深圳市深宝实业股份有限公司 2016 年年度报告全文
深圳市深宝实业股份有限公司
SHENZHEN SHENBAO INDUSTRIAL CO., LTD.
ANNUAL REPORT 2016
April 2017
深圳市深宝实业股份有限公司 2016 年年度报告全文
Section I. Important Notice, Contents and Paraphrase
Board of Directors, Supervisory Committee, all directors, supervisors and senior
executives of Shenzhen Shenbao Industrial Co., Ltd.(hereinafter referred to as
the Company) hereby confirm that there are no any fictitious statements,
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.
Chairman of the Company Zheng Yuxi, General Manager Yan Zesong, Chief
Financial Officer Wang Zhiping and Financial Management Department
Manager Xu Qiming hereby confirm that the Financial Report of Annual
Report 2016 is authentic, accurate and complete.
Except for the follow director, others are attended the Board Meeting for
deliberation of this Report
Absent director Title Reason of absent Mandatory
Away on official
Liu Zhengyu Director Huang Yu
business
Concerning the forward-looking statements with future planning involved in the
annual report, they do not constitute a substantial commitment for investors,
Securities Times, China Securities Journal, Hong Kong Commercial Daily and
Juchao Website (www.cninfo.com.cn) are the media appointed by the Company
for information disclosure, all information of the Company disclosed in the
above mentioned media should prevail. Investors are advised to exercise caution
of investment risks.
The Company has analyzed the risk factors that the Company may exist and its
countermeasures in the report, investors are advised to pay attention to read
“Prospect for future development of the Company” in the report of Section
深圳市深宝实业股份有限公司 2016 年年度报告全文
IV-Discussion and Analysis of the Operation.
The equity allocation plan, deliberated and approved by the Board Meeting, are
as: based on total shares capital of the Company 451,620,276 shares dated 31 st
December 2016, distribute 0.50 Yuan (tax included) bonus for each 10 shares
held by shareholders, one bonus shares (tax included), and no capitalization of
common reserves.
This report has been prepared in Chinese and English version respectively. In
the event of difference in interpretation between the two versions, Chinese
report shall prevail.
深圳市深宝实业股份有限公司 2016 年年度报告全文
Contents
Section I. Important Notice, Contents and Paraphrase ................................................................. 2
Section II Company Profile and Main Financial Indexes .............................................................. 7
Section III Summary of Company Business .................................................................................. 12
Section IV Discussion and Analysis of the Operation ................................................................... 14
Section V. Important Events............................................................................................................ 33
Section VI. Changes in Shares and Particulars about Shareholders .......................................... 44
Section VII. Preferred Stock ........................................................................................................... 52
Section VIII. Particulars about Directors, Supervisors, Senior Executives and Employees .... 53
Section IX. Corporate governance ................................................................................................. 62
Section X Corporate Bond .............................................................................................................. 69
Section XI. Financial Report ........................................................................................................... 70
Section XII. Documents available for Reference ......................................................................... 213
深圳市深宝实业股份有限公司 2016 年年度报告全文
Paraphrase
Items Refers to Contents
Shenshenbao/Shenbao Company/ Listed
Refers to Shenzhen Shenbao Industrial Co., Ltd.
Company /the Company/
Shenbao Huacheng Refers to Shenzhen Shenbao Huacheng Science and Technology Co.,Ltd
Wuyuan Ju Fang Yong Refers to Ju Fang Yong Tea Industry Co., Ltd. in Wuyuan County
Hangzhou Ju Fang Yong Refers to Hangzhou Ju Fang Yong Holding Co., Ltd.
Shenbao Yuxing Refers to Fujian Mount Wuyi Shenbao Yuxing Tea Co., Ltd.
Shenbao Technology Center Refers to Shenzhen Shenbao Technology Center Co., Ltd.
Huizhou Shenbao Science & Technology Refers to Huizhou Shenbao Science & Technology Co., Ltd.
Shenzhen Shenbao Sanjing Food & Beverage Development
Shenbao Sanjing Refers to
Co., Ltd
Shenbao Industrial & Trading Refers to Shenzhen Shenbao Industrial & Trading Co., Ltd.
Shenbao Properties Refers to Shenzhen Shenbao Properties Management Co., Ltd.
Shenshenbao Investment Refers to Shenzhen Shenshenbao Investment Co., Ltd.
Yunnan Shenbao Pu’er Tea Supply Chain Management Co.,
Yunnan Supply Chain Refers to
Ltd
Shenbao Shengyuan Refers to Shenbao Shengyuan (Beijing) Food Co., Ltd.
Fuhaitang Ecological Refers to Fuhaitang Tea Ecological Technology Co., Ltd.
Chunshi Network Refers to Hangzhou Chunshi Network Technology Co.,Ltd.
Jufangyong Trading Refers to Hangzhou Jufangyong Trading Co., Ltd
Shenshenbao Tea Culture Refers to Shenzhen Shenshenbao Tea Culture Management Co., Ltd.
Pu’er Tea Trading Center Refers to Yunnan Pu’er Tea Trading Center Co., Ltd.
Yidaxiang Real Estate Refers to Shenzhen Yidaxiang Real Estate Co., Ltd.
Huizhou Shenbao Food Refers to Huizhou Shenbao Food Co., LTd.
Shenbao Rock Tea Refers to Mount Wuyi Shenbao Rock Tea Co., Ltd.
