Shenzhen China Bicycle Company (Holdings) Limited
Annual Report of 2020
April 2021
Section I. Important Notice, Contents and InterpretationBoard of Directors, Supervisory Committee, all directors, supervisors and seniorexecutives of Shenzhen China Bicycle Company (Holdings) Limited (hereinafterreferred to as the Company) hereby confirm that there are no any fictitiousstatements, misleading statements, or important omissions carried in this report,and shall take all responsibilities, individual and/or joint, for the reality,accuracy and completion of the whole contents.Li Hai, Principal of the Company, Sun Longlong, person in charge of accountingworks and Zhong Xiaojin, person in charge of accounting organ (accountingprincipal) hereby confirm that the Financial Report of 2020 Annual Report isauthentic, accurate and complete.All directors are attended the Board Meeting for report deliberation.The Company plans not to distribute cash dividends, not to send bonus shares,and no reserve capitalizing.
Content
Section I Important Notice, Content and Interpretation ...... 2
Section II Company Profile and Main Financial Indexes ...... 5
Section III Summary of Company Business ...... 10
Section IV Discussion and Analysis of the Operation ...... 16
Section V Important Events ...... 33
Section VI Changes in shares and shareholders ...... 44
Section VII Preferred Stock ...... 53
Section VIII Convertible Bonds ...... 54Section IXParticulars about Directors, Supervisors and Senior Executives ....... 55Section X Corporate Governance ...... 63
Section XI Corporate Bond ...... 69
Section XII Financial report ...... 70
Section XIII Documents available for reference ...... 220
Interpretation
Items | Refers to | Contents |
Section II. Company Profile and Main Financial Indexes
I. Company information
Short form of the stock | *ST Zhonghua –A, *ST Zhonghua –B | Code for share | 000017, 200017 |
Stock exchange for listing | Shenzhen Stock Exchange | ||
Name of the Company (in Chinese) | 深圳中华自行车(集团)股份有限公司 | ||
Short form of the Company (in Chinese) | 深中华 | ||
Foreign name of the Company (if applicable) | Shenzhen China Bicycle Company (Holdings) Limited | ||
Short form of foreign name of the Company (if applicable) | CBC | ||
Legal representative | Li Hai | ||
Registrations add. | No. 3008, Buxin Rd., Shenzhen | ||
Code for registrations add | 518019 | ||
Offices add. | 501 Zhongxin Technology Building, No.31 Bagua Rd., Bagualing, Futian District, Shenzhen | ||
Codes for office add. | 518029 | ||
Company’s Internet Web Site | www.cbc.com.cn | ||
dmc@szcbc.com |
Secretary of the Board | Rep. of security affairs | |
Name | Sun Longlong | Yu Xiaomin, Zhong Xiaojin |
Contact add. | 501 Zhongxin Technology Building, No.31 Bagua Rd., Bagualing, Futian District, Shenzhen | 501 Zhongxin Technology Building, No.31 Bagua Rd., Bagualing, Futian District, Shenzhen |
Tel. | 0755-25516998,28181666 | 0755-25516998,28181666 |
Fax. | 0755-28181009 | 0755-28181009 |
dmc@szcbc.com | dmc@szcbc.com |
Newspaper appointed for information disclosure | Securities Times; Hong Kong Commercial Daily |
Website for annual report publish appointed by CSRC | Juchao Website (www.cninfo.com.cn) |
Preparation place for annual report | 501 Zhongxin Technology Building, No.31 Bagua Rd., Bagualing, Futian District, Shenzhen |
Organization code | 914403006188304524 |
Changes of main business since listing (if applicable) | Main products or services provided at present: Emmelle bicycle, electric bicycle, lithium battery materials and gold jewelry. |
Previous changes for controlling shareholders (if applicable) | 1. In March 1992, the Stock of the Company was listed in Shenzhen Stock Exchange, and 23.28% equity of the Company was held by Shenzhen Lionda Holding Co., Ltd. and Hong Kong Dahuan Bicycle Co., Ltd respectively. 2. In March 2002, legal shares 13.58% A-stock of the Company was obtained by China Huarong Asset Management Co., Ltd. through court auction, and became the first majority shareholder of the Company. 3. On 13 November 2006, the 65,098,412 legal shears of CBC held by Huarong Company was acquired by Shenzhen Guosheng Energy Investment Development Co., Ltd. via the “Equity Transfer Agreement” signed, and first majority of the Company comes to Guosheng Energy. Guosheng Energy is the wholly-owned subsidiary of National Investment, actual controller was Zhang Yanfeng. 4. In January 2011, controlling shareholder of Shenzhen Guosheng Energy Investment Development Co., Ltd.—Shenzhen National Investment Development Co., Ltd. entered into equity transfer agreement with Mr. Ji Hanfei, 100% equity of Guosheng Energy was transfer to Mr. Ji Hanfei with price of 70 million. Shenzhen Guosheng Energy Investment Development Co., Ltd. Shenzhen Guosheng Energy Investment Development Co., Ltd. holds 63,508,747 A-stock of the Company with 11.52% in total share capital of the Company. 5. On February 20, 2017, Ji Hanfei and Guosheng Energy made an “Explanation” to abandon the actual control of the Company, after Ji Hanfei made the declaration to abandon the actual control of the Company, the investment from CBC by Mr. Ji changed to general investment instead of actual controlling, and the actual controller of the Company changed from Ji Hanfei to no actual controller. |
Name of CPA | Baker Tilly China Certified Public Accountants (LLP) |
Offices add. for CPA | A-1 and A-5 of No.68 Building, No.19 Chegongzhuang West Road, Haidian District Beijing |
Signing Accountants | Chen Zhigang, Zhang Lei |
VI. Main accounting data and financial indexesWhether it has retroactive adjustment or re-statement on previous accounting data or not
□ Yes √ No
2020 | 2019 | Changes over last year (+,-) | 2018 | |
Operating income (RMB) | 117,857,480.17 | 76,022,687.75 | 55.03% | 119,906,950.34 |
Net profit attributable to shareholders of the listed company (RMB) | 3,785,834.68 | -7,186,905.64 | 155.44% | -1,591,968.91 |
Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses (RMB) | 3,071,751.90 | -7,370,499.83 | 143.29% | -1,837,914.46 |
Net cash flow arising from operating activities (RMB) | 3,942,228.96 | -13,791,941.34 | 128.58% | -9,479,474.16 |
Basic earnings per share (RMB/Share) | 0.0069 | -0.0130 | 155.38% | -0.0029 |
Diluted earnings per share (RMB/Share) | 0.0069 | -0.0130 | 155.38% | -0.0029 |
Weighted average ROE | 42.01% | -53.69% | 95.70% | -10.54% |
Year-end of 2020 | Year-end of 2019 | Changes over end of last year (+,-) | Year-end of 2018 | |
Total assets (RMB) | 91,742,769.99 | 62,733,602.58 | 46.24% | 73,242,960.17 |
Net assets attributable to shareholder of listed company (RMB) | 10,905,230.98 | 7,119,396.30 | 53.18% | 14,306,301.94 |
The Company had no difference of the net profit or net assets disclosed in financial report, under either IAS (InternationalAccounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
2. Difference of the net profit and net assets disclosed in financial report, under both foreign accountingrules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign accounting rules orChinese GAAP (Generally Accepted Accounting Principles) in the period.
VIII. Quarterly main financial index
In RMB
Q 1 | Q 2 | Q 3 | Q 4 | |
Operating income | 7,434,449.73 | 35,221,905.48 | 40,216,980.94 | 34,984,144.02 |
Net profit attributable to shareholders of the listed company | -591,902.33 | 3,389,545.83 | 2,465,571.65 | -1,477,380.47 |
Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses | -692,274.89 | 2,890,182.46 | 2,379,318.61 | -1,505,474.28 |
Net cash flow arising from operating activities | 459,865.86 | 890,530.08 | 1,866,001.79 | 725,831.23 |
Item | 2020 | 2019 | 2018 | Note |
Gains/losses from the disposal of non-current asset (including the write-off that accrued for impairment of assets) | 24,936.44 | -85,730.05 | ||
Switch-back of provision of impairment of account receivable and contractual assets which are treated with separate depreciation test | 219,118.00 | |||
Other non-operating income and expenditure except for the aforementioned items | 754,370.46 | 194,691.02 | 261,141.96 |
Less: Impact on income tax | 0.18 | 48,672.76 | 98,632.48 | |
Impact on minority shareholders’ equity (post-tax) | 65,223.94 | -37,575.93 | 49,951.88 | |
Total | 714,082.78 | 183,594.19 | 245,945.55 | -- |
Section III. Summary of Company BusinessI. Main businesses of the company in the reporting periodThe Company shall comply with the disclosure requirement of “Guidelines on Industry Information Disclosure of Shenzhen StockExchange No. 11- Listed Company Engaged in Jewelry-related Business”
During the reporting period, the company’s main businesses were bicycles and lithium battery materials business, and jewelry goldbusiness. (1) Bicycles and lithium battery materials business included the production, assembly, procurement, and sales of bicyclesand electric bicycles, and purchase, sales, and commissioned processing of lithium battery materials, etc.; (2) The gold jewelrybusiness mainly provided supply chain management and services in the vertical field of gold jewelry. The company connected withdownstream gold jewelry brands, purchased gold and diamonds according to their product needs, and then commissioned goldjewelry processing plants for processing, made product certification for the processed finished products after passing the inspection,and delivered them to downstream customers. Through the integration of upstream supplier resources and downstream customerresources, the turnover rate of gold jewelry products in the upstream and downstream was improved, the cost of circulation links wasreduced, and the overall competitive advantage of the upstream and downstream was formed.
Since the company’s jewelry-related operating revenue in 2020 accounted for more than 30% of the company’s audited revenue forthe most recent fiscal year, the company must comply with the disclosure requirements of "Shenzhen Stock Exchange IndustryInformation Disclosure Guidelines No. 11 - Listed Companies Engaged in Jewelry Related Business", the specific disclosurerequirements are as follows:
1. The company's main business models during the reporting period
1.1 Procurement model
The upstream raw material suppliers of the company’s gold jewelry supply chain business were mainly diamonds and gold, of whichthe diamond suppliers were mainly source producers or wholesalers from India or Hong Kong, and domestic mature diamondwholesalers (generally members of the Shanghai Diamond Exchange) ), gold was mainly purchased from the Shanghai GoldExchange through the company's membership qualifications at Shanghai Gold Exchange. The company has established professionalprocurement department and team to be responsible for the procurement of diamond products and jewellery. The specificprocurement models varied according to customer needs.
1.2. Production model
By integrating upstream commissioned processing plants, the company outsourced the production of products ordered by customersto professional jewelry manufacturers to give full play to their professional and scale effect. In view of the current situation andcharacteristics of domestic jewelry processing enterprises, the company established a set of effective supplier managementmechanisms and evaluation standards to achieve a benign interaction between the production system of outsourced manufacturersand the company's business development.
1.3 Sales model
According to the annual order planning and regular procurement requirements of brand retailers, the company provided B-end
customers with various forms of supply chain management services such as spot procurement, order production, and customizeddevelopment, so as to minimize product inventory and improve the supply chain effectiveness for customers.Spot procurement: Organized the goods through the integration of upstream factories and exhibition halls and suppliers' productstyles and spot resources, and provided corresponding product structure according to the customer's brand characteristics andterminal market needs;
Order production: Customers placed orders to the company according to their own needs, and the company purchased raw materialsand subcontracted processing to form finished products and sell them to customers;Customized development: According to the characteristics of their own brands and future development needs, customers entrustedthe company to develop and design the product styles, and produce finished products to sell to customers.
2. The development trend and competitive landscape of the industry in which the company is locatedRegarding the gold and jewelry industry, in the context of our country's sustained and rapid economic growth and rising per capitalincome, the consumption of jewelry not only meets the demand for value preservation, but also is the need for people to pursuefashion and show their individuality. At present, our country is one of the world's largest, most important, and fastest-growingjewelry markets. The consumption of many jewelry categories is in the front rank of the world, among them, the sales of gold, silver,platinum, jade, pearls and other products rank first in the world. Our country's jewellery gold industry market has formed a tripartitepattern of domestic, Hong Kong and foreign brands, and the market share continues to concentrate. At present, our country's percapital jewelry consumption is still far below that of developed countries, and our country's jewelry gold consumption market stillhas a lot of room for improvement, but the market is highly competitive. In August 2019, the company invested in the establishmentof a holding subsidiary Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd., and began to get involved in the jewelry gold supplychain business.
2.1. Industry development trend
(1) The market scale is increasing year by year, and consumers in third- and fourth-tier cities have become a potential force injewelry consumptionThe market scale of our country's jewelry industry has been increasing year by year, and the industry growth rate has shown afluctuation trend. From 2014 to 2019, the market size of our country's jewelry industry increased from 567.4 billion yuan to 750.3billion yuan. Since 2017, the growth rate of our country's jewelry industry has also increased year by year. In 2019, the growth rate ofthe jewelry industry reached 8%. According to Frost&Sullivan data, the growth rate of the jewelry market in third-tier and lower-tiercities from 2010 to 2015 reached up to 45.3%, far exceeding the level of 31.9% in first-tier cities. According to DeBeers data, in2016, our country's total diamond consumption/total ratio in second-tier cities accounted for 37%/30%; the total diamondconsumption/total ratio in third-tier cities accounted for 37%/43%, both exceeding the level of first-tier cities. In the future, third- andfourth-tier cities will have a vast market space and show huge growth potential, and the third- and fourth-tier cities will become themain market for the growth of jewelry companies in the future. The layout of the third- and fourth-tier jewelry terminal channels hasbecome an important strategic choice for jewelry companies to broaden their performance territory, expand their brand influence, andenhance their company strength.
(2) The gold and jewellery industry is in a mature stage, and there is still much room for improvement in domestic per capitaconsumptionObserving from the growth rate of the industry scale, the global and domestic gold and jewelry industries are already in a period ofobvious maturity. According to Euromonitor data, the global gold and jewelry industry scale in 2019 was US$352.5 billion/+0.6%,with a 5-year CAGR of 2.5%; during the same period, the domestic gold jewelry industry was US$109.7 billion, with a 5-year
CAGR of 4.7% (Affected by the epidemic in 2020, the scale of the industry has declined significantly, here is the calculation selectedfrom 2014-2019). The scale of the global and domestic gold and jewelry industry is still growing, but the growth center has moveddown significantly, and the industry is already in an obviously maturity period.
Mainland China has become the world’s largest regional market for jewelry consumption, according to Euromonitor data, the scale ofjewelry consumption in Mainland China reached US$109.7 billion in 2019, making it the world’s largest regional market, with theUnited States and India respectively accounting for US$73.1 billion/69.1 billion U.S. dollars came next. However, from theperspective of per capital jewelry consumption, the level in mainland China is still significantly lower. In 2019, the per capita jewelryconsumption in mainland China was 73.4 US dollars, while the top three Hong Kong, China, the United States, and Canada were
785.9/222.6/163.6 US dollars respectively. The per capital consumption in Hong Kong, China reflects the ceiling that Chinese peoplewho love jewelry can reach when their income is relatively high. If this is used as a time comparison, there is still a lot of room forimprovement in per capital jewelry consumption in mainland China. From 2011 to 2019, the per capital consumption of jewellery inmainland China increased from US$44 to US$73.4, with a CAGR of 6.6% (Affected by the epidemic in 2020, per capitalconsumption has declined significantly, here is the calculation selected from 2014-2019). With the increase in the level of livingincome and the penetration of jewelry consumption concepts, there is still ample room for the future growth of the jewelry consumermarket in mainland China.
(3) Consumers learn about jewelry brands and products online, forming online and offline linkagesThe Internet era has provided a more convenient and more extensive way of sharing information, which has guided consumers' needsand choices. Jewelry brand companies provide customers with consumer strategies through major new media sharing platforms athome and abroad, such as Xiaohongshu, Instagram, Tik Tok, etc., so as to create consumer demand and realize consumer guidance.Realizing the effective combination of online and offline through information technology makes it easier for consumers tounderstand product information, share product experience, and have easy and convenient shopping. According to Taobao livebroadcast data, in 2018, jewellery ranked first in the industry with the highest turnover driven by live broadcasts. The development ofsharing platforms and e-commerce platforms has changed the consumption habits of consumers, especially the younger generation.Consumers can more easily understand product features and share user experience online, which has become an important trend inproduct promotion and future sales.
(4) Brand and design capabilities will become the new growth engine of the jewelry industryAs millennials gradually become an important force in the consumer market, changing consumer concepts are quietly affecting thetrend of the jewelry market, and the consumer preferences of the new generation of consumer subjects are leading the market trend.Compared with traditional consumers, emerging consumer groups pay more attention to the design, craftsmanship, style and brandvalue of jewellery products, hoping to meet their needs to show their taste and personality. The daily consumption demand of suchconsumers for self-wearing and decoration and self-rewarding has increased. The demand for jewelry is not limited to major festivalsor wedding celebrations, the younger generation prefers to use jewelry for self-rewarding, expressing love, or designing instead ofwhether it is full gold or not, consumer behavior tends to be more routine, which effectively increases the repurchase rate of jewelryproducts. By focusing on improving the decorative value of products, satisfying consumers' needs for aesthetic and individualexpression, and seeking higher brand premiums and design premiums, branding and design are expected to bring new growthmomentum to the jewelry industry.
(5) Supply chain management will become an important operating method for jewelry companiesFrom the perspective of the supply chain of the jewelry industry, it mainly involves raw material mining, processing and smelting,rough processing, jewelry making, warehousing, distribution and sales. In recent years, the division of labor in the jewelry industryhas deepened and market competition has become increasingly fierce. The premiums for design and development, marketingnetworks and after-sales services have continued to increase, and more and more profits have been concentrated in the terminal.
Many companies optimize their supply chain by outsourcing production links with low gross profit margin and large investment, soas to achieve the purpose of shortening the cash turnover time and improving the overall profitability. Supply chain management hasbecome an important means for jewellery companies to improve their operational capabilities.
2.2. The company's competitive advantages in the jewelry and gold business
(1) High-quality upstream supplier system
At present, the company has established relatively stable cooperative relationships with major domestic and foreign diamondsuppliers and processors, and has advantages in raw material procurement costs, order production cycles and product quality control,and can continuously reduce supply chain costs and operational efficiency.
(2) Diversified downstream market channels and customer resources
The company is currently actively expanding its gold jewellery customers. In addition to clear order customers, it is currentlynegotiating business cooperation with a number of domestic jewellery brands. The above-mentioned customers include three types ofcustomers, of which type A customers are well-known brand customers in the country, with more than 500 retail stores, type Bcustomers are small and medium/regional/segmented brands, with 300-500 retail stores; type C customers are small and mediumbrands, with 50-100 retail stores.
(3) Improve the industrial chain of production design
The company has a one-stop industrial chain docking module of design, production, processing, testing, and wholesale. Brandowners can rely on our jewelry processing resource advantages and hand over lower value-added links such as manufacturing anddistribution to the company, thus focus on the brand operation and sales section with higher added value. The outsourcing ofproduction and design can improve the homogeneity of gold jewelry products.
(4) Closed-loop business process and risk control system
The company has formulated strict business internal control processes such as supplier access standards, customer evaluation systems,full-process order tracking systems, and purchase price comparison systems, achieved the three-flow closed-loop control of capitalflow and information flow and logistics through the integrated service platform of the supply chain system and the integratedsolutions to funds management, and realized multi-level risk control.
In the bicycle and lithium battery materials industry, as a traditional manufacturing industry, the bicycle industry continues thedilemma of rising labor costs, manufacturing costs, capital costs, and material costs. The implementation of the new nationalstandards for safety technical specifications of electric bicycle in April 2019 accelerated the reshuffle of the industry and formed anew round of industry shocks. In addition, on the basis of the violent shock of shared bicycles with capital advantages on the bicycleindustry and upstream supply chain operations in the past few years, the aftershocks continue to impact the recovery of the industrydue to the lack of profit model and capital chain problems. At the same time, the bicycle industry as a traditional manufacturing fieldhas also ushered in an important opportunity to accelerate transformation and upgrading under the guidance of the "Made in China2025" strategy of strengthening the country under the guidance of the basic policy of "innovation-driven, quality-first, greendevelopment, structural optimization, and talent-oriented", ushered in the development opportunities for the implementation of thenew national standards for electric bicycles, and faced important opportunities and challenges of e-commerce development onchannel impact, channel integration and Internet+. Our country is the world's largest country in the production and sales of electricbicycles. After years of development, electric bicycles have gradually become an important means of transportation for consumers'daily short-distance trips. At present, there are about 200 million vehicles in the whole society. Structural body, motor, power battery,and control system, as the core components of electric bicycles, Shenzhen China Bicycle has closely followed up and studied theirtechnological development, application development and commercial value for a long time, and determined the list of qualifiedsuppliers for core components year by year. As one of the core components of electric bicycle, lead-acid batteries have been mainlyused as the power batteries in the past ten or twenty years. With the development and popularization of new energy technologies andnew energy materials, it is expected that they will be replaced by lithium batteries on a large scale in the future. The implementation
of the new national standards for safety technical specifications of electric bicycle has comprehensively improved the safetyperformance of electric bicycles, adjusted and improved technical indicators such as speed limit, vehicle quality, and pedaling ability.The new standards that are close to the people's livelihood and serve the people's livelihood have increased the application space oflithium battery energy storage, and lithium battery electric bicycles will usher in a new stage of development.II. Major changes in main assets
1. Major changes in main assets
Major assets | Note of major changes |
Intangible assets | Amortization ends for intangible assets in the Period |
Monetary fund | The cooperation deposit and advance rent received from the Zhonghua Garden (Phase II) |
Account receivable | Trade receivables increased from jewelry and gold business |
In addition, the Company is trying to carry out the issuance of non-public shares, hoping to improve the operating strength anddevelopment momentum. On May 15, 2020, the company held the first extraordinary general meeting of shareholders in 2020, whichreviewed and approved the company's termination of the 2016 non-public issuance of shares and at the same time launched the planfor the 2020 non-public issuance of A shares, intending to raise funds of no more than 450 million yuan from 5 specific investorsthrough non-public issuance of stocks, and all the raised funds would be used to supplement working capital after deducting theissuance costs. After the CSRC accepted and the company's intermediary agency responded to a feedback from the CSRC, at the endof November 2020, in view of the changes in relevant regulatory policies and the capital market environment, and comprehensivelyconsidering the actual situation and other factors and fully communicating and prudently demonstrating with relevant parties, thecompany decided to terminate the non-public offering and applied to the China Securities Regulatory Commission to withdraw therelevant application materials. On December 24, 2020, the China Securities Regulatory Commission decided to terminate the reviewof the administrative license application. On December 30, 2020, the company held the third extraordinary general meeting ofshareholders in 2020, and reviewed and approved the new plan for non-public issuance of A shares, intending to raise funds fromWansheng Industrial Company through non-public issuance of shares not exceeding 293.6 million yuan, which would be used tosupplement working capital after deducting issuance costs, this issuance would lead to changes in the company's right of control.After the Securities Regulatory Commission accepted and sent a feedback notice, the company and the intermediary agencies havecompleted the response work on April 21, 2021, and follow-up related work is in progress.
Section IV. Discussion and Analysis of the Business
I. IntroductionIn 2020, the sudden epidemic brought serious threats to the lives and health of people in all countries, and caused severe impacts onthe world economy. The social economy faced serious difficulties, the company's operations were blocked, and the upstream anddownstream supply and sales links were blocked, the company’s operations faced special risks. In response to the epidemic, underthe leadership of the party and government, the people of the whole country have taken effective prevention and control measuresbased on their own conditions and achieved positive results. While doing a good job in the prevention and control of the epidemic,the government, enterprises, and employees have made concerted efforts to restore economic and social development and enterpriseproduction and operation. The government has taken multiple measures to stabilize people's livelihood and enterprises andemployment, and the company increased revenue and cut expenditures to ensure business and stability and survival and development.The government's assistance measures for enterprises include extending holidays, returning social security to stabilize employment,issuing post-stabilization subsidies, exempting enterprise pension insurance, issuing anti-epidemic subsidies, providing loandiscounts and liquidity support, etc. The company's measures include extending holidays, strengthening disinfection and epidemicprevention, home office, flexible office and other measures, doing everything possible to maintain upstream and downstreambusiness, adopting capital vitalization, optimizing and adjusting business premises, and reducing expenses to ensure corporate cashflow, creating conditions to ensure the health of employees, the stability of the team, the stability of the society and the guarantee ofemployment, and contributing the enterprise’s strength for success of the epidemic prevention and control. With the joint efforts ofthe government, enterprises, and employees, the company’s operating business began to gradually recover at the end of the firstquarter, and the business recovery and development in the second, third and fourth quarters were generally smooth. The annualrevenue from jewelry gold business was 87.06 million yuan (accounting for about 74% of total operating revenue), and the businessrevenue from bicycle lithium battery materials was 30.8 million yuan (accounting for about 26% of total operating revenue). Afterendogenous development, the jewelry gold business has become the company's core main business in 2020. In 2020, the companywas recognized as a high-tech enterprise (certificate number GR202044200651). According to the "Enterprise Income Tax Law ofthe People's Republic of China" and the relevant provisions of the country's preferential tax policies for high-tech enterprises, thecompany has enjoyed the relevant preferential tax policies for high-tech enterprises for three consecutive years (from 2020 to 2022)after being identified as a high-tech enterprise, namely pay corporate income tax at a tax rate of 15%. The company will continue toconscientiously do a good job in epidemic prevention and control and the development of enterprise production and operation.
In 2020, combine actual condition of financially insecure after reorganization, on the one hand, we adhere to traditional businessmodel development, in combination with the new national standard of safety technical specifications for electric bicycle, theCompany carry out R&D works on the products. Optimize and adjust the product structure and sales mode transformation, activelyexpand the e-commerce business model in accordance with the e-commerce transformation of business team and controllable cost ofinternal & external connections, so as to realize the stable development of e-commerce for retail business; at the same time, based onthe long-term process of the electric bicycle business, the follow-up research of related industrial projects and technologyapplications in the upstream and downstream of the industrial chain have been carried out accordingly, and on the basis of extensivebusiness contacts and businesses in previous years, it continued to expand the lithium battery material business to enrich the mainbusiness. On the one hand, continued to promote the development of the jewelry gold supply chain business and expand the businessdimension. In August 2019, the company and Shenzhen Zuankinson Jewelry and Gold Supply Chain Co., Ltd. jointly invested 6.5million yuan to establish Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd., the company holding 65% of the shares as thecontrolling shareholder of Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd., while Zuankinson Jewelry holding 35% of the
shares. According to the actual situation of business development, in February 2020, the two parties decided to increase the capital ofShenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd. to 20 million yuan in the same proportion, and the relevant registered capitalhave been in place in June 2020. In order to meet the future operation and development needs of Shenzhen Xinsen Jewelry GoldSupply Chain Co., Ltd., and enhance its financial strength, comprehensive competitiveness and anti-risk ability, the company signeda capital increase contract with the joint venture Shenzhen Zuankinson Jewelry and Gold Supply Chain Co., Ltd. in August 2020, andonce again increased capital to Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd. in the same proportion, and the registeredcapital was increased from 20 million yuan to 200 million yuan, of which the company increased capital of 117 million yuan, whichwould be successively invested in accordance with its own funds and the availability of funds raised from the non-public issuance ofA shares; Zuankinson Jewelry newly increased capital of 63 million yuan, totaling 180 million yuan. On August 21, 2020, thecompany's 2020 second extraordinary general meeting of shareholders reviewed and approved the above capital increase. On the onehand, we strived to promote the selection of the company's restructuring party and plan for the non-public issuance of stocks, hopingto improve the company's business strength and development potential.
In terms of planning for the non-public offering of shares, on 15 May 2020, the Company held the First Extraordinary ShareholdersGeneral Meeting of 2020 to considered and approved the termination of non-public offering of shares in 2016 and simultaneouslaunch the proposal for the non-public offering of A-share in 2020. that is raising funds by way of non-public offering of shares tofive specific investors with fund not exceed 450 million yuan, which will be fully used to replenish the working capital afterdeducting the offering expenses. At the end of November 2020, after the CSRC accepted and intermediaries responded to the FirstFeedback of CSRC, the Company decided to terminate the non-public offering and applied to the CSRC to withdraw relevantapplication materials in view of the changes in relevant regulatory policies and capital market environment, taking into account theactual situation and other factors, and after sufficient communication and prudent argumentation with relevant parties. On 24December 2020, the CSRC decided to terminate the review of the administrative license application. On 30 December 2020, theCompany held the Third Extraordinary Shareholders General Meeting of 2020 to considered and approved the new non-publicoffering. The total amount of funds to be raised from Wansheng Industrial Company through non-public offering of shares shall notexceed 293.6 million yuan, which will be used to supplement the working capital after deducting offering expenses. The offering ofshares this time will lead to a change in control right of the Company. After the CSRC accepted and sent a First Feedback Notice, theCompany and intermediary institutions have completed the response works on 21 April 2021 and follow-up related works are inprogress.
In 2020, in order to promote the Phase II renovation of Zhonghua Garden and solve the historical legacy of licensing issues, thecompany and Shenzhen Jianzhi Industrial Co., Ltd. signed the "Urban renewal project of Zhonghua Garden (Phase II) CooperationContract". The contract has been reviewed and approved by the company's board meeting and the general meeting of shareholdersand announced to take effect, and our company and Shenzhen Jianzhi Industrial Co., Ltd. Have established a working team to jointlypromote contract performance and related affairs.
Through various efforts to carry out, in 2020, the Company achieved an operation revenue of 117.8575 million yuan, net profit of
4.3757million yuan, and the net profit attributable to shareholder of listed company was3.7858million yuan.
