||||||||
| (1) Disposal | |||||||||
| 4.Ending balance | 119,708,125.83 | 30,135,535.75 | 140,407.84 | 19,678,260.86 | 7,331,015.12 | 1,579,325.31 | 9,427,323.14 | 187,999,993.85 | |
| III. |
| Impairment provision | |||||||||
| 1.Opening balance | 5,553,283.54 | 1,130,341.88 | 6,683,625.42 | ||||||
| 2.Current amount increased | |||||||||
| (1) Accrual | |||||||||
| 3.Current amount decreased | |||||||||
| (1) Disposal | |||||||||
| 4.Ending balance | 5,553,283.54 | 1,130,341.88 | 6,683,625.42 | ||||||
| IV. Book value | |||||||||
| 1.Ending book value | 519,789,156.50 | 11,557,099.60 | 43,665.48 | 34,491,654.12 | 15,528,089.86 | 2,031,162.06 | 11,794,099.50 | 595,234,927.12 | |
| 2. Opening book value | 527,600,121.46 | 12,271,467.16 | 49,540.56 | 37,806,184.31 | 15,914,521.66 | 2,085,164.76 | 13,678,194.91 | 609,405,194.82 |
Ratio of the intangible assets from internal R&D in balance of intangible assets at period-end
(2) Land use rights without certificate of ownership
Unit: CNY/RMB
| Item | Book value | Reasons for without the property certification |
| Land use right | 7,849,990.00 | Still under processing |
Other explanation:
27. Expense on Research and Development
Unit: CNY/RMB
| Item | Opening balance | Current amount increased | Current amount decreased | Ending balance | ||||
| Internal development expenditure | Other | Confirmed as intangible assets | Transfer to current profit and loss | |||||
| Z2210401;Z2210101 project | 326,306.90 | 326,306.90 | ||||||
| Total | 326,306.90 | 326,306.90 | ||||||
Other explanation
28. Goodwill
(1) Original book value
Unit: CNY/RMB
| The invested entity or matters forming goodwill | Opening balance | Current increased | Current decreased | Ending balance | ||
| Formed by business combination | Dispose | |||||
| Wuhan Jiacheng Biotechnology Co., Ltd. | 1,953,790.56 | 1,953,790.56 | ||||
| Yunnan Pu’er Tea Trading Center Co., Ltd. | 673,940.32 | 673,940.32 | ||||
| Total | 2,627,730.88 | 2,627,730.88 | ||||
(2) Goodwill impairment provision
Unit: CNY/RMB
| The invested entity or matters forming goodwill | Opening balance | Current increased | Current decreased | Ending balance | ||
| Accrual | Dispose | |||||
| Yunnan Pu’er Tea Trading Center Co., Ltd. | 673,940.32 | 673,940.32 | ||||
| Total | 673,940.32 | 673,940.32 |
Relevant information about the assets group or portfolio goodwill includedInstructions for goodwill impairments test process and key parameters (such as the forecast period growth rate,stable period growth rate, profit rate, discount rate, and forecast period when estimating the present value of thefuture cash flow), and the method of confirming the impairment loss of goodwill:
Impact of goodwill impairment testOther explanation
29. Long-term expenses to be apportioned
Unit: CNY/RMB
| Item | Opening balance | Current amount increased | Current amortization | Other decreased | Ending balance |
| Improve expenditure for fix assets | 14,283,062.63 | 450,179.21 | 2,046,251.80 | 12,686,990.04 | |
| Decoration fee | 9,235,428.02 | 751,329.99 | 1,168,987.24 | 8,817,770.77 | |
| Improve expenditure for investment real estate | 283,138.77 | 19,087.98 | 264,050.79 | ||
| Affiliated project of resident area in Wuyuan Jufangyong | 70,356.31 | 13,191.78 | 57,164.53 | ||
| Other | 4,923,220.72 | 125,500.00 | 719,037.55 | 4,329,683.17 | |
| Total | 28,795,206.45 | 1,327,009.20 | 3,966,556.35 | 26,155,659.30 |
Other explanation
30. Deferred income tax asset /Deferred income tax liabilities
(1) Deferred income tax assets without offset
Unit: CNY/RMB
| Item | Ending balance | Opening balance | ||
| Deductible temporary differences | Deferred income tax asset | Deductible temporary differences | Deferred income tax asset | |
| Impairment provision for assets | 63,091,518.23 | 15,132,426.76 | 62,056,367.05 | 15,139,642.20 |
| Unrealized profits in | 2,845,136.63 | 426,770.49 | 2,250,127.31 | 337,519.10 |
| internal transactions | ||||
| Deductible loss | 2,383,937.40 | 357,590.61 | 2,383,937.40 | 357,590.61 |
| Credit impairment loss | 99,746,216.18 | 24,680,944.35 | 99,371,735.40 | 24,694,673.56 |
| Total | 168,066,808.44 | 40,597,732.21 | 166,062,167.16 | 40,529,425.47 |
(2) Deferred income tax liability without offset
Unit: CNY/RMB
| Item | Ending balance | Opening balance | ||
| Taxable temporary differences | Deferred income tax liabilities | Taxable temporary differences | Deferred income tax liabilities | |
| Asset evaluation increment of enterprise combine under different control | 60,330,328.86 | 13,661,333.11 | 61,157,763.69 | 13,868,191.82 |
| Total | 60,330,328.86 | 13,661,333.11 | 61,157,763.69 | 13,868,191.82 |
(3) Deferred income tax assets and deferred income tax liabilities listed after off-set
Unit: CNY/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 asset | 40,597,732.21 | 40,529,425.47 | ||
| Deferred income tax liabilities | 13,661,333.11 | 13,868,191.82 |
(4) Details of uncertain deferred income tax assets
Unit: CNY/RMB
| Item | Ending balance | Opening balance |
| Deductible temporary differences | 150,364,591.83 | 155,064,630.67 |
| Deductible loss | 262,976,172.93 | 254,117,581.76 |
| Total | 413,340,764.76 | 409,182,212.43 |
(5) Deductible losses of un-recognized deferred income tax assets expired on the followed year
Unit: CNY/RMB
| Year | Ending amount | Opening amount | Note |
Other explanation
31. Other non-current asset
Unit: CNY/RMB
| Item | Ending balance | Opening balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Prepaid for equipment | 596,301.00 | 596,301.00 | 1,329,101.00 | 1,329,101.00 | ||
| Prepaid for system | 4,701,190.87 | 4,701,190.87 | 4,602,630.58 | 4,602,630.58 | ||
| Total | 5,297,491.87 | 5,297,491.87 | 5,931,731.58 | 5,931,731.58 | ||
Other explanation:
32. Short-term loans
(1) Category
Unit: CNY/RMB
| Item | Ending balance | Opening balance |
| Guaranteed Loan | 5,000,000.00 | 1,500,000.00 |
| Loan in credit | 720,635,087.73 | 503,266,782.25 |
| Total | 725,635,087.73 | 504,766,782.25 |
Explanation on category of short-term loans:
(2) Overdue short-term loans without payment
RMB 0 short-term loans over due without paid at period-end, including follow major amount:
Unit: CNY/RMB
| Borrower | Ending balance | Loan rate | Overdue time | Overdue interest |
Other explanation
33. Tradable financial liability
Unit: CNY/RMB
| Item | Ending balance | Opening balance |
| Including: | ||
| Including: |
Other explanation
34. Derivative financial liability
Unit: CNY/RMB
| Item | Ending balance | Opening balance |
Other explanation
35. Note payable
Unit: CNY/RMB
| Category | Ending balance | Opening balance |
Notes expired at year-end without paid was 0 Yuan.
36. Account payable
(1) Account payable
Unit: CNY/RMB
| Item | Ending balance | Opening balance |
| Trade accounts payable | 339,539,462.40 | 154,756,781.25 |
| Account payable for engineering | 213,373,487.06 | 271,692,014.89 |
| Other | 1,935,229.97 | 457,873.57 |
| Total | 554,848,179.43 | 426,906,669.71 |
(2) Major accounts payable with age over one year
Unit: CNY/RMB
| Item | Ending balance | Reasons of outstanding or carry-over |
Other explanation
37. Accounts received in advance
(1) Accounts received in advance
Unit: CNY/RMB
| Item | Ending balance | Opening balance |
| Other | 8,440,204.85 | 2,379,891.67 |
| Total | 8,440,204.85 | 2,379,891.67 |
(2) Important account received in advance with account age over one year
Unit: CNY/RMB
| Item | Ending balance | Reasons of outstanding or carry-over |
Other explanation
38. Contract liabilities
Unit: CNY/RMB
| Item | Ending balance | Opening balance |
| Sales price | 83,531,467.12 | 182,972,314.85 |
| Total | 83,531,467.12 | 182,972,314.85 |
Amount and reasons for important changes of book value in the period
Unit: CNY/RMB
| Item | Amount changed | Reasons of changes |
39. Wage payable
(1) Wage payable
Unit: CNY/RMB
| Item | Opening balance | Current increased | Current decreased | Ending balance |
| I. Short-term compensation | 302,581,812.37 | 158,075,025.42 | 229,833,716.93 | 230,823,120.86 |
| II. After-service welfare-defined contribution plans | 17,397,568.50 | 12,007,617.69 | 17,295,092.95 | 12,110,093.24 |
| III. Dismissed welfare | 726,674.60 | 1,324,436.60 | 1,324,436.60 | 726,674.60 |
| Total | 320,706,055.47 | 171,407,079.71 | 248,453,246.48 | 243,659,888.70 |
(2) Short-term compensation
Unit: CNY/RMB
| Item | Opening balance | Current increased | Current decreased | Ending balance |
| 1. Wage, bonus, allowance and subsidy | 295,270,793.56 | 137,398,476.17 | 208,775,279.00 | 223,893,990.73 |
| 2. Employees’ welfare | 396,756.42 | 6,993,908.40 | 7,390,664.82 | |
| 3. Social insurance charges | 349,682.30 | 3,250,914.47 | 3,426,137.14 | 174,459.63 |
| Including: medical insurance premium | 314,270.80 | 2,969,056.31 | 3,127,418.60 | 155,908.51 |
| Industrial injury insurance premiums | 6,181.14 | 102,660.70 | 106,094.62 | 2,747.22 |
| Maternity insurance premiums | 29,230.36 | 179,197.46 | 192,623.92 | 15,803.90 |
| 4. Housing public reserve | 8,245,811.07 | 7,824,092.21 | 421,718.86 | |
| 5. Trade union fee and education fee | 6,564,580.09 | 2,185,915.31 | 2,417,543.76 | 6,332,951.64 |
| Total | 302,581,812.37 | 158,075,025.42 | 229,833,716.93 | 230,823,120.86 |
(3) Defined contribution plans
Unit: CNY/RMB
| Item | Opening balance | Current increased | Current decreased | Ending balance |
| 1. Basic endowment insurance premiums | 9,014,786.61 | 8,841,985.53 | 172,801.08 | |
| 2. Unemployment insurance premiums | 8,702.95 | 100,023.75 | 104,654.11 | 4,072.59 |
| 3. Enterprise annuity | 17,388,865.55 | 2,892,807.33 | 8,348,453.31 | 11,933,219.57 |
| Total | 17,397,568.50 | 12,007,617.69 | 17,295,092.95 | 12,110,093.24 |
Other explanation:
40. Taxes payable
Unit: CNY/RMB
| Item | Ending balance | Opening balance |
| VAT | 4,683,262.98 | 5,394,516.81 |
| Enterprise income tax | 16,598,156.90 | 75,860,781.94 |
| Personal income tax | 16,086,239.75 | 2,264,416.73 |
| Urban maintenance and construction tax | 215,257.06 | 247,110.08 |
| House property tax | 5,688,062.47 | 1,310,817.90 |
| Deed tax | 664,227.84 | 664,227.84 |
| Stamp tax | 262,711.31 | 648,290.86 |
| Use tax of land | 794,772.27 | 214,536.03 |
| Educational surtax | 180,191.99 | 203,981.23 |
| Other | 84,910.90 | 4,908.73 |
| Total | 45,257,793.47 | 86,813,588.15 |
Other explanation:
41. Other account payable
Unit: CNY/RMB
| Item | Ending balance | Opening balance |
| Dividend payable | 2,933,690.04 | 2,933,690.04 |
| Other account payable | 376,576,997.70 | 373,673,508.95 |
| Total | 379,510,687.74 | 376,607,198.99 |
(1) Interest payable
Unit: CNY/RMB
| Item | Ending balance | Opening balance |
Major overdue interest:
Unit: CNY/RMB
| Borrower | Overdue amount | Overdue causes |
Other explanation
(2) Dividend payable
Unit: CNY/RMB
| Item | Ending balance | Opening balance |
| Common stock dividend | 2,933,690.04 | 2,933,690.04 |
| Total | 2,933,690.04 | 2,933,690.04 |
Other explanation, including important dividend payable over one year without payment, disclose reasons forun-paid:
(3) Other account payable
1) By nature
Unit: CNY/RMB
| Item | Ending balance | Opening balance |
| Engineering quality retention money and fund of tail | 963,863.07 | 1,436,175.56 |
| Deposit and margin | 114,423,319.31 | 134,841,365.60 |
| Intercourse funds and other | 225,376,359.53 | 201,486,678.66 |
| Drawing expenses in advance | 35,813,455.79 | 35,909,289.13 |
| Total | 376,576,997.70 | 373,673,508.95 |
2) Significant other account payable with over one year age
Unit: CNY/RMB
| Item | Ending balance | Reasons of outstanding or carry-over |
Other explanation
42. Liability held for sale
Unit: CNY/RMB
| Item | Ending balance | Opening balance |
Other explanation
43. Non-current liabilities due within one year
Unit: CNY/RMB
| Item | Ending balance | Opening balance |
| Long-term loans due within one year | 100,942,021.51 | 108,955,105.34 |
| Lease liabilities due within one year | 11,890,508.04 | 19,777,369.82 |
| Total | 112,832,529.55 | 128,732,475.16 |
Other explanation:
44. Other current liabilities
Unit: CNY/RMB
| Item | Ending balance | Opening balance |
| VAT payable | 1,764,823.46 | 4,367,576.91 |
| Total | 1,764,823.46 | 4,367,576.91 |
Change of short-term bonds payable:
Unit: CNY/RMB
| Bonds | Face value | Issuance date | Bonds term | Amount issued | Opening balance | Issued in the period | Accrual interest by face value | Premium and discount amortization | Paid in the period | Ending balance | |
| Total |
Other explanation: nil
45. Long-term loans
(1) Category
Unit: CNY/RMB
| Item | Ending balance | Opening balance |
| Mortgage + guarantee | 624,310,269.81 | 730,521,692.22 |
| Total | 624,310,269.81 | 730,521,692.22 |
Explanation on category of long-term loans:
Other explanation, including interest rate range:
46. Bonds payable
(1) Bonds payable
Unit: CNY/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)
Unit: CNY/RMB
| Bonds | Face value | Issuance date | Bonds term | Amount issued | Opening balance | Issued in the period | Accrual interest by face value | Premium and discount | Paid in the period | Ending balance |
| amortization | |||||||||||
| Total | —— | ||||||||||
(3) Convertible conditions and time for shares transfer for the convertible bonds
(4) Other financial instruments classify as financial liability
Basic information of the outstanding preferred stock and perpetual capital securities at period-endChanges of outstanding preferred stock and perpetual capital securities at period-end
Unit: CNY/RMB
| Outstanding financial instrument | Period-beginning | Current increased | Current decreased | Period-end | ||||
| Amount | Book value | Amount | Book value | Amount | Book value | Amount | Book value | |
Basis for financial liability classification for other financial instrumentOther explanation
47. Lease liability
Unit: CNY/RMB
| Item | Ending balance | Opening balance |
| Lease Payments | 99,431,195.96 | 110,058,216.03 |
| Unrecognized financing charges | -8,200,090.85 | -10,107,102.46 |
| Lease liabilities due within one year | -11,890,508.04 | -19,777,369.82 |
| Total | 79,340,597.07 | 80,173,743.75 |
Other explanation
48. Long-term account payable
Unit: CNY/RMB
| Item | Ending balance | Opening balance |
| Special account payable | 17,445,737.26 | 17,266,921.98 |
| Total | 17,445,737.26 | 17,266,921.98 |
(1) By nature
Unit: CNY/RMB
| Item | Ending balance | Opening balance |
Other explanation
(2) Special account payable
Unit: CNY/RMB
| Item | Opening balance | Current increased | Current decreased | Ending balance | Causes |
| Depreciation fund for grain deposits | 16,277,275.98 | 28,437.28 | 16,305,713.26 | ||
| Shenzhen Hospital Phase III Housing Expropriation Property Rights Exchange | 989,646.00 | 150,378.00 | 1,140,024.00 | ||
| Total | 17,266,921.98 | 178,815.28 | 17,445,737.26 |
Other explanation:
49. Long-term wage payable
(1) Long-term wage payable
Unit: CNY/RMB
| Item | Ending balance | Opening balance |
(2) Changes of defined benefit plans
Present value of the defined benefit plans:
Unit: CNY/RMB
| Item | Current Period | Last Period |
Scheme assets:
Unit: CNY/RMB
| Item | Current Period | Last Period |
Net liability (assets) of the defined benefit plans
Unit: CNY/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 timesand uncertainty:
Major actuarial assumption and sensitivity analysis:
Other explanation
50. Accrual liabilities
Unit: CNY/RMB
| Item | Ending balance | Opening balance | Causes |
| External guarantee | 3,500,000.00 | 3,500,000.00 | See explanation for details |
| Total | 3,500,000.00 | 3,500,000.00 | -- |
Other explanation, including relevant important assumptions and estimation:
Note: According to the civil judgment made by the Shenzhen Intermediate People’s Court, in the disputes overloan contract between Changzhou Shenbao Chacang Electronic Commerce Co., Ltd. and Shenzhen AgriculturalProducts Financing Guarantee Co., Ltd., the Company shall assume joint and several liabilities for repayment ofthe debts of Changzhou Shenbao Chacang Electronic Commerce Co., Ltd. within the scope of 3.5 million yuan.
