Shenzhen China Bicycle Company (Holdings) Limited
Semi-Annual Financial Report 2023
August 2023
Financial Report
I. Audit reportWhether the semi annual report is audited
□Yes ?No
The company's semi annual financial report has not been auditedII. Financial StatementStatement in Financial Notes are carried Unit: RMB/CNY
1. Consolidated Balance Sheet
Prepared by Shenzhen China Bicycle Company (Holdings) Limited
June 30, 2023
Unit: RMB/CNY
| Item | 2023-6-30 | 2023-1-1 |
| Current assets: | ||
| Monetary fund | 19,737,567.50 | 54,699,491.18 |
| Settlement provisions | ||
| Capital lent | ||
| Trading financial assets | ||
| Derivative financial assets | ||
| Note receivable | 839,035.38 | 1,102,000.00 |
| Account receivable | 149,209,751.14 | 250,069,301.93 |
| Receivable financing | ||
| Accounts paid in advance | 2,742,066.99 | 4,286,935.15 |
| Insurance receivable | ||
| Reinsurance receivables | ||
| Contract reserve of reinsurance receivable | ||
| Other account receivable | 2,461,431.37 | 438,477.82 |
| Including: Interest receivable | ||
| Dividend receivable | ||
| Buying back the sale of financial assets | ||
| Inventory | 190,374,908.95 | 48,206,866.81 |
| Contractual assets | ||
| Assets held for sale | ||
| Non-current asset due within one year | ||
| Other current assets | 34,580,392.74 | 35,453,106.62 |
| Total current assets | 399,945,154.07 | 394,256,179.51 |
| Non-current assets: | ||
| Loans and payments on behalf | ||
| Debt investment | ||
| Other debt investment | ||
| Long-term account receivable | ||
| Long-term equity investment | ||
| Investment in other equity instrument | ||
| Other non-current financial assets | ||
| Investment real estate | ||
| Fix assets | 2,255,797.28 | 2,304,402.38 |
| Construction in progress | ||
| Productive biological asset | ||
| Oil and gas asset | ||
| Right-of-use assets | 173,936.71 | |
| Intangible assets | ||
| Expense on Research and Development | ||
| Goodwill | ||
| Long-term expenses to be apportioned | ||
| Deferred income tax asset | 201,596.48 | 118,969.33 |
| Other non-current asset | 400,000.00 | 400,000.00 |
| Total non-current asset | 2,857,393.76 | 2,997,308.42 |
| Total assets | 402,802,547.83 | 397,253,487.93 |
| Current liabilities: | ||
| Short-term loans | ||
| Loan from central bank | ||
| Capital borrowed | ||
| Trading financial liability | ||
| Derivative financial liability | ||
| Note payable | ||
| Account payable | 23,429,847.57 | 2,877,423.23 |
| Accounts received in advance | ||
| Contract liability | 437,102.15 | 791,762.84 |
| Selling financial asset of repurchase | ||
| Absorbing deposit and interbank deposit | ||
| Security trading of agency | ||
| Security sales of agency | ||
| Wage payable | 884,429.93 | 769,992.42 |
| Taxes payable | 18,481,320.47 | 38,144,508.36 |
| Other account payable | 47,850,414.91 | 48,621,087.98 |
| Including: Interest payable |
| Dividend payable | ||
| Commission charge and commission payable | ||
| Reinsurance payable | ||
| Liability held for sale | ||
| Non-current liabilities due within one year | 210,892.38 | |
| Other current liabilities | 56,823.28 | 102,929.16 |
| Total current liabilities | 91,139,938.31 | 91,518,596.37 |
| Non-current liabilities: | ||
| Insurance contract reserve | ||
| Long-term loans | ||
| Bonds payable | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Lease liability | ||
| Long-term account payable | ||
| Long-term wages payable | ||
| Accrual liability | 878,000.00 | 887,342.00 |
| Deferred income | ||
| Deferred income tax liabilities | ||
| Other non-current liabilities | ||
| Total non-current liabilities | 878,000.00 | 887,342.00 |
| Total liabilities | 92,017,938.31 | 92,405,938.37 |
| Owner’s equity: | ||
| Share capital | 689,184,933.00 | 689,184,933.00 |
| Other equity instrument | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Capital public reserve | 778,824,470.95 | 778,824,470.95 |
| Less: Inventory shares | ||
| Other comprehensive income | ||
| Reasonable reserve | ||
| Surplus public reserve | 32,673,227.01 | 32,673,227.01 |
| Provision of general risk | ||
| Retained profit | -1,205,691,013.55 | -1,210,553,312.45 |
| Total owner’ s equity attributable to parent company | 294,991,617.41 | 290,129,318.51 |
| Minority interests | 15,792,992.11 | 14,718,231.05 |
| Total owner’ s equity | 310,784,609.52 | 304,847,549.56 |
| Total liabilities and owner’ s equity | 402,802,547.83 | 397,253,487.93 |
Legal Representative: Wang Shenghong Person in charge of Accounting Works: Sun Longlong Person in charge ofAccounting Institution: She Hanxing
2. Balance Sheet of Parent Company
Unit: RMB/CNY
| Item | 2023-6-30 | 2023-1-1 |
| Current assets: | ||
| Monetary fund | 11,548,838.59 | 44,090,324.53 |
| Trading financial assets | ||
| Derivative financial assets | ||
| Note receivable | 400,000.00 | |
| Account receivable | 4,646,089.59 | 213,762,895.33 |
| Receivable financing | ||
| Accounts paid in advance | 30,474,472.82 | 39,465,026.86 |
| Other account receivable | 67,555,513.92 | 209,606.79 |
| Including: Interest receivable | ||
| Dividend receivable | ||
| Inventory | 138,576,916.65 | 42,640,812.21 |
| Contractual assets | ||
| Assets held for sale | ||
| Non-current asset due within one year | ||
| Other current assets | ||
| Total current assets | 252,801,831.57 | 340,568,665.72 |
| Non-current assets: | ||
| Debt investment | ||
| Other debt investment | ||
| Long-term account receivable | ||
| Long-term equity investment | 94,960,379.73 | 19,960,379.73 |
| Investment in other equity instrument | ||
| Other non-current financial assets | ||
| Investment real estate | ||
| Fix assets | 2,129,517.12 | 2,209,564.35 |
| Construction in progress | ||
| Productive biological asset | ||
| Oil and gas asset | ||
| Right-of-use assets | 105,403.37 | |
| Intangible assets | ||
| Expense on Research and Development | ||
| Goodwill | ||
| Long-term expenses to be apportioned | ||
| Deferred income tax asset | ||
| Other non-current asset | 400,000.00 | 400,000.00 |
| Total non-current asset | 97,489,896.85 | 22,675,347.45 |
| Total assets | 350,291,728.42 | 363,244,013.17 |
| Current liabilities: | ||
| Short-term loans | ||
| Trading financial liability |
| Derivative financial liability | ||
| Note payable | ||
| Account payable | 1,926,961.97 | 275,843.19 |
| Accounts received in advance | ||
| Contract liability | ||
| Wage payable | 542,622.85 | 403,771.82 |
| Taxes payable | 17,424,929.53 | 35,797,995.48 |
| Other account payable | 43,305,972.20 | 40,465,510.28 |
| Including: Interest payable | ||
| Dividend payable | ||
| Liability held for sale | ||
| Non-current liabilities due within one year | 121,977.23 | |
| Other current liabilities | ||
| Total current liabilities | 63,200,486.55 | 77,065,098.00 |
| Non-current liabilities: | ||
| Long-term loans | ||
| Bonds payable | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Lease liability | ||
| Long-term account payable | ||
| Long-term wages payable | ||
| Accrual liability | 878,000.00 | 878,000.00 |
| Deferred income | ||
| Deferred income tax liabilities | ||
| Other non-current liabilities | ||
| Total non-current liabilities | 878,000.00 | 878,000.00 |
| Total liabilities | 64,078,486.55 | 77,943,098.00 |
| Owner’s equity: | ||
| Share capital | 689,184,933.00 | 689,184,933.00 |
| Other equity instrument | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Capital public reserve | 778,824,470.95 | 778,824,470.95 |
| Less: Inventory shares | ||
| Other comprehensive income | ||
| Reasonable reserve | ||
| Surplus public reserve | 32,673,227.01 | 32,673,227.01 |
| Retained profit | -1,214,469,389.09 | -1,215,381,715.79 |
| Total owner’ s equity | 286,213,241.87 | 285,300,915.17 |
| Total liabilities and owner’ s equity | 350,291,728.42 | 363,244,013.17 |
3. Consolidated Profit Statement
Unit: RMB/CNY
| Item | Semi-annual of 2023 | Semi-annual of 2022 |
| I. Total operation revenue | 292,999,162.50 | 106,665,446.58 |
| Including:Operation revenue | 292,999,162.50 | 106,665,446.58 |
| Interest income | ||
| Insurance gained | ||
| Commission charge and commission income | ||
| II. Total operation cost | 285,545,357.24 | 108,203,953.12 |
| Including:Operation cost | 278,484,152.74 | 100,215,639.64 |
| 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 surcharge | 129,697.74 | 42,512.73 |
| Sales expenses | 2,522,214.01 | 2,423,889.53 |
| Administration expenses | 4,130,652.80 | 4,855,763.49 |
| R&D expenses | 336,970.90 | 694,172.50 |
| Finance expenses | -58,330.95 | -28,024.77 |
| Including:Interest expenses | ||
| Interest income | 70,100.25 | 47,897.11 |
| Add: Other income | 2,092.35 | 153,395.80 |
| Investment income (Loss is listed with “-”) | ||
| Including:Investment income on affiliated company and joint venture | ||
| The termination of income recognition for financial assets measured by amortized cost | ||
| Exchange income (Loss is listed with “-”) | ||
| Net exposure hedging income (Loss is listed with “-”) | ||
| Income from change of fair value (Loss is listed with “-”) | ||
| Loss of credit impairment (Loss is listed with “-”) | 328,289.79 | -42,610.48 |
| Impairment loss on assets(Loss is listed with “-”) |
| Income from assets disposal (Loss is listed with “-”) | ||
| III. Operation profit (Loss is listed with “-”) | 7,784,187.40 | -1,427,721.22 |
| Add: Non-operating income | 1,253,150.81 | 224,228.84 |
| Less: Non-operating expense | 1,462,822.69 | |
| IV. Total profit (Loss is listed with “-”) | 7,574,515.52 | -1,203,492.38 |
| Less: Income tax expenses | 1,637,455.56 | 19,647.32 |
| V. Net profit (Net loss is listed with “-”) | 5,937,059.96 | -1,223,139.70 |
| (i) Classify by business continuity | ||
| 1.Continuous operating net profit (net loss listed with ‘-”) | 5,937,059.96 | -1,223,139.70 |
| 2.Termination of net profit (net loss listed with ‘-”) | ||
| (ii) Classify by ownership | ||
| 1.Net profit attributable to shareholders of parent company (net loss listed with ‘-”) | 4,862,298.90 | -1,483,364.42 |
| 2.Minority shareholders’ gains and losses (net loss listed with ‘-”) | 1,074,761.06 | 260,224.72 |
| VI. Net other comprehensive income after taxation | ||
| Net other comprehensive income attributable to owners of parent company after taxation | ||
| (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 other comprehensive income attributable to minority shareholders after taxation | ||
| VII. Total comprehensive income | 5,937,059.96 | -1,223,139.70 |
| Total comprehensive income attributable to owners of parent Company | 4,862,298.90 | -1,483,364.42 |
| Total comprehensive income attributable to minority shareholders | 1,074,761.06 | 260,224.72 |
| VIII. Earnings per share: | ||
| (i)Basic EPS | 0.0071 | -0.0027 |
| (ii)Diluted EPS | 0.0071 | -0.0027 |
As for the enterprise combined under the same control, net profit of 0.00Yuan achieved by the merged party before combinationwhile 0.00 Yuan achieved last period.Legal Representative: Wang Shenghong Person in charge of Accounting Works: Sun Longlong Person in charge ofAccounting Institution: She Hanxing
4. Profit Statement of Parent Company
Unit: RMB/CNY
| Item | Semi-annual of 2023 | Semi-annual of 2022 |
| I. Operation revenue | 26,202,365.96 | 5,996,233.35 |
| Less: Operation cost | 23,417,894.55 | 5,911,047.94 |
| Tax and surcharge | 31,208.15 | 3,461.00 |
| Sales expenses | 120,346.23 | 208,571.68 |
| Administration expenses | 2,129,147.35 | 1,657,764.39 |
| R&D expenses | 694,172.50 | |
| Finance expenses | -39,733.30 | 376.23 |
| Including:Interest expenses | ||
| Interest income | 43,606.56 | 8,757.31 |
| Add: Other income | 2,085.77 | 126,559.52 |
| Investment income (Loss is listed with “-”) | ||
| Including:Investment income on affiliated company and joint venture | ||
| The termination of income recognition for financial assets measured by amortized cost(Loss is listed with “-”) | ||
| Net exposure hedging income (Loss is listed with “-”) | ||
| Income from change of fair value (Loss is listed with “-”) | ||
| Loss of credit impairment (Loss is listed with “-”) | 648,901.39 | 373,126.96 |
| Impairment loss on assets(Loss is listed with “-”) | ||
| Income from assets disposal (Loss is listed with “-”) |
| II. Operation profit(Loss is listed with “-”) | 1,194,490.14 | -1,979,473.91 |
| Add: Non-operating income | 1,253,150.81 | |
| Less: Non-operating expense | 1,452,347.65 | |
| III. Total profit (Total losses are listed with “-”) | 995,293.30 | -1,979,473.91 |
| Less: Income tax expenses | 82,966.60 | |
| IV. Net profit (Net loss is listed with “-”) | 912,326.70 | -1,979,473.91 |
| (i)Continuous operating net profit (net loss listed with ‘-”) | 912,326.70 | -1,979,473.91 |
| (ii)Termination of net profit (net loss listed with ‘-”) | ||
| V. Net other comprehensive income after taxation | ||
| (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 | 912,326.70 | -1,979,473.91 |
| VII. Earnings per share: | ||
| (i)Basic EPS | ||
| (ii)Diluted EPS |
5. Consolidated Cash Flow Statement
Unit: RMB/CNY
| Item | Semi-annual of 2023 | Semi-annual of 2022 |
| I. Cash flows arising from operating |
| activities: | ||
| Cash received from selling commodities and providing labor services | 428,649,719.53 | 121,516,272.43 |
| Net increase of customer deposit and interbank deposit | ||
| Net increase of loan from central bank | ||
| Net increase of capital borrowed from other financial institution | ||
| Cash received from original insurance contract fee | ||
| Net cash received from reinsurance business | ||
| Net increase of insured savings and investment | ||
| Cash received from interest, commission charge and commission | ||
| Net increase of capital borrowed | ||
| Net increase of capital from repurchase business | ||
| Net cash received by agents in sale and purchase of securities | ||
| Write-back of tax received | 12,115.99 | |
| Other cash received concerning operating activities | 13,328,115.67 | 8,729,547.22 |
| Subtotal of cash in-flow arising from operation activity | 441,977,835.20 | 130,257,935.64 |
| Cash paid for purchasing commodities and receiving labor service | 464,456,329.67 | 121,691,508.77 |
| 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, handling charge and commission | ||
| Cash paid for bonus of guarantee slip | ||
| Cash paid to/for staff | 3,788,625.70 | 4,158,381.02 |
| Taxes paid | 3,747,529.15 | 606,498.30 |
| Other cash paid concerning operating activities | 5,349,724.34 | 13,081,024.07 |
| Subtotal of cash out-flow arising from operation activity | 477,342,208.86 | 139,537,412.16 |
| Net cash flow arising from operating activities | -35,364,373.66 | -9,279,476.52 |
| II. Cash flows arising from investing activities: | ||
| Cash received from recovering investment | ||
| Cash received from investment income |
| Net cash received from disposal of fixed, intangible and other long-term assets | ||
| Net cash received from disposal of subsidiaries and other units | ||
| Other cash received concerning investing activities | ||
| Subtotal of cash in-flow arising from investment activity | ||
| Cash paid for purchasing fixed, intangible and other long-term assets | 36,959.63 | |
| Cash paid for investment | ||
| Net increase of mortgaged loans | ||
| Net cash received from subsidiaries and other units obtained | ||
| Other cash paid concerning investing activities | ||
| Subtotal of cash out-flow arising from investment activity | 36,959.63 | |
| Net cash flow arising from investment activities | -36,959.63 | |
| III. Cash flows arising from financing activities: | ||
| Cash received from absorbing investment | ||
| Including: Cash received from absorbing minority shareholders’ investment by subsidiaries | ||
| Cash received from loans | ||
| Other cash received concerning financing activities | ||
| Subtotal of cash in-flow arising from financing activity | ||
| Cash paid for settling debts | ||
| Cash paid for dividend and profit distributing or interest paying | ||
| Including: Dividend and profit of minority shareholder paid by subsidiaries | ||
| Other cash paid concerning financing activities | 245,979.70 | |
| Subtotal of cash out-flow arising from financing activity | 245,979.70 | |
| Net cash flow arising from financing activities | -245,979.70 | |
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | ||
| V. Net increase of cash and cash equivalent | -35,364,373.66 | -9,562,415.85 |
| Add: Balance of cash and cash equivalents at the period -begin | 50,922,869.35 | 33,246,957.92 |
| VI. Balance of cash and cash equivalents at the period -end | 15,558,495.69 | 23,684,542.07 |
6. Cash Flow Statement of Parent Company
Unit: RMB/CNY
| Item | Semi-annual of 2023 | Semi-annual of 2022 |
| I. Cash flows arising from operating activities: | ||
| Cash received from selling commodities and providing labor services | 238,002,296.41 | 10,765,611.52 |
| Write-back of tax received | 3,514.92 | |
| Other cash received concerning operating activities | 89,429,332.20 | 13,130,352.74 |
| Subtotal of cash inflow arising from operating activities | 327,431,628.61 | 23,899,479.18 |
| Cash paid for purchasing commodities and receiving labor service | 128,040,000.00 | 4,165,593.61 |
| Cash paid to/for staff and workers | 648,889.48 | 1,015,793.35 |
| Taxes paid | 1,447,813.31 | 50,875.97 |
| Other cash paid concerning operating activities | 155,328,861.74 | 25,816,755.85 |
| Subtotal of cash outflow arising from operating activities | 285,465,564.53 | 31,049,018.78 |
| Net cash flow arising from operating activities | 41,966,064.08 | -7,149,539.60 |
| II. Cash flows arising from investing activities: | ||
| Cash received from recovering investment | ||
| Cash received from investment income | ||
| Net cash received from disposal of fixed, intangible and other long-term assets | ||
| Net cash received from disposal of subsidiaries and other units | ||
| Other cash received concerning investing activities | ||
| Subtotal of cash inflow from investing activities | ||
| Cash paid for purchasing fixed, intangible and other long-term assets | 4,900.97 | |
| Cash paid for investment | 75,000,000.00 | |
| Net cash received from subsidiaries and other units obtained | ||
| Other cash paid concerning investing activities |
| Subtotal of cash outflow from investing activities | 75,000,000.00 | 4,900.97 |
| Net cash flow arising from investment activities | -75,000,000.00 | -4,900.97 |
| III. Cash flows arising from financing activities: | ||
| Cash received from absorbing investment | ||
| Cash received from loans | ||
| Other cash received concerning financing activities | ||
| Subtotal of cash inflow from financing activities | ||
| Cash paid for settling debts | ||
| Cash paid for dividend and profit distributing or interest paying | ||
| Other cash paid concerning financing activities | 174,936.00 | |
| Subtotal of cash outflow from financing activities | 174,936.00 | |
| Net cash flow arising from financing activities | -174,936.00 | |
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | ||
| V. Net increase of cash and cash equivalents | -33,033,935.92 | -7,329,376.57 |
| Add: Balance of cash and cash equivalents at the period -begin | 40,403,702.70 | 7,613,043.60 |
| VI. Balance of cash and cash equivalents at the period -end | 7,369,766.78 | 283,667.03 |
7. Statement of Changes in Owners’ Equity (Consolidated)
Current Amount
Unit: RMB/CNY
| Item | Semi-annual of 2023 | ||||||||||||||
| Owners’ equity attributable to the parent Company | Minority interests | Total owner’ s equity | |||||||||||||
| Share capital | Other equity instrument | Capital public reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus public reserve | Provision of general risk | Retained profit | Other | Subtotal | |||||
| Preferred stock | Perpetual capital secu | Other | |||||||||||||
| rities | |||||||||||||||
| I. The ending balance of the previous year | 689,184,933.00 | 778,824,470.95 | 32,673,227.01 | -1,210,553,312.45 | 290,129,318.51 | 14,718,231.05 | 304,847,549.56 | ||||||||
| 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 | 689,184,933.00 | 778,824,470.95 | 32,673,227.01 | -1,210,553,312.45 | 290,129,318.51 | 14,718,231.05 | 304,847,549.56 | ||||||||
| III. Increase/ Decrease in the period (Decrease is listed with “-”) | 4,862,298.90 | 4,862,298.90 | 1,074,761.06 | 5,937,059.96 | |||||||||||
| (i) Total comprehensive income | 4,862,298.90 | 4,862,298.90 | 1,074,761.06 | 5,937,059.96 | |||||||||||
| (ii) Owners’ devoted and decreased capital | |||||||||||||||
| 1.Common shares invested by shareholders | |||||||||||||||
| 2. Capital invested by holders of other equity |
| instruments | |||||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | |||||||||||||||
| 4. Other | |||||||||||||||
| (iii) Profit distribution | |||||||||||||||
| 1. Withdrawal of surplus reserves | |||||||||||||||
| 2. Withdrawal of general risk provisions | |||||||||||||||
| 3. Distribution for owners (or shareholders) | |||||||||||||||
| 4. Other | |||||||||||||||
| (iv) Carrying forward internal owners’ equity | |||||||||||||||
| 1. Capital reserves conversed to capital (share capital) | |||||||||||||||
| 2. Surplus reserves conversed to capital (share capital) | |||||||||||||||
| 3. Remedying loss with surplus |
| reserve | |||||||||||||||
| 4. Carry-over retained earnings from the defined benefit plans | |||||||||||||||
| 5. Carry-over retained earnings from other comprehensive income | |||||||||||||||
| 6. Other | |||||||||||||||
| (v) Reasonable reserve | |||||||||||||||
| 1. Withdrawal in the report period | |||||||||||||||
| 2. Usage in the report period | |||||||||||||||
| (vi) Others | |||||||||||||||
| IV. Balance at the end of the period | 689,184,933.00 | 778,824,470.95 | 32,673,227.01 | -1,205,691,013.55 | 294,991,617.41 | 15,792,992.11 | 310,784,609.52 |
Amount of the previous period
Unit: RMB/CNY
| Item | Semi-annual of 2022 | ||||||||||||||
| Owners’ equity attributable to the parent Company | Minority interests | Total owner’ s equity | |||||||||||||
| Share capital | Other equity instrument | Capital public reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus public reserve | Provision of general risk | Retained profit | Other | Subtotal | |||||
| Preferred stock | Perpetual capital securities | Other | |||||||||||||
| I. The ending balance of | 551,347, | 627,834, | 32,673,2 | -1,20 | 8,918,53 | 15,084,1 | 24,002,7 | ||||||||
| the previous year | 947.00 | 297.85 | 27.01 | 2,936,933.70 | 8.16 | 95.52 | 33.68 | ||||||||
| Add: Changes of accounting policy | |||||||||||||||
| Error correction of the last period | |||||||||||||||
| Enterprise combine under the same control | |||||||||||||||
| Other | |||||||||||||||
| II. The beginning balance of the current year | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,202,936,933.70 | 8,918,538.16 | 15,084,195.52 | 24,002,733.68 | ||||||||
| III. Increase/ Decrease in the period (Decrease is listed with “-”) | -1,483,364.42 | -1,483,364.42 | 260,224.72 | -1,223,139.70 | |||||||||||
| (i) Total comprehensive income | -1,483,364.42 | -1,483,364.42 | 260,224.72 | -1,223,139.70 | |||||||||||
| (ii) Owners’ devoted and decreased capital | |||||||||||||||
| 1.Common shares invested by shareholders | |||||||||||||||
| 2. Capital invested by holders of other equity instruments | |||||||||||||||
| 3. Amount reckoned |
| into owners equity with share-based payment | |||||||||||||||
| 4. Other | |||||||||||||||
| (iii) Profit distribution | |||||||||||||||
| 1. Withdrawal of surplus reserves | |||||||||||||||
| 2. Withdrawal of general risk provisions | |||||||||||||||
| 3. Distribution for owners (or shareholders) | |||||||||||||||
| 4. Other | |||||||||||||||
| (iv) Carrying forward internal owners’ equity | |||||||||||||||
| 1. Capital reserves conversed to capital (share capital) | |||||||||||||||
| 2. Surplus reserves conversed to capital (share capital) | |||||||||||||||
| 3. Remedying loss with surplus reserve | |||||||||||||||
| 4. Carry-over retained |
| earnings from the defined benefit plans | |||||||||||||||
| 5. Carry-over retained earnings from other comprehensive income | |||||||||||||||
| 6. Other | |||||||||||||||
| (v) Reasonable reserve | |||||||||||||||
| 1. Withdrawal in the report period | |||||||||||||||
| 2. Usage in the report period | |||||||||||||||
| (vi) Others | |||||||||||||||
| IV. Balance at the end of the period | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,204,420,298.12 | 7,435,173.74 | 15,344,420.24 | 22,779,593.98 |
8. Statement of Changes in Owners’ Equity (Parent Company)
Current Amount
Unit: RMB/CNY
| Item | Semi-annual of 2023 | |||||||||||
| Share capital | Other equity instrument | Capital public reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus public reserve | Retained profit | Other | Total owner’ s equity | |||
| Preferred stock | Perpetual capital securities | Other | ||||||||||
| I. The ending balance of the previous year | 689,184,933.00 | 778,824,470.95 | 32,673,227.01 | -1,215,381,715.79 | 285,300,915.17 | |||||||
| Add: Changes of accounting | ||||||||||||
| policy | ||||||||||||
| Error correction of the last period | ||||||||||||
| Other | ||||||||||||
| II. The beginning balance of the current year | 689,184,933.00 | 778,824,470.95 | 32,673,227.01 | -1,215,381,715.79 | 285,300,915.17 | |||||||
| III. Increase/ Decrease in the period (Decrease is listed with “-”) | 912,326.70 | 912,326.70 | ||||||||||
| (i) Total comprehensive income | 912,326.70 | 912,326.70 | ||||||||||
| (ii) Owners’ devoted and decreased capital | ||||||||||||
| 1.Common shares invested by shareholders | ||||||||||||
| 2. Capital invested by holders of other equity instruments | ||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | ||||||||||||
| 4. Other | ||||||||||||
| (iii) Profit distribution | ||||||||||||
| 1. Withdrawal |