Item | Period-end or current period | Period-begin or last period | Y-o-y changes (+,-) | Note of major changes |
Operation revenue | 117,857,480.17 | 76,022,687.75 | 55.03% | Revenue from jewelry and gold business increased in the Period |
Operation cost | 103,221,623.73 | 68,681,471.12 | 50.29% | Costs from jewelry and gold business increased in the Period |
Loss of credit impairment (Loss is listed with “-”) | -603,180.13 | -2,533,065.87 | -76.19% | Impairment of account receivable for the period declined compared with the previous period |
Net profit | 4,375,706.59 | -7,813,881.65 | 156.00% | Revenue growth in the Period and gross profit increased, the expenses declined |
Net profit attributable to shareholder of parent company | 3,785,834.68 | -7,186,905.64 | 152.68% | Revenue growth in the Period and gross profit increased, the expenses declined |
Net cash flow arising from operation activities | 3,942,228.96 | -13,791,941.34 | 128.58% | The deposit and advance rent received from the Zhonghua Garden (Phase II) |
Net cash flow arising from investment activities | 46,381.18 | -897,577.01 | 105.17% | Acquisition of fixed assets in the previous period |
Net cash flow arising from financing activities | 9,825,000.00 | 4,275,000.00 | 129.82% | Received minority’s investment from the capital increment of Xinsen Company |
Monetary fund | 19,887,978.05 | 6,074,367.91 | 227.41% | The deposit and advance rent received from the Zhonghua Garden (Phase II) |
Account receivable | 55,031,424.70 | 38,616,523.93 | 42.51% | Receivables from customers for jewelry and gold business increased in the Period |
Intangible assets | 0.00 | 753,000.00 | -100.00% | Amortization ends for intangible assets in the Period |
Contract liability | 15,254,713.38 | 1,739,953.80 | 776.73% | Contract liability increased due to the deposit and advance rent received from Zhonghua Garden (Phase II) (Opening balance is reclassified from account received in advance at end of the last period) |
Wages payable | 1,459,244.07 | 599,962.73 | 143.22% | Wages payable increased in the Period |
Total owners attributable to parent company | 10,905,230.98 | 7,119,396.30 | 53.18% | Turing a loss into a profit in the Period |
Minority’s interest | 14,737,058.70 | 4,322,186.79 | 240.96% | 35% of the shareholding from minority’s due to the capital increment from subsidiary |
As of end of the Period, balance of inventory from jewelry business amounted to 59,538,533,100 yuan, a 49.77% up compared withthat of period-begin, types of the inventory includes:
In RMB
Item | Types | Amount | Proportion |
Finished goods | Jewelry | 443,189.84 | 7.44% |
Gold jewelry | — | — | |
Other | — | — | |
Total | 443,189.84 | 7.44% |
Raw materials | Gold | — | — |
Platinum | — | — | |
Diamond | 1,298,565.61 | 21.81% | |
Total | 1,298,565.61 | 21.81% | |
Wrappage | 54,454.64 | 0.91% | |
Goods in process | 4,157,643.22 | 69.83% |
Total | 5,953,853.31 | 100.00% |
2020 | 2019 | Y-o-y changes (+,-) | |||
Amount | Ratio in operation revenue | Amount | Ratio in operation revenue | ||
Total operation revenue | 117,857,480.17 | 100% | 76,022,687.75 | 100% | 55.03% |
According to industries | |||||
Sales of bicycles and spare parts | 16,435,436.09 | 13.95% | 46,942,798.66 | 61.75% | -64.99% |
Lithium battery material | 13,405,034.83 | 11.37% | 24,460,850.63 | 32.18% | -45.20% |
Jewelry and gold | 87,064,073.74 | 73.87% | 4,619,038.46 | 6.07% | 1,784.90% |
Other | 952,935.51 | 0.81% | |||
According to products | |||||
Sales of bicycles and spare parts | 16,435,436.09 | 13.95% | 46,942,798.66 | 61.75% | -64.99% |
Lithium battery material | 13,405,034.83 | 11.37% | 24,460,850.63 | 32.18% | -45.20% |
Jewelry and gold | 87,064,073.74 | 73.87% | 4,619,038.46 | 6.07% | 1,784.90% |
Other | 952,935.51 | 0.81% | |||
According to region | |||||
Domestic | 117,857,480.17 | 100.00% | 76,022,687.75 | 100.00% | 55.03% |
Operation revenue | Operation cost | Gross profit ratio | Increase/decrease of operation revenue y-o-y | Increase/decrease of operation cost y-o-y | Increase/decrease of gross profit ratio y-o-y | |
According to industries | ||||||
Sales of bicycles and spare parts | 16,435,436.09 | 8,199,519.90 | 50.11% | -64.99% | -80.29% | 38.72% |
Lithium battery material | 13,405,034.83 | 13,191,331.01 | 1.59% | -45.20% | -42.22% | -5.08% |
Jewelry and gold | 87,064,073.74 | 80,940,595.81 | 7.03% | 1,784.90% | 1,802.21% | -0.85% |
Other | 952,935.51 | 890,177.01 | 6.59% | |||
According to products | ||||||
Sales of bicycles and spare parts | 16,435,436.09 | 8,199,519.90 | 50.11% | -64.99% | -80.29% | 38.72% |
Lithium battery material | 13,405,034.83 | 13,191,331.01 | 1.59% | -45.20% | -42.22% | -5.08% |
Jewelry and gold | 87,064,073.74 | 80,940,595.81 | 7.03% | 1,784.90% | 1,802.21% | -0.85% |
Other | 952,935.51 | 890,177.01 | 6.59% | |||
According to region | ||||||
Domestic | 117,857,480.17 | 103,221,623.73 | 12.42% | 55.03% | 50.29% | 2.76% |
latest one year’s scope of period-end
□ Applicable √ Not applicable
(3) Income from physical sales larger than income from labors
√ Yes □ No
Industries | Item | Unit | 2020 | 2019 | Y-o-y changes (+,-) |
Bicycle, electric bicycle | Sales volume | In 10 thousand | 12.79 | 7.44 | 71.91% |
Output | In 10 thousand | 12.63 | 7.4 | 70.68% | |
Inventory | In 10 thousand | 0.02 | 0.18 | -88.89% | |
Lithium battery material | Sales volume | Ton | 468 | 385 | 21.56% |
Purchasing volume | Ton | 468 | 385 | 21.56% | |
Jewelry and gold | Sales volume | Piece | 43,673 | 2,317 | 1,784.89% |
Inventory | Piece | 3,019 | 2,015 | 49.83% | |
Purchasing volume | Piece | 44,986 | 4,332 | 938.46% |
Industries | Item | 2020 | 2019 | Y-o-y changes (+,-) | ||
Amount | Ratio in operation cost | Amount | Ratio in operation cost | |||
Sales of bicycles and spare parts | Sales of bicycles and spare parts | 8,199,519.90 | 7.94% | 41,597,621.68 | 60.57% | -80.29% |
Lithium battery material | Lithium battery material | 13,191,331.01 | 12.78% | 22,828,770.32 | 33.24% | -42.22% |
Jewelry and gold | Jewelry and gold | 80,940,595.81 | 78.41% | 4,255,079.12 | 6.20% | 1,802.21% |
Other | IT goods | 890,177.01 | 0.86% |
Total top five clients in sales (RMB) | 74,211,999.25 |
Proportion in total annual sales volume for top five clients | 62.97% |
Ratio of related parties in annual total sales among the top five clients | 0.00% |
Serial | Name | Sales (RMB) | Proportion in total annual sales |
1 | Client 1 | 27,726,702.18 | 23.53% |
2 | Client 2 | 12,616,798.91 | 10.71% |
3 | Client 3 | 12,298,840.20 | 10.44% |
4 | Client 4 | 10,921,810.37 | 9.27% |
5 | Client 5 | 10,647,847.59 | 9.03% |
Total | -- | 74,211,999.25 | 62.97% |
Total purchase amount from top five suppliers (RMB) | 32,778,924.84 |
Proportion in total annual purchase amount for top five suppliers | 31.76% |
Ratio of related parties in annual total sales among the top five suppliers | 0.00% |
Information of top five suppliers of the Company
Serial | Name | Purchase (RMB) | Proportion in total annual purchase |
1 | Supplier 1 | 15,950,412.03 | 15.45% |
2 | Supplier 2 | 4,849,290.26 | 4.70% |
3 | Supplier 3 | 4,848,881.44 | 4.70% |
4 | Supplier 4 | 3,934,273.84 | 3.81% |
5 | Supplier 5 | 3,196,067.27 | 3.10% |
Total | -- | 32,778,924.84 | 31.76% |
2020 | 2019 | Y-o-y changes (+,-) | Note of major changes | |
Sales expenses | 2,540,657.03 | 3,178,476.39 | -20.07% | |
Administrative expenses | 4,783,608.32 | 6,409,465.59 | -25.37% | |
Financial expenses | 18,718.74 | -95,401.17 | -119.62% | The financial expenses arising from sales discount |
R&D expenses | 2,506,877.57 | 2,753,277.72 | -8.95% |
2020 | 2019 | Change ratio (+,-) | |
Number of R&D (people) | 24 | 15 | 60% |
Ratio of number of R&D | 36.92% | 25.42% | 11.50% |
R&D investment (Yuan) | 2,506,877.57 | 2,753,277.72 | -8.95% |
R&D investment accounted for R&D income | 2.13% | 3.62% | -1.49% |
R&D investment capitalization (Yuan) | 0.00 | 0.00 |
Capitalization R&D investment accounted for R&D investment | 0.00% | 0.00% |
Item | 2020 | 2019 | Y-o-y changes (+,-) |
Subtotal of cash in-flow arising from operation activity | 121,626,558.28 | 42,717,223.29 | 184.72% |
Subtotal of cash out-flow arising from operation activity | 117,684,329.32 | 56,509,164.63 | 108.26% |
Net cash flow arising from operating activities | 3,942,228.96 | -13,791,941.34 | -128.58% |
Subtotal of cash in-flow arising from investment activity | 64,500.00 | ||
Subtotal of cash out-flow arising from investment activity | 18,118.82 | 897,577.01 | -97.98% |
Net cash flow arising from investment activities | 46,381.18 | -897,577.01 | -105.17% |
Subtotal of cash in-flow arising from financing activity | 9,825,000.00 | 4,275,000.00 | 129.82% |
Net cash flow arising from financing activities | 9,825,000.00 | 4,275,000.00 | 129.82% |
Net increased amount of cash and cash equivalent | 13,813,610.14 | -10,414,518.35 | -232.64% |
Reasons of major difference between the cash flow of operation activity in report period and net profit of the Company
□Applicable √Not applicable
III. Analysis of the non-main business
√ Applicable □ Not applicable
In RMB
Amount | Ratio in total profit | Note | Whether be sustainable (Y/N) | |
Assets impairment | 198,181.03 | 4.16% | Impairment provision | N |
Non-operation revenue | 6,542,649.75 | 137.28% | Revenue of the assets management ready for proposed in reorganization case | N |
Non-operation expenditure | 5,688,279.29 | 119.35% | Expenditure of the assets management ready for proposed in reorganization case | N |
Credit impairment | 603,180.13 | 12.66% | Impairment provision | N |
Year-end of 2020 | Year-begin of 2020 | Ratio changes (+,-) | Note of major changes | |||
Amount | Ratio in total assets | Amount | Ratio in total assets | |||
Monetary fund | 19,887,978.05 | 21.68% | 6,074,367.91 | 9.68% | 12.00% | The cooperation deposit and advance rent received from the Zhonghua Garden (Phase II) |
Account receivable | 55,031,424.70 | 59.98% | 38,616,523.93 | 61.56% | -1.58% | |
Inventory | 7,729,325.94 | 8.42% | 6,078,330.30 | 9.69% | -1.27% | |
Fix assets | 3,792,133.36 | 4.13% | 4,191,503.33 | 6.68% | -2.55% |
2. Assets and liability measured by fair value
□ Applicable √ Not applicable
3. Limited assets rights till end of the period
1.At the end of the current period, the total fixed output value included six suites of house properties at 7-20F Lianxin JiaYuan,Luohu District, Shenzhen purchased in 2016, with original value of 2,959,824.00 Yuan, which were affordable housing purchasedfrom the Housing and Construction Bureau of Luohu District to provide to enterprise talents for living. The contract stipulated thatthe purchasing enterprise is not allowed to conduct any form of property rights transaction with any units or individual other than thegovernment.
V. Investment
1. Overall situation
√ Applicable □ Not applicable
Investment in reporting period (RMB) | Investment in the same period of last year (RMB) | Change scope |
17,125,000.00 | 4,225,000.00 | 305.33% |
Name of invested company | Main business | Investment style | Investment amount | Shareholding ratio | Capital sources | Partners | Time horizon | Product type | Progress as at balance sheet date | Anticipated income | Profit/loss of current investment | Litigation issues involved (Y/N) | Date of disclosure (if any) | Disclosure index (if any) |
Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd | Supply chain business of jewelry and gold | Capital increment | 8,775,000.00 | 65.00% | Owned fund | Shenzhen Zuankinson Jewelry and Gold Supply Chain Co., | 20-year | Supply chain service of jewelry and gold | Capital increment completed | 122,456.84 | 122,456.84 | N | 2020-02-19 | Juchao website (http://www.cninfo.com.cn) , Notice No.: 2020-002, 2020-0 |
Ltd. | 03 | |||||||||||||
Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd | Supply chain business of jewelry and gold | capital increment | 117,000,000.00 | 65.00% | Owned fund and funds raising from non-public offering of A-share | Shenzhen Zuankinson Jewelry and Gold Supply Chain Co., Ltd. | 20-year | Supply chain service of jewelry and gold | In progress | 1,632,757.86 | 1,632,757.86 | N | 2020-08-06 | Juchao website (http://www.cninfo.com.cn) , Notice No.: 2020-032, 2020-034 |
Shenzhen Emmelle Cloud Technology Co., Ltd. | Engaged in the technology development and service business in field of computer | Newly established | 1,400,000.00 | 49.00% | Owned fund | Shenzhen Zhenbangda Technology Co., Ltd. | 20-year | Software development and services | Established and fully paid up | 5,696.99 | 5,696.99 | N | N/A | N/A |
Total | -- | -- | 127,175,000.00 | -- | -- | -- | -- | -- | -- | 1,760,911.69 | 1,760,911.69 | -- | -- | -- |
(2) Derivative investment
□ Applicable √ Not applicable
The Company has no derivatives investment in the Period
5. Application of raised proceeds
□ Applicable √ Not applicable
The company had no application of raised proceeds in the reporting period.VI. Sales of major assets and equity
1. Sales of major assets
□ Applicable √ Not applicable
The Company had no sales of major assets in the reporting period.
2. Sales of major equity
□ Applicable √ Not applicable
VII. Analysis of main holding company and stock-jointly companies
√Applicable □ Not applicable
Particular about main subsidiaries and stock-jointly companies net profit over 10%
In RMB
Company name | Type | Main business | Register capital | Total assets | Net assets | Operation revenue | Operating profit | Net profit |
Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd | Subsidiary | Supply chain business of jewelry and gold | 200,000,000 | 44,248,401.31 | 34,415,871.93 | 87,064,073.74 | 2,806,059.26 | 2,700,330.30 |
Shenzhen Emmelle Industrial Co., Ltd. | Subsidiary | Distribution of bicycles and spare parts | 5,000,000 | 14,820,153.68 | 5,310,246.69 | 3,160,952.74 | -1,237,317.14 | -1,203,910.71 |
Company name | The way of getting and treating subsidiary in the reporting | Influence on overall product and performance |
Shenzhen Emmelle Cloud Technology Co., | Investment in new establishment | Net profit attributable to parent company |
Ltd. | has 56.9699 million yuan increased in the period with minimal impact |
consumption of many jewellery categories ranks in the forefront of the world, among which the sales of gold, silver, platinum, jade,pearls and other products rank first in the world. China’s jewelry gold industry market has formed a three-legged pattern of domestic,Hong Kong and foreign brands, and the market shares continue to be concentrated. At present, China’s per capital jewelryconsumption is still far lower than that of developed countries, and our jewelry gold consumption market still has a lot of room forimprovement, but the market competition is fierce. In August 2019, the company invested in the establishment of a holdingsubsidiary, Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd., and began to get involved in the supply chain business of jewelryand gold.
ii. Future development opportunity and new yearly business plan of the Company:
With the fierce market competition, new development opportunities are also formed. At the end of 2013, the Company completed theimplementation of its restructuring plan and concluded its bankruptcy procedure, thereby improving the legal environment itsbusiness faces with. On the basis of business work over the past few years, the business plan of the Company for 2021 is:
1. Continue to actively cooperate with shareholders and the board of directors to promote the reorganization of the company andpromote the planning of non-public offering of shares.
2. Reform and improve the internal management mechanism, decompose and implement the company's annual task to everysubsidiaries, each distribution company and regional manager, take the manager responsibility system, follow p month by month, androll the assessment.
3. In terms of gold and jewelry business, further establish supplier systems and expand customer resources, improve internal businessprocesses and internal control system construction, promote the construction of a supply chain system platform to improveoperational quality and efficiency, and strive to achieve greater growth in operating income.
4. In terms of electric bicycles, for key mature areas such as Shandong, Henan, Hebei, Jiangsu, etc., organize supply of goods, controlquality, coordinate transportation and improve after sales order by order, and ensure stable order business; for other areas, activelystrengthen communication and cooperation with ODM factories to give full play to ODM factories' regional advantages, use itsexisting sales network for distribution cooperation, expand the brand influence and distribution cooperation basis of the EMMELLEbrand in the distribution team of other cooperative manufacturers, so as to promote the growth of orders.
5. In terms of the lithium battery materials and cloud technology business, in 2021, we will increase the business development force,forge talent teams, enrich product lines, develop new customers, promote the new technology applications and increase investment innew product development. Strive to achieve the rebound of lithium materials business, and strive for the development of cloudtechnology business with revenue increased over the previous year.
6. Continue to promote the cooperation matters of the urban renewal project of Zhonghua Garden (Phase II), facilitate the resolutionof the certification issue of Zhonghua Garden (Phase II) left over from history, and realize the phased work returns at the same time.
7. Strengthen the background management and office automation, and improve the support degree of background departments tofront desk business.
iii. Risk factors adverse to the Company’s development:
(1)The tough international economic situation: The domestic economy is at the structural adjustment stage in the course ofdevelopment, structural problems and deep-seated conflicts are highlighted. The economic downturn pressure continues to increase,many unstable and uncertain factors exist, which affect and impact the traditional manufacturing industries and the socialconsumption structure demand. Since the domestic economy is at the structural adjustment stage, coupled with a difficult situation ofcontinuously rising labor cost, manufacturing cost, financing cost and material cost the bicycle industry as a conventionalmanufacturing field recorded a decline in the market turnover. Due to the low entry threshold and numerous manufacturers, thecompetition in the market is extremely fierce.
(2) Affected by the impact of COVID-19, the social economy entered a special dilemma, operation of the Company has been blocked,
upstream and downstream supply and sales links have been blocked.
In the fave of the above problems, the central government and governments at all levels have taken multiple measures to stabilize thepeople’s livelihood, stabilize the enterprises and employment, the Company will strive to maintain stability and seek developmentthrough increase the income and reduce the expenditures. In 2020, combined with the actual situation on its own poor backgroundafter reorganization, on the one hand, we continued to adhere to traditional business model development, in combination with thenew national standard of safety technical specifications for electric bicycle, the Company carry out R&D works on the products.Optimize and adjust the product structure and sales mode transformation, actively expand the e-commerce business model inaccordance with the e-commerce transformation of business team and controllable cost of internal & external connections, so as torealize the stable development of e-commerce for retail business; At the same time, based on the long-term process of the electricbicycle business, the follow-up research of related industrial projects and technology applications in the upstream and downstream ofthe industrial chain have been carried out accordingly, and on the basis of extensive business contacts and businesses in previousyears, it continued to expand the lithium battery material business to enrich the main business. On the one hand, continued topromote the development of the jewelry gold supply chain business and expand the business dimension. In August 2019, thecompany and Shenzhen Zuankinson Jewelry and Gold Supply Chain Co., Ltd. jointly invested 6.5 million yuan to establish ShenzhenXinsen Jewelry Gold Supply Chain Co., Ltd., the company holding 65% of the shares as the controlling shareholder of ShenzhenXinsen Jewelry Gold Supply Chain Co., Ltd., while Zuankinson Jewelry holding 35% of the shares. According to the actual situationof business development, in February 2020, the two parties decided to increase the capital of Shenzhen Xinsen Jewelry Gold SupplyChain Co., Ltd. to 20 million yuan in the same proportion, and the relevant registered capital has been in place in June 2020. In orderto meet the future operation and development needs of Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd., and enhance itsfinancial strength, comprehensive competitiveness and anti-risk ability, the company signed a capital increase contract with the jointventure Shenzhen Zuankinson Jewelry and Gold Supply Chain Co., Ltd. in August 2020, and once again increased capital toShenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd. in the same proportion, and the registered capital was increased from 20million yuan to 200 million yuan, of which the company increased capital of 117 million yuan, which would be successively investedin accordance with its own funds and the availability of funds raised from the non-public issuance of A shares; Zuankinson Jewelrynewly increased capital of 63 million yuan, totaling 180 million yuan. On August 21, 2020, the company's 2020 second extraordinarygeneral meeting of shareholders reviewed and approved the above capital increase. On the one hand, we strived to promote theselection of the company's restructuring party and plan for the non-public issuance of stocks, hoping to improve the company'sbusiness strength and development potential.
In terms of planning for the non-public offering of shares, on 15 May 2020, the Company held the First Extraordinary ShareholdersGeneral Meeting of 2020 to considered and approved the termination of non-public offering of shares in 2016 and simultaneouslaunch the proposal for the non-public offering of A-share in 2020. that is raising funds by way of non-public offering of shares tofive specific investors with fund not exceed 450 million yuan, which will be fully used to replenish the working capital afterdeducting the offering expenses. At the end of November 2020, after the CSRC accepted and intermediaries responded to the FirstFeedback of CSRC, the Company decided to terminate the non-public offering and applied to the CSRC to withdraw relevantapplication materials in view of the changes in relevant regulatory policies and capital market environment, taking into account theactual situation and other factors, and after sufficient communication and prudent argumentation with relevant parties. On 24December 2020, the CSRC decided to terminate the review of the administrative license application. On 30 December 2020, theCompany held the Third Extraordinary Shareholders General Meeting of 2020 to considered and approved the new non-publicoffering. The total amount of funds to be raised from Wansheng Industrial Company through non-public offering of shares shall notexceed 293.6 million yuan, which will be used to supplement the working capital after deducting offering expenses. The offering ofshares this time will lead to a change in control right of the Company. After the CSRC accepted and sent a First Feedback Notice, theCompany and intermediary institutions have completed the response works on 21 April 2021 and follow-up related works are in
progress.
In 2020, in order to promote the Phase II renovation of Zhonghua Garden and solve the historical legacy of licensing issues, thecompany and Shenzhen Jianzhi Industrial Co., Ltd. signed the "Urban renewal project of Zhonghua Garden (Phase II) CooperationContract". The contract has been reviewed and approved by the company's board meeting and the general meeting of shareholdersand announced to take effect, and our company and Shenzhen Jianzhi Industrial Co., Ltd. Have established a working team to jointlypromote contract performance and related affairs.X. Reception of research, communication and interview
1. In the report period, reception of research, communication and interview
√ Applicable □ Not applicable
Time | Reception location | Way | Reception type | Object | Main content and information provided | Basic situation index of investigation | |
Jan.-Mar. 2020 | The Company | Telephone communication | Individual | Individual investor | Consulting company restructuring problem | N/A | |
April- June 2020 | The Company | Telephone communication | Individual | Individual investor | Inquiry progress of the private placement | N/A | |
July - September 2020 | The Company | Telephone communication | Individual | Individual investor | Inquiry the progress of urban renewal project of Zhonghua Garden (Phase II) | N/A | |
October - December 2020 | The Company | Telephone communication | Individual | Individual investor | Inquiry progress of the private placement | N/A | |
Reception (times) | 15 | ||||||
Number of hospitality | 0 | ||||||
Number of individual reception | 15 | ||||||
Number of other reception | 0 | ||||||
Disclosed, released or let out major undisclosed information | N |
Section V. Important EventsI. Profit distribution plan of common stock and capitalizing of common reserves plan
Formulation, Implementation and Adjustment of common stock Profit Distribution Policy Especially Cash Dividend policy duringthe Reporting Period
□ Applicable √ Not applicable
Profit distribution plan (pre-plan) of common stock and capitalizing of common reserves plan (pre-plan) in latest three years(including the reporting period)
Cash dividend of common stock in latest three years (including the reporting period)
In RMB
Year for bonus shares | Amount for cash bonus (tax included) | Net profit attributable to common stock shareholders of listed company in consolidation statement for bonus year | Ratio of the cash bonus in net profit attributable to common stock shareholders of listed company contained in consolidation statement | Proportion for cash bonus by other ways(i.e. share buy-backs) | Ratio of the cash bonus by other ways in net profit attributable to common stock shareholders of listed company contained in consolidation statement | Total cash bonus (including other ways) | Ratio of the total cash bonus (other ways included) in net profit attributable to common stock shareholders of listed company contained in consolidation statement |
2020 | 0.00 | 3,984,636.40 | 0.00% | 0.00 | 0.00% | 0.00 | 0.00% |
2019 | 0.00 | -7,186,905.64 | 0.00% | 0.00 | 0.00% | 0.00 | 0.00% |
2018 | 0.00 | -1,591,968.91 | 0.00% | 0.00 | 0.00% | 0.00 | 0.00% |
III. Implementation of commitment
1. Commitments completed in Period and those without completed till end of the Period from actualcontroller, shareholders, related parties, purchaser and companies
□ Applicable √ Not applicable
The Company has no commitments completed in Period and those without completed till end of the Period from actual controller,shareholders, related parties, purchaser and companies
2. Concerning assets or project of the Company, which has profit forecast, and reporting period still inforecasting period, explain reasons of reaching the original profit forecast
□ Applicable √ Not applicable
IV. Non-operational fund occupation from controlling shareholders and its related party
□ Applicable √ Not applicable
No non-operational fund occupation from controlling shareholders and its related party in period.
V. Explanation from Board of Directors, Supervisory Committee and Independent Directors(if applicable) for “Qualified Opinion” that issued by CPA
√ Applicable □ Not applicable
On 11 May 2012, the largest shareholder and biggest creditor of the Company, Shenzhen Guosheng Energy Investment andDevelopment Co., Ltd. applied to Shenzhen Municipal Intermediate People's Court for reforming the Company as the Companycouldn’t pay off the matured debts and was seriously insolvent. On 12
th
, Oct., 2012, Shenzhen Municipal Intermediate People's Courtruled to accept the application proposed by Guosheng Energy according to (2012) Shenzhen Intermediate Court Po Zi No. 30 civilruling. In late October, 2012, Shenzhen Municipal Intermediate People's Court ruled to reform the Company since 25
th, Oct., 2012according to (2012) Shenzhen Intermediate Court Po Zi No. 30-1 civil ruling, appointed King & Wood (Shenzhen) Mallesons andShenzhen ZhengYuan Liquidation Affairs Co., Ltd. as the custodians of the Company. At the same time, Shenzhen MunicipalIntermediate People's Court made (2012) Shenzhen Intermediate Court Po Zi No. 30-1 written decision, and approved the Companyto manage property and business affairs by itself under the supervision of custodians according to the law. On 5 November 2013, theShenzhen Intermediate People’s Court (2012) Shen Zhong Fa Po Zi No. 30-6 Civil Ruling Paper judged that approved thereorganization plan of the Company. On 27 December 2013, the Civil Ruling Paper Shenzhen Intermediate People’s Court (2012)Shen Zhong Fa Po Zi No. 30-10 ruled that the reorganization plan of CBC was completed and bankruptcy procedures of CBC closeddown.
The Company has solved the debt problem by reforming, realized the net assets with positive value, the main business of bicycle isable to be maintained and realizes the stable development. The Company has set up the conditions for introducing the recombinationparty in the reforming plan, and expects to restore the abilities of sustainable operation and sustained profitability by reorganization.The conditions of introducing the recombination party includes: the assessed value of net assets should be no less than 2 billion Yuan,the net assets in the same year for implementing the major reorganization should be no less than 200 million Yuan. The Companydoesn’t have the recombination party at the moment. The Company will continue to carry out vary related works actively andpromote the reorganization work with all efforts.
VI. Particulars about the changes in aspect of accounting policy, estimates and calculationmethod compared with the financial report of last year
√ Applicable □ Not applicable
1.Change of accounting policy
(1) The Company implemented the relevant regulations of Accounting Standards for Business Enterprises No. 14 - Revenue (CaiKuai [2017] No.22) (hereinafter referred to as New Revenue Standard) since 1 January 2020. After implementation of the newrevenue standard, the Company will not have an impact on the business model, contract terms, revenue recognition and other aspects.Impact from the implementation of the regulations on financial statement of the Company for year of 2020 is as follows:
Content and reasons for accounting policy changes | Item and amount impacted |
”Account received in advance” presented as “Contract liability” | In consolidate balance sheet dated 31 December 2020, the account received in advance is shown in the amount of 0.00 yuan, the contract liability on 31 December 2020 is shown as 15254713.38 yuan. In balance sheet of parent company dated 31 December 2020, the account received in advance is shown in the amount of 0.00 yuan, the contract liability on 31 December 2020 is shown as 14385423.04 yuan. |
Name of domestic accounting firm | Baker Tilly China Certified Public Accountants (LLP) |
Remuneration for domestic accounting firm (in 10 thousand Yuan) | 45 |
Continuous life of auditing service for domestic accounting firm | 5 |
Name of domestic CPA | Chen Zhigang, Zhang Lei |
Continuous life of auditing service for domestic accounting firm | 4 |
XVI. Major related transaction
1. Related transaction with routine operation concerned
□ Applicable √ Not applicable
The Company had no related transaction with routine operation concerned occurred in the period
2. Related transactions by assets acquisition and sold
□ Applicable √ Not applicable
No related transactions by assets acquisition and sold for the Company in reporting period.
3. Main related transactions of mutual investment outside
□ Applicable √ Not applicable
No main related transactions of mutual investment outside for the Company in reporting period.
4. Contact of related credit and debt
√ Applicable □ Not applicable
Whether exist non-operating contact of related credit and debt or not
√Yes □No
Claim receivable from related party
Related party | Relationship | Causes of formation | Whether has non-business capital occupying or not | Balance at period-begin(10 thousand Yuan) | Current newly added(10 thousand Yuan) | Current recovery(10 thousand Yuan) | Interest rate | Current interest(10 thousand Yuan) | Balance at period-end(10 thousand Yuan) |
Related party | Relationship | Causes of formation | Balance at period-begin(10 thousand Yuan) | Current newly added(10 thousand Yuan) | Current recovery (10 thousand Yuan) | Interest rate | Current interest(10 thousand Yuan) | Balance at period-end(10 thousand Yuan) |
Shenzhen Guosheng Energy Investment Development Co., Ltd. | Large shareholder | Subsidiary Emmelle loan | 650 | 0 | 0 | 0.00% | 0 | 650 |
Influence on operation result and financial statue of the Company from related debts | No influence |
4. Significant contracts for daily operations
□ Applicable √ Not applicable
5. Other significant contracts
√Applicable □ Not applicable
The name of the contracting company | The name of the contracted company | Contract object | The date of signature of the contract | The book value of the assets involved in the contract(RMB’0000)(if any) | The assessed value of the assets involved in the contract(RMB’0000)(if any) | Name of the evaluation organization(if any) | The base date evaluation (if any) | Pricing principles | Bargain price(RMB’0000) | Whether connected transaction (Y/N) | Incidence relation | The performance by the end of the term | The date of disclosure | The index of disclosure |
Shenzhen China Bicycle Company (Holdings) Limited | Shenzhen Jianzhi Industrial Development Co., Ltd. | Urban renewal project of Zhonghua Garden (Phase II) | 2020-04-26 | 0 | 0 | N/A | N/A | Negotiated price | 3,000 | N | No affiliation | Terminated | 2020-04-28 | ”Notice on Entered into the Cooperation Agreement for Urban Renewal Project” Notice No.: 2020013 |
Shenzhen China Bicycle Company (Holdings) | Shenzhen Jianzhi Industrial Development Co., | Urban renewal project of Zhonghua Garden (Phase | 2020-08-04 | 0 | 0 | N/A | N/A | Negotiated price | 3,000 | N | No affiliation | Approved and effective at the AGM of the Company | 2020-08-05 | ”Notice on Progress of the Cooperation Agreement for |
Limited | Ltd. | II) | dated 21 August 2020, relevant works are in progress | Urban Renewal Project” Notice No.: 2020033 |
Target | Measurement units | Numbers/progress |
I. general condition | —— | —— |
II. Implemented by detail | —— | —— |
1. Industrial development poverty | —— | —— |
2.Transfer employment | —— | —— |
3. Anti-poverty by relocating in other places | —— | —— |
4. Education poverty | —— | —— |
5. Health poverty alleviation | —— | —— |
6. Ecological conservation | —— | —— |
7. Fallback protection | —— | —— |
8. Social poverty alleviation | —— | —— |
9. Other | —— | —— |
III. Awards (content and level) | —— | —— |
financial strength, comprehensive competitiveness and anti-risk capabilities. In August 2020, the company and the joint venturepartner, Shenzhen Zuankinson Jewelry and Gold Supply Chain Co., Ltd. decided to jointly increase the capital of Shenzhen XinsenJewelry Gold Supply Chain Co., Ltd. in the same proportion, increasing the registered capital from 20 million yuan to 200 millionyuan, of which, the company newly increased capital of 117 million yuan, which was successively invested in accordance with itsown funds and the availability of funds raised from the non-public issuance of A shares; Zuankinson Jewelry newly increased capitalof 63 million yuan, a total of 180 million yuan. The twenty-third (temporary) meeting of the tenth board of directors held by thecompany on August 5, 2020 and the second extraordinary general meeting of shareholders of 2020 held by the company on August21, 2020 reviewed and approved the "Proposal on the Second Capital Increment in Controlling Subsidiaries". Found more in theNotice released by the Board.
3. Cooperation matters in urban renewal projects
On April 26, 2020, the company held the twentieth meeting of the tenth board of directors and reviewed and approved the "Proposalon Signing the Cooperation Agreement for Zhonghua Garden Phase II Urban Renewal Project". According to the agreement, giventhat: 1. Jianzhi Industry failed to pay the company a security deposit of 2 million yuan on the date of signing the agreement. 2.Jianzhi Industry failed to pay the company 10 million yuan within 30 days after the signing of the agreement. On August 4, 2020, thecompany revised the original "Cooperation Agreement for Zhonghua Garden Phase II Urban Renewal Project" with Jianzhi Industrythrough friendly negotiations, and re-signed the "Cooperation Contract for Zhonghua Garden Phase II Urban Renewal Project". Onthe day of the signing of the contract, the company received 10 million yuan from Jianzhi Industry for the contract payment. Thecompany held the twenty-third (temporary) meeting of the tenth board of directors on August 5, 2020 and the 2020 secondextraordinary general meeting of shareholders held on August 21, 2020, reviewed and approved the "Proposal on Revising andSigning the Cooperation Contract for Zhonghua Garden Phase II Urban Renewal Project". Found more in the Notice released by theBoard.
XX. Significant event of subsidiary of the Company
√Applicable □Not applicable
1. In August 2019, the Company and Shenzhen Zuankinson Jewelry and Gold Supply Chain Co., Ltd jointly established a ShenzhenXinsen Jewelry Gold Supply Chain Co., ltd. of which, the Company holds 65% equity and it is the controlling shareholder ofShenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd, while 35% equity held by Shenzhen Zuankinson Jewelry and Gold SupplyChain Co., Ltd.
According to the actual situation of business development, in February 2020, the two parties decided to increase the capital ofShenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd. to 20 million yuan in the same proportion. On February 19, 2020, thecompany held the eighteenth (temporary) meeting of the tenth board of directors, reviewed and approved the "Proposal on CapitalIncrease in Holding Subsidiaries". After the completion of capital increased, the shareholding ratio of all parties remains unchanged,and the company remains the controlling shareholder of Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd. As of June 30, 2020,the registered capital of Xinsen Company has been paid in place, and various businesses have been carried out normally.
In order to meet the future business development needs of Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd., it will enhance itsfinancial strength, comprehensive competitiveness and anti-risk capabilities. In August 2020, the company and the joint venturepartner, Shenzhen Zuankinson Jewelry and Gold Supply Chain Co., Ltd. decided to jointly increase the capital of Shenzhen XinsenJewelry Gold Supply Chain Co., Ltd. in the same proportion, increasing the registered capital from 20 million yuan to 200 million
yuan, of which, the company newly increased capital of 117 million yuan, which was successively invested in accordance with itsown funds and the availability of funds raised from the non-public issuance of A shares; Zuankinson Jewelry newly increased capitalof 63 million yuan, a total of 180 million yuan. The twenty-third (temporary) meeting of the tenth board of directors held by thecompany on August 5, 2020 and the second extraordinary general meeting of shareholders of 2020 held by the company on August21, 2020 reviewed and approved the "Proposal on the Second Capital Increment in Controlling Subsidiaries". Found more in theannouncement released by the Board.
2.Capital increase to the controlling subsidiary Shenzhen Emmelle Industrial Co., Ltd
According to Chinese Accounting Standards and the audit report issued by Baker Tilly China Certified Public Accountants (LLP), asof December 31, 2019, Shenzhen Emmelle Industrial Co., Ltd had undistributed profits of 3,756,453.12 yuan. In accordance with therelevant provisions of the "Company Law" and the "Articles of Association", Shenzhen Emmelle Industry Co., Ltd. held the firstextraordinary general meeting of shareholders in 2020 on September 2, 2020, and reviewed and approved a profit distribution of 3million yuan to all shareholders, and used the distributed profits to increase the registered capital for the same proportion of capitalincrease. After the completion of capital increase, the registered capital of Shenzhen Emmelle Industrial Co., Ltd. increased from 2million yuan to 5 million yuan, of which Shenzhen China Bicycle (Holdings) Co., Ltd. invested 2.1 million yuan, and the trade unioncommittee of Shenzhen China Bicycle (Holdings) Co., Ltd. newly funded 900,000 yuan. At the same time, the meeting alsodeliberated and approved related matters such as changing the company's registered address, business scope, and amending thearticles of association. As of September 30, 2020, Shenzhen Emmelle Industrial Co., Ltd. has completed the industrial andcommercial change of this matter.
3. Matters concerning foreign investment and establishment of sub-subsidiary
According to the relevant provisions of the "Company Law" and the "Articles of Association", on July 13, 2020, the company'sholding subsidiary Shenzhen Emmelle Industrial Co., Ltd (hereinafter referred to as "Emmelle Industrial") held a board meeting,which reviewed and approved the "Proposal on the Establishment of a Holding Subsidiary for Foreign Investment", EmmelleIndustry and Shenzhen Zhenbangda Technology Co., Ltd. (hereinafter referred to as "Zhenbangda Technology") jointly funded theestablishment of Shenzhen Emmelle Cloud Technology Co., Ltd. with a registered capital of 2 million yuan, of which EmmelleIndustry contributed 1.4 million yuan and Zhenbangda Technology contributed 600,000 yuan. After the completion of the industrialand commercial registration, Emmelle Industry holds 70% of the shares of Shenzhen Emmelle Cloud Technology Co., Ltd. andbecomes the controlling shareholder of Shenzhen Emmelle Cloud Technology Co., Ltd. As of September 30, 2020, ShenzhenEmmelle Cloud Technology Co., Ltd. has completed the industrial and commercial registration of this matter.