Agricultural Products Refers to Shenzhen Agricultural Products Co., Ltd
Shenzhen Investment Holding Refers to Shenzhen Investment Holding Co., Ltd
Shenzhen Municipal People’s Government State-owned Assets
Shenzhen SASAC Refers to
Supervision & Administration Commission
CSRC Refers to China Securities Regulation Commission
SSE Refers to Shenzhen Stock Exchange
Dahua Certified Public Accountants (Special General
Dahua CPA Refers to
Partnership)
深圳市深宝实业股份有限公司 2016 年年度报告全文
Article of Association Refers to Article of Association of Shenzhen Shenbao Industrial Co., Ltd
RMB/10 thousand Yuan Refers to CNY/ten thousand Yuan
深圳市深宝实业股份有限公司 2016 年年度报告全文
Section II Company Profile and Main Financial Indexes
I. Company information
SHENSHENBAO-A,
Short form for share Stock code 000019, 200019
SHENSHENBAO-B
Listing stock exchange Shenzhen Stock Exchange
Chinese name of the
深圳市深宝实业股份有限公司
Company
Abbr. of Chinese name of
深宝
the Company
English name of the
SHENZHEN SHENBAO INDUSTRIAL CO.,LTD.
Company(if applicable)
Abbr. of English name of
the Company(if SBSY
applicable)
Legal Representative Zheng Yuxi
8F, B Section, 4th Tower, Software Industrial Base, South Technology Park, Xuefu
Registrations add.
Road, Yuehai Street, Nanshan District, Shenzhen
Code for registrations add 518057
8/F, Tower-B, Building 4, Technology Park Nanshan Software Base, Nanshan
Offices add.
District, Shenzhen
Codes for office add. 518057
Company’s Internet Web
http://www.sbsy.com.cn
Site
E-mail shenbao@sbsy.com.cn
II. Person/Way to contact
Secretary of the Board Rep. of security affairs
Name Li Yiyan Huang Bingxia
8/F, Tower-B, Building 4, Software 8/F, Tower-B, Building 4, Software
Industry Base, Science & Industry Base, Science &
Contact add.
Technology Park (South), Xuefu Technology Park (South), Xuefu
Road, Nanshan District, Shenzhen Road, Nanshan District, Shenzhen
Tel. 0755-82027522 0755-82027522
Fax. 0755-82027522 0755-82027522
E-mail lyy@sbsy.com.cn huangbx@sbsy.com.cn
深圳市深宝实业股份有限公司 2016 年年度报告全文
III. Information disclosure and preparation place
Newspaper appointed for information Securities Times; China Securities Journal andHong Kong
disclosure Commercial Daily
Website for annual report publish appointed
http://www.cninfo.com.cn
by CSRC
Preparation place for annual report Office of the Board of Directors
IV. Registration changes of the Company
Organization code 91440300192180754J
Changes of main business since
No changes
listing (if applicable)
On 10 September 1999, Shenzhen Investment Management Co., Ltd.
entered into the “Equity Transfer Agreement of Shenzhen Shenbao
Industrial Co., Ltd.” with Agricultural Products for 58,347,695 shares of
Previous changes for controlling
the Company (35% in total shares of the Company) transfer to Agricultural
shareholders (if applicable)
Products with price of RMB 1.95 per share. Agricultural Products comes
to the first majority shareholder of the Company after transfer and
procedures for the above equity transfer has completed in June of 2003.
V. Other relevant information
CPA engaged by the Company
Name of CPA Dahua Certified Public Accountants (Special General Partnership)
Offices add. for CPA 11/F, Block B, Union Square, No. 5022, Binhe Blv, Futian District, Shenzhen
Signing Accountants Chen Baohua, Su Qing
Sponsor engaged by the Company for performing continuous supervision duties in reporting period
□ Applicable √ Not applicable
Financial consultant engaged by the Company for performing continuous supervision duties in
reporting period
□ Applicable √ Not applicable
VI. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data for accounting
policy changed and accounting error correction or not
□Yes √No
Changes over last
2016 2015
year
Operating revenue (RMB) 273,383,642.99 338,224,512.31 -19.17% 368,121,399.84
Net profit attributable to
96,620,658.92 -35,256,169.10 374.05% 13,323,820.43
shareholders of the listed
深圳市深宝实业股份有限公司 2016 年年度报告全文
Company(RMB)
Net profit attributable to
shareholders of the listed
Company after deducting -64,394,848.68 -44,785,428.54 -43.79% 4,369,025.76
non-recurring gains and
losses(RMB)
Net cash flow arising from
61,740,568.12 -45,963,089.09 234.33% 25,443,112.45
operating activities(RMB)
Basic earnings per share
0.2139 -0.0781 373.88% 0.0295
(RMB/Share)
Diluted earnings per share
0.2139 -0.0781 373.88% 0.0295
(RMB/Share)
Weighted average ROE 9.82% -3.70% 13.52% 1.38%
Changes over end
End of 2016 End of 2015 End of 2014
of last year
Total assets (RMB) 1,178,543,725.30 1,060,458,757.46 11.14% 1,154,612,267.59
Net assets attributable to
shareholder of listed 1,031,768,388.87 935,622,280.75 10.28% 970,878,218.93
Company(RMB)
VII. Difference of the accounting data under accounting rules in and out of China
1. Difference of the net profit and net assets disclosed in financial report, under both IAS
(International Accounting Standards) and Chinese GAAP (Generally Accepted Accounting
Principles)
√ Applicable □ Not applicable
In RMB
Net profit attributable to shareholders of Net assets attributable to shareholders of
listed Company listed Company
Amount at Amount at
2016
period-end period-begin
Chinese GAAP 96,620,658.92 -35,256,169.10 1,031,768,388.87 935,622,280.75
Items and amount adjusted by IAS
Adjustment for other
payable fund of stock 0.00 0.00 1,067,000.00 1,067,000.00
market regulation
IAS 96,620,658.92 -35,256,169.10 1,032,835,388.87 936,689,280.75
深圳市深宝实业股份有限公司 2016 年年度报告全文