51. Deferred income
Unit: CNY/RMB
| Item | Opening balance | Current increased | Current decreased | Ending balance | Causes |
| Government subsidy related to assets | 93,129,536.68 | 6,048,603.76 | 87,080,932.92 | ||
| Total | 93,129,536.68 | 6,048,603.76 | 87,080,932.92 |
Item with Government subsidy involved:
Unit: CNY/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 |
| Intelligent management of grain depot based on mobile internet | 266,666.52 | 100,000.02 | 166,666.50 | Assets-related | ||||
| Special funds for intelligent upgrading and transformation of grain warehouse “Grain Safety Project” | 6,287,083.39 | 477,499.98 | 5,809,583.41 | Assets-related | ||||
| Government central government grant funds | 6,219,714.58 | 3,633,373.44 | 2,586,341.14 | Assets-related |
| Base of further processing for tea and nature plants | 274,999.96 | 137,500.02 | 137,499.94 | Assets-related | ||||
| Special fund for the development of strategic emerging industries in Shenzhen | 2,485,265.75 | 175,604.52 | 2,309,661.23 | Assets-related | ||||
| Industrialization of instant tea powder | 1,494,799.03 | 98,222.94 | 1,396,576.09 | Assets-related | ||||
| Enterprise technology center is a municipal R&D center. Subsidies for industrial technological advancement | 1,375,227.49 | 102,012.24 | 1,273,215.25 | Assets-related | ||||
| Grant for key technology research and industrialization of instant tea powder | 110,276.21 | 7,122.48 | 103,153.73 | Assets-related | ||||
| Construction amount for 50 tons | 124,999.90 | 62,500.02 | 62,499.88 | Assets-related |
| for clearly processing for Mingyou tea | ||||||||
| Subsidy for supply system construction of agricultural products | 150,000.00 | 100,000.00 | 50,000.00 | Assets-related | ||||
| Construction of O2O community sales service system for high quality grain and oil based on B2C E-commerce platform | 1,679,875.08 | 16,339.04 | 1,663,536.04 | Assets-related | ||||
| Industrialization of Doximi E-commerce platform | 241,860.58 | 241,860.58 | Assets-related | |||||
| Grain storage project of Dongguan Shenliang Logistics Co., Ltd. - Storage A | 7,455,646.47 | 131,128.56 | 7,324,517.91 | Assets-related | ||||
| Phase II of grain storage project of Dongguan Shenliang | 29,874,797.96 | 515,650.26 | 29,359,147.70 | Assets-related |
| Logistics Co., Ltd.- Storage B | ||||||||
| Grain, oil and food headquarters and innovative public service platform of Dongguan Shenliang Logistics Co., Ltd. | 18,000,000.00 | 18,000,000.00 | Assets-related | |||||
| Construction of 450000 ton silos and 60000 ton film silos -CDE warehouse. Gas storage bin | 17,088,323.76 | 249,789.66 | 16,838,534.10 | Assets-related | ||||
| Total | 93,129,536.68 | 6,048,603.76 | 87,080,932.92 |
Other explanation:
52. Other non-current liabilities
Unit: CNY/RMB
| Item | Ending balance | Opening balance |
Other explanation
53. Share capital
Unit: CNY/RMB
| Opening balance | Increased (decreased) in this period (+, -) | Ending balance | |||||
| New shares issued | Bonus shares | Shares converted from public reserve | Other | Subtotal | |||
| Total shares | 1,152,535,25 | 1,152,535,25 | |||||
| 4.00 | 4.00 |
Other explanation:
54. Other equity instrument
(1) Basic information of the outstanding preferred stock and perpetual capital securities at period-end
(2) Changes of outstanding preferred stock and perpetual capital securities at period-end
Unit: CNY/RMB
| Outstanding financial instrument | Period-beginning | Current increased | Current decreased | Period-end | ||||
| Amount | Book value | Amount | Book value | Amount | Book value | Amount | Book value | |
Changes of other equity instrument, change reasons and relevant accounting treatment basis:
Other explanation
55. Capital public reserve
Unit: CNY/RMB
| Item | Opening balance | Current increased | Current decreased | Ending balance |
| Capital premium (Share capital premium) | 1,250,743,274.79 | 1,250,743,274.79 | ||
| Other capital reserve | 8,896,381.86 | 8,896,381.86 | ||
| Total | 1,259,639,656.65 | 1,259,639,656.65 |
Other instructions, including changes in the current period, reasons for the change:
56. Treasury stock
Unit: CNY/RMB
| Item | Opening balance | Current increased | Current decreased | Ending balance |
Other explanation, including changes and reasons for changes:
57. Other comprehensive income
Unit: CNY/RMB
| Item | Opening balance | Current Period | Ending balance | |||||
| Account before income tax in the period | Less: written in other comprehensive income in previous | Less: written in other comprehensive income in previous | Less : income tax expense | Belong to parent company after tax | Belong to minority shareholders after tax | |||
| period and carried forward to gains and losses in current period | period and carried forward to retained earnings in current period |
Other explanation, including the active part of the hedging gains/losses of cash flow transfer to initialreorganization adjustment for the arbitraged items:
58. Reasonable reserve
Unit: CNY/RMB
| Item | Opening balance | Current increased | Current decreased | Ending balance |
| Production safety fee | 723,692.27 | 723,692.27 | ||
| Total | 723,692.27 | 723,692.27 |
Other explanation, including changes and reasons for changes:
58. Surplus public reserve
Unit: CNY/RMB
| Item | Opening balance | Current increased | Current decreased | Ending balance |
| Statutory surplus reserves | 405,575,490.42 | 405,575,490.42 | ||
| Total | 405,575,490.42 | 405,575,490.42 |
Other explanation, including changes and reasons for changes:
60. Retained profit
Unit: CNY/RMB
| Item | Current period | Last period |
| Retained profit at the end of the previous year before adjustment | 1,812,541,701.27 | 1,637,536,441.03 |
| Total retained profit at the beginning of the previous year before adjustment | 1,812,541,701.27 | 1,637,536,441.03 |
| Add: net profit attributable to shareholder of parent company | 237,527,782.93 | 428,720,226.09 |
| Less: withdrawal of legal surplus reserve | 23,207,915.05 | |
| Common stock dividends payable | 288,133,813.50 | 230,507,050.80 |
| Retained profit at period-end | 1,761,935,670.70 | 1,812,541,701.27 |
Details about adjusting the retained profits at the beginning of the period:
1) The retroactive adjustments to Accounting Standards for Business Enterprises and its relevant newregulations affect the retained profits at the beginning of the period amounting to 0 Yuan.
2) The changes in accounting policies affect the retained profits at the beginning of the period amounting to 0
Yuan.
3) The major accounting error correction affects the retained profits at the beginning of the period amounting to0 Yuan
4) Merge scope changes caused by the same control affect the retained profits at the beginning of the periodamounting to 0 Yuan.
5) Other adjustments affect the retained profits at the beginning of the period amounting to 0 Yuan
61. Operating income and operating cost
Unit: CNY/RMB
| Item | Current period | Last period | ||
| Income | Cost | Income | Cost | |
| Main business | 4,337,091,078.42 | 3,774,554,176.15 | 5,259,568,275.95 | 4,649,191,683.41 |
| Other business | 953,449.93 | 1,271,449.66 | 2,620,904.58 | 1,205,387.26 |
| Total | 4,338,044,528.35 | 3,775,825,625.81 | 5,262,189,180.53 | 4,650,397,070.67 |
Information relating to revenue:
Unit: CNY/RMB
| Category | Branch 1 | Branch 2 | Total | |
| Product Types | ||||
| Including: | ||||
| Classification by business area | ||||
| Including: | ||||
| Market or customer type | ||||
| Including: | ||||
| Contract Types | ||||
| Including: | ||||
| Classification by time of goods transfer | ||||
| Including: | ||||
| Classification by contract duration | ||||
| Including: | ||||
| Classification by sales channel |
| Including: | ||||
| Total |
Information relating to performance obligations:
NilInformation related to the transaction price apportioned to the remaining performance obligations:
The amount of income corresponding to the performance obligations that have been signed at the end of thisreporting period but have not yet been fulfilled or have not done with fulfillment is 83,531,467.12 yuan, amongthem, 83,531,467.12 yuan of revenue is expected to be recognized in 1, yuan of revenue is expected to berecognized in YEAR, and yuan of revenue is expected to be recognized in YEAR.Other explanation
62. Tax and surcharges
Unit: CNY/RMB
| Item | Current period | Last period |
| Consumption tax | 895,956.94 | 544,486.02 |
| Urban maintenance and construction tax | 679,527.61 | 411,731.33 |
| House property tax | 5,248,155.88 | 4,225,156.71 |
| Use tax of land | 1,110,186.75 | 945,095.60 |
| Vehicle and vessel use tax | 11,504.16 | 8,953.20 |
| Stamp duty | 1,098,343.62 | 826,252.63 |
| Other | 6,810.95 | 7,604.36 |
| Total | 9,050,485.91 | 6,969,279.85 |
Other explanation:
63. Sales expenses
Unit: CNY/RMB
| Item | Current Period | Last Period |
| Labor and social security benefits | 50,753,585.91 | 40,890,403.82 |
| Port terminal fee | 716,873.62 | 17,962,250.33 |
| Warehousing, loading and unloading fees | 1,731,511.87 | 15,646,124.52 |
| Depreciation and amortization of long-term assets | 6,945,867.51 | 6,730,728.23 |
| Equivalent loss for low value perishable goods | 1,795,020.01 | 2,408,636.91 |
| Utilities and office expenses | 5,073,994.09 | 2,848,894.71 |
| After-sale services | 5,310,993.88 | 2,359,846.00 |
| Rental fee | 2,387,092.62 | 2,942,783.48 |
| Advertisement charge | 444,896.32 | 790,841.41 |
| Travel expenses | 489,966.51 | 1,101,872.85 |
| Business hospitality expenses | 600,487.33 | 799,812.28 |
| Property insurance premium | 412,474.71 | 631,971.43 |
| Logistics transportation fee | 1,016,601.52 | 2,180,760.95 |
| Sales commission | 231,142.82 | 230,219.20 |
| Automobile expenses | 98,335.07 | 296,086.85 |
| Other | 1,322,237.90 | 8,890,543.80 |
| Total | 79,331,081.69 | 106,711,776.77 |
Other explanation:
64. Administration expenses
Unit: CNY/RMB
| Item | Current Period | Last Period |
| Labor and social security benefits | 87,350,621.59 | 74,829,904.07 |
| Depreciation and amortization of long-term assets | 19,952,461.81 | 12,401,821.37 |
| Office expenses | 5,602,580.56 | 5,946,658.73 |
| Intermediary agency fee | 3,139,405.86 | 3,127,140.25 |
| Rental | 310,642.57 | 2,049,677.28 |
| Travel expenses | 403,109.35 | 721,643.56 |
| Communication fee | 707,182.05 | 602,782.52 |
| Business hospitality | 413,778.48 | 776,421.99 |
| Vehicle usage fee | 492,876.00 | 458,887.95 |
| Relocation and shutdown costs | 412,506.76 | 419,391.74 |
| Repair cost | 183,270.55 | 311,482.72 |
| Low-value consumables | 84,958.94 | 66,494.16 |
| Other | 6,578,147.22 | 7,603,787.31 |
| Total | 125,631,541.74 | 109,316,093.65 |
Other explanation:
65. R&D expenses
Unit: CNY/RMB
| Item | Current Period | Last Period |
| Labor and social security benefits | 6,716,359.32 | 7,052,838.34 |
| Depreciation cost | 1,998,043.41 | 2,141,451.05 |
| Logistics consumption | 592,590.41 | 350,852.23 |
| Travel expenses | 139,106.57 | 350,496.63 |
| Maintenance and inspection fee | 102,772.23 | 190,595.59 |
| Office expenses | 362,891.74 | 559,237.89 |
| Intermediary fees | 62,832.83 | 18,883.02 |
| Automobile expenses | 199.50 | 27,522.00 |
| Other | 162,381.76 | 234,141.40 |
| Total | 10,137,177.77 | 10,926,018.15 |
Other explanation:
66. Financial expenses
Unit: CNY/RMB
| Item | Current period | Last period |
| Interest expenses | 27,256,521.87 | 15,362,400.04 |
| Less: Interest income | 1,233,894.54 | 765,002.68 |
| Exchange loss | -335,848.25 | 152,194.11 |
| Other | 2,322,849.37 | 2,455,183.05 |
| Total | 28,009,628.45 | 17,204,774.52 |
Other explanation:
67. Other income
Unit: CNY/RMB
| Sources | Current period | Last period |
| Government subsidies related to asset | ||
| Government subsidies related to income | ||
| Collectively deduction for input tax | 258,853.31 | 294,887.24 |
| Withholding personal income tax handling fee | 287,394.38 | 321,549.63 |
| Direct VAT exemption | 7,091.04 | 199.68 |
| Government subsidy | 7,465,486.58 | 4,275,292.75 |
| Other | 11,418.67 | |
| Total | 8,030,243.98 | 4,891,929.30 |
68. Investment income
Unit: CNY/RMB
| Item | Current period | Last period |
| Long-term equity investment income measured by equity | -535,079.99 | 440,179.67 |
| Income from financial products | 3,573,445.74 | 3,061,191.63 |
| Total | 3,038,365.75 | 3,501,371.30 |
Other explanation:
69. Net exposure hedge gains
Unit: CNY/RMB
| Item | Current Period | Last Period |
Other explanation
70. Income of fair value changes
Unit: CNY/RMB
| Sources | Current period | Last period |
| Tradable financial assets | 221,889.46 | 288,972.32 |
| Total | 221,889.46 | 288,972.32 |
Other explanation:
71. Credit impairment loss
Unit: CNY/RMB
| Item | Current period | Last period |
| Loss of bad debt of other account receivable | 5,099.80 | 46,004.50 |
| Loss of bad debt of account receivable | 240,756.21 | -11,847.13 |
| Total | 245,856.01 | 34,157.37 |
Other explanation:
72. Assets impairment loss
Unit: CNY/RMB
| Item | Current period | Last period |
| II. Inventory price drop loss and contract performance cost impairment loss | -81,499,450.86 | -111,448,173.12 |
| Total | -81,499,450.86 | -111,448,173.12 |
Other explanation:
73. Income from assets disposal
Unit: CNY/RMB
| Sources | Current period | Last period |
| Profit and loss on disposal of non current assets | 8,318.64 | |
| Total | 8,318.64 |
74. Non-operating income
Unit: CNY/RMB
| Item | Current period | Last period | Amount included in the current non-recurring profit and loss |
| Government subsidy | 84,111.74 | 3,879.42 | 84,111.74 |
| Profit | 91,006.38 | ||
| Other | 358,293.46 | 1,532,816.76 | 358,293.46 |
| Liquidated damages compensation income | 690,612.11 | 690,612.11 | |
| Total | 1,133,017.31 | 1,627,702.56 | 1,133,017.31 |