Section VI. Changes in Shares and Particulars about ShareholdersI. Changes in Share Capital
1. Changes in Share Capital
In Share
Before the Change | Increase/Decrease in the Change (+, -) | After the Change | |||||||
Amount | Proportion | New shares issued | Bonus shares | Capitalization of public reserve | Others | Subtotal | Amount | Proportion | |
I. Restricted shares | 3,957 | 0.00% | 3,957 | 0.00% | |||||
1. State-owned shares | 0 | 0.00% | 0 | 0.00% | |||||
2. State-owned legal person’s shares | 0 | 0.00% | 0 | 0.00% | |||||
3. Other domestic shares | 3,957 | 0.00% | 3,957 | 0.00% | |||||
Including: Domestic legal person’s shares | 0 | 0.00% | 0 | 0.00% | |||||
Domestic natural person’s shares | 3,957 | 0.00% | 3,957 | 0.00% | |||||
4. Foreign shares | 0 | 0.00% | 0 | 0.00% | |||||
Including: Foreign legal person’s shares | 0 | 0.00% | 0 | 0.00% | |||||
Foreign natural person’s shares | 0 | 0.00% | 0 | 0.00% | |||||
II. Unrestricted shares | 551,343,990 | 100.00% | 551,343,990 | 100.00% | |||||
1. RMB Ordinary shares | 302,981,008 | 54.95% | 302,981,008 | 54.95% | |||||
2. Domestically listed foreign shares | 248,362,982 | 45.05% | 248,362,982 | 45.05% | |||||
3. Overseas listed foreign shares | 0 | 0.00% | 0 | 0.00% | |||||
4. Others | 0 | 0.00% | 0 | 0.00% | |||||
III. Total shares | 551,347,947 | 100.00% | 551,347,947 | 100.00% |
□ Applicable √ Not applicable
Approval of share changed
□ Applicable √ Not applicable
Ownership transfer of share changed
□ Applicable √ Not applicable
Progress of shares buy-back
□Applicable √Not applicable
Implementation progress of the reduction of repurchases shares by centralized bidding
□Applicable √Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to commonshareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose for the Company or need to disclosed under requirement from security regulators
□ Applicable √ Not applicable
2. Changes of restricted shares
□ Applicable √ Not applicable
II. Securities issuance and listing
1. Security offering (without preferred stock) in Reporting Period
□ Applicable √ Not applicable
2. Changes of total shares and shareholders structure as well as explanation on changes of assets andliability structure
□ Applicable √ Not applicable
3. Existing internal staff shares
□ Applicable √ Not applicable
III. Particulars about shareholder and actual controller of the Company
1. Amount of shareholders of the Company and particulars about shares holding
In Share
Total common stock shareholders in reporting period-end | 40,488 | Total common stock shareholders at end of last month before annual report disclosed | 38,871 | Total preference shareholders with voting rights recovered at end of reporting period (if applicable) (found in note 8) | 0 | Total preference shareholders with voting rights recovered at end of last month before annual report disclosed (if applicable) (found in note 8) | 0 | |||||||
Particulars about shares held above 5% by shareholders or top ten shareholders | ||||||||||||||
Full name of Shareholders | Nature of shareholder | Proportion of shares held | Total shareholders at the end of report period | Changes in report period | Amount of restricted shares held | Amount of un-restricted shares held | Number of share pledged/frozen | |||||||
State of share | Amount | |||||||||||||
Shenzhen Guosheng Energy Investment Development Co., Ltd. | Domestic non-state-owned legal person | 11.52% | 63,508,747 | 0 | 0 | 63,508,747 | ||||||||
UOB Koy Hian (Hong Kong) Co., Ltd. | Foreign legal person | 2.89% | 15,907,850 | 0 | 0 | 15,907,850 | ||||||||
Guosen Securities (Hong Kong) brokerage Co., Ltd. | Foreign legal person | 2.52% | 13,909,425 | 0 | 0 | 13,909,425 | ||||||||
Shenwan Hongyuan Securities (Hong Kong) Co., Ltd. | Foreign legal person | 1.51% | 8,303,272 | 1677156 | 0 | 8,303,272 | ||||||||
Lhasa Xingqing Network Technology Co., Ltd. | Domestic non-state-owned legal person | 1.10% | 6,090,255 | 6090255 | 0 | 6,090,255 |
Li Huili | Domestic nature person | 0.71% | 3,891,124 | 0 | 0 | 3,891,124 | ||
LI SHERYN ZHAN MING | Foreign natural person | 0.63% | 3,480,187 | 3480187 | 0 | 3,480,187 | ||
Xu Hongbo | Domestic nature person | 0.58% | 3,187,519 | 100 | 0 | 3,187,519 | ||
Ge Zhiqiong | Domestic nature person | 0.58% | 3,177,952 | 316400 | 0 | 3,177,952 | ||
CMS Hong Kong Co., Ltd | State-owned legal person | 0.56% | 3,070,676 | 111988 | 0 | 3,070,676 | ||
Strategy investors or general corporation comes top 10 common stock shareholders due to rights issue (if applicable) (see note 3) | N/A | |||||||
Explanation on associated relationship among the aforesaid shareholders | Li Huili, spouse of the Ji Hanfei, the actual controller of he Company- Shenzhen Guosheng Energy Investment Development Co., Ltd., holding B-share of the Company on behalf of Shenzhen Guosheng Energy Investment Development Co., Ltd., beyond that, the Company has no idea of whether other circulated shareholders belong to concerted action persons ruled in the Administration Norms for Information Disclosure of Change on Shareholding of Shareholders of Listed Companies. | |||||||
Description of the above shareholders in relation to delegate/entrusted voting rights and abstention from voting rights. | N/A | |||||||
Particular about top ten shareholders with un-restrict shares held | ||||||||
Shareholders’ name | Amount of un-restrict shares held at Period-end | Type of shares | ||||||
Type | Amount | |||||||
Shenzhen Guosheng Energy Investment Development Co., Ltd. | 63,508,747 | RMB common shares | 63,508,747 | |||||
UOB Koy Hian (Hong Kong) Co., Ltd. | 15,907,850 | Domestically listed foreign shares | 15,907,850 | |||||
Guosen Securities (Hong Kong) brokerage Co., Ltd. | 13,909,425 | Domestically listed foreign shares | 13,909,425 | |||||
Shenwan Hongyuan Securities (Hong Kong) Co., Ltd. | 8,303,272 | Domestically listed foreign shares | 8,303,272 | |||||
Lhasa Xingqing Network Technology | 6,090,255 | RMB common | 6,090,255 |
Co., Ltd. | shares | ||
Li Huili | 3,891,124 | Domestically listed foreign shares | 3,891,124 |
LI SHERYN ZHAN MING | 3,480,187 | Domestically listed foreign shares | 3,480,187 |
Xu Hongbo | 3,187,519 | Domestically listed foreign shares | 3,187,519 |
Ge Zhiqiong | 3,177,952 | RMB common shares | 691,300 |
Domestically listed foreign shares | 2,486,652 | ||
CMS Hong Kong Co., Ltd. | 3,070,676 | Domestically listed foreign shares | 3,070,676 |
Expiation on associated relationship or consistent actors within the top 10 un-restrict shareholders and between top 10 un-restrict shareholders and top 10 shareholders | Li Huili, spouse of the Ji Hanfei, the actual controller of he Company- Shenzhen Guosheng Energy Investment Development Co., Ltd., holding B-share of the Company on behalf of Shenzhen Guosheng Energy Investment Development Co., Ltd., beyond that, the Company has no idea of whether other circulated shareholders belong to concerted action persons ruled in the Administration Norms for Information Disclosure of Change on Shareholding of Shareholders of Listed Companies. | ||
Explanation on top 10 shareholders involving margin business (if applicable) (see note 4) | N/A |
shareholder and largest creditor of CBC, and CBC facing a serious debt crisis, Ji Hanfei initiative seeking an actual controller ofCBC, by actively participate the shareholders general meeting of CBC, showing major influence on CBC for achieving actuallycontrols of the Company in purpose of resolving the debt crisis.
On 11 May 2012, the largest shareholder and biggest creditor of the Company, Shenzhen Guosheng Energy Investment andDevelopment Co., Ltd. applied to Shenzhen Municipal Intermediate People's Court for reforming the Company as the Companycouldn’t pay off the matured debts and was seriously insolvent. On 12
th, Oct., 2012, Shenzhen Municipal Intermediate People's Courtruled to accept the application proposed by Guosheng Energy according to (2012) Shenzhen Intermediate Court Po Zi No. 30 civilruling. In second half year of 2013, on the basis of the investor interest adjustment scheme deliberated and approved by creditor’smeeting and investors’ conference, Shenzhen Intermediate People’s Court approved the reorganization plan for CBC, thereorganization plan of CBC completed on 27 December 2013 and close the bankruptcy proceedings of CBC. As a largest majorityshareholder and largest creditor of the Company, Guosheng Energy vote in favor on creditor’s meeting and investors’ conference, inrespect of the investor interest adjustment scheme, and provided 5.39 million Yuan to CBC for claims settlement and maintain theassets of main business of CBC. Debts of the CBC solved by reorganization, net assets of CBC turns to positive value, the mainbusiness of bicycle maintained and achieved a steady development.
Currently, CBC is planning a private placement for business promotion and transformation, optimize asset structure, further tostrengthen the Company and sustainable ability in development. Taking into account the debt problem of CBC has been resolved, theCompany needs supports from all over the shareholders, and based on the actual condition of development of Guosheng Energy andshare-holding ratio, Ji Hanfei and Guosheng Energy decided to change the actually controller state to general investment, that is JiHanfei and Guosheng Energy, will not participate in the operation management plan of CBC in future, and they have no plans toseeking an actual controlling rights of CBC in next 12 months either
The Shenzhen Guosheng Energy Investment Development will hold stock of the CBC and exercise shareholders’ rights as a commoninvestor.Changes of controlling shareholders in reporting period
□Applicable √Not applicable
Controlling shareholders of the Company has no changes in the period.
3. Actual controller and persons acting in concert of the Company
Nature of actual controller: No actual controllerType of actual controller: Non-existentThe company does not have the actual controller.(i) Facts and reasons for the company's determination of the actual controller's alterationOn February 20, 2017, Ji Hanfei and Guosheng Energy made an “Explanation” to abandon the actual control of the Company, after JiHanfei made the declaration to abandon the actual control of the Company, the actual controller of the Company changed from JiHanfei to no actual control, the specific facts and reasons are as follows:
1. The voting rights of Ji Hanfei to actually control the shares of the Company
According to the “Security Holder Roster” issued by China Securities Depository and Clearing Co., Ltd., Shenzhen Branch and thedocuments publicly disclosed by Shenzhen China Bicycle, up to December 31, 2016, Ji Hanfei held 63,508,747 shares of theCompany’s A-Shares through Guosheng Energy, and his spouse, Li Huili, held 3,891,124 shares of the Company’s B-Shares, so JiHanfei totally controlled 67,399,871 shares of the Company’s voting shares, accounting for 12.22% of the total number of shares of
the Company. Ji Hanfei actually controlled no more than 30.00% of the Company’s voting rights and had no control over theCompany's general meeting of shareholders.
2. Ji Hanfei’s control to the Company's board of directors
According to the Resolution Announcement of the 18
th
session of 8
thBoard of Directors and the Resolution Announcement of theFirst Extraordinary General Meeting of 2013 publicly disclosed by the Company and confirmed by the Company and GuoshengEnergy, the directors of the current board of directors of the Company should be nominated by the eighth session of board ofdirectors, Guosheng Energy did not nominate the current board of directors for the Company.
Therefore, Ji Hanfei has not restructured the board of directors of the Company by controlling the Company’s voting shares afterobtaining the control power of Guosheng Energy, and has not actually dominated over half of the members of the board of directorsof the Company.
According to the Resolution Announcement of the 24
th session of the 9
thBoard of Directors announced on April 27, 2017 by theCompany, the ninth session of board of directors of the Company reviewed and passed the following proposals concerning thecandidates for the tenth session of board of directors:
(1) Passed the Proposal on Nominating Candidates for Directors of the Tenth Session of Board of Directors, agreed the current boardof directors to nominate Mr. Li Hai, Mr. Yao Zhengwang, Mr. Cao Fang, Mr. Yang Fenbo, Mr. Sun Longlong and Mr. Zhong Hua asthe candidates for the directors of the tenth session of board of directors of the company and participate in the election of the generalshareholders’ meeting as the term of office of the director of the 9
thsession of board of directors of the company has expired.(2)
(2) Passed the Proposal on Nominating Candidates for Independent Directors of the Tenth Session of Board of Directors, agreed thecurrent board of directors to nominate Mr. Song Xishun, Mr. Zhang Zhigao and Ms. Yang Hao as the candidates for the independentdirectors of the tenth session of board of directors of the company as the term of office of the director of the 9
thsession of board ofdirectors of the company has expired, and submitted the proposal to the Shenzhen Stock Exchange for review, the candidates canonly participate in the election of the general shareholders’ meeting when there is no objection to the review.
According to the Company’s explanation and the announcement document of the 24
thsession of 9
thboard of directors of theCompany, the candidates for the tenth session of board of directors should be nominated by the ninth session of board of directors,the Company did not receive the nomination of candidates for the tenth session of board of directors from Guosheng Energy.
According to the explanation of the Company and Guosheng Energy and the review to the resume of the director candidatesannounced by the ninth session of board of directors of the Company, in addition to Yao Zhengwang, serving as a supervisor ofGuojun Energy, the above mentioned director candidates had no related relationships with Guosheng Energy and Ji Hanfei.
In conclusion, even the stockholders’ meeting of the Company considered and agreed the above-mentioned director candidate toserve as the directors of the tenth session of the board of directors of the Company, Ji Hanfei and Guosheng Energy had not actuallydominated over half of the members of the tenth session of board of directors of the Company.
3. Ji Hanfei’s significant influence on the general meeting of shareholders of the Company
On October 12, 2012, the Shenzhen Intermediate People's Court issued the “Civil Ruling” of “(2012) SZFPZ No. 30” to accept theapplication for the reorganization of the Company by Guosheng Energy. On December 27, 2013, Shenzhen Intermediate People'sCourt issued the “Civil Ruling” of “(2012) SZFPZ No. 30-10”, which ruled that the implementation of the Company’s reorganizationplan was completed and the Company’s bankruptcy proceedings ended. According to the explanation of Guosheng Energy and the
inspection of bankruptcy and restructuring documents, Guosheng Energy had actively participated in the meeting of creditors for theCompany’s bankruptcy and reorganization and had provided interest-free loan support to the Company during the bankruptcy andreorganization, which had a significant influence on the Company’s general meeting of shareholders.
On February 20, 2017, Ji Hanfei and Guosheng Energy issued the “Explanation”: “Since Ji Hanfei obtained the control power ofGuoji Energy on January 3, 2011, in view of the fact that it was the Company’s largest shareholder and largest creditor and theCompany faced serious debt crisis for a long time, Ji Hanfei actively sought the actual controller status of the Company and exerted asignificant influence on the Company by actively participating in the Company’s general meeting of shareholders so as to realize theactual control of the Company and then strive to promote and solve the Company's debt crisis properly."
Therefore, from January 3, 2011 to February 19, 2017, Ji Hanfei had a subjective purpose for actually controlling the Company.After Ji Hanfei made a clear declaration on Feb. 20, 2017 to abandon the actual control of the Company, Ji Hanfei did notsubjectively attempt to influence the general meeting of stockholders of the Company by seeking the actual control rights.Objectively, the Company’s voting rights dominated by Ji Hanfei did not exceed 30.00% and he did not nominate more than half ofthe directors of the Company’s board of directors, Ji Hanfei could not effectively control the Company’s general meeting ofshareholders and the board of directors.
According to the “Announcement on the Resolutions of the 24
th
session of 9
th
Board of Directors” announced by the Company onApril 27, 2017 and confirmed by the Company, Ji Hanfei and Guosheng Energy, Ji Hanfei and Guosheng Energy didn’t not nominateany candidate for the directors of the tenth session of board of directors to the Company after Ji Hanfei and Guosheng Energy madethe declaration to abandon the control power.
In view of the above, the Company considered that the proportion of the Company’s shares actually controlled by Ji Hanfei wasrelatively low, which was not sufficient to control the general meeting of shareholders or make a significant impact on the generalmeeting of shareholders, and he had promised to give up the right of control to the company, the Company has no actual controllersince February 20, 2017.
The sponsor institutions and law firms engaged by the company for the non-public offering of shares have checked this issue andmade clear opinions to support.Whether has the shareholder with over 10% stock held in ultimate controlling standards or not
√ Yes □ No
Legal personShare holding in ultimate control standardsChanges of actual controller in reporting period
□Applicable √ Not applicable
Actual controller of the Company has no changes in the periodProperty right and controlling relationship between the actual controller and the Company is as follow:
Actual controller controlling the Company by entrust or other assets management
□ Applicable √ Not applicable
4. Particulars about other legal person shareholders with over 10% shares held
√Applicable □ Not applicable
Shareholder | Legal person/person in charge of the unit | Date of foundation | Organization code | Main operation business |
Shenzhen Guosheng Energy Investment Development Co., Ltd. | Ji Hanfei | April 26, 2005 | 91440300774115792 | Industry development, domestic commerce, materials supply and sale (excluding specially run, controlled and sold merchandises) |
Section VII. Preferred Stock
□ Applicable √ Not applicable
The Company had no preferred stock in the Period.
Section VIII. Convertible Bonds
□ Applicable √ Not applicable
The Company had no convertible bonds in the Period.
Section IX. Particulars about Directors, Supervisors, Senior
Executives and Employees
I. Changes of shares held by directors, supervisors and senior executives
Name | Title | Working status | Sex | Age | Start dated of office term | End date of office term | Shares held at period-begin (Share) | Amount of shares increased in this period (Share) | Amount of shares decreased in this period (Share) | Other changes (share) | Shares held at period-end (Share) |
Li Hai | Director | Currently in office | M | 52 | August 26, 2010 | June 28, 2020 | 0 | 0 | 0 | 0 | 0 |
Li Hai | President | Currently in office | M | 52 | September 26, 2013 | June 28, 2020 | 0 | 0 | 0 | 0 | 0 |
Li Hai | Chairman | Currently in office | M | 52 | April 15, 2015 | June 28, 2020 | 0 | 0 | 0 | 0 | 0 |
Yao Zhengwang | Director | Currently in office | M | 46 | August 26, 2010 | June 28, 2020 | 0 | 0 | 0 | 0 | 0 |
Cao Fang | Director | Currently in office | M | 47 | August 26, 2010 | June 28, 2020 | 0 | 0 | 0 | 0 | 0 |
Yang Fenbo | Director | Currently in office | M | 64 | June 30, 2006 | June 28, 2020 | 0 | 0 | 0 | 0 | 0 |
Sun Longlong | Director | Currently in office | M | 48 | June 29, 2017 | June 28, 2020 | 0 | 0 | 0 | 0 | 0 |
Sun Longlong | Secretary of Board | Currently in office | M | 48 | May 17, 2012 | June 28, 2020 | 0 | 0 | 0 | 0 | 0 |
Sun Longlong | CFO | Currently in office | M | 48 | May 22, 2017 | June 28, 2020 | 0 | 0 | 0 | 0 | 0 |
Zhong Hua | Director | Currently in office | M | 57 | June 29, 2017 | June 28, 2020 | 0 | 0 | 0 | 0 | 0 |
Yang Lan | Independent director | Currently in office | F | 52 | June 29, 2017 | June 28, 2020 | 0 | 0 | 0 | 0 | 0 |
Song | Independent | Currently | M | 58 | June 29, | June 28, | 0 | 0 | 0 | 0 | 0 |
Xishun | director | in office | 2017 | 2020 | |||||||
Zhang Zhigao | Independent director | Currently in office | M | 56 | June 29, 2017 | June 28, 2020 | 0 | 0 | 0 | 0 | 0 |
Li Xiang | The convener of the board of supervisors | Currently in office | M | 47 | June 27, 2014 | February 12, 2021 | 0 | 0 | 0 | 0 | 0 |
Zheng Zhonghuan | Supervisor | Currently in office | M | 59 | June 27, 2011 | February 12, 2021 | 5,276 | 0 | 0 | 0 | 5,276 |
Li Jialin | Staff Supervisor | Currently in office | M | 60 | May 22, 2014 | February 12, 2021 | 0 | 0 | 0 | 0 | 0 |
Total | -- | -- | -- | -- | -- | -- | 5,276 | 0 | 0 | 0 | 5,276 |
planning team of Life Insurance Branch in Guangdong. And subsequently served in strategy and developmentcenter, Office of the Chairman, Supervision office; he serves as deputy GM of Shanghai Branch of Life Insurancesince March 2012 and person in charge of the sales management center in Funde Insurance Holding
Mr. Yang Fenbo, born in 1957, China senior economist with master degree of MBA and engineer, held the positionof minister of development department, concurrently minister of science and technology department, assistantgeneral manager, assistant to chairman, deputy chief engineer and chief engineer at Shenzhen Lionda Group; tookthe chairman and concurrently general manager of Guangdong Sunrise Holding Co., Ltd.; now, he is the chairmanof Shenzhen Liona Group Co., Ltd. and Shenzhen Qianhai Fu Rong Asset Management Co., Ltd.
Mr. Sun Longlong, born in 1973, graduated from Shanghai University of Finance and Economics in 1995 with abachelor degree, a bachelor of Economics. He successively worked as financial affairs in Shenzhen QiongjiaoIndustry Co., Ltd. and Shenzhen Solar Pipe Co., Ltd., he worked in the Company since May 1999, andsuccessively served as Deputy Manager of financial department, Manager, manager of comprehensivemanagement department, manager of enterprise management department, now he serves as Director, CFO andsecretary of the Board of the Company.
Mr. Zhonghua, born in 1964, undergraduate college, has an engineer title. He worked in the period sinceDecember 1991, and have successively held the posts of director of the quality management dept., director oftesting center, deputy GM and GM of the quality management dept., now he serves as director of the Company,director of OEM Management and Manager of Quality Control Department, and Chairman and General Managerof Shenzhen EMMELLE Industrial Co., Ltd.
Ms. Yang Lan, born in 1969, is a master’s degree holder, a certified tax accountant, a certified appraiser, acertified public accountant, and an auditor. She successively served as a member of Guiyang Audit Bureau, thehead of Zhuhai BDO China Shu Lun Pan Certified Public Accountants, the head of Shanghai Lixin ChangjiangCertified Public Accountants, Zhuhai Branch, the head of Guangdong Lixin Changjiang Certified PublicAccountants, and the senior manager of Pan-China Certified Public Accountants (LLP), Guangdong Branch;Investment Director of Guangzhou Securities Innovation Investment Company, deputy head of GuangdongPujinxinghua Tax Agent Co., Ltd., and the deputy head of Guangdong Lixin Changjiang Certified PublicAccountants. Since June 29, 2017, she has served as an independent director of the company.
Mr. Song Xishun, born in 1963, holds a master’s degree in Chinese from Xiamen University. He once served as ateacher of PLA University of Foreign Language, took office at Public Security Bureau of Xiamen City, XiamenCity Bureau of Culture, served as the deputy dean of Cultural Industry School of Xiamen University ofTechnology and an arbitrator of Xiamen City Personnel Dispute Arbitration Committee. He has been teaching atXiamen University of Technology since 2003, and currently serves as Independent director of the company, thedeputy dean (worked since January 2013, part-time) of Cultural Development Institute of Xiamen University ofTechnology, a lawyer (part-time) of Zhong Yin (Xiamen) Law Firm, an independent director (part-time) of DehuaHengyi Art Ceramics Co., Ltd and Ankee Food Co., Ltd., and the vice chairman (part-time) of Xiamen Language
Association.
Mr. Zhang Zhigao, born in 1965, is a bachelor of laws from Fudan University, a certified public accountant and acertified appraiser; he has been serving as a partner lawyer of Shanghai Xuan Lun Law Firm since 2007. He usedto be a technician of Shanghai Electrical Machinery Plant, a lecturer of Shanghai Lixin University of Commerce,and a partner lawyer of Shanghai Alshine Law Firm; served as a member of the twelfth
session of CPPCC ofXuhui District, Shanghai, an independent director of Shanghai Kai Kai Industrial Co., Ltd., an independentdirector of Shanghai Norcent Technology Development Co., Ltd., and an independent director of ShanghaiXingye Real Estate Co., Ltd.; he currently serves as a supervisor (part-time) of Shanghai Lingqing VentureCapital Investment Management Co., Ltd., a director (part-time) of Shanghai Chengxi Asset Management Co.,Ltd., and a director (part-time) of Zhongcheng Village Bank Co., Ltd. of Kuiwen District, Weifang City .
Mr. Li Xiang, born in 1974, holds a master’s degree. He once served as the secretary of the party committee, thedirector of the organization department of the party committee, and the manager of the human resourcesdepartment at Pacific Life Jiangxi Branch. Since March 2008, he has been serving as the deputy general managerof Shenzhen Guosheng Energy Investment Development Co., Ltd.
Mr. Zheng Zhonghuan, born in 1962, holds a bachelor’s degree and an engineer title. He once worked atShenzhen Light Textile Industry Company and Shenzhen Light Industry Company. Since October 1985, he hasbeen working at Shenzhen China Bicycle Company (Holdings) Limited, and once served as the deputy managerand manager of planning department, the manager of material department, and the manager of manufacturingdepartment; and he serves as a supervisor of the Company, Director of Lithium Battery and New MaterialsBusiness Department, and Director of holding subsidiary Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd.
Mr. Li Jialin, born in 1961, a master degree with a title of senior engineer. He successively served as seniorengineer of the Company in electrical & mechanical engineering division, GM assistant of Hunan GuangdianMotorcycle Company, manager of the Company in H&R Dept. now he serves as Staff representative supervisor,commissioner of comprehensive office of the Company and person in charge of the labor union.
Post-holding in shareholder’s unit
√Applicable □ Not applicable
Name | Name of shareholder’s unit | Position in shareholder’s unit n | Start dated of office term | End date of office term | Received remuneration from shareholder’s unit (Y/N) |
Yao Zhengwang | Shenzhen Guosheng Energy Investment Development Co., Ltd. | Supervisor | October 09, 2006 | y | |
Li Xiang | Shenzhen Guosheng Energy Investment Development Co., Ltd. | Deputy General | March 1, 2008 | Y |
Manager
Post-holding in other unit
√Applicable □ Not applicable
Name | Name of other units | Position in other unit | Start dated of office term | End date of office term | Received remuneration from other unit (Y/N) |
Yao Zhengwang | Leshan Commercial Bank Co., Ltd. | Supervisor | January 10, 2019 | January 9, 2022 | Y |
Cao Fang | Funde Insurance Holdings sales management center | Person in charge | June 1, 2016 | Y | |
Sun Longlong | Shenzhen Xinsen Jewelry and Gold Supply Chain Co., Ltd. | Chairman | August 23, 2019 | N | |
Zhong Hua | Shenzhen EMMELLE Cloud Technology Co., Ltd. | Chairman and General Manager | July 21, 2020 | N | |
Yang Fenbo | Shenzhen Laiyingda Group Co., Ltd. | Senior consultant | September 12, 2017 | Y | |
Yang Lan | Guangdong Lixin Jiazhou Accounting Firm | Vice director | April 1, 2001 | Y | |
Huadong Medicine Co., Ltd. | Independent Director | June 9, 2019 | June 5, 2022 | Y | |
Shenzhen Zhongtian Hardcover Co., Ltd. | Independent Director | November 1, 2019 | October 30, 2022 | Y | |
Song Xishun | Xiamen University of Technology | Vice professor | September 1, 2003 | Y | |
Zhong Yin (Xiamen) Law Firm | Part-time lawyer | September 1, 2003 | Y | ||
Ankee Food Co., Ltd | Independent director | December 30, 2020 | December 29, 2023 | Y | |
Zhang Zhigao | SHULUN & PARTNERS (SHANGHAI) | Partner lawyer | December 1, 2007 | Y | |
Zhonggeng Fund Management Co., Ltd. | Director | July 21, 2009 | N | ||
Shanghai Chengxi Asset Management Co., Ltd. | Director | May 10, 2010 | N | ||
Zhongcheng Villiage Bank Co., Ltd. of Kuiwen District, Weifang City | Director | December 31, 2013 | Y | ||
China Resources Micro | Independent director | April 24, 2019 | April 23, 2022 | Y |
Zheng Zhonghuan | Shenzhen Xinsen Jewelry and Gold Supply Chain Co., Ltd. | Director | August 23, 2019 | N |
Decision procedure of remuneration of directors, supervisors, senior management | According to relevant rules of the Article of Association, the general meeting of shareholders decides remuneration of directors and supervisors. The Board of Directors decides senior management’s. |
Confirmation basis of remuneration of directors, supervisors and senior management | The Company refers to the position rank and comprehensive industry level. And then general meeting of shareholders approves compensation standard and allowance of independent directors. According to the "Interim Measures to Annual Performance Assessment of Executives" and performance evaluation standards the Company issues annual performance salary. |
Actual payment of remuneration of directors, supervisors and senior management | The Company strictly paid remuneration of directors, supervisors and senior management accordingly with decision procedure and confirmation basis. Total payment for remuneration of directors, supervisors and supervisors amounted to 1.6004 million yuan from January to December in 2019. |
Name | Title | Sex | Age | Post-holding status | Total remuneration obtained from the Company (before taxes) | Whether remuneration obtained from related party of the Company |
Li Hai | Director | M | 52 | Currently in office | 64.55 | N |
Sun Longlong | Director | M | 48 | Currently in office | 26.08 | N |
Zhong Hua | Director | M | 57 | Currently in office | 19.84 | N |
Zheng Zhonghuan | Supervisor | M | 59 | Currently in office | 17.11 | N |
Li Jialin | Staff Supervisor | M | 60 | Currently in office | 18.18 | N |
Yang Lan | Independent | F | 52 | Currently in | 4.76 | N |
director | office | |||||
Song Xishun | Independent director | M | 58 | Currently in office | 4.76 | N |
Zhang Zhigao | Independent director | M | 56 | Currently in office | 4.76 | N |
Total | -- | -- | -- | -- | 160.04 | -- |
Employee in-post of the parent Company (people) | 44 |
Employee in-post of main Subsidiaries (people) | 21 |
The total number of current employees (people) | 65 |
The total number of current employees to receive pay (people) | 65 |
Retired employee’ s expenses borne by the parent Company and main Subsidiaries (people) | 0 |
Professional composition | |
Category of professional composition | Numbers of professional composition (people) |
Production personnel | 14 |
Sales personnel | 9 |
Technical personnel | 24 |
Financial personnel | 8 |
Administrative personnel | 10 |
Total | 65 |
Education background | |
Category of education background | Numbers (people) |
Undergraduate | 25 |
Junior college | 21 |
Below junior college | 19 |
Total | 65 |
3. Training programs
Formulated the remuneration policy according to the position title and comprehensive industry salary standards
4. Labor outsourcing
□ Applicable√ Not applicable
Section X. Corporate GovernanceI. Corporate governance of the Company
During the reporting period, the Company was strictly in accordance with the "Company Law", "Securities Law" as well as "ListingCorporation Management Standards" and other relevant laws, regulations and normative documents. We combined the actualsituation, constantly improved the corporate governance structure, and strive to build a modern enterprise system. Operation,assembling and holding of general meeting of shareholders, the Board of Directors and board of supervisors were strictly withrelevant rules of procedure. Thus we protected interests of the Company. The actual situation of corporate governance structure wasin accordance with the release of normative documents about the listing Corporation management rules from China SecuritiesRegulatory Commission.
Is there any difference between the actual condition of corporate governance and relevant regulations about corporate governance forlisted company from CSRC?
□Yes √ No
There are no differences between the actual condition of corporate governance and relevant regulations about corporate governancefor listed company from CSRC.II. Independent of the Company relative to controlling shareholders’ in aspect of businesses,personnel, assets, organization and finance
The Company separate business, personnel, assets, institute and finance with largest shareholder or other related parties, owesindependent and completed self-operation ability.
III. Horizontal competition
□ Applicable √ Not applicable
IV. In the report period, the Company held annual shareholders’ general meeting andextraordinary shareholders’ general meeting
1. Annual Shareholders’ General Meeting in the report period
Session of meeting | Type | Ratio of investor participation | Date | Date of disclosure | Index of disclosure |
First Extraordinary shareholders general meeting 2020 | Extraordinary shareholders general meeting | 12.55% | May 15, 2020 | May 15, 2020 | Notice of Resolution of First Extraordinary shareholders general meeting 2020 (No.: 2020021) |
Annual General Meeting 2019 | Annual General Meeting | 12.09% | June 30, 2020 | June 30, 2020 | Notice of Resolution of Annual General Meeting 2020 (No.: 2020028) |
Second Extraordinary shareholders general meeting 2020 | Extraordinary shareholders general meeting | 12.29% | August 21, 2020 | August 21, 2020 | Notice of Resolution of Second Extraordinary shareholders general meeting 2020 (No.: 2020038) |
Third Extraordinary shareholders general meeting 2020 | Extraordinary shareholders general meeting | 13.54% | December 30, 2020 | December 30, 2020 | Notice of Resolution of Third Extraordinary shareholders general meeting 2020 (No.: 2020059) |
The attending of independent directors to Board Meeting and general meeting | |||||||
Name of independent director | Times of Board meeting supposed to attend in the report period | Times of Board meeting Presence | Times of attending Board meeting by communication | Times of Board meeting entrusted presence | Times of Board meeting Absence | Absent the Board Meeting for the second time in a row (Y/N) | Times of attending shareholding meeting |
Yang Lan | 10 | 0 | 10 | 0 | 0 | N | 2 |
Song Xishun | 10 | 0 | 10 | 0 | 0 | N | 1 |
Zhang Zhigao | 10 | 0 | 10 | 0 | 0 | N | 1 |
□Yes √No
Independent directors have no objections for relevant events in reporting period.
3. Other explanation about responsibility performance of independent directors
The opinions from independent directors have been adopted
√ Yes □ No
Explanation on advice that accepted/not accepted from independent directorsNilVI. Duty performance of the special committees under the board during the reporting periodBoard of directors set up audit commission and remuneration and appraisal commission taking responsibility based on GovernanceRules of Listed Company, Article of Association as well as Procedure Rules of Board of Directors and other duties and rights variousdepartments endowed.
As for compiling and audit on annual financial report were checked and communicated by Audit commission in accordance withrules of Working Procedure of Annual Report of Audit Commission, and they submitted decision to board of directors for approval.
Remuneration and appraisal commission of the Company, in reporting period, according to the “Interim Measure on AssessmentReward of Annual Performance for Senior Executives”, carry out evaluation on the management team members for operation worksin 2020.VII. Works from Supervisory CommitteeThe Company has risks in reporting period that found in supervisory activity from supervisory committee
□ Yes √ No
Supervisory committee has no objection about supervision events in reporting period.