2. Difference of the net profit and net assets disclosed in financial report, under both foreign
accounting rules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company has no above mentioned condition occurred in the period
3. Explaination on differences of the data under accounting standards in and out of China
□ Applicable √ Not applicable
VIII. Main financial index discloused by quarter
In RMB
1st Q 2nd Q 3rd Q 4th Q
Operating income 72,574,451.04 76,581,078.67 77,232,026.03 46,996,087.25
Net profit attributable to
shareholders of the listed -6,183,061.88 -8,916,118.75 -12,459,832.67 124,179,672.22
Company
Net profit attributable to
shareholders of the listed
-9,456,080.02 -10,877,377.35 -14,938,242.86 -29,123,148.45
Company after deducting
non-recurring gains and losses
Net cash flow arising from
-9,726,779.42 41,324,726.78 -32,952,739.10 64,652,478.08
operating activities
Whether there are significant differences between the above-mentioned financial index or its total
number and the relevant financial index disclosed in the Company’s quarterly report and
semi-annual report
□Yes √ No
IX. Items and amounts of extraordinary profit (gains)/loss
√ Applicable □ Not applicable
In RMB
Item 2016 2015 2014 Note
Gains/losses from the disposal of
non-current asset (including the
171,607,536.76 -37,081.52 2,761,632.33
write-off that accrued for impairment
of assets)
Governmental subsidy reckoned into
current gains/losses (not including the
subsidy enjoyed in quota or ration
4,000,648.87 4,229,841.97 6,439,620.12
according to national standards, which
are closely relevant to enterprise’s
business)
深圳市深宝实业股份有限公司 2016 年年度报告全文
Profit and loss of assets delegation on
821,891.58 2,093,233.10
others’ investment or management
Gains and losses from change of fair
values of held-for-transaction
financial assets and financial
liabilities except for the effective
hedge business related to normal
-335,414.30 1,808,657.11 642,447.39
business of the Company, and
investment income from disposal of
transactional financial assets and
liabilities and financial assets
available for sale
Other non-operating income and
expenditure except for the 8,557,332.04 3,616,614.35 287,626.02
aforementioned items
Less: impact on income tax 23,961,893.28 2,179,393.09 1,141,648.12
Impact on minority shareholders’
-325,405.93 2,612.48 34,883.07
equity (post-tax)
Total 161,015,507.60 9,529,259.44 8,954,794.67 --
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on
Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary
Profit/loss, and the items defined as recurring profit (gain)/loss according to the lists of
extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for
Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable √ Not applicable
In reporting period, the Company has no particular about items defined as recurring profit
(gain)/loss according to the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on
Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary
Profit/loss
深圳市深宝实业股份有限公司 2016 年年度报告全文
Section III Summary of Company Business
I. Main businesses of the Company in the reporting period
Does the Company need to comply with disclosure requirements of the special industry?
□Yes √ No
The Company focuses on tea industry development, established relatively complete industrial chain involving tea
cultivation, purified tea, tea extract, boutique tea sales, tea cultural experience, e-commerce, tea trading platform
and tea finance. Its main business comprises tea refining and fine tea sales, tea-life experience, tea e-commerce,
food and beverage, research and development. The Company has formed direction of \"health technology\" based
on plant extraction technology, \"industrial services\" based on core business ranging from tea trading center
finance, electronic trading, modern logistics, \"life experience\" based on core business of Tea bank\Fuhai Tong
Fashion- Tea consumption. Main products are \"Golden Eagle\" instant tea powder, juice ect series; \"Jufangyong\",
\"Gutan\", \"Fuhai Tong\" ect series; \"Mitsui\" oyster sauce, chicken, seafood sauce and other condiments; \"Shenbao\"
chrysanthemum tea, lemon tea, herbal tea and other drinks.
II. Major changes in main assets
1. Major changes in main assets
Major assets Note of major changes
100% equity of Shenzhen Yidaxiang Real Estate Co., Ltd. - wholly-owned
Equity assets
subsidiary, sold in the Period
Fixed assets No major Change
Intangible assets No major Change
Construction in progress No major Change
2. Main overseas assets
□ Applicable √ Not applicable
III. Core Competitiveness Analysis
Does the Company need to comply with disclosure requirements of the special industry?
□Yes √ No
During the reporting period, core competence wasn’t significantly changed. The Company has established
relatively complete industrial chain involving tea cultivation, purified tea, tea extract, boutique tea sales, tea
深圳市深宝实业股份有限公司 2016 年年度报告全文
cultural experience, e-commerce, tea trading platform and tea finance, forming a good industrial base; relying
strong R & D capabilities, leading edge technology, two state-level high-tech enterprises, a quality control system
recognized by large international food and beverage companies, the Company brought a group of high-quality
large domestic and foreign clients. The Company will continue to innovate institutional mechanisms, innovative
ideas, innovative products to enhance synergies and core competitiveness of the tea industry chain.