| of surplus reserves | ||||||||||||
| 2. Distribution for owners (or shareholders) | ||||||||||||
| 3. Other | ||||||||||||
| (iv) Carrying forward internal owners’ equity | ||||||||||||
| 1. Capital reserves conversed to capital (share capital) | ||||||||||||
| 2. Surplus reserves conversed to capital (share capital) | ||||||||||||
| 3. Remedying loss with surplus reserve | ||||||||||||
| 4. Carry-over retained earnings from the defined benefit plans | ||||||||||||
| 5. Carry-over retained earnings from other comprehensive income | ||||||||||||
| 6. Other | ||||||||||||
| (v) Reasonable reserve |
| 1. Withdrawal in the report period | ||||||||||||
| 2. Usage in the report period | ||||||||||||
| (vi) Others | ||||||||||||
| IV. Balance at the end of the period | 689,184,933.00 | 778,824,470.95 | 32,673,227.01 | -1,214,469,389.09 | 286,213,241.87 |
Amount of the previous period
Unit: RMB/CNY
| Item | Semi-annual of 2022 | |||||||||||
| Share capital | Other equity instrument | Capital public reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus public reserve | Retained profit | Other | Total owner’ s equity | |||
| Preferred stock | Perpetual capital securities | Other | ||||||||||
| I. The ending balance of the previous year | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,209,007,579.78 | 2,847,892.08 | |||||||
| Add: Changes of accounting policy | ||||||||||||
| Error correction of the last period | ||||||||||||
| Other | ||||||||||||
| II. The beginning balance of the current year | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,209,007,579.78 | 2,847,892.08 | |||||||
| III. Increase/ Decrease in the period (Decrease is listed with “-”) | -1,979,473.91 | -1,979,473.91 | ||||||||||
| (i) Total comprehensive income | -1,979,473.91 | -1,979,473.91 | ||||||||||
| (ii) Owners’ devoted and decreased capital | ||||||||||||
| 1.Common shares invested by shareholders | ||||||||||||
| 2. Capital invested by holders of other equity instruments | ||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | ||||||||||||
| 4. Other | ||||||||||||
| (iii) Profit distribution | ||||||||||||
| 1. Withdrawal of surplus reserves | ||||||||||||
| 2. Distribution for owners (or shareholders) | ||||||||||||
| 3. Other | ||||||||||||
| (iv) Carrying forward internal owners’ equity | ||||||||||||
| 1. Capital reserves conversed to capital (share |
| capital) | ||||||||||||
| 2. Surplus reserves conversed to capital (share capital) | ||||||||||||
| 3. Remedying loss with surplus reserve | ||||||||||||
| 4. Carry-over retained earnings from the defined benefit plans | ||||||||||||
| 5. Carry-over retained earnings from other comprehensive income | ||||||||||||
| 6. Other | ||||||||||||
| (v) Reasonable reserve | ||||||||||||
| 1. Withdrawal in the report period | ||||||||||||
| 2. Usage in the report period | ||||||||||||
| (vi) Others | ||||||||||||
| IV. Balance at the end of the period | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,210,987,053.69 | 868,418.17 |
III. Company Profile
1. History and basic information
According to the Approval Document SFBF (1991) No. 888 issued by the People’s Government of Shenzhen,
Shenzhen China Bicycle Company (Holdings) Limited (hereinafter referred to as the CBC) was reincorporated asthe company limited by shares in November 1991. On 28 December 1991, upon the Approval DocumentSRYFZ(1991) No. 119 issued by Shenzhen Special Economic Zone Branch of the People’s Bank of China, theCompany got listed on Shenzhen Stock Exchange. Registered of the Company amounted as 689,184,933.00 Yuan.Legal Representative: Wang Shenghong。Location: No. 3008, Buxin Road, Luohu District, ShenzhenCertificate for Uniform Social Credit Code:914403006188304524.
2. Business nature and main operation activities
The Company's industry: machinery manufacturing industryMain business activities: general business items: Research & development of the bicycles, electric bicycles,electric motorcycles, motorcycles, electric tricycles, electric four-wheeler, children's bicycles, exercise bikes,sports equipment, mechanical products, toys, electric toys, electronic products, new energy equipment andstorage equipment (lithium batteries, batteries, etc.), household appliances and spare parts, and electroniccomponents; wholesale, retail, import and export and related supporting business of above-mentioned products(excluding commodities subject to state trade management, handling the application according to the relevantnational regulations for commodities involving quotas, license management and other special provisions andmanagement,); fine chemical products (excluding dangerous goods), wholesale and retail of carbon fibercomposite materials; technology development of computer software, transfer of self-developed technologicalachievements, and providing relevant technical information consultation; own property leasing; propertymanagement. (The above projects do not involve special administrative measures for the implementation accessof national regulations, and those involving restricted projects and pre-existing administrative licenses mustobtain the pre-existing administrative licensing documents before operation.) ; jewelry wholesales; jewelryretail and manufacturing, management services of the supply chain. (conducts business activities in line with thelaw independently except for the items that must be approved by laws), Licensed items: manufacturing thebicycles, electric bicycles, electric motorcycles, motorcycles, electric tricycles, electric four-wheeler, children'sbicycles, exercise bikes, sports equipment, mechanical products, toys, electric toys, electronic products, newenergy equipment and storage equipment (lithium batteries, batteries, etc.), household appliances and spareparts, and electronic components. (The above projects do not involve special administrative measures for theimplementation access of national regulations, and those involving restricted projects and pre-existingadministrative licenses must obtain the pre-existing administrative licensing documents before operation.)Main products or services currently offered are: EMMELLE bicycles, electrical bicycles, lithium battery materialand gold jewelry.
3. Release of the financial report
The Financial Report was approved to report at the 6
th
Session of 11
th
BOD of CBC on 25 August 2023.
4.Scope of the consolidate statement
The CBC has two subsidiaries and one sub-subsdiary included in the scope of consolidated financial statement,refer to the Note VIII-1.IV. Compilation Basis of Financial Statement
1. Compilation Basis
The financial statement is prepared based on continuing operation assumptions, and according to actualoccurrence, in line with relevant accounting rules and follow important accounting policy and estimation.
2. Going concern
During the 12 months since end of the reporting period, there are no factors that cast significant doubt on thesustainability and other matters that have affected the Company.
V. Main accounting policy and Accounting EstimateTips for specific accounting policy and estimate:
Nil
1. Declaration on compliance with accounting standards for business enterprise
The financial statement prepared by the CBC Company, based on follow compilation basis, is comply with therequirement of new accounting standards for business enterprise issued by Ministry of Finance and its applicationguide, commentate as well as other regulations (collectively referred to as Accounting Standards for BusinessEnterprise), which is reflect a real and truth financial status of the Company, as well as operation results and cashflow situations.Furthermore, the statement has reference to the listing and disclosure requirement from “Rules Governing theDisclosure of Information for Enterprise with Stock Listed No.15-general regulation of financial report” (2014Revised) and “Notice on Implementation of New Accounting Standards for Listed Companies” (KJBH (2018) No.453)
2. Accounting period
Calendar year is the accounting period for the CBC, which is starting from 1 January to 31 December.
3. Business cycles
The business period for the Company, which is the Gregorian calendar starting from 1 January to 31 December
4. Book-keeping currency
The CBC takes RMB as the standard currency for bookkeeping.
5. Accounting treatment for business combinations under the same control and those not under the samecontrol
(1) Accounting treatment for business combinations under the same control and those not under the same controlFor a business merger that is under the same control and is achieved by the CBC through one single transaction ormultiple transactions, assets and liabilities obtained from that business combination shall be measured at theirbook value at the combination date as recorded by the party being absorbed in the consolidated financial statementof ultimate controlling party. Capital reserve shall be adjusted as per the difference between the book value ofobtained net assets and the book value of paid consolidated consideration (or the nominal value of the issuedshares) of the Company; retained earnings shall be adjusted if the capital reserve is not sufficient for offset.
(2) Accounting treatment for Enterprise combine not under the same control
The CBC will validate the difference that the combined cost is more than the fair value of the net identifiableassets gained from the acquiree on the acquisition date as goodwill; where the combined cost is less than the fairvalue of net identifiable assets gained from the acquiree during business combination, the fair value and combinedcost of various identifiable assets, liabilities and contingent liabilities from the acquiree must be rechecked. Wherethe combined cost is, after the recheck, still less than the fair value of net identifiable assets gained from theacquiree during business combination, the difference shall be charged to current profits and losses.As for business combination not under common control and realized through multiple transactions and by steps,the CBC shall make accounting treatment as follows:
1) Adjust the initial investment cost of long-term equity investments. As for stock equities held before theacquisition date accounted according to the equity method, re-measurement is carried out according to the fairvalue of the equity on the acquisition date. The balance between the fair value and the book value is included inthe current investment income. If the acquiree’s stock equities held before the acquisition date involves changes ofother comprehensive incomes and other owner's equities under accounting with the equity method, the balancebetween the fair value and the book value is included in the current investment income on the acquisition date,excluding other comprehensive incomes incurred by changes due to re-measurement of net liabilities or net assets
of the defined benefit plan.
2) Confirm the goodwill (or include the amount in the profits and losses). The initial investment cost of long-termequity investments adjusted in step 1 is compared with the fair value of net identifiable assets of the subsidiaryshared on the acquisition date. If the former is greater than the latter, the balance is confirmed as goodwill; if theformer is less than the latter, the balance is included in the current profits and losses.
Loss of control of a subsidiary in multiple transactions in which it disposes equity interests of its subsidiary instages
(1)In determining whether to account for the multiple transactions as a single transactionA parent shall consider all the terms and conditions of the transactions and their economic effects. One or more ofthe following may indicate that the parent should account for the multiple arrangements as a single transaction:
1) Arrangements are entered into at the same time or in contemplation of each other;
2) Arrangements work together to achieve an overall commercial effect;
3) The occurrence of one arrangement is dependent on the occurrence of at least one other arrangement;
4)One arrangement considered on its own is not economically justified, but it is economically justified whenconsidered together with other arrangements.
(2)Accounting treatment for each of the multiple transactions forming part of a bundled transactions whicheventually results in loss of control the subsidiary during disposal of its subsidiary in stagesIf each of the multiple transactions forms part of a bundled transactions which eventually results in loss of controlthe subsidiary, these multiple transactions should be accounted for as a single transaction. In the consolidatedfinancial statements, the difference between the consideration received and the corresponding percentage of thesubsidiary’s net assets in each transaction prior to the loss of control shall be recognized in other comprehensiveincome and transferred to the profit or loss when the parent eventually loses control of the subsidiary.The remaining equity investment shall be re-measured at its fair value in the consolidated financial statements atthe date when control is lost. The difference between the total amount of consideration received from thetransaction that resulted in the loss of control and the fair value of the remaining equity investment and the shareof net assets of the former subsidiary calculated continuously from the acquisition date or combination date basedon the previous shareholding proportion, shall be recognized as investment income for the current period whencontrol is lost. The amount previously recognized in other comprehensive income in relation to the formersubsidiary’s equity investment should be transferred to investment income for the current period when control islost
(3)Accounting treatment for each of the multiple transactions NOT forming part of a bundled transactions whicheventually results in loss of control the subsidiary during disposal of its subsidiary in stages
If the Company doesn't lose control of investee, the difference between the amount of the consideration receivedand the corresponding portion of net assets of the subsidiary shall be adjusted to the capital reserve (capital /equitypremium) in the consolidated financial statements.If the Company loses control of investee, the remaining equity investment shall be re-measured at its fair value inthe consolidated financial statements at the date when control is lost. The difference between the total amount ofconsideration received from the transaction that resulted in the loss of control and the fair value of the remainingequity investment and the share of net assets of the former subsidiary calculated continuously from the acquisitiondate or combination date based on the previous shareholding percentage, shall be recognized as investmentincome for the current period when control is lost. The amount previously recognized in other comprehensiveincome in relation to the former subsidiary’s equity investment should be transferred to investment income for thecurrent period when control is lost.
6. Compilation method of consolidated financial statement
Consolidated financial statements are prepared by the Company in accordance with Accounting Standard forBusiness Enterprise No. 33-Consolidated Financial Statements and based on financial statements of parentcompany and its subsidiaries and other related information.When consolidating the financial statements, the following items are eliminated: internal equity investment andowners’ equity of subsidiaries, proceeds on internal investments and profit distribution of subsidiaries, internaltransactions, internal debts and claim. The accounting policies adopted by subsidiaries are the same as parentcompany.
7. Classification of joint venture arrangement and accounting treatment for joint control
(1) Recognition and classification of joint venture arrangement
Joint arrangement refers to an arrangement controlled by two or more than two participants. Joint venturearrangement has the following characteristics: 1) Each participant is bound by the arrangement; 2) Two or moreparticipants carry out joint control on implementation of the arrangement. Any participant cannot control thearrangement independently. Any participant for joint control can stop other participants or participantcombinations to independently control the arrangement.Joint control refers to the sharing of control over certain arrangement under related agreements, and relatedactivities of the arrangement must be determined only when obtaining the unanimous consent of the partiessharing control.Joint venture arrangement is classified in to joint operation and joint venture. Joint operation refers to anarrangement that a joint party enjoys assets related to the arrangement and bears liabilities related to thearrangement. Joint venture refers to an arrangement that a joint party only has the power governing net assets ofthe arrangement.
(2) Accounting treatment of joint venture arrangement
Joint venture participants should confirm the following items related to interest shares in joint venture and carryout accounting settlement according to relevant provisions of the Accounting Standards for Business Enterprises:
1) confirm the assets held separately and confirm the assets held jointly based on shares; 2) confirm the liabilitiesborne separately and confirm the liabilities borne jointly based on shares; 3) confirm the income incurred afterselling its shares in joint venture output; 4) confirm the income after selling the joint venture outputs based onshares; 5) confirm the expenses incurred separately and confirm the expenses incurred in joint venture based onshares.Joint venture participants should carry out accounting settlement for investments of the joint venture according toprovisions of Accounting Standards for Business Enterprises No.2–Long-term Equity Investments.
8. Recognition of cash and cash equivalents
Cash in cash flow statement means the inventory cash and savings available for use anytime. Cash equivalentsrefer to the short-term (generally due within three months since the date of purchase) highly liquid investmentsthat are readily convertible into known amounts of cash and that are subject to an insignificant risk of change invalue.
9. Foreign currency transaction and financial statement conversion
(1)Conversion for foreign currency transaction
When initially recognized, the foreign currency for the transaction shall be converted into CNY amount accordingto the spot exchange rate on the date of transaction. For the foreign currency monetary items, conversion must bebased on the spot exchange rate on the balance sheet date and the exchange difference incurred from differentexchange rates, except for the exchange difference of principal and interest incurred due to foreign currency loanrelated to acquisition or construction of assets that qualify for capitalization, shall be charged to current profits andlosses; foreign currency non-monetary items measured with historical cost are still converted as per the spotexchange rate on the transaction date and keep the RMB amount unchanged; foreign currency non-monetary itemsmeasured with fair value shall be converted as per the spot exchange rate on the date of determining the fair valueand the difference shall be charged to current profits and losses or other comprehensive income.
(2)Conversion of financial statements presented in foreign currencies
The asset and liability items in the balance sheet shall be converted at the spot exchange rate on the balancesheet date; the owner’s equity items, except for the items of “Retained profit”, shall be converted at the spotexchange rate on the transaction date; the income and expenditure items in the profit statement shall beconverted at the spot exchange rate on the transaction date. The translation difference of foreign financialstatements conducted as above is recognized as other comprehensive incomes.
10. Financial instruments
(1) Recognition and termination for financial instrument
Financial assets or financial liabilities are recognized when the CBC becomes a party to the contractual provisionsof the instrument.
When buying and selling financial assets in a conventional manner, recognize and derecognize them according tothe accounting of the trading day. Buying and selling financial assets in a conventional manner refers to thecollection or delivery of financial assets in accordance with the contract terms and within the period prescribed byregulations or prevailing practices. Trading day refers to the date when the CBC promises to buy or sell financialassets.
When meeting the following conditions, a financial asset (or part of a financial asset, or part of a group of similarfinancial assets) need terminate recognition, i.e. to write off from its account and balance sheet:
1) The right to receive cash flows from financial assets expires;
2) The right to receive cash flows of financial assets is transferred, or assume the obligation to pay the full amountof cash flows received to a third party in a timely manner under the “handover agreement”; and (a) virtuallytransferred almost all risks and rewards of the ownership of financial assets, or (b) although virtually neithertransferred nor retained almost all risks and rewards of the ownership of financial assets, abandoned the control ofthe financial assets.
(2) Classification and measurement of financial assets
The CBC’s financial assets are classified as financial assets measured at amortized cost, financial assets measuredat fair value and whose changes are included in other comprehensive income, and financial assets measured at fairvalue and whose changes are included in the current profit and loss according to the CBC’s business model formanaging financial assets and the contractual cash flow characteristics of financial assets at initial recognition.The subsequent measurement of financial assets depends on their classification.The CBC’s classification of financial assets is based on CBC’s business model for managing financial assetsand the cash flow characteristics of financial assets.
1)Financial assets measured at amortized cost
Financial assets that meet the following conditions at the same time are classified as financial assets measured atamortized cost: the Company’s business model for managing this financial asset is to collect contractual cash
flows; the contract terms of the financial asset stipulate that the cash flow generated on a specific date is only thepayment of principal and interest based on the outstanding principal amount. For such financial assets, the actualinterest rate method is used for subsequent measurement based on amortized cost, and the gains or losses arisingfrom amortization or impairment are included in the current profit and loss.
2)Debt instrument investments measured at fair value and whose changes are included in other comprehensiveincomeFinancial assets that meet the following conditions at the same time are classified as financial assets measuredat fair value and whose changes are included in other comprehensive income: the Company’s business modelfor managing this financial asset is to both collect contractual cash flows and sell the financial assets; thecontract terms of the financial asset stipulate that the cash flow generated on a specific date is only for thepayment of principal and interest based on the outstanding principal amount. For such financial assets, fairvalue is used for subsequent measurement. The discount or premium is amortized by using the actual interestmethod and is recognized as interest income or expenses. Except that the impairment loss and the exchangedifference of foreign currency monetary financial assets are recognized as current gains and losses, changes inthe fair value of such financial assets are recognized as other comprehensive income, until the financial asset isderecognized, its cumulative gains or losses are transferred to the current profit and loss. Interest income relatedto such financial assets is included in the current profit and loss.
3)Equity instrument investments measured at fair value and whose changes are included in other comprehensiveincomeThe CBC irrevocably chooses to designate some non-trading equity instrument investments as financial assetsmeasured at fair value and whose changes are included in other comprehensive income. Only relevant dividendincome is included in the current profit and loss, and changes in fair value are recognized as other comprehensiveincome, until the financial asset is terminate recognition, its accumulated gains or losses are transferred to retainedearnings.
4) Financial assets measured at fair value and whose changes are included in the current profit and lossFinancial assets except for above financial assets measured at amortized cost and financial assets measured at fairvalue and whose changes are included in other comprehensive income are classified as financial assets measuredat fair value and whose changes are included in the current profit and loss. During initial recognition, in order toeliminate or significantly reduce accounting mismatches, financial assets can be designated as financial assetsmeasured at fair value and whose changes included in the current profit and loss. For such financial assets, fairvalue is used for subsequent measurement, and all changes in fair value are included in the current profit and loss.
When and only when the Company changes its business model for managing financial assets, it will reclassify all
affected related financial assets. For financial assets measured at fair value and whose changes are included in thecurrent profit or loss, the related transaction costs are directly included in the current profit and loss, and therelated transaction costs of other types of financial assets are included in the initial recognition amount.