VIII. Examination and incentives of senior managementThe Company initially established the standard and incentive mechanism for open and transparent performance evaluation ondirectors, supervisors and management layer. The appointment of senior management staff was open and transparent, in accordancewith provisions of the law.IX. Internal Control
1. Details of major defects in IC appraisal report that found in reporting period
□Yes √ No
2. Appraisal Report of Internal Control
Disclosure date of full internal control evaluation report | April 27, 2021 | |
Disclosure index of full internal control evaluation report | Appraisal Report of Internal Control 2020 of CBC released on Juchao website | |
The ratio of the total assets of units included in the scope of evaluation accounting for the total assets on the company's consolidated financial statements | 100.00% | |
The ratio of the operating income of units included in the scope of evaluation accounting for the operating income on the company's consolidated financial statements | 100.00% | |
Defects Evaluation Standards | ||
Category | Financial Reports | Non-financial Reports |
Qualitative criteria | Material defect: (1) inefficiency of environment control; (2) inefficiency of internal supervision; (3) direct impact on major mistakes of investment decisions; (4) directly make the significant error in the financial statements; (5) violation of the laws, regulations, rules and other normative documents, resulting in investigation of the central government and regulatory agencies, and being sentenced to a fine or penalty, being restricted industry exit, canceling business license and being forced the closure of etc. Major defect: (1) indirect impact on major mistakes of investment decisions; (2) indirectly make the significant error in the financial statements; (3) Lack of important system; (4) violation of the laws, regulations, rules and other normative documents, resulting in investigation of the local government and regulatory agencies, and being sentenced to a fine or penalty, and being ordered to suspend business for rectification and cause the Company’s business stop of etc. General defect: other | Material defect: (1) inefficiency of environment control; (2) inefficiency of internal supervision; (3) direct impact on major mistakes of investment decisions; (4) directly make the significant error in the financial statements; (5) violation of the laws, regulations, rules and other normative documents, resulting in investigation of the central government and regulatory agencies, and being sentenced to a fine or penalty, being restricted industry exit, canceling business license and being forced the closure of etc. Major defect: (1) indirect impact on major mistakes of investment decisions; (2) indirectly make the significant error in the financial statements; (3) Lack of important system; (4) violation of the laws, regulations, rules and other normative documents, resulting in investigation of the local government and regulatory agencies, and being sentenced to a fine or penalty, and being ordered to suspend |
control defect besides material defect and major defect. | business for rectification and cause the Company’s business stop of etc. General defect: other control defect besides material defect and major defect. | |
Quantitative standard | 1. Potential loss or potential error of total profit: (1) General defect: less than or equal to pre-tax total profit of 3%, (2) Major defect: more than pre-tax total profit of 3%( and absolute amount more than RMB 0.5 million), (3) Material defect:: more than 5% of pre-tax total profit and absolute amount more than RMB 1 million; 2. Potential loss or potential error of operating income: (1) General defect: less than or equal to operating income of 1%, (2) Major defect: more than 1% of operating income and less than or equal to 3% of operation income, (3) Material defect:: more than 3% of operating income; 3. Potential loss or potential error of total assets: (1) General defect: less than or equal to 1% of total assets, (2) Major defect: more than 1% of total profit and less than or equal to 3% of total profit, (3) Material defect:: more than 3% of total profit | 1. Potential loss or potential error of total profit: (1) General defect: less than or equal to pre-tax total profit of 3%, (2) Major defect: more than pre-tax total profit of 3%( and absolute amount more than RMB 0.5 million), (3) Material defect:: more than 5% of pre-tax total profit and absolute amount more than RMB 1 million; 2. Potential loss or potential error of operating income: (1) General defect: less than or equal to operating income of 1%, (2) Major defect: more than 1% of operating income and less than or equal to 3% of operation income, (3) Material defect:: more than 3% of operating income; 3. Potential loss or potential error of total assets: (1) General defect: less than or equal to 1% of total assets, (2) Major defect: more than 1% of total profit and less than or equal to 3% of total profit, (3) Material defect:: more than 3% of total profit |
Amount of significant defects in financial reports | 0 | |
Amount of significant defects in non-financial reports | 0 | |
Amount of important defects in financial reports | 0 | |
Amount of important defects in non-financial reports | 0 |
Deliberations in Audit Report of Internal Control |
We considers that China Bicycle Company (Holdings) Limited, in line with Basic Norms of Internal Control and relevant regulations, shows an effectiveness internal control of financial report in all major aspects dated 31 December 2020. |
Disclosure details of audit report of internal control | Disclosed |
Disclosure date of audit report of internal control (full-text) | April 27, 2021 |
Opinion type of auditing report of IC | Standard unqualified |
Whether the non-financial report had major defects | No |
Section XI. Corporation BondsWhether or not the Company public offering corporation bonds in stock exchange, which undue or without payment in full atmaturity on the approval date for annual report disclosedNo
Section XII. Financial ReportI. Audit report
Type of audit opinion | An unqualified audit report with significant uncertainty of going concern |
Signing date of audit report | April 23, 2021 |
Name of audit institute | Baker Tilly China CPA (LLP) |
Name of CPA | Chen Zhigang, Zhang Lei |
III. Major uncertainty with continuous operation concernedWe bring to the attention of the users of the financial statements, as stated in note XV of the financial statementsunder the name of CBC, China Bicycle Company has completed implementation of the restructuring plan dated27 December 2013 and terminate the bankruptcy proceedings, in which the condition of introduction of investorshas been set out with a view to restoring its ability to continue as a going concern and its sustainable profitabilitythrough asset restructuring. Up to the reporting date of auditing, the Company has not introduced any investor,and maintain the ability of CBC to continue the business before the injection of the assets by only retaining thetraditional business of selling electric bicycles and developing and selling new business such as lithium batteriesand jewelry & gold. Considering that the net profit attributable to parent company for year of 2020 is 3.9846million yuan, only turning a loss into a profit, these events or circumstances indicate that there are significantuncertainties that may cause significant doubts about the sustainable operation ability of China Bicycle Company.This matter does not affect the published audit opinion.
IV. Key audit mattersKey audit matters are those matters that, in our professional judgment, were of most significance in our audit ofthe financial statements of the current period. These matters were addressed in the context of our audit of thefinancial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion onthese matters. The key audit matter we identified is as follows:
Key audit matters | Audit address |
1. Revenue recognized |
CBC mainly engages in the sales of bicycles, electric vehicles, relevant materials and jewelry accessories. In 2020, the main business income of Shenzhen China Bicycle Company was 108,929,796.13 yuan, all of which were generated from domestic sales. Shenzhen China Bicycle Company took the point of revenue recognition when the product is shipped and signed for by the customer. Due to the significant amount of operating income, the authenticity of the revenue and whether it should be included in the appropriate accounting period had a significant impact on the operating results of the company in 2020, and there might be potential misstatements. Therefore, we took the recognition of income as a key audit matter. Please refer to the accounting policies said in “25. Revenue” of “Note III Main Accounting Policies and Accounting Estimate”, “22. Operation Revenue and Cost” of “Note VI Annotation of Consolidate Financial Statement and “5. Operating Income and Costs” of “Note XV Principle notes of financial statement of | 1. Understand, test and evaluate the effectiveness of the internal control design and operation related to the company’s sales and collections. 2. Check the relevant provisions of customer contracts, and pay attention to the changes in pricing methods, acceptance methods, delivery locations and deadlines, settlement methods, etc., and assess whether the company’s recognition of income meets the requirements of the accounting standards and whether it is consistent with the disclosed accounting policies. 3. Inquire and understand the background information of major customers through open channels, such as business registration data, etc., confirm whether there are potential unrecognized related party relationships between the customer and the company and related parties. 4. Check the customer information (such as contact information, contact address, order time, etc.) of online marketing and evaluate the authenticity and rationality of online marketing; |
parent company” of the financial statements annotation. | examine the market price of main materials and analyze the rationality of gross profit rate fluctuation. 5.Inform the main customers of the current transaction amount and fund balance by confirmation letters, and visit important customers to verify the authenticity of the company’s revenue recognition. 6. Check the contracts, warehouse receipts, delivery notes and delivery receipt records of major customers 7. Check the delivery note within a certain period before and after the balance sheet date, pay attention to the date of receipt, and confirm whether the revenue recognition is included in the correct accounting period. |
2. Impairment of account receivable |
As of December 31, 2020, the balance of accounts receivable of Shenzhen China Bicycle Company was 60,001,774.73 yuan, and the balance of bad debt provisions was 4,970,350.03 yuan. As the balance of accounts receivable was significant and the assessment of bad debt provision involved the significant judgment of management, we regarded the impairment of accounts receivable as a key audit matter. Please refer to the accounting policies said in “12. Accounts Receivables” of Note III Main Accounting Policies and Accounting Estimate, “3. Account receivable” of “Note VI Annotation of Consolidate Financial Statement ”, and “2. Accounts Receivables” of “Note XV Principle notes of financial statement of parent company” of the financial statements annotation. | 1. Understand and test the effectiveness of the internal control design and operation related to the accounts receivable management 2. Review the rationality and consistency of accounting policies of the bad debt provision for accounts receivable of the management, and review the rationality of major standards of single amount determined by the management. 3. For the accounts receivable with separate provision for bad debts, select samples to obtain management’s basis for estimating the estimated future recoverable amount, including customer credit record, default or delayed payment records, and actual repayment after date, and review its rationality. 4.For the accounts receivable with provision for bad debts according to the aging analysis method, analyze the rationality of the accounting estimates for the bad-debt provision of the accounts receivable of China Bicycle Company, and select samples to test the accuracy of the ageing. |
our audit, or whether there is any material misstatement.Based on the works executed by us, we should report the fact if we find any material misstatement in otherinformation. In this regards, we have nothing to report.VI. Responsibilities of management and those charged with governance for the financial statementsThe management is responsible for the preparation of the financial statements in accordance with the AccountingStandards for Enterprise to secure a fair presentation, and for the design, establishment and maintenance of theinternal control necessary to enable the preparation of financial statements that are free from materialmisstatement, whether due to fraud or error.In preparing the financial statements, the management is responsible for assessing the Company’s ability tocontinue as a going concern, disclosing matters related to going concern and using the going concern assumptionunless the management either intends to liquidate the Company or to cease operations, or has no realisticalternative but to do so.Those charged with governance are responsible for overseeing the Company’s financial reporting process.VII. Responsibilities of the auditor for the financial statementsOur objectives are to obtain reasonable assurance about whether the financial statements as a whole are free frommaterial misstatement, whether due to fraud or error, and to issue an audit report that includes our audit opinion.Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordancewith the CAS will always detect a material misstatement when it exists. Misstatements can arise from fraud orerror and are considered material if, individually or in the aggregate, they could reasonably be expected toinfluence the economic decisions of users taken on the basis of the financial statements.As part of an audit in accordance with the CAS, we exercise professional judgment and maintain professionalskepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient andappropriate to provide a basis for audit opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that areappropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates andrelated disclosures made by the management.
(4) Conclude on the appropriateness of the management’s use of the going concern assumption and, based on theaudit evidence obtained, whether a material uncertainty exists related to events or conditions that may castsignificant doubt on the Company’s ability to continue as a going concern. If we conclude that a materialuncertainty exists, we are required by the CAS to draw users’ attention in audit report to the related disclosures inthe financial statements or, if such disclosures are inadequate, to modify audit opinion. Our conclusions are basedon the information obtained up to the date of audit report. However, future events or conditions may cause theCompany to cease to continue as a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements, and whether the financialstatements represent the underlying transactions and events in a manner that achieves fair presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or businessactivities within the Company to express audit opinion on the financial statements. We are responsible for thedirection, supervision and performance of the group audit. We remain solely responsible for audit opinion.We communicate with those charged with governance regarding, among other matters, the planned scope andtiming of the audit and significant audit findings, including any significant deficiencies in internal control that weidentify during our audit.We also provide those charged with governance with a statement that we have complied with relevant ethicalrequirements regarding independence, and communicate with them all relationships and other matters that mayreasonably be thought to bear on our independence, and where applicable, related safeguard measures.From the matters communicated with those charged with governance, we determine those matters that were ofmost significance in the audit of the financial statements of the current period and are therefore the key auditmatters. We describe these matters in the auditor’s report unless law or regulation precludes public disclosureabout the matter or when, in extremely rare circumstances, we determine that a matter should not becommunicated in the auditor’s report because of the adverse consequences of doing so would reasonably beexpected to outweigh the public interest benefits of such communication.
1. Consolidated Balance Sheet
Prepared by Shenzhen China Bicycle Company (Holdings) Limited
December 31, 2020
In RMB
Item | December 31, 2020 | December 31, 2019 |
Current assets: | ||
Monetary funds | 19,887,978.05 | 6,074,367.91 |
Settlement provisions | ||
Capital lent | ||
Trading financial assets | ||
Derivative financial assets | ||
Note receivable | 580,000.00 | |
Account receivable | 55,031,424.70 | 38,616,523.93 |
Receivable financing | ||
Accounts paid in advance | 816,541.52 | 938,425.99 |
Insurance receivable | ||
Reinsurance receivables | ||
Contract reserve of reinsurance receivable | ||
Other account receivable | 576,770.36 | 740,354.71 |
Including: Interest receivable | ||
Dividend receivable | ||
Buying back the sale of financial assets | ||
Inventories | 7,729,325.94 | 6,078,330.30 |
Contractual assets | ||
Assets held for sale | ||
Non-current asset due within one year | ||
Other current assets | 2,715,425.31 | 3,318,514.25 |
Total current assets | 86,757,465.88 | 56,346,517.09 |
Non-current assets: | ||
Loans and payments on behalf | ||
Debt investment | ||
Other debt investment | ||
Long-term account receivable | ||
Long-term equity investment | ||
Investment in other equity instrument | ||
Other non-current financial assets |
Investment real estate | ||
Fixed assets | 3,792,133.36 | 4,191,503.33 |
Construction in progress | ||
Productive biological asset | ||
Oil and gas asset | ||
Right-of-use assets | ||
Intangible assets | 753,000.00 | |
Expense on Research and Development | ||
Goodwill | ||
Long-term expenses to be apportioned | ||
Deferred income tax asset | 793,170.75 | 1,042,582.16 |
Other non-current asset | 400,000.00 | 400,000.00 |
Total non-current asset | 4,985,304.11 | 6,387,085.49 |
Total assets | 91,742,769.99 | 62,733,602.58 |
Current liabilities: | ||
Short-term loans | ||
Loan from central bank | ||
Capital borrowed | ||
Trading financial liability | ||
Derivative financial liability | ||
Note payable | ||
Account payable | 9,606,144.94 | 10,191,385.23 |
Accounts received in advance | 1,739,953.80 | |
Contractual liability | 15,254,713.38 | |
Selling financial asset of repurchase | ||
Absorbing deposit and interbank deposit | ||
Security trading of agency | ||
Security sales of agency | ||
Wage payable | 1,459,244.07 | 599,962.73 |
Taxes payable | 722,321.02 | 585,062.75 |
Other account payable | 37,882,805.52 | 38,175,654.98 |
Including: Interest payable | ||
Dividend payable | ||
Commission charge and commission payable | ||
Reinsurance payable | ||
Liability held for sale | ||
Non-current liabilities due within one year | ||
Other current liabilities | 1,175,251.38 | |
Total current liabilities | 66,100,480.31 | 51,292,019.49 |
Non-current liabilities: | ||
Insurance contract reserve | ||
Long-term loans | ||
Bonds payable | ||
Including: Preferred stock | ||
Perpetual capital securities | ||
Lease liability | ||
Long-term account payable | ||
Long-term wages payable | ||
Accrual liability | ||
Deferred income | ||
Deferred income tax liabilities | ||
Other non-current liabilities | ||
Total non-current liabilities | 1,175,251.38 | |
Total liabilities | 66,100,480.31 | 51,292,019.49 |
Owner’s equity: | ||
Share capital | 551,347,947.00 | 551,347,947.00 |
Other equity instrument | ||
Including: Preferred stock | ||
Perpetual capital securities | ||
Capital public reserve | 627,834,297.85 | 627,834,297.85 |
Less: Inventory shares | ||
Other comprehensive income |
Reasonable reserve | ||
Surplus public reserve | 32,673,227.01 | 32,673,227.01 |
Provision of general risk | ||
Retained profit | -1,200,950,240.88 | -1,204,736,075.56 |
Total owner’ s equity attributable to parent company | 10,905,230.98 | 7,119,396.30 |
Minority interests | 14,737,058.70 | 4,322,186.79 |
Total owner’ s equity | 25,642,289.68 | 11,441,583.09 |
Total liabilities and owner’ s equity | 91,742,769.99 | 62,733,602.58 |
Item | December 31, 2020 | December 31, 2019 |
Current assets: | ||
Monetary funds | 10,097,024.59 | 1,959,804.92 |
Trading financial assets | ||
Derivative financial assets | ||
Note receivable | 580,000.00 | |
Account receivable | 24,274,935.96 | 32,843,536.70 |
Receivable financing | ||
Accounts paid in advance | 800,000.00 | 76,937.00 |
Other account receivable | 115,263.05 | 485,062.44 |
Including: Interest receivable | ||
Dividend receivable | ||
Inventories | 550,421.78 | 1,333,374.72 |
Contractual assets | ||
Assets held for sale | ||
Non-current assets maturing within one year | ||
Other current assets | 2,652,771.13 | 2,830,705.01 |
Total current assets | 38,490,416.51 | 40,109,420.79 |
Non-current assets: | ||
Debt investment | ||
Other debt investment | ||
Long-term receivables | ||
Long-term equity investments | 19,960,379.73 | 4,235,379.73 |
Investment in other equity instrument | ||
Other non-current financial assets | ||
Investment real estate | ||
Fixed assets | 3,530,501.40 | 3,813,708.80 |
Construction in progress | ||
Productive biological assets | ||
Oil and natural gas assets | ||
Right-of-use assets | ||
Intangible assets | 753,000.00 | |
Research and development costs | ||
Goodwill | ||
Long-term deferred expenses | ||
Deferred income tax assets | ||
Other non-current assets | 400,000.00 | 400,000.00 |
Total non-current assets | 23,890,881.13 | 9,202,088.53 |
Total assets | 62,381,297.64 | 49,311,509.32 |
Current liabilities | ||
Short-term borrowings | ||
Trading financial liability | ||
Derivative financial liability | ||
Notes payable | ||
Account payable | 748,604.24 | 9,002,524.60 |
Accounts received in advance | 572,687.18 | |
Contractual liability | 14,685,423.04 | |
Wage payable | 1,146,371.58 | 507,738.35 |
Taxes payable | 24,906.50 | 27,797.28 |
Other accounts payable | 39,409,824.37 | 36,803,498.12 |
Including: Interest payable | ||
Dividend payable | ||
Liability held for sale | ||
Non-current liabilities due within one year | ||
Other current liabilities | 1,101,243.63 | |
Total current liabilities | 57,116,373.36 | 46,914,245.53 |
Non-current liabilities: | ||
Long-term loans | ||
Bonds payable | ||
Including: preferred stock | ||
Perpetual capital securities | ||
Lease liability | ||
Long-term account payable | ||
Long term employee compensation payable | ||
Accrued liabilities | ||
Deferred income | ||
Deferred income tax liabilities | ||
Other non-current liabilities | ||
Total non-current liabilities | ||
Total liabilities | 57,116,373.36 | 46,914,245.53 |
Owners’ equity: | ||
Share capital | 551,347,947.00 | 551,347,947.00 |
Other equity instrument | ||
Including: preferred stock | ||
Perpetual capital securities | ||
Capital public reserve | 627,834,297.85 | 627,834,297.85 |
Less: Inventory shares | ||
Other comprehensive income | ||
Special reserve | ||
Surplus reserve | 32,673,227.01 | 32,673,227.01 |
Retained profit | -1,206,590,547.58 | -1,209,458,208.07 |
Total owner’s equity | 5,264,924.28 | 2,397,263.79 |
Total liabilities and owner’s equity | 62,381,297.64 | 49,311,509.32 |
Item | 2020 | 2019 |
I. Total operating income | 117,857,480.17 | 76,022,687.75 |
Including: Operating income | 117,857,480.17 | 76,022,687.75 |
Interest income | ||
Insurance gained | ||
Commission charge and commission income | ||
II. Total operating cost | 113,179,555.62 | 80,986,694.86 |
Including: Operating cost | 103,221,623.73 | 68,681,471.12 |
Interest expense | ||
Commission charge and commission expense | ||
Cash surrender value | ||
Net amount of expense of compensation | ||
Net amount of withdrawal of insurance contract reserve | ||
Bonus expense of guarantee slip | ||
Reinsurance expense | ||
Tax and extras | 108,070.23 | 59,405.21 |
Sales expense | 2,540,657.03 | 3,178,476.39 |
Administrative expense | 4,783,608.32 | 6,409,465.59 |
R&D expense | 2,506,877.57 | 2,753,277.72 |
Financial expense | 18,718.74 | -95,401.17 |
Including: Interest expenses | ||
Interest income | 89,977.25 | 110,834.04 |
Add: other income | 10,207.52 | |
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 “-”) | ||
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 “-”) | -603,180.13 | -2,533,065.87 |
Losses of devaluation of asset (Loss is listed with “-”) | -198,181.03 | -499,175.17 |
Income from assets disposal (Loss is listed with “-”) | 24,936.44 | |
III. Operating profit (Loss is listed with “-”) | 3,911,707.35 | -7,996,248.15 |
Add: Non-operating income | 6,542,649.75 | 6,259,839.85 |
Less: Non-operating expense | 5,688,279.29 | 6,065,148.83 |
IV. Total profit (Loss is listed with “-”) | 4,766,077.81 | -7,801,557.13 |
Less: Income tax expense | 390,371.22 | 12,324.52 |
V. Net profit (Net loss is listed with “-”) | 4,375,706.59 | -7,813,881.65 |
(i) Classify by business continuity | ||
1.continuous operating net profit (net loss listed with ‘-”) | 4,375,706.59 | -7,813,881.65 |
2.termination of net profit (net loss listed with ‘-”) | ||
(ii) Classify by ownership | ||
1.Net profit attributable to owner’s of parent company | 3,785,834.68 | -7,186,905.64 |
2.Minority shareholders’ gains and losses | 589,871.91 | -626,976.01 |
VI. Net after-tax of other comprehensive income |
Net after-tax of other comprehensive income attributable to owners of parent company | ||
(i) Other comprehensive income items which will not be reclassified subsequently to profit of loss | ||
1.Changes of the defined benefit plans that re-measured | ||
2.Other comprehensive income under equity method that cannot be transfer to gain/loss | ||
3.Change of fair value of investment in other equity instrument | ||
4.Fair value change of enterprise's credit risk | ||
5. Other | ||
(ii) Other comprehensive income items which will be reclassified subsequently to profit or loss | ||
1.Other comprehensive income under equity method that can transfer to gain/loss | ||
2.Change of fair value of other debt investment | ||
3.Amount of financial assets re-classify to other comprehensive income | ||
4.Credit impairment provision for other debt investment | ||
5.Cash flow hedging reserve | ||
6.Translation differences arising on translation of foreign currency financial statements | ||
7.Other | ||
Net after-tax of other comprehensive income attributable to minority shareholders | ||
VII. Total comprehensive income | 4,375,706.59 | -7,813,881.65 |
Total comprehensive income | 3,785,834.68 | -7,186,905.64 |
attributable to owners of parent Company | ||
Total comprehensive income attributable to minority shareholders | 589,871.91 | -626,976.01 |
VIII. Earnings per share: | ||
(i) Basic earnings per share | 0.0069 | -0.0130 |
(ii) Diluted earnings per share | 0.0069 | -0.0130 |
Item | 2020 | 2019 |
I. Operating income | 28,879,097.16 | 57,765,728.40 |
Less: Operating cost | 21,700,690.24 | 52,957,470.16 |
Taxes and surcharge | 15,043.36 | 30,534.64 |
Sales expenses | 707,225.99 | 669,212.01 |
Administration expenses | 2,851,678.89 | 5,274,201.03 |
R&D expenses | 1,118,618.85 | 2,753,277.72 |
Financial expenses | -60,879.85 | -27,640.88 |
Including: interest expenses | ||
Interest income | 69,527.04 | 36,142.99 |
Add: other income | 8,595.12 | |
Investment income (Loss is listed with “-”) | ||
Including: Investment income on affiliated Company and joint venture | ||
The termination of income recognition for financial assets measured by amortized cost (Loss is listed with “-”) |
Net exposure hedging income (Loss is listed with “-”) | ||
Changing income of fair value (Loss is listed with “-”) | ||
Loss of credit impairment (Loss is listed with “-”) | -130,767.69 | -2,150,073.55 |
Losses of devaluation of asset (Loss is listed with “-”) | -118,780.98 | |
Income on disposal of assets (Loss is listed with “-”) | 24,936.44 | |
II. Operating profit (Loss is listed with “-”) | 2,330,702.57 | -6,041,399.83 |
Add: Non-operating income | 5,975,186.69 | 5,964,797.81 |
Less: Non-operating expense | 5,438,228.77 | 5,603,102.65 |
III. Total Profit (Loss is listed with “-”) | 2,867,660.49 | -5,679,704.67 |
Less: Income tax | ||
IV. Net profit (Net loss is listed with “-”) | 2,867,660.49 | -5,679,704.67 |
(i) continuous operating net profit (net loss listed with ‘-”) | 2,867,660.49 | -5,679,704.67 |
(ii) termination of net profit (net loss listed with ‘-”) | ||
V. Net after-tax of other comprehensive income | ||
(i) Other comprehensive income items which will not be reclassified subsequently to profit of loss | ||
1.Changes of the defined benefit plans that re-measured | ||
2.Other comprehensive income under equity method that cannot be transfer to gain/loss | ||
3.Change of fair value of investment in other equity instrument | ||
4.Fair value change of enterprise's credit risk | ||
5. Other | ||
(ii) Other comprehensive income |
items which will be reclassified subsequently to profit or loss | ||
1.Other comprehensive income under equity method that can transfer to gain/loss | ||
2.Change of fair value of other debt investment | ||
3.Amount of financial assets re-classify to other comprehensive income | ||
4.Credit impairment provision for other debt investment | ||
5.Cash flow hedging reserve | ||
6.Translation differences arising on translation of foreign currency financial statements | ||
7.Other | ||
VI. Total comprehensive income | 2,867,660.49 | -5,679,704.67 |
VII. Earnings per share: | ||
(i) Basic earnings per share | ||
(ii) Diluted earnings per share |
Item | 2020 | 2019 |
I. Cash flows arising from operating activities: | ||
Cash received from selling commodities and providing labor services | 93,023,981.38 | 34,301,259.24 |
Net increase of customer deposit and interbank deposit | ||
Net increase of loan from central bank | ||
Net increase of capital borrowed from other financial institution |
Cash received from original insurance contract fee | ||
Net cash received from reinsurance business | ||
Net increase of insured savings and investment | ||
Cash received from interest, commission charge and commission | ||
Net increase of capital borrowed | ||
Net increase of returned business capital | ||
Net cash received by agents in sale and purchase of securities | ||
Write-back of tax received | 78,290.48 | |
Other cash received concerning operating activities | 28,524,286.42 | 8,415,964.05 |
Subtotal of cash inflow arising from operating activities | 121,626,558.28 | 42,717,223.29 |
Cash paid for purchasing commodities and receiving labor service | 96,741,787.34 | 33,526,465.17 |
Net increase of customer loans and advances | ||
Net increase of deposits in central bank and interbank | ||
Cash paid for original insurance contract compensation | ||
Net increase of capital lent | ||
Cash paid for interest, commission charge and commission | ||
Cash paid for bonus of guarantee slip | ||
Cash paid to/for staff and workers | 5,937,846.01 | 6,068,095.14 |
Taxes paid | 551,358.27 | 5,495,235.28 |
Other cash paid concerning operating activities | 14,453,337.70 | 11,419,369.04 |
Subtotal of cash outflow arising from operating activities | 117,684,329.32 | 56,509,164.63 |
Net cash flows arising from operating activities | 3,942,228.96 | -13,791,941.34 |
II. Cash flows arising from investing activities: | ||
Cash received from recovering investment | ||
Cash received from investment income | ||
Net cash received from disposal of fixed, intangible and other long-term assets | 64,500.00 | |
Net cash received from disposal of subsidiaries and other units | ||
Other cash received concerning investing activities | ||
Subtotal of cash inflow from investing activities | 64,500.00 | |
Cash paid for purchasing fixed, intangible and other long-term assets | 18,118.82 | 897,577.01 |
Cash paid for investment | ||
Net increase of mortgaged loans | ||
Net cash received from subsidiaries and other units obtained | ||
Other cash paid concerning investing activities | ||
Subtotal of cash outflow from investing activities | 18,118.82 | 897,577.01 |
Net cash flows arising from investing activities | 46,381.18 | -897,577.01 |
III. Cash flows arising from financing activities | ||
Cash received from absorbing investment | 9,825,000.00 | 2,275,000.00 |
Including: Cash received from absorbing minority shareholders’ investment by subsidiaries | 9,825,000.00 | 2,275,000.00 |
Cash received from loans | ||
Other cash received concerning | 2,000,000.00 |
financing activities | ||
Subtotal of cash inflow from financing activities | 9,825,000.00 | 4,275,000.00 |
Cash paid for settling debts | ||
Cash paid for dividend and profit distributing or interest paying | ||
Including: Dividend and profit of minority shareholder paid by subsidiaries | ||
Other cash paid concerning financing activities | ||
Subtotal of cash outflow from financing activities | ||
Net cash flows arising from financing activities | 9,825,000.00 | 4,275,000.00 |
IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | ||
V. Net increase of cash and cash equivalents | 13,813,610.14 | -10,414,518.35 |
Add: Balance of cash and cash equivalents at the period -begin | 6,074,367.91 | 16,488,886.26 |
VI. Balance of cash and cash equivalents at the period -end | 19,887,978.05 | 6,074,367.91 |
Item | 2020 | 2019 |
I. Cash flows arising from operating activities: | ||
Cash received from selling commodities and providing labor services | 17,674,623.95 | 20,912,867.52 |
Write-back of tax received | 4,239.24 | |
Other cash received concerning operating activities | 33,840,545.52 | 11,527,292.59 |
Subtotal of cash inflow arising from operating activities | 51,519,408.71 | 32,440,160.11 |
Cash paid for purchasing commodities and receiving labor service | 9,546,863.96 | 15,697,313.54 |
Cash paid to/for staff and workers | 4,522,703.61 | 4,179,923.89 |
Taxes paid | 296,782.94 | 5,298,670.25 |
Other cash paid concerning operating activities | 13,337,219.71 | 9,071,443.23 |
Subtotal of cash outflow arising from operating activities | 27,703,570.22 | 34,247,350.91 |
Net cash flows arising from operating activities | 23,815,838.49 | -1,807,190.80 |
II. Cash flows arising from investing activities: | ||
Cash received from recovering investment | ||
Cash received from investment income | ||
Net cash received from disposal of fixed, intangible and other long-term assets | 64,500.00 | |
Net cash received from disposal of subsidiaries and other units | ||
Other cash received concerning investing activities | ||
Subtotal of cash inflow from investing activities | 64,500.00 | |
Cash paid for purchasing fixed, intangible and other long-term assets | 18,118.82 | 897,577.01 |
Cash paid for investment | 15,725,000.00 | 4,225,000.00 |
Net cash received from subsidiaries and other units obtained | ||
Other cash paid concerning investing activities | ||
Subtotal of cash outflow from investing activities | 15,743,118.82 | 5,122,577.01 |
Net cash flows arising from investing activities | -15,678,618.82 | -5,122,577.01 |
III. Cash flows arising from financing |
activities | ||
Cash received from absorbing investment | ||
Cash received from loans | ||
Other cash received concerning financing activities | ||
Subtotal of cash inflow from financing activities | ||
Cash paid for settling debts | ||
Cash paid for dividend and profit distributing or interest paying | ||
Other cash paid concerning financing activities | ||
Subtotal of cash outflow from financing activities | ||
Net cash flows arising from financing activities | ||
IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | ||
V. Net increase of cash and cash equivalents | 8,137,219.67 | -6,929,767.81 |
Add: Balance of cash and cash equivalents at the period -begin | 1,959,804.92 | 8,889,572.73 |
VI. Balance of cash and cash equivalents at the period -end | 10,097,024.59 | 1,959,804.92 |
Item | 2020 | ||||||||||||||
Owners’ equity attributable to the parent Company | Minority interests | Total owners’ equity | |||||||||||||
Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Provision of general risk | Retained profit | Other | Subtotal | |||||
Preferred stock | Perpetual capital | Other |
securities | |||||||||||||||
I. Balance at the end of the last year | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,204,736,075.56 | 7,119,396.30 | 4,322,186.79 | 11,441,583.09 | ||||||||
Add: Changes of accounting policy | |||||||||||||||
Error correction of the last period | |||||||||||||||
Enterprise combine under the same control | |||||||||||||||
Other | |||||||||||||||
II. Balance at the beginning of this year | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,204,736,075.56 | 7,119,396.30 | 4,322,186.79 | 11,441,583.09 | ||||||||
III. Increase/ Decrease in this year (Decrease is listed with “-”) | 3,785,834.68 | 3,785,834.68 | 10,414,871.91 | 14,200,706.59 | |||||||||||
(i) Total comprehensive income | 3,785,834.68 | 3,785,834.68 | 589,871.91 | 4,375,706.59 | |||||||||||
(ii) Owners’ devoted and decreased capital | 9,825,000.00 | 9,825,000.00 | |||||||||||||
1.Common shares invested by shareholders | 9,825,000.00 | 9,825,000.00 | |||||||||||||
2. Capital invested by holders of other equity instruments |
3. Amount reckoned into owners equity with share-based payment | |||||||||||||||
4. Other | |||||||||||||||
(III) Profit distribution | |||||||||||||||
1. Withdrawal of surplus reserves | |||||||||||||||
2. Withdrawal of general risk provisions | |||||||||||||||
3. Distribution for owners (or shareholders) | |||||||||||||||
4. Other | |||||||||||||||
(IV) Carrying forward internal owners’ equity | |||||||||||||||
1. Capital reserves conversed to capital (share capital) | |||||||||||||||
2. Surplus reserves conversed to capital (share capital) | |||||||||||||||
3. Remedying loss with surplus reserve | |||||||||||||||
4.Carry-over retained earnings from the defined benefit plans |
5.Carry-over retained earnings from other comprehensive income | |||||||||||||||
6. Other | |||||||||||||||
(V) Reasonable reserve | |||||||||||||||
1. Withdrawal in the report period | |||||||||||||||
2. Usage in the report period | |||||||||||||||
(VI)Others | |||||||||||||||
IV. Balance at the end of the report period | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,200,950,240.88 | 10,905,230.98 | 14,737,058.70 | 25,642,289.68 |
Item | 2019 | ||||||||||||||
Owners’ equity attributable to the parent Company | Minority interests | Total owners’ equity | |||||||||||||
Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Provision of general risk | Retained profit | Other | Subtotal | |||||
Preferred stock | Perpetual capital securities | Other | |||||||||||||
I. Balance at the end of the last year | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,197,549,169.92 | 14,306,301.94 | 2,674,162.80 | 16,980,464.74 | ||||||||
Add: Changes of accounting policy | |||||||||||||||
Error correction of the last period |
Enterprise combine under the same control | |||||||||||||||
Other | |||||||||||||||
II. Balance at the beginning of this year | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,197,549,169.92 | 14,306,301.94 | 2,674,162.80 | 16,980,464.74 | ||||||||
III. Increase/ Decrease in this year (Decrease is listed with “-”) | -7,186,905.64 | -7,186,905.64 | 1,648,023.99 | -5,538,881.65 | |||||||||||
(i) Total comprehensive income | -7,186,905.64 | -7,186,905.64 | -626,976.01 | -7,813,881.65 | |||||||||||
(ii) Owners’ devoted and decreased capital | 2,275,000.00 | 2,275,000.00 | |||||||||||||
1.Common shares invested by shareholders | 2,275,000.00 | 2,275,000.00 | |||||||||||||
2. Capital invested by holders of other equity instruments | |||||||||||||||
3. Amount reckoned into owners equity with share-based payment | |||||||||||||||
4. Other | |||||||||||||||
(III) Profit distribution | |||||||||||||||
1. Withdrawal of surplus |
reserves | |||||||||||||||
2. Withdrawal of general risk provisions | |||||||||||||||
3. Distribution for owners (or shareholders) | |||||||||||||||
4. Other | |||||||||||||||
(IV) Carrying forward internal owners’ equity | |||||||||||||||
1. Capital reserves conversed to capital (share capital) | |||||||||||||||
2. Surplus reserves conversed to capital (share capital) | |||||||||||||||
3. Remedying loss with surplus reserve | |||||||||||||||
4.Carry-over retained earnings from the defined benefit plans | |||||||||||||||
5.Carry-over retained earnings from other comprehensive income | |||||||||||||||
6. Other | |||||||||||||||
(V) Reasonable reserve | |||||||||||||||
1. Withdrawal |
in the report period | |||||||||||||||
2. Usage in the report period | |||||||||||||||
(VI)Others | |||||||||||||||
IV. Balance at the end of the report period | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,204,736,075.56 | 7,119,396.30 | 4,322,186.79 | 11,441,583.09 |
Item | 2020 | |||||||||||
Share capital | Other equity instrument | Capital public reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Retained profit | Other | Total owners’ equity | |||
Preferred stock | Perpetual capital securities | Other | ||||||||||
I. Balance at the end of the last year | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,209,458,208.07 | 2,397,263.79 | |||||||
Add: Changes of accounting policy | ||||||||||||
Error correction of the last period | ||||||||||||
Other | ||||||||||||
II. Balance at the beginning of this year | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,209,458,208.07 | 2,397,263.79 | |||||||
III. Increase/ Decrease in this year (Decrease is listed with “-”) | 2,867,660.49 | 2,867,660.49 | ||||||||||
(i) Total comprehensive | 2,867,660.49 | 2,867,660.49 |
income | ||||||||||||
(ii) Owners’ devoted and decreased capital | ||||||||||||
1.Common shares invested by shareholders | ||||||||||||
2. Capital invested by holders of other equity instruments | ||||||||||||
3. Amount reckoned into owners equity with share-based payment | ||||||||||||
4. Other | ||||||||||||
(III) Profit distribution | ||||||||||||
1. Withdrawal of surplus reserves | ||||||||||||
2. Distribution for owners (or shareholders) | ||||||||||||
3. Other | ||||||||||||
(IV) Carrying forward internal owners’ equity | ||||||||||||
1. Capital reserves conversed to capital (share capital) | ||||||||||||
2. Surplus reserves conversed to capital (share capital) | ||||||||||||
3. Remedying |
loss with surplus reserve | ||||||||||||
4.Carry-over retained earnings from the defined benefit plans | ||||||||||||
5.Carry-over retained earnings from other comprehensive income | ||||||||||||
6. Other | ||||||||||||
(V) Reasonable reserve | ||||||||||||
1. Withdrawal in the report period | ||||||||||||
2. Usage in the report period | ||||||||||||
(VI)Others | ||||||||||||
IV. Balance at the end of the report period | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,206,590,547.58 | 5,264,924.28 |
Item | 2019 | |||||||||||
Share capital | Other equity instrument | Capital public reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Retained profit | Other | Total owners’ equity | |||
Preferred stock | Perpetual capital securities | Other | ||||||||||
I. Balance at the end of the last year | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,203,778,503.40 | 8,076,968.46 | |||||||
Add: Changes of accounting policy |
Error correction of the last period | ||||||||||||
Other | ||||||||||||
II. Balance at the beginning of this year | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,203,778,503.40 | 8,076,968.46 | |||||||
III. Increase/ Decrease in this year (Decrease is listed with “-”) | -5,679,704.67 | -5,679,704.67 | ||||||||||
(i) Total comprehensive income | -5,679,704.67 | -5,679,704.67 | ||||||||||
(ii) Owners’ devoted and decreased capital | ||||||||||||
1.Common shares invested by shareholders | ||||||||||||
2. Capital invested by holders of other equity instruments | ||||||||||||
3. Amount reckoned into owners equity with share-based payment | ||||||||||||
4. Other | ||||||||||||
(III) Profit distribution | ||||||||||||
1. Withdrawal of surplus reserves | ||||||||||||
2. Distribution |
for owners (or shareholders) | ||||||||||||
3. Other | ||||||||||||
(IV) Carrying forward internal owners’ equity | ||||||||||||
1. Capital reserves conversed to capital (share capital) | ||||||||||||
2. Surplus reserves conversed to capital (share capital) | ||||||||||||
3. Remedying loss with surplus reserve | ||||||||||||
4.Carry-over retained earnings from the defined benefit plans | ||||||||||||
5.Carry-over retained earnings from other comprehensive income | ||||||||||||
6. Other | ||||||||||||
(V) Reasonable reserve | ||||||||||||
1. Withdrawal in the report period | ||||||||||||
2. Usage in the report period | ||||||||||||
(VI)Others | ||||||||||||
IV. Balance at | 551,34 | 627,834 | 32,673, | -1,209,45 | 2,397,263.7 |
the end of the report period | 7,947.00 | ,297.85 | 227.01 | 8,208.07 | 9 |
Emmelle Industrial Co., Ltd and its subsidiaries Emmelle Cloud Technology Co., Ltd. and Shenzhen XinsenJewelry Gold Supply Chain Co., Ltd, of which, the Shenzhen Emmelle Cloud Technology Co., Ltd is the newlyestablished sub-subsidiary included in consolidate statements during the period.