深圳市深宝实业股份有限公司 2016 年年度报告全文
Section IV Discussion and Analysis of the Operation
I. Introduction
During the reporting period, the Company focused on scientific research, carried out innovative management, and
put forth the best effort to expand the main businesses; further optimized the tea industry chain layout, sorted out
and improved the business model, and steadily enhanced the enterprise’s profitability and core competitiveness.
During the reporting period, as an important link in the development of scientific research, Shenbao Technology
Center continued to enhance the research momentum, provided product research and technical services for the
development of various business segments, and boosted the business development in all directions. In the
exploration of the forefront topics of international food and beverage, Shenbao Technology Center introduced the
\"clean label\" concept, actively developed new products of healthy concepts, and gave products the healthy and
natural properties via the traditional boiling way with less additives and simple processes. In terms of
technological innovation and project application, Shenbao Technology Center implemented three annual research
projects, achieved greater technological breakthroughs in the \"black tea concentrated solution precipitation\", \"high
aroma series of concentrated solution\" products, and maintained the industry-leading position; won the third prize
in \"enzymolysis technology\" innovation of the Shenzhen City SASAC over the same period. In 2016, the
Company applied for 7 national invention patents, and obtained the authorization of 3 national invention patents.
Up to the end of this year, the Company has had 41 national invention patents, and developed and implemented a
total of 68 client projects in this year.
During the reporting period, on the basis of consolidating the existing industrial customers, the tea-intensive
processing businesses positively expanded the international market, the products gradually developed from the
ASEAN market to Taiwan, South Korea, Russia, Central Asia and other regions, and acquired the supply
certification of Coca-Cola global tea drinks brand, and began to supply the Americas market in 2017. At the same
time, upgraded the sources of raw materials, product standards and quality, health ingredients, flavor,
comprehensive application program, technical services and other aspects of tea and plant-intensive processing
products, and actively developed the food and beverage market channels, which began to show the effectiveness.
During the reporting period, the product distribution of tea intensive-processing sector was adjusted, and the
production of Wuyuan factory, Shenzhen factory and Shantou factory was repositioned, furthest gave play to
capacity effect and effectively improved the product gross margin by technology upgrading, technological
improvement, optimization of product technology, energy saving and emission reduction and other management
measures.
During the reporting period, Huizhou Science and Technology actively assisted Fujian dealers to carry out market
planning, expand sales force, promote brand building, and add new growth momentum to Fujian market; strongly
supported and assisted Jiangxi dealers to expand the buying in group business so that the products circulated to
Nanchang and surrounding areas, which effectively improved the product popularity, achieved breakthroughs in
regional market sales, customer base and sales channels, and laid a solid foundation for further expanding the
深圳市深宝实业股份有限公司 2016 年年度报告全文
Jiangxi market. At the same time, under the support of Shenbao Technology Center, continued the research and
development and storage of new products in order to provide new product supports for the Company's business
development in the next three years.
During the reporting period, the Company's tea consumption experience business sector strengthened the terminal
channel brand building, focused on the end consumer innovative product experience, space experience, and
culture experience, explored and improved the Company's terminal marketing platform and channel system.
Hangzhou Ju Fang Yong actively improved the retail model of specialty tea, on the basis of Xihu Longjing Tea, in
accordance with the \"specialty\" idea, and replying on the existing offline retail stores in Hangzhou and the
surrounding areas and the newly developed offline retail stores in high-traffic areas (high-speed rail, airport, and
tourist attractions) to develop new related products and expand the small gift business with tea thematic features;
continued to carry out resources marketing cooperation with the third-party platform, drove the brand awareness
promotion and performance growth of Ju Fang Yong; continued to enhance brand promotion efforts by fans
sharing, insisted on WeChat client-accumulating strategy, strengthened the drainage effect, and improved the
re-purchase rate. During the year, iTealife improved the standard chain operation system construction, updated the
brand image, enhanced the commercial value, and cooperated with Jianyue Book Bar, the sub-brand of Shenzhen
Bookmall, to landed in Shenzhen market, and opened a win-win model of different industrial cooperation. Based
on the operation and exploration of flagship stores of the headquarters, Teabank determined the operating strategy
of \"fashion life space taking tea as the theme\", adjusted the organizational structure, strengthened the standard
store profit-making model, and accelerated the preparation of new store development.
During the reporting period, the Company strengthened the construction and integration of the supply chain
business sector. Under the background of new teams, new projects and new business model, Pu'er tea trading
center completed block tradings and electronic bidding business online, and laid a good foundation for
development at the beginning of establishment; focused on the electronic trading platform, cooperated with
third-party organizations and gradually built the value added services including including products quality
inspection and assessment, and warehousing and logistics so as to serve the upstream and downstream customers
of Pu'er tea industry chain.
During the reporting period, the Company optimized and innovated the training organizational form, built a
practical and efficient learning organization atmosphere by setting up talent value discovery platforms and \"one
tea and one meeting\" sharing learning model; focused on the Company's business projects by carrying out the
\"action learning growth training camp\" activities, mobilized and stimulated the students' enthusiasm, formed the
project solutions, and entered into the implementation phase through the Company’s assessment, and also carried
out the innovative attempts for the Company to discover talents, explore talents, and develop talent echelon
construction. During the year, the Company also carried out deep optimization to the ERP management module,
improved the flexibility of system management, and made it closer to the user needs.