Government subsidy reckoned into current gains/losses:
Unit: CNY/RMB
| Grants | Issuing subject | Issuing cause | Property type | Whether the impact of subsidies on the current profit and loss | Whether special subsidies | Amount of this period | Amount of last period | Assets related/Income related |
Other explanation:
75. Non-operating expenditure
Unit: CNY/RMB
| Item | Current period | Last period | Amount included in the current non-recurring profit and loss |
| External donations | 39,545.29 | 150,397.26 | 39,545.29 |
| Inventory loss | 6,532.18 | ||
| Loss of scrap from non-current assets | 6,686.73 | 19,868.54 | 6,686.73 |
| Other | 20,901.95 | 226,366.32 | 20,901.95 |
| Total | 67,133.97 | 403,164.30 | 67,133.97 |
Other explanation:
76. Income tax expense
(1) Income tax expense
Unit: CNY/RMB
| Item | Current period | Last period |
| Current income tax expenses | 3,110,846.12 | 13,716,643.86 |
| Deferred income tax expenses | -152,179.71 | -309,289.30 |
| Total | 2,958,666.41 | 13,407,354.56 |
(2) Adjustment process of accounting profit and income tax expenses
Unit: CNY/RMB
| Item | Current period |
| Total profit | 241,161,774.66 |
| Income tax expenses calculated by statutory tax rate | 60,290,443.67 |
| Impact from different tax rate apply with the subsidiary | -45,564.86 |
| Effect of adjusting income tax in the previous period | -12,917,232.17 |
| Impact of non taxable income | -91,450,323.76 |
| Impact on cost, expenses and losses that unable to deducted | 26,924,970.14 |
| Impact of the deductible loss on deferred income tax assets not recognized in the prior period of use | -2,174,080.47 |
| Unrecognized impacts of deductible temporary differences or deductible losses on deferred income tax assets in the period | 22,330,453.86 |
| Income tax expenses | 2,958,666.41 |
Other explanation
77. Other comprehensive income
Found more in annotations
78. Annotation of cash flow statement
(1) Cash received with other operating activities concerned
Unit: CNY/RMB
| Item | Current period | Last period |
| Intercourse funds and deposit | 966,296,334.99 | 501,614,298.48 |
| Government subsidy | 1,500,994.56 | 6,664,197.50 |
| Interest income | 1,233,894.54 | 765,002.68 |
| Other | 21,683,507.64 | |
| Total | 969,031,224.09 | 509,043,498.66 |
Note of cash paid with other operating activities concerned:
(2) Cash paid with other operating activities concerned
Unit: CNY/RMB
| Item | Current period | Last period |
| Intercourse funds and deposit | 983,321,525.67 | 506,989,695.21 |
| Operating daily expenses | 38,737,048.77 | 80,962,607.92 |
| Other | 7,805,198.84 | 4,025,352.26 |
| Total | 1,029,863,773.28 | 591,977,655.39 |
Note of cash paid with other operating activities concerned:
(3) Cash received with other investment activities concerned
Unit: CNY/RMB
| Item | Current period | Last period |
| Other | 154.49 | 54,336.41 |
| Total | 154.49 | 54,336.41 |
Note of cash received with other investment activities concerned:
(4) Cash paid related with investment activities
Unit: CNY/RMB
| Item | Current period | Last period |
| Other | 928.80 | 109,602.00 |
| Total | 928.80 | 109,602.00 |
Note of cash paid related with investment activities:
(5) Cash received with other financing activities concerned
Unit: CNY/RMB
| Item | Current Period | Last Period |
Note of cash received with other financing activities concerned:
(6) Other cash paid related with financing activities
Unit: CNY/RMB
| Item | Current period | Last period |
| Operating lease rent paid | 9,528,424.77 | |
| Total | 9,528,424.77 |
Note of other cash paid related with financing activities:
79. Supplementary information to statement of cash flow
(1) Supplementary information to statement of cash flow
Unit: CNY/RMB
| Supplementary information | Current period | Last period |
| 1. Net profit adjusted to cash flow of operation activities: | ||
| Net profit | 238,203,108.25 | 245,757,926.43 |
| Add: Impairment provision for assets | 81,253,594.85 | 111,414,015.75 |
| Depreciation of fixed assets, consumption of oil assets and depreciation of productive biology assets | 54,905,296.21 | 39,826,096.31 |
| Depreciation of right-of-use assets | 10,700,326.09 | 8,663,657.57 |
| Amortization of intangible assets | 14,629,292.57 | 13,380,523.65 |
| Amortization of long-term pending expenses | 3,966,556.35 | 9,959,152.51 |
| Loss from disposal of fixed assets, intangible assets and other long-term | -570.00 | -8,318.64 |
| assets (income is listed with “-”) | ||
| Losses on scrapping of fixed assets (income is listed with “-“) | 6,686.73 | 19,868.54 |
| Loss from change of fair value (income is listed with “-“) | -221,889.46 | -288,972.32 |
| Financial expenses (income is listed with “-”) | 26,920,673.62 | 15,500,789.85 |
| Investment loss (income is listed with “-”) | -3,038,365.75 | -3,501,371.30 |
| Decrease of deferred income tax assets (increase is listed with “-”) | -68,306.74 | -102,430.60 |
| Decrease of deferred income tax asset ((increase is listed with “-”) | -206,858.71 | -206,858.70 |
| Decrease of inventory (increase is listed with “-”) | -233,168,543.50 | -713,312,219.22 |
| Decrease of operating receivable accounts (increase is listed with “-”) | 99,277,098.55 | -557,180,868.53 |
| Increase of operating payable accounts (decrease is listed with “-”) | -32,784,596.20 | 138,806,857.37 |
| Other | ||
| Net cash flow arising from operating activities | 260,373,502.86 | -691,272,151.33 |
| 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 | 71,460,681.82 | 68,774,083.11 |
| Less: Balance of cash at year-begin | 49,370,080.20 | 190,494,225.94 |
| Add: Balance at year-end of cash equivalents | ||
| Less: Balance at year-begin of cash equivalents | ||
| Net increasing of cash and cash equivalents | 22,090,601.62 | -121,720,142.83 |
(2) Net cash paid for obtaining subsidiary in the Period
Unit: CNY/RMB
| Amount | |
| Including: | |
| Including: |
| Including: |
Other explanation
(3) Net cash received by disposing subsidiary in the Period
Unit: CNY/RMB
| Amount | |
| Including: | |
| Including: | |
| Including: |
Other explanation
(4) Constitution of cash and cash equivalent
Unit: CNY/RMB
| Item | Ending balance | Opening balance |
| I. Cash | 71,460,681.82 | 49,370,080.20 |
| Including: Cash on hand | 67,892.44 | 29,370.19 |
| Bank deposit available for payment at any time | 70,821,643.50 | 49,133,969.39 |
| Other monetary fund available for payment at any time | 571,145.88 | 206,740.62 |
| III. Balance of cash and cash equivalent at period-end | 71,460,681.82 | 49,370,080.20 |
Other explanation:
80. Notes of changes of owners’ equity
Explain the name and adjusted amount in “Other” at end of last period:
81. Assets with ownership or use right restricted
Unit: CNY/RMB
| Item | Ending book value | Reasons for restriction |
| Monetary fund | 1,000,000.00 | Guarantee deposit |
| Fix assets | 354,690,060.54 | According to the long-term loan mortgage contract signed by Dongguan Logistics, a subsidiary of the Company, with Shenzhen Branch of Agricultural Development Bank and Huizhou Zhongkai Sub-branch of HSBC, Dongguan Logistics has subordinate mortgaged the real estate property rights |
| of the structures of Yue (2020) Dongguan Property Right No. 0127118, Yue (2020) Dongguan Property Right No. 0127119, Yue (2020) Dongguan Property Right No. 0127120, and Yue (2020) Dongguan Property Right No.0119705 at No. 10, Jingang South Road, Machong Town, Dongguan City and other aground buildings as collateral for the loan. | ||
| Intangible assets | 34,607,208.17 | According to the long-term loan mortgage contract signed by Dongguan Logistics, a subsidiary of the Company, with Shenzhen Branch of Agricultural Development Bank and Huizhou Zhongkai Sub-branch of HSBC, Dongguan Logistics has subordinate mortgaged the real estate property rights of the structures of Yue (2020) Dongguan Property Right No. 0127118, Yue (2020) Dongguan Property Right No. 0127119, Yue (2020) Dongguan Property Right No. 0127120, and Yue (2020) Dongguan Property Right No.0119705 at No. 10, Jingang South Road, Machong Town, Dongguan City and other aground buildings as collateral for the loan. |
| Intangible assets | 32,555,832.71 | According to the loan contract Yue DG2017 NGDZ No. 006 signed by International Food, a subsidiary of the Company, with Bank of Communications Co., Ltd., Dongguan Branch, International Food has mortgaged its two pieces of land "DFGY (2009) DT No. 190" and "Yue (2020) Dongguan Real Estate Right No. 0321771" to the Bank of Communications Co., Ltd., Dongguan Branch as loan collateral. |
| Total | 422,853,101.42 |
Other explanation:
82. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: CNY/RMB
| Item | Ending foreign currency balance | Convert rate | Ending RMB balance converted |
| Monetary fund | 5,737,909.01 | ||
| Including: USD | 730,773.66 | 6.6889 | 4,888,071.93 |
| EURO | 97,084.20 | 6.9881 | 678,434.10 |
| HKD | 201,106.39 | 0.8523 | 171,402.98 |
| Account receivable | 3,342,927.74 | ||
| Including: USD | 471,883.03 | 6.6889 | 3,156,378.40 |
| EURO | |||
| HKD | 218,877.55 | 0.8523 | 186,549.34 |
| Long-term loans | |||
| Including: USD | |||
| EURO | |||
| HKD | |||
Other explanation:
(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 qualitativeand quantitative information for the arbitrage risks:
84. Government subsidy
(1) Government subsidy
Unit: CNY/RMB
| Category | Amount | Item | Amount reckoned into current gains/losses |
| Government subsidy related to assets | 87,080,932.92 | Deferred income | 6,048,603.76 |
| Government subsidy related to income | 1,416,882.82 | Other income | 1,416,882.82 |
| Government subsidy related to income | 84,111.74 | Non-operating income | 84,111.74 |
(2) Government subsidies rebate
□ Applicable √Not applicable
Other explanation
85. Other
VIII. Changes of consolidation range
1. Enterprise merger not under the same control
(1) Enterprise merger not under the same control
Unit: CNY/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
(2) Combination cost and goodwill
Unit: CNY/RMB
| Consolidation cost | |
| --Cash | |
| --Fair value of non-cash assets | |
| --Fair value of debts issued or assumed | |
| --Fair value of equity securities issued | |
| -- Fair value of contingent consideration | |
| --Fair value of the equity prior to the purchasing date | |
| --Other | |
| Total combination cost | |
| Less: shares of fair value of identifiable net assets acquired | |
| Goodwill/merger cost is less than the shares of fair value of identifiable net assets acquired |
Determination method for fair value of the combination cost and contingent consideration and changes:
Main reasons for large goodwill resulted:
Other explanation:
(3) Identifiable assets and liability on purchasing date under the acquiree
Unit: CNY/RMB
| Fair value on purchasing date | Book value on purchasing date | |
| Assets: | ||
| Monetary funds | ||
| Account receivable | ||
| Inventory | ||
| Fix assets | ||
| Intangible assets | ||
| Liability: | ||
| Loan | ||
| Account payable | ||
| Deferred tax liabilities | ||
| Net assets | ||
| Less: Minority interests | ||
| Net assets acquired | ||
Determination method for fair value of the identifiable assets and liabilities:
Contingent liability of the acquiree bear during combination:
Other explanation
(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 ofobtained control rights in the 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 rationally
(6) Other explanation
2. Combine under the same control
(1) Enterprise combined under the same control in the Period
Unit: CNY/RMB
| Acquiree | Equity ratio obtained in combination | Basis of combined under the same | Combination date | Standard to determine the combinatio | Income of the combined party from | Net profit of the combined party from | Income of the combined party | Net profit of the combined party |
| control | n date | period-begin of combination to the combination date | period-begin of combination to the combination date | during the comparison period | during the comparison period |
Other explanation
(2) Combination cost
Unit: CNY/RMB
| Consolidation cost | |
| --Cash | |
| -- Book value of non-cash assets | |
| - Book value of debts issued or assumed | |
| -- The face value of the equity securities issued | |
| --Contingent consideration |
Explanation on contingent consideration and its changes:
Other explanation:
(3) Book value of the assets and liability of the combined party on combination date
Unit: CNY/RMB
| Consolidation date | End of last period | |
| Assets: | ||
| Monetary funds | ||
| Account receivable | ||
| Inventory | ||
| Fix assets | ||
| Intangible assets | ||
| Liability: | ||
| Loan | ||
| Account payable | ||
| Net assets | ||
| Less: Minority interests | ||
| Net assets acquired | ||
Contingent liability of the combined party bear during combination:
Other explanation
3. Reverse purchase
Basic transaction information, basis of counter purchase, whether making up business due to the assets andliability reserved by listed company and basis, determination of combination cost, amount and calculation onadjusted equity by equity transaction:
4. Disposal Subsidiary
Whether there is a subsidiary disposal on one time, which is loss control of rights
□Yes √No
Whether there is a subsidiary disposal by steps through multiple trading and loss control of rights in the period
□Yes √No
5. Other reasons for consolidation range changed
Consolidation scope changes caused by other reasons (eg, newly establish subsidiaries, liquidate subsidiaries, etc.)and the related circumstances:
In the reporting period, subsidiary Shenzhen Shenbao Technology Center Co., Ltd was consolidated by subsidiaryShenbao Huacheng, new enterprise established including Zhenping Market Operation Tech. Co., Ltd. andShenliang Hongli Grain & Oil (Shenzhen) Co., Ltd.