IV. Compilation Basis of Financial Statement
1. Compilation Basis
The financial statement is prepared based on continuing operation assumptions, and according to actualoccurrence, in line with relevant accounting rules and follow important accounting policy and estimation.
2. Going concern
On 11 May 2012, the largest shareholder and biggest creditor of the Company, Shenzhen Guosheng EnergyInvestment Development Co., Ltd. applied to Shenzhen Municipal Intermediate People's Court for reforming theCompany as the Company couldn’t pay off the matured debts and was seriously insolvent. On 12 October 2012,Shenzhen Municipal Intermediate People's Court ruled to accept the application proposed by Guosheng Energyaccording to (2012) Shenzhen Intermediate Court Po Zi No. 30 civil ruling. On the last ten-day of October 2012,Shenzhen Municipal Intermediate People's Court ruled to reform the Company since 25 October 2012 accordingto (2012) Shenzhen Intermediate Court Po Zi No. 30-1 civil ruling, appointed King & Wood (Shenzhen)Mallesons and Shenzhen ZhengYuan Liquidation Affairs Co., Ltd. as the custodians of the Company. On the sameday, Shenzhen Municipal Intermediate People's Court made (2012) Shenzhen Intermediate Court Po Zi No. 30-1written decision, and approved the Company to manage property and business affairs by itself under thesupervision of custodians according to the law. On 5 November 2013, the Shenzhen Intermediate People’s Court(2012) Shen Zhong Fa Po Zi No. 30-6 Civil Ruling Paper judged that approved the reorganization plan of theCompany. On 27 December 2013, the Civil Ruling Paper Shenzhen Intermediate People’s Court (2012) ShenZhong Fa Po Zi No. 30-10 ruled that the reorganization plan of CBC was completed and bankruptcy procedures ofthe Company closed down.The Company has solved the debt problem by reforming, realized the net assets with positive value, the mainbusiness of bicycle is able to be maintained and realizes the stable development. The Company has set up theconditions for introducing the recombination party in the reforming plan, and expects to restore the abilities ofsustainable operation and sustained profitability by reorganization. The conditions of introducing therecombination party includes: the assessed value of net assets should be no less than 2 billion Yuan, the net assetsin the same year for implementing the major reorganization should be no less than 200 million Yuan. TheCompany doesn’t have the recombination party at the moment.
V. Main accounting policy and Accounting EstimateTips for specific accounting policy and estimate:
1. Declaration on compliance with accounting standards for business enterpriseThe financial statement prepared by the Company, based on follow compilation basis, is comply with therequirement of new accounting standards for business enterprise issued by Ministry of Finance and its applicationguide, commentate as well as other regulations (collectively referred to as Accounting Standards for BusinessEnterprise), which is reflect a real and truth financial status of the Company, as well as operation results and cashflow situations.Furthermore, the statement has reference to the listing and disclosure requirement from “Rules Governing theDisclosure of Information for Enterprise with Stock Listed No.15-general regulation of financial report” (2014Revised) and “Notice on Implementation of New Accounting Standards for Listed Companies” (KJBH (2018) No.453)
2. Accounting period
Calendar year is the accounting period for the Company, which is starting from 1 January to 31 December.
3. Business cycles
The business period for the Company, which is the Gregorian calendar starting from 1 January to 31 December
4. Book-keeping currency
The Company and its subsidiaries take RMB as the standard currency for bookkeeping.
5. Accounting treatment for business combinations under the same control and those not under the samecontrol
(1) Accounting treatment for business combinations under the same control and those not under the same controlFor a business merger that is under the same control and is achieved by the Company through one singletransaction or multiple transactions, assets and liabilities obtained from that business combination shall bemeasured at their book value at the combination date as recorded by the party being absorbed in the consolidatedfinancial statement of ultimate controlling party. Capital reserve shall be adjusted as per the difference between
the book value of obtained net assets and the book value of paid consolidated consideration (or the nominal valueof the issued shares) of the Company; retained earnings shall be adjusted if the capital reserve is not sufficient foroffset.
(2) Accounting treatment for Enterprise combine not under the same control
The Company will validate the difference that the combined cost is more than the fair value of the net identifiableassets gained from the acquiree on the acquisition date as goodwill; where the combined cost is less than the fairvalue of net identifiable assets gained from the acquiree during business combination, the fair value and combinedcost of various identifiable assets, liabilities and contingent liabilities from the acquiree must be rechecked. Wherethe combined cost is, after the recheck, still less than the fair value of net identifiable assets gained from theacquiree during business combination, the difference shall be charged to current profits and losses.As for business combination not under common control and realized through multiple transactions and by steps,the Company shall make accounting treatment as follows:
1) Adjust the initial investment cost of long-term equity investments. As for stock equities held before theacquisition date accounted according to the equity method, re-measurement is carried out according to the fairvalue of the equity on the acquisition date. The balance between the fair value and the book value is included inthe current investment income. If the acquiree’s stock equities held before the acquisition date involves changes ofother comprehensive incomes and other owner's equities under accounting with the equity method, the balancebetween the fair value and the book value is included in the current investment income on the acquisition date,excluding other comprehensive incomes incurred by changes due to re-measurement of net liabilities or net assetsof the defined benefit plan.
2) Confirm the goodwill (or include the amount in the profits and losses). The initial investment cost of long-termequity investments adjusted in step 1 is compared with the fair value of net identifiable assets of the subsidiaryshared on the acquisition date. If the former is greater than the latter, the balance is confirmed as goodwill; if theformer is less than the latter, the balance is included in the current profits and losses.Loss of control of a subsidiary in multiple transactions in which it disposes equity interests of its subsidiary instages
(1)In determining whether to account for the multiple transactions as a single transactionA parent shall consider all the terms and conditions of the transactions and their economic effects. One or more ofthe following may indicate that the parent should account for the multiple arrangements as a single transaction:
1) Arrangements are entered into at the same time or in contemplation of each other;
2) Arrangements work together to achieve an overall commercial effect;
3) The occurrence of one arrangement is dependent on the occurrence of at least one other arrangement;
4)One arrangement considered on its own is not economically justified, but it is economically justified when
considered together with other arrangements.
(2)Accounting treatment for each of the multiple transactions forming part of a bundled transactions whicheventually results in loss of control the subsidiary during disposal of its subsidiary in 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 stagesIf the Company doesn't lose control of investee, the difference between the amount of the consideration receivedand the corresponding portion of net assets of the subsidiary shall be adjusted to the capital reserve (capital /equitypremium) in the consolidated financial statements.If the Company loses control of investee, the remaining equity investment shall be re-measured at its fair value inthe consolidated financial statements at the date when control is lost. The difference between the total amount ofconsideration received from the transaction that resulted in the loss of control and the fair value of the remainingequity investment and the share of net assets of the former subsidiary calculated continuously from the acquisitiondate or combination date based on the previous shareholding percentage, shall be recognized as investmentincome for the current period when control is lost. The amount previously recognized in other comprehensiveincome in relation to the former subsidiary’s equity investment should be transferred to investment income for thecurrent period when control is lost.
6. Compilation method of consolidated financial statement
Consolidated financial statements are prepared by the Company in accordance with Accounting Standard forBusiness Enterprise No. 33-Consolidated Financial Statements and based on financial statements of parentcompany and its subsidiaries and other related information.
When consolidating the financial statements, the following items are eliminated: internal equity investment andowners’ equity of subsidiaries, proceeds on internal investments and profit distribution of subsidiaries, internaltransactions, internal debts and claim. The accounting policies adopted by subsidiaries are the same as parentcompany.
7. Classification of joint venture arrangement and accounting treatment for joint control
(1) Affirmation and classification of joint venture arrangement
Joint arrangement refers to an arrangement controlled by two or more than two participants. Joint venturearrangement has the following characteristics: 1) Each participant is bound by the arrangement; 2) Two or moreparticipants carry out joint control on implementation of the arrangement. Any participant cannot control thearrangement independently. Any participant for joint control can stop other participants or participantcombinations to independently control the arrangement.Joint control refers to the sharing of control over certain arrangement under related agreements, and relatedactivities of the arrangement must be determined only when obtaining the unanimous consent of the partiessharing control.Joint venture arrangement is classified in to joint operation and joint venture. Joint operation refers to anarrangement that a joint party enjoys assets related to the arrangement and bears liabilities related to thearrangement. Joint venture refers to an arrangement that a joint party only has the power governing net assets ofthe arrangement.
(2) Accounting treatment of joint venture arrangement
Joint venture participants should confirm the following items related to interest shares in joint venture and carryout accounting settlement according to relevant provisions of the Accounting Standards for Business Enterprises:
1) confirm the assets held separately and confirm the assets held jointly based on shares; 2) confirm the liabilitiesborne separately and confirm the liabilities borne jointly based on shares; 3) confirm the income incurred afterselling its shares in joint venture output; 4) confirm the income after selling the joint venture outputs based onshares; 5) confirm the expenses incurred separately and confirm the expenses incurred in joint venture based onshares.Joint venture participants should carry out accounting settlement for investments of the joint venture according toprovisions of Accounting Standards for Business Enterprises No.2–Long-term Equity Investments.
8. Recognition of cash and cash equivalents
Cash in cash flow statement means the inventory cash and savings available for use anytime. Cash equivalentsrefer to the short-term (generally due within three months since the date of purchase) highly liquid investmentsthat are readily convertible into known amounts of cash and that are subject to an insignificant risk of change invalue.
9. Foreign currency transaction and financial statement conversion
(1)Conversion for foreign currency transaction
When initially recognized, the foreign currency for the transaction shall be converted into CNY amount accordingto the spot exchange rate on the date of transaction. For the foreign currency monetary items, conversion must bebased on the spot exchange rate on the balance sheet date and the exchange difference incurred from differentexchange rates, except for the exchange difference of principal and interest incurred due to foreign currency loanrelated to acquisition or construction of assets that qualify for capitalization, shall be charged to current profits andlosses; foreign currency non-monetary items measured with historical cost are still converted as per the spotexchange rate on the transaction date and keep the RMB amount unchanged; foreign currency non-monetary itemsmeasured with fair value shall be converted as per the spot exchange rate on the date of determining the fair valueand the difference shall be charged to current profits and losses or other comprehensive income.
(2)Conversion of financial statements presented in foreign currencies
The asset and liability items in the balance sheet shall be converted at the spot exchange rate on the balance sheetdate; the owner’s equity items, except for the items of “undistributed profit”, shall be converted at the spotexchange rate on the transaction date; the income and expenditure items in the profit statement shall be convertedat the spot exchange rate on the transaction date. The translation difference of foreign financial statementsconducted as above is recognized as other comprehensive incomes.
10. Financial instruments
(1) Recognition and termination for financial instrument
Financial assets or financial liabilities are recognized when the Group becomes a party to the contractualprovisions of the instrument.When buying and selling financial assets in a conventional manner, recognize and derecognize them according tothe accounting of the trading day. Buying and selling financial assets in a conventional manner refers to thecollection or delivery of financial assets in accordance with the contract terms and within the period prescribed byregulations or prevailing practices. Trading day refers to the date when the Company promises to buy or sellfinancial assets.
When meeting the following conditions, derecognize a financial asset (or part of a financial asset, or part of agroup of similar financial assets), i.e. to write off from its account and balance sheet:
1) The right to receive cash flows from financial assets expires;
2) The right to receive cash flows of financial assets is transferred, or assume the obligation to pay the full amountof cash flows received to a third party in a timely manner under the “handover agreement”; and (a) virtuallytransferred almost all risks and rewards of the ownership of financial assets, or (b) although virtually neithertransferred nor retained almost all risks and rewards of the ownership of financial assets, abandoned the control ofthe financial assets.
(2) Classification and measurement of financial assets
The Company’s financial assets are classified as financial assets measured at amortized cost, financial assetsmeasured at fair value and whose changes are included in other comprehensive income, and financial assetsmeasured at fair value and whose changes are included in the current profit and loss according to the Company’sbusiness model for managing financial assets and the contractual cash flow characteristics of financial assets atinitial recognition. The subsequent measurement of financial assets depends on their classification.The Company’s classification of financial assets is based on the Company’s business model for managingfinancial assets and the cash flow characteristics of financial assets.
1) Financial assets measured at amortized cost
Financial assets that meet the following conditions at the same time are classified as financial assets measured atamortized cost: the Company’s business model for managing this financial asset is to collect contractual cashflows; the contract terms of the financial asset stipulate that the cash flow generated on a specific date is only thepayment of principal and interest based on the outstanding principal amount. For such financial assets, the actualinterest rate method is used for subsequent measurement based on amortized cost, and the gains or losses arisingfrom amortization or impairment are included in the current profit and loss.
2) Debt instrument investments measured at fair value and whose changes are included in other comprehensiveincomeFinancial assets that meet the following conditions at the same time are classified as financial assets measured atfair value and whose changes are included in other comprehensive income: the Company’s business model formanaging this financial asset is to both collect contractual cash flows and sell the financial assets; the contractterms of the financial asset stipulate that the cash flow generated on a specific date is only for the payment ofprincipal and interest based on the outstanding principal amount. For such financial assets, fair value is used forsubsequent measurement. The discount or premium is amortized by using the actual interest method and isrecognized as interest income or expenses. Except that the impairment loss and the exchange difference of foreigncurrency monetary financial assets are recognized as current gains and losses, changes in the fair value of suchfinancial assets are recognized as other comprehensive income, until the financial asset is derecognized, itscumulative gains or losses are transferred to the current profit and loss. Interest income related to such financialassets is included in the current profit and loss.
3) Equity instrument investments measured at fair value and whose changes are included in other comprehensiveincomeThe Company irrevocably chooses to designate some non-trading equity instrument investments as financialassets measured at fair value and whose changes are included in other comprehensive income. Only relevantdividend income is included in the current profit and loss, and changes in fair value are recognized as othercomprehensive income, until the financial asset is derecognized, its accumulated gains or losses are transferred toretained earnings.
4) Financial assets measured at fair value and whose changes are included in the current profit and lossFinancial assets except for above financial assets measured at amortized cost and financial assets measured at fairvalue and whose changes are included in other comprehensive income are classified as financial assets measuredat fair value and whose changes are included in the current profit and loss. During initial recognition, in order toeliminate or significantly reduce accounting mismatches, financial assets can be designated as financial assetsmeasured at fair value and whose changes included in the current profit and loss. For such financial assets, fairvalue is used for subsequent measurement, and all changes in fair value are included in the current profit and loss.When and only when the Company changes its business model for managing financial assets, it will reclassify allaffected related financial assets.For financial assets measured at fair value and whose changes are included in the current profit or loss, the relatedtransaction costs are directly included in the current profit and loss, and the related transaction costs of other typesof financial assets are included in the initial recognition amount.
(3) Classification and measurement of financial liabilities
The Company’s financial liabilities are classified as financial liabilities measured at amortized cost and financialliabilities measured at fair value and whose changes are included in the current profit and loss at initialrecognition.Financial liabilities that meet one of the following conditions can be designated as financial liabilities measured atfair value and whose changes are included in current profit or loss during initial measurement: (1) Thisdesignation can eliminate or significantly reduce accounting mismatches; (2) According to the group riskmanagement or investment strategies stated in official written documents, management and performanceevaluation of financial liability portfolios or financial assets and financial liability portfolios are conducted basedon fair value, and are reported to key management personnel within the group on this basis; (3) The financialliability includes embedded derivatives that need to be split separately.The Company determines the classification of financial liabilities at initial recognition. For financial liabilities thatare measured at fair value and whose changes are included in the current profit or loss, the related transactioncosts are directly included in the current profit and loss, and the related transaction costs of other financialliabilities are included in its initial recognition amount.The subsequent measurement of financial liabilities depends on their classification:
1) Financial liabilities measured at amortized cost
For such financial liabilities, adopt actual interest rate method and make subsequent measurements based onamortized costs.
2) Financial liabilities measured at fair value and whose changes are included in the current profit and lossFinancial liabilities that are measured at fair value and whose changes are included in the current profit or lossinclude trading financial liabilities (including derivatives that are financial liabilities) and financial liabilitiesdesignated to be measured at fair value at the initial recognition and whose changes are included in the currentprofit or loss.
(4) Financial instruments offset
If the following conditions are met at the same time, the financial assets and financial liabilities are listed in thebalance sheet with the net amount after mutual offset: legal right to offset the confirmed amount, and this legalright is currently executable; Net settlement, or simultaneous realization of the financial assets and liquidation ofthe financial liabilities.
(5) Impairment of financial assets
The Company recognizes the loss provisions on the basis of expected credit losses for financial assets measured atamortized cost, debt instrument investments measured at fair value and whose changes are included in othercomprehensive income and financial guarantee contracts. Credit loss refers to the difference between allcontractual cash flows receivable under the contract and discounted according to original actual interest rate bythe Company and all expected receivable cash flows, that is, the present value of all cash shortages.The Company considers all reasonable and evidence-based information, including forward-looking information,and estimates the expected credit loss of financial assets measured at amortized cost and financial assets measuredat fair value and whose changes are included in other comprehensive income (debt instruments) in a single orcombined manner.
1) General model of expected credit loss
If the credit risk of the financial instrument has increased significantly since the initial recognition, the Companymeasures its loss provisions in accordance with the amount equivalent to the expected credit loss of the financialinstrument for the entire duration; if the credit risk of the financial instrument has not significantly increased sincethe initial recognition, the Company measures its loss provisions in accordance with the amount equivalent to theexpected credit loss of the financial instrument in the next 12 months. The resulting increased or reversed amountof the loss provisions is included in the current profit and loss as an impairment loss or gain. For the Company’sspecific assessment of credit risk, please see details in Note IX. Risks Related to Financial Instruments”.Generally, the Company believes that the credit risk of the financial instrument has significantly increased when itexceeds 30 days after the due date, unless there is concrete evidence that the credit risk of the financial instrumenthas not increased significantly since initial recognition.Specifically, the Company divides the process of credit impairment of financial instruments of which no creditimpairment has occurred at the time of purchase or origin into three stages. There are different accountingtreatment methods for the impairment of financial instruments at different stages:
Stage one: Credit risk has not increased significantly since initial recognitionFor a financial instrument at this stage, the enterprise should measure the loss provisions according to theexpected credit losses in the next 12 months, and calculate the interest income based on its book balance (that is,without deducting provisions for impairment) and the actual interest rate (if the instrument is a financial asset, thesame below).Stage two: Credit risk has increased significantly since initial recognition but no credit impairment has occurredFor a financial instrument at this stage, the enterprise should measure the loss provisions according to theexpected credit loss of the instrument for its entire duration, and calculate the interest income based on its bookbalance and actual interest rate.Stage three: Credit impairment occurs after initial recognitionFor a financial instrument at this stage, the enterprise should measure the loss provisions based on the expectedcredit losses of the instrument for its entire duration, but the calculation of interest income is different from thefinancial assets at the previous two stages. For financial assets that have suffered credit impairment, the enterpriseshould calculate interest income based on its amortized cost (book balance minus the provisions for impairment,i.e., book value) and the actual interest rate.For financial assets that have suffered credit impairment at the time of purchase or origin, the enterprise shouldonly recognize changes in expected credit losses for the entire duration after initial recognition as loss provisions,and calculate the interest income based on its amortized cost and credit-adjusted actual interest rate.
2) The Company chooses not to compare the financial instrument with lower credit risk on the balance sheet datewith its credit risk at initial recognition, but directly makes the assumption that the credit risk of the instrumenthas not increased significantly since the initial recognition.If the enterprise confirms that the default risk of financial instruments is low, the borrower has a strong ability tofulfill its contractual cash flow obligations in the short term, and even if there are adverse changes in the economicsituation and operating environment in a longer period of time, it will not necessarily reduce the borrower’s abilityto fulfill its contractual cash flow obligations, then the financial instrument can be considered to have lower creditrisk.
3) Accounts receivable and lease receivables
The Company adopts the simplified model of expected credit loss for accounts receivables specified in“Accounting Standards for Business Enterprises No.14 - Revenue” and without containing significant financingcomponents (including the case that the financing components in contracts that do not exceed one year are notconsidered according to the standards), that is, always measures their loss provisions according to the amount ofexpected credit loss during the entire duration.The Company makes accounting policy choices for the receivables containing significant financing componentsand the lease receivables specified in “Accounting Standards for Business Enterprises No.21 - Leases”, andchooses to adopt the simplified model of expected credit losses, that is, to measure the loss provisions inaccordance with the amount of expected credit losses throughout the entire duration.
(6) Transfer of financial assets
Where the Company has transferred almost all the risks and rewards in the ownership of the financial asset to thetransferee, the recognition of the financial assets shall be terminated; where almost all risks and rewards in theownership of a financial asset are retained, the recognition of the financial assets are not terminated.
If the Group neither transfers nor retains substantially all the risks and rewards of ownership of a financial asset, itshall be accounted for as follows: the financial asset should be terminated if the Group waives control over theasset; it recognizes the financial asset to the extent of its continuing involvement in the transferred financial 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 “Guidelines on Industry Information Disclosure of Shenzhen StockExchange No. 11- Listed Company Engaged in Jewelry-related Business”Nil
11.Note receivable
The Group adopts the simplified model of expected credit loss for the accounts receivables specified in“Accounting Standards for Business Enterprises No.14 - Revenue” and without containing significant financingcomponents (including the case that the financing components in contracts that do not exceed one year are notconsidered according to the standards), that is, always measures their loss provisions according to the amount ofexpected credit loss during the entire duration, and the resulting increased or reversed amount of the loss provisionis included in the current profit and loss as an impairment loss or gain. The accrual method is as follows:
The Company divides the bills receivable into two types, i.e. bank acceptance bills and commercial acceptancebills portfolios, according to the type of financial instruments. For bank acceptance bills, the accepting bank paysthe determined amount to the taker or the bearer unconditionally due to the maturity of the bills, the overdue creditloss is low and has not increased significantly since the initial confirmation, the Company believes that the risk ofoverdue default is 0; for commercial acceptance bills, the Company believes that the probability of default isrelated to the aging, we use a simplified model of expected credit losses, that is the allowance for losses is alwaysmeasured at the amount of expected credit losses over the entire duration period. Proportion for accrual foundmore in the accounting policy and estimate for account receivable.
12. Account receivable
The Company adopts the simplified model of expected credit loss for accounts receivables specified in“Accounting Standards for Business Enterprises No.14 - Revenue” and without containing significant financingcomponents (including the case that the financing components in contracts that do not exceed one year are notconsidered according to the standards), that is, always measures their loss provisions according to the amount ofexpected credit loss during the entire duration, and the resulting increased or reversed amount of the loss provisionis included in the current profit and loss as an impairment loss or gain.
For accounts receivable that contain a significant financing component, the Company chooses to use thesimplified model of expected credit losses, that is, to always measure its loss provisions according to the amountof expected credit losses during the entire duration.
1. Simplified model of expected credit losses: always measure the loss provisions according to the amount ofexpected credit losses during the entire durationThe Company considers all reasonable and well-founded information, including estimates of expected creditlosses on accounts receivable in a single or combined manner.
(1) Account receivable with single significant amount and withdrawal single item bad debt provision
Basis or amount of judgment for account with single significant amount | Withdrawal method for bad debt provision of account receivable with single significant amount |
Receivable commercial acceptance bill, account receivable and other receivables with single amount more than 5 million yuan (including) | Carry out impairment test separately, and withdraw bad debt provision according to the difference between the present value of future cash flow and its book value |
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 |
Account age | Accrual proportion of commercial acceptance bill receivable | Withdrawing proportion of the account receivable | Withdrawing proportion of other receivable |
Within one year(one year included) | 0.3% | 0.3% | 0.3% |
1~2 years (2-year included) | 100% | 0.3% | 0.3% |
2~3 years (3-year included) | 100% | 0.3% | 0.3% |
Over 3 years | 100% | 100% | 100% |
Including: determined to be un-collectible | Write off | Write off | Write off |
Basis or amount of judgment for account with single minor amount | Withdrawal method for bad debt provision of account receivable with single minor amount |
Receivable commercial acceptance bill, account receivable and other receivables with single amount less than 5 million yuan (including), and the probability of recall is small by nature | Carry out impairment test separately, and withdraw bad debt provision according to the difference between the present value of future cash flow and its book value |
Account with single significant amount: the single receivable has over 5 million yuan at end of the periodAt the end of the period, the receivables with significant single amount are tested separately for impairment. Ifthere is objective evidence that they have been impaired, the impairment loss will be recognized and the provisionfor bad debts will be made based on the balance between the present value of future cash flows and its book value.
(2)Account receivable with bad debt provision accrual by portfolio
For the receivables with non significant single amount at the end of the period, they are divided into severalcombinations together with the receivables without impairment after independent test according to the account ageas the credit risk feature. The impairment loss is calculated and determined according to a certain proportion ofthe ending balance of these receivables combinations (impairment test can be conducted separately), and the baddebt provision is withdrawn.In addition to the receivables for which impairment provision has been separately made, the company determinesthe following proportion of provision for bad debts based on the actual loss rate of the combination of receivableswith account age as credit risk characteristics in the previous year, which is the same or similar to the receivables,in combination with the current situation:
(2) Age analysis
Account age | Accrual proportion of account receivable | Accrual proportion of other account receivable |
Within one year(one year included) | 0.3% | 0.3% |
1~2 years (2-year included) | 0.3% | 0.3% |
2~3 years (3-year included) | 0.3% | 0.3% |
Over 3 years | 100% | 100% |
Including: determined to be un-collectible | Write off | Write off |
15. Inventory
The Company shall comply with the disclosure requirement of “Guidelines on Industry Information Disclosure ofShenzhen Stock Exchange No. 11- Listed Company Engaged in Jewelry-related Business”
(1) Classification of inventory
The inventory of the Company refers to such seven classifications as the raw materials, product in process, goodson hand, wrap page, low value consumables, materials for consigned processing and goods sold.
(2) Valuation of inventories
Inventories are initially measured at cost upon acquisition, which includes procurement costs, processing costsand other costs. The prices of inventories are calculated using weighted average method when they are delivered.
(3) Provision for inventory impairment
When a comprehensive count of inventories is done at the end of the period, provision for inventory impairment isallocated or adjusted using the lower of the cost of inventory and the net realizable value. The net realizable valueof stock in inventory (including finished products, inventory merchandize and materials for sale) that can be solddirectly is determined using the estimated saleable price of such inventory deducted by the cost of sales andrelevant taxation over the course of ordinary production and operation. The net realizable value of material ininventory that requires processing is determined using the estimated saleable price of the finished productdeducted by the cost to completion, estimated cost of sales and relevant taxation over the course of ordinaryproduction and operation. The net realizable value of inventory held for performance of sales contract or laborservice contract is determined based on the contractual price; in case the amount of inventory held exceeds thecontractual amount, the net realizable value of the excess portion of inventory is calculated using the normalsaleable price.Provision for impairment is made according to individual items of inventories at the end of the period; however,for inventories with large quantity and low unit price, the provision is made by categories; inventories of productsthat are produced and sold in the same region or with the same or similar purpose or usage and are difficult to bemeasured separately are combined for provision for impairment.If the factors causing a previous write-off of inventory value has disappeared, the amount written-off is reversedand the amount provided for inventory impairment is reversed and recognized in profit or loss for the period.
(4)Inventory system
Perpetual inventory system is adopted.
16.Contract assets
Nil
17.Contract cost
Nil
18. Assets held for sale
The Company classifies such corporate components (or non-current assets) that meet the following criteria asheld-for-sale: (1) Disposable immediately under current conditions based on similar transactions for disposals ofsuch assets or practices for the disposal group; (2) Probable disposal; that is, a decision has been made on a planfor disposal and an undertaking to purchase has been obtained (the undertaking to purchase means a bindingpurchase agreement entered into by the Company and other parties, which contains transaction price, time andadequately strict punishments for breach of contract provisions, which renders the possibility of materialadjustment or revocation of the agreement is extremely minor), and the disposal is expected to be completedwithin a year. Besides, approval from relevant competent authorities or regulatory authorities has been obtained asrequired by relevant rules.
The expected net residual value of asset held for sale is adjusted by the Company to reflect its fair value lessselling expense, provided that the net amount shall not exceed the original carrying value of the asset. In case thatthe original value is higher than the adjusted expected net residual value, the difference shall be recorded in profitor loss for the period as asset impairment loss, and allowance of impairment for the asset shall be provided.Impairment loss recognized in respect of the disposal group held for sale shall be used to offset the carrying valueof the goodwill in the disposal group, and then offset the carrying value of the non-current assets within thedisposal group based on their respective proportion of their carrying value.
In respect of the non-current assets held for sale, if the net amount after their fair value less the selling expensesincreased as at the subsequent balance date, the reduced amount before will be recovered and reversed in theassets impairment loss amount recognized after being classified as held for sale, and the reversed amount will berecorded in the current profits or loss. The impairment loss on assets recognized before being classified as held forsale will not be reversed. In respect of the disposal group held for sale, if the net amount after their fair value lessthe selling expenses increased as at the subsequent balance date, the reduced amount before will be recovered andreversed in the assets impairment loss amount recognized in non-current assets after being classified as held forsale, and the reversed amount will be recorded in the current profits or loss. The reduced book value of thegoodwill as well as the impairment loss on assets recognized before the non-current assets are classified as heldfor sale will not be reversed. The subsequent reversed amount in respect of the impairment loss on assetsrecognized in the disposal group held for sale will increase the book value in proportion of the book value of eachnon-current assets (other than goodwill) in the disposal group.
In respect of loss of control in a subsidiary arising from disposal of the investment in such subsidiary, theinvestment in a subsidiary shall be classified as held for sale in its entirety in the individual financial statement of
the parent company, and all the assets and liabilities of the subsidiary shall be classified as held for sale in theconsolidated financial statement subject to that the proposed disposal of investment in the subsidiary satisfies suchconditions as required for being classified as held for sale notwithstanding part equity investment will be retainedby the Company after such disposal.