During the reporting period, the Company actively participated in the establishment of the food safety
demonstration city in Shenzhen, strengthened the construction of food safety traceability mechanism in virtue of
the new food safety law, put forward the corresponding work plan, strictly implemented the supervision and
inspection, and turned the safety to benefits; actively carried out the safety production management, strengthened
深圳市深宝实业股份有限公司 2016 年年度报告全文
the staff safety management awareness and operational skills training, effectively implemented the safety
responsibilities to the system, organizations and personnel. In 2016, the Company's food safety accident rate was
\"0\", the accident rate of various types of safety production was \"0\", and achieved five \"0\" targets for safety
irresponsibility accident.
In 2016, the Company realized total operating income of RMB 273,383,642.99, a decrease of 19.17% over the
same period of last year; operating profit of RMB 94,177,768.53, an increase of 295.25% over the same period of
last year; net profit attributable to shareholders of the listed Company of RMB 96,620,658.92, an increase of
374.05% over the same period of last year. The changes in operating profit and net profit attributable to
shareholders of the listed Company were mainly due to the sale of 100% stake of wholly-owned subsidiary Yi Da
Xiang Real Estate in current period.
II. Main business analysis
1. Introduction
See the “I-Introduction” in “Discussion and Analysis of the Operation”
2. Revenue and cost
(1) Constitute of operation revenue
In RMB
2016
Increase/decrease
Ratio in operation Ratio in operation
Amount Amount y-o-y
revenue revenue
Total operation
273,383,642.99 100.00% 338,224,512.31 100.00% -19.17%
revenue
According to industries
Industry 241,949,064.53 88.50% 266,359,637.38 78.76% -9.16%
Trading 17,602,551.23 6.44% 19,996,329.88 5.91% -11.97%
Real estate 0.00 0.00% 47,771,344.00 14.12% -100.00%
Leasing business 1,844,660.57 0.67% 1,568,023.00 0.46% 17.64%
Service 10,610,377.04 3.88% 0.00 0.00% 100.00%
Other 1,376,989.62 0.50% 2,529,178.05 0.75% -45.56%
According to products
Soft drinks 28,537,221.17 10.44% 21,909,296.65 6.48% 30.25%
Condiment 8,966,379.88 3.28% 9,039,792.56 2.67% -0.81%
Tea products 222,048,014.71 81.22% 255,406,878.05 75.51% -13.06%
Commercial housing 0 0.00% 47,771,344.00 14.12% -100.00%
Property leasing 1,844,660.57 0.67% 1,568,023.00 0.46% 17.64%
Service 10,610,377.04 3.88% 0.00 0.00% 100.00%
深圳市深宝实业股份有限公司 2016 年年度报告全文
Other 1,376,989.62 0.50% 2,529,178.05 0.75% -45.56%
According to region
Exportation 12,509,701.98 4.58% 8,704,227.24 2.57% 43.72%
South China 109,134,649.49 39.92% 104,392,341.49 30.86% 4.54%
North China 20,323,825.12 7.43% 29,832,169.63 8.82% -31.87%
East China 107,699,798.02 39.40% 154,904,463.04 45.80% -30.47%
Central China 14,261,668.46 5.22% 29,474,515.90 8.71% -51.61%
Other region 9,453,999.92 3.46% 10,916,795.01 3.23% -13.40%
(2) About the industries, products, or regions accounting for over 10% of the Company’s
operating income or operating profit
√ Applicable □ Not applicable
Does the Company need to comply with disclosure requirements of the special industry?
□Yes √No
In RMB
Increase/decrease Increase/decrease Increase/decrease
Gross profit
Operating revenue Operating cost of operating of operating cost of gross profit
ratio
revenue y-o-y y-o-y ratio y-o-y
According to industries
Industry 241,949,064.53 193,974,978.55 19.83% -9.16% -14.01% 4.51%
Trading 17,602,551.23 9,779,630.55 44.44% -11.97% -33.09% 17.53%
According to products
Soft drinks 28,537,221.17 21,284,129.94 25.42% 30.25% 30.92% -0.38%
Tea products 222,048,014.71 176,852,638.04 20.35% -13.06% -18.88% 5.72%
According to region
South China 109,134,649.49 71,788,164.39 34.22% 4.54% 43.72% -17.93%
North China 20,323,825.12 19,472,967.19 4.19% -31.87% -25.38% -8.33%
East China 106,322,808.40 83,629,161.79 21.34% -31.36% -36.07% 5.79%
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main business based on
latest one year’s scope of period-end
□ Applicable √ Not applicable
(3) Income from physical sales larger than income from labors
√ Yes □ No
Increase/decrease
Industries Item Unit 2016
y-o-y
Industry Sales volume Ton 13,914.44 19,650.62 -29.19%
深圳市深宝实业股份有限公司 2016 年年度报告全文
Output Ton 15,210.31 21,061.25 -27.78%
Storage Ton 4,677.57 5,028.78 -6.98%
Reasons for y-o-y relevant data with over 30% changes
□ Applicable √ Not applicable
(4) Fulfillment of the Company’s signed significant sales contracts up to this reporting period