6. Other
IX. Equity in other entity
1. Equity in subsidiary
(1) Constitute of enterprise group
| Subsidiary | Main place of operation | Registration place | Business nature | Share-holding ratio | Acquired way | |
| Directly | Indirectly | |||||
| SZCG | Shenzhen City | Shenzhen City | Grain & oil trading | 100.00% | Combine under the same control | |
| Hualian Grain & Oil | Shenzhen City | Shenzhen City | Grain & oil trading | 100.00% | Combine under the same control | |
| Shenzhen Flour | Shenzhen City | Shenzhen City | Flour processing | 100.00% | Combine under the same control | |
| Shenliang Quality Inspection | Shenzhen City | Shenzhen City | Inspection | 100.00% | Combine under the same control | |
| Hainan Grain and Oil | Haikou City | Haikou City | Feed production | 100.00% | Combine under the same control | |
| Doximi | Shenzhen City | Shenzhen City | E-commerce | 100.00% | Combine under the same control | |
| Big Kitchen | Shenzhen City | Shenzhen City | Sales and processing of grain ,oil and products | 70.00% | Combine under the same control | |
| Yingkou Storage | Yingkou City | Yingkou City | Storage | 100.00% | Combine under the same control | |
| Cold-Chain Logistic | Shenzhen City | Shenzhen City | Fresh food management on-line | 100.00% | Combine under the same control | |
| Shenliang Property | Shenzhen City | Shenzhen City | Real estate development and property management | 100.00% | Combine under the same control | |
| International Food | Dongguan City | Dongguan City | Port operation, food production | 100.00% | Combine under the same control | |
| Dongguan Grain and Oil | Dongguan City | Dongguan City | Food production | 100.00% | Combine under the same control | |
| Dongguan Logistics | Dongguan City | Dongguan City | Storage, logistics | 49.00% | 51.00% | Combine under the same control |
| Shuangyashan | Shuangyashan City | Shuangyashan City | Construction of food base and development of related complementary facility | 51.00% | Combine under the same control | |
| Shenliang Hongjun | Shenzhen City | Shenzhen City | Catering | 51.00% | Establishment | |
| Dongguan Hualian | Dongguan City | Dongguan City | Grain and oil trade | 100.00% | Establishment | |
| Shenliang Property | Shenzhen City | Shenzhen City | Property management | 100.00% | Establishment | |
| Shenbao Huacheng | Shenzhen City | Shenzhen City | Manufacturing | 100.00% | Establishment | |
| Wuyuan | Shangrao City | Shangrao City | Manufacturing | 100.00% | Establishment |
| Jufangyong | ||||||
| Huizhou Shenbao | Huizhou City | Huizhou City | Comprehensive | 100.00% | Establishment | |
| Shenbao Investment | Shenzhen City | Shenzhen City | Investment management | 100.00% | Establishment | |
| Shenbao Tea Culture | Shenzhen City | Shenzhen City | Commercial trade | 100.00% | Establishment | |
| Ju Fang Yong Trading | Hangzhou City | Hangzhou City | Wholesale business | 60.00% | Establishment | |
| Ju Fang Yong Holding | Hangzhou City | Hangzhou City | Comprehensive | 100.00% | Establishment | |
| Fuhaitang Catering | Hangzhou City | Hangzhou City | Catering industry | 100.00% | Establishment | |
| Fuhaitang Ecological | Hangzhou City | Hangzhou City | Tea planting, production and sales | 100.00% | Combine not under the same control | |
| Shenbao Rock Tea | Wuyishan City | Wuyishan City | Manufacturing | 100.00% | Establishment | |
| Pu'er Tea Supply Chain | Pu’er City | Pu’er City | Wholesale business | 100.00% | Establishment | |
| Pu’er Tea Trading Center | Pu’er City | Pu’er City | Service industry | 55.00% | Establishment | |
| Shenliang Food | Huizhou City | Shenzhen City | Manufacturing | 100.00% | Establishment | |
| Huizhou Shenliang Food | Huizhou City | Huizhou City | Wholesale business | 100.00% | Establishment | |
| Zhenpin Market | Shenzhen City | Shenzhen City | Platform construction, promotion and operation | 51.00% | Establishment | |
| Shenbao Industry & Trade | Huizhou City | Shenzhen City | Wholesale business | 100.00% | Establishment | |
| Wuhan Jiacheng | Wuhan City | Wuhan City | Food production | 51.00% | Combine not under the same control | |
| Hubei Jiacheng | Wuhan City | Wuhan City | Food production | 51.00% | Combine not under the same control | |
| Wuhan Hongqu | Wuhan City | Wuhan City | Food production | 51.00% | Combine not under the same control | |
| Macheng Jingtian | Macheng City | Macheng City | Food production | 51.00% | Combine not under the same control |
| Hongli Grain and Oil | Shenzhen City | Shenzhen City | Investment management | 100.00% | Establishment |
Explanation on share-holding ratio in subsidiary different from ratio of voting right:
Basis for controlling the invested entity with half or below voting rights held and without controlling investedentity but with over half and over voting rights:
Major structured entity included in consolidates statement:
Basis of termination of agent or consignor:：
Other explanation:
(2) Important non-wholly-owned subsidiary
Unit: CNY/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 |
| Big Kitchen | 30.00% | 744,634.71 | 5,072,663.05 |
Explanation on holding ratio different from the voting right ratio for minority shareholders:
Other explanation：
(3) Main finance of the important non-wholly-owned subsidiary
Unit: CNY/RMB
| Subsidiary | Ending balance | Opening balance | ||||||||||
| Current assets | Non current assets | Total assets | Current liabilities | Non current liabilities | Total liabilities | Current assets | Non current assets | Total assets | Current liabilities | Non current liabilities | Total liabilities | |
| Big Kitchen | 177,713,127.91 | 4,938,971.57 | 182,652,099.48 | 164,463,970.63 | 1,279,252.02 | 165,743,222.65 | 159,526,005.38 | 5,490,342.50 | 165,016,347.88 | 149,310,334.72 | 1,279,252.02 | 150,589,586.74 |
Unit: CNY/RMB
| Subsidiary | Current Period | Last Period | ||||||
| Operating revenue | Net profit | Total comprehensive income | Cash flow from operation activity | Operating revenue | Net profit | Total comprehensive income | Cash flow from operation activity | |
| Big Kitchen | 129,580,965.22 | 2,482,115.69 | 2,482,115.69 | -45,524.08 | 155,498,647.91 | 460,798.48 | 460,798.48 | 5,975,836.68 |
Other explanation
(4) Significant restrictions on the use of enterprise group assets and pay off debts of the enterprise group
(5) Financial or other supporting offers to the structured entity included in consolidated financialstatementOther explanation
2. Transaction that has owners equity shares changed in subsidiary but still with controlling rights
(1) Owners equity shares changed in subsidiary
(2) Impact on minority’s interest and owners’ equity attributable to parent company
Unit: CNY/RMB
| Purchase cost/disposal consideration | |
| --Cash | |
| --Fair value of non-cash assets | |
| Purchase cost/total disposal consideration | |
| Less: Subsidiary's share of net assets calculated based on the proportion of acquired/disposed equity | |
| Difference | |
| Including: Adjust the capital reserve | |
| Adjusted surplus reserve | |
| Adjusted undistributed profit |
Other explanation
3. Equity in joint venture and associated enterprise
(1) Important joint venture or associated enterprise
| Joint venture/Associated enterprise | Main place of operation | Registration place | Business nature | Share-holding ratio | Accounting treatment on investment for joint venture and associated enterprise | |
| Directly | Indirectly | |||||
| Zhuhai Hengxing Feed Industrial Co., Ltd. | Zhuhai | Zhuhai | Aquatic fee and animal fee | 40.00% | Equity method | |
| Shenliang Intelligent Wulian Equity | Shenzhen | Shenzhen | Equity investment; investment | 49.02% | Equity method | |
| Investment Fund (Shenzhen) Partnership Enterprise (Limited) | consultant |
Description of the percentage of shareholding in joint ventures or associates different from the percentage ofvoting rights:
Has major influence with less 20% voting rights hold, or has minor influence with over 20% (20% included)voting rights hold:
(2) Main financial information of the important joint venture
Unit: CNY/RMB
| Ending balance/Current Period | Opening balance/Last Period | |
| Current assets | ||
| Including: cash and cash equivalent | ||
| Non current assets | ||
| Total assets | ||
| Current liabilities | ||
| Non current liabilities | ||
| Total liabilities | ||
| Minority's interest | ||
| Shareholders' equity attributable to the parent company | ||
| Share of net assets calculated by shareholding ratio | ||
| Adjustment items | ||
| --Goodwill | ||
| --Unrealized profit of internal trading | ||
| -- Other | ||
| Book value of equity investment in joint venture | ||
| Fair value of the equity investment of joint ventures with public offers concerned | ||
| Operating income | ||
| Financial expenses | ||
| Income tax expenses | ||
| Net profit | ||
| Net profit of discontinuing operation | ||
| Other comprehensive income | ||
| Total comprehensive income |
| Dividends received from joint venture in the year |
Other explanation
(3) Main financial information of the important associated enterprise
Unit: CNY/RMB
| Ending balance/Current Period | Opening balance/Last Period | |||
| Zhuhai Hengxing Feed Industry Co., Ltd. | Shenliang Intelligent Wulian Equity Investment Fund (Shenzhen) Partnership Enterprise (Limited) | Zhuhai Hengxing Feed Industry Co., Ltd. | Shenliang Intelligent Wulian Equity Investment Fund (Shenzhen) Partnership Enterprise (Limited) | |
| Current assets | 210,390,264.04 | 20,304,410.64 | 109,747,137.54 | 20,142,644.00 |
| Non current assets | 25,644,502.33 | 36,755,628.56 | 26,046,337.28 | 36,989,582.89 |
| Total assets | 236,034,766.37 | 57,060,039.20 | 135,793,474.82 | 57,132,226.89 |
| Current liabilities | 160,829,908.06 | 510,000.00 | 56,918,240.71 | |
| Non current liabilities | 399,384.69 | 445,371.69 | ||
| Total liabilities | 161,229,292.75 | 510,000.00 | 57,363,612.40 | |
| Minority's interest | ||||
| Equity attributable to shareholder of parent company | 74,805,473.62 | 56,550,039.20 | 78,429,862.42 | 57,132,226.89 |
| Share of net assets measured by shareholding | 29,922,189.45 | 27,720,829.22 | 31,371,944.97 | 28,006,217.62 |
| Adjustment | 1,393,125.18 | 3,637.49 | 162,707.80 | -174.47 |
| --Goodwill | ||||
| --Unrealized profit of internal trading | ||||
| -- Other | 1,393,125.18 | 3,637.49 | 162,707.80 | -174.47 |
| Book value of equity investment in associated enterprise | 31,315,314.63 | 27,724,466.71 | 31,534,652.77 | 28,006,043.15 |
| Fair value of the equity investment of associated enterprise with public offers concerned | ||||
| Operating income | 348,236,616.85 | 342,054,335.50 | ||
| Net profit | -548,345.35 | -574,411.34 | 1,430,282.78 | -223,409.89 |
| Net profit of | ||||
| discontinuing operation | ||||
| Other comprehensive income | ||||
| Total comprehensive income | -548,345.35 | -574,411.34 | 1,430,282.78 | -223,409.89 |
| Dividends received from associated enterprise in the year |
Other explanation
(4) Financial summary for non-important Joint venture and associated enterprise
Unit: CNY/RMB
| Ending balance/Current Period | Opening balance/Last Period | |
| Joint venture: | ||
| Amount based on share-holding ratio | ||
| Associated enterprise: | ||
| Total book value of investment | 13,915,582.16 | 13,949,747.57 |
| Amount based on share-holding ratio | ||
| --Net profit | -34,165.41 | 224,696.61 |
| --Total comprehensive income | -34,165.41 | 224,696.61 |
Other explanation
(5) Major limitation on capital transfer ability to the Company from joint venture or associatedenterprise
(6) Excess loss occurred in joint venture or associated enterprise
Unit: CNY/RMB
| Joint venture/Associated enterprise | Cumulative un-recognized losses | Un-recognized losses not recognized in the Period (or net profit enjoyed in the Period) | Cumulative un-recognized losses at period-end |
| Changzhou Shenbao Chacang E-business Co., ltd. | 9,515,140.28 | 9,515,140.28 | |
| Shenzhen Shichumingmen Catering Management Co., Ltd. | 4,815,325.70 | 4,815,325.70 |
Other explanation
(7) Unconfirmed commitment with joint venture investment concerned
(8) Intangible liability with joint venture or affiliates investment concerned
4. Major conduct joint operation
| Name | Main place of operation | Registration place | Business nature | Shareholding ratio/ shares enjoyed | |
| Directly | In-directly | ||||
Share-holding ratio or shares enjoyed different from voting right ratio:
If the co-runs entity is the separate entity, basis of the co-runs classification:
Other explanation
5. Structured body excluding in consolidate financial statement
Explanation:
6. Other
X. Disclosure of risks relating to financial instrumentsOur business operation makes the Company exposed to various financial risks: credit risk, liquidity risk andmarket risk (mainly refers to exchange rate risk, interest risk and other price risk).The Company disperses the risk of financial instruments through appropriate diversified investment and businessportfolio, and reduces the risk concentrating on a single industry, specific region or specific counter party byformulating corresponding risk management policies.
1. Credit risk
Credit risk refers to the risk of a financial loss caused by the counter party’s failure to fulfill its contractualobligations.Credit risks of the Company arises mainly from monetary funds, note receivable, account receivable, otherreceivable, debt investments, financial guarantee contracts , the debt instrument investments measured at fairvalue and with its variation reckoned in current gain/loss that are not included in the scope of impairmentassessment and derivative financial assets, etc. As at the balance sheet date, the carrying value of the financialassets represented its maximum exposure to credit risk;
Monetary funds of the Company are mainly the bank deposits placed with reputable state-owned banks and otherlarger and medium-sized listed banks with high credit ratings, we believes that it is not exposed to significantcredit risks and will hardly incur significant losses due to the bank defaults.
Furthermore, for bill receivable, account receivables and other account receivables, the Company establishesrelevant policies to control exposure of credit risk. The Company appraises customers’ credit quality based ontheir financial position, possibility to obtain guarantee from third parties, credit history and other factors such as
prevailing market conditions, and set corresponding credit terms. Customers’ credit history would be regularlymonitored by the Company. For those customers who have bad credit history, the Company will call collection inwritten form, shorten credit term or cancel credit term to ensure its overall credit risk is under control.
As of 30 June 2022, the account receivable from top five customers accounted for 23.14% of the Company’s totalaccount receivable.
The maximum credit risk exposure equals to the carrying value of each financial asset in balance sheet (includingderivative financial instrument). The Company has not provided any guarantee which would otherwise make theCompany exposed to credit risk except for the financial guarantee carried in Note “X. Related party and relatedtransaction”
2. Liquidity risk
Liquidity risk refers to the risk that a company will run short of funds to meet its obligations settled by deliveringcash or other financial assets.
It is the Company’s policy to ensure that sufficient cash is available to meet debt obligations as they fall due.Liquidity risk is centrally controlled by the Company’s finance department. By monitoring cash balances, readilyrealizable marketable securities, and rolling forecasts of cash flows for the next 12 months, the finance departmentensures that the company has sufficient funds to service its debts under all reasonable forecasts. In addition, itcontinues to monitor whether borrowing agreement is complied with, and seeks for commitment from majorfinancial institutions for provision of sufficient back-up fund, so as to satisfy capital requirement in a short andlong term.
3. Market risk
The market risk of financial instruments refers to the risk that the fair value or future cash flows of financialinstruments will fluctuate due to changes in market prices, including exchange rate risk, interest rate risk and otherprice risks.
(1) Interest risk
Interest rate risk refers to the risk that the fair value or future cash flows of financial instruments will fluctuate dueto changes in market interest rates.
Interest-bearing financial instruments with fixed rates and floating rates expose the Company to fair value interestrate risk and cash flow interest rate risk, respectively. The Company determines the ratio of fixed interest rateinstruments to floating interest rate instruments according to the market environment, and maintains anappropriate portfolio of fixed and floating interest rate instruments through regular review and monitoring. Whennecessary, the Company will use interest rate swap instruments to hedge interest rate risk.
(2) Exchange rate risk
Exchange rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due tothe changes in foreign exchange rates.
The Company continuously monitors the foreign currency transactions and the scale of foreign currency assetsand liabilities to minimize foreign exchange risks. In addition, the company may also sign forward foreignexchange contracts or currency swap contracts to avoid exchange rate risks. During the current period and theprevious period, the Company did not sign any forward foreign exchange contracts or currency swap contracts.