(3) Classification and measurement of financial liabilities
The CBC’s financial liabilities are classified as financial liabilities measured at amortized cost and financialliabilities measured at fair value and whose changes are included in the current profit and loss at initial recognition.
Financial liabilities that meet one of the following conditions can be designated as financial liabilities measured atfair value and whose changes are included in current profit or loss during initial measurement: (1) Thisdesignation can eliminate or significantly reduce accounting mismatches; (2) According to the group riskmanagement or investment strategies stated in official written documents, management and performanceevaluation of financial liability portfolios or financial assets and financial liability portfolios are conducted basedon fair value, and are reported to key management personnel within the group on this basis; (3) The financialliability includes embedded derivatives that need to be split separately.
The CBC determines the classification of financial liabilities at initial recognition. For financial liabilities that aremeasured at fair value and whose changes are included in the current profit or loss, the related transaction costsare directly included in the current profit and loss, and the related transaction costs of other financial liabilities areincluded in its initial recognition amount.The subsequent measurement of financial liabilities depends on their classification:
1)Financial liabilities measured at amortized cost
For such financial liabilities, adopt actual interest rate method and make subsequent measurements based onamortized costs.
2)Financial liabilities measured at fair value and whose changes are included in the current profit and loss
Financial liabilities that are measured at fair value and whose changes are included in the current profit or lossinclude trading financial liabilities (including derivatives that are financial liabilities) and financial liabilitiesdesignated to be measured at fair value at the initial recognition and whose changes are included in the currentprofit or loss.
(4) Financial instruments offset
If the following conditions are met at the same time, the financial assets and financial liabilities are listed in thebalance sheet with the net amount after mutual offset: legal right to offset the confirmed amount, and this legalright is currently executable; Net settlement, or simultaneous realization of the financial assets and liquidation ofthe financial liabilities.
(5)Impairment of financial assets
The CBC recognizes the loss provisions on the basis of expected credit losses for financial assets measured atamortized cost, debt instrument investments measured at fair value and whose changes are included in othercomprehensive income and financial guarantee contracts. Credit loss refers to the difference between allcontractual cash flows receivable under the contract and discounted according to original actual interest rate bythe CBC and all expected receivable cash flows, that is, the present value of all cash shortages.
The CBC considers all reasonable and evidence-based information, including forward-looking information, andestimates the expected credit loss of financial assets measured at amortized cost and financial assets measured atfair value and whose changes are included in other comprehensive income (debt instruments) in a single orcombined manner.
1)General model of expected credit loss
If the credit risk of the financial instrument has increased significantly since the initial recognition, the CBCmeasures its loss provisions in accordance with the amount equivalent to the expected credit loss of thefinancial instrument for the entire duration; if the credit risk of the financial instrument has not significantlyincreased since the initial recognition, the CBC measures its loss provisions in accordance with the amountequivalent to the expected credit loss of the financial instrument in the next 12 months. The resulting increasedor reversed amount of the loss provisions is included in the current profit and loss as an impairment loss or gain.For the CBC’s specific assessment of credit risk, please see details in Note IX. Risks Related to FinancialInstruments”.
Generally, the CBC believes that the credit risk of the financial instrument has significantly increased when itexceeds 30 days after the due date, unless there is concrete evidence that the credit risk of the financial instrumenthas not increased significantly since initial recognition.Specifically, the Company divides the process of credit impairment of financial instruments of which no creditimpairment has occurred at the time of purchase or origin into three stages. There are different accountingtreatment methods for the impairment of financial instruments at different stages:
Stage one: Credit risk has not increased significantly since initial recognition
For a financial instrument at this stage, the enterprise should measure the loss provisions according to theexpected credit losses in the next 12 months, and calculate the interest income based on its book balance (that is,without deducting provisions for impairment) and the actual interest rate (if the instrument is a financial asset, thesame below).
Stage two: Credit risk has increased significantly since initial recognition but no credit impairment has occurred
For a financial instrument at this stage, the enterprise should measure the loss provisions according to theexpected credit loss of the instrument for its entire duration, and calculate the interest income based on its bookbalance and actual interest rate.
Stage three: Credit impairment occurs after initial recognition
For a financial instrument at this stage, the enterprise should measure the loss provisions based on the expectedcredit losses of the instrument for its entire duration, but the calculation of interest income is different from thefinancial assets at the previous two stages. For financial assets that have suffered credit impairment, the enterpriseshould calculate interest income based on its amortized cost (book balance minus the provisions for impairment,i.e., book value) and the actual interest rate.For financial assets that have suffered credit impairment at the time of purchase or origin, the enterprise shouldonly recognize changes in expected credit losses for the entire duration after initial recognition as loss provisions,and calculate the interest income based on its amortized cost and credit-adjusted actual interest rate.
2) The CBC chooses not to compare the financial instrument with lower credit risk on the balance sheet date withits credit risk at initial recognition, but directly makes the assumption that the credit risk of the instrument has notincreased significantly since the initial recognition.
If the enterprise confirms that the default risk of financial instruments is low, the borrower has a strong ability tofulfill its contractual cash flow obligations in the short term, and even if there are adverse changes in the economicsituation and operating environment in a longer period of time, it will not necessarily reduce the borrower’s abilityto fulfill its contractual cash flow obligations, then the financial instrument can be considered to have lower creditrisk.
3)Account receivable and lease receivables
The CBC adopts the simplified model of expected credit loss for accounts receivables specified in “AccountingStandards for Business Enterprises No.14 - Revenue” and without containing significant financing components(including the case that the financing components in contracts that do not exceed one year are not consideredaccording to the standards), that is, always measures their loss provisions according to the amount of expectedcredit loss during the entire duration.
The CBC makes accounting policy choices for the receivables containing significant financing components andthe lease receivables specified in “Accounting Standards for Business Enterprises No.21 - Leases”, and chooses toadopt the simplified model of expected credit losses, that is, to measure the loss provisions in accordance with theamount of expected credit losses throughout the entire duration.
(6) Transfer of financial assets
Where the CBC has transferred almost all the risks and rewards in the ownership of the financial asset to thetransferee, the recognition of the financial assets shall be terminated; where almost all risks and rewards in theownership of a financial asset are retained, the recognition of the financial assets are not terminated.
If the CBC neither transfers nor retains substantially all the risks and rewards of ownership of a financial asset, itshall be accounted for as follows: the financial asset should be terminated if the Group waives control over theasset; it recognizes the financial asset to the extent of its continuing involvement in the transferred financial assetand recognizes an associated liability if the Group does not waives control over the asset.
If the transferred financial assets continue to be involved by providing financial guarantee, the assets continue tobe involved shall be recognized according to the lower of the book value of the financial assets and the amount offinancial guarantee. The financial guarantee amount means the maximum amount of consideration received whichwill be required to be repaid.
The Company shall comply with the disclosure requirement of jewelry-related industries in the “Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 3- Industry Disclosure”Nil
11.Note receivable
The Group adopts the simplified model of expected credit loss for the accounts receivables specified in“Accounting Standards for Business Enterprises No.14 - Revenue” and without containing significant financingcomponents (including the case that the financing components in contracts that do not exceed one year are notconsidered according to the standards), that is, always measures their loss provisions according to the amount ofexpected credit loss during the entire duration, and the resulting increased or reversed amount of the loss provisionis included in the current profit and loss as an impairment loss or gain. The accrual method is as follows:
The CBC divides the bills receivable into two types, i.e. bank acceptance bills and commercial acceptance billsportfolios, according to the type of financial instruments. For bank acceptance bills, the accepting bank pays thedetermined amount to the taker or the bearer unconditionally due to the maturity of the bills, the overdue creditloss is low and has not increased significantly since the initial confirmation, the Company believes that the risk ofoverdue default is 0; for commercial acceptance bills, the Company believes that the probability of default isrelated to the aging, we use a simplified model of expected credit losses, that is the allowance for losses is alwaysmeasured at the amount of expected credit losses over the entire duration period. Proportion for accrual foundmore in the 12. accounting policy and estimate for account receivable in III.
12.Account receivable
The CBC adopts the simplified model of expected credit loss for accounts receivables specified in “AccountingStandards for Business Enterprises No.14 - Revenue” and without containing significant financing components(including the case that the financing components in contracts that do not exceed one year are not consideredaccording to the standards), that is, always measures their loss provisions according to the amount of expectedcredit loss during the entire duration, and the resulting increased or reversed amount of the loss provision isincluded in the current profit and loss as an impairment loss or gain.For accounts receivable that contain a significant financing component, the CBC chooses to use the simplifiedmodel of expected credit losses, that is, to always measure its loss provisions according to the amount of expectedcredit losses during the entire duration.
1. Simplified model of expected credit losses: always measure the loss provisions according to the amount ofexpected credit losses during the entire durationThe CBC considers all reasonable and well-founded information, including estimates of expected credit losseson accounts receivable in a single or combined manner.
(1)Account receivable with single significant amount and with individual provision for bad debt reserves
| Judgment basis or amount criteria for account with single significant amount | Withdrawal method for bad debt provision of account receivable with single significant amount |
| Receivable commercial acceptance bill, account receivable and other receivables with single amount more than 5 million yuan (including) | Carry out impairment test separately, and withdraw bad debt provision according to the difference between the present value of future cash flow and its book value |
(2)Receivables with provision for bad debts by portfolio
| Portfolio determine basis | |
| Age analysis | On the basis of the actual loss rate of the portfolio of receivables with similar credit risk characteristics which are the same or similar in the previous year, for the single amount of non-material receivables, it is divided into several portfolios |
| according to the credit risk characteristics together with the receivables without impairment after the separate test | |
| Other | Bank acceptance |
In the combination, the proportion of bad debt provision withdrawn by aging analysis method is as follow:
| Account age | Accrual proportion of commercial acceptance bill receivable | Withdrawing proportion of the account receivable | Withdrawing proportion of other receivable |
| Within one year(one year included) | 0.3% | 0.3% | 0.3% |
| 1～2 years (2-year included) | 100% | 0.3% | 0.3% |
| 2～3 years (3-year included) | 100% | 0.3% | 0.3% |
| Over 3 years | 100% | 100% | 100% |
| Including:Irrecoverable recognized | Write off | Write off | Write off |
(3)Account receivable with single significant amount and with individual provision for bad debt reserves
| Judgment basis or amount criteria for account with single minor amount | Withdrawal method for bad debt provision of account receivable with single minor amount |
| Receivable commercial acceptance bill, account receivable and other receivables with single amount less than 5 million yuan (including), and the probability of recall is small by nature | Carry out impairment test separately, and withdraw bad debt provision according to the difference between the present value of future cash flow and its book value |
2. A general model of expected credit loss
Found more in the treatment in【Note 10. Financial instrument】
13.Receivable financing
Financial assets that meet the following conditions at the same time are classified as financial assets measured atfair value and whose changes are included in other comprehensive income: the CBC’s business model formanaging this financial asset is to both collect contractual cash flows and sell the financial assets; the contractterms of the financial asset stipulate that the cash flow generated on a specific date is only for the payment ofprincipal and interest based on the outstanding principal amount.
The CBC transfers the receivables held by discounting or endorsement, and such operations are more frequentwith large amount involved. The management business models is essentially both the collection of contractualcash flows and the sales; in accordance with the relevant provision of financial instrument standards, classifiedthem into the financial assets measured at fair value and with its variation reckoned into other comprehensiveincome.
14.Other account receivable
Determination method and accounting treatment of the expected credit loss of other account receivable
(1)Account receivable with single significant amount and with individual provision for bad debt reserves:
Account with single significant amount: the single receivable has over 5 million yuan at end of the period
At the end of the period, the receivables with significant single amount are tested separately for impairment. Ifthere is objective evidence that they have been impaired, the impairment loss will be recognized and the provisionfor bad debts will be made based on the balance between the present value of future cash flows and its book value.
(2)Account receivable with bad debt provision accrual by portfolio
For the receivables with non significant single amount at the end of the period, they are divided into severalcombinations together with the receivables without impairment after independent test according to the account ageas the credit risk feature. The impairment loss is calculated and determined according to a certain proportion ofthe ending balance of these receivables combinations (impairment test can be conducted separately), and the baddebt provision is withdrawn.In addition to the receivables for which impairment provision has been separately made, the company determinesthe following proportion of provision for bad debts based on the actual loss rate of the combination of receivableswith account age as credit risk characteristics in the previous year, which is the same or similar to the receivables,in combination with the current situation:
(2) Age analysis
| Account age | Accrual ratio of account receivable | Accrual ratio of other account receivable |
| Within one year(one year included) | 0.3% | 0.3% |
1～2 years (2-year included)
| 1～2 years (2-year included) | 0.3% | 0.3% |
| 2～3 years (3-year included) | 0.3% | 0.3% |
| Over 3 years | 100% | 100% |
| Including:Irrecoverable recognized | Write off | Write off |
Note: no bad debt provision for account receivable and other account receivable between the companies within the scope ofconsolidation
(3) Account receivable with minor single amount but with bad debt provision accrual
Reasons for individual provision for bad debt: the Company carry out separate impairment test for receivablesthat are not individually significant but have the following characteristics. If there is an objective evidence ofimpairment, an impairment loss is recognized for the difference between the present value of future cash flowand the carrying amount, and a provision for bad debts is made; the receivables in dispute with the other partyor involved in litigation or arbitration; receivables where there are clear indications that the debtor is likely to beunable to meet its repayment obligations.
Accrual method for bad debt provision: if an impairment test is performed separately and there is an objectiveevidence of impairment, an impairment loss is recognized and a provision for bad debt is made on the basis ofthe difference between the present value of future cash flow and the carrying amount.
15.Inventory
The Company shall comply with the disclosure requirement of jewelry-related industries in the “Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 3- Industry Disclosure”
(1) Classification of inventory
The CBC classifies the inventory into raw materials, goods in process, goods on hand, wrap page, low valueconsumables, materials for consigned processing and goods sold, etc.
(2) Valuation of inventories
Inventories are initially measured at cost upon acquisition, which includes procurement costs, processing costsand other costs. Cost of the inventory issued is carried forward on the basis of a combination of the weightedaverage method and specific identification when inventories are issued.
(3) Provision for inventory impairment
When a comprehensive count of inventories is done at the end of the period, provision for inventory impairment isallocated or adjusted using the lower of the cost of inventory and the net realizable value. The net realizable valueof stock in inventory (including finished products, goods in stock and materials for sale) that can be sold directlyis determined using the estimated saleable price of such inventory deducted by the cost of sales and relevanttaxation over the course of ordinary production and operation. The net realizable value of material in inventorythat requires processing is determined using the estimated saleable price of the finished product deducted by thecost to completion, estimated cost of sales and relevant taxation over the course of ordinary production andoperation. The net realizable value of inventory held for performance of sales contract or labor service contract isdetermined based on the contractual price; in case the amount of inventory held exceeds the contractual amount,the net realizable value of the excess portion of inventory is calculated using the normal saleable price.
Provision for impairment is made according to individual items of inventories at the end of the period; however,for inventories with large quantity and low unit price, the provision is made by categories; inventories of productsthat are produced and sold in the same region or with the same or similar purpose or usage and are difficult to bemeasured separately are combined for provision for impairment.
If the factors causing a previous write-off of inventory value has disappeared, the amount written-off is reversedand the amount provided for inventory impairment is reversed and recognized in profit or loss for the period.
(4)Inventory system
Perpetual inventory system is adopted.
16.Contractual assets
1. Method and standard for recognition of contractual assets
The CBC lists contractual assets or contractual liabilities in the balance sheet based on the relationship betweenperformance obligations and customer payments. The CBC's right to receive consideration for goods or servicestransferred to the customer (And that right depends on factors other than the passage of time) is listed ascontractual assets. Contractual assets and contractual liabilities under the same contract are listed as a netamount. The CBC's right to receive consideration from customers unconditionally (only depends on the passageof time) is listed separately as a receivable.
2. Determination and accounting treatment of the expected credit loss for contractual assetsDetermination and accounting treatment of the expected credit loss for contractual assets found more in Note “10.Financial instrument”
17. Contractual cost
Nil
18. Assets held for sale
The CBC classifies such corporate components (or non-current assets) that meet the following criteria as held-for-sale: (1) Disposable immediately under current conditions based on similar transactions for disposals of suchassets or practices for the disposal group; (2) Probable disposal; that is, a decision has been made on a plan fordisposal and an undertaking to purchase has been obtained (the undertaking to purchase means a binding purchaseagreement entered into by the Company and other parties, which contains transaction price, time and adequatelystrict punishments for breach of contract provisions, which renders the possibility of material adjustment orrevocation of the agreement is extremely minor), and the disposal is expected to be completed within a year.Besides, approval from relevant competent authorities or regulatory authorities has been obtained as required byrelevant rules.The expected net residual value of asset held for sale is adjusted by the CBC to reflect its fair value less sellingexpense, provided that the net amount shall not exceed the original carrying value of the asset. In case that theoriginal value is higher than the adjusted expected net residual value, the difference shall be recorded in profit orloss for the period as asset impairment loss, and allowance of impairment for the asset shall be provided.Impairment loss recognized in respect of the disposal group held for sale shall be used to offset the carrying valueof the goodwill in the disposal group, and then offset the carrying value of the non-current assets within thedisposal group based on their respective proportion of their carrying value.
In respect of the non-current assets held for sale, if the net amount after their fair value less the selling expensesincreased as at the subsequent balance date, the reduced amount before will be recovered and reversed in theassets impairment loss amount recognized after being classified as held for sale, and the reversed amount will berecorded in the current profits or loss. The impairment loss on assets recognized before being classified as held forsale will not be reversed. In respect of the disposal group held for sale, if the net amount after their fair value lessthe selling expenses increased as at the subsequent balance date, the reduced amount before will be recovered andreversed in the assets impairment loss amount recognized in non-current assets after being classified as held forsale, and the reversed amount will be recorded in the current profits or loss. The reduced book value of thegoodwill as well as the impairment loss on assets recognized before the non-current assets are classified as heldfor sale will not be reversed.
The amount of subsequent reversal of the impairment losses on assets recognized in disposal group held for sale,shall be increased proportionately to the carrying amount of each non-current asset in the disposal group otherthan goodwill to which the measurement provisions of the is standards applied, based on its proportionate share ofthe carrying amount.
In respect of loss of control in a subsidiary arising from disposal of the investment in such subsidiary, theinvestment in a subsidiary shall be classified as held for sale in its entirety in the individual financial statement ofthe parent company, and all the assets and liabilities of the subsidiary shall be classified as held for sale in theconsolidated financial statement subject to that the proposed disposal of investment in the subsidiary satisfies suchconditions as required for being classified as held for sale notwithstanding part equity investment will be retainedby the Company after such disposal.
19. Debt investment
Nil
20. Other debt investment
Nil
21. Long-term account receivable
Nil
22. Long-term equity investment
(1)Recognition of investment costs
1)If it is formed by the business combination under the common control, and that the combining party takes cashpayment, transfer of non-cash assets, assumption of debts or issuance of equity securities as the consolidation
consideration, the shares of the book value of the owner’s equity obtained from the combined party on the date ofcombination in the ultimate controlling party’s consolidated financial statements shall be recognized as its initialinvestment cost. Capital reserves shall be adjusted according to the balance between the initial investment cost forlong-term equity investment and the book value of paid consolidation consideration or the total face value ofissued shares (capital premium or equity premium). If capital reserves are insufficient for offset, retained earningsshall be adjusted.As for business combination under the common control realized by the Company through several transactions, theinitial investment cost of the investment shall be determined based on the share of the carrying value of theowners’ equity of the consolidated party as calculated according to the shareholding proportion on theconsolidation date. Difference between initial investment cost and the carrying value of long-term equityinvestment before combination and the sum of carrying value of newly paid consideration for additional sharesacquired on the date of combination is to adjust capital reserve (capital premium or equity premium). If thebalance of capital reserve is insufficient, any excess is adjusted to retained earnings.
2) As for long-term equity investment formed from business combination not under common control, the fairvalue of the consolidated consideration paid shall be deemed as the initial investment cost on the acquisition date.
3) Except those ones formed by the business combination, for all items obtained by means of cash payment,actually paid acquisition costs shall be taken as the initial investment cost. For those ones obtained by the issuanceof equity securities, the fair value of the issued equity securities shall be taken as the initial investment cost. Forthose ones invested by investors, the value agreed in the investment contract or agreement shall be taken as theinitial investment cost, provided that the value agreed in the contract or agreement shall be fair.
(2)Subsequent measurement and profit or loss recognition
For a long-term equity investment where the CBC can exercise control over the investee, the long-terminvestment is accounted for using the cost method in the Company’s financial statements. The equity method isadopted when the Group has joint control, or exercises significant influence on the investee.Under cost method, long term equity investment is measured at initial investment cost. Except for the priceactually paid for obtaining the investment or the cash dividends or profits declared but not yet distributed which isincluded in the consideration, the Company recognizes cash dividends or profits declared by the investee ascurrent investment gains, and determine whether there is impairment on long term investment according torelevant assets impairment policies.Under equity method, when the initial investment cost of the long-term equity investment exceeds the share of fairvalue in the net identifiable assets in the investee, the difference shall be included in initial investment cost of thelong-term equity investment. When the initial investment cost is lower than the share of fair value in the netidentifiable asset in the investee, such difference is recognized in profit or loss for the period with adjustment ofcost of the long-term equity investment.
Under equity method, after the Company acquires a long-term equity investment, it shall, in accordance with itsattributable share of the net profit or loss realized by the investee, recognize the investment profit or loss andadjust carrying value of the investment. The Group recognizes its share of the investee’s net profits or losses aftermaking appropriate adjustments to the investee’s net profits and losses based on the fair value of the investee’sidentifiable assets at the acquisition date, using the Group’s accounting policies and periods, and eliminating theportion of the profits or losses arising from internal transactions with its joint ventures and associates, attributableto the investing entity according to its shareholding proportion (but impairment losses for assets arising frominternal transactions shall be recognized in full). The carrying amount of the investment is reduced based on theGroup’s share of any profit distributions or cash dividends declared by the investee. The CBC’s share of net lossesof the investee is recognized to the extent the carrying amount of the investment together with any long-terminterests that in substance form part of its net investment in the investee is reduced to zero, except that the Grouphas the obligations to assume additional losses. The CBC adjusts the carrying amount of the long-term equityinvestment for any changes in owners’ equity of the investee (other than net profits or losses) and includes thecorresponding adjustments in the owners’ equity of the Group.
(3) Determination of control and significant influence on investee
Control is the power over an investee. An investor must have exposure or rights to variable returns from itsinvolvement with the investee, and the ability to use its power over the investee to affect the amount of theinvestor’s returns. Significant influence is the power to participate in the financial and operating policy decisionsof the investee but is not control or joint control with other parties over those policies
(4)Disposal of long-term equity investment
1) Partial disposal of long term investment in which control is retained
When long term investment is been partially disposed but control is retained by the company, the differencebetween disposal proceeds and carrying amount of the proportion being disposed is accounted for through profitor loss.