□ Applicable √ Not applicable
(5) Constitute of operation cost
Classification of industries and products
In RMB
2016
Increase/decrease
Industries Item Ratio in Ratio in
Amount Amount y-o-y
operation cost operation cost
Industry Raw materials 123,881,660.69 60.53% 150,863,451.36 60.97% -17.88%
Industry Labour wage 11,217,506.09 5.48% 10,685,964.75 4.32% 4.97%
Industry Energy 25,532,216.93 12.48% 28,887,628.96 11.67% -11.62%
Industry Depreciation cost 16,291,256.71 7.96% 16,007,577.85 6.47% 1.77%
Industry Cost of production 17,052,338.13 8.33% 19,123,411.71 7.73% -10.83%
In RMB
2016
Increase/decrease
Products Item Ratio in Ratio in
Amount Amount y-o-y
operation cost operation cost
Tea products Raw materials 111,993,962.02 54.73% 150,085,271.79 60.65% -25.38%
Tea products Labour wage 9,633,017.71 4.71% 9,125,052.29 3.69% 5.57%
Tea products Energy 24,068,105.34 11.76% 25,204,116.93 10.19% -4.51%
Tea products Depreciation cost 14,507,617.02 7.09% 14,223,371.06 5.75% 2.00%
Tea products Cost of production 16,649,935.95 8.14% 19,389,196.74 7.84% -14.13%
(6) Whether the changes in the scope of consolidation in Reporting Period
√Yes □No
1. Subsidiary included in consolidate statement in the Period
Name Reason for change
深圳市深宝实业股份有限公司 2016 年年度报告全文
Pu’er Tea Trading Center Enterprise combined not under the same control
Shenbao Rock Tea New establihsed after division
Yidaxiang Real Estate New establihsed
Huizhou Shenbao Food New establihsed
2. Subsidiary, special purpose entity, and operational entities lose controlling rights by entrusted operation or
commissioned rental
Name Reason for change
Shenbao Shengyuan Loss of control after equity transferred
Shenbao Yuxing Loss of control after division
Yidaxiang Real Estate Disposal
(7) Material changes or adjustment for products or services of the Company in reporting period
□ Applicable √ Not applicable
(8) Major sales and main suppliers
Major sales of the Company
Total top five clients in sales (RMB) 78,159,251.79
Proportion in total annual sales volume for top five clients 28.59%
Proportion in total annual sales volume for related sales among top
0.00%
five clients
Top five clients
Proportion in total annual
Serial Name Sales (RMB)
sales
1 Client I 32,967,649.26 12.06%
2 Client II 14,706,593.75 5.38%
3 Client III 10,741,179.71 3.93%
4 Client IV 10,133,555.57 3.71%
5 Client V 9,610,273.50 3.52%
Total -- 78,159,251.79 28.59%
Other explaination on main clinets
□ Applicable √ Not applicable
Main suppliers of the Company
Total purchase amount from top five suppliers (RMB) 43,804,974.62
Proportion in total annual purchase amount for top five suppliers 15.57%
Proportion in total annual purchase amount from related 0.00%
深圳市深宝实业股份有限公司 2016 年年度报告全文
purachsement among top five suppliers
Top five suppliers of the Company
Proportion in total annual sum
Serial Name Sum of purchase (RMB)
of purchase
1 Supplier I 11,230,792.44 3.99%
2 Supplier II 9,875,218.17 3.51%
3 Supplier III 8,561,634.19 3.04%
4 Supplier IV 7,519,530.60 2.67%
5 Supplier V 6,617,799.22 2.35%
Total -- 43,804,974.62 15.57%
Other explaination on main suppliers
□ Applicable √ Not applicable
3. Expenses
In RMB
Increase/decrease
2016 2015 Note of major changes
y-o-y (%)
Sales expenses 44,338,389.32 46,050,246.67 -3.72%
Administration
86,120,689.47 80,515,335.69 6.96%
expenses
Exchange gain or loss
Financial expenses -1,182,236.05 -1,951,620.60 39.42%
increased in the period
4. R&D investment
√ Applicable □ Not applicable
In this year, Shenbao Technology Center adhered to the service concept of \"realize the integrating solutions from
concept to products\", actively explored new channels and new markets, developed new products and technical
support services for beverage customers; developed new series of catering products for catering markets; provided
integrated technical supports for new products production for the company and factory; provided supports and
services for the company to participate in exhibitions, customer technical exchanges, and after-sales services. In
this year, the company developed and implemented a total of 68 customer projects, and successfully developed a
total of 51 new products, including tea raw materials, tea powder, tea concentrated juice, plant extracts, and food
and beverage products. During the reporting period, the company applied for a total of seven national invention
patents, and obtained the authorization of 3 national invention patents.