(3) Other price risk
Other price risk refers to the risk that the fair value or future cash flow of financial instruments will fluctuate dueto changes in market prices other than exchange rate risk and interest rate risk.Other price risk of the Company arises mainly from investment in various types of equity instruments and isexposed to the risks of changes in the prices of equity instruments.XI. Disclosure of fair value
1. Ending fair value of the assets and liabilities measured by fair value
Unit: CNY/RMB
| Item | Ending fair value | |||
| First-order | Second-order | Third-order | Total | |
| I. Sustaining measured by fair value | -- | -- | -- | -- |
| (i) Trading financial assets | 1,142,988.73 | 71,205,396.28 | 72,348,385.01 | |
| 1.Financial assets measured by fair value and with variation reckoned into current gains/losses | 1,142,988.73 | 71,205,396.28 | 72,348,385.01 | |
| (2) Equity instrument investment | 1,142,988.73 | 1,142,988.73 | ||
| (2) Other | 71,205,396.28 | 71,205,396.28 | ||
| Total assets continuously measured at fair value | 81,142,988.73 | 71,262,896.28 | 152,405,885.01 | |
| II. Non-persistent measure | -- | -- | -- | -- |
2. Recognized basis for the market price sustaining and non-persistent measured by fair value on first-order
3. Valuation technique and qualitative and quantitative information on major parameters for the fairvalue measure sustaining and non-persistent on second-order
4. Valuation technique and qualitative and quantitative information on major parameters for the fairvalue measure sustaining and non-persistent on third-order
5. Adjustment information and sensitivity analysis of unobservable parameters for the fair value measuresustaining and non-persistent on third-order
6. Sustaining items measured by fair value, as for the conversion between at all levels, reasons forconversion and policy for conversion time point
7. Changes of valuation technique in the Period
8. Financial assets and liability not measured by fair value
9. Other
XII. Related party and related transactions
1. Parent company
| Parent company | Registration place | Business nature | Registered capital | Ratio of shareholding on the Company | Ratio of voting right on the Company |
| Shenzhen Food Materials Group Co., Ltd | Shenzhen | Investing in industry, development, operation and management of the own property | 5000 million Yuan | 63.79% | 63.79% |
Explanation on parent company of the enterpriseUltimate controller of the Enterprise is Shenzhen Municipal People’s Government State-owned AssetsSupervision & Administration Commission。Other explanation:
2. Subsidiary
Subsidiary of the Company found more in Note IX-Equity in other entity
3. Joint venture and associated enterprise
Important joint venture and associated enterprise of the Company found more in the in Note V-22- Long-termequity investmentOther cooperative enterprise and joint venture that have related transaction with the Company in the Period oroccurred in previous period:
| Joint venture/Associated enterprise | Relationship with the Enterprise |
Other explanation
4. Other related party
| Other related party | Relationship with the Enterprise |
| Shenzhen Agricultural Products Group Co., Ltd | Holding subsidiary of parent company |
| Shenzhen Shenliang Cold Transport Co., Ltd. | Holding subsidiaries of the Company's associates |
| Shenzhen Investment Holdings Co., Ltd. | Former shareholder of the Company, Controlled by the same ultimate controlling party |
| Shenzhen Investment Management Co., Ltd. | Former shareholder of the Company, Controlled by the same ultimate controlling party |
| Yao Jicheng | Minority shareholder of controlling subsidiary |
| Zhanjiang Haitian Aquatic Feed Co., Ltd. | Subsidiary of the shareholders of the Company, Controlled by the same ultimate controlling party |
| Shenzhen Higreen International Agricultural Products Logistic Management Co., Ltd | Holding subsidiary of parent company |
| Huizhou Higreen Agricultural Products International Logistics Co., Ltd. | Holding subsidiary of parent company |
| Guangxi Higreen Agricultural Products International Logistics Co., Ltd. | Holding subsidiary of parent company |
| Shenzhen Shennong Kitchen Co., Ltd | Holding subsidiary of parent company |
| Shenzhen Zhenchu Supply Chain Co., Ltd. | Holding subsidiary of parent company |
| Shenzhen Medical Materials Co., Ltd. | Holding subsidiary of parent company |
| Shenzhen Shennong Land Co., Ltd. | Holding subsidiary of parent company |
| Zhanjiang Changshan (Shenzhen) Ecological Aquaculture Co., Ltd | Wholly-owned subsidiary of parent company |
Other explanation
5. Related transaction
(1) Goods purchasing, labor service providing and receiving
Goods purchasing/labor service receiving
Unit: CNY/RMB
| Related party | Related transaction content | Current Period | Approved transaction limit | Whether more than the transaction limit (Y/N) | Last Period |
| Shenzhen Shenliang Cold Transport Co., Ltd. | Warehousing Services/Transportation services | 114,204.50 | 114,204.50 | Y | 25,982.95 |
| Shenzhen Shenyuan Data Technology Co., ltd. | Information software development | 1,332,904.42 | 1,332,904.42 | Y | 18,675,417.45 |
| Shenzhen Food Materials Group Co., Ltd | Management service fee | 20,809.52 |
Goods sold/labor service providing
Unit: CNY/RMB
| Related party | Related transaction content | Current period | Last period |
| Shenzhen Duoxi Equity Investment Fund Management Co., Ltd. | Grain and oil sales, tea sales, cleaning services | 18,984.00 | 11,320.74 |
| Shenzhen Agricultural Products Group Co., Ltd | Grain and oil sales | 13,870.00 | |
| Shenzhen Shenliang Cold Transport Co., Ltd. | Grain and oil sales, warehousing services, tea sales | 5,046.48 | 125,643.48 |
| Shenzhen Shennong Kitchen Co., Ltd | Grain and oil sales, tea sales | 555,498.00 | 251,262.00 |
| Shenzhen Shenyuan Data Tech. Co., Ltd | Grain and oil sales | 20,080.40 | |
| Shenzhen Food Materials Group Co., Ltd | Grain and oil sales, asset management, tea sales | 1,465,053.67 | 62,894.66 |
| Shenzhen Zhenchu Supply Chain Co., Ltd. | Grain and oil sales, transportation services | 11,179,507.33 |
Explanation on goods purchasing, labor service providing and receiving
(2) Related trusteeship management/contract & entrust management/ outsourcingTrusteeship management/contract:
Unit: CNY/RMB
| Client/Contract-out party | Entrusting party/Contractor | Trustee/assets contract | Trustee /start | Trustee /ends | Managed earnings /pricing of the contract earnings | Managed earnings confirmed in the period / contract earnings |
Related managed/contract:
Entrusted management/outsourcing:
Unit: CNY/RMB
| Client/Contract-out party | Entrusting party/Contractor | Trustee/assets contract | Trustee /start | Trustee /ends | Managed earnings /pricing of the contract earnings | Managed earnings confirmed in the period / contract earnings |
Related management/ outsourcing:
(3) Related lease
As a lessor for the Company:
Unit: CNY/RMB
| Lessee | Assets type | Lease income recognized in the Period | Lease income recognized last Period |
| Shenzhen Shenyuan Data Tech. Co., Ltd | Operating site | 275,094.00 | |
| Shenzhen Duoxi Equity Investment Fund Management Co., Ltd. | Office space | 135,996.00 |
As lessee:
Unit: CNY/RMB
| Lessor | Assets type | rental cost for short-term leases and low-value assets leases with simplified processing (if applicable) | Variable lease payment not included in the measurement of leasing liability (if applicable) | Rental paid | Interest expenses assumed on lease liability | Right-of-use assets increased | |||||
| Current Period | Last Period | Current Period | Last Period | Current Period | Last Period | Current Period | Last Period | Current Period | Last Period | ||
Explanation on related lease
(4) Related guarantee
As guarantor
Unit: CNY/RMB
| Secured party | Guarantee amount | Guarantee start date | Guarantee expiry date | Whether the guarantee has been fulfilled |
| Changzhou Shenbao Chacang E-business Co., ltd. | 3,500,000.00 | December 20, 2011 | No |
As secured party
Unit: CNY/RMB
| Guarantor | Guarantee amount | Guarantee start date | Guarantee expiry date | Whether the guarantee |
has been fulfilled
Explanation on related guarantee
(5) Related party’s borrowed funds
Unit: CNY/RMB
| Related party | Borrowing amount | Starting date | Maturity date | Note |
| Borrowing | ||||
| Lending | ||||
(6) Related party’s assets transfer and debt reorganization
Unit: CNY/RMB
| Related party | Related transaction content | Current Period | Last Period |
(7) Remuneration of key manager
Unit: CNY/RMB
| Item | Current Period | Last Period |
(8) Other related transaction
6. Receivable and payable of related party
(1) Receivable item
Unit: CNY/RMB
| Item | Related party | Ending balance | Opening balance | ||
| Book balance | Bad debt provision | Book balance | Bad debt provision | ||
| Account receivable | |||||
| Shenzhen Shenliang Cold Transport Co., Ltd. | 104,263.95 | 1,149.36 | 116,476.25 | 1,149.36 | |
| Shenzhen Shennong Kitchen Co., Ltd | 143,430.00 | 1,152.08 | 115,208.00 | 1,152.08 | |
| Shenzhen Food Materials Group Co., Ltd | 19,856.00 | 286.32 | 28,632.00 | 286.32 | |
| Shenzhen Agricultural Products Group Co., Ltd | 2,790.00 | ||||
| Guangxi Higreen Agricultural Products International Logistics Co., Ltd. | 18,624.00 | 186.24 | |||
| Huizhou Higreen Agricultural Products International Logistics Co., Ltd. | 18,624.00 | 37,248.00 | 372.48 | ||
| Shenzhen Shennong Land Co., Ltd. | 14,744.00 | 147.44 | |||
| Shenzhen Medical Materials Co., Ltd. | 2,328.00 | 23.28 | |||
| Shenzhen Zhenchu Supply Chain Co., Ltd. | 4,795,268.91 | 58,748.80 | 5,874,880.36 | 58,748.80 | |
| Shenzhen Shenyuan Data Tech. Co., Ltd | 5,940.00 | 59.40 | |||
| Other account receivable | |||||
| Shenzhen Shenliang Cold Transport Co., Ltd. | 10,000.00 | ||||
| Shenzhen Higreen International Agricultural Products Logistic Management Co., Ltd | 50,000.00 | 50,000.00 | |||
| Zhanjiang Changshan (Shenzhen) Ecological Aquaculture Co., Ltd | 5,520.00 | 5,520.00 | 5,520.00 | 5,520.00 | |
| Shenzhen Shenyuan Data Tech. Co., Ltd | 57,000.00 | 300.00 | 30,000.00 | 300.00 | |
| Changzhou Shenbao Chacang E-business Co., | 24,608,742.46 | 22,187,644.18 | 24,608,742.46 | 22,187,644.18 |
| ltd. | |||||
| Shenzhen Shichumingmen Catering Management Co., Ltd. | 2,092,477.67 | 990,192.72 | 2,092,477.67 | 990,192.72 | |
| Shenzhen Investment Holdings Co., Ltd. | 415,644.52 | 415,644.52 | |||
| Shenzhen Food Materials Group Co., Ltd | 1,001,000.00 | 1,000.00 | |||
| Yao Jicheng | 46,985.88 | 480.00 | 48,000.00 | 480.00 |
(2) Payable item
Unit: CNY/RMB
| Item | Related party | Ending book balance | Opening book balance |
| Dividend payable | |||
| Shenzhen Investment Management Co., Ltd. | 2,690,970.14 | 2,690,970.14 | |
| Accounts payable | |||
| Shenzhen Shenyuan Data Tech. Co., Ltd | 485,080.53 | ||
| Other account payable | |||
| Shenzhen Shenliang Cold Transport Co., Ltd. | 2,790.00 | 102,790.00 | |
| Shenzhen Food Materials Group Co., Ltd | 146,173,941.72 | 146,162,941.72 | |
| Zhanjiang Changshan (Shenzhen) Ecological Aquaculture Co., Ltd | 8,030,954.17 | ||
| Shenzhen Duoxi Equity Investment Fund Management Co., Ltd. | 41,486.00 | ||
| Shenzhen Shichumingmen Catering Management Co., Ltd. | 209,275.00 | ||
| Shenzhen Investment Management Co., Ltd. | 3,510,297.20 | ||
| Shenzhen Shenyuan Data Tech. Co., Ltd | 561,200.00 | 2,000,330.53 | |
| Zhanjiang Haitian Aquatic Feed Co., Ltd. | 20,000.00 |
7. Related party commitment
8. Other
XIII. Share-based payment
1. Overall situation of 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. Modification and termination of share-based payment
Nil
5. Other
XIV. Commitment or contingency
1. Important commitments
Important commitments on balance sheet dateThe Company has no important commitments that need to disclosed up to 30 June 2022.
2. Contingency
(1) Contingency on balance sheet date
1.1 Lawsuits
(1) The sales and purchase contract disput between Hualian Company and Zhuhai Doumen Huabi Trading Co.,Ltd
Concerning the Hualian Company (plaintiff) bring a suit against Zhuhai Huabi (defendant), the People’s Court ofShenzhen Luohu District has made the first instance effective judgment in 2007: 1. The defendant should repaythe plaintiff payment for goods of 2,396,300 yuan; 2. The defendant should pay the plaintiff liquidated damages of239,600 yuan; 3. Court acceptance fee of 33,200 yuan should be borne by the defendant.In 2005, Zhuhai Huabi stopped production and its legal representative was arrested by the public security organs.
It was found that Zhuhai Huabi had been cancelled.As of the date of the audit report, Hualian Company has set aside 100.00% of bad debt reserves for the receivablesof 2,396,300 yuan from Zhuhai Huabi.
(2) Disputes over import agency contract among SZCG, Hualian Company and Guangzhou Jinhe Feed Co., Ltd.,Huang XianningIn the case of the plaintiff SZCG and Hualian Company versus the defendant Guangzhou Jinhe and HuangXianning over the import and export agency contract disputes, the Futian District People’s Court made the first-instance judgment in 2015: 1. The defendant Guangzhou Jinhe should pay a total of 10,237,400 yuan to SZCGand Hualian Company within 10 days from the effective date of the judgment; 2. If it fails to perform itspecuniary obligations within the period specified by the judgment, it shall pay double the interest on the debt forthe delayed in performance in accordance with Article 253 of the Civil Procedure Law of the People’s Republic ofChina; 3. The case acceptance fee of 83,200 yuan shall be borne by Guangzhou Jinhe.
As Guangzhou Jinhe dissatisfied with the above-mentioned first-instance judgment, it appealed to the ShenzhenIntermediate People's Court. On March 30, 2017, the Shenzhen Intermediate People's Court issued a second-instance judgment, which rejected the appeal of Guangzhou Jinhe and upheld the original judgment. Subsequently,SZCG and Hualian Company applied to the Court of first instance for the enforcement.
As of the date of the audit report, the case is currently still being executed, and the other party has not paid anymoney. SZCG has made a provision for bad debts at a rate of 100.00% for the receivable payment of 10,455,600yuan from Guangzhou Jinhe.
According to the "Letter of Commitment from Shenzhen Fude State Capital Operation Co., Ltd. on the PendingLitigation of Shenzhen Cereals Group Co., Ltd.", Shenzhen Fude State Capital Operation Co., Ltd. (now renamedShenzhen Food Materials Group Co., Ltd.) will bear the compensation or losses caused by the lawsuit on itsbehalf for any claims, compensation, losses or expenditures caused by the disputes over import agency contractamong SZCG and its holding subsidiaries with Guangzhou Jinhe and Huang Xianning.
(3) Contract disputes between Hualian Company and Foshan Shunde Huaxing Feed FactoryIn August and October 2007, Hualian Company sold products to Huaxing Feed Factory and received commercialacceptance bills totaling 2,958,600 yuan. Due to the company’s failure to repay the overdue payment, HualianCompany filed a lawsuit with the Shunde District People’s Court of Foshan City on October 29, 2007, requestingHuaxing Feed Factory to repay the payment and pay the corresponding interest. From June to July 2011, a total of1,638,900 yuan of the company’s bankruptcy assets was recovered. As of the date of the audit report, HualianCompany had a receivable payment of 1,319,700 yuan from Huaxing Feed Factory. This amount has beenwithdrawn bad debt reserves by 100.00%.
(4) Mung bean business disputes between SZCG and Jilin Tongyu County Shengda CompanyOn August 26, 2010, the Shenzhen Futian District People’s Court accepted the case of the plaintiff SZCG versusthe defendant Shengda Company over an entrustment contract dispute. Upon mediation, both parties reached amediation agreement voluntarily: 1. It’s confirmed that the defendant Shengda Company still owes the plaintiffSZCG the repurchase payment of 7.492 million yuan and the repurchase payment interest of 2.8 million yuanbefore September 3, 2009. 2. The defendant Shengda Company should pay the first installment of 1 million yuanto the plaintiff SZCG before October 30, 2010, and should pay 1 million yuan at the end of each month fromNovember 2010 to March 2011, and should pay 492,000 yuan before the end of April. 2011, totaling 6,492,000yuan. 3. If the defendant Shengda Company can pay the above amount in full and on schedule, it does not need topay the remaining principal of 1 million yuan and the interest of 2.8 million yuan. If any of the above sums are notpaid in full and on schedule, the plaintiff may apply to the court for enforcement of all the claims set out in thefirst item above.