2) Partial disposal of long term investment in which control is lost
When long term investment is partially disposed and control is lost as a result, the carrying value of the long terminvest on the stock right, the difference between carrying amount of the part being disposed and disposal proceedsshould be recognized as profit or loss. The residual part should be treated as long term investment or otherfinancial assets according to their carrying amount. After partial disposal, if the company is able to exertsignificant influence or common control over the investee, the investment should be measured according to costmethod or equity method, in compliance with relevant accounting standards and regulations.
(5)Impairment test and provision for impairment
If there is objective evidence on the balance sheet date showing investment in subsidiaries, associates and jointventures is impaired, provision of impairment shall be made against the difference between the carrying amount
and the recoverable amount of the investment.
23.Investment real estate
Measurement modeMeasured by cost methodDepreciation or amortization method
(1) Investment real estate including land use right which has been rented out, land use right which is held fortransfer upon appreciation and buildings which has been rented out.
(2) Investment real estate are initially measured at cost and subsequently measured as per the cost pattern, andrelevant withdrawal of provision for depreciation or amortization is carried out by the same method for fixedassets and intangible assets. As of the balance sheet date, where there is any indication that an Investment realestate experiences impairment, the relevant impairment provision shall be provided for based on the differencebetween the carrying value and the recoverable amount.
24.Fix assets
(1) Recognition conditions
Fixed assets refer to the tangible assets for production of products, provision of labor, lease or operation, and with a service life inexcess of one financial year.
Fixed assets are recorded at the actual cost at the time of acquisition, and depreciation is calculated and withdrawn using the averagelife method from the month after they reach the intended usable state
(2) Depreciation methods
| Category | Method | Years of depreciation | Scrap value rate | Yearly depreciation rate |
| Houses and buildings | Straight-line depreciation | 20 years | 10% | 4.5% |
| Machinery equipment | Straight-line depreciation | 10 years | 10% | 9% |
| Transportation equipment | Straight-line depreciation | 5 years | 10% | 18% |
| Electronic equipment and others | Straight-line depreciation | 5 years | 10% | 18% |
(3)Impairment test method for fixed assets and impairment provision
As of the balance sheet date, if there is an indication that fixed assets are impaired, a corresponding provisionfor impairment is made for the difference between the carrying amount and the recoverable amount.
(3) Recognition basis, valuation and depreciation method for financial lease assetsFinance lease is determined when one or a combination of the following conditions are satisfied: 1) the ownershiphas been transferred to the lessee when the leasing term is due; 2) the lessee has the option to purchase the leasingasset at a price that is much lower than its fair value, so it can be reasonably determined that the lessee will takethe option at the very beginning of the lease; 3) the leasing term accounts for most time of the useful life(ordinarily accounting for 75% or higher) even if the ownership does not transfer to the lessee; 4) the presentvalue of the minimum amount of rent that the lessee has to pay at the first day of the lease amounts to 90% orhigher of its fair value at the same date; or the present value of the minimum amount of rent that the lessor collectsat the first day of the lease amounts to 90% or higher of its fair value at the same date; and/or 5) the leased assetsare of such a specialized nature that only the lessee can use them without major modifications.
Fixed assets rented-in under finance lease are recorded at the lower of fair value and the present value of theminimum lease payment at the inception of the lease, and are depreciated following the depreciation policy forself-owned fixed assets.
25.Construction in progress
(1)When the construction in progress has reached the intended condition for use, it will be treated as fixed assetsas per the actual construction cost. If the construction in progress has reached the intended condition for use butcompletion accounting is not carried out, the construction in progress should be first treated as fixed assets as perthe estimated value. After completion accounting is carried out, the original estimated value should be adjusted asper the actual cost, but the provision for depreciation withdrawn should not be adjusted.
(2)As of the balance sheet date, where there is any indication that a construction in process experiencesimpairment, the relevant impairment provision shall be provided for based on the difference between the carryingvalue and the recoverable amount.
26. Borrowing expenses
Nil
27. Biological assets
Nil
28. Oil and gas asset
Nil
29. Right-of-use assets
On the commencement date of the lease term, the Group recognizes right-of-use assets and lease liabilities forleases, except for short-term leases and leases of low-value assets that are simplified by the standard.The Group initially measures right-of-use assets at cost. This cost includes:
1. The initial measurement amount of the lease liability;
2. The lease payment amount paid on or before the commencement date of the lease term, if there is a leaseincentive, deduct the relevant amount of the lease incentive already enjoyed;
3. Initial direct costs incurred;
4. The expected cost of demolishing and removing the leased asset, restoring the site where the leased asset islocated or restoring the leased asset to the condition as agreed in the lease terms. If the aforementioned cost isincurred for the production of inventories, and the Accounting Standards for Business Enterprises No. 1 -Inventories shall apply.The Group recognizes and measures the cost mentioned in Item 4 above in accordance with Accounting Standardsfor Business Enterprises No. 13 - Contingencies.
Initial direct costs are the incremental cost incurred to achieve the lease. Incremental cost is the cost that wouldnot have incurred if the enterprise had not acquired the lease.
With reference to the relevant depreciation provisions of Accounting Standards for Business Enterprises No. 4 -Fixed Assets, the Group accrues depreciation for right-of-use assets. Where it can be reasonably determined thatthe ownership of the leased asset will be obtained at the expiration of the lease term, depreciation shall be accruedwithin the remaining service life of the leased asset. Where it cannot be reasonably determined that the ownershipof the leased asset can be obtained at the expiration of the lease term, depreciation shall be accrued within the theshorter of the lease term and the remaining service life of the leased asset.
In accordance with the Accounting Standards for Business Enterprises No. 8 - Impairment of Assets, the Groupdetermines whether the right-of-use asset is impaired, and performs accounting treatment on the identifiedimpairment losses.
30. Intangible assets
(1) Valuation method, service life and impairment test
1).Intangible assets include land use right, patent right and non-patent technology, which should be initiallymeasured at cost.
2).Intangible assets with limited service life should be amortized systematically and reasonably in their servicelives as per the expected form of realization economic benefits relating to the said intangible assets. If the form ofrealization cannot be reliably determined, the intangible assets should be amortized on a straight-line basis.
3).At the balance sheet date, when there is any indication that the intangible assets with finite useful lives may beimpaired, a provision for impairment loss is recognized on the excess of the carrying amounts of the assets overtheir recoverable amounts. Intangible assets with infinite useful lives and intangible assets not satisfying thecondition for use yet are subject to impairment test each year notwithstanding whether the assets are impaired.
4). Expenditure incurred in the research phase of internal R&D shall be included in current gain/loss at the time ofoccurrence. Intangible assets recognized for expenditure in exploitation stage by satisfying the followed at sametime: ①it is technically feasible that the intangible asset can be used or sold upon completion; ②there is intentionto complete the intangible asset for use or sale; ③the intangible asset can produce economic benefits, includingthere is evidence that the products produced using the intangible asset has a market or the intangible asset itselfhas a market; if the intangible asset is for internal use, there is evidence that there exists usage for the intangibleasset; ④there is sufficient support in terms of technology, financial resources and other resources in order tocomplete the development of the intangible asset, and there is capability to use or sell the intangible asset; ⑤theexpenses attributable to the development phase of the intangible asset can be measured reliably.
(2) Internal accounting policies relating to research and development expendituresExpenditure incurred in the research phase of internal R&D shall be included in current gain/loss at the time ofoccurrence. Intangible assets recognized for expenditure in exploitation stage by satisfying the followed at sametime: ①it is technically feasible that the intangible asset can be used or sold upon completion; ②there is intentionto complete the intangible asset for use or sale; ③the intangible asset can produce economic benefits, includingthere is evidence that the products produced using the intangible asset has a market or the intangible asset itselfhas a market; if the intangible asset is for internal use, there is evidence that there exists usage for the intangibleasset; ④there is sufficient support in terms of technology, financial resources and other resources in order tocomplete the development of the intangible asset, and there is capability to use or sell the intangible asset; ⑤theexpenses attributable to the development phase of the intangible asset can be measured reliably.
31. Impairment of long-term assets
Nil
32. Long-term expenses to be apportioned
Long-term expenses to be apportioned are booked by actual amount occurred, and apportioned evenly during thebenefit period or regulated period.In case that the long-term deferred expenses are not likely to benefit thesubsequent accounting periods, the outstanding value of the item to be amortized shall be included in currentprofit or loss in full.
33. Contract liability
The CBC lists contractual assets or contractual liabilities in the balance sheet based on the relationship betweenperformance obligations and customer payments. The CBC's obligations to transfer goods or provide services tocustomers for which consideration has been received or receivable are listed as contractual liabilities. contractualassets and contractual liabilities under the same contract are listed as a net amount.
34. Employee compensation
(1) Accounting treatment for short-term compensation
The CBC terminates the labor relationship with an employee before the employee labor contract expires, orproposes to offer a compensation to encourage an employee to voluntarily accept the downsizing. When the CBCcannot unilaterally withdraw the labor relationship cancellation plan or the downsizing proposal nor confirm therelevant costs of the restructuring involving the payment of termination benefits, whichever is earlier, theliabilities arising from the compensation for the termination of the labor relationship with the employees arerecognized and included in the current profit and loss.
(2) Accounting treatment for post-employment benefit
The CBC terminates the labor relationship with an employee before the employee labor contract expires, orproposes to offer a compensation to encourage an employee to voluntarily accept the downsizing. When the CBCcannot unilaterally withdraw the labor relationship cancellation plan or the downsizing proposal nor confirm therelevant costs of the restructuring involving the payment of termination benefits, whichever is earlier, theliabilities arising from the compensation for the termination of the labor relationship with the employees arerecognized and included in the current profit and loss.
(3) Accounting for retirement benefits
When the CBC terminates the employment relationship with employees before the end of the employmentcontracts or provides compensation as an offer to encourage employees to accept voluntary redundancy, the CBCshall recognize employee compensation liabilities arising from compensation for staff dismissal and included in
profit or loss for the current period, when the CBC cannot revoke unilaterally compensation for dismissal due tothe cancellation of labor relationship plans and employee redundant proposals; and the CBC recognize cost andexpenses related to payment of compensation for dismissal and restructuring, whichever is earlier.
(4) Accounting for other long-term employee benefits
The employees of the CBC have participated in the basic social endowment insurance organized and implementedby the local labor and social security department. The CBC pays the endowment insurance premium to the localbasic social endowment insurance agency on a monthly basis based on the base and ratio of the local basic socialendowment insurance payment. After the retirement of employees, the local labor and social security departmenthas the responsibility to pay the social basic pension to the retired employees. During the accounting period inwhich employees provide services, the CBC recognizes the amount payable calculated according to the abovesocial security insurance regulations as the liabilities and includes them in the current profit and loss or relatedasset costs.
35.Lease liability
Nil
36.Accrual liability
Nil
37. Share-based payment
(1)Types of share-based payment
Share-based payment comprises of equity-settled share-based payment and cash-settled share-based payment.
(2)Determination of fair value of equity instruments
1)determined based on the price quoted in an active market if there exists active market for the instrument.
2)determined by adoption of valuation technology if there exists no active market, including by reference to therecent arm’s length market transactions between knowledgeable, willing parties, reference to the current fair valueof another instrument that is substantially the same, discounted cash flow analysis and option pricing models.
(3)Basis for determination of the best estimate of exercisable equity instruments
To be determined based on the subsequent information relating to latest change of exercisable employees.
(4)Accounting relating to implementation, amendment and termination of share-based payment schemes
1)Equity-settled share-based payment
For equity instruments that may be exercised immediately after the grant, the fair value of such instrument shall,on the date of the grant, be recognized in relevant costs or expenses with the increase in the capital reserve
accordingly. For equity-settled share-based payment made in return for the rendering of employee services thatcannot be exercised until the services are fully rendered during vesting period or specified performance targets aremet, on each balance sheet date within the vesting period, the services acquired in the current period shall, basedon the best estimate of the number of exercisable instruments, be recognized in relevant costs or expenses and thecapital reserves at the fair value of such instruments on the date of the grant.
For equity-settled share-based payment made in exchange for service from other parties, such payment shall bemeasured at the fair value of the service as of the acquisition date is the fair value can be measured reliably. And ifthe fair value of the service cannot be measured reliably while the fair value of the equity instrument can bemeasured reliably, it shall be measure at the fair value of the instrument as of the date on which the service isacquired, which shall be recorded in relevant cost or expense with increase in owners’ equity accordingly.
2)Cash-settled share-based payment
For the cash-settled share-based payment that may be exercised immediately after the grant in exchange for renderof service by employees, the fair value of the liability incurred by the CBC shall, on the date of the grant, berecognized in relevant costs or expenses and the liabilities shall be increased accordingly. For cash-settled share-based payment made in return for the rendering of employee services that cannot be exercised until the servicesare fully provided during vesting period or specified performance targets are met, on each balance sheet datewithin the vesting period, the services acquired in the current period shall, based on the best estimate of thenumber of exercisable instruments, be recognized in relevant costs or expenses and the corresponding liabilities atthe fair value of the liability incurred by the CBC.
3)Revision and termination of share-based payment schemes
If the revision results in an increase in the fair value of the equity instruments granted, the CBC shall recognizethe increase in the services rendered accordingly at the increased fair value of the equity instruments. If therevision results in an increase in the number of equity instruments granted, the CBC will recognize the increase inthe services rendered accordingly at the fair value of the increased number of equity instruments. If the CBCrevises the vesting conditions on terms favorable to the employees, the CBC will take into consideration of therevised vesting conditions when dealing with the vesting conditions.
If the revision results in a decrease in the fair value of the equity instruments granted, the CBC shall continuerecognize the amount of services rendered accordingly at the fair value of the equity instruments on the date ofgrant without considering the decrease in the fair value of the equity instruments. If the revision results in adecrease in the number of equity instruments granted, the CBC will account for such decrease by reducing part ofthe cancellation of equity instruments granted. If the CBC revises the vesting conditions on terms not favorable tothe employees, the CBC will not take into consideration of the revised vesting conditions when dealing with thevesting conditions.
If the CBC cancels the equity instruments granted or settles the equity instruments granted during the vesting
period (other than cancellation as a result of failure to satisfy the vesting conditions), such cancellation orsettlement will be treated as accelerated exercisable rights and the original amount in the remaining vesting periodwill be recognized immediately.
38. Other financial instruments including preferred stock, Perpetual capital securitiesNil
39. Revenue
The Company shall comply with the disclosure requirement of jewelry-related industries in the “Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 3- Industry Disclosure”
(1) Recognition of revenue
On the starting date of the contract, the company evaluates the contract, identifies each individual performanceobligation contained in the contract, and determines whether each individual performance obligation is performedwithin a certain period of time or at a certain point in time.When meeting one of the following conditions, it belongs to the performance obligation within a certain period oftime, otherwise, it belongs to the performance obligation at a certain point in time: 1) The customer obtains andconsumes the economic benefits brought by the company's performance at the same time as the companyperforms the contract; 2) The customer can control the goods or services under construction during the company'sperformance; 3) The goods or services produced during the company's performance have irreplaceable uses, andthe company has the right to collect payments for the accumulated performance part of the contract during theentire contract period .
For performance obligations performed within a certain period of time, the company recognizes revenue inaccordance with the performance progress during that period of time. When the performance progress cannot bereasonably determined, if the cost incurred is expected to be compensated, the revenue shall be recognizedaccording to the amount of the cost incurred until the performance progress can be reasonably determined. Forperformance obligations performed at a certain point in time, revenue is recognized at the point when thecustomer obtains control of the relevant goods or services. When judging whether the customer has obtainedcontrol of the goods, the company considers the following signs: 1) The company has the current right to receivepayment for the goods, that is, the customer has the current payment obligation for the goods; 2) The company hastransferred the legal ownership of the goods to the customer, that is, the customer has legal ownership of thegoods; 3) The company has transferred the product to the customer in kind, that is, the customer has physicallytaken possession of the product; 4) The company has transferred the major risks and rewards of the ownership ofthe goods to the customer, that is, the customer has obtained the main risks and rewards of the ownership of thegoods; 5) the customer has accepted the goods; 6) Other signs indicate that the customer has obtained control of
the goods.
(2) Principles of revenue measurement
1) The company measures revenue based on the transaction price allocated to each individual performanceobligation. The transaction price is the amount of consideration that the company expects to be entitled to receivedue to the transfer of goods or services to the customer, and does not include the amount collected on behalf of athird party and the amount expected to be returned to the customer.
2) If there is variable consideration in the contract, the company shall determine the best estimate of the variableconsideration based on the expected value or the amount most likely to incur, but the transaction price includingthe variable consideration shall not exceed the amount at which the accumulatively recognized income is mostlikely not be subject to a significant reversal when the relevant uncertainty is eliminated.
3) If there is a major financing component in the contract, the company shall determine the transaction price basedon the amount payable in cash when the customer assumes control of the goods or services. The differencebetween the transaction price and the contract consideration shall be amortized by the effective interest methodduring the contract period. On the starting date of the contract, if the company expects that the interval betweenthe customer's acquisition of control of the goods or services and the customer's payment of the price will notexceed one year, we will not consider the significant financing components in the contract.
4) If the contract contains two or more performance obligations, the company will allocate the transaction pricesto each individual performance obligation in accordance with the relative proportion of the stand-alone sellingprice of the goods promised by each individual performance obligation on the commencement date of contract.
(3) Specific method of revenue recognition:
In accordance with the general principles of revenue recognition and the actual situation of the company's productsales, the company formulates a specific revenue recognition method that the products sold by the company tocustomers are recognized as revenue after the products are delivered to the customer and the customer carries outacceptance and inspection.
40. Government subsidy
(1) government subsidy including those relating to assets and relating to income
(2)government grant, if granted as monetary assets, are measured at the amount received or receivable, and
measured at fair value if granted as non-monetary assets. If the fair value can not be determined reliably, theyshall be measured at nominal value.
(3) Aggregate method for government subsidy:
1)government subsidy relating to assets are recognized as deferred income, which shall be recorded in profit orloss by installment reasonably and systematically within the useful life of the assets. If assets are sold, transferred,discarded as useless or damaged prior to expiration of the useful life, the remaining deferred income undistributedshall be transferred to profit or loss for the period in which the assets are disposed.
2)If government subsidy relating to income are used to compensate for relevant costs or loss for the subsequentperiods, they shall be recognized as deferred income, and recorded in profit or loss for the period in which therelevant costs are recognized. If government subsidy relating to income are used to compensate for the relevantcosts or loss occurred, they shall be recorded in profit or loss for the period directly.
(4)Net method for government subsidy
1) government subsidy relating to assets are used to write off the carrying value of the relevant assets;
2) If government subsidy relating to income are used to compensate for relevant costs or loss for the subsequentperiods, they shall be recognized as deferred income, and recorded in profit or loss for the period in which offsetagainst the relevant costs. If government subsidy relating to income are used to compensate for the relevant costsor loss occurred, they shall be offset against the relevant costs for the period directly.
(5)The CBC adopts aggregated accounting method for the government subsidy received.
(6)As for the government subsidy comprising both portions relating to assets and income, separate accountingshall be made for different portion; in case it is hard to differentiate the portions, the subsidy will be recorded asrelated to income in general.
(7)The CBC realizes government subsidy relating to its normal activities as other income based on the substanceof economic business, and if not related to its normal activities, realized as non-operating income and expenditure.
(8)Subsidized loans from preferential policy obtained by the CBC are classified based on whether subsidy fundsare paid to the loaning bank or directly to the CBC by the competent financial authorities and are treated based onthe following principles:
1)Where subsidy funds are paid to the loaning bank by the competent financial authorities and the bank then
provides loans to the CBC at a preferential policy rate, accounting shall be made by the CBC as follows:
a. Recognizes the actual borrowing amount received as the carrying value of the loan, and calculates the relevantborrowing costs based on the principal and the preferential policy rate.b.Recognizes the fair value of the loan as the carrying value and calculates the borrowing cost under effectiveinterest method, and recognizes the difference between the actual amount received and the fair value of the loan asdeferred income. Deferred income is amortized over the term of the loan under effective interest method andoffset against the relevant borrowing costs.
2)If the subsidy funds are paid directly to the CBC by finance authority, the CBC will offset the correspondingsubsidy against the relevant borrowing expenses.
41.Deferred income tax asset /Deferred income tax liabilities
(1) Deferred tax assets or deferred tax liabilities are calculated and recognized based on the difference between thecarrying amount and tax base of assets and liabilities (and the difference of the carrying amount and tax base ofitems not recognized as assets and liabilities but with their tax base being able to be determined according to taxlaws) and in accordance with the tax rate applicable to the period during which the assets are expected to berecovered or the liabilities are expected to be settled.
(2)A deferred tax asset is recognized to the extent of the amount of the taxable income, which it is most likely toobtain and which can be deducted from the deductible temporary difference. At the balance sheet date, if there isany exact evidence that it is probable that future taxable profits will be available against which deductibletemporary differences can be utilized, the deferred tax assets unrecognized in prior periods are recognized.
(3)At the balance sheet date, the carrying amount of deferred tax assets is reviewed. The carrying amount of adeferred tax asset is reduced to the extent that it is no longer probable that sufficient taxable profits will beavailable to allow the benefit of the deferred tax asset to be utilized. Such reduction is subsequently reversed tothe extent that it becomes probable that sufficient taxable income will be available.
(4)The income tax and deferred tax for the period are treated as income tax expenses or income through profit orloss, excluding those arising from the following circumstances: ① business combination; and ② the transactionsor items directly recognized in equity.
42. Lease
(1)Accounting for operating lease
When the Company is the lessee, lease payments are recognized as cost or profit or loss with straight-line methodover the lease term. Initial expenses are recognized directly into profit or loss. Contingent rents are charged asprofit or loss in the periods in which they are incurred.When the Company is the lessor, lease income is recognized as profit or loss with straight-line method over thelease term. Initial expenses, other than those with material amount and eligible for capitalization which arerecognized as profit or loss by installments, are recognized directly as profit or loss. Contingent rents are chargedinto profit or loss in the periods in which they are incurred.
(2)Accounting for financing lease
When the company acts as lessee, at the inception of lease, the lower of fair value of leased assets at the inceptionof lease and the present value of minimum lease payment is recognized as the value of leased assets. Theminimum lease payment is recognized as the value of long-term payable. Their difference is recorded asunrecognized finance costs with any initial direct expense incurred recorded in the value of leased assets. For eachperiod of the lease term, current finance cost is calculated using effective interest method.
When the company acts as lessor, at the inception of lease, the sum of minimum lease income at the inception oflease and the initial direct expense is recognized as the value of finance lease payment receivable, with unsecuredbalance also recorded. The difference between the sum of minimum lease income, initial direct expense andunsecured balance and the sum of their present values is recognized as unrealized finance income. For each periodof the lease term, current finance income is calculated using effective interest method.
43. Other important accounting policy and estimation
Discontinued operation refers to the operation disposed or classified as held-for-sale by the Company andpresented separately under operation segments and financial statements, which has fulfilled one of the followingcriteria:
(1) it represents an independent key operation or key operating region;
(2) it is part of the proposed disposal plan on an independent key operation or proposed disposal in key operatingregion; or
(3) it only establishes for acquisition of subsidiary through disposal.