深圳市深宝实业股份有限公司 2016 年年度报告全文
R&D investment of the Company
2016 2015 Change ratio
Number of R&D (people) 33 35 -5.71%
Ratio of number of R&D 4.63% 4.15% 0.48%
R&D investment (Yuan) 7,770,753.76 8,627,337.51 -9.93%
investment accounted for operation income 2.84% 2.55% 0.29%
R&D investment capitalization (Yuan) 2,796,105.82 2,904,986.29 -3.75%
Capitalization R&D investment accounted for R&D
35.98% 33.67% 2.31%
investment
The reason of great changes in the proportion of total R&D investment accounted for operation income than last
year
□ Applicable √ Not applicable
Reason for the great change in R&D investment capitalization rate and rational description
□ Applicable √ Not applicable
5. Cash flow
In RMB
Item 2016 2015 Increase/decrease y-o-y
Subtotal of cash in-flow from operation activity 435,896,630.57 431,429,432.91 0.92%
Subtotal of cash out-flow from operation
373,661,000.56 477,392,522.00 -21.73%
activity
Net cash flow from operation activity 57,822,892.17 -45,963,089.09 234.33%
Subtotal of cash in-flow from investment
306,488,033.55 225,100,233.10 37.90%
activity
Subtotal of cash out-flow from investment
179,221,053.21 264,817,963.43 -32.32%
activity
Net cash flow from investment activity 136,752,836.35 -39,717,730.33 430.30%
Subtotal of cash in-flow from financing activity 66,750,079.19 6,460,230.92 960.33%
Subtotal of cash out-flow from financing
50,825,895.83 40,159,000.00 26.56%
activity
Net cash flow from financing activity 15,924,183.36 -33,698,769.08 152.45%
Net increased amount of cash and cash
210,948,011.26 -119,333,891.29 276.86%
equivalent
Reasons for y-o-y relevant data with major changes
√Applicable □ Not applicable
1. Changes of cash out-flow from operation activity: cash paid for merchandise purchase in the period have
significantly reduced;
深圳市深宝实业股份有限公司 2016 年年度报告全文
2. Changes of cash in-flow from investment activity: cash received from subsidiary disposal in the Period while
no such amount occurred in last period;
3. Changes of cash out-flow from investment activity: cash paid for purchasing financial products decreased from
a year earlier;
4. Changes of cash in-flow fromfinancing activity: cash received from bank loans increased dramatically in the
Period;
5. Changes of cash out-flow from financing activity: cash paid for bank loans increased in the period
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
Selling equity of
Investment income 162,493,453.1 142.28% Unsustainable
subsidiary
Gains/losses of fair
-335,414.3 -0.29% Change of stock value Unsustainable
value variation
Provision for impairment
Asset impairment 6,300,424.43 5.52% Unsustainable
of assets
Non-operating income 20,473,591.76 17.93% Selling fixed assets Unsustainable
Non-operating expense 445,282.09 0.39% Other Unsustainable
IV. Assets and liability
1. Major changes of assets composition
In RMB
End of 2016 End of 2015
Ratio Notes of major
Ratio in Ratio in
Amount Amount changes changes
total assets total assets
Money of equity sold
Monetary fund 358,564,242.83 30.42% 148,013,887.15 13.96% 16.46%
received in the Period
Account
62,582,867.63 5.31% 75,948,016.12 7.16% -1.85%
receivable
Inventory 140,951,059.39 11.96% 175,822,373.53 16.58% -4.62%
Investment
18,872,865.36 1.60% 18,809,193.68 1.77% -0.17%
property
深圳市深宝实业股份有限公司 2016 年年度报告全文
Long-term equity
5,866,481.63 0.50% 7,034,953.91 0.66% -0.17%
investment
Fix assets 333,013,767.86 28.26% 358,418,473.54 33.80% -5.54%
Construction in
54,574.34 0.00% 6,790,574.90 0.64% -0.64%
process
Short-term loans 5,000,000.00 0.42% 0 0.00% 0.42%
2. Assets and liability measured by fair value
√ Applicable □ Not applicable
In RMB
Amou
Devaluatio Amou
Accumulative nt of
Changes of fair n of nt of
Amount at the changes of fair purcha Amount in the
Items value gains/losses withdrawi sale in
beginning period value reckoned se in end of period
in this period ng in the the
into equity the
period period
period
Financial assets
1. Financial assets
measured by fair value
and whose change is
recorded in current 3,586,352.90 -335,414.30 2,169,872.51 3,250,938.60
gains and losses
(excluding derivative
financial assets)
Aforementioned total 3,586,352.90 -335,414.30 2,169,872.51 3,250,938.60
Financial liabilities 0.00 0.00
Whether there have major changes on measurement attributes for main assets of the Company in report period or
not
□ Yes √No
3. The assets rights restricted till end of the period
The Company has no above mentioned conditions till end of the Period
V. Investment analysis
1. Overall situation
√ Applicable □ Not applicable
Investment in reporting period Investment in the same period of last
Range
(yuan) year (yuan)
深圳市深宝实业股份有限公司 2016 年年度报告全文
37,000,000.00 21,615,000.00 71.18%
2. The major equity investment obtained in the reporting period
□ Applicable √ Not applicable
3. The major non-equity investment doing in the reporting period
□ Applicable √ Not applicable
4. Financial assets investment
(1) Securities investment
√ Applicable □ Not applicable
In RMB
Changes
Curre
Short Accou in fair Curre
Variet Initial Book value Cumulativ nt Profit and Book
form nting value of nt Accou
y of Code of invest at the e fair value purch loss in the value at Capital
of measu the sales nting
securit securities ment beginning of changes in ase Reporting the end of Source
secur rement current amou subject
ies cost the period equity amou Period the period
ities model profit and nt
nt
loss
Paid
Domes Fair
Financ shares
tic and value ial
CBC- 3,586,352.9 -335,414. 2,169,872. -335,414.3 3,250,938. assets from
overse 000017 - measu 0.00 0.00
A 0 30 51 0 60 availa debt
as rement ble for
sale reorgan
stock s
ization
3,586,352.9 -335,414. 2,169,872. -335,414.3 3,250,938.