After the mediation agreement came into effect, Shengda Company did not fully fulfill its repayment obligations,and SZCG has applied for compulsory execution. As of the date of the audit report, the book receivablesamounted to 5,602,500 yuan, and the execution of the remaining amounts was highly uncertain, the Company hasfully made provisions for bad debts of 5,602,500 yuan for this payment.
(5) Contract disputes of the Company’s subsidiaries, Shenbao Rock Tea, Jufangyong Holdings, Mount WuyiJiuxing Tea Co., Ltd., Fujian Wuyishan Yuxing Tea Co., Ltd., Xingjiu Tea Co., Ltd., and Chen Yuxing, ChenGuopeng
On December 3, 2018, due to the separation contract dispute, based on the arbitration clause in the originalFormal Agreement Regarding the Separation of Fujian Wuyishan Shenbao Yuxing Tea Co., Ltd., the arbitrationapplicants Shenbao Rock Tea and Jufangyong Holdings filed an arbitration with the Shenzhen Court ofInternational Arbitration with Jiuxing Company, Yuxing Company, Xingjiu Tea Co., Ltd., Chen Yuxing, andChen Guopeng as the respondents, requesting: 1. To rule that the respondent Jiujiuxing Company should pay5,272,900 yuan and liquidated damages of 1,581,900 yuan to the applicant Shenbao Rock Tea, totaling 6,854,800yuan; 2. To rule that the respondents Yuxing Company, Xingjiu Company, Chen Yuxing, and Chen Guopengshall be jointly and severally liable for the above-mentioned receivables and liquidated damages to the applicantRock Tea; 3. To rule that the respondent Yijiuxing Company shall pledge 19 designated trademarks to theapplicant Jufangyong Holdings, and cooperate with the corresponding registration procedures for trademarkpledge; 4. To rule that all the respondents shall bear the attorney’s fee of 190,000 yuan paid by the applicant forthis case, the preservation fee and other expenses incurred in this arbitration (the applicant reserves the right topursue the remaining attorney’s fees); 5. To rule that the respondents shall bear all arbitration fees in this case.On April 18, 2019, the Shenzhen Court of International Arbitration held a hearing for the arbitration case. On May20, 2021, the Shenzhen Court of International Arbitration issued a ruling that: 1. Wuyishan Jiuxing Tea Co., Ltd.should compensate Jufangyong Company and Shenbao Rock Tea Company for losses of receivables and
liquidated damages of 4,798,369.95 yuan; 2. Fujian Wuyishan Yuxing Tea Co., Ltd., Xingjiu Tea Co., Ltd., ChenYuxing, and Chen Guopeng shall be jointly and severally liable for the above payment obligations of WuyishanJiuxing Tea Co., Ltd.; 3. The arbitration fee in this case of 104,953 yuan shall be paid by the five respondents tothe two applicants; 4. Two arbitrators’ expenses of 4,000 yuan shall be paid directly by the five respondents to thetwo applicants.
After the arbitration award came into effect, because the respondents refused to repay, the applicants applied tothe court for enforcement. On August 5, 2021, the two parties signed an enforcement of settlement agreement.The respondents should pay receivables, liquidated damages, attorney’s fees, and arbitration fees to the applicants,totaling 5,097,322.95 yuan, payment shall be made in 18 installments, with the respondents paying 1.6 millionyuan in the first installment and paying 200,000 yuan per month thereafter, and the final payment is 297,322.95yuan (i.e., the payment will be completed before January 31, 2023).As of the date of the audit report, the applicants received a total of 3.8 million yuan.
(6) Sales contract disputes between Hualian Company and Dalian Liangshuntong Supply Chain Management Co.,Ltd.
1) In the case of the plaintiff Liangshuntong Company versus the defendant Hualian Company over a salescontract dispute ([2019] Yue 0304 Min Chu No. 49562), the Futian District People’s Court made a first-instancecivil judgment on July 3, 2020 that: 1. The plaintiff Liangshun Tongtong Company shall pay Hualian Company595,800 yuan within ten days from the effective date of this judgment; 2. Reject the claims of LiangshuntongCompany; 3. Reject other counterclaims of Hualian Company; 4. The plaintiff Liangshuntong Company shallprepay the litigation fee of 208,900 yuan, which shall be borne by the plaintiff, and the defendant HualianCompany shall prepay the counterclaim acceptance fee of 113,000 yuan, of which 1,800 yuan shall be borne bythe plaintiff and 111,200 yuan shall be borne by the defendant. After receiving the judgment, the plaintiffLiangshuntong refused to accept it and appealed to the Shenzhen Intermediate People’s Court. The ShenzhenIntermediate People’s Court made a final ruling on October 29, 2021, and the ruling is as follows: rejecting theappeal and upholding the original judgment. Hualian Company filed an enforcement application with ShenzhenFutian People’s Court in December 2021. In May 2022, Futian People's Court issued the Execution Ruling (2021)Yue 0304 Zhi No.37136, since the person subject to execution currently has no property available for execution, itruled that the enforcement procedures should be terminated; where the applicant for execution finds the personsubject to execution has property available for execution, the applicant can apply for execution again.
2) In the case of the plaintiff Hualian Company versus the defendant Liangshuntong Company over a contractdispute (Case No. [2020] Yue 0304 Min Chu No. 2824), the Futian District People’s Court delivered the CivilJudgment of the first instance on December 31, 2020, ruling that 1. The defendant Liangshuntong Company shallpay Hualian Company advance fees of 461,900 yuan and capital cost of 4,030,000 yuan within ten days from theeffective date of the judgment; 2. Liangshuntong Company shall pay the capital occupation fee (based on 461,900yuan, with an annual interest rate of 10.00%, calculating from December 11, 2019 to the date of paying off the full
amount) to Hualian Company within ten days from the effective date of the judgment; 3. Case acceptance fee of42,700 yuan shall be borne by the defendant Liangshuntong Company. Liangshuntong appealed to the ShenzhenIntermediate People’s Court on January 22, 2021. The Shenzhen Intermediate People’s Court made a final rulingon November 9, 2021, and the ruling is as follows: rejecting the appeal and upholding the original judgment.Hualian Company filed an enforcement application with Shenzhen Futian People's Court in December 2021. InMay 2022, Futian People's Court issued the Execution Ruling (2021) Yue 0304 Zhi No. 37314, since the personsubject to execution currently has no property available for execution, it ruled that the enforcement proceduresshould be terminated; where the applicant for execution finds the person subject to execution has propertyavailable for execution, the applicant can apply for execution again.
(7) Disputes over construction engineering contract between Heilongjiang Hongxinglong Farms & LandReclamation Shenxin Grain Industrial Park Co., Ltd. and Heilongjiang Zhishengda Construction Engineering Co.,Ltd.
In April 2020, Zhishengda Company filed a lawsuit with Hongxinglong People’s Court of Heilongjiang Provincewith Hongxinglong as the defendant, requesting: 1. To confirm that the “Letter on Rectification of CompletedProjects and Cancellation of Not Constructed Projects” issued by Hongxinglong on April 7, 2020 does not havethe effect of terminating the contract, the rescission contract made by it is invalid, and judge that the defendantHongxinglong should continue to perform the contract (the project cost required to perform the contract is5,137,800 yuan). 2. The litigation fee and other legal costs shall be borne by Hongxinglong.
On July 29, 2020, Hongxinglong filed a counterclaim with the first-instance court, requesting the court: 1. Toconfirm the validity of the cancellation of the construction contract between Hongxinglong and Zhishengda inaccordance with the law. 2. To rule that the Zhishengda should pay Hongxinglong liquidated damages of1,003,200 yuan, of which liquidated damages for overdue completion of the project of 253,200 yuan, repair costsfor unqualified project quality of about 240,000 yuan (the specific amount is to be determined by a third party),liquidated damages for project manager’s absence from the construction site without permission of 500,000 yuan,liquidated damages for the migrant worker’s collective petitions of 10,000 yuan. 3. The counterclaim fee andappraisal fee shall be borne by Zhishengda.
On March 16, 2021, the third-party appraisal agency applied by Zhishengda Company conducted an on-sitesurvey and conducted on-site appraisal for the engineering quantities. In July 2021, Hongxinglong went to theHeilongjiang Farms & Land Reclamation Intermediate People’s Court to determine the third-party appraisalagency (Heilongjiang Yage Construction Engineering Management Consulting Co., Ltd., now renamed ZhongyunProject Management Co., Ltd.) to appraise the cost of project restoration. On September 22, Hongxinglong paid20,000 yuan for the appraisal. On October 27, 2021, Zhongyun Project Management Co., Ltd. came to the site forappraisal. On March 9, 2022, the first-instance trial was held, and the lawyers of both parties conducted cross-examination, but the third-party appraiser did not appear in court due to the impact of the pandemic, so it is
planned to choose another day for the trial. On May 19, 2022, Heilongjiang Zhishengda Construction EngineeringCo., Ltd. submitted the Application for Clear Claims, which increased the amount of claims by 1,252,101.36yuan on the basis of the original request of 5,424,480.86 yuan.
(8) Contract disputes between Hangzhou Jufangyong Commercial and Trading Co., Ltd. and Hangzhou XingfuFeixiang Commercial and Trading Co., Ltd.
In July 2020, the plaintiff Hangzhou Jufangyong Commercial and Trading Co., Ltd. filed a lawsuit with XiaoshanPrimary People’s Court, Hangzhou against Hangzhou Xingfu Feixiang Commercial and Trading Co., Ltd. as thedefendant, requesting to order: 1. The defendant to pay a total of 2,454,700 yuan for cooperative use fees andwater and electricity fees 2. The defendant to pay the western restaurant’s cooperative use fee of 699,700 yuanand water and electricity fees (according to the actual amount) from July 1, 2019 to September 10, 2019; 3. Thedefendant to pay liquidated damages of 515,300 yuan; 4. The defendant to pay liquidated damages (from April 16,2020 to the date of repayment, with a base of 3,154,400 yuan and a monthly interest rate of 2%); 5. The defendantto bear the litigation costs in this case.
Xiaoshan Primary People’s Court, Hangzhou ruled that Hangzhou Xingfu Feixiang Commercial and Trading Co.,Ltd. entered bankruptcy proceedings and appointed an administrator, in August 2020, it ruled to suspend the trialof the case, requiring the plaintiff to declare its claims directly to the administrator. On December 23, 2020, theXiaoshan Primary People’s Court resumed the hearing of the case, the administrator issued a claim confirmationsheet and calculation details, confirming the plaintiff’s claim principal of 2,422,494.80 yuan and interest of166,000.00 yuan, totaling 2,588,494.80 yuan.
(9) Disputes over sales contract between Hangzhou Jufangyong Holdings Co., Ltd. and Hangzhou JufangyongCommercial and Trading Co., Ltd.,
On September 7, 2021, the plaintiff Hangzhou Jufangyong Holdings Co., Ltd. Sued Hangzhou JufangyongCommercial and Trading Co., Ltd. as the defendant to the Hangzhou Binjiang District People’s Court, requestingto order: 1. The defendant to immediately pay the payment of 2,816,266.50 yuan; 2. The defendant to bear thelitigation costs in this case.
On October 29, 2021, Hangzhou Jufangyong Holdings Co., Ltd. and Hangzhou Jufangyong Commercial andTrading Co., Ltd. reached a pre-litigation mediation, and Hangzhou Jufangyong Commercial and Trading Co., Ltd.paid 2.816 million yuan to Hangzhou Jufangyong Holdings Co., Ltd., and paid off before November 30, 2021.On December 8, 2021, Hangzhou Binjiang District People’s Court issued a civil ruling paper, ruling that themediation agreement reached by Hangzhou Jufangyong Holdings Co., Ltd. and Hangzhou JufangyongCommercial and Trading Co., Ltd. on October 29, 2021 is valid, and the parties shall consciously perform theirobligations in accordance with the provisions of the mediation agreement. If one party refuses to perform or fails
to perform all of its obligations, the other party can apply to the people’s court for enforcement.On December 29, 2021, Hangzhou Binjiang District People’s Court accepted the enforcement application ofHangzhou Jufangyong Holdings Co., Ltd.
On March 4, 2022, Hangzhou Jufangyong Holdings Co., Ltd. submitted an application for “transfer ofenforcement to bankruptcy” to Hangzhou Intermediate People’s Court.
(10) Disputes over private lending between Shenzhen Shenshenbao Tea Culture Commercial Management Co.,Ltd. and Shenzhen Shi Chu Ming Men Catering Management Co., Ltd.On May 31, 2021, the plaintiff Shenzhen Shenshenbao Tea Culture Commercial Management Co., Ltd. filed alawsuit with Shenzhen Nanshan District People’s Court against Shenzhen Shi Chu Ming Men CateringManagement Co., Ltd. as the defendant, requesting to order: 1. The defendant to return the principal of 1,183,000yuan borrowed from the plaintiff; 2. The defendant to pay the interest on borrowings of 171,250.68 yuan to theplaintiff; 3. The defendant to bear the litigation costs in this case.
On December 1, 2021, the court made a judgment in support of all the claims of Shenzhen Shenshenbao TeaCulture Company.
On January 20, 2022, Nanshan Court accepted the enforcement application of Shenzhen Shenshenbao Tea CultureCompany.
On April 27, 2022, Nanshan District People's Court ruled that the enforcement procedures should be terminated.Where the applicant for execution finds the person subject to execution has property available for execution, theapplicant can apply for execution again.On April 28, 2022, Shenzhen Shi Chu Ming Men Catering Management Co., Ltd. submitted an application forbankruptcy review of enforcement case to the Nanshan District People's Court.
(11) Disputes over special operating contract between Shanghai Baoyan Catering Co., Ltd. and HangzhouFuhaitang Catering Management Chain Co., Ltd.On July 22, 2021, the plaintiff Shanghai Baoyan Catering Co., Ltd. filed a lawsuit with Hangzhou BinjiangDistrict People’s Court against Hangzhou Fuhaitang Catering Management Chain Co., Ltd. as the defendant,requesting: 1. To cancel the Regional Agency Authorized Operating Agreement signed by the plaintiff and thedefendant; 2. The defendant to return the regional agency cooperation fee of 1,880,000 yuan and the cooperationdeposit of 80,000 yuan to the plaintiff, a total of 1,960,000 yuan; 3. The defendant to pay the liquidated damagesof 100,000 yuan to the plaintiff; 4. The defendant to pay the attorney fee of 50,000 yuan to the plaintiff; 5. Thedefendant to bear the litigation fee in this case.
The Hangzhou Binjiang District People’s Court issued a subpoena on February 11, 2022, confirming that the case
number was (2021) Zhe 0108 Min Chu No. 5890, and the court date set for March 17, 2022.On May 18, 2022, Hangzhou Binjiang District People's Court made a first-instance judgment, ruling thatHangzhou Fuhaitang Catering Management Chain Co., Ltd. should return Shanghai Baoyan Catering Co., Ltd. theagency cooperation fund of 880,000 yuan and bear the litigation fee of 12,580 yuan, and Shanghai BaoyanCatering Co., Ltd. bear litigation fee of 13,050 yuan. Both Hangzhou Fuhaitang Catering Management Chain Co.,Ltd. and Shanghai Baoyan Catering Co., Ltd. refused to accept the first-instance judgment and appealed to theHangzhou Intermediate Court. The date of the court case has not yet been determined.