The enterprise shall separately list profit and loss from continuing operations and profit and loss fromdiscontinuing operations in the profit statement. For non-current assets held for sale or disposal groups that do not
meet the definition of discontinuing operations, the impairment losses and reversal amounts and disposal gainsand losses should be presented as profit or loss from continuing operations. Operational gains and losses anddisposal profits and losses such as impairment losses and reversal amounts of discontinuing operations should bereported as profits or losses of discontinuing operations.
44. Changes of important accounting policy and estimation
(1) Changes of important accounting policy
□Applicable ?Not applicable
(2) Changes of important accounting estimation
□Applicable ?Not applicable
(3)Adjustments to financial statement’s items at the beginning of the year when implemented the new accounting standardsat first time since 2023
□Applicable ?Not applicable
45. Other
There were no major error correction on prior period in the reporting period.VI. Taxes
1. Main tax and tax rate
| Type of tax | Tax calculation evidence | Tax rate |
| Value added tax | Sales of goods, taxable labor service revenue, taxable income, intangible assets income and income from property leasing | 5%, 6%, 13% |
| Consumption tax | Not applicable | Not applicable |
| City maintenance & construction tax | Turnover tax paid | 7% |
| Enterprise income tax | Taxable income | 25%, 20%, 15% |
| Local education fee surcharge | Turnover tax paid | 2% |
Disclose reasons for different taxpaying body
| Taxpaying body | Income tax rate |
| Shenzhen China Bicycle Company (Holdings) Limited | 25.00% |
| Shenzhen Emmelle Industrial Co., Ltd. | 20.00% |
| Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd | 25.00% |
| Shenzhen Emmelle Cloud Technology Co., Ltd. | 20.00% |
2. Tax preference
In accordance with the Enterprise Income Tax Law of the People's Republic of China and its enforcementregulations, the Announcement of the Ministry of Finance and the State Taxation Administration on theImplementation of Preferential Income Tax Policies for Small and Micro Enterprises and Individual Industrialand Commercial Households" (No. 12 of 2021), and the Announcement of the Ministry of Finance and the StateTaxation Administration on Further Implementing Preferential Income Tax Policies for Small and MicroEnterprises (No. 13 of 2022), from January 1, 2021 to December 31, 2022, the part of the annual taxable incomeof small and low-profit enterprises not exceeding 1 million yuan shall be included in the taxable income at areduced tax rate of 12.5%, and the enterprise income tax shall be levied at the tax rate of 20%; from January 1,2022 to December 31, 2024, the part of the annual taxable income of small and low-profit enterprises exceeding1 million yuan but not exceeding 3 million yuan shall be included in the taxable income at a reduced tax rate of25%, and the enterprise income tax shall be levied at the tax rate of 20%. During the reporting period,subsidiary of the CBC-Shenzhen Emmelle Industrial Co., Lt, Shenzhen Emmelle Cloud Technology Co., Ltd.were small and micro-profit enterprises and were subject to the preferential tax rate of 20%.
3. Other
Nil
VII. Notes to Items of Consolidated Financial Statements
1. Monetary fund
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| Cash on hand | 37,275.25 | 33,531.25 |
| Bank deposit | 15,521,220.44 | 50,889,338.10 |
| Other monetary fund | 4,179,071.81 | 3,776,621.83 |
| Total | 19,737,567.50 | 54,699,491.18 |
| Total amount that have restriction on use due to mortgage, pledge or frozen | 4,179,071.81 | 3,776,621.83 |
Other explanation:
(2) Bank deposits amounting to 4,179,071.81 yuan were judicially frozen due to lawsuits at end of the Period.
(3)At the end of the Period, there were no funds held overseas or at potential risk of recovery.
2. Trading financial assets
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| Including: |
| Including: |
Other explanation:
Nil
3. Derivative financial assets
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
Other explanation:
Nil
4. Note receivable
(1) Category of note receivable
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| Bank acceptance notes | 839,035.38 | 1,102,000.00 |
| Total | 839,035.38 | 1,102,000.00 |
Unit: RMB/CNY
| 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 notes receivable is made in accordance with the general model of expected credit losses, pleaserefer to the disclosure of other account receivable to disclose related information about bad-debt provisions:
□Applicable ?Not applicable
(2) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
Unit: RMB/CNY
| Category | Opening balance | Current changes | Ending balance | |||
| Accrual | Collected or reversal | Write off | Other | |||
Including important amount of bad debt provision collected or reversal in the period:
□Applicable ?Not applicable
(3) Note receivable pledged at period-end
Unit: RMB/CNY
| Item | Amount pledged at period-end |
(4) Note receivable which have endorsed and discount at period-end and has not expired on balancesheet
Unit: RMB/CNY
| Item | Amount derecognized at end of the Period | Amount not derecognized at end of the Period |
(5) Notes transfer to account receivable due for failure implementation by drawer at period-end
Unit: RMB/CNY
| Item | Amount transfer to account receivable at period-end |
Other explanation:
Nil
(6) Note receivable actually written-off in the period
Unit: RMB/CNY
| Item | Amount written off |
Including important note receivable written-off:
Unit: RMB/CNY
| Enterprise | Nature | Amount written off | Causes | Procedure | Amount cause by related transactions or not (Y/N) |
Explanation on note receivable written-off:
Nil
5. Account receivable
(1) Category of account receivable
Unit: RMB/CNY
| Category | Ending balance | Opening balance | ||||||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
| Amount | Ratio | Amount | Accrual ratio | Amount | Ratio | Amount | Accrual ratio | |||
| Account receivable with bad debt provision accrual by single | 26,164,353.35 | 15.29% | 21,485,173.69 | 82.12% | 4,679,179.66 | 26,197,973.35 | 9.62% | 21,516,069.69 | 82.13% | 4,681,903.66 |
| basis | ||||||||||
| Including: | ||||||||||
| Accounts with single significant amount and with bad debts provision accrued individually | 21,862,832.43 | 12.78% | 17,490,265.94 | 80.00% | 4,372,566.49 | 21,862,832.43 | 8.03% | 17,490,265.94 | 80.00% | 4,372,566.49 |
| Accounts with single minor amount but with bad debts provision accrued individually | 4,301,520.92 | 2.51% | 3,994,907.75 | 92.87% | 306,613.17 | 4,335,140.92 | 1.59% | 4,025,803.75 | 92.86% | 309,337.17 |
| Account receivable with bad debt provision accrual by portfolio | 144,965,467.89 | 84.71% | 434,896.41 | 0.30% | 144,530,571.48 | 246,125,775.60 | 90.38% | 738,377.33 | 0.30% | 245,387,398.27 |
| Including: | ||||||||||
| Account receivable withdrawal bad debt provision by group of credit risk characteristics (Aging analysis method) | 144,965,467.89 | 84.71% | 434,896.41 | 0.30% | 144,530,571.48 | 246,125,775.60 | 90.38% | 738,377.33 | 0.30% | 245,387,398.27 |
| Total | 171,129,821.24 | 21,920,070.10 | 149,209,751.14 | 272,323,748.95 | 22,254,447.02 | 250,069,301.93 |
Bad debt provision accrual on single basis: The account receivable of CBC with a single significant amount refers to a singleamount of 5 million yuan or more
Unit: RMB/CNY
| Name of the Company | Ending balance | |||
| Book balance | Bad debt provision | Accrual ratio | Reason for accrual | |
| Guangshui Jiaxu Energy Technology Co., Ltd. | 21,862,832.43 | 17,490,265.94 | 80.00% | It is expected that partially uncollectible |
| Total | 21,862,832.43 | 17,490,265.94 | ||
Bad debt provision accrual on single basis: Accounts with single minor amount but with bad debts provision accrued individually
Unit: RMB/CNY
| Name of the Company | Ending balance | |||
| Book balance | Bad debt provision | Accrual ratio | Reason for accrual | |
| Suzhou Daming Vehicle Industry Co., Ltd. | 930,394.42 | 744,315.54 | 80.00% | Expected to be difficult in collection |
| Suzhou Jiaxin Economic Trade Co., Ltd. | 888,757.00 | 888,757.00 | 100.00% | Expected to be difficult in collection |
| Dongguan Daxiang New Energy Co., Ltd. | 656,734.00 | 656,734.00 | 100.00% | Expected to be difficult in collection |
| Shijiazhuang Dasong Tech. Co., Ltd | 497,064.00 | 497,064.00 | 100.00% | Expected to be difficult in collection |
| Guangdong Xinlingjia New Energy Co., Ltd. | 348,136.00 | 348,136.00 | 100.00% | Expected to be difficult in collection |
| Shanghai Swen Electric Vehicle Co., Ltd. | 280,197.50 | 280,197.50 | 100.00% | Expected to be difficult in collection |
| Hubei Topsdun Eletronic Tech. Co., Ltd. | 241,068.58 | 120,534.29 | 50.00% | Expected to be difficult in collection |
| Tianjin Huiju Electric Vehicle Co., Ltd. | 116,840.14 | 116,840.14 | 100.00% | Expected to be difficult in collection |
| Fuzhou Dayang Commercial Co., Ltd. | 147,804.28 | 147,804.28 | 100.00% | Expected to be difficult in collection |
| Other | 194,525.00 | 194,525.00 | 100.00% | Expected to be difficult in collection |
| Total | 4,301,520.92 | 3,994,907.75 | ||
Bad debt provision accrual on portfolio:Accounts receivable with provision for bad debts by aging analysis method
Unit: RMB/CNY
| Name of the Company | Ending balance | ||
| Book balance | Bad debt provision | Accrual ratio | |
| Within one year(one year included) | 144,156,624.16 | 432,469.88 | 0.30% |
| 1-2 years (2 years included) | 1,724.11 | 5.17 | 0.30% |
| 2-3 years (3 years included) | 807,119.62 | 2,421.36 | 0.30% |
| Total | 144,965,467.89 | 434,896.41 | |
Explanation on portfolio basis:
NilIf the provision for bad debts of account receivable is made in accordance with the general model of expected credit losses, pleaserefer to the disclosure of other account receivable to disclose related information about bad-debt provisions:
□Applicable ?Not applicable
Disclosure by ageing
Unit: RMB/CNY
| Account age | Ending balance |
| Within one year(one year included) | 155,671,359.71 |
| 1-2 years | 11,005,264.71 |
| 2-3 years | 2,070,170.90 |
| Over 3 years | 2,383,025.92 |
| 3-4 years | 996,132.00 |
| 4-5 years | 628,842.42 |
| Over 5 years | 758,051.50 |
| Total | 171,129,821.24 |
(2) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
Unit: RMB/CNY
| Category | Opening balance | Current changes | Ending balance | |||
| Accrual | Collected or reversal | Write off | Other | |||
| Accrual of bad debt provision for account receivable in the Period | 324,421.80 | 658,798.72 | ||||
| Total | 324,421.80 | 658,798.72 | ||||
Including important amount of bad debt provision collected or reversal in the period:
Unit: RMB/CNY
| Enterprise | Amount collected or reversal | Collection way |
Nil
(3) Account receivables actually write-off during the reporting period
Unit: RMB/CNY
| Item | Amount written off |
Including important account receivables write-off:
Unit: RMB/CNY
| Enterprise | Nature | Amount written off | Causes | Procedure | Amount cause by related transactions or not (Y/N) |
Explanation on account receivable write-off:
Nil
(4) Top five account receivables collected by arrears party at ending balance
Unit: RMB/CNY
| Enterprise | Ending balance of accounts receivable | Proportion of total closing balance of accounts receivable | Ending balance of bad bet provision |
| Fuzhou Cangshan Dingjue Jewelry Firm | 34,119,519.81 | 19.94% | 102,358.56 |
| Fuzhou Rongrun Jewelry Co., Ltd. | 28,325,616.77 | 16.55% | 84,976.85 |
| Shenzhen Yunshang Jewelry Co., Ltd. | 28,107,722.05 | 16.42% | 84,323.17 |
| Fuzhou Zuankinson Jewelry Co., Ltd. | 23,737,828.86 | 13.87% | 71,213.49 |
| Guangshui Jiaxu Energy Technology Co., Ltd. | 21,862,832.43 | 12.78% | 17,490,265.94 |
| Total | 136,153,519.92 | 79.56% |
(5) Account receivable derecognized due to transfer of financial assets
Nil
(6) Assets and liability resulted by account receivable transfer and continuous involvementNilOther explanation:
Nil
6. Receivable financing
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
Change of receivables financing and fair value in the period
□Applicable ?Not applicable
If the provision for bad debts of receivable financing is made in accordance with the general model of expected credit losses,please refer to the disclosure of other account receivable to disclose related information about bad-debt provisions:
□Applicable ?Not applicable
Other explanation:
Nil
7. Accounts paid in advance
(1) Accounts paid in advance by ageing
Unit: RMB/CNY
| Account age | Ending balance | Opening balance | ||
| Amount | Ratio | Amount | Ratio | |
| Within one year | 2,740,178.99 | 99.93% | 4,285,047.15 | 99.96% |
| 1-2 years | 1,888.00 | 0.07% | 1,888.00 | 0.04% |
| Total | 2,742,066.99 | 4,286,935.15 | ||
Explanation on un-settlement in time for advance payment with over one year account age and major amounts:
Nil
(2) Top 5 advance payment at ending balance by prepayment object
| Enterprise | Relationship | Amount | Account age | Nature | Ratio in total advance e payment(%) |
| Shenzhen Tielbo Co., Ltd. | Non-related party | 2,256,987.95 | Within one year(one year included) | Payment for goods paid in advance | 82.31 |
| Shenzhen ESTAR Industry Co., Ltd. | Non-related party | 366,000.00 | Within one year(one year included) | Payment for goods paid in advance | 13.35 |
| Changzhou Ruiqi Precision Measurement Tech. Co., Ltd. | Non-related party | 83,400.00 | Within one year(one year included) | Payment for goods paid in advance | 3.04 |
| Shenzhen Cuilu Gold Business | Non-related party | 16,457.23 | Within one year(one year included) | Payment for goods paid in advance | 0.60 |
| Shenzhen Huamao Gold Co., Ltd. | Non-related party | 7,521.06 | Within one year(one year included) | Payment for goods paid in advance | 0.27 |
| Total | 2,730,366.24 | 99.57 |
Other explanation:
Nil
8. Other account receivable
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| Other account receivable | 2,461,431.37 | 438,477.82 |
| Total | 2,461,431.37 | 438,477.82 |
(1) Interest receivable
1) Category of interest receivable
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
2) Important overdue interest
Unit: RMB/CNY
| Borrower | Ending balance | Overdue time | Overdue reason | Impairment (Y/N) and judgment basis |
Other explanation:
Nil
3) Accrual of bad debt provision
□Applicable ?Not applicable
(2) Dividend receivable
1) Category of dividend receivable
Unit: RMB/CNY
| Item (or the invested entity) | Ending balance | Opening balance |
2) Important dividend receivable with over one year aged
Unit: RMB/CNY
| Item (or the invested entity) | Ending balance | Account age | Causes of failure for collection | Impairment (Y/N) and judgment basis |
3) Accrual of bad debt provision
□Applicable ?Not applicable
Other explanation:
Nil
(3) Other account receivable
1) Other account receivable by nature of payment
Unit: RMB/CNY
| Nature | Ending book balance | Opening book balance |
| Other | 2,138,921.49 | 62,744.32 |
| Deposit or margin | 433,011.50 | 504,107.88 |
| Payment for equipment | 311,400.00 | 311,400.00 |
| Employee loans | 57,404.89 | 33,445.00 |
| Total | 2,940,737.88 | 911,697.20 |
2) Accrual of bad debt provision
Unit: RMB/CNY
| Bad debt provision | Phase I | Phase II | Phase III | Total |
| Expected credit losses over next 12 months | Expected credit losses for the entire duration (without credit impairment occurred) | Expected credit losses for the entire duration (with credit impairment occurred) | ||
| Balance on January 1, 2023 | 473,219.38 | 473,219.38 | ||
| January 1, 2023 balance in the current period | ||||
| Accrual in the Period | 6,224.93 | 6,224.93 | ||
| Reversal in the Period | 137.80 | 137.80 | ||
| Balance on June 30, 2023 | 479,306.51 | 479,306.51 |
Change of book balance of loss provision with amount has major changes in the period
□Applicable ?Not applicable
Disclosure by ageing
Unit: RMB/CNY
| Account age | Ending balance |
| Within one year(one year included) | 2,297,958.00 |
| 1-2 years | 155,048.88 |
| 2-3 years | 15,831.00 |
| Over 3 years | 471,900.00 |
| 3-4 years | 60,000.00 |
| 4-5 years | 50,000.00 |
| Over 5 years | 361,900.00 |
| Total | 2,940,737.88 |
3) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
Unit: RMB/CNY
| Category | Opening balance | Current changes | Ending balance | |||
| Accrual | Collected or reversal | Write off | Other | |||
| Other account receivable Bad debt provision-Phase I | 473,219.38 | 6,224.93 | 137.80 | 479,306.51 | ||
| Total | 473,219.38 | 6,224.93 | 137.80 | 479,306.51 | ||
Important amount of bad debt provision switch-back or collection in the period:
Unit: RMB/CNY
| Enterprise | Amount switch-back or collection | Collection way |
Nil
4) Other account receivables actually write-off during the reporting period
Unit: RMB/CNY
| Item | Amount written off |
Including important other account receivables write-off:
Unit: RMB/CNY
| Enterprise | Nature of other account receivable | Amount written off | Causes | Procedure | Amount cause by related transactions or not (Y/N) |
Other explanation on account receivable write-off:
Nil
5) Top 5 other account receivable collected by arrears party at ending balance
Unit: RMB/CNY
| Enterprise | Nature | Ending balance | Account age | Proportion in total other account receivables at period-end | Ending balance of bad bet provision |
| Fuzhou Cangshan Dingjue Jewelry Firm | Other | 1,741,171.96 | Within one year | 59.21% | 5,223.52 |
| Shenzhen Luwei | Payment for | 300,000.00 | Over 5 years | 10.20% | 300,000.00 |
| Mechatronic Equipment Co., Ltd | equipment | ||||
| Shenzhen Luohu Government Property Management Office | Margin or deposit | 161,349.10 | Within one year | 5.49% | 484.05 |
| Shenzhen Hualinglong Jewelry Culture Tech. Co., Ltd. | Other | 157,258.83 | Within one year | 5.35% | 471.78 |
| Alipay (China) Network Technology Co., Ltd. customer reserve fund | Margin or deposit | 110,000.00 | 3-4 years | 3.74% | 110,000.00 |
| Total | 2,469,779.89 | 83.99% | 416,179.35 |
6) Account receivable with government subsidy involved
Unit: RMB/CNY
| Enterprise | Government subsidy | Ending balance | Ending account age | Time, amount and basis of amount collection estimated |
Nil
7) Other account receivable derecognized due to financial assets transfer
Nil
8) Assets and liability resulted by other account receivable transfer and continuous involvementNilOther explanation:
Nil
9. Inventory
Whether companies need to comply with the disclosure requirements of the real estate industryNo
(1) Category of inventory
Unit: RMB/CNY
| Item | Ending balance | Opening balance | ||||
| Book balance | Provision for inventory | Book value | Book balance | Provision for inventory | Book value | |
| depreciation or impairment of contractual performance costs | depreciation or impairment of contractual performance costs | |||||
| Raw materials | 142,009,608.13 | 142,009,608.13 | 22,911,015.69 | 22,911,015.69 | ||
| Finished goods | 40,874,466.89 | 412,020.87 | 40,462,446.02 | 25,045,073.77 | 412,020.87 | 24,633,052.90 |
| Consigned processing materials | 7,902,854.80 | 7,902,854.80 | 662,798.22 | 662,798.22 | ||
| Total | 190,786,929.82 | 412,020.87 | 190,374,908.95 | 48,618,887.68 | 412,020.87 | 48,206,866.81 |
The Company shall comply with the disclosure requirement of jewelry-related industries in the “Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 3- Industry Disclosure”
(2) Provision for inventory depreciation and impairment of contractual performance costs
Unit: RMB/CNY
| Item | Opening balance | Current increased | Current decreased | Ending balance | ||
| Accrual | Other | Switch back or charge-off | Other | |||
| Finished goods | 412,020.87 | 412,020.87 | ||||
| Total | 412,020.87 | 412,020.87 | ||||
(3) Explanation on capitalization of borrowing costs at ending balance of inventoryNil
(4) Explanation on the current amortization amount of contract performance costs
Nil
10. Contractual assets
Unit: RMB/CNY
| Item | Ending balance | Opening balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
Amount of significant changes in the carrying amount of contractual assets during the period and causes:
Unit: RMB/CNY
| Item | Amount changes | Reason for change |
If the provision for bad debts of contractual asset is made in accordance with the general model of expected credit losses, please
refer to the disclosure of other account receivable to disclose related information about bad-debt provisions:
□Applicable ?Not applicable
Provision for impairment of contractual assets during the Period
Unit: RMB/CNY
| Item | Accrual in the Period | Reversal in the Period | Write-off/cancellations in the Period | Causes |
Other explanation:
Nil
11. Assets held for sale
Unit: RMB/CNY
| Item | Ending book balance | Impairment provision | Ending book value | Fair value | Expected disposal expenses | Expected disposal time |
Other explanation:
Nil
12. Non-current asset due within one year
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
Important debt investment/other debt investment
Unit: RMB/CNY
| Debt | Ending balance | Opening balance | ||||||
| Face value | Coupon rate | Actual rate | Due date | Face value | Coupon rate | Actual rate | Due date | |
Other explanation:
Nil
13. Other current assets
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| Tax allowances and input tax to be certified | 34,580,392.74 | 35,453,106.62 |
| Total | 34,580,392.74 | 35,453,106.62 |
Other explanation:
Nil
14. Debt investment
Unit: RMB/CNY
| Item | Ending balance | Opening balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
Important debt investment
Unit: RMB/CNY
| Debt | Ending balance | Opening balance | ||||||
| Face value | Coupon rate | Actual rate | Due date | Face value | Coupon rate | Actual rate | Due date | |
Accrual of impairment provision
Unit: RMB/CNY
| Bad debt provision | Phase I | Phase II | Phase II | Total |
| Expected credit losses over next 12 months | Expected credit losses for the entire duration (without credit impairment occurred) | Expected credit losses for the entire duration (with credit impairment occurred) | ||
| January 1, 2023 balance in the current period |
Change of book balance of loss provision with amount has major changes in the period
□Applicable ?Not applicable
Other explanation:
Nil
15. Other debt investment
Unit: RMB/CNY
| Item | Opening balance | Accrued interest | Change of fair value in the period | Ending balance | Cost | Cumulative changes of fair value | Cumulative loss impairment recognized in other comprehensive income | Note |
Important other debt investment
Unit: RMB/CNY
| Other debt investment | Ending balance | Opening balance | ||||||
| Face value | Coupon rate | Actual rate | Due date | Face value | Coupon rate | Actual rate | Due date | |
Accrual of impairment provision
Unit: RMB/CNY
| Bad debt provision | Phase I | Phase II | Phase II | Total |