19.Debt investment
Nil
20.Other debt investment
Nil
21.Long-term account receivable
Nil
22. Long-term equity investment
(1)Determination of investment costs
1) If it is formed by the business combination under the common control, and that the combining party takes cashpayment, transfer of non-cash assets, assumption of debts or issuance of equity securities as the consolidationconsideration, the shares of the book value of the owner’s equity obtained from the combined party on the date ofcombination in the ultimate controlling party’s consolidated financial statements shall be recognized as its initialinvestment cost. Capital reserves shall be adjusted according to the balance between the initial investment cost forlong-term equity investment and the book value of paid consolidation consideration or the total face value ofissued shares (capital premium or equity premium). If capital reserves are insufficient for offset, retained earningsshall be adjusted.As for business combination under the common control realized by the Company through several transactions, theinitial investment cost of the investment shall be determined based on the share of the carrying value of theowners’ equity of the consolidated party as calculated according to the shareholding proportion on theconsolidation date. Difference between initial investment cost and the carrying value of long-term equityinvestment before combination and the sum of carrying value of newly paid consideration for additional sharesacquired on the date of combination is to adjust capital reserve (capital premium or equity premium). If thebalance of capital reserve is insufficient, any excess is adjusted to retained earnings.
2) As for long-term equity investment formed from business combination not under common control, the fairvalue of the consolidated consideration paid shall be deemed as the initial investment cost on the acquisition date.
3) Except those ones formed by the business combination, for all items obtained by means of cash payment,actually paid acquisition costs shall be taken as the initial investment cost. For those ones obtained by the issuanceof equity securities, the fair value of the issued equity securities shall be taken as the initial investment cost. Forthose ones invested by investors, the value agreed in the investment contract or agreement shall be taken as theinitial investment cost, provided that the value agreed in the contract or agreement shall be fair.
(2)Subsequent measurement and profit or loss recognition
For a long-term equity investment where the Company can exercise control over the investee, the long-terminvestment is accounted for using the cost method in the Company’s financial statements. The equity method isadopted when the Group has joint control, or exercises significant influence on the investee.Under cost method, long term equity investment is measured at initial investment cost. Except for the priceactually paid for obtaining the investment or the cash dividends or profits declared but not yet distributed which isincluded in the consideration, the Company recognizes cash dividends or profits declared by the investee ascurrent investment gains, and determine whether there is impairment on long term investment according torelevant assets impairment policies.Under equity method, when the initial investment cost of the long-term equity investment exceeds the share of fairvalue in the net identifiable assets in the investee, the difference shall be included in initial investment cost of thelong-term equity investment. When the initial investment cost is lower than the share of fair value in the netidentifiable asset in the investee, such difference is recognized in profit or loss for the period with adjustment ofcost of the long-term equity investment.Under equity method, after the Company acquires a long-term equity investment, it shall, in accordance with itsattributable share of the net profit or loss realized by the investee, recognize the investment profit or loss andadjust carrying value of the investment. The Group recognizes its share of the investee’s net profits or losses aftermaking appropriate adjustments to the investee’s net profits and losses based on the fair value of the investee’sidentifiable assets at the acquisition date, using the Group’s accounting policies and periods, and eliminating theportion of the profits or losses arising from internal transactions with its joint ventures and associates, attributableto the investing entity according to its shareholding proportion (but impairment losses for assets arising frominternal transactions shall be recognized in full). The carrying amount of the investment is reduced based on theGroup’s share of any profit distributions or cash dividends declared by the investee. The Group’s share of netlosses of the investee is recognized to the extent the carrying amount of the investment together with anylong-term interests that in substance form part of its net investment in the investee is reduced to zero, except thatthe Group has the obligations to assume additional losses. The Group adjusts the carrying amount of the long-termequity investment for any changes in owners’ equity of the investee (other than net profits or losses) and includesthe corresponding adjustments in the owners’ equity of the Group.
(3) Determination of control and significant influence on investee
Control is the power over an investee. An investor must have exposure or rights to variable returns from its
involvement with the investee, and the ability to use its power over the investee to affect the amount of theinvestor’s returns. Significant influence is the power to participate in the financial and operating policy decisionsof the investee but is not control or joint control with other parties over those policies
(4)Disposal of long-term equity investment
1) Partial disposal of long term investment in which control is retained
When long term investment is been partially disposed but control is retained by the company, the differencebetween disposal proceeds and carrying amount of the proportion being disposed is accounted for through profitor loss.
2) Partial disposal of long term investment in which control is lost
When long term investment is partially disposed and control is lost as a result, the carrying value of the long terminvest on the stock right, the difference between carrying amount of the part being disposed and disposal proceedsshould be recognized as profit or loss. The residual part should be treated as long term investment or otherfinancial assets according to their carrying amount. After partial disposal, if the company is able to exertsignificant influence or common control over the investee, the investment should be measured according to costmethod or equity method, in compliance with relevant accounting standards and regulations.
(5)Impairment test and provision for impairment
If there is objective evidence on the balance sheet date showing investment in subsidiaries, associates and jointventures is impaired, provision of impairment shall be made against the difference between the carrying amountand the recoverable amount of the investment.
23. Investment real estate
Measurement modeMeasured by cost methodDepreciation or amortization method
(1) Investment property including land use right which has been rented out, land use right which is held fortransfer upon appreciation and buildings which has been rented out.
(2) Investment properties are initially measured at cost and subsequently measured as per the cost pattern, andrelevant withdrawal of provision for depreciation or amortization is carried out by the same method for fixedassets and intangible assets. As of the balance sheet date, where there is any indication that an investment propertyexperiences impairment, the relevant impairment provision shall be provided for based on the difference betweenthe carrying value and the recoverable amount.
24. Fixed assets
(1) Recognition conditions
Fixed assets refer to the tangible assets for production of products, provision of labor, lease or operation, and witha service life in excess of one financial year.
(2) Depreciation methods
Category | Method | Years of depreciation | Scrap value rate | Yearly depreciation rate |
Housing buildings | Straight-line depreciation | 20-year | 10% | 4.5% |
Machinery equipment | Straight-line depreciation | 10-year | 10% | 9% |
Means of transportation | Straight-line depreciation | 5-year | 10% | 18% |
Electronic equipment and others | Straight-line depreciation | 5-year | 10% | 18% |
the estimated value. After completion accounting is carried out, the original estimated value should be adjusted asper the actual cost, but the provision for depreciation withdrawn should not be adjusted.
(2)As of the balance sheet date, where there is any indication that a construction in process experiencesimpairment, the relevant impairment provision shall be provided for based on the difference between the carryingvalue and the recoverable amount.
26. Borrowing expenses
Nil
27.Biological assets
Nil
28. Oil and gas asset
Nil
29.Right-of-use asset
Ni
30. Intangible assets
(1) Valuation method, service life and impairment test
1.Intangible assets include land use right, patent right and non-patent technology, which should be initiallymeasured at cost.
2.Intangible assets with limited service life should be amortized systematically and reasonably in their servicelives as per the expected form of realization economic benefits relating to the said intangible assets. If the form ofrealization cannot be reliably determined, the intangible assets should be amortized on a straight-line basis.
3.At the balance sheet date, when there is any indication that the intangible assets with finite useful lives may beimpaired, a provision for impairment loss is recognized on the excess of the carrying amounts of the assets overtheir recoverable amounts. Intangible assets with infinite useful lives and intangible assets not satisfying thecondition for use yet are subject to impairment test each year notwithstanding whether the assets are impaired.
(2) Internal accounting policies relating to research and development expendituresExpenditure incurred in the research phase of internal R&D shall be included in current gain/loss at the time of
occurrence. Intangible assets recognized for expenditure in exploitation stage by satisfying the followed at sametime: ①it is technically feasible that the intangible asset can be used or sold upon completion; ②there isintention to complete the intangible asset for use or sale; ③the intangible asset can produce economic benefits,including there is evidence that the products produced using the intangible asset has a market or the intangibleasset itself has a market; if the intangible asset is for internal use, there is evidence that there exists usage for theintangible asset; ④there is sufficient support in terms of technology, financial resources and other resources inorder to complete the development of the intangible asset, and there is capability to use or sell the intangible asset;
⑤the expenses attributable to the development phase of the intangible asset can be measured reliably.
31. Impairment of long-term assets
Nil
32. Long-term expenses to be apportioned
Long-term expenses to be apportioned are booked by actual amount occurred, and apportioned evenly during thebenefit period or regulated period.In case that the long-term deferred expenses are not likely to benefit thesubsequent accounting periods, the outstanding value of the item to be amortized shall be included in currentprofit or loss in full.
33. Contract liability
34. Employee compensation
(1) Accounting treatment for short-term compensation
During the accounting period when staff providing service to the Company, the actual short-term compensationoccurred shall recognized as liabilities and reckoned into current gains/losses or relevant assets costs. Thenon-monetary welfare is measured by fair value.
(2) Accounting treatment for post-employment benefit
The Company terminates the labor relationship with an employee before the employee labor contract expires, orproposes to offer a compensation to encourage an employee to voluntarily accept the downsizing. When theCompany cannot unilaterally withdraw the labor relationship cancellation plan or the downsizing proposal norconfirm the relevant costs of the restructuring involving the payment of termination benefits, whichever is earlier,the liabilities arising from the compensation for the termination of the labor relationship with the employees arerecognized and included in the current profit and loss.
(3) Accounting for retirement benefits
When the Company terminates the employment relationship with employees before the end of the employmentcontracts or provides compensation as an offer to encourage employees to accept voluntary redundancy, theCompany shall recognize employee compensation liabilities arising from compensation for staff dismissal andincluded in profit or loss for the current period, when the Company cannot revoke unilaterally compensation fordismissal due to the cancellation of labor relationship plans and employee redundant proposals; and the Companyrecognize cost and expenses related to payment of compensation for dismissal and restructuring, whichever isearlier.
(4) Accounting for other long-term employee benefits
The employees of the Company have participated in the basic social endowment insurance organized andimplemented by the local labor and social security department. The Company pays the endowment insurancepremium to the local basic social endowment insurance agency on a monthly basis based on the base and ratio ofthe local basic social endowment insurance payment. After the retirement of employees, the local labor and socialsecurity department has the responsibility to pay the social basic pension to the retired employees. During theaccounting period in which employees provide services, the Company recognizes the amount payable calculatedaccording to the above social security insurance regulations as the liabilities and includes them in the currentprofit and loss or related asset costs.
35.Lease liabilities
Nil
36. Accrual liability
Nil
37. Share-based payment
(1)Types of share-based payment
Share-based payment comprises of equity-settled share-based payment and cash-settled share-based payment.
(2)Determination of fair value of equity instruments
1)determined based on the price quoted in an active market if there exists active market for the instrument.
2)determined by adoption of valuation technology if there exists no active market, including by reference to therecent arm’s length market transactions between knowledgeable, willing parties, reference to the current fair valueof another instrument that is substantially the same, discounted cash flow analysis and option pricing models.
(3)Basis for determination of the best estimate of exercisable equity instruments
To be determined based on the subsequent information relating to latest change of exercisable employees.
(4)Accounting relating to implementation, amendment and termination of share-based payment schemes
1)Equity-settled share-based payment
For equity instruments that may be exercised immediately after the grant, the fair value of such instrument shall,on the date of the grant, be recognized in relevant costs or expenses with the increase in the capital reserveaccordingly. For equity-settled share-based payment made in return for the rendering of employee services thatcannot be exercised until the services are fully rendered during vesting period or specified performance targets aremet, on each balance sheet date within the vesting period, the services acquired in the current period shall, basedon the best estimate of the number of exercisable instruments, be recognized in relevant costs or expenses and thecapital reserves at the fair value of such instruments on the date of the grant.
For equity-settled share-based payment made in exchange for service from other parties, such payment shall bemeasured at the fair value of the service as of the acquisition date is the fair value can be measured reliably. And ifthe fair value of the service cannot be measured reliably while the fair value of the equity instrument can bemeasured reliably, it shall be measure at the fair value of the instrument as of the date on which the service isacquired, which shall be recorded in relevant cost or expense with increase in owners’ equity accordingly.
2)Cash-settled share-based payment
For the cash-settled share-based payment that may be exercised immediately after the grant in exchange for renderof service by employees, the fair value of the liability incurred by the Company shall, on the date of the grant, berecognized in relevant costs or expenses and the liabilities shall be increased accordingly. For cash-settledshare-based payment made in return for the rendering of employee services that cannot be exercised until theservices are fully provided during vesting period or specified performance targets are met, on each balance sheetdate within the vesting period, the services acquired in the current period shall, based on the best estimate of thenumber of exercisable instruments, be recognized in relevant costs or expenses and the corresponding liabilities atthe fair value of the liability incurred by the Company.
3)Revision and termination of share-based payment schemes
If the revision results in an increase in the fair value of the equity instruments granted, the Company shallrecognize the increase in the services rendered accordingly at the increased fair value of the equity instruments. Ifthe revision results in an increase in the number of equity instruments granted, the Company will recognize theincrease in the services rendered accordingly at the fair value of the increased number of equity instruments. If theCompany revises the vesting conditions on terms favorable to the employees, the Company will take intoconsideration of the revised vesting conditions when dealing with the vesting conditions.
If the revision results in a decrease in the fair value of the equity instruments granted, the Company shall continuerecognize the amount of services rendered accordingly at the fair value of the equity instruments on the date ofgrant without considering the decrease in the fair value of the equity instruments. If the revision results in adecrease in the number of equity instruments granted, the Company will account for such decrease by reducing
part of the cancellation of equity instruments granted. If the Company revises the vesting conditions on terms notfavorable to the employees, the Company will not take into consideration of the revised vesting conditions whendealing with the vesting conditions.
If the Company cancels the equity instruments granted or settles the equity instruments granted during the vestingperiod (other than cancellation as a result of failure to satisfy the vesting conditions), such cancellation orsettlement will be treated as accelerated exercisable rights and the original amount in the remaining vesting periodwill be recognized immediately.
38. Other financial instruments including senior shares and perpetual bondsNil
39. Revenue
The Company shall comply with the disclosure requirement of “Guidelines on Industry Information Disclosure ofShenzhen Stock Exchange No. 11- Listed Company Engaged in Jewelry-related Business”
(1) Recognition of revenue
On the starting date of the contract, the company evaluates the contract, identifies each individual performanceobligation contained in the contract, and determines whether each individual performance obligation is performedwithin a certain period of time or at a certain point in time.When meeting one of the following conditions, it belongs to the performance obligation within a certain period oftime, otherwise, it belongs to the performance obligation at a certain point in time: 1) The customer obtains andconsumes the economic benefits brought by the company's performance at the same time as the companyperforms the contract; 2) The customer can control the goods or services under construction during the company'sperformance; 3) The goods or services produced during the company's performance have irreplaceable uses, andthe company has the right to collect payments for the accumulated performance part of the contract during theentire contract period .For performance obligations performed within a certain period of time, the company recognizes revenue inaccordance with the performance progress during that period of time. When the performance progress cannot bereasonably determined, if the cost incurred is expected to be compensated, the revenue shall be recognizedaccording to the amount of the cost incurred until the performance progress can be reasonably determined. Forperformance obligations performed at a certain point in time, revenue is recognized at the point when thecustomer obtains control of the relevant goods or services. When judging whether the customer has obtainedcontrol of the goods, the company considers the following signs: 1) The company has the current right to receivepayment for the goods, that is, the customer has the current payment obligation for the goods; 2) The company hastransferred the legal ownership of the goods to the customer, that is, the customer has legal ownership of the
goods; 3) The company has transferred the product to the customer in kind, that is, the customer has physicallytaken possession of the product; 4) The company has transferred the major risks and rewards of the ownership ofthe goods to the customer, that is, the customer has obtained the main risks and rewards of the ownership of thegoods; 5) the customer has accepted the goods; 6) Other signs indicate that the customer has obtained control ofthe goods.
(2) Principles of income measurement
1) The company measures income based on the transaction price allocated to each individual performanceobligation. The transaction price is the amount of consideration that the company expects to be entitled to receivedue to the transfer of goods or services to the customer, and does not include the amount collected on behalf of athird party and the amount expected to be returned to the customer.
2) If there is variable consideration in the contract, the company shall determine the best estimate of the variableconsideration based on the expected value or the amount most likely to incur, but the transaction price includingthe variable consideration shall not exceed the amount at which the accumulatively recognized income is mostlikely not be subject to a significant reversal when the relevant uncertainty is eliminated.
3) If there is a major financing component in the contract, the company shall determine the transaction price basedon the amount payable in cash when the customer assumes control of the goods or services. The differencebetween the transaction price and the contract consideration shall be amortized by the effective interest methodduring the contract period. On the starting date of the contract, if the company expects that the interval betweenthe customer's acquisition of control of the goods or services and the customer's payment of the price will notexceed one year, we will not consider the significant financing components in the contract.
4) If the contract contains two or more performance obligations, the company will allocate the transaction pricesto each individual performance obligation in accordance with the relative proportion of the stand-alone sellingprice of the goods promised by each individual performance obligation on the commencement date of contract.
(3) Specific method of revenue recognition:
In accordance with the general principles of revenue recognition and the actual situation of the company's productsales, the company formulates a specific revenue recognition method that the products sold by the company tocustomers are recognized as revenue after the products are delivered to the customer and the customer carries outacceptance and inspection.
40. Government Grants
(1) Government grants including those relating to assets and relating to income
(2)government grant, if granted as monetary assets, are measured at the amount received or receivable, andmeasured at fair value if granted as non-monetary assets. If the fair value can not be determined reliably, theyshall be measured at nominal value.
(3) Aggregate method for government grants:
1)government grants relating to assets are recognized as deferred income, which shall be recorded in profit or lossby installment reasonably and systematically within the useful life of the assets. If assets are sold, transferred,discarded as useless or damaged prior to expiration of the useful life, the remaining deferred income undistributedshall be transferred to profit or loss for the period in which the assets are disposed.
2)If government grants relating to income are used to compensate for relevant costs or loss for the subsequentperiods, they shall be recognized as deferred income, and recorded in profit or loss for the period in which therelevant costs are recognized. If government grants relating to income are used to compensate for the relevantcosts or loss occurred, they shall be recorded in profit or loss for the period directly.
(4)Net method for government grants
1) Government grants relating to assets are used to write off the carrying value of the relevant assets;
2) If government grants relating to income are used to compensate for relevant costs or loss for the subsequentperiods, they shall be recognized as deferred income, and recorded in profit or loss for the period in which offsetagainst the relevant costs. If government grants relating to income are used to compensate for the relevant costs orloss occurred, they shall be offset against the relevant costs for the period directly.
(5)The Company adopts aggregated accounting method for the government grants received.
(6)As for the government grants comprising both portions relating to assets and income, separate accounting shallbe made for different portion; in case it is hard to differentiate the portions, the grants will be recorded as relatedto income in general.
(7)The Company realizes government grants relating to its normal activities as other income based on thesubstance of economic business, and if not related to its normal activities, realized as non-operating income andexpenditure.
(8)Subsidized loans from preferential policy obtained by the Company are classified based on whether subsidyfunds are paid to the loaning bank or directly to the Company by the competent financial authorities and aretreated based on the following principles:
1)Where subsidy funds are paid to the loaning bank by the competent financial authorities and the bank thenprovides loans to the Company at a preferential policy rate, accounting shall be made by the Company as follows:
a. Recognizes the actual borrowing amount received as the carrying value of the loan, and calculates the relevantborrowing costs based on the principal and the preferential policy rate.b.Recognizes the fair value of the loan as the carrying value and calculates the borrowing cost under effectiveinterest method, and recognizes the difference between the actual amount received and the fair value of the loan asdeferred income. Deferred income is amortized over the term of the loan under effective interest method andoffset against the relevant borrowing costs.
2)Where subsidy funds are paid directly to the Company, the Company will offset the corresponding subsidy
against the relevant borrowing expenses.
41. Deferred income tax assets/Deferred income tax liabilities
(1) Deferred tax assets or deferred tax liabilities are calculated and recognized based on the difference between thecarrying amount and tax base of assets and liabilities (and the difference of the carrying amount and tax base ofitems not recognized as assets and liabilities but with their tax base being able to be determined according to taxlaws) and in accordance with the tax rate applicable to the period during which the assets are expected to berecovered or the liabilities are expected to be settled.
(2)A deferred tax asset is recognized to the extent of the amount of the taxable income, which it is most likely toobtain and which can be deducted from the deductible temporary difference. At the balance sheet date, if there isany exact evidence that it is probable that future taxable profits will be available against which deductibletemporary differences can be utilized, the deferred tax assets unrecognized in prior periods are recognized.
(3)At the balance sheet date, the carrying amount of deferred tax assets is reviewed. The carrying amount of adeferred tax asset is reduced to the extent that it is no longer probable that sufficient taxable profits will beavailable to allow the benefit of the deferred tax asset to be utilized. Such reduction is subsequently reversed tothe extent that it becomes probable that sufficient taxable income will be available.
(4)The income tax and deferred tax for the period are treated as income tax expenses or income through profit orloss, excluding those arising from the following circumstances: ① business combination; and ② thetransactions or items directly recognized in equity.
42. Lease
(1)Accounting for operating lease
When the Company is the lessee, lease payments are recognized as cost or profit or loss with straight-line methodover the lease term. Initial expenses are recognized directly into profit or loss. Contingent rents are charged asprofit or loss in the periods in which they are incurred.When the Company is the lessor, lease income is recognized as profit or loss with straight-line method over thelease term. Initial expenses, other than those with material amount and eligible for capitalization which arerecognized as profit or loss by installments, are recognized directly as profit or loss. Contingent rents are chargedinto profit or loss in the periods in which they are incurred.
(2)Accounting for financing lease
When the company acts as lessee, at the inception of lease, the lower of fair value of leased assets at the inceptionof lease and the present value of minimum lease payment is recognized as the value of leased assets. The
minimum lease payment is recognized as the value of long-term payable. Their difference is recorded asunrecognized finance costs with any initial direct expense incurred recorded in the value of leased assets. For eachperiod of the lease term, current finance cost is calculated using effective interest method.
When the company acts as lessor, at the inception of lease, the sum of minimum lease income at the inception oflease and the initial direct expense is recognized as the value of finance lease payment receivable, with unsecuredbalance also recorded. The difference between the sum of minimum lease income, initial direct expense andunsecured balance and the sum of their present values is recognized as unrealized finance income. For each periodof the lease term, current finance income is calculated using effective interest method.
43. Other important accounting policy and estimation
Discontinued operation refers to the operation disposed or classified as held-for-sale by the Company andpresented separately under operation segments and financial statements, which has fulfilled one of the followingcriteria:
(1) it represents an independent key operation or key operating region;
(2) it is part of the proposed disposal plan on an independent key operation or proposed disposal in key operatingregion; or
(3) it only establishes for acquisition of subsidiary through disposal.
The enterprise shall separately list profit and loss from continuing operations and profit and loss fromdiscontinuing operations in the profit statement. For non-current assets held for sale or disposal groups that do notmeet the definition of discontinuing operations, the impairment losses and reversal amounts and disposal gainsand losses should be presented as profit or loss from continuing operations. Operational gains and losses anddisposal profits and losses such as impairment losses and reversal amounts of discontinuing operations should bereported as profits or losses of discontinuing operations.
44. Changes of important accounting policy and estimation
(1) Changes of important accounting policy
√ Applicable □ Not applicable
The contents and reasons of accounting policy changes | Examination and approval procedures | Note |
”Account received in advance” presented as “Contract liability” | Deliberated and approved by 24th session of 10th BOD dated 27 August 2020 | In consolidate balance sheet dated 31 December 2020, the account received in advance is shown in the amount of 0.00 yuan, the contract liability on 31 December |
2020 is shown as 16,429,964.76 yuan.
(2) Changes of important accounting estimation
□ Applicable √ Not applicable
(3)Adjustment on the relevant items of financial statement at beginning of the year when implemented thenew revenue standards and new leasing standards since 2020Applicable
Whether needs to adjust the balance sheet accounts at the beginning of the year
√Yes □No
Consolidated balance sheet
In RMB
Item | 2019-12-31 | 2020-01-01 | Adjustment |
Current assets: | |||
Monetary fund | 6,074,367.91 | 6,074,367.91 | |
Settlement provisions | |||
Capital lent | |||
Trading financial assets | |||
Derivative financial assets | |||
Note receivable | 580,000.00 | 580,000.00 | |
Account receivable | 38,616,523.93 | 38,616,523.93 | |
Receivable financing | |||
Accounts paid in advance | 938,425.99 | 938,425.99 | |
Insurance receivable | |||
Reinsurance receivables | |||
Contract reserve of reinsurance receivable | |||
Other account receivable | 740,354.71 | 740,354.71 | |
Including: Interest receivable | |||
Dividend receivable | |||
Buying back the sale of |
financial assets | |||
Inventories | 6,078,330.30 | 6,078,330.30 | |
Contract assets | |||
Assets held for sale | |||
Non-current asset due within one year | |||
Other current assets | 3,318,514.25 | 3,318,514.25 | |
Total current assets | 56,346,517.09 | 56,346,517.09 | |
Non-current assets: | |||
Loans and payments on behalf | |||
Debt investment | |||
Other debt investment | |||
Long-term account receivable | |||
Long-term equity investment | |||
Investment in other equity instrument | |||
Other non-current financial assets | |||
Investment real estate | |||
Fixed assets | 4,191,503.33 | 4,191,503.33 | |
Construction in progress | |||
Productive biological asset | |||
Oil and gas asset | |||
Right-of-use assets | |||
Intangible assets | 753,000.00 | 753,000.00 | |
Expense on Research and Development | |||
Goodwill | |||
Long-term expenses to be apportioned | |||
Deferred income tax asset | 1,042,582.16 | 1,042,582.16 |
Other non-current asset | 400,000.00 | 400,000.00 | |
Total non-current asset | 6,387,085.49 | 6,387,085.49 | |
Total assets | 62,733,602.58 | 62,733,602.58 | |
Current liabilities: | |||
Short-term loans | |||
Loan from central bank | |||
Capital borrowed | |||
Trading financial liability | |||
Derivative financial liability | |||
Note payable | |||
Account payable | 10,191,385.23 | 10,191,385.23 | |
Accounts received in advance | 1,739,953.80 | -1,739,953.80 | |
Contract liability | 1,568,550.21 | 1,568,550.21 | |
Selling financial asset of repurchase | |||
Absorbing deposit and interbank deposit | |||
Security trading of agency | |||
Security sales of agency | |||
Wage payable | 599,962.73 | 599,962.73 | |
Taxes payable | 585,062.75 | 585,062.75 | |
Other account payable | 38,175,654.98 | 38,175,654.98 | |
Including: Interest payable | |||
Dividend payable | |||
Commission charge and commission payable | |||
Reinsurance payable | |||
Liability held for sale | |||
Non-current liabilities due within one year |
Other current liabilities | 171,403.59 | 171,403.59 | |
Total current liabilities | 51,292,019.49 | 51,292,019.49 | |
Non-current liabilities: | |||
Insurance contract reserve | |||
Long-term loans | |||
Bonds payable | |||
Including: Preferred stock | |||
Perpetual capital securities | |||
Lease liability | |||
Long-term account payable | |||
Long-term wages payable | |||
Accrual liability | |||
Deferred income | |||
Deferred income tax liabilities | |||
Other non-current liabilities | |||
Total non-current liabilities | |||
Total liabilities | 51,292,019.49 | 51,292,019.49 | |
Owner’s equity: | |||
Share capital | 551,347,947.00 | 551,347,947.00 | |
Other equity instrument | |||
Including: Preferred stock | |||
Perpetual capital securities | |||
Capital public reserve | 627,834,297.85 | 627,834,297.85 | |
Less: Inventory shares | |||
Other comprehensive income | |||
Reasonable reserve |
Surplus public reserve | 32,673,227.01 | 32,673,227.01 | |
Provision of general risk | |||
Retained profit | -1,204,736,075.56 | -1,204,736,075.56 | |
Total owner’ s equity attributable to parent company | 7,119,396.30 | 7,119,396.30 | |
Minority interests | 4,322,186.79 | 4,322,186.79 | |
Total owner’ s equity | 11,441,583.09 | 11,441,583.09 | |
Total liabilities and owner’ s equity | 62,733,602.58 | 62,733,602.58 |
Item | 2019-12-31 | 2020-01-01 | Adjustment |
Current assets: | |||
Monetary fund | 1,959,804.92 | 1,959,804.92 | |
Trading financial assets | |||
Derivative financial assets | |||
Note receivable | 580,000.00 | 580,000.00 | |
Account receivable | 32,843,536.70 | 32,843,536.70 | |
Receivable financing | |||
Accounts paid in advance | 76,937.00 | 76,937.00 | |
Other account receivable | 485,062.44 | 485,062.44 | |
Including: Interest receivable | |||
Dividend receivable | |||
Inventories | 1,333,374.72 | 1,333,374.72 | |
Contract assets |
Assets held for sale | |||
Non-current asset due within one year | |||
Other current assets | 2,830,705.01 | 2,830,705.01 | |
Total current assets | 40,109,420.79 | 40,109,420.79 | |
Non-current assets: | |||
Debt investment | |||
Other debt investment | |||
Long-term account receivable | |||
Long-term equity investment | 4,235,379.73 | 4,235,379.73 | |
Investment in other equity instrument | |||
Other non-current financial assets | |||
Investment real estate | |||
Fixed assets | 3,813,708.80 | 3,813,708.80 | |
Construction in progress | |||
Productive biological asset | |||
Oil and gas asset | |||
Right-of-use assets | |||
Intangible assets | 753,000.00 | 753,000.00 | |
Expense on Research and Development | |||
Goodwill | |||
Long-term expenses to be apportioned | |||
Deferred income tax asset | |||
Other non-current asset | 400,000.00 | 400,000.00 | |
Total non-current asset | 9,202,088.53 | 9,202,088.53 | |
Total assets | 49,311,509.32 | 49,311,509.32 | |
Current liabilities: | |||
Short-term loans |
Trading financial liability | |||
Derivative financial liability | |||
Note payable | |||
Account payable | 9,002,524.60 | 9,002,524.60 | |
Accounts received in advance | 572,687.18 | -572,687.18 | |
Contract liability | 535,570.90 | 535,570.90 | |
Wage payable | 507,738.35 | 507,738.35 | |
Taxes payable | 27,797.28 | 27,797.28 | |
Other account payable | 36,803,498.12 | 36,803,498.12 | |
Including: Interest payable | |||
Dividend payable | |||
Liability held for sale | |||
Non-current liabilities due within one year | |||
Other current liabilities | 37,116.28 | 37,116.28 | |
Total current liabilities | 46,914,245.53 | 46,914,245.53 | |
Non-current liabilities: | |||
Long-term loans | |||
Bonds payable | |||
Including: Preferred stock | |||
Perpetual capital securities | |||
Lease liability | |||
Long-term account payable | |||
Long-term wages payable | |||
Accrual liability | |||
Deferred income | |||
Deferred income tax |
liabilities | |||
Other non-current liabilities | |||
Total non-current liabilities | |||
Total liabilities | 46,914,245.53 | 46,914,245.53 | |
Owner’s equity: | |||
Share capital | 551,347,947.00 | 551,347,947.00 | |
Other equity instrument | |||
Including: Preferred stock | |||
Perpetual capital securities | |||
Capital public reserve | 627,834,297.85 | 627,834,297.85 | |
Less: Inventory shares | |||
Other comprehensive income | |||
Reasonable reserve | |||
Surplus public reserve | 32,673,227.01 | 32,673,227.01 | |
Retained profit | -1,209,458,208.07 | -1,209,458,208.07 | |
Total owner’ s equity | 2,397,263.79 | 2,397,263.79 | |
Total liabilities and owner’ s equity | 49,311,509.32 | 49,311,509.32 |
VI. Taxes
1. Main tax category and tax rate
Tax category | Tax calculation evidence | Tax rate |
Value added tax | Sales of goods, taxable labor service revenue, taxable income, intangible assets income and income from property leasing | 5%, 6%, 13% |
Tax for maintaining and building cities | Turnover tax payable | 7% |
Enterprise income tax | Taxable income | 25%, 20%, 15% |
Taxpaying body | Income tax rate |
The Company | 15.00% |
Shenzhen Emmelle Industry Co., Ltd. | 25.00% |
Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd. | 20.00% |
Shenzhen Emmelle Cloud Technology Co., Ltd. | 20.00% |
VII. Notes to Items in Consolidated Financial Statements
1. Monetary fund
In RMB
Item | Ending balance | Opening balance |
Cash on hand | 21,530.26 | 89,313.66 |
Bank deposit | 19,866,447.79 | 5,979,003.60 |
Other monetary fund | 6,050.65 | |
Total | 19,887,978.05 | 6,074,367.91 |
Item | Ending balance | Opening balance |
Including: | ||
Including: |
Item | Ending balance | Opening balance |
Item | Ending balance | Opening balance |
Bank acceptance | 580,000.00 | |
Total | 580,000.00 |
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 | |||
Notes receivable of bad debt provision accrual on single basis: | 0.00 | 0.00% | 0.00 | 0.00% | 0.00 | 0.00 | 0.00% | 0.00 | 0.00% | 0.00 |
Including: | ||||||||||
Notes receivable of bad debt provision accrual on portfolio | 0.00 | 0.00% | 0.00 | 0.00% | 0.00 | 580,000.00 | 100.00% | 0.00 | 0.00% | 580,000.00 |
Including: | ||||||||||
Bank acceptance draft | 580,000.00 | 100.00% | 0.00 | 0.00% | 580,000.00 | |||||
Total | 0.00 | 0.00% | 0.00 | 0.00% | 0.00 | 580,000.00 | 100.00% | 0.00 | 0.00% | 580,000.00 |
Name | Ending balance | |||
Book balance | Bad debt provision | Accrual ratio | Accrual causes | |
Total | 0.00 | 0.00 | -- | -- |
Name | Ending balance | |||
Book balance | Bad debt provision | Accrual ratio | Accrual causes |
Name | Ending balance | ||
Book balance | Bad debt provision | Accrual ratio | |
Total | 0.00 | 0.00 | -- |
Name | Ending balance | ||
Book balance | Bad debt provision | Accrual ratio |
Explanation on portfolio basis:
If the provision for bad debts of notes receivable is made in accordance with the general model of expected credit losses, please referto the disclosure of other account receivable to disclose related information about bad-debt provisions:
□Applicable √Not applicable
(2) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
In RMB
Category | Opening balance | Current changes | Ending balance | |||
Accrual | Collected or reversal | Write off | Other | |||
Total | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Item | Amount pledged at period-end |
Total | 0.00 |
Item | Amount derecognition at period-end | Amount not derecognition at period-end |
Total | 0.00 | 0.00 |
Item | Amount transfer to account receivable at period-end |
Total | 0.00 |
drawer to perform the contract.