(12) Sales contract disputes between Shuangyashan Shenliang Grain Base Co., Ltd. and Shanghai Zexi IndustrialCo., Ltd.On October 18, 2021, the plaintiff Shuangyashan Shenliang Grain Base Co., Ltd. filed a lawsuit with the ShanghaiPutuo District People’s Court with Shanghai Zexi Industrial Co., Ltd. as the defendant, requesting: 1. Thedefendant to immediately issue and deliver a special VAT invoice amounting 25.2 million yuan for the paymentof goods to the plaintiff; if the defendant cannot issue the invoice, it shall need to compensate the plaintiff for thetax deduction loss of 2,899,115.04 yuan; 2. The defendant to compensate the plaintiff for the failure of thedefendant to issue invoices, resulting in the plaintiff paying a late fee of 137,376.63 yuan to the tax bureau; 3. Thedefendant to compensate the plaintiff for travel expenses loss of 10,860.61 yuan; 4. The defendant to bear thelitigation costs of this case. A court date has not yet been set.Shanghai Zexi raised an objection to jurisdiction, on January 17, 2022, Shanghai Putuo District People's Courtmade a civil ruling (2021) Hu 0107 Min Chu No. 31846: rejecting the objection to jurisdiction raised by the otherparty. Shanghai Zexi refused to accept the ruling, and appealed to the Shanghai No. 2 Intermediate People's Court.On March 22, 2022, Shanghai No. 2 Intermediate People's Court issued a civil ruling (2022) Hu 02 Min XiaZhong No. 176: the appeal was rejected and the original ruling was upheld.
(13) Sales contract disputes between Shuangyashan Shenliang Grain Base Co., Ltd. and Tongliao Fada GrainPurchase and Storage Co., Ltd.On November 26, 2021, the plaintiff Tongliao Fada Grain Purchase and Storage Co., Ltd. filed a lawsuit withKeerqin District People’s Court of Tongliao City, Inner Mongolia Autonomous Region, with ShuangyashanCompany as the defendant, requesting: 1. To cancel the six purchase contracts signed with ShuangyashanCompany; 2. Shuangyashan Company to return the corn purchase payment of 25.2 million yuan; 3. ShuangyashanCompany to pay the interest on occupation of funds of 4,713,603.11 yuan (tentatively until November 1, 2021); 4.Shuangyashan Company to bear the litigation costs of this case.
Shuangyashan Company filed an objection to jurisdiction with Keerqin District People’s Court of Tongliao City,Inner Mongolia Autonomous Region. On March 24, 2022, Keerqin District People’s Court of Tongliao City, InnerMongolia Autonomous Region made a ruling that Shuangyashan Company’s objection to jurisdiction was
established, and the case was transferred to the People’s Court of Baoqing County, Shuangyashan City,Heilongjiang Province. On April 1, 2022, Tongliao Fada Grain Purchase and Storage Co., Ltd. filed an appealwith Tongliao Intermediate People’s Court, requesting to revoke the ruling on the objection to jurisdiction.
(14) Project construction contract disputes between Wuhan Jiangxia Yijian Construction Engineering Co., Ltd.and Wuhan Jiacheng Biological Products Co., Ltd.
1) On January 10, 2022, the plaintiff Wuhan Jiangxia Yijian Construction Engineering Co., Ltd. filed a lawsuitwith Jiangxia District People’s Court of Wuhan City against Wuhan Jiacheng Biological Products Co., Ltd. as thedefendant, requesting: 1. The defendant to immediately pay the project money of 4,421,888.97 yuan owed to theplaintiff ; 2. The defendant to pay liquidated damages (based on the arrears of the project payment of 4,421,888.97yuan, and calculated at an annual interest rate of 15.4% from October 10, 2019 to the date of payment, andtemporarily calculated to be 1,514,927 yuan until December 30, 2021) for the delayed payment of the projectpayment to the plaintiff. The above two items add up to 5,936,815 yuan. 3. The defendant to bear all expenses ofthe case, including litigation fee, appraisal fee, and preservation fee.
The plaintiff applied for property preservation (the preservation amount was more than 5.9 million yuan), and theJiangxia District Court ruled to freeze all bank accounts of Wuhan Jiacheng Biological Products Co., Ltd.
The Jiangxia District People’s Court of Wuhan City set the court date as February 28, 2022, and the case numberis (2022) E 0115 Min Chu No. 182.
2) On February 25, 2022, the counterclaim plaintiff Wuhan Jiacheng Biological Products Co., Ltd. filed acounterclaim against Wuhan Jiangxia Yijian Construction Engineering Co., Ltd. as the counterclaim defendant,requesting: 1. To confirm that the Hubei Province Construction Project Contract, with the project cost of25,965,136.97 yuan, signed by the plaintiff and the defendant on July 4, 2017 for the Jiacheng Bio-Industrial ParkConstruction Project (Phase I) is invalid; 2. To order the defendant of the counterclaim to submit the completecompletion data and completion report to the plaintiff of the counterclaim and assist in handling the completionacceptance of the project and the relevant procedures for archiving and filing the engineering data in the urbanconstruction archives; 3. To compensate for the losses (from April 1, 2018 to October 25, 2019, calculated at1,000 yuan per day; from October 26, 2019 to the date of acceptance and delivery of project, with 21,543,248yuan as the base, calculated according to the quoted interest rate of the loan market for the same period announcedby the National Interbank Funding Center, and it’s about 2.3 million yuan calculated to the date of indictment)caused to the plaintiff due to the delayed delivery of the Wuhan Jiacheng Bio-Industrial Park Construction Project(Phase I); 4. To bear the litigation fees, preservation fees and other expenses for the counterclaim.On July 6, 2022, Jiangxia District People's Court of Wuhan City made a judgment:
1. The defendant, Wuhan Jiacheng Biotechnology Co., Ltd., shall pay 4,421,888.97 yuan to the plaintiff, WuhanJiangxia Yijian Construction Engineering Co., Ltd., within ten days after this judgment takes effect;
2. The defendant,Wuhan Jiacheng Biotechnology Co., Ltd., shall pay the plaintiff, Wuhan Jiangxia No.1Construction Engineering Co., Ltd., liquidated damages (based on 4,421,888.97 yuan, calculating from September19, 2020 to the completion of the performance by 1.3 times LPR) within ten days after this judgment takes effect ;
3. The plaintiff, Wuhan Jiangxia Yijian Construction Engineering Co., Ltd., shall have priority to be compensatedfor the discount or auction price of the above-mentioned projects undertaken by it within the scope of item 1 anditem 2 of the above judgment;
4. The counterclaim defendant, Wuhan Jiangxia Yijian Construction Engineering Co., Ltd., shall submit completecompletion materials and completion reports to the counterclaim plaintiff, Wuhan Jiacheng Biotechnology Co.,Ltd., within ten days after the judgment takes effect, and assist in the completion acceptance of the project and therelated procedures for filing engineering data in the Urban Construction Archives;
5. Reject other claims of the plaintiff Wuhan Jiangxia Yijian Construction Engineering Co., Ltd.;
6. Reject other claims of the counterclaim plaintiff Wuhan Jiacheng Biotechnology Co., Ltd..Where the payment obligation is not fulfilled within the period as specified in this judgment, the debt interestduring the period of delayed performance shall be doubled in accordance with Article 260 of the Civil ProcedureLaw of the People's Republic of China.The litigation fee is 53,358 yuan, the counterclaim acceptance fee is 12,600 yuan, and the preservation fee is5,000 yuan, totaling 70,958 yuan. The plaintiff, Wuhan Jiangxia Yijian Construction Engineering Co., Ltd., shallpay 2,000 yuan, and the defendant, Wuhan Jiacheng Biotechnology Co., Ltd., shall pay 68,958 yuan.On July 16, 2022, Wuhan Jiacheng Biotechnology Co., Ltd. appealed to the Wuhan Intermediate People's Court.
(15) Disputes over loan contract between Changzhou Shenbao Tea-Shop E-commerce Co., Ltd. and ShenzhenAgricultural Products Financing Guarantee Co., Ltd.
On July 15, 2016, the Agricultural Products Guarantee Company submitted a Civil Complaint to Shenzhen FutianDistrict People’s Court, requesting to order: 1. Changzhou Company to repay the loan principal of 5,000,000.00yuan and the interest of 389,968.52 yuan, and the penalty interest of 3,200,271.79 yuan (The penalty interest istemporarily calculated until June 30, 2016, and actually calculated to the date when the loan is fully paid); 2.Changzhou Company to pay compensation of 100,000.00 yuan (5,000,000 yuan × 2%); totaling 8,690,240.31yuan; 3. Shenzhen Shenbao Industrial Co., Ltd. (hereinafter referred to as “Shenbao Company”)to be jointly andseverally liable for the loan of 5,000,000.00 yuan.
Shenzhen Futian District People’s Court issued a first-instance judgment on May 31, 2017, ruling that ChangzhouCompany should repay the loan principal of 5 million yuan and interest of 353,871.28 yuan, and interest penalty
(interest penalty is based on 5 million yuan as the principal, calculated from September 7, 2013 to the date ofactual repayment at an annual rate of 21.6%. If the repayment is made in installments, the interest ofcorresponding part will be calculated to the date of each repayment) to the plaintiff Agricultural ProductsGuarantee Company within 10 days from the effective date of the judgment, and Changzhou Company shall bearthe lawyer’s fee of 71,911 yuan and the preservation fee of 5,000 yuan; the judgment rejected the request of theAgricultural Products Guarantee Company’s request Shenbao Company to bear joint and several liability.
Agricultural Products Guarantee Company refused to accept the first-instance judgment and filed an appeal to theShenzhen Intermediate People’s Court. On May 10, 2019, the Shenzhen Intermediate People’s Court served thecivil judgment (final judgment), and the Shenzhen Intermediate Court made some changes to the first-instancejudgment, ruling that Shenbao Company (now renamed Shenzhen Cereals Holdings Co., Ltd.) shall be jointly andseverally liable for the debts of Changzhou Company within the range of 3.5 million yuan; Shenbao Company(now renamed as Shenzhen Cereals Holdings Co., Ltd.) has the right to recover from Changzhou Company afterpaying off the debts on its behalf.
In May 2021, Agricultural Products Guarantee Company applied to Futian District Court of the first instance forcompulsory execution of 5,193,443 yuan. According to the request of the court, Changzhou Company declaredthe property status to the court. Agricultural Products Guarantee Company reached a voluntary settlement withChangzhou Company and SZCH. On October 20, 2021, Futian Court issued an enforcement ruling to terminatethe enforcement of the case.
(16) Hangzhou International Airport Co., Ltd. filed a lawsuit against Hangzhou Jufangyong Trading Co., Ltd.concerning housing leasing contract disputesHangzhou International Airport Co., Ltd. filed a lawsuit with the Xiaoshan Primary People's Court, Hangzhou,Zhejiang against Hangzhou Jufangyong Trading Co., Ltd. as the defendant, requesting: 1. to order the defendantto pay the remaining outstanding payment from April 2019 to September 10, 2019 in total of 1,064,613.34 yuan. 2.to order the defendant to pay overdue liquidated damages of 4,908,976.281 yuan (tentatively until December 31,2021) due to overdue payment of rent and other expenses. 3. to order the defendant to pay 455,880 yuan ofliquidated damages for termination of contract. 4. to order the defendant to pay the housing occupancy and usefees from September 11, 2019 to November 11, 2019, totaling 486,552.6733 yuan; 5. to order the defendant tobear the litigation fee of this case. (The above item 1 to item 5 amount to 6,916,022.29 yuan temporarily).Xiaoshan Primary People's Court issued a civil judgment on April 6, 2022, ruling that Hangzhou JufangyongTrading Company should pay Hangzhou International Airport Co., Ltd. rent, property fees, POS machine rentalfees, liquidated damages, and housing occupancy and use fees, totaling approximately 2,007,046 yuan, and bearthe litigation fee of 13,038 yuan. Hangzhou International Airport Co., Ltd. should bear the litigation fee of 17,038yuan.
On April 20, 2022, Hangzhou Jufangyong Trading Co., Ltd. filed an appeal to the Hangzhou IntermediatePeople's Court. On June 14, 2022, the court held a hearing on the case, and as of the date of the audit report, nojudgment has been made.
(17) Hangzhou International Airport Co., Ltd. filed a lawsuit against Hangzhou Jufangyong Holdings Co., Ltd.and Hangzhou Jufangyong Trading Co., Ltd. concerning housing lease contract disputesOn December 1, 2021, Hangzhou International Airport Co., Ltd. filed a lawsuit with Xiaoshan Primary People'sCourt against Hangzhou Jufangyong Holding Co., Ltd. and Hangzhou Jufangyong Trading Co., Ltd. as defendants,requesting: 1. to order the two defendants to pay the outstanding payments 62,486.66 yuan; 2. to order HangzhouJufangyong Holdings Co., Ltd. To pay overdue liquidated damages of 265,255.87 yuan (tentatively untilDecember 31, 2021); 3. to order Hangzhou Jufangyong Holdings Co., Ltd. To pay 1,372,500 yuan of liquidateddamages for termination of contract; 4. to order Hangzhou Jufangyong Holdings Co., Ltd. to pay a total of362,422.67 yuan for the housing occupancy and use fees; 5. to order Hangzhou Jufangyong Holdings Co., Ltd. topay the plaintiff a loss of 50,189.90 yuan for the difference in rent; 6. to order the two defendants to bear thelitigation fee and preservation fee of this case. (The above item 1 to item 5 amount to 2,112,855.10 yuan)On April 13, 2022, Hangzhou Jufangyong Holdings Co., Ltd. filed a counterclaim, requesting: 1. HangzhouInternational Airport Co., Ltd. to refund the full performance bond of 457,500 yuan; 2. Hangzhou InternationalAirport Co., Ltd. To pay liquidated damages of 457,500 yuan; 3. Hangzhou International Airport Co., Ltd. to bearthe litigation fee. (The above item 1 and item 2 amount to 915,000 yuan)Xiaoshan Primary People's Court held a hearing on the case on April 28, 2022, and no judgment has been madeyet.
(18) Xu Anwu filed a lawsuit against Dongguan Shenliang Logistics Co., Ltd., Gansu Installation andConstruction Group Co., Ltd., Guangdong Dianbai Building Group Co., Ltd., and Xu Jianqiang concerningconstruction project subcontract disputesOn March 17, 2021, the plaintiff Xu Anwu filed a lawsuit with the First People's Court of Dongguan, GuangdongProvince against Dongguan Shenliang Logistics Co., Ltd., Gansu Installation and Construction Group Co., Ltd.,Guangdong Dianbai Building Group Co., Ltd., and Xu Jianqiang as defendants, requesting: 1. the four defendantsto immediately pay the plaintiff the construction cost of 10,445,000 yuan; 2. the litigation fee in this case shall beborne by the four defendants.On May 19, 2021, Gansu Installation and Construction Group Co., Ltd. filed a counterclaim against Xu Anwu asthe counterclaim defendant, requesting: 1. Xu Anwu to immediately return the overpaid 2,566,974.25 yuan toGansu Installation and Construction Group Co., Ltd.; 2. the litigation fee in this case shall be borne by Xu Anwu.
The case was heard on July 14, and on April 22, 2022, the First People's Court of Dongguan, Guangdong Provincemade a judgment, rejecting all the plaintiff's claims against Dongguan Shenliang Logistics Co., Ltd.Gansu Installation and Construction Group Co., Ltd. appealed to the Dongguan Intermediate People's Court,Guangdong Province. On July 4, 2022, the Intermediate People's Court of Dongguan City, Guangdong Provincenotified that the court investigation of this case is scheduled to be conducted on the Internet on August 5, 2022.
1.2 Guarantee
(1) The Company and subsidiary of the Company -SZCG provide a guarantee to its subsidiary - InternationalFoodThe Company and Subsidiary of the Company -SZCG provide a guarantee to International Food for theapplication of loans, amount of guarantee is 625.1480 million yuan. As of June 30, 2022, the loan is not yet duefor repayment.
(2) Subsidiary of the Company -SZCG provide a guarantee to its subsidiary -Dongguan LogisticsSubsidiary of the Company -SZCG provide a guarantee to Dongguan Logistics for the application of loans,amount of guarantee is 99.2121 million yuan. As of June 30, 2022, the loan is not yet due for repayment.
(3) Associated guarantees and restricted assets
Restricted assets found more in the Note VII (81), associated guarantee found more in Note XII (5)
(2) If the Company has no important contingency need to disclosed, explain reasonsThe Company has no important contingency that need to disclose.