| Expected credit losses over next 12 months | Expected credit losses for the entire duration (without credit impairment occurred) | Expected credit losses for the entire duration (with credit impairment occurred) | ||
| January 1, 2023 balance in the current period |
Change of book balance of loss provision with amount has major changes in the period
□Applicable ?Not applicable
Other explanation:
Nil
16. Long-term account receivable
(1) Long-term account receivable
Unit: RMB/CNY
| 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: RMB/CNY
| Bad debt provision | Phase I | Phase II | Phase II | Total |
| Expected credit losses over next 12 months | Expected credit losses for the entire duration (without credit impairment occurred) | Expected credit losses for the entire duration (with credit impairment occurred) | ||
| January 1, 2023 balance in the current period |
Change of book balance of loss provision with amount has major changes in the period
□Applicable ?Not applicable
Nil
(2) Long-term account receivable derecognized due to financial assets transfer
Nil
(3) Assets and liabilities resulted by long-term account receivable transfer and continues involvementNilOther explanation:
Nil
17. Long-term equity investment
Unit: RMB/CNY
| The invested entity | Opening balance(Book value) | Changes in the period (+, -) | Ending balance(Book value) | Ending balance of impairment provision | |||||||
| Additional investment | Capital reduction | Investment gains recognized under equity | Other comprehensive income adjustment | Other equity change | Cash dividend or profit announced to issued | Accrual of impairment provision | Other | ||||
| I. Joint venture | |||||||||||
| Subtotal | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| II. Associated enterprise | |||||||||||
| Total | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Other explanation:
Nil
18. Investment in other equity instrument
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
Itemized the non-tradable equity instrument investment in the period
Unit: RMB/CNY
| Item | Dividend income recognized | Cumulative gains | Cumulative losses | Retained earnings transfer from other comprehensive income | Causes of those that designated measured by fair value and with its variation reckoned into other comprehensive income | Cause of retained earnings transfer from other comprehensive income |
Other explanation:
Nil
19. Other non-current financial assets
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
Other explanation:
Nil
20. Investment real estate
(1) Investment real estate measured at cost
□Applicable ?Not applicable
(2) Investment real estate measured at fair value
□Applicable ?Not applicable
(3) Investment real estate without property rights certificate
Unit: RMB/CNY
| Item | Book value | Reasons for failing to complete the property rights certificate |
Other explanation:
Nil
21. Fix assets
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| Fix assets | 2,255,797.28 | 2,304,402.38 |
| Total | 2,255,797.28 | 2,304,402.38 |
(1) Fix assets
Unit: RMB/CNY
| Item | Houses and buildings | Machinery equipment | Carrier | Electronic equipment and others | Total |
| I. Original book value: | |||||
| 1.Opening balance | 2,959,824.00 | 1,209,295.35 | 958,593.21 | 299,852.09 | 5,427,564.65 |
| 2.Current increased | 64,949.07 | 64,949.07 | |||
| (1) Purchase | 64,949.07 | 64,949.07 | |||
| (2) Construction in progress transfer-in | |||||
| (3) The increase in business combination | |||||
| 3.Current decreased | 121,010.22 | 121,010.22 | |||
| (1) Disposal or scrap | 121,010.22 | 121,010.22 | |||
| 4.Ending balance | 2,959,824.00 | 1,209,295.35 | 958,593.21 | 243,790.94 | 5,371,503.50 |
| II. Accumulated depreciation | |||||
| 1.Opening balance | 865,748.52 | 429,520.61 | 862,386.24 | 235,901.15 | 2,393,556.52 |
| 2.Current increased | 66,596.04 | 6,814.38 | 27,844.81 | 101,255.23 | |
| (1) Accrual | 66,596.04 | 6,814.38 | 27,844.81 | 101,255.23 | |
| 3.Current decreased | 108,711.28 | 108,711.28 | |||
| (1) Disposal or scrap | 108,711.28 | 108,711.28 | |||
| 4.Ending balance | 932,344.56 | 436,334.99 | 862,386.24 | 155,034.68 | 2,386,100.47 |
| III. Impairment provision | |||||
| 1.Opening balance | 729,605.75 | 729,605.75 | |||
| 2.Current increased | |||||
| (1) Accrual | |||||
| 3.Current decreased | |||||
| (1) Disposal or scrap | |||||
| 4.Ending balance | 729,605.75 | 729,605.75 | |||
| IV. Book value | |||||
| 1.Ending book value | 2,027,479.44 | 43,354.61 | 96,206.97 | 88,756.26 | 2,255,797.28 |
| 2.Opening book value | 2,094,075.48 | 50,168.99 | 96,206.97 | 63,950.94 | 2,304,402.38 |
(2) Fixed assets temporary idle
Unit: RMB/CNY
| Item | Original book | Accumulated | Impairment | Book value | Note |
| value | depreciation | provision | |||
| Machinery equipment | 1,044,247.81 | 314,642.06 | 729,605.75 | 0.00 |
(3) Fixed assets leasing-out by operational lease
Unit: RMB/CNY
| Item | Ending book value |
(4) Fixed assets without property rights certificate
Unit: RMB/CNY
| Item | Book value | Reasons for failing to complete the property rights certificate |
| Six properties in Lianxin Garden | 2,094,075.48 | The six properties of Lianxin Garden 7-20F with original value of 2,959,824.00 Yuan. The property purchasing refers to the indemnificatory housing for enterprise talent buying from Shenzhen Housing and Construction Bureau of Luohu District. According to the agreement, the enterprise shall not carrying any kind of property trading with any units or individuals except the government, and the company has no property certification on the above mentioned properties. |
Other explanation:
Nil
(5) Disposal of fix assets
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
Other explanation:
Nil
22. Construction in progress
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
(1) Construction in progress
Unit: RMB/CNY
| Item | Ending balance | Opening balance | ||||
| Book balance | Impairment | Book value | Book balance | Impairment | Book value | |
| provision | provision |
(2) Changes in significant construction in progress
Unit: RMB/CNY
| Item | Budget | Opening balance | Current increased | Fixed assets transfer-in in the Period | Other decreased in the Period | Ending balance | Proportion of project investment in budget | Progress | Accumulated amount of interest capitalization | including: interest capitalized amount of the year | Interest capitalization rate of the year | Source of funds |
(3) Provision for impairment of construction in progress in the current period
Unit: RMB/CNY
| Item | Accrual in the period | Reasons for accrual |
Other explanation:
Nil
(4) Engineering materials
Unit: RMB/CNY
| Item | Ending balance | Opening balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
Other explanation:
Nil
23. Productive biological asset
(1) Productive biological assets measured by cost
□Applicable ?Not applicable
(2) Productive biological assets measured by fair value
□Applicable ?Not applicable
24. Oil and gas asset
□Applicable ?Not applicable
25. Right-of-use assets
Unit: RMB/CNY
| Item | Houses and buildings | Total |
| I. Original book value | ||
| 1.Opening balance | 2,955,726.43 | 2,955,726.43 |
| 2.Current increased | ||
| 3.Current decreased | ||
| 4.Ending balance | 2,955,726.43 | 2,955,726.43 |
| II. Accumulated depreciation | ||
| 1.Opening balance | 2,781,789.72 | 2,781,789.72 |
| 2.Current increased | 173,936.71 | 173,936.71 |
| (1) Accrual | 173,936.71 | 173,936.71 |
| 3.Current decreased | ||
| (1) Disposal | ||
| 4.Ending balance | 2,955,726.43 | 2,955,726.43 |
| III. Impairment provision | ||
| 1.Opening balance | ||
| 2.Current increased | ||
| (1) Accrual | ||
| 3.Current decreased | ||
| (1) Disposal | ||
| 4.Ending balance | ||
| IV. Book value | ||
| 1.Ending book value | ||
| 2.Opening book value | 173,936.71 | 173,936.71 |
Other explanation:
Nil
26. Intangible assets
(1) Intangible assets
Unit: RMB/CNY
| Item | Land use right | Patent | Non-patent technology | Total | |
| I. Original book value | |||||
| 1.Opening balance | |||||
| 2.Current increased |
| (1) Purchase | |||||
| (2)Internal R & D | |||||
| (3) The increase in business combination | |||||
| 3.Current decreased | |||||
| (1) Disposal | |||||
| 4.Ending balance | |||||
| II. Accumulated amortization | |||||
| 1.Opening balance | |||||
| 2.Current increased | |||||
| (1) Accrual | |||||
| 3.Current decreased | |||||
| (1) Disposal | |||||
| 4.Ending balance | |||||
| III. Impairment provision | |||||
| 1.Opening balance | |||||
| 2.Current increased | |||||
| (1) Accrual | |||||
| 3.Current decreased | |||||
| (1) Disposal | |||||
| 4.Ending balance | |||||
| IV. Book value | |||||
| 1.Ending |
| book value | |||||
| 2.Opening book value |
Ratio of intangible assets resulted from internal R&D in balance of intangible assets at period-end
(2) Land use right without certificate of title completed
Unit: RMB/CNY
| Item | Book value | Reasons for failing to complete the property rights certificate |
Other explanation:
Nil
27. Expense on Research and Development
Unit: RMB/CNY
| Item | Opening balance | Current increased | Current decreased | Ending balance | ||||
| Internal expense on R&D | Other | Recognized as intangible assets | Transfer to current profit and loss | |||||
| Total | ||||||||
Other explanation:
Nil
28. Goodwill
(1) Goodwill Original book value
Unit: RMB/CNY
| The invested entity or items | Opening balance | Current increased | Current decreased | Ending balance | ||
| Resulted by enterprise combination | Disposal | |||||
| Total | ||||||
(2) Impairment provision for goodwill
Unit: RMB/CNY
| The invested entity or items | Opening balance | Current increased | Current decreased | Ending balance | ||
| Accrual | Disposal | |||||
| Total | ||||||
Information about the asset group or asset group combination in which the goodwill is located
NilExplain the method of confirming the goodwill impairment test process, key parameters (such as the forecast period growth rate,stable period growth rate, profit rate, discount rate, forecast period, etc. when estimating the present value of future cash flow), andthe impairment loss of goodwill:
NilImpact of impairment test for goodwillNilOther explanation:
Nil
29. Long-term expenses to be apportioned
Unit: RMB/CNY
| Item | Opening balance | Current increased | Amortized in the Period | Other decrease | Ending balance |
Other explanation:
Nil
30. Deferred income tax asset /Deferred income tax liabilities
(1) Deferred income tax assets without offset
Unit: RMB/CNY
| Item | Ending balance | Opening balance | ||
| Deductible temporary difference | Deferred income tax asset | Deductible temporary difference | Deferred income tax asset | |
| Bad debt provision | 580,183.99 | 145,046.00 | 249,675.40 | 62,418.85 |
| Provision for decline in value of inventories | 226,201.90 | 56,550.48 | 226,201.90 | 56,550.48 |
| Total | 806,385.89 | 201,596.48 | 475,877.30 | 118,969.33 |
(2) Deferred income tax liabilities without offset
Unit: RMB/CNY
| Item | Ending balance | Opening balance | ||
| Taxable temporary differences | Deferred income tax liabilities | Taxable temporary differences | Deferred income tax liabilities | |
(3) Deferred income tax assets and deferred income tax liabilities listed after off-set
Unit: RMB/CNY
| 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 | 201,596.48 | 118,969.33 |
(4) Details of deferred income tax assets without recognized
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
(5) Deductible losses of un-recognized deferred income tax assets expired on the followed year
Unit: RMB/CNY
| Year | Ending amount | Opening amount | Note |
Other explanation:
Nil
31. Other non-current asset
Unit: RMB/CNY
| Item | Ending balance | Opening balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Advance payment for house | 400,000.00 | 400,000.00 | 400,000.00 | 400,000.00 | ||
| Total | 400,000.00 | 400,000.00 | 400,000.00 | 400,000.00 | ||
Other explanation:
As of June 30, 2023, the Housing and Construction Bureau of Luohu District, Shenzhen City has not delivered houses for enterprisetalents in Luohu District.
32. Short-term loans
(1) Category of short-term loans
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
Explanation on short-term loans category:
Nil
(2) Overdue outstanding short-term loans
Total 0.00 Yuan overdue outstanding short-term loans at period-end, including the followed significant amount:
Unit: RMB/CNY
| Borrower | Ending balance | Lending rate | Overdue time | Overdue rate |
Other explanation:
Nil
33. Trading financial liability
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| Including: | ||
| Including: |
Other explanation:
Nil
34. Derivative financial liability
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
Other explanation:
Nil
35. Note payable
Unit: RMB/CNY
| Category | Ending balance | Opening balance |
Notes expired at period-end without paid was 0.00 Yuan.
36. Account payable
(1) Account payable
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| Within one year(one year included) | 22,233,996.11 | 1,914,595.55 |
| 1-2 years (2 years included) | 245,706.95 | 12,683.17 |
| 2-3 years (3 years included) | 48,424.51 | 48,424.51 |
| 3-4 years(4 years included) | 410,259.07 | 410,259.07 |
| 4-5 years(5 years included) | 487,016.93 | 487,016.93 |
| Over 5 years | 4,444.00 | 4,444.00 |
| Total | 23,429,847.57 | 2,877,423.23 |
(2) Important account payable with account age over one year
Unit: RMB/CNY
| Item | Ending balance | Reasons for non-reimbursement or carry-forward |
Other explanation:
Nil
37. Accounts received in advance
(1) Accounts received in advance
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
(2) Account received in advance with over one year book age
Unit: RMB/CNY
| Item | Ending balance | Reasons for non-reimbursement or carry-forward |
Other explanation:
Nil
38. Contract liability
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| Receipt of goods in advance | 437,102.15 | 791,762.84 |
| Total | 437,102.15 | 791,762.84 |
Book value has major changes in the period and causes
Unit: RMB/CNY
| Item | Amount changes | Reason for change |
39. Wage payable
(1) Wage payable
Unit: RMB/CNY
| Item | Opening balance | Current increased | Current decreased | Ending balance |
| I. Short-term compensation | 769,992.42 | 3,440,576.22 | 3,326,138.71 | 884,429.93 |
| II. Post-employment benefit-Defined contribution plan | 328,351.80 | 328,351.80 | ||
| Total | 769,992.42 | 3,768,928.02 | 3,654,490.51 | 884,429.93 |
(2) Short-term compensation
Unit: RMB/CNY
| Item | Opening balance | Current increased | Current decreased | Ending balance |
| 1. Wages, bonus, allowances and subsidy | 763,809.95 | 3,111,788.07 | 2,996,101.43 | 879,496.59 |
| 3. Social insurance | 132,399.92 | 132,399.92 | ||
| Including:Medical insurance | 116,511.93 | 116,511.93 | ||
| Work injury insurance | 5,296.00 | 5,296.00 | ||
| Maternity insurance | 10,591.99 | 10,591.99 | ||
| 4. Housing accumulation fund | 164,360.44 | 164,360.44 | ||
| 5. Labor union expenditure and personnel education expense | 6,182.47 | 32,027.79 | 33,276.92 | 4,933.34 |
| Total | 769,992.42 | 3,440,576.22 | 3,326,138.71 | 884,429.93 |
(3) Defined contribution plan
Unit: RMB/CNY
| Item | Opening balance | Current increased | Current decreased | Ending balance |
| 1. Basic endowment insurance | 296,575.82 | 296,575.82 | ||
| 2. Unemployment insurance | 31,775.98 | 31,775.98 | ||
| Total | 328,351.80 | 328,351.80 |
Other explanation:
Nil
40. Taxes payable
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| Value added tax | 14,030,985.32 | 33,374,610.42 |
| Consumption tax | 0.00 | 0.00 |
| Enterprise income tax | 971,408.43 | 1,113,788.23 |
| Individual income tax | 21,003.96 | 29,149.60 |
| City maintenance & construction tax | 2,008,282.46 | 2,056,530.87 |
| Stamp tax | 15,190.36 | 101,516.08 |
| Educational surcharge | 1,434,449.94 | 1,468,913.16 |
| Total | 18,481,320.47 | 38,144,508.36 |
Other explanation:
Nil
41. Other account payable
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| Other account payable | 47,850,414.91 | 48,621,087.98 |
| Total | 47,850,414.91 | 48,621,087.98 |
(1) Interest payable
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
Important interest overdue without paid:
Unit: RMB/CNY
| Borrower | Amount overdue | Overdue reason |
Other explanation:
Nil
(2) Dividend payable
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
Other explanation:including dividends payable with over one year age and disclosure un-payment reasonsNil
(3) Other account payable
1) Nature of other account payable
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| Custodian and common benefit debts | 27,321,128.01 | 28,624,749.18 |
| Warranty and guarantee money | 1,581,940.00 | 1,781,940.00 |
| Intercourse funds | 16,500,000.00 | 16,500,000.00 |
| Other payable service charge (intermediary services included) | 235,200.00 | 801,237.73 |
| Collection and payment | 648,626.35 | 669,657.66 |
| Other | 1,563,520.55 | 243,503.41 |
| Total | 47,850,414.91 | 48,621,087.98 |
2) Important other payable with over one year age
Unit: RMB/CNY
| Item | Ending balance | Reasons for non-reimbursement or carry-forward |
| Custodian and common benefit debts | 27,321,128.01 | |
| Shenzhen Jianzhi Industrial Development Co., Ltd. | 10,000,000.00 | Pre-collection of cooperation deposit |
| Total | 37,321,128.01 |
Other explanation:
1. “Intercourse funds ” at period-end includes 10,000,000.00 yuan, which is the cooperation deposit received in advance fromShenzhen Jianzhi Industrial Development Co., Ltd that may need to be returned in the future;
2. “Intercourse funds ” at period-end includes 6,500,000.00 yuan, which is the interest-free loan applied by subsidiary of theCompany Shenzhen Emmelle Industrial Co., Ltd to Shenzhen Guosheng Energy Investment Development Co., Ltd(the shareholderof CBC) on November 1, 2010 to supplement the daily working capital.
42. Liability held for sale
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
Other explanation:
Nil
43. Non-current liabilities due within one year
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| Lease liabilities due within one year | 0.00 | 210,892.38 |
| Total | 210,892.38 |
Other explanation:
Nil
44. Other current liabilities
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| Sales taxes to be carried forward | 56,823.28 | 102,929.16 |
| Total | 56,823.28 | 102,929.16 |
Changes of short-term bond payable:
Unit: RMB/CNY
| Bond | Face value | Release date | Bond period | Issuing amount | Opening balance | Issued in the Period | Accrual interest by face value | Premium/discount amortization | Paid in the Period | Ending balance | |
| Total |
Other explanation:
Nil
45. Long-term loans
(1) Category of long-term loans
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
Explanation on category of long-term loans:
NilOther explanation: including interest rate sectionNil
46. Bonds payable
(1) Bonds payable
Unit: RMB/CNY
| 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: RMB/CNY
| Bond | Face value | Release date | Bond period | Issuing amount | Opening balance | Issued in the Period | Accrual interest by face value | Premium/discount amortization | Paid in the Period | Ending balance | |
| Total |
(3) Convertible conditions and time for shares transfer for the convertible bonds
Nil
(4) Other financial instruments classify as financial liability
Outstanding other financial instruments as preferred stock and perpetual bonds at period-endNil
Changes of the outstanding financial instruments as preferred stock and perpetual bonds at period-end
Unit: RMB/CNY
| Outstanding financial instrument | Period-begin | 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 instrumentNilOther explanation:
Nil
47. Lease liability
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
Other explanation:
Nil
48. Long-term account payable
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
(1) Nature of long-term account payable
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
Other explanation:
Nil
(2) Special payable
Unit: RMB/CNY
| Item | Opening balance | Current increased | Current decreased | Ending balance | Causes |
Other explanation:
Nil
49. Long-term wages payable
(1) Long-term wages payable
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
(2) Changes of defined benefit plans
Present value of the defined benefit plans:
Unit: RMB/CNY
| Item | Current period incurred | Prior period incurred |
Scheme assets:
Unit: RMB/CNY
| Item | Current period incurred | Prior period incurred |
Net liability (assets) of the defined benefit plans
Unit: RMB/CNY
| Item | Current period incurred | Prior period incurred |
Content of defined benefit plans and relevant risks, impact on future cash flow of the Company as well as times and uncertainty:
NilMajor actuarial assumption and sensitivity analysis:
NilOther explanation:
Nil
50. Accrual liability
Unit: RMB/CNY
| Item | Ending balance | Opening balance | Causes |
| Outstanding litigation | 878,000.00 | 887,342.00 | |
| Total | 878,000.00 | 887,342.00 |
Other explanation, including relevant important assumptions and estimation:
Nil
51. Deferred income
Unit: RMB/CNY
| Item | Opening balance | Current increased | Current decreased | Ending balance | Causes |
Item with government subsidy involved:
Unit: RMB/CNY
| Liability | Opening balance | New grants in the Period | Amount reckoned in non-operation revenue | Amount reckoned in other income | Cost reduction in the period | Other changes | Ending balance | Assets-related/income related |
Other explanation:
Nil
52. Other non-current liabilities
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
Other explanation:
Nil
53. Share capital
Unit: RMB/CNY
| Opening balance | Changes in the period (+, -) | Ending balance | |||||
| New shares issued | Bonus share | Shares transferred from capital reserve | Other | Subtotal | |||
| Total shares | 689,184,933.00 | 689,184,933.00 | |||||
Other explanation:
Nil
54. Other equity instrument
(1) Outstanding other financial instruments as preferred stock and perpetual bonds at period-endNil
(2) Changes of the outstanding other financial instruments as preferred stock and perpetual bonds at period-end
Unit: RMB/CNY
| Outstanding financial instrument | Period-begin | 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:
Nil
Other explanation:
Nil
55. Capital public reserve
Unit: RMB/CNY
| Item | Opening balance | Current increased | Current decreased | Ending balance |
| Capital premium(Share capital premium) | 150,990,173.10 | 150,990,173.10 | ||
| Other capital public reserve | 627,834,297.85 | 627,834,297.85 | ||
| 1. Debt restructuring income | 482,580,588.23 | 482,580,588.23 | ||
| 2.Other | 145,253,709.62 | 145,253,709.62 | ||
| Total | 778,824,470.95 | 778,824,470.95 |
Other explanation:including changes and reasons for changes
1. Among the “other capital public reserves” , 135,840,297.18 Yuan refers to the payment for creditor from shares assignment bywhole shareholders; majority shareholder Shenzhen Guosheng Energy Investment Development Co., Ltd. donated 5,390,399.74Yuan.