Total - -- 0.00 0.00 -- --
0 30 51 0
Disclosure date of
securities investment Not applicable
approval of the Board
Disclosure date of
securities investment
approval of the Not applicable
Shareholder Meeting (if
applicable)
(2) Derivative investment
□ Applicable √ Not applicable
The Company has no derivatives investment in the Period
深圳市深宝实业股份有限公司 2016 年年度报告全文
5. Application of raised proceeds
□ Applicable √ Not applicable
The Company has no application of raised proceeds in the Period
深圳市深宝实业股份有限公司 2016 年年度报告全文
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
The net
profits
contributed
The Does the plan
to the The
proportion implemented on
listed ownership
of the net schedule or not,
Company of
profits that explain the
Transaction by the Related The property
the equity- reasons and
Equity for The date of price (in 10 equity Impact on the Pricing transaction association rights that Date of
Counterpart for -sale countermeasures Index of disclosure
sale sale thousand from the Company principle confirmed with the involved disclosure
contributed the Company
Yuan) beginning (Y/N) counterparty has
to the listed have taken for
of current transferred
Company not
period to totally
in total implemented on
the date of (Y/N)
profits schedule
sale(in 10
thousand
Yuan)
Shenzhen 100% 1. It will not Determin The “Notice of 100%
Helianyi Equity of 2016-12-02 20,210.74 -56.79 affect 143.21% the price N N/A Y Y 2016-9-29 Equity of Shenzhen
Invstment Yidaxiang Company’s listed on Yidaxiang Real Estate
深圳市深宝实业股份有限公司 2016 年年度报告全文
Co., Ltd. Real business Shenzhen Co., Ltd. Transfer” and
Estate continuity and United three notices of 100%
management Property Equity of Shenzhen
stability; 2. Rights Yidaxiang Real Estate
bring Exchange Co., Ltd. Transferred
investment publicly reelased on Juchao
income of Website dated 29 Sept.
163.5560 2016, 5 December, 14
million Yuan December and 27
for the December respectively
Company
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 Operating revenue Operating profit Net profit
Production of instant tea
Shenbao Huacheng Subsidiary 153,451,300.00 159,001,650.06 138,390,991.49 123,600,011.29 -10,085,948.33 -12,410,885.89
powder, tea juice
Hangzhou Ju Fang Production & sales of tea
Subsidiary 175,000,000.00 211,521,815.35 175,946,407.80 26,365,757.52 49,510,359.97 48,391,711.78
Yong product
Shenshenbao
Subsidiary Investment management 50,000,000.00 40,406,939.52 31,726,192.71 6,371,773.17 -13,461,152.88 -12,998,990.08
Investment
Huizhou
Subsidiary Condiment production 60,000,000.00 214,366,948.59 52,471,348.05 33,100,053.08 20,669,653.29 19,092,888.56
Technology
Particular about subsidiaries obtained or disposed in report period
√ Applicable □ Not applicable
深圳市深宝实业股份有限公司 2016 年年度报告全文
The way of getting and treating subsidiary in the
Name of Company Influence on overall product and performance
reporting
Yidaxiang Real Estate Sell after new established Impact on net profit of the Company: 163.5560 million Yuan
Pu’er Tea Trading Center Share holding ratio increased due to capital increased Impact on net profit of the Company: 1.455 million Yuan
Shenbao Rock Tea New established Impact on net profit of the Company: 240,800Yuan
Huizhou Shenbao Food New established --
Shenbao Shengyuan Equity transfer Impact on net profit of the Company: 581,200 Yuan
Shenbao Yuxing Division --
Explanation on main holding/stock-jointly enterprise
1. Shenzhen Shenbao Huacheng Science and Technology Co.,Ltd is a wholly owned subsidiary. Business scope: set up industry (specific projects to be reported
separately); information consult, food technology development (above excluding the restricted items); goods and technology import and export; production and sales
of other food (chrysanthemum extract instant powder for food industry, momordica grosvenori extract instant powder for food industry, honeysuckle extract instant
powder for food industry, complex dark plum extract condensed juice for food industry, herbal tea concentrates, herbal tea concentrated juice for food industry, red
dates instant powder, mixing plants instant powder; mesona chinensis instant powder, fresh lalang grass rhizome instant powder, lotus and lily concentrate for food
industry, lotus leaf instant powder for food industry and bamboo leaf instant powder); production and sales of tea products (instant tea) as well as solid drinks;
production and sales of beverages (tea drinks, fruit and vegetable juices and other drinks). Registered capital was RMB153, 451,300. Ended as this period-end, the
total assets of Shenbao Huacheng is RMB 159,001,650.06, net assets amounting to RMB 138,390,991.49, and shareholders’ equity attributable to parent Company is
RMB 138,390,991.49; in the reporting period, Shenbao Huacheng realized operation income and net profit of RMB 123,600,011.29 and RMB-12,410,885.89
respectively, net profit attributable to parent Company was RMB -12,410,885.89.
2. Hangzhou Ju Fang Yong Holding Co., Ltd., a wholly owned subsidiary. Business scope: sell both retail and wholesale: wholesale, retail of the prepackaged food
and bulk food (pre-approval itesm should be operated within validity period ): tea set; acquisitions: tea business sales required (limited to the acquisition of the
original producer of primary industry directly); Services: Tea business investment and asset management, technology development, cultivation, breeding, technical
consulting, technical services, transfer of results, the other all legitimate projects without approval, subsidiaries’ business scope included. Register capital was RMB
175 million. Ended as this period-end, the total assets of Ju Fang Yong is RMB 211,521,815.35, and net assets amounting to RMB175,946,407.80, shareholders’
equity attributable to parent Company is RMB176,074,394.47; in the reporting period, Ju Fang Yong realized operation income, net profit and net profit
深圳市深宝实业股份有限公司 2016 年年度报告全文
attributable to shareholder of parent Company as RMB 26,365,757.52, RMB48,391,711.78 and RMB 