3. Other
XV. Events after balance sheet date
1. Important non adjustment matters
Unit: CNY/RMB
| Item | Content | Impact on financial status and operation results | Reasons of fails to estimate the impact |
2. Profit distribution
Unit: CNY/RMB
3. Sales return
4. Description of other balance sheet events after the date
XVI. Other important events
1. Previous accounting errors collection
(1) Retrospective restatement
Unit: CNY/RMB
| Content of accounting error correction | Procedures | Items impact during vary comparative period | Accumulated impact |
(2) Prospective application
| Content of accounting error correction | Approval procedure | Reasons for adopting the prospective applicable method |
2. Debt restructuring
3. Assets exchange
(1) Exchange of non-monetary assets
(2) Other assets exchange
4. Pension plan
5. Discontinuing operation
Unit: CNY/RMB
| Item | Revenue | Expenses | Total profit | Income tax expenses | Net profit | Profit of discontinuing operation attributable to owners of parent company |
Other explanation
6. Segment
(1) Recognition basis and accounting policy for reportable segment
(2) Financial information for reportable segment
Unit: CNY/RMB
| Item | Offset between segment | Total | |
(3) The Company has no segment, or unable to disclose total assets and liability of the segment, explainreasons
(4) Other explanation
7. Other major transaction and events makes influence on investor’s decision
8. Other
XVII. Principal notes of financial statements of parent company
1. Account receivable
(1) Account receivable classify by category
Unit: CNY/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 on a single basis | 28,453.08 | 0.08% | 28,453.08 | 100.00% | 28,453.08 | 0.02% | 28,453.08 | 100.00% | ||
| Including: | ||||||||||
| Account receivable with single minor amount but with bad debts provision accrued on a single basis | 28,453.08 | 0.08% | 28,453.08 | 100.00% | 28,453.08 | 0.02% | 28,453.08 | 100.00% | ||
| Account receivable with bad debt provision accrual | 33,810,852.62 | 99.92% | 4,426.30 | 0.01% | 33,806,426.32 | 135,682,852.60 | 99.98% | 4,426.30 | 0.01% | 135,678,426.30 |
| on portfolio | ||||||||||
| Including: | ||||||||||
| Combination of sales receivables | 8,852.60 | 0.03% | 4,426.30 | 50.00% | 4,426.30 | 8,852.60 | 0.01% | 4,426.30 | 50.00% | 4,426.30 |
| Specific object combinations | 33,802,000.02 | 99.89% | 33,802,000.02 | 135,674,000.00 | 99.97% | 135,674,000.00 | ||||
| Total | 33,839,305.70 | 100.00% | 32,879.38 | 0.10% | 33,806,426.32 | 135,711,305.68 | 100.00% | 32,879.38 | 0.02% | 135,678,426.30 |
Bad debt provision accrual on single basis: 28,453.08 yuan
Unit: CNY/RMB
| Name | Ending balance | |||
| Book balance | Bad debt provision | Accrual ratio | Accrual causes | |
| Other accrual on single basis | 28,453.08 | 28,453.08 | 100.00% | Slightly possibly taken back |
| Total | 28,453.08 | 28,453.08 | -- | |
Bad debt provision accrual on portfolio: 4,426.30 yuan
Unit: CNY/RMB
| Name | Ending balance | ||
| Book balance | Bad debt provision | Accrual ratio | |
| Combination of sales receivables | 8,852.60 | 4,426.30 | 50.00% |
| Specific object combinations | 33,802,000.02 | ||
| Total | 33,810,852.62 | 4,426.30 | |
Explanation on portfolio determines:
If the provision for bad debts of account receivable is made in accordance with the general model of expectedcredit losses, please refer to the disclosure of other account receivables to disclose related information aboutbad-debt provisions:
□ Applicable √Not applicable
By account age
Unit: CNY/RMB
| Account age | Ending balance |
| Within one year (including 1-year) | 33,802,000.02 |
| Over 3 years | 37,305.68 |
| 4-5 years | 8,852.60 |
| Over 5 years | 28,453.08 |
| Total | 33,839,305.70 |
(2) Bad debt provision accrual, collected or reversal in the period
Bad debt provision accrual in the period:
Unit: CNY/RMB
| Category | Opening balance | Amount changed in the period | Ending balance | |||
| Accrual | Collected or reversal | Written off | Other | |||
| Other accrual on single basis | 28,453.08 | 28,453.08 | ||||
| Sales Receivables Portfolio | 4,426.30 | 4,426.30 | ||||
| Total | 32,879.38 | 32,879.38 | ||||
Including major amount bad debt provision that collected or reversal in the period: nil
Unit: CNY/RMB
| Enterprise | Amount collected or reversal | Collection way |
(3) Account receivable actually written-off in the period
Unit: CNY/RMB
| Item | Amount written-off |
Including major account receivable written-off:
Unit: CNY/RMB
| Enterprise | Nature | Amount written-off | Written-off causes | Procedure of written-off | Resulted by related transaction (Y/N) |
Explanation on account receivable written-off:
(4) Top 5 account receivables at ending balance by arrears party
Unit: CNY/RMB
| Enterprise | Ending balance of accounts receivable | Proportion in total receivables at ending balance | Bad debt preparation ending balance |
5) Account receivables derecognized due to the transfer of financial assets
6) Amount of assets and liabilities that formed the by transferring of account receivable and continue tobe involvedOther explanation
2. Other account receivable
Unit: CNY/RMB
| Item | Ending balance | Opening balance |
| Dividend receivable | 540,000,000.00 | 540,000,000.00 |
| Other account receivable | 623,766,691.58 | 443,939,717.84 |
| Total | 1,163,766,691.58 | 983,939,717.84 |
(1) Interest receivable
1) Category of interest receivable
Unit: CNY/RMB
| Item | Ending balance | Opening balance |
2) Important overdue interest
Unit: CNY/RMB
| Borrower | Ending balance | Overdue time | Overdue causes | Whether impairment occurs and its judgment basis |
Other explanation
3) Accrual of bad debt provision
□ Applicable √Not applicable
(2) Dividend receivable
1) Category of dividend receivable
Unit: CNY/RMB
| Item (or the invested entity) | Ending balance | Opening balance |
| SZCG | 540,000,000.00 | 540,000,000.00 |
| Total | 540,000,000.00 | 540,000,000.00 |
2) Important dividend receivable with account age over one year
Unit: CNY/RMB
| Item (or the invested entity) | Ending balance | Account age | Reasons for not collection | Whether impairment occurs and its judgment basis |
3) Accrual of bad debt provision
□ Applicable √Not applicable
Other explanation
(3) Other account receivable
1) By nature
Unit: CNY/RMB
| Nature | Ending book balance | Opening book balance |
| Margin and deposit | 232,405.63 | 168,234.34 |
| Current payments and others | 651,379,020.99 | 471,616,218.54 |
| Total | 651,611,426.62 | 471,784,452.88 |
2) Accrual of bad debt provision
Unit: CNY/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 Jan. 1, 2022 | 213,468.15 | 27,631,266.89 | 27,844,735.04 | |
| Balance of Jan. 1, 2022 in the period | ||||
| Balance on Jun. 30, 2022 | 213,468.15 | 27,631,266.89 | 27,844,735.04 |
Change of book balance of loss provision with amount has major changes in the period
□ Applicable √Not applicable
By account age
Unit: CNY/RMB
| Account age | Ending balance |
| Within one year (including 1-year) | 274,612,558.69 |
| 2-3 years | 351,504,462.58 |
| Over 3 years | 25,494,405.35 |
| 4-5 years | 436,664.33 |
| Over 5 years | 25,057,741.02 |
| Total | 651,611,426.62 |
3) Bad debt provision accrual, collected or reversal in the period
Bad debt provision accrual in the period:
Unit: CNY/RMB
| Category | Opening balance | Amount changed in the period | Ending balance | |||
| Accrual | Collected or reversal | Written off | Other | |||
| Bad debt provision accrual on single basis | 27,631,266.89 | 27,631,266.89 | ||||
| Bad debt | 213,468.15 | 213,468.15 | ||||
| provision accrual on portfolio | ||||||
| Total | 27,844,735.04 | 27,844,735.04 |
Including major amount with bad debt provision reverse or collected in the period: nil
Unit: CNY/RMB
| Enterprise | Amount reversal or collected | Collection way |
4) Other account receivable actually written-off in the period
Unit: CNY/RMB
| Item | Amount written-off |
Including important other account receivable written-off:
Unit: CNY/RMB
| Enterprise | Nature | Amount written-off | Written-off causes | Procedure of written-off | Resulted by related transaction (Y/N) |
Explanation on other account receivable written-off:
5) Top 5 other receivables at ending balance by arrears party
Unit: CNY/RMB
| Enterprise | Nature | Ending balance | Account age | Ratio in total ending balance of other account receivables | Bad debt preparation ending balance |
| First | Other internal funds | 170,911,385.40 | Within one year, 1-2 years | 26.23% | |
| Second | Other internal funds | 121,514,328.41 | Within one year, 1-2 years | 18.65% | |
| Three | Other internal funds | 120,726,391.40 | Within one year, 1-2 years | 18.53% | |
| Fourth | Other internal funds | 85,049,378.94 | Within one year | 13.05% | |
| Fifth | Other internal funds | 83,605,194.12 | Within one year | 12.83% | |
| Total | 581,806,678.27 | 89.29% |
6) Other account receivables related to Government subsidy
Unit: CNY/RMB
| Enterprise | Government subsidy | Ending balance | Ending account age | Time, amount and basis for collection predicted |
7) Other receivables derecognized due to the transfer of financial assets
8) Amount of assets and liabilities that formed the by transferring of other receivable and continue to beinvolved
Other explanation：
3. Long-term equity investment
Unit: CNY/RMB
| Item | Ending balance | Opening balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Investment for subsidiary | 4,029,519,425.09 | 5,500,000.00 | 4,024,019,425.09 | 4,054,019,425.09 | 5,500,000.00 | 4,048,519,425.09 |
| Investment for associates and joint venture | 2,927,628.53 | 2,927,628.53 | 2,927,628.53 | 2,927,628.53 | ||
| Total | 4,032,447,053.62 | 8,427,628.53 | 4,024,019,425.09 | 4,056,947,053.62 | 8,427,628.53 | 4,048,519,425.09 |
(1) Investment for subsidiary
Unit: CNY/RMB
| The invested entity | Opening balance(book value) | Current changes (+, -) | Ending balance(book value) | Ending balance of impairment provision | |||
| Additional investment | Capital reduction | Accrual of impairment provision | Other | ||||
| Shenbao Industry & Trade | 5,500,000.00 | ||||||
| Shenliang Food | 80,520,842.36 | 80,520,842.36 | |||||
| Shenbao Huacheng | 168,551,781.80 | 54,676,764.11 | 223,228,545.91 | ||||
| Huizhou Shenbao | 60,000,000.00 | 60,000,000.00 | |||||
| Shenbao Technology | 54,676,764.11 | 54,676,764.11 | |||||
| Shenbao Investment | 50,000,000.00 | 50,000,000.00 | |||||
| SZCG | 3,291,415,036.82 | 3,291,415,036.82 | |||||
| Dongguan | 321,680,000. | - | 297,180,000. | ||||
| Logistics | 00 | 24,500,000.00 | 00 | ||||
| Wuhan Jiacheng | 21,675,000.00 | 21,675,000.00 | |||||
| Total | 4,048,519,425.09 | 54,676,764.11 | 54,676,764.11 | -24,500,000.00 | 4,024,019,425.09 | 5,500,000.00 |
(2) Investment for associates and joint venture
Unit: CNY/RMB
| Investment company | Opening balance (book value) | Current changes (+, -) | 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 | |||||||||||
| II. Associated enterprise | |||||||||||
| Shenzhen Shenbao (Liaoyuan) Industrial Company | 57,628.53 | ||||||||||
| Shenzhen Shenbao (Xinmin) Foods Co., Ltd | 2,870,000.00 | ||||||||||
| Changzhou Shenbao | |||||||||||
| Chacang E-business Co., Ltd. | |||||||||||
| Subtotal | 2,927,628.53 | ||||||||||
| Total | 2,927,628.53 |
(3) Other explanation
4. Operating revenue and operating cost
Unit: CNY/RMB
| Item | Current period | Last period | ||
| Revenue | Cost | Revenue | Cost | |
| Main business | 94,652,563.62 | 235,795.14 | 78,409,527.17 | 235,795.14 |
| Other business | 80,008.26 | |||
| Total | 94,732,571.88 | 235,795.14 | 78,409,527.17 | 235,795.14 |
Information relating to revenue:
Unit: CNY/RMB
| Category | Branch 1 | Branch 2 | Total | |
| Product Types | ||||
| Including: | ||||
| Classification by business area | ||||
| Including: | ||||
| Market or customer type | ||||
| Including: | ||||
| Contract Types | ||||
| Including: | ||||
| Classification by time of goods transfer | ||||
| Including: | ||||
| Classification by |
| contract duration | ||||
| Including: | ||||
| Classification by sales channel | ||||
| Including: | ||||
| Total |
Information relating to performance obligations:
NilInformation related to the transaction price apportioned to the remaining performance obligations:
The amount of income corresponding to the performance obligations that have been signed at the end of thisreporting period but have not yet been fulfilled or have not done with fulfillment is 0.00 yuan, among them,
0.00yuan of revenue is expected to be recognized in 0 yuan of revenue is expected to be recognized in 0, and
0.00 yuan of revenue is expected to be recognized in 0.
Other explanation:
5. Investment income
Unit: CNY/RMB
| Item | Current period | Last period |
| Investment income during the period of tradable financial assets hold | 116,111.11 | |
| Financial income | 2,279,175.50 | |
| Dividends | 451,054.95 | |
| Total | 2,279,175.50 | 567,166.06 |
6. Other
XVIII. Supplementary information
1. Current non-recurring gains/losses
√ Applicable □Not applicable
Unit: CNY/RMB
| Item | Amount | Note |
| Governmental subsidy reckoned into current gains/losses (except for those with normal operation business concerned, and conform to the national policies & regulations and are continuously enjoyed at a fixed or quantitative basis according to certain | 8,046,293.93 |
| standards) | ||
| Profit and loss of assets delegation on others’ investment or management | 221,889.46 | |
| Except for the effective hedging operations related to normal business operation of the Company, the gains/losses of fair value changes from holding the trading financial assets and trading financial liabilities, and the investment earnings obtained from disposing the trading financial asset, trading financial liability | 3,573,445.74 | |
| Switch-back of provision of impairment of account receivable which are treated with separate depreciation test | 127,286.00 | |
| Other non-operating income and expenditure except for the aforementioned items | 1,065,883.45 | |
| Less: impact on income tax | 2,637,117.23 | |
| Impact on minority interests | 2,187.17 | |
| Total | 10,395,494.18 | -- |
Details of other gains/losses items that meets the definition of non-recurring gains/losses:
□ Applicable √ Not applicable
There are no other gains/losses items that meet the definition of non-recurring gains/losses in the Company.Explain the items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/lossin Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss
□ Applicable √ Not applicable
2. ROE and earnings per share
| Profits during report period | Weighted average ROE | Earnings per share | |
| Basic earnings per share (RMB/Share) | Diluted earnings per share (RMB/Share) | ||
| Net profits belong to common stock stockholders of the Company | 5.00% | 0.2061 | 0.2061 |
| Net profits belong to common stock stockholders of the Company after deducting nonrecurring gains and losses | 4.78% | 0.1971 | 0.1971 |
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
Unit: CNY/RMB
| Net profit | Net assets | |||
| Current period | Last period | Ending balance | Opening balance | |
| Chinese GAAP | 237,527,782.93 | 243,846,874.76 | 4,579,686,071.77 | 4,630,292,102.34 |
| Items and amount adjusted by IAS: | ||||
| Adjustment for other payable fund of stock market regulation | 1,067,000.00 | 1,067,000.00 | ||
| IAS | 237,527,782.93 | 243,846,874.76 | 4,580,753,071.77 | 4,631,359,102.34 |
(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) Explanation on data differences under the accounting standards in and out of China; as for thedifferences adjustment audited by foreign auditing institute, listed name of the institute
4. Other