56. Inventory shares
Unit: RMB/CNY
| Item | Opening balance | Current increased | Current decreased | Ending balance |
Other explanation:including changes and reasons for changesNil
57. Other comprehensive income
Unit: RMB/CNY
| Item | Opening balance | Current period incurred | Ending balance | |||||
| Account before income tax in the period | Less: written in other comprehensive income in previous period and carried forward to gains and losses in current period | Less: written in other comprehensive income in previous period and carried forward to retained earnings in current period | Less: Income tax expenses | Belong to parent company after tax | Belong to minority shareholders after tax | |||
Other explanation: including the active part of the hedging gains/losses of cash flow transfer to initial recognition adjustment forthe arbitraged items
Nil
58. Reasonable reserve
Unit: RMB/CNY
| Item | Opening balance | Current increased | Current decreased | Ending balance |
Other explanation:including changes and reasons for changesNil
59. Surplus public reserve
Unit: RMB/CNY
| Item | Opening balance | Current increased | Current decreased | Ending balance |
| Statutory surplus reserves | 32,673,227.01 | 32,673,227.01 | ||
| Total | 32,673,227.01 | 32,673,227.01 |
Explanation: including changes and reasons for changesNil
60. Retained profit
Unit: RMB/CNY
| Item | Current period | Prior period |
| Retained profit at period-end before adjustment | -1,210,553,312.45 | -1,202,936,933.70 |
| Retained profit at period-begin after adjustment | -1,210,553,312.45 | -1,202,936,933.70 |
| Add: net profit attributable to shareholders of parent company for this year | 4,862,298.90 | -1,483,364.22 |
| Retained profit at period-end | -1,205,691,013.55 | -1,204,420,298.12 |
Adjustment for retained profit at period-begin:
1) Retroactive adjustment due to the Accounting Standards for Business Enterprise and relevant new regulations, retained profit atperiod-begin has 0.00 Yuan affected;
2) Due to the accounting policy changes, retained profit at period-begin has 0.00 Yuan affected;
3) Due to the major accounting errors correction, retained profit at period-begin has 0.00 Yuan affected;
4) Consolidation range changed due to the same control, retained profit at period-begin has 0.00 Yuan affected;
5) Total other adjustment impacts 0.00 Yuan retained profit at period-begin
61. Operation revenue and operation cost
Unit: RMB/CNY
| Item | Current period incurred | Prior period incurred | ||
| Revenue | Cost | Revenue | Cost | |
| Main business | 290,765,045.12 | 277,274,706.74 | 104,214,067.47 | 98,957,121.72 |
| Other business | 2,234,117.38 | 1,209,446.00 | 2,451,379.10 | 1,258,517.92 |
| Total | 292,999,162.50 | 278,484,152.74 | 106,665,446.57 | 100,215,639.64 |
Revenue:
Unit: RMB/CNY
| Contract type | 1# Division | 2# Division | Total | |
| Product type | 292,999,162.50 | 292,999,162.50 | ||
| Including: | ||||
| Jewelry and gold | 289,579,544.92 | 289,579,544.92 | ||
| Lithium battery material for bicycles and other | 3,419,617.58 | 3,419,617.58 | ||
| Classification by business area | ||||
| Including: | ||||
| Market or customer type | ||||
| Including: | ||||
| Contract type | ||||
| Including: | ||||
| Classification by time of goods transfer | ||||
| Including: | ||||
| Classification by contract duration | ||||
| Including: | ||||
| Classification by sales channel | ||||
| Including: | ||||
| Total | 292,999,162.50 | 292,999,162.50 |
Information relating to performance obligation:
NilInformation relating to the transaction price assigned to the remaining performance obligation:
The amount of revenue corresponding to performance obligation that have been signed but have not been fulfilled or have not beenfulfilled at the end of the period was 0.00 Yuan, including 0.00 Yuan is expected to be recognized as revenue in subsequent years,
0.00 Yuan is expected to be recognized as revenue in subsequent years, 0.00 Yuan is expected to be recognized as revenue insubsequent years. Other explanation:
Other explanation:
Nil
62. Tax and surcharge
Unit: RMB/CNY
| Item | Current period incurred | Prior period incurred |
| City maintenance & construction tax | 2,712.44 | 2,371.96 |
| Educational surcharge | 1,937.46 | 1,694.26 |
| Stamp tax | 125,047.84 | 38,446.51 |
| Total | 129,697.74 | 42,512.73 |
Other explanation:
Nil
63. Sales expenses
Unit: RMB/CNY
| Item | Current period incurred | Prior period incurred |
| Employee compensation | 656,050.37 | 476,257.53 |
| Marketing promotion fees | 1,318,316.83 | 1,434,059.56 |
| Online marketing fee | 164,884.42 | 325,656.20 |
| Other | 382,962.39 | 187,916.24 |
| Total | 2,522,214.01 | 2,423,889.53 |
Other explanation:
Nil
64. Administration expenses
Unit: RMB/CNY
| Item | Current period incurred | Prior period incurred |
| Employee compensation | 2,956,105.62 | 2,893,765.57 |
| Daily administrative expenses | 1,174,547.18 | 1,961,997.92 |
| Total | 4,130,652.80 | 4,855,763.49 |
Other explanation:
Nil
65. R&D expenses
Unit: RMB/CNY
| Item | Current period incurred | Prior period incurred |
| Employee compensation and benefits | 291,150.18 | 647,544.40 |
| Depreciation and amortization | 46,628.10 | |
| Other | 45,820.72 | |
| Total | 336,970.90 | 694,172.50 |
Other explanation:
Nil
66. Finance expenses
Unit: RMB/CNY
| Item | Current period incurred | Prior period incurred |
| Interest expense | 0.00 | 0.00 |
| Less: Interest income | 70,100.25 | 47,897.11 |
| Commission charge etc. | 11,769.30 | 19,872.34 |
| Total | -58,330.95 | -28,024.77 |
Other explanation:
Nil
67. Other income
Unit: RMB/CNY
| Sources | Current period incurred | Prior period incurred |
| Government subsidy | 100,000.00 | |
| Personal tax withholding fee | 2,092.35 | 3,369.17 |
| Subsidy for stable employment | 50,026.63 |
68. Investment income
Unit: RMB/CNY
| Item | Current period incurred | Prior period incurred |
Other explanation:
Nil
69. Net exposure hedge gains
Unit: RMB/CNY
| Item | Current period incurred | Prior period incurred |
Other explanation:
Nil
70. Income from change of fair value
Unit: RMB/CNY
| Sources | Current period incurred | Prior period incurred |
Other explanation:
Nil
71. Loss of credit impairment
Unit: RMB/CNY
| Item | Current period incurred | Prior period incurred |
| Bad debt loss of other account receivable | -6,087.13 | |
| Bad debt losses of accounts receivable | 334,376.92 | -42,610.48 |
| Total | 328,289.79 | -42,610.48 |
Other explanation:
Nil
72. Impairment loss on assets
Unit: RMB/CNY
| Item | Current period incurred | Prior period incurred |
Other explanation:
Nil
73. Income from assets disposal
Unit: RMB/CNY
| Sources | Current period incurred | Prior period incurred |
74. Non-operating income
Unit: RMB/CNY
| Item | Current period incurred | Prior period incurred | Amount reckoned in current non-recurring gains/losses |
| Other | 1,253,150.81 | 224,228.84 | |
| Total | 1,253,150.81 | 224,228.84 |
Government subsidy reckoned into current gains/losses:
Unit: RMB/CNY
| Government subsidy | Issuing subject | Offering causes | Nature | Subsidy impact current gains/losses (Y/N) | The special subsidy (Y/N) | Amount in the Period | Amount in last period | Assets-related/income-related |
Other explanation:
Nil
75. Non-operating expense
Unit: RMB/CNY
| Item | Current period incurred | Prior period incurred | Amount reckoned in current non-recurring gains/losses |
| Other | 1,462,822.69 | ||
| Total | 1,462,822.69 |
Other explanation:
Nil
76. Income tax expenses
(1) Income tax expenses
Unit: RMB/CNY
| Item | Current period incurred | Prior period incurred |
| Current income tax expense | 1,720,082.71 | 19,647.32 |
| Deferred income tax expense | -82,627.15 | |
| Total | 1,637,455.56 | 19,647.32 |
(2) Adjustment on accounting profit and income tax expenses
Unit: RMB/CNY
| Item | Current period incurred |
| Total profit | 7,574,515.52 |
| Income tax measured by statutory/applicable tax rate | 1,893,628.88 |
| The impact of applying different tax rates to subsidiaries | -74,493.76 |
| Impact of additional deductions of R&D | -99,052.41 |
| Effect of recognized temporary differences on the difference between current tax rate and recognized deferred tax rate | -82,627.15 |
| Income tax expenses | 1,637,455.56 |
Other explanation:
Nil
77. Other comprehensive income
Refer to the Note
78. Items of cash flow statement
(1) Other cash received in relation to operation activities
Unit: RMB/CNY
| Item | Current period incurred | Prior period incurred |
| Interest, rent, utilities, etc. | 1,149,209.40 | 1,033,396.18 |
| Deposits and guarantees received | 60,222.00 | |
| Government subsidy and individual tax handling fee refund | 2,217.90 | 153,395.80 |
| Other | 12,116,466.37 | 7,542,755.24 |
| Total | 13,328,115.67 | 8,729,547.22 |
Explanation on other cash received in relation to operation activities:
Nil
(2) Other cash paid in relation to operation activities
Unit: RMB/CNY
| Item | Current period incurred | Prior period incurred |
| Deposits, security deposits and compensation payment paid | 7,988,000.00 | |
| Payment of period expenses, operation expenses and co-benefit obligations | 4,947,274.36 | 2,872,432.88 |
| Judicial freeze | 402,449.98 | 2,220,591.19 |
| Total | 5,349,724.34 | 13,081,024.07 |
Explanation on other cash paid in relation to operation activities:
Nil
(3) Other cash received from investment activities
Unit: RMB/CNY
| Item | Current period incurred | Prior period incurred |
Explanation on other cash received from investment activities:
Nil
(4) Cash paid related with investment activities
Unit: RMB/CNY
| Item | Current period incurred | Prior period incurred |
Explanation on cash paid related with investment activitiesNil
(5) Other cash received in relation to financing activities
Unit: RMB/CNY
| Item | Current period incurred | Prior period incurred |
Explanation on other cash received in relation to financing activities:
Nil
(6) Other cash paid related with financing activities
Unit: RMB/CNY
| Item | Current period incurred | Prior period incurred |
| Lease payment | 245,979.70 | |
| Total | 245,979.70 |
Explanation on other cash paid related with financing activities:
Nil
79. Supplementary information to cash flow statement
(1) Supplementary information to cash flow statement
Unit: RMB/CNY
| Supplementary information | Current amount | Amount of the previous period |
| 1．Net profit adjusted to cash flow of operation activities: | ||
| Net profit | 5,937,059.96 | -1,223,139.70 |
| Add: Assets impairment provision | -328,289.79 | 42,610.48 |
| Depreciation of fixed assets, consumption of oil assets and depreciation of productive biology assets | 101,255.23 | 199,046.71 |
| Depreciation of right-of-use assets | 173,936.71 | 235,664.04 |
| Amortization of intangible assets | ||
| Amortization of long-term expenses to be apportioned | ||
| Loss from disposal of fixed assets, intangible assets and other long-term assets (gain is listed with “-”) | ||
| Losses on scrapping of fixed assets (gain is listed with “-”) | 12,298.94 | |
| Gain/loss of fair value changes (gain is listed with “-”) | ||
| Financial expenses (gain is listed with “-”) | -58,330.95 | |
| Investment loss (gain is listed with “-”) | ||
| Decrease of deferred income tax asset (increase is listed with “-”) | ||
| Increase of deferred income tax liability (decrease is listed with “-”) | ||
| Decrease of inventory (increase is listed with “-”) | -142,168,042.14 | -15,512,470.01 |
| Decrease of operating receivable accounts (increase is listed with “-”) | 101,511,254.79 | 3,653,478.72 |
| Increase of operating payable accounts (decrease is listed with “-”) | -388,000.06 | 5,545,924.43 |
| Other | -157,516.35 | -2,220,591.19 |
| Net cash flow arising from operating activities | -35,364,373.66 | -9,279,476.52 |
| 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 | 15,558,495.69 | 23,684,542.07 |
| Less: Balance of cash equivalent at year-begin | 50,922,869.35 | 33,246,957.92 |
| Add: Balance at year-end of cash equivalents | ||
| Less: Balance at year-begin of cash equivalents |
| Net increase of cash and cash equivalent | -35,364,373.66 | -9,562,415.85 |
(2) Net cash paid for obtaining subsidiary in the Period
Unit: RMB/CNY
| Amount | |
| Including: | |
| Including: | |
| Including: |
Other explanation:
Nil
(3) Net cash received by disposing subsidiary in the Period
Unit: RMB/CNY
| Amount | |
| Including: | |
| Including: | |
| Including: |
Other explanation:
Nil
(4) Constitution of cash and cash equivalent
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| I. Cash | 15,558,495.69 | 50,922,869.35 |
| Including:Cash on hand | 37,275.25 | 33,531.25 |
| Bank deposit available for payment at any time | 15,521,220.44 | 50,889,338.10 |
| III. Balance of cash and cash equivalents at the period -end | 15,558,495.69 | 50,922,869.35 |
Other explanation:
Nil
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: RMB/CNY
| Item | Ending book value | Restriction reasons |
| Monetary fund | 4,179,071.81 | In monetary funds, there has 4,179,071.81 yuan bank deposit was judicially frozen due to the litigation with Shenzhen Jianzhi Industrial Development Co., Ltd concerned |
| Total | 4,179,071.81 |
Other explanation:
Nil
82. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: RMB/CNY
| Item | Ending foreign currency balance | Convert rate | Ending RMB balance converted |
| Monetary fund | |||
| Including: USD | |||
| EURO | |||
| HKD | |||
| Account receivable | |||
| Including: USD | |||
| EURO | |||
| HKD | |||
| Long-term loans | |||
| Including: USD | |||
| EURO | |||
| HKD | |||
Other explanation:
Nil
(2) Explanation on foreign operational entity, including as for the major foreign operational entity,disclosed main operation place, book-keeping currency and basis for selection; if the book-keepingcurrency changed, explain reasons
□Applicable ?Not applicable
83. Hedging
Disclosed hedging items and relevant hedging instrument based on hedging’s category, disclosed qualitative and quantitative
information for the arbitrage risks:
Nil
84. Government subsidy
(1) Government subsidy
Unit: RMB/CNY
| Category | Amount | Item | Amount reckoned into current gains/losses |
(2) Government subsidy rebate
□Applicable ?Not applicable
Other explanation:
Nil
85. Other
NilVIII. Changes of consolidation scope
1. Enterprise combined under different control
(1) Enterprise combined under different control in the Period
Unit: RMB/CNY
| Acquiree | Time point for equity obtained | Cost of equity obtained | Ratio of equity obtained | Acquired way Equity obtained way | Purchasing date | Standard to determine the purchasing date | Income of acquiree from purchasing date to period-end | Net profit of acquiree from purchasing date to period-end |
Other explanation:
Nil
(2) Combination cost and goodwill
Unit: RMB/CNY
| 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 | |
| The amount by which the goodwill/cost of consolidation is less than the share of fair value of identifiable net assets acquired |
Determination method for fair value of the combination cost and contingent consideration and changes:
NilMain reasons for large goodwill resulted:
NilOther explanation:
(3) Identifiable assets and liability on purchasing date under the acquiree
Unit: RMB/CNY
| Fair value on purchasing date | Book value on purchasing date | |
| Assets: | ||
| Monetary fund | ||
| Account receivable | ||
| Inventory | ||
| Fix assets | ||
| Intangible assets | ||
| Liability: | ||
| Loan | ||
| Account payable | ||
| Deferred income tax liabilities | ||
| Net assets | ||
| Less: Minority interests | ||
| Net assets acquired | ||
Determination method for fair value of the identifiable assets and liabilities:
NilContingent liability of the acquiree bear during combination:
NilOther explanation:
Nil
(4) Gains or losses arising from re-measured by fair value for the equity held before purchasing dateWhether it is a business combination realized by two or more transactions of exchange and a transaction of obtained control rightsin the Period or not
□Yes ?No
(5) On purchasing date or period-end of the combination, combination consideration or fair value of identifiable assets andliability for the acquiree are un-able to confirm rationallyNil
(6) Other explanation:
Nil
2. Enterprise combine under the same control
(1) Enterprise combined under the same control in the Period
Unit: RMB/CNY
| Combined party | Equity ratio obtained in combination | Basis of combined under the same control | Combination date | Standard to determine the combination date | Income of the combined party from period-begin of combination to the combination date | Net profit of the combined party from period-begin of combination to the combination date | Income of the combined party during the comparison period | Net profit of the combined party during the comparison period |
Other explanation:
Nil
(2) Combination cost
Unit: RMB/CNY
| 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:
NilOther explanation:
Nil
(3) Book value of the assets and liability of the combined party on combination date
Unit: RMB/CNY
| Consolidation date | End of last period | |
| Assets: | ||
| Monetary fund | ||
| 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:
NilOther explanation:
Nil
3. Counter purchase
Basic transaction information, basis of counter purchase, whether making up business due to the assets and liability reserved bylisted company and basis, determination of combination cost, amount and calculation on adjusted equity by equity transaction:
Nil
4. Subsidiary disposal
Whether lost controlling rights while dispose subsidiary on one time or not
□Yes ?No
Whether lost controlling rights in the Period while dispose subsidiary on two or more steps or not
□Yes ?No
5. Other reasons for consolidation range changed
Reasons for changed on consolidation range (such as new subsidiary established, subsidiary liquidated etc.)And relevantinformation:
Nil
6. Other
Nil
IX. Equity in other entity
1. Equity in subsidiary
(1) Constitute of enterprise group
| Subsidiary | Main operation place | Registered place | Business nature | Share-holding ratio | Acquired way | |
| Directly | Indirectly | |||||
| Shenzhen Emmelle Industrial Co., Ltd. | Shenzhen | Shenzhen | Distribution of bicycles and spare parts | 70.00% | Investment | |
| Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd | Shenzhen | Shenzhen | Manufacturing and sales of Jewelry, diamonds and gold | 89.20% | Investment | |
| Shenzhen Emmelle Cloud Technology Co., Ltd. | Shenzhen | Shenzhen | Sales of software and information technology service | 49.00% | Investment | |
Explanation on share-holding ratio in subsidiary different from ratio of voting right:
NilBasis for controlling the invested entity with half or below voting rights held and without controlling invested entity but with overhalf and over voting rights:
Subsidiary of the Company-Shenzhen Emmelle Industry Co., Ltd. (with 70% equity held by the Company) holds 70% equity ofShenzhen Emmelle Cloud Technology Co., Ltd
Controlling basis for the structuring entity included in consolidated range:
NilBasis on determining to be an agent or consignor:
Nil
Other explanation:
Nil
(2) Important non-wholly-owned subsidiary
Unit: RMB/CNY
| Subsidiary | Share-holding ratio of minority | Gains/losses attributable to minority in the Period | Dividend announced to distribute for minority in the Period | Ending equity of minority |
| Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd | 10.80% | 967,919.89 | 15,149,847.54 |
Explanation on share-holding ratio of minority different from ratio of voting right:
NilOther explanation:
Nil
(3) Main finance of the important non-wholly-owned subsidiary
Unit: RMB/CNY
| 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 | |
| Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd | 208,223,539.54 | 253,424.49 | 208,476,964.03 | 89,402,926.14 | 89,402,926.14 | 43,904,659.26 | 153,797.14 | 44,058,456.40 | 4,649,218.79 | 4,649,218.79 | ||
Unit: RMB/CNY
| Subsidiary | Current period incurred | Prior period incurred | ||||||
| Operation revenue | Net profit | Total comprehensive income | Cash flow from operation activity | Operation revenue | Net profit | Total comprehensive income | Cash flow from operation activity | |
| Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd | 264,533,146.97 | 4,664,800.28 | 4,664,800.28 | -73,691,104.35 | 93,257,753.50 | 766,245.45 | 766,245.45 | -6,051,799.06 |
Other explanation:
Nil
(4) Major restriction on using corporate assets and liquidate corporate debts
Nil
(5) Financial or other supporting provided to structuring entity that included in consolidated financial statementNilOther explanation:
Nil
2. Transaction that has owners equity shares changed in subsidiary but still with controlling rights
(1) Owners equity shares changed in subsidiary
Nil
(2) Impact on minority’s interest and owners’ equity attributable to parent company
Unit: RMB/CNY
| 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 capital public reserve | |
| Adjust surplus public reserve | |
| Adjusted retained profit |
Other explanation:
Nil
3. Equity in joint venture and associated enterprise
(1) Important joint venture or associated enterprise
| Joint venture or associated enterprise | Main operation place | Registered place | Business nature | Share-holding ratio | Accounting treatment | |
| Directly | Indirectly | |||||
Share-holding ratio or shares enjoyed different from voting right ratio:
Nil
Basis of the voting rights with 20% below but with major influence, or without major influence but with over 20% (20% included)voting rights hold:
Nil
(2) Main financial information of the important joint venture
Unit: RMB/CNY
| Ending balance/Current period incurred | Opening balance/Prior period incurred | |
| Current assets | ||
| Including: cash and cash equivalent | ||
| Non-current assets | ||
| Total assets | ||
| Current liabilities | ||
| Non-current liabilities | ||
| Total liabilities | ||
| Minority interests | ||
| 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 | ||
| Operation revenue | ||
| Finance 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:
Nil
(3) Main financial information of the important associated enterprise
Unit: RMB/CNY
| Ending balance/Current period incurred | Opening balance/Prior period incurred | |
| Current assets | ||
| Non-current assets | ||
| Total assets | ||
| Current liabilities | ||
| Non-current liabilities | ||
| Total liabilities | ||
| Minority interests | ||
| Equity attributable to shareholder of parent company | ||
| Share of net assets measured by shareholding | ||
| Adjustment | ||
| --Goodwill | ||
| --Unrealized profit of internal trading | ||
| --Other | ||
| Book value of equity investment in associated enterprise | ||
| Fair value of the equity investment of associated enterprise with public offers concerned | ||
| Operation revenue | ||
| Net profit | ||
| Net profit of discontinuing operation | ||
| Other comprehensive income | ||
| Total comprehensive income | ||
| Dividends received from associated enterprise in the year |
Other explanation:
Nil
(4) Financial summary for un-important joint venture or associated enterprise
Unit: RMB/CNY
| Ending balance/Current period incurred | Opening balance/Prior period incurred | |
| Joint venture： | ||
| Total numbers measured by share-holding ratio | ||
| Associated enterprise： | ||
| Total numbers measured by share-holding ratio |
Other explanation:
Nil
(5) Assets transfer ability has major restriction from joint venture or associated enterprise
Nil
(6) Excess losses from joint venture or associated enterprise
Unit: RMB/CNY
| Joint venture or associated enterprise | Cumulative un-confirmed losses | Un-confirmed losses not recognized in the Period (or net profit enjoyed in the Period) | Cumulative un-confirmed losses at period-end |
Other explanation:
Nil
(7) Un-confirmed commitment with investment concerned with joint venture
Nil
(8) Contingent liability with investment concerned with joint venture or associated enterpriseNil