(6) Note receivable actually charge-off in the period
In RMB
Item | Amount charge-off |
Enterprise | Nature | Amount charge-off | Causes of charge-off | Procedure for charge-off | Amount cause by related transactions or not (Y/N) |
Total | -- | 0.00 | -- | -- | -- |
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 | 10,400,557.65 | 17.33% | 4,821,546.38 | 46.36% | 5,579,011.27 | 9,421,186.95 | 21.81% | 4,477,656.23 | 47.53% | 4,943,530.72 |
Including: | ||||||||||
Accounts with single minor amount but with bad debts provision accrued individually | 10,400,557.65 | 17.33% | 4,821,546.38 | 46.36% | 5,579,011.27 | 4,385,583.20 | 10.15% | 2,966,975.10 | 67.65% | 1,418,608.10 |
Accounts with single significant amount but with bad debts provision accrued individually | 5,035,603.75 | 11.66% | 1,510,681.13 | 30.00% | 3,524,922.62 | |||||
Account receivable | 49,601,2 | 82.67% | 148,803. | 0.30% | 49,452,41 | 33,774,31 | 78.19% | 101,322.9 | 0.30% | 33,672,993. |
with bad debt provision accrual by portfolio | 17.08 | 65 | 3.43 | 6.16 | 5 | 21 | ||||
Including: | ||||||||||
Account receivable withdrawal bad debt provision by group of credit risk characteristics (Aging analysis method) | 49,601,217.08 | 82.67% | 148,803.65 | 0.30% | 49,452,413.43 | 33,774,316.16 | 78.19% | 101,322.95 | 0.30% | 33,672,993.21 |
Total | 60,001,774.73 | 100.00% | 4,970,350.03 | 8.28% | 55,031,424.70 | 43,195,503.11 | 100.00% | 4,578,979.18 | 10.60% | 38,616,523.93 |
Name | Ending balance | |||
Book balance | Bad debt provision | Accrual ratio | Accrual causes | |
Shenzhen Jiahaosong Technology Co., Ltd. | 2,393,603.75 | 718,081.13 | 30.00% | Expected to be difficult to recover |
Shenzhen Weiterui New Energy Technology Co., Ltd. | 1,670,971.05 | 501,291.32 | 30.00% | Expected to be difficult to recover |
Sichuan Wanling Electric Technology Co., Ltd. | 1,102,072.20 | 1,102,072.20 | 100.00% | Expected to be difficult to recover |
Zhengzhou Guiguan Tech. Trade. Co., Ltd | 1,007,233.79 | 302,170.14 | 30.00% | Expected to be difficult to recover |
Suzhou Jiaxin Economic Trade Co., Ltd. | 888,757.00 | 266,627.10 | 30.00% | Expected to be difficult to recover |
Shijiazhuang Dasong Tech. Co., Ltd | 837,064.00 | 837,064.00 | 100.00% | Expected to be difficult to recover |
Dongguan Daxiang New Energy Co., Ltd. | 816,902.94 | 245,070.88 | 30.00% | Expected to be difficult to recover |
Suzhou Daming Vehicle Industry Co., Ltd. | 652,372.42 | 326,186.21 | 50.00% | Expected to be difficult to recover |
Guangdong Xinlingjia New Energy Co., Ltd. | 371,136.00 | 111,340.80 | 30.00% | Expected to be difficult to recover |
Suzhou Daming Vehicle Industry Co., Ltd. | 355,067.00 | 106,520.10 | 30.00% | Expected to be difficult to recover |
Shanghai Swen Electric Vehicle Co., Ltd. | 304,867.50 | 304,867.50 | 100.00% | Expected to be difficult to recover |
Jinan Yuxintai Sales Co., Ltd. | 510.00 | 255.00 | 50.00% | Expected to be difficult to recover |
Total | 10,400,557.65 | 4,821,546.38 | -- | -- |
Name | Ending balance | |||
Book balance | Bad debt provision | Accrual ratio | Accrual causes |
Name | Ending balance | ||
Book balance | Bad debt provision | Accrual ratio | |
Within one year (one year included) | 47,429,631.14 | 142,288.89 | 0.30% |
1-2 years (2 years included) | 2,171,585.94 | 6,514.76 | 0.30% |
Total | 49,601,217.08 | 148,803.65 | -- |
Name | Ending balance | ||
Book balance | Bad debt provision | Accrual ratio |
Account age | Book balance |
Within one year (one year included) | 47,429,631.14 |
Within one year | 47,429,631.14 |
1-2 years | 4,659,969.93 |
2-3 years | 5,668,169.96 |
Over 3 years | 2,244,003.70 |
3-4 years | 304,867.50 |
4-5 years | 1,102,072.20 |
Over 5 years | 837,064.00 |
Total | 60,001,774.73 |
Category | Opening balance | Current changes | Ending balance | |||
Accrual | Collected or reversal | Write off | Other | |||
Bad debt provision for accounts receivable | 4,578,979.18 | 593,472.35 | 202,101.50 | 4,970,350.03 | ||
Total | 4,578,979.18 | 593,472.35 | 202,101.50 | 4,970,350.03 |
Enterprise | Amount collected or reversal | Collection way |
Item | Amount charge-off |
Goods receivable | 202,101.50 |
Enterprise | Nature | Amount charge-off | Causes of charge-off | Procedure for charge-off | Amount cause by related transactions or not (Y/N) |
Shijiazhuang Dasong Tech. Co., Ltd | Goods payment | 202,101.50 | According to the debt repayment agreement, write off the uncollectible payment | Debt settlement agreement, company approval and confirmation | N |
Total | -- | 202,101.50 | -- | -- | -- |
(4) Top five account receivables collected by arrears party at ending balance
In RMB
Name | Ending balance of accounts receivable | Proportion of total closing balance of accounts receivable | Ending balance of bad bet provision |
Guangshui Jiaxu Energy Technology Co., Ltd. | 16,308,000.33 | 27.18% | 48,924.00 |
Xi’an Grom Trading Co., Ltd. | 14,082,343.94 | 23.47% | 42,247.03 |
Shenzhen Yunshang Jewelry Co., Ltd. | 5,506,110.50 | 9.18% | 16,518.33 |
Cao Chuanfu | 4,807,119.62 | 8.01% | 14,421.36 |
Chengdu Shumao Diamond Co., Ltd. | 2,903,671.06 | 4.84% | 8,711.01 |
Total | 43,607,245.45 | 72.68% |
Item | Ending balance | Opening balance |
7. Account paid in advance
(1) By account age
In RMB
Account age | Ending balance | Opening balance | ||
Amount | Ratio | Amount | Ratio | |
Within one year | 816,541.52 | 100.00% | 938,425.99 | 100.00% |
Total | 816,541.52 | -- | 938,425.99 | -- |
Enterprise | Relationship with the Company | Amount | Account age | Nature | Ratio in total advance e payment (%) |
Yunnan Shengbihe New Material Co., Ltd. | Non-related party financing | 800,000.00 | Within one year | Material fee | 97.97 |
Shenzhen Yaosheng Building Decoration Design Engineering Co., Ltd. | Non-related party financing | 15,872.50 | Within one year | Material fee | 1.94 |
Shenzhen Huamao Gold Co., Ltd. | Non-related party financing | 669.02 | Within one year | Material fee | 0.08 |
Total | 816,541.52 | 100.00 |
Item | Ending balance | Opening balance |
Other account receivable | 576,770.36 | 740,354.71 |
Total | 576,770.36 | 740,354.71 |
(1) Interest receivable
1) Category
In RMB
Item | Ending balance | Opening balance |
Borrower | Ending Balance | Overdue time | Overdue reason | Impairment (Y/N) and judgment basis |
Total | 0.00 | -- | -- | -- |
Item (or invested company) | Ending balance | Opening balance |
Item (or invested company) | Ending balance | Account age | Causes of failure for collection | Impairment (Y/N) and judgment basis |
Total | 0.00 | -- | -- | -- |
(3) Other account receivable
1) By nature
In RMB
Account nature | Ending book balance | Opening book balance |
Deposit or margin | 618,609.00 | 754,822.00 |
Payment for equipment | 311,400.00 | 311,400.00 |
Personal loan of employees | 10,396.88 | 28,060.45 |
Total | 940,405.88 | 1,094,282.45 |
Bad debt provision | Phase I | Phase II | Phase III | Total |
Expected credit losses over next 12 months | Expected credit losses for the entire duration (without credit impairment occurred) | Expected credit losses for the entire duration (with credit impairment occurred) | ||
Balance on January 1, 2020 | 353,927.74 | 0.00 | 0.00 | 353,927.74 |
January 1, 2020 balance in the current period | —— | —— | —— | —— |
--Transfer to the second stage | 0.00 | |||
-- Transfer to the third stage | 0.00 | |||
-- Reversal to the second stage | 0.00 | |||
-- Reversal to the first stage | 0.00 | |||
Accrued in this period | 9,707.78 | 9,707.78 | ||
Reversal in Current Period | 0.00 | |||
Conversion in Current Period | 0.00 | |||
Write off in this period | 0.00 | |||
Other changes | 0.00 | |||
Balance on December 31, | 363,635.52 | 0.00 | 0.00 | 363,635.52 |
2020
Change of book balance of loss provision with amount has major changes in the period
□Applicable √Not applicable
By account age
In RMB
Account age | Book balance |
Within one year (one year included) | 462,535.88 |
Within one year | 462,535.88 |
1-2 years | 62,000.00 |
2-3 years | 53,970.00 |
Over 3 years | 361,900.00 |
3-4 years | 40,200.00 |
4-5 years | 11,700.00 |
Over 5 years | 310,000.00 |
Total | 940,405.88 |
Category | Opening balance | Current changes | Ending balance | |||
Accrual | Collected or reversal | Write off | Other | |||
Bad debt provision for other receivables | 353,927.74 | 9,707.78 | 363,635.52 | |||
Total | 353,927.74 | 9,707.78 | 0.00 | 0.00 | 0.00 | 363,635.52 |
Enterprise | Amount switch-back or collection | Collection way |
Total | 0.00 | -- |
Item | Amount charge-off |
Enterprise | Nature | Amount charge-off | Causes of charge-off | Procedure for charge-off | Amount cause by related transactions or not (Y/N) |
Total | -- | 0.00 | -- | -- | -- |
Enterprise | Nature | Ending Balance | Account age | Proportion in total other account receivables at period-end | Ending balance of bad debt provision |
Shenzhen Luwei Mechatronic Equipment Co., Ltd | Payment for equipment | 300,000.00 | Over 5 years | 30.90% | 300,000.00 |
Shenzhen Gangdelong Industrial Co., Ltd. | Margin or deposit | 216,840.00 | Within one year | 23.06% | 650.52 |
Alipay (China) Network Technology Co., Ltd. customer reserve fund | Margin or deposit | 170,000.00 | Within 3 years | 18.08% | 510.00 |
Shenye Pengji (Group) Co., Ltd. | Margin or deposit | 60,222.00 | Within one year | 6.40% | 180.67 |
Shenzhen Haiyida Decoration Design Engineering Co., Ltd. | Margin or deposit | 34,550.00 | Within one year | 3.67% | 103.65 |
Total | -- | 781,612.00 | -- | 83.11% | 301,444.84 |
Enterprise | Government grants | Ending Balance | Ending account age | Time, amount and basis of amount collection |
estimated
There was no account receivable involving government subsidies at the end of the period.
7) Other account receivable derecognition due to financial assets transferNil
8) Assets and liability resulted by other account receivable transfer and continuous involvementNilOther explanation:
At the end of the period, other account receivables did not include shareholder units and other related parties holding 5% (including 5%)or more of the voting rights of the company.
9. Inventory
Whether companies need to comply with the disclosure requirements of the real estate industryNo
(1) Category
In RMB
Item | Ending balance | Opening balance | ||||
Book balance | Provision for inventory depreciation or contract performance cost impairment provision | Book value | Book balance | Provision for inventory depreciation or contract performance cost impairment provision | Book value | |
Raw materials | 1,298,565.61 | 1,298,565.61 | 2,183,259.92 | 2,183,259.92 | ||
Finished goods | 2,545,994.24 | 278,533.53 | 2,267,460.71 | 1,542,282.57 | 521,083.05 | 1,021,199.52 |
Goods sold | 5,656.40 | 5,656.40 | ||||
Consigned processing materials | 4,157,643.22 | 4,157,643.22 | 2,873,870.86 | 2,873,870.86 | ||
Total | 8,007,859.47 | 278,533.53 | 7,729,325.94 | 6,599,413.35 | 521,083.05 | 6,078,330.30 |
(2) Provision for inventory depreciation or contract performance cost impairment provision
In RMB
Item | Opening balance | Current increased | Current decreased | Ending balance | ||
Accrual | Other | Switch back or charge-off | Other | |||
Finished goods | 521,083.05 | 198,181.03 | 440,730.55 | 278,533.53 | ||
Total | 521,083.05 | 198,181.03 | 440,730.55 | 278,533.53 |
Item | Ending balance | Opening balance | ||||
Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
Total | 0.00 | 0.00 | 0.00 | 0.00 |
Item | Amount changes | Reason for change |
Total | 0.00 | —— |
Item | Accrued in this period | Switch-back in the period | Reversal/Charge-off in the period | Causes |
Total | 0.00 | 0.00 | 0.00 | -- |
Nil
11. Assets held for sale
In RMB
Item | Ending book balance | Impairment provision | Ending book value | Fair value | Expected disposal expenses | Expected disposal time |
Total | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -- |
Item | Ending balance | Opening balance |
Creditor's rights | Ending balance | Opening balance | ||||||
Face value | Coupon rate | Actual rate | Due date | Face value | Coupon rate | Actual rate | Due date | |
Total | 0.00 | —— | —— | —— | 0.00 | —— | —— | —— |
Item | Ending balance | Opening balance |
Tax credit and input tax to be certified | 2,652,771.13 | 3,188,649.68 |
Prepaid corporate income tax | 51,574.09 | 129,864.57 |
Prepaid input tax | 11,080.09 | |
Total | 2,715,425.31 | 3,318,514.25 |
Item | Ending balance | Opening balance | ||||
Book balance | Impairment | Book value | Book balance | Impairment | Book value |
provision | provision | |||||
Total | 0.00 | 0.00 | 0.00 | 0.00 |
Creditor's rights | Ending balance | Opening balance | ||||||
Face value | Coupon rate | Actual rate | Due date | Face value | Coupon rate | Actual rate | Due date | |
Total | 0.00 | —— | —— | —— | 0.00 | —— | —— | —— |
Bad debt provision | Phase I | Phase II | Phase III | Total |
Expected credit losses over next 12 months | Expected credit losses for the entire duration (without credit impairment occurred) | Expected credit losses for the entire duration (with credit impairment occurred) | ||
Balance on January 1, 2020 | 0.00 | |||
January 1, 2020 balance in the current period | —— | —— | —— | —— |
--Transfer to the second stage | 0.00 | |||
-- Transfer to the third stage | 0.00 | |||
-- Reversal to the second stage | 0.00 | |||
-- Reversal to the first stage | 0.00 | |||
Accrued in this period | 0.00 | |||
Reversal in Current Period | 0.00 | |||
Conversion in Current Period | 0.00 | |||
Write off in this period | 0.00 | |||
Other changes | 0.00 | |||
Balance on December 31, 2020 | 0.00 |
Nil
15. Other creditors’ investment
In RMB
Item | Opening Balance | Accrued interest | Change of fair value in the period | Ending Balance | Cost | Cumulative changes of fair value | Cumulative loss impairment recognized in other comprehensive income | Note |
Total | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | —— |
Other creditors’ investment | Ending balance | Opening balance | ||||||
Face value | Coupon rate | Actual rate | Due date | Face value | Coupon rate | Actual rate | Due date | |
Total | 0.00 | —— | —— | —— | 0.00 | —— | —— | —— |
Bad debt provision | Phase I | Phase II | Phase III | Total |
Expected credit losses over next 12 months | Expected credit losses for the entire duration (without credit impairment occurred) | Expected credit losses for the entire duration (with credit impairment occurred) | ||
Balance on January 1, 2020 | 0.00 | |||
January 1, 2020 balance in the current period | —— | —— | —— | —— |
--Transfer to the second stage | 0.00 | |||
-- Transfer to the third stage | 0.00 | |||
-- Reversal to the second stage | 0.00 | |||
-- Reversal to the first stage | 0.00 | |||
Accrued in this period | 0.00 | |||
Reversal in Current Period | 0.00 |
Conversion in Current Period | 0.00 | |||
Write off in this period | 0.00 | |||
Other changes | 0.00 | |||
Balance on December 31, 2020 | 0.00 |
Item | Ending balance | Opening balance | Discount rate interval | ||||
Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | ||
Total | 0.00 | 0.00 | 0.00 | 0.00 | -- |
Bad debt provision | Phase I | Phase II | Phase III | Total |
Expected credit losses over next 12 months | Expected credit losses for the entire duration (without credit impairment occurred) | Expected credit losses for the entire duration (with credit impairment occurred) | ||
Balance on January 1, 2020 | 0.00 | 0.00 | 0.00 | 0.00 |
January 1, 2020 balance in the current period | —— | —— | —— | —— |
--Transfer to the second stage | 0.00 | |||
-- Transfer to the third stage | 0.00 | |||
-- Reversal to the second stage | 0.00 | |||
-- Reversal to the first stage | 0.00 |
Accrued in this period | 0.00 | |||
Reversal in Current Period | 0.00 | |||
Conversion in Current Period | 0.00 | |||
Write off in this period | 0.00 | |||
Other changes | 0.00 | |||
Balance on December 31, 2020 | 0.00 | 0.00 | 0.00 | 0.00 |
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 | |||||||||||
Subtotal | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Total | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
18. Other equity instrument investment
In RMB
Item | Ending balance | Opening balance |
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 |
Item | Ending balance | Opening balance |
Item | Book value | Reasons for failing to complete the property rights certificate |
21. Fixed assets
In RMB
Item | Ending balance | Opening balance |
Fixed assets | 3,792,133.36 | 4,191,503.33 |
Total | 3,792,133.36 | 4,191,503.33 |
Item | Housing and buildings | Machinery equipment | Means of transportation | Electronic equipment and other | Total |
I. Original book value: | |||||
1.Opening balance | 2,959,824.00 | 1,477,691.03 | 958,593.21 | 230,136.11 | 5,626,244.35 |
2.Current increased | 18,118.82 | 18,118.82 | |||
(1) Purchase | 18,118.82 | 18,118.82 | |||
(2) Construction in process transfer-in | |||||
(3) The increase in business combination | |||||
3.Current decreased | 63,210.26 | 63,210.26 | |||
(1) Disposal or scrap | 63,210.26 | 63,210.26 | |||
4.Ending balance | 2,959,824.00 | 1,414,480.77 | 958,593.21 | 248,254.93 | 5,581,152.91 |
II. Accumulated depreciation | |||||
1.Opening balance | 466,172.28 | 217,943.02 | 586,406.73 | 164,218.99 | 1,434,741.02 |
2.Current increased | 133,192.08 | 129,547.84 | 104,557.24 | 18,048.42 | 385,345.58 |
(1) Accrual | 133,192.08 | 129,547.84 | 104,557.24 | 18,048.42 | 385,345.58 |
3.Current decreased | 31,067.05 | 31,067.05 | |||
(1) Disposal or scrap | 31,067.05 | 31,067.05 | |||
4.Ending balance | 599,364.36 | 316,423.81 | 690,963.97 | 182,267.41 | 1,789,019.55 |
III. Impairment provision | |||||
1.Opening balance | |||||
2.Current increased | |||||
(1) Accrual | |||||
3.Current decreased | |||||
(1) Disposal or scrap | |||||
4.Ending balance | |||||
IV. Book value | |||||
1.Ending book value | 2,360,459.64 | 1,098,056.96 | 267,629.24 | 65,987.52 | 3,792,133.36 |
2.Opening book value | 2,493,651.72 | 1,259,748.01 | 372,186.48 | 65,917.12 | 4,191,503.33 |
Item | Original book value | Accumulated depreciation | Impairment provision | Book value | Note |
Item | Original book value | Accumulated depreciation | Impairment provision | Book value |
(4) Fixed assets leasing-out by operational lease
In RMB
Item | Ending book value |
Item | Book value | Reasons for failing to complete the property rights certificate |
Six properties in Lianxin Garden | 2,360,459.64 | 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. |
Item | Ending balance | Opening balance |
Item | Ending balance | Opening balance |
Item | Ending balance | Opening balance |
Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
Total | 0.00 | 0.00 | 0.00 | 0.00 |
Item | Budget | Opening balance | increased in the Period | Fixed assets transfer-in in the Period | Other decreased in the Period | Ending balance | Proportion of project investment in budget | Progress | Accumulated amount of interest capitalization | including: interest capitalized amount of the year | Interest capitalization rate of the year | Source of funds |
Total | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -- | -- | 0.00 | 0.00 | 0.00% | -- |
Item | Accrual in the period | Reasons for accrual |
Total | 0.00 | -- |
Item | Ending balance | Opening balance | ||||
Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
Total | 0.00 | 0.00 | 0.00 | 0.00 |
(2) Productive biological assets measured by fair value
□Applicable √Not applicable
24. Oil and gas asset
□Applicable √Not applicable
25. Right-of-use asset
In RMB
Item | Total | |
1.Opening balance | 0.00 | |
2.Current increased | 0.00 | |
3.Current decreased | 0.00 | |
4.Ending balance | 0.00 | |
1.Opening balance | 0.00 | |
2.Current increased | 0.00 | |
(1) Accrual | 0.00 | |
3.Current decreased | 0.00 | |
(1) Disposal | 0.00 | |
4.Ending balance | 0.00 | |
1.Opening balance | 0.00 | |
2.Current increased | 0.00 | |
(1) Accrual | 0.00 | |
3.Current decreased | 0.00 | |
(1) Disposal | 0.00 | |
4.Ending balance | 0.00 | |
1.Ending book value | 0.00 | |
2.Opening book value | 0.00 |
Item | Land use right | Patent | Non-patent technology | Trademark | Total |
I. Original book value | |||||
1.Opening balance | 5,271,000.00 | 5,271,000.00 | |||
2.Current increased | |||||
(1) Purchase | |||||
(2) Internal R & D | |||||
(3) The increase in business combination | |||||
3.Current decreased | |||||
(1) Disposal | |||||
4.Ending balance | 5,271,000.00 | 5,271,000.00 | |||
II. Accumulated depreciation | |||||
1.Opening balance | 4,518,000.00 | 4,518,000.00 | |||
2.Current increased | 753,000.00 | 753,000.00 | |||
(1) Accrual | 753,000.00 | 753,000.00 | |||
3.Current decreased | |||||
(1) Disposal | |||||
4.Ending balance | 5,271,000.00 | 5,271,000.00 | |||
III. Impairment provision |
1.Opening balance | |||||
2.Current increased | |||||
(1) Accrual | |||||
3.Current decreased | |||||
(1) Disposal | |||||
4.Ending balance | |||||
IV. Book value | |||||
1.Ending book value | 0.00 | 0.00 | |||
2.Opening book value | 753,000.00 | 753,000.00 |
Item | Book value | Reasons for failing to complete the property rights certificate |
Item | Opening balance | Current increased | Current decreased | Ending balance | ||||
Internal development expenditure | Other | Confirmed as intangible assets | Transfer to current profit and loss | |||||
Total | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
28. Goodwill
(1) Original book value of goodwill
In RMB
The invested entity or items | Opening balance | Current increased | Current decreased | Ending balance | ||
Formed by business combination | Dispose | |||||
Total | 0.00 | 0.00 | 0.00 | 0.00 |
The invested entity or items | Opening balance | Current increased | Current decreased | Ending balance | ||
Accrual | Dispose | |||||
Total | 0.00 | 0.00 | 0.00 | 0.00 |
Item | Opening balance | Current increased | Amortized in the Period | Other decrease | Ending balance |
Total | 0.00 | 0.00 | 0.00 |
30. Deferred income tax assets/Deferred income tax liabilities
(1) Deferred income tax assets without offset
In RMB
Item | Ending balance | Opening balance | ||
Deductible temporary difference | Deferred income tax assets | Deductible temporary difference | Deferred income tax assets | |
Impairment provision of assets | 4,308,692.80 | 1,077,173.20 | 4,170,328.65 | 1,042,582.16 |
Total | 4,308,692.80 | 1,077,173.20 | 4,170,328.65 | 1,042,582.16 |
Item | Ending balance | Opening balance | ||
Taxable temporary differences | Deferred income tax liabilities | Taxable temporary differences | Deferred income tax liabilities | |
Total | 0.00 | 0.00 | 0.00 | 0.00 |
Item | Trade-off between the deferred income tax assets and liabilities | Ending balance of deferred income tax assets or liabilities after off-set | Trade-off between the deferred income tax assets and liabilities at period-begin | Opening balance of deferred income tax assets or liabilities after off-set |
Deferred income tax assets | 793,170.75 | 1,042,582.16 |
Item | Ending balance | Opening balance |
Total | 0.00 | 0.00 |
Year | Ending amount | Opening amount | Note |
Total | 0.00 | 0.00 | -- |
Item | Ending balance | Opening balance | ||||
Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
Advance payment for house | 400,000.00 | 0.00 | 400,000.00 | 400,000.00 | 0.00 | 400,000.00 |
Total | 400,000.00 | 0.00 | 400,000.00 | 400,000.00 | 0.00 | 400,000.00 |
Item | Ending balance | Opening balance |
Borrower | Ending Balance | Lending rate | Overdue time | Overdue rate |
Total | 0.00 | -- | -- | -- |
Item | Ending balance | Opening balance |
Including: |
Including: |
Item | Ending balance | Opening balance |
Category | Ending balance | Opening balance |
Item | Ending balance | Opening balance |
Within one year (one year included) | 8,691,337.93 | 9,575,684.30 |
1-2 years (2 years included) | 423,346.08 | 487,016.93 |
2-3 years (3 years included) | 487,016.93 | 7,099.50 |
3-4 years (4 years included) | 1,240.00 | 118,380.50 |
4-5 years (5 years included) | 2,366.00 | |
Over 5 years | 3,204.00 | 838.00 |
Total | 9,606,144.94 | 10,191,385.23 |
Item | Ending balance | Reasons of un-paid or carry-over |
Total | 0.00 | -- |
At the end of the period, there is no important accounts payable with an aging of more than one year.