4. Co-runs operation
| Name | Main operation place | Registered place | Business nature | Share-holding ratio/share enjoyed | |
| Directly | Indirectly | ||||
Share-holding ratio or shares enjoyed different from voting right ratio:
NilIf the co-runs entity is the separate entity, basis of the co-runs classificationNilOther explanation:
Nil
5. Equity in structuring entity that excluding in the consolidated financial statementRelevant explanationNil
6. Other
Nil
X. Risks Related to Financial InstrumentsNilXI. Disclosure of fair value
1. Ending fair value of the assets and liabilities measured by fair value
Unit: RMB/CNY
| Item | Ending fair value | |||
| First-order | Second-order | Third-order | Total | |
| I. Sustaining measured by fair value | -- | -- | -- | -- |
| II. Non-sustaining measured by fair value | -- | -- | -- | -- |
2. Recognized basis for the market price sustaining and non-persistent measured by fair value on first-order
Nil
3. Valuation technique and qualitative and quantitative information on major parameters for the fair valuemeasure sustaining and non-persistent on second-orderNil
4. Valuation technique and qualitative and quantitative information on major parameters for the fair valuemeasure sustaining and non-persistent on third-orderNil
5. Adjustment information and sensitivity analysis of unobservable parameters for the fair value measuresustaining and non-persistent on third-order
Nil
6. Sustaining items measured by fair value, as for the conversion between at all levels, reasons for conversionand policy for conversion time pointNil
7. Changes of valuation technique in the Period
Nil
8. Financial assets and liability not measured by fair value
Nil
9. Other
Nil
XII. Related party and related transactions
1. Parent company
| Parent company | Registered place | Business nature | Registered capital | Share-holding ratio on the enterprise for parent company | Voting right ratio on the enterprise |
| Wansheng Industrial Holdings (Shenzhen) Co., Ltd | Shenzhen | General business: investment in establishment of industrial (specific items are separately declared) | 500 million Yuan | 20.00% | 20.00% |
Explanation on parent company of the enterpriseNilUltimate controller of the Company: Wang sheng hong。Other explanation:
Nil
2. Subsidiary of the Enterprise
Found more in Note VIII-1
3. Associated enterprise and joint venture
Found more in NoteOther associated enterprise and joint venture that have related transaction with the Company in the Period or occurred in previousperiod
| Joint venture or associated enterprise | Relationship with the Company |
Other explanation:
Nil
4. Other related party
| Other related party | Relationship with the Company |
| Shenzhen Zuankinson Jewelry Gold Supply Chain Co., Ltd | Shareholder of the subsidiary Xinsen Jewelry |
| Fuzhou Rongrun Jewelry Co., Ltd. | The enterprise under the effective control of Chen Xuejin, wifu of Chen Junrong, the shareholder of Shenzhen Zuankinson Jewelry Gold Supply Chain Co., Ltd. |
| Fuzhou Zuankinson Jewelry Co., Ltd. | 100% equity held by Shenzhen Zuankinson Jewelry Gold Supply Chain Co., Ltd. |
Other explanation:
Nil
5. Related transaction
(1) Goods purchasing, labor service providing and receiving
Goods purchasing/labor service receiving
Unit: RMB/CNY
| Related party | Transaction content | Current period incurred | Approved transaction amount | Whether more than the transaction amount | Prior period incurred |
Goods sold/labor service providing
Unit: RMB/CNY
| Related party | Transaction content | Current period incurred | Prior period incurred |
| Fuzhou Rongrun Jewelry Co., Ltd. | Sales of goods | 53,899,331.99 | 32,161,964.71 |
| Fuzhou Zuankinson Jewelry Co., Ltd. | Sales of goods | 49,772,997.49 |
Explanation on goods purchasing, labor service providing and receivingNil
(2) Related trusteeship/contract and delegated administration/outsourcing
Trusteeship/contract
Unit: RMB/CNY
| Client/ contract-out party | Entrusting party/ contractor | Assets type | Starting date | Maturity date | Yield pricing basis | Income from trusteeship/contract |
Explanation on related trusteeship/contractNilDelegated administration/outsourcing
Unit: RMB/CNY
| Client/ contract-out party | Entrusting party/ contractor | Assets type | Starting date | Maturity date | Pricing basis of trustee fee/outsourcing fee | Trustee fee/outsourcing fee recognized in the Period |
Explanation on related administration/outsourcingNil
(3) Related lease
As a lessor for the Company:
Unit: RMB/CNY
| Lessee | Assets type | Lease income recognized in the Period | Lease income recognized in prior Period |
As a lessee for the Company:
Unit: RMB/CNY
| 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 incurred | Prior period incurred | Current period incurred | Prior period incurred | Current period incurred | Prior period incurred | Current period incurred | Prior period incurred | Current period incurred | Prior period incurred | ||
Explanation on related leaseNil
(4) Related guarantee
As a guarantor for the Company
Unit: RMB/CNY
| Secured party | Amount guarantee | Starting date | Due date | Guarantee completed (Y/N) |
As a secured party for the Company
Unit: RMB/CNY
| Guarantor | Amount guarantee | Starting date | Due date | Guarantee completed (Y/N) |
Explanation on related guaranteeNil
(5) Borrowed funds of related party
Unit: RMB/CNY
| Related party | Borrowed funds | Starting date | Due date | Note |
| Borrowing | ||||
| Lending | ||||
(6) Assets transfer and debt restructuring of related party
Unit: RMB/CNY
| Related party | Transaction content | Current period incurred | Prior period incurred |
(7) Remuneration of key manager
Unit: RMB/CNY
| Item | Current period incurred | Prior period incurred |
| Remuneration of key manager | 703,586.71 | 769,418.63 |
(8) Other related transactions
Nil
6. Receivable/payable items of related parties
(1) Receivable item
Unit: RMB/CNY
| Item | Related party | Ending balance | Opening balance | ||
| Book balance | Bad debt provision | Book balance | Bad debt provision | ||
| Account receivable | Fuzhou Rongrun Jewelry Co., Ltd. | 28,325,616.77 | 44,987,445.10 | ||
| Account receivable | Fuzhou Zuankinson Jewelry Co., Ltd. | 23,737,828.86 | 19,085,600.00 | ||
(2) Payable item
Unit: RMB/CNY
| Item | Related party | Ending book balance | Opening book balance |
| Other account payable | Shenzhen Guosheng Energy Investment Development Co., Ltd. | 6,500,000.00 | 6,500,000.00 |
7. Commitments of related party
Nil
8. Other
Nil
XIII. Share-based payment
1. General share-based payment
□Applicable ?Not applicable
2. Share-based payment settled by equity
□Applicable ?Not applicable
3. Share-based payment settled by cash
□Applicable ?Not applicable
4. Revised and termination on share-based payment
Nil
5. Other
NilXIV. Commitment or contingency
1. Important commitments
Important commitments in balance sheet dateNil
2. Contingency
(1) Contingency on balance sheet date
Nil
(2) For the important contingency not necessary to disclosed by the Company, explained reasons
The Company has no important contingency that need to disclosed
3. Other
Nil
XV. Events after balance sheet date
1. Important non-adjustment items
Unit: RMB/CNY
| Item | Content | Impact on financial status and operation results | Reasons on un-able to estimated the impact number |
2. Profit distribution
3. Sales return
Nil
4. Other events after balance sheet date
NilXVI. Other important events
1. Previous accounting errors collection
(1) Retrospective restatement
Unit: RMB/CNY
| Correction content | Treatment procedures | Impact items of statement during a comparison | Cumulative impacted number |
(2) Prospective application
| Correction content | Approval procedures | Reasons for prospective application adopted |
2. Debt restructuring
Nil
3. Assets replacement
(1) Non-monetary assets change
Nil
(2) Other assets replacement
Nil
4. Pension plan
Nil
5. Discontinued operations
Unit: RMB/CNY
| Item | Revenue | Expenses | Total profit | Income tax expenses | Net profit | Discontinued operations profit attributable to owners of parent company |
Other explanation:
Nil
6. Segment
(1) Recognition basis and accounting policy for reportable segment
Nil
(2) Financial information for reportable segment
Unit: RMB/CNY
| Item | Offset between segments | Total | |
(3) The Company has no reportable segments, or unable to disclose total assets and total liability forreportable segments, explain reasonsNil
(4) Other explanation:
Nil
7. Major transaction and events makes influence on investor’s decision
Nil
8. Other
NilXVII. Principle notes of financial statements of parent company
1. Account receivable
(1) Category of account receivable
Unit: RMB/CNY
| Category | Ending balance | Opening balance | ||||||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
| Amount | Ratio | Amount | Accrual ratio | Amount | Ratio | Amount | Accrual ratio | |||
| Account receivable with bad debt provision accrual by single basis | 19,743,095.32 | 96.40% | 15,469,402.18 | 78.35% | 4,273,693.14 | 19,829,097.29 | 8.63% | 15,489,402.18 | 78.11% | 4,339,695.11 |
| Including: | ||||||||||
| Accounts with single significant amount and with bad debts provision accrued individually | 15,780,156.69 | 78.44% | 12,624,125.35 | 80.00% | 3,156,031.34 | 15,780,156.69 | 6.87% | 12,624,125.35 | 80.00% | 3,156,031.34 |
| Accounts with single minor amount but with bad debts provision accrued individually | 3,962,938.63 | 19.70% | 2,845,276.83 | 71.80% | 1,117,661.80 | 4,048,940.60 | 1.76% | 2,865,276.83 | 70.77% | 1,183,663.77 |
| Account | 373,517. | 1.86% | 1,120.55 | 0.30% | 372,396. | 210,053, | 91.37% | 630,160. | 0.30% | 209,423, |
| receivable with bad debt provision accrual by portfolio | 00 | 45 | 360.30 | 08 | 200.22 | |||||
| Including: | ||||||||||
| Account receivable withdrawal bad debt provision by group of credit risk characteristics (Aging analysis method) | 373,517.00 | 1.86% | 1,120.55 | 0.30% | 372,396.45 | 210,053,360.30 | 91.37% | 630,160.08 | 0.30% | 209,423,200.22 |
| Total | 20,116,612.32 | 100.00% | 15,470,522.73 | 76.90% | 4,646,089.59 | 229,882,457.59 | 100.00% | 16,119,562.26 | 7.01% | 213,762,895.33 |
Bad debt provision accrual on single basis: Accounts with single significant amount and with bad debts provision accruedindividually
Unit: RMB/CNY
| Name of the Company | Ending balance | |||
| Book balance | Bad debt provision | Accrual ratio | Reason for accrual | |
| Guangshui Jiaxu Energy Technology Co., Ltd. | 15,780,156.69 | 12,624,125.35 | 80.00% | Note: the enterprise has stopped production and is expected to be difficult to recover, the Company has filed a lawsuit against the enterprise |
| Total | 15,780,156.69 | 12,624,125.35 | ||
Bad debt provision accrual on single basis: Accounts with single minor amount but with bad debts provision accrued individually
Unit: RMB/CNY
| Name of the Company | Ending balance | |||
| Book balance | Bad debt provision | Accrual ratio | Reason for accrual | |
| Suzhou Jiaxin Economic Trade Co., Ltd. | 888,757.00 | 888,757.00 | 100.00% | No bad debt accrual between the related parties during the combination term |
| Shenzhen Emmelle Industrial Co., Ltd. | 867,189.91 | 0.00 | 0.00% | Expected to be difficult in collection |
| Dongguan Daxiang New Energy Co., Ltd. | 656,734.00 | 656,734.00 | 100.00% | Expected to be difficult in collection |
| Suzhou Daming Vehicle Industry Co., Ltd. | 649,688.00 | 519,750.40 | 80.00% | Expected to be difficult in collection |
| Guangdong Xinlingjia New Energy Co., Ltd. | 348,136.00 | 348,136.00 | 100.00% | Expected to be difficult in collection |
| Hubei Topsdun Eletronic Tech. Co., Ltd. | 241,068.58 | 120,534.29 | 50.00% | Expected to be difficult in collection |
| Tianjin Huiju Electric Vehicle Co., Ltd. | 116,840.14 | 116,840.14 | 100.00% | Expected to be difficult in collection |
| Other | 194,525.00 | 194,525.00 | 100.00% | Expected to be difficult in collection |
| Total | 3,962,938.63 | 2,845,276.83 |
Bad debt provision accrual on portfolio:Accounts receivable with provision for bad debts by aging analysis method
Unit: RMB/CNY
| Name of the Company | Ending balance | ||
| Book balance | Bad debt provision | Accrual ratio | |
| Within one year(one year included) | 373,517.00 | 1,120.55 | 0.30% |
| Total | 373,517.00 | 1,120.55 | |
Explanation on portfolio basis:
NilIf the provision for bad debts of account receivable is made in accordance with the general model of expected credit losses, pleaserefer to the disclosure of other account receivable to disclose related information about bad-debt provisions:
□Applicable ?Not applicable
Disclosure by ageing
Unit: RMB/CNY
| Account age | Ending balance |
| Within one year(one year included) | 6,670,146.72 |
| 1-2 years | 11,003,540.60 |
| 2-3 years | 1,115,247.00 |
| Over 3 years | 1,327,678.00 |
| 3-4 years | 979,542.00 |
| 4-5 years | 348,136.00 |
| Total | 20,116,612.32 |
(2) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
Unit: RMB/CNY
| Category | Opening balance | Current changes | Ending balance | |||
| Accrual | Collected or reversal | Write off | Other | |||
| Accrual of bad debt provision | 16,119,562.26 | 649,039.53 | 15,470,522.73 | |||
| for account receivable in the Period | ||||||
| Total | 16,119,562.26 | 649,039.53 | 15,470,522.73 |
Including important amount of bad debt provision collected or reversal in the period:
Unit: RMB/CNY
| Enterprise | Amount collected or reversal | Collection way |
Nil
(3) Account receivables actually write-off during the reporting period
Unit: RMB/CNY
| Item | Amount written off |
Including important account receivables write-off:
Unit: RMB/CNY
| Enterprise | Nature | Amount written off | Causes | Procedure | Amount cause by related transactions or not (Y/N) |
Explanation on account receivable write-off:
Nil
(4) Top five account receivables collected by arrears party at ending balance
Unit: RMB/CNY
| Enterprise | Ending balance of accounts receivable | Proportion of total closing balance of accounts receivable | Ending balance of bad bet provision |
| Guangshui Jiaxu Energy Technology Co., Ltd. | 15,780,156.69 | 78.44% | 12,624,125.35 |
| Suzhou Jiaxin Economic Trade Co., Ltd. | 888,757.00 | 4.42% | 888,757.00 |
| Shenzhen Emmelle Industrial Co., Ltd. | 867,189.91 | 4.31% | 0.00 |
| Dongguan Daxiang New Energy Co., Ltd. | 656,734.00 | 3.26% | 656,734.00 |
| Suzhou Daming Vehicle Industry Co., Ltd. | 649,688.00 | 3.23% | 519,750.40 |
| Total | 18,842,525.60 | 93.66% |
(5) Account receivable derecognized due to transfer of financial assets
Nil
(6) Assets and liability resulted by account receivable transfer and continuous involvement
NilOther explanation:
Nil
2. Other account receivable
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| Other account receivable | 67,555,513.92 | 209,606.79 |
| Total | 67,555,513.92 | 209,606.79 |
(1) Interest receivable
1) Category of interest receivable
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
2) Important overdue interest
Unit: RMB/CNY
| Borrower | Ending balance | Overdue time | Overdue reason | Impairment (Y/N) and judgment basis |
Other explanation:
Nil
3) Accrual of bad debt provision
□Applicable ?Not applicable
(2) Dividend receivable
1) Category of dividend receivable
Unit: RMB/CNY
| Item (or the invested entity) | Ending balance | Opening balance |
2) Important dividend receivable with over one year aged
Unit: RMB/CNY
| Item (or the invested entity) | Ending balance | Account age | Causes of failure for collection | Impairment (Y/N) and judgment basis |
3) Accrual of bad debt provision
□Applicable ?Not applicable
Other explanation:
Nil
(3) Other account receivable
1) Other account receivable by nature of payment
Unit: RMB/CNY
| Nature | Ending book balance | Opening book balance |
| Current account | 67,300,000.00 | 0.00 |
| Other | 225,758.27 | 119,576.50 |
| Reserve fund | 30,524.50 | 20,198.00 |
| Payment for equipment | 11,400.00 | 11,400.00 |
| Deposit or margin | 500.00 | 70,963.00 |
| Total | 67,568,182.77 | 222,137.50 |
2) Accrual of bad debt provision
Unit: RMB/CNY
| Bad debt provision | Phase I | Phase II | Phase II | Total |
| Expected credit losses over next 12 months | Expected credit losses for the entire duration (without credit impairment occurred) | Expected credit losses for the entire duration (with credit impairment occurred) | ||
| Balance on January 1, 2023 | 12,530.71 | 12,530.71 | ||
| January 1, 2023 balance in the current period | ||||
| Accrual in the Period | 138.14 | 138.14 | ||
| Balance on June 30, 2023 | 12,668.85 | 12,668.85 |
Change of book balance of loss provision with amount has major changes in the period
□Applicable ?Not applicable
Disclosure by ageing
Unit: RMB/CNY
| Account age | Ending balance |
| Within one year(one year included) | 67,416,708.27 |
| 1-2 years | 139,574.50 |
| Over 3 years | 11,900.00 |
| Over 5 years | 11,900.00 |
| Total | 67,568,182.77 |
3) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
Unit: RMB/CNY
| Category | Opening balance | Current changes | Ending balance | |||
| Accrual | Collected or reversal | Write off | Other | |||
| Other account receivable Bad debt provision-Phase I | 12,530.71 | 138.14 | 12,668.85 | |||
| Total | 12,530.71 | 138.14 | 12,668.85 | |||
NilImportant amount of bad debt provision switch-back or collection in the period:
Unit: RMB/CNY
| Enterprise | Amount switch-back or collection | Collection way |
Nil
4) Other account receivables actually write-off during the reporting period
Unit: RMB/CNY
| Item | Amount written off |
Including important other account receivables write-off:
Unit: RMB/CNY
| Enterprise | Nature of other account receivable | Amount written off | Causes | Procedure | Amount cause by related transactions or not (Y/N) |
Other explanation on account receivable write-off:
Nil
5) Top 5 other account receivable collected by arrears party at ending balance
Unit: RMB/CNY
| Enterprise | Nature | Ending balance | Account age | Proportion in total other account receivables at period-end | Ending balance of bad bet provision |
| Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd | Current account of subsidiary | 67,300,000.00 | Within one year | 99.60% | 0.00 |
| Other | Deposit or margin | 225,758.27 | 1-2 years | 0.33% | 677.28 |
| Huang Zeqi | Reserve fund | 19,998.00 | Within one year | 0.03% | 59.99 |
| Shenzhen Hongkang Instrument Tech. Co., Ltd | Payment for equipment | 11,400.00 | Over 5 years | 0.03% | 11,400.00 |
| Yi Wenzhi | Deposit or margin | 10,000.00 | 1-2 years | 0.01% | 30.00 |
| Total | 67,567,156.27 | 100.00% | 12,167.27 |
6) Account receivable with government subsidy involved
Unit: RMB/CNY
| Enterprise | Government subsidy | Ending balance | Ending account age | Time, amount and basis of amount collection estimated |
Nil
7) Other account receivable derecognized due to financial assets transfer
Nil
8) Assets and liability resulted by other account receivable transfer and continuous involvementNilOther explanation:
Nil
3. Long-term equity investment
Unit: RMB/CNY
| Item | Ending balance | Opening balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Investment in subsidiary | 94,960,379.73 | 94,960,379.73 | 19,960,379.73 | 19,960,379.73 | ||
| Total | 94,960,379.73 | 94,960,379.73 | 19,960,379.73 | 19,960,379.73 | ||
(1) Investment in subsidiary
Unit: RMB/CNY
| The invested entity | Opening balance(Book value) | Changes in the period (+, -) | Ending balance(Book value) | Ending balance of impairment provision | |||
| Additional investment | Capital reduction | Accrual of impairment provision | Other | ||||
| Shenzhen Emmelle Industrial Co., Ltd. | 10,379.73 | 10,379.73 | |||||
| Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd | 19,950,000.00 | 75,000,000.00 | 94,950,000.00 | ||||
| Total | 19,960,379.73 | 75,000,000.00 | 94,960,379.73 |
(2) Investment for associates and joint venture
Unit: RMB/CNY
| Funded enterprise | Opening balance(Book value) | Changes in the period (+, -) | Ending balance(Book value) | Ending balance of impairment provision | |||||||
| Additional investment | Capital reduction | Investment gains recognized under equity | Other comprehensive income adjustment | Other equity change | Cash dividend or profit announced to issued | Accrual of impairment provision | Other | ||||
| I. Joint venture | |||||||||||
| II. Associated enterprise | |||||||||||
(3) Other explanation:
Nil
4. Operation revenue and operation cost
Unit: RMB/CNY
| Item | Current period incurred | Prior period incurred | ||
| Revenue | Cost | Revenue | Cost | |
| Main business | 24,987,989.13 | 22,297,957.34 | 4,826,647.58 | 4,774,119.38 |
| Other business | 1,214,376.83 | 1,119,937.21 | 1,169,585.77 | 1,136,928.56 |
| Total | 26,202,365.96 | 23,417,894.55 | 5,996,233.35 | 5,911,047.94 |
Revenue:
Unit: RMB/CNY
| Contract type | 1# Division | 2# Division | Total | |
| Product type | 26,202,365.96 | 26,202,365.96 | ||
| Including: | ||||
| Gold jewelry | 25,046,397.95 | 25,046,397.95 | ||
| Lithium battery and other | 1,155,968.01 | 1,155,968.01 | ||
| Classification by business area | ||||
| Including: | ||||
| Market or customer type | ||||
| Including: |
| Contract type | ||||
| Including: | ||||
| Classification by time of goods transfer | ||||
| Including: | ||||
| Classification by contract duration | ||||
| Including: | ||||
| Classification by sales channel | ||||
| Including: | ||||
| Total | 26,202,365.96 | 26,202,365.96 |
Information relating to performance obligation:
NilInformation relating to the transaction price assigned to the remaining performance obligation:
The amount of income corresponding to the performance obligations that have been signed at the end of this reporting period buthave not yet been fulfilled or have not done with fulfillment is 0.00 yuan, among them, yuan of revenue is expected to berecognized in YEAR, yuan of revenue is expected to be recognized in YEAR, and yuan of revenue is expected to be recognized inYEAR.Other explanation:
Nil
5. Investment income
Unit: RMB/CNY
| Item | Current period incurred | Prior period incurred |
6. Other
NilXVIII. Supplementary Information
1. Current non-recurring gains/losses
?Applicable □Not applicable
Unit: RMB/CNY
| Item | Amount | Note |
| Government 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) | 2,092.35 | |
| Switch-back of provision of impairment of account receivable which are treated with separate depreciation test | 33,620.00 | |
| Other non-operation revenue and expenditure except for the aforementioned items | -209,671.88 | |
| Less: Impact on income tax | -43,647.46 | |
| Amount of impact of minority interests | 756.37 | |
| Total | -131,068.44 | -- |
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)/loss in Q&AAnnouncement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss
□Applicable ?Not applicable
2. ROE and EPS
| Profits during report period | Weighted average ROE | Earnings per share | |
| Basic EPS(RMB/Share) | Diluted EPS(RMB/Share) | ||
| Net profits belong to common stock stockholders of the Company | 1.66% | 0.0071 | 0.0071 |
| Net profits belong to common stock stockholders of the Company after deducting nonrecurring gains and losses | 1.71% | 0.0072 | 0.0072 |
3. Difference of the accounting data under accounting rules in and out of China
(1) Difference of the net profit and net assets disclosed in financial report, under both IAS (InternationalAccounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□Applicable ?Not applicable
(2) Difference of the net profit and net assets disclosed in financial report, under both foreign accountingrules and Chinese GAAP (Generally Accepted Accounting Principles)
□Applicable ?Not applicable
(3) Explain accounting difference over the accounting rules in and out of China; as for the differenceadjustment for data audited by foreign auditing organ, noted the name of such foreign organ
Nil
4. Other
Nil
Board of Directors of
Shenzhen China Bicycle Company (Holdings) Limited
25 August 2023