37. Account received in advance
(1) Account received in advance
In RMB
Item | Ending balance | Opening balance |
Item | Ending balance | Reasons of un-paid or carry-over |
Total | 0.00 | -- |
Item | Ending balance | Opening balance |
Cooperative received in advance | 9,174,311.93 | |
Rent received in advance | 5,511,111.11 | |
Goods received in advance | 569,290.34 | 1,568,550.21 |
Total | 15,254,713.38 | 1,568,550.21 |
Item | Amount changes | Reason for change |
Cooperative received in advance | 9,174,311.93 | Receipt in advance for the second phase of Zhonghua Garden |
Rent received in advance | 5,511,111.11 | Receipt of Renhui Woodenware Rental in Advance |
Total | 14,685,423.04 | —— |
Item | Opening balance | Current increased | Current decreased | Ending balance |
I. Short-term compensation | 599,962.73 | 6,762,583.01 | 5,903,301.67 | 1,459,244.07 |
II. Post-employment benefit-Defined contribution plan | 36,187.52 | 36,187.52 | ||
Total | 599,962.73 | 6,798,770.53 | 5,939,489.19 | 1,459,244.07 |
Item | Opening balance | Current increased | Current decreased | Ending balance |
1. Wages, bonus, allowances and subsidy | 593,459.94 | 6,273,401.11 | 5,413,879.85 | 1,452,981.20 |
2. Employee benefits | 72,157.41 | 72,157.41 | ||
3. Social insurance | 169,015.58 | 169,015.58 | ||
Including: Medical insurance | 155,322.88 | 155,322.88 | ||
Work injury insurance | 396.76 | 396.76 | ||
Maternity insurance | 13,295.94 | 13,295.94 | ||
4. Housing accumulation fund | 171,624.98 | 171,624.98 | ||
5. Labor union expenditure and personnel education expense | 6,502.79 | 76,383.93 | 76,623.85 | 6,262.87 |
Total | 599,962.73 | 6,762,583.01 | 5,903,301.67 | 1,459,244.07 |
Item | Opening balance | Current increased | Current decreased | Ending balance |
1. Basic endowment insurance | 34,569.96 | 34,569.96 | ||
2. Unemployment insurance | 1,617.56 | 1,617.56 | ||
Total | 36,187.52 | 36,187.52 |
40. Taxes payable
In RMB
Item | Ending balance | Opening balance |
Value added tax | 551,216.66 | 540,203.08 |
Corporate income tax | 140,959.81 | 14,285.50 |
Individual income tax | 23,398.74 | 21,755.56 |
Tax for maintaining and building cities | 431.55 | 925.10 |
Stamp tax | 6,043.60 | 7,270.30 |
Educational surtax | 270.66 | 623.21 |
Total | 722,321.02 | 585,062.75 |
Item | Ending balance | Opening balance |
Other account payable | 37,882,805.52 | 38,175,654.98 |
Total | 37,882,805.52 | 38,175,654.98 |
Item | Ending balance | Opening balance |
Borrower | Amount overdue | Overdue reason |
Total | 0.00 | -- |
Item | Ending balance | Opening balance |
(3) Other account payable
1) By nature
In RMB
Item | Ending balance | Opening balance |
Custodian and common benefit debts | 18,728,866.44 | 18,764,512.80 |
Warranty and guarantee money | 10,589,040.00 | 11,291,325.00 |
Intercourse funds | 6,500,000.00 | 6,500,000.00 |
Other payable service charge (intermediary services included) | 832,359.55 | 876,599.88 |
Collection and payment | 654,997.35 | |
Other | 577,542.18 | 743,217.30 |
Total | 37,882,805.52 | 38,175,654.98 |
Item | Ending balance | Reasons of un-paid or carry-over |
Custodian and common benefit debts | 18,728,866.44 | |
Warranty and guarantee money | 1,580,040.00 | Performance bond |
Shenzhen Guosheng Energy Investment Development Co., Ltd. | 6,500,000.00 | Interest-free loans |
Total | 26,808,906.44 | -- |
Item | Ending balance | Opening balance |
Item | Ending balance | Opening balance |
Nil
44. Other current liabilities
In RMB
Item | Ending balance | Opening balance |
Bond | Face value | Release date | Bond period | Issuing amount | Opening balance | Issued in the Period | Accrual interest by face value | Premium/discount amortization | Paid in the Period | Ending balance | |
Total | -- | -- | -- | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Item | Ending balance | Opening balance |
Item | Ending balance | Opening balance |
Bond | Face value | Release date | Bond period | Issuing amount | Opening balance | Issued in the Period | Accrual interest by face | Premium/discount amortizati | Paid in the Period | Ending balance |
value | on | ||||||||||
Total | -- | -- | -- | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Outstanding financial instrument | Period-begin | Current increased | Current decreased | Period-end | ||||
Amount | Book value | Amount | Book value | Amount | Book value | Amount | Book value | |
Total | 0 | 0.00 | 0 | 0.00 | 0 | 0.00 | 0 | 0.00 |
Item | Ending balance | Opening balance |
Item | Ending balance | Opening balance |
Item | Ending balance | Opening balance |
Nil
(2) Special payable
In RMB
Item | Opening balance | Current increased | Current decreased | Ending balance | Causes of formation |
Total | 0.00 | 0.00 | -- |
Item | Ending balance | Opening balance |
Item | Current Period | Last Period |
Item | Current Period | Last Period |
Item | Current Period | Last Period |
Item | Ending balance | Opening balance | Causes of formation |
Nil
51. Deferred income
In RMB
Item | Opening balance | Current increased | Current decreased | Ending balance | Causes of formation |
Total | 0.00 | 0.00 | -- |
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 |
Item | Ending balance | Opening balance |
Opening balance | Changes in the period (+, -) | Ending balance | |||||
New shares issued | Bonus share | Shares transferred from capital reserve | Other | Subtotal | |||
Total shares | 551,347,947.00 | 551,347,947.00 |
(2) Changes of outstanding preferred stock and perpetual capital securities at period-end
In RMB
Outstanding financial instrument | Period-begin | Current increased | Current decreased | Period-end | ||||
Amount | Book value | Amount | Book value | Amount | Book value | Amount | Book value | |
Total | 0 | 0 | 0.00 | 0 | 0.00 | 0 |
Item | Opening balance | Current increased | Current decreased | Ending balance |
Other capital reserve | 627,834,297.85 | 627,834,297.85 | ||
1. Debt restructuring income | 482,580,588.23 | 482,580,588.23 | ||
2.Other | 145,253,709.62 | 145,253,709.62 | ||
Total | 627,834,297.85 | 627,834,297.85 |
Item | Opening balance | Current increased | Current decreased | Ending balance |
Total | 0.00 | 0.00 |
Item | Opening balance | Current Period | Ending balance | |||||
Account before income tax | Less: written in other comprehensi | Less: written in other | Less: income tax expense | Belong to parent company | Belong to minority shareholders |
in the period | ve income in previous period and carried forward to gains and losses in current period | comprehensive income in previous period and carried forward to retained earnings in current period | after tax | after tax | ||||
Total other comprehensive income | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Item | Opening balance | Current increased | Current decreased | Ending balance |
Total | 0.00 | 0.00 |
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 | 0.00 | 0.00 | 32,673,227.01 |
Item | Current period | Last Period |
Retained profit at period-end before adjustment | -1,204,736,075.56 | -1,197,549,169.92 |
Retained profit at period-begin after adjustment | -1,204,736,075.56 | -1,197,549,169.92 |
Add: net profit attributable to shareholders of parent company for this year | 3,785,834.68 | -7,186,905.64 |
Retained profit at period-end | -1,200,950,240.88 | -1,204,736,075.56 |
Item | Current Period | Last Period | ||
Revenue | Cost | Revenue | Cost | |
Main business | 108,929,796.13 | 100,882,228.24 | 71,095,404.57 | 67,928,471.12 |
Other business | 8,927,684.04 | 2,339,395.49 | 4,927,283.18 | 753,000.00 |
Total | 117,857,480.17 | 103,221,623.73 | 76,022,687.75 | 68,681,471.12 |
Contract type | 1# Division | 2# Division | Total | |
Product type | 87,064,073.74 | 30,793,406.43 | 117,857,480.17 | |
Including: | ||||
Jewelry Gold | 87,064,073.74 | 87,064,073.74 | ||
Bicycle lithium battery materials and other | 30,793,406.43 | 30,793,406.43 | ||
Including: | ||||
Including: | ||||
Including: | ||||
Including: | ||||
Including: | ||||
Including: | ||||
Total | 87,064,073.74 | 30,793,406.43 | 117,857,480.17 |
NilInformation relating to the transaction price assigned to the remaining performance obligation:
The amount of revenue corresponding to performance obligation that have been signed but have not been fulfilled or have not beenfulfilled at the end of the period was 0.00 Yuan, including 0.00 Yuan is expected to be recognized as revenue in subsequent years,
0.00 Yuan is expected to be recognized as revenue in subsequent years, 0.00 Yuan is expected to be recognized as revenue insubsequent years.Other explanationNil
62. Tax and extras
In RMB
Item | Current Period | Last Period |
Tax for maintaining and building cities | 34,962.95 | 4,714.10 |
Educational surtax | 24,973.54 | 8,179.47 |
Stamp tax | 46,243.90 | 44,621.80 |
Other | 1,889.84 | 1,889.84 |
Total | 108,070.23 | 59,405.21 |
Item | Current Period | Last Period |
Employee compensation | 1,078,110.71 | 1,301,441.35 |
Marketing promotion fees | 1,193,544.17 | 792,290.55 |
Business entertainment | 17,031.00 | 52,516.39 |
Business travel expenses | 133,656.78 | 421,922.06 |
Lease fee | 3,834.00 | 433,292.57 |
Other | 114,480.37 | 177,013.47 |
Total | 2,540,657.03 | 3,178,476.39 |
Item | Current Period | Last Period |
Employee compensation | 2,152,793.42 | 2,579,922.45 |
Intermediary service fee | 1,427,424.80 | 3,149,023.50 |
Daily management expenses | 911,300.72 | 327,050.29 |
Depreciation and amortization | 292,089.38 | 353,469.35 |
Total | 4,783,608.32 | 6,409,465.59 |
Item | Current Period | Last Period |
Employee compensation and benefits | 1,675,573.59 | 1,409,100.34 |
Direct input | 368,483.15 | 763,338.82 |
Factory rent and utilities | 178,534.58 | 553,243.59 |
Depreciation of fixed assets | 93,256.20 | 23,144.40 |
Other | 191,030.05 | 4,450.57 |
Total | 2,506,877.57 | 2,753,277.72 |
Item | Current Period | Last Period |
Interest income | -89,977.25 | -110,834.04 |
Commission charge etc. | 20,827.96 | 15,432.87 |
Other | 87,868.03 | |
Total | 18,718.74 | -95,401.17 |
Sources | Current Period | Last Period |
Processing fee from individual tax refund | 10,207.52 |
Item | Current Period | Last Period |
Item | Current Period | Last Period |
Sources | Current Period | Last Period |
Item | Current Period | Last Period |
Bad debt loss of other account receivable | -9,707.78 | -39,386.50 |
Bad debt losses of accounts receivable | -593,472.35 | -2,493,679.37 |
Total | -603,180.13 | -2,533,065.87 |
Item | Current Period | Last Period |
II. Loss of inventory falling price and loss of contract performance cost impairment | -198,181.03 | -499,175.17 |
Total | -198,181.03 | -499,175.17 |
Sources | Current Period | Last Period |
Dispose income of fixed assets | 24,936.44 |
Item | Current Period | Last Period | Amount reckoned in current non-recurring gains/losses |
Government subsidy | 100,000.00 | 100,000.00 | |
Other | 6,442,649.75 | 6,259,839.85 | 6,442,649.75 |
Total | 6,542,649.75 | 6,259,839.85 | 6,542,649.75 |
Government grants | Issuing subject | Offering causes | Nature | Subsidy impact current gains/losses (Y/N) | The special subsidy (Y/N) | Amount in the Period | Amount in last period | Assets-related/income-related |
Anti-epidemic subsidies | Government | Subsidy |
N | N | 100,000.00 | 0.00 | Income-related |
2. Non-operation revenue in current period mainly due to the rental revenue settle with the custodian, that is 5,662,149.79 Yuan andcompensation of 312,266.98 Yuan;
75. Non-operating expenses
In RMB
Item | Current Period | Last Period | Amount reckoned in current non-recurring gains/losses |
Litigation compensation, liquidated damages and late fees, etc. | 498,050.00 | 188.00 | 498,050.00 |
Loss of old trademark scrap | 461,858.18 | ||
Other | 5,190,229.29 | 5,603,102.65 | 5,190,229.29 |
Total | 5,688,279.29 | 6,065,148.83 | 5,688,279.29 |
Item | Current Period | Last Period |
Current income tax expense | 140,959.81 | 14,285.50 |
Deferred income tax expense | 249,411.41 | -1,960.98 |
Total | 390,371.22 | 12,324.52 |
Item | Current Period |
Total Profit | 4,766,077.81 |
Income tax measured by statutory/applicable tax rate | 714,911.66 |
The impact of applying different tax rates to subsidiaries | -191,529.43 |
Impact on cost, expenses and losses that unable to deducted | 67,265.94 |
Impact by the deductible losses of the un-recognized previous deferred income tax | -357,710.57 |
Impact on deductible temporary differences or losses deductible which was un-recognized as deferred income tax assets | 387,397.65 |
The impact of R&D deductions | -229,964.03 |
Income tax expenses | 390,371.22 |
Item | Current Period | Last Period |
Interest, rent, utilities, etc. | 10,999,135.69 | 6,348,431.90 |
Item cooperation | 10,000,000.00 | |
Deposits and guarantees received | 7,388,109.00 | 1,916,551.74 |
Government subsidy and individual tax handling fee refund | 110,207.52 | |
Other | 26,834.21 | 150,980.41 |
Total | 28,524,286.42 | 8,415,964.05 |
Item | Current Period | Last Period |
Expenses such as rent and property management maintenance fees | 5,190,228.77 | 5,203,779.09 |
Sales, management and R&D expenses | 1,770,529.68 | 4,452,767.97 |
Deposits and security deposits paid | 6,902,256.00 | 363,930.00 |
Litigation compensation, liquidated damages and late fees, etc. | 498,050.00 | |
Handling expenses | 20,827.96 | 15,432.87 |
Other current accounts | 1,232,265.94 |
Other | 71,445.29 | 151,193.17 |
Total | 14,453,337.70 | 11,419,369.04 |
Item | Current Period | Last Period |
Item | Current Period | Last Period |
Item | Current Period | Last Period |
Bill margin received | 2,000,000.00 | |
Total | 2,000,000.00 |
Item | Current Period | Last Period |
Supplementary information | Current period | Last Period |
1. Net profit adjusted to cash flow of operation activities: | -- | -- |
Net profit | 4,375,706.59 | -7,813,881.65 |
Add: Assets impairment provision | 801,361.16 | 3,032,241.04 |
Depreciation of fixed assets, consumption of oil assets and depreciation of productive biology assets | 385,345.58 | 376,613.75 |
Depreciation of right-of-use assets | ||
Amortization of intangible assets | 753,000.00 | 753,000.00 |
Amortization of long-term deferred expenses | ||
Loss from disposal of fixed assets, intangible assets and other long-term assets (gain is listed with “-”) | -24,936.44 | |
Losses on scrapping of fixed assets (gain is listed with “-”) | ||
Gain/loss of fair value changes (gain is listed with “-”) | ||
Financial expenses (gain is listed with “-”) | ||
Investment loss (gain is listed with “-”) | ||
Decrease of deferred income tax asset ((increase is listed with “-”) | 249,411.41 | -1,960.98 |
Increase of deferred income tax liability (decrease is listed with “-”) | ||
Decrease of inventory (increase is listed with “-”) | -1,849,176.67 | -4,190,901.53 |
Decrease of operating receivable accounts (increase is listed with “-”) | -15,548,865.13 | -808,843.28 |
Increase of operating payable accounts (decrease is listed with “-”) | 14,800,382.46 | -5,138,208.69 |
Other | ||
Net cash flows arising from operating activities | 3,942,228.96 | -13,791,941.34 |
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 | 19,887,978.05 | 6,074,367.91 |
Less: Balance of cash equivalent at year-begin | 6,074,367.91 | 16,488,886.26 |
Add: Balance at year-end of cash equivalents | ||
Less: Balance at year-begin of cash equivalents | ||
Net increase of cash and cash equivalents | 13,813,610.14 | -10,414,518.35 |
Amount | |
Including: | -- |
Including: | -- |
Including: | -- |
Amount | |
Including: | -- |
Including: | -- |
Including: | -- |
Item | Ending balance | Opening balance |
I. Cash | 19,887,978.05 | 6,074,367.91 |
Including: Cash on hand | 21,530.26 | 89,313.66 |
Bank deposit available for payment at any time | 19,866,447.79 | 5,979,003.60 |
Other monetary fund available for payment at any time | 6,050.65 | |
Ⅲ. Balance of cash and cash equivalent at period-end | 19,887,978.05 | 6,074,367.91 |
Item | Ending book value | Restriction reasons |
Total | 0.00 | -- |
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 | |||
Category | Amount | Item | Amount reckoned into current gains/losses |
Anti-epidemic subsidies | 100,000.00 | Non-operating income | 100,000.00 |
VIII. Changes of consolidation range
1. Enterprise combined under different control
(1) Enterprise combined under different control in the Period
In RMB
Acquiree | Time point for equity obtained | Cost of equity obtained | Ratio of equity obtained | Acquired way Equity obtained way | Purchasing date | Standard to determine the purchasing date | Income of acquiree from purchasing date to period-end | Net profit of acquiree from purchasing date to period-end |
Combination cost |
Fair value on purchasing date | Book value on purchasing date |
the Period or not
□Yes √No
(5) On purchasing date or period-end of the combination, combination consideration or fair value ofidentifiable assets and liability for the acquiree are un-able to confirm rationallyNil
(6) Other explanation
Nil
2. Enterprise combine under the same control
(1) Enterprise combined under the same control in the Period
In RMB
Combined party | Equity ratio obtained in combination | Basis of combined under the same control | Combination date | Standard to determine the combination date | Income of the combined party from period-begin of combination to the combination date | Net profit of the combined party from period-begin of combination to the combination date | Income of the combined party during the comparison period | Net profit of the combined party during the comparison period |
Combination cost |
Combination date | At end of last period |
3. Counter purchase
Basic transaction information, basis of counter purchase, whether making up business due to the assets and liability reserved by listedcompany and basis, determination of combination cost, amount and calculation on adjusted equity by equity transaction
4. Subsidiary disposal
Whether lost controlling rights while dispose subsidiary on one time or not
□ Yes √ No
Whether lost controlling rights in the Period while dispose subsidiary on two or more steps or not
□ Yes √ No
5. Other reasons for consolidation range changed
Reasons for changed on consolidation range (such as new subsidiary established, subsidiary liquidated etc.)And relevant informationOn 21 July 2020, subsidiary Shenzhen Emmelle Industrial Co., Ltd contributes 70% and Shenzhen Zhenbangda Technology Co., Ltdcontributes 30% together to established the Shenzhen Emmelle Cloud Technology Co., Ltd. The enterprise was included inconsolidate statement scope since the date of established.
6. Other
NilIX. Equity in other entity
1. Equity in subsidiary
(1) Constitute of enterprise group
Subsidiary | Main operation place | Registered place | Business nature | Share-holding ratio | Acquired way | |
Directly | Indirectly | |||||
Shenzhen Emmelle Industry Co., Ltd. | Shenzhen | Shenzhen | Sales of bicycles and spare parts | 70.00% | Investment | |
Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd. | Shenzhen | Shenzhen | Jewelry, diamonds, gold sales | 65.00% | Investment | |
Shenzhen Emmelle Cloud Technology Co., | Shenzhen | Shenzhen | Software and information technology | 49.00% | Investment |
Ltd. | service sales |
Subsidiary | Share-holding ratio of minority | Gains/losses attributable to minority in the Period | Dividend announced to distribute for minority in the Period | Ending equity of minority |
Shenzhen Emmelle Industry Co., Ltd. | 30.00% | -361,173.21 | 1,593,074.01 | |
Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd. | 35.00% | 945,115.60 | 12,538,055.17 | |
Shenzhen Emmelle Cloud Technology Co., Ltd. | 51.00% | 5,929.52 | 605,929.52 |
Subsidiary | Ending balance | Opening balance | ||||||||||
Current assets | Non-current | Total assets | Current liability | Non-current | Total liabilities | Current assets | Non-current | Total assets | Current liability | Non-current | Total liabilities |
assets | liability | assets | liability | |||||||||
Shenzhen Emmelle Industry Co., Ltd. | 12,402,502.99 | 2,418,250.69 | 14,820,753.68 | 9,510,506.99 | 0.00 | 9,510,506.99 | 15,468,811.90 | 1,418,415.71 | 16,887,227.61 | 10,373,070.21 | 0.00 | 10,373,070.21 |
Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd. | 44,211,849.29 | 36,552.02 | 44,248,401.31 | 9,832,529.38 | 0.00 | 9,832,529.38 | 8,696,935.06 | 1,960.98 | 8,698,896.04 | 1,933,354.41 | 0.00 | 1,933,354.41 |
Shenzhen Emmelle Cloud Technology Co., Ltd. | 2,037,694.53 | 0.00 | 2,037,694.53 | 26,068.02 | 0.00 | 26,068.02 |
Subsidiary | Current Period | Last Period | ||||||
Operation revenue | Net profit | Total comprehensive income | Cash flow from operation activity | Operation revenue | Net profit | Total comprehensive income | Cash flow from operation activity | |
Shenzhen Emmelle Industry Co., Ltd. | 3,160,952.74 | -1,203,910.71 | -1,203,910.71 | -1,652,170.89 | 15,470,013.00 | -2,399,718.61 | -2,399,718.61 | -6,376,002.30 |
Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd. | 87,064,073.74 | 2,700,330.30 | 2,700,330.30 | -18,103,601.17 | 4,619,038.46 | 265,541.63 | 265,541.63 | -5,608,748.24 |
Shenzhen Emmelle Cloud Technology Co., Ltd. | 952,935.51 | 11,626.51 | 11,626.51 | -117,837.47 |
Nil
(4) Major restriction on using corporate assets and liquidate corporate debtsNil
(5) Financial or other supporting provided to structuring entity that included in consolidated financialstatementNilOther explanation:
Nil
2. Transaction that has owners equity shares changed in subsidiary but still with controlling rights
(1) Owners equity shares changed in subsidiary
Nil
(2) Impact on minority’s interest and owners’ equity attributable to parent company
In RMB
Joint venture or associated enterprise | Main operation place | Registered place | Business nature | Share-holding ratio | Accounting treatment | |
Directly | Indirectly |
Ending balance/Current Period | Opening balance/Last Period | |
Ending balance/Current Period | Opening balance/Last Period | |
Ending balance/Current Period | Opening balance/Last Period | |
Joint venture: | -- | -- |
Total numbers measured by share-holding ratio | -- | -- |
Associated enterprise: | -- | -- |
Total numbers measured by share-holding ratio | -- | -- |
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 |
(7) Un-confirmed commitment with investment concerned with joint ventureNil
(8) Contingent liability with investment concerned with joint venture or associated enterpriseNil
4. Co-runs operation
Name | Main operation place | Registered place | Business nature | Share-holding ratio/share enjoyed | |
Directly | Indirectly |
(1) Credit risk
Credit risk represents the risk of financial loss suffered by a party to a financial instrument due to failure of performance obligation ofanother party.Credit risk of the Company is managed by category. Credit risk mainly arises from bank deposits and trade receivables. Since thebank deposits of the Company are mainly placed with those banks of high credit rating, the Company expects no significant creditrisk on bank deposits.As for trade receivables, the Company establishes relevant policies to control credit risk exposure. The Company, based on financialposition of debtors, their credit records, market conditions and other factors, makes assessment on debtors’ credit quality and setsrelevant limit on amount of debt and credit term. The maximum credit risk exposure assumed by the Company equals to the sum ofcarrying value of every financial asset in the balance sheet. The Company provides no guarantee that may lead it to be exposed tocredit risks.
(2) Liquidity risk
Liquidity risk refers to the risk of capital shortage of the Company when performing settlement obligation via delivery of cash orother financial assets.When managing liquidity risk, the Company maintains and monitors such cash and cash equivalents as deemed adequate by themanagement, so as to satisfy its operation needs and minimize influence of fluctuation of cash flow. Management of the Companymonitors application of bank borrowings to make sure it complies with relevant borrowing agreements.
2. Capital management
The capital management policy of the Company is designed to ensure sustainable operation Of the Company so as to bringshareholders return and benefit other stakeholders, and to minimize capital cost by maintaining optimal capital structure.In order to maintain and adjust capital structure, the Company may adjust share dividend paid to shareholders or issue new shares.The Company monitors capital structure based on gearing ratio (total liabilities divided by total assets). As at 31 December 2020, thegearing ratio of the Company was 72.05% (31 December 2019: 81.76%)XI. Disclosure of fair value
1. Ending fair value of the assets and liabilities measured by fair value
In RMB
Item | Ending fair value | |||
First-order | Second-order | Third-order | Total | |
I. Sustaining measured by fair value | -- | -- | -- | -- |
II. Non-sustaining measured by fair value | -- | -- | -- | -- |
2. Recognized basis for the market price sustaining and non-persistent measured by fair value onfirst-orderNil
3. Valuation technique and qualitative and quantitative information on major parameters for the fair valuemeasure sustaining and non-persistent on second-orderNil
4. Valuation technique and qualitative and quantitative information on major parameters for the fair valuemeasure sustaining and non-persistent on third-orderNil
5. Adjustment information and sensitivity analysis of unobservable parameters for the fair value measuresustaining and non-persistent on third-orderNil
6. Sustaining items measured by fair value, as for the conversion between at all levels, reasons forconversion and policy for conversion time pointNil
7. Changes of valuation technique in the Period
Nil
8. Financial assets and liability not measured by fair value
Nil
9. Other
NilXII. Related party and related transactions
1. Parent company of the enterprise
Parent company | Registered place | Business nature | Registered capital | Share-holding ratio on the enterprise for parent company | Voting right ratio on the enterprise |
Explanation on parent company of the enterpriseThe Company has no parent company so far
Ultimate controller of the Company: nilOther explanation:
Controlling shareholder and actual controller of the Company have changed on 20 February 2017. Before changed, the first majorityshareholder of the Company was Shenzhen Guosheng Energy Investment Development Co., Ltd., actual controller was Mr. Ji Hanfei;the Company has no actual controller and controlling shareholder after changed. Found more in the Annual Report 2016 released on27 April 2017 and “Reply on Surveillance Attention Letter on CBC from Shenzhen Stock Exchange” released on 26 May 2017
2. Subsidiary of the Enterprise
Found more in Note IX-1
3. Associated enterprise and joint venture
Found more in Note IX-3Other associated enterprise and joint venture that have related transaction with the Company in the Period or occurred in previousperiod
Joint venture or associated enterprise | Relationship with the Company |
Other related party | Relationship with the Company |
Shenzhen Huahui Tongda Industrial Co., Ltd. | Supervisor of the Company Li Jialin is the legal person of the enterprise |
Shenzhen Zuanjinsen Jewelry Co., Ltd. | Subsidiary Xinsen Jewelry Shareholder |
Shenzhen Guosheng Energy Investment Development Co., Ltd. | The first majority shareholder |
Related party | Transaction content | Current Period | Approved transaction amount | Whether more than the transaction amount | Last Period |
Shenzhen Zuankinson Jewelry and Gold Supply Chain Co., Ltd. | Purchase of raw materials | 0.00 | No | 2,428,035.40 |
Related party | Transaction content | Current Period | Last Period |
Shenzhen Huahui Tongda Industrial Co., Ltd. | Sales of goods | 18,409.04 |
Client/ contract-out party | Entrusting party/ contractor | Assets type | Starting date | Maturity date | Yield pricing basis | Income from trusteeship/contract |
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 |
Lessee | Assets type | Lease income in recognized in the Period | Lease income in recognized last the Period |
Lessor | Assets type | Lease income in recognized in the Period | Lease income in recognized last the Period |
Secured party | Amount guarantee | Starting date | Maturity date | Guarantee completed (Y/N) |
Guarantor | Amount guarantee | Starting date | Maturity date | Guarantee completed (Y/N) |
Related party | Borrowed funds | Starting date | Due date | Note |
Borrowing | ||||
Lending |
Related party | Transaction content | Current Period | Last Period |
Item | Current Period | Last Period |
Remuneration of key manager | 1,600,350.50 | 1,439,685.05 |
holding subsidiary of the Company, planned to purchase raw materials and sell goods to Shenzhen Zuankinson Jewelry and Gold Co.,Ltd., it was estimated that the total amount of daily related transactions in the next 12 months would not exceed 10 million yuan (asingle transaction amount would not exceed 3 million yuan). The total amount of related transactions between the company'ssubsidiary and Shenzhen Zuankinson Jewelry and Gold Co., Ltd. in 2019 was 2.75 million yuan, and there were no relatedtransactions during the reporting period. As of the reporting period, the total amount of the related transactions quota was 2.75million yuan, which did not exceed the announced quota.
b. Fuzhou Zuankinson Jewelry Co., Ltd.,a wholly-owned subsidiary of Shenzhen Zuankinson Jewelry and Gold Supply Chain Co.,Ltd. which is a shareholder of Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd.,a subsidiary of the Company, participated insubscribing to the Company’s non-public offering of shares, paid performance bond of 2 million yuan to the Company during thereporting period.
6. Receivable/payable items of related parties
(1) Receivable item
In RMB
Item | Related party | Ending balance | Opening balance | ||
Book balance | Bad debt provision | Book balance | Bad debt provision | ||
Other current assets | Shenzhen Zuankinson Jewelry and Gold Supply Chain Co., Ltd. | 301,754.90 |
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 |
2. Share-based payment settled by equity
□Applicable √Not applicable
3. Share-based payment settled by cash
□Applicable √Not applicable
4. Revised and termination on share-based payment
Nil
5. Other
Nil
XIV. Commitment or contingency
1. Important commitments
Important commitments in balance sheet dateNil
2. Contingency
(1) Contingency on balance sheet date
Nil
(2) For the important contingency not necessary to disclosed by the Company, explained reasonsThe Company has no important contingency that need to disclosed
3. Other
NilXV. Events after balance sheet date
1. Important non-adjustment items
In RMB
Item | Content | Impact on financial status and operation results | Reasons on un-able to estimated the impact number |
2. Profit distribution
In RMB
3. Sales return
Nil
4. Other events after balance sheet date
NilXVI. Other important events
1. Previous accounting errors collection
(1) Retrospective restatement
In RMB
Correction content | Treatment procedures | Impact items of statement during a comparison | Cumulative impacted number |
Correction content | Approval procedures | Reasons for prospective application adopted |
5. Discontinued operations
In RMB
Item | Revenue | Expenses | Total Profit | Income tax expenses | Net profit | Discontinued operations profit attributable to owners of parent company |
Item | Jewelry Gold Business Division | Bicycle lithium battery materials and other business segments | Offset between segments | Total |
Main business income | 87,064,073.74 | 30,793,406.43 | 117,857,480.17 | |
Main business cost | 80,940,595.81 | 22,281,027.92 | 103,221,623.73 | |
The total profit | 2,806,062.52 | 1,960,015.29 | 4,766,077.81 | |
Income tax expense | 105,732.22 | 284,639.00 | 390,371.22 | |
Net profit | 2,700,330.30 | 1,675,376.29 | 4,375,706.59 | |
Total assets | 44,248,401.31 | 67,454,748.41 | 19,960,379.73 | 91,742,769.99 |
Total liabilities | 9,832,529.38 | 56,267,950.93 | 66,100,480.31 | |
Shareholders' equity Total | 34,415,871.93 | 11,186,797.48 | 19,960,379.73 | 25,642,289.68 |
(3) The Company has no reportable segments, or unable to disclose total assets and total liability forreportable segments, explain reasons
Nil
(4) Other explanation
Nil
7. Major transaction and events makes influence on investor’s decision
Nil
8. Other
NilXVII. Principle notes of financial statements of parent company
1. Account receivable
(1) By category
In RMB
Category | Ending balance | Opening balance | ||||||||
Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
Amount | Ratio | Amount | Accrual ratio | Amount | Ratio | Amount | Accrual ratio | |||
Account receivable with bad debt provision accrual by single basis | 7,503,671.53 | 28.23% | 2,251,101.47 | 30.00% | 5,252,570.06 | 6,975,081.75 | 19.92% | 2,092,524.53 | 30.00% | 4,882,557.22 |
Including: | ||||||||||
Accounts with single minor amount but with bad debts provision accrued individually | 7,503,671.53 | 28.23% | 2,251,101.47 | 30.00% | 5,252,570.06 | 1,939,478.00 | 5.54% | 581,843.40 | 30.00% | 1,357,634.60 |
Accounts receivable with a significant single amount but a separate provision for | 5,035,603.75 | 14.38% | 1,510,681.13 | 30.00% | 3,524,922.62 |
bad debts | ||||||||||
Account receivable with bad debt provision accrual by portfolio | 19,079,604.72 | 71.77% | 57,238.82 | 0.30% | 19,022,365.90 | 28,045,114.82 | 80.08% | 84,135.34 | 0.30% | 27,960,979.48 |
Including: | ||||||||||
Account receivable withdrawal bad debt provision by group of credit risk characteristics (Aging analysis method) | 19,079,604.72 | 71.77% | 57,238.82 | 0.30% | 19,022,365.90 | 28,045,114.82 | 80.08% | 84,135.34 | 0.30% | 27,960,979.48 |
Total | 26,583,276.25 | 100.00% | 2,308,340.29 | 8.68% | 24,274,935.96 | 35,020,196.57 | 100.00% | 2,176,659.87 | 6.22% | 32,843,536.70 |
Name | Ending balance | |||
Book balance | Bad debt provision | Accrual ratio | Accrual causes | |
Shenzhen Jiahaosong Technology Co., Ltd. | 2,393,603.75 | 718,081.13 | 30.00% | Expected to be difficult to recover |
Shenzhen Weiterui New Energy Technology Co., Ltd. | 1,670,971.05 | 501,291.32 | 30.00% | Expected to be difficult to recover |
Zhengzhou Guiguan Tech. Trade. Co., Ltd | 1,007,233.79 | 302,170.14 | 30.00% | Expected to be difficult to recover |
Dongguan Daxiang New Energy Co., Ltd. | 816,902.94 | 245,070.88 | 30.00% | Expected to be difficult to recover |
Suzhou Jiaxin Economic Trade Co., Ltd. | 888,757.00 | 266,627.10 | 30.00% | Expected to be difficult to recover |
Guangdong Xinlingjia New Energy Co., Ltd. | 371,136.00 | 111,340.80 | 30.00% | Expected to be difficult to recover |
Suzhou Daming Vehicle Industry Co., Ltd. | 355,067.00 | 106,520.10 | 30.00% | Expected to be difficult to recover |
Total | 7,503,671.53 | 2,251,101.47 | -- | -- |
Name | Ending balance |
Book balance | Bad debt provision | Accrual ratio | Accrual causes |
Name | Ending balance | ||
Book balance | Bad debt provision | Accrual ratio | |
Within one year (one year included) | 16,908,018.78 | 50,724.06 | 0.30% |
1-2 years (2 years included) | 2,171,585.94 | 6,514.76 | 0.30% |
Total | 19,079,604.72 | 57,238.82 | -- |
Name | Ending balance | ||
Book balance | Bad debt provision | Accrual ratio |
Name | Ending balance | ||
Book balance | Bad debt provision | Accrual ratio |
Name | Ending balance | ||
Book balance | Bad debt provision | Accrual ratio |
Name | Ending balance | ||
Book balance | Bad debt provision | Accrual ratio |
In RMB
Name | Ending balance | ||
Book balance | Bad debt provision | Accrual ratio |
Account age | Book balance |
Within one year (one year included) | 18,950,125.83 |
Within one year | 18,950,125.83 |
1-2 years | 7,633,150.42 |
Total | 26,583,276.25 |
Category | Opening balance | Current changes | Ending balance | |||
Accrual | Collected or reversal | Write off | Other | |||
Bad debt provision for accounts receivable | 2,176,659.87 | 131,680.42 | 2,308,340.29 | |||
Total | 2,176,659.87 | 131,680.42 | 0.00 | 0.00 | 0.00 | 2,308,340.29 |
Enterprise | Amount collected or reversal | Collection way |
Total | 0.00 | -- |
Item | Amount charge-off |
Enterprise | Nature | Amount charge-off | Causes of charge-off | Procedure for charge-off | Amount cause by related transactions or not (Y/N) |
Total | -- | 0.00 | -- | -- | -- |
Name | Ending balance of accounts receivable | Proportion of total closing balance of accounts receivable | Ending balance of bad bet provision |
Guangshui Jiaxu Energy Technology Co., Ltd. | 16,308,000.33 | 61.35% | 48,924.00 |
Shenzhen Jiahaosong Technology Co., Ltd. | 2,393,603.75 | 9.00% | 718,081.13 |
Shenzhen Weiterui New Energy Technology Co., Ltd. | 1,670,971.05 | 6.29% | 501,291.32 |
Hubei Testun Electronic Technology Co., Ltd. | 1,145,000.00 | 4.31% | 3,435.00 |
Zhengzhou Guiguan Tech. Trade. Co., Ltd | 1,007,233.79 | 3.79% | 302,170.14 |
Total | 22,524,808.92 | 84.74% |
Item | Ending balance | Opening balance |
Other account receivable | 115,263.05 | 485,062.44 |
Total | 115,263.05 | 485,062.44 |
(1) Interest receivable
1) Category
In RMB
Item | Ending balance | Opening balance |
Borrower | Ending Balance | Overdue time | Overdue reason | Impairment (Y/N) and judgment basis |
Total | 0.00 | -- | -- | -- |
Item (or invested company) | Ending balance | Opening balance |
Item (or invested company) | Ending balance | Account age | Causes of failure for collection | Impairment (Y/N) and judgment basis |
Total | 0.00 | -- | -- | -- |
(3) Other account receivable
1) By nature
In RMB
Account nature | Ending book balance | Opening book balance |
Deposit or margin | 105,713.00 | 484,822.00 |
Payment for equipment | 11,400.00 | 11,400.00 |
Reserve | 10,396.88 | 2,000.00 |
Total | 127,509.88 | 498,222.00 |
Bad debt provision | Phase I | Phase II | Phase III | Total |
Expected credit losses over next 12 months | Expected credit losses for the entire duration (without credit impairment occurred) | Expected credit losses for the entire duration (with credit impairment occurred) | ||
Balance on January 1, 2020 | 13,159.56 | 13,159.56 | ||
January 1, 2020 balance in the current period | —— | —— | —— | —— |
Reversal in Current Period | 912.73 | 912.73 | ||
Balance on December 31, 2020 | 12,246.83 | 12,246.83 |
Account age | Book balance |
Within one year (one year included) | 113,609.88 |
Within one year (one year included) | 113,609.88 |
1-2 years | 2,000.00 |
Over 3 years | 11,900.00 |
3-4 years | 200.00 |
4-5 years | 11,700.00 |
Total | 127,509.88 |
3) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
In RMB
Category | Opening balance | Current changes | Ending balance | |||
Accrual | Collected or reversal | Write off | Other | |||
Bad debt provision for other receivables | 13,159.56 | 912.73 | 12,246.83 | |||
Total | 13,159.56 | 912.73 | 12,246.83 |
Enterprise | Amount switch-back or collection | Collection way |
Total | 0.00 | -- |
Item | Amount charge-off |
Enterprise | Nature | Amount charge-off | Causes of charge-off | Procedure for charge-off | Amount cause by related transactions or not (Y/N) |
Total | -- | 0.00 | -- | -- | -- |
Enterprise | Nature | Ending Balance | Account age | Proportion in total other account receivables at period-end | Ending balance of bad debt provision |
Shenye Pengji (Group) Co., Ltd. | Deposit or margin | 60,222.00 | Within one year | 47.23% | 180.67 |
Shenzhen Haiyida Decoration Design Engineering Co., Ltd. | Deposit or margin | 34,550.00 | Within one year | 27.10% | 103.65 |
Shenzhen Hongkang Instrument Technology Co., Ltd. | Equipment | 11,400.00 | 4-5 years | 8.94% | 11,400.00 |
Shenzhen Pengji Property Management Service Co., Ltd. | Deposit or margin | 10,441.00 | Within one year | 8.19% | 31.32 |
Wu Furong | Reserve fund | 2,000.00 | Within one year | 1.57% | 6.00 |
Total | -- | 118,613.00 | -- | 93.02% | 11,721.64 |
Enterprise | Government grants | Ending Balance | Ending account age | Time, amount and basis of amount collection estimated |
Item | Ending balance | Opening balance | ||||
Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
Investment for subsidiary | 21,350,000.00 | 1,389,620.27 | 19,960,379.73 | 5,625,000.00 | 1,389,620.27 | 4,235,379.73 |
Total | 21,350,000.00 | 1,389,620.27 | 19,960,379.73 | 5,625,000.00 | 1,389,620.27 | 4,235,379.73 |
(1) Investment for subsidiary
In RMB
The invested entity | Opening Balance (Book value) | Changes in the period (+, -) | Ending Balance (Book value) | Ending balance of impairment provision | |||
Additional investment | Capital reduction | Accrual of impairment provision | Other | ||||
Shenzhen Emmelle Industry Co., Ltd. | 10,379.73 | 10,379.73 | 1,389,620.27 | ||||
Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd. | 4,225,000.00 | 15,725,000.00 | 19,950,000.00 | ||||
Total | 4,235,379.73 | 15,725,000.00 | 19,960,379.73 | 1,389,620.27 |
Funded enterprise | Opening Balance (Book value) | Changes in the period (+, -) | Ending Balance (Book value) | Ending balance of impairment provision | |||||||
Additional investment | Capital reduction | Investment gains recognized under equity | Other comprehensive income adjustment | Other equity change | Cash dividend or profit announced to issued | Accrual of impairment provision | Other | ||||
I. Joint venture | |||||||||||
Subtotal | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
II. Associated enterprise | |||||||||||
Subtotal | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Total | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Item | Current Period | Last Period | ||
Revenue | Cost | Revenue | Cost | |
Main business | 20,057,964.04 | 19,427,326.43 | 54,012,420.29 | 52,204,470.16 |
Other business | 8,821,133.12 | 2,273,363.81 | 3,753,308.11 | 753,000.00 |
Total | 28,879,097.16 | 21,700,690.24 | 57,765,728.40 | 52,957,470.16 |
Contract type | 1# Division | 2# Division | Total | |
Including: | ||||
Including: | ||||
Including: | ||||
Including: | ||||
Including: | ||||
Including: | ||||
Including: |
Item | Current Period | Last Period |
Item | Amount | Note |
Dispose profit and loss of non-current assets | 24,936.44 | |
Other non-operating income and expenditure except for the aforementioned items | 754,370.46 | |
Less: Impact on income tax | 0.18 | |
Impact on minority shareholders’ equity | 65,223.94 | |
Total | 714,082.78 | -- |
Profits during report period | Weighted average ROE | Earnings per share | |
Basic earnings per share (RMB/Share) | Diluted earnings per share (RMB/Share) | ||
Net profits belong to common stock stockholders of the Company | 42.01% | 0.0069 | 0.0069 |
Net profits belong to common stock stockholders of the Company after deducting nonrecurring gains and losses | 34.08% | 0.0056 | 0.0056 |
4. Other
Nil
Section XIII. Documents available for reference
1. Accounting statement carrying the signatures and seals of the legal representative, person in charge of accounting and person incharge of accounting organ.
2. Original audit report with seal of the accounting firm and signature and seal of CPAs.
3. Originals documents of the Company and manuscripts of public notices that disclosed in the newspaper designated by CSRC in thereport period.
4. English version of the Annual Report 2020
Board of Directors of
Shenzhen China Bicycle Company (Holdings) Limited
23 April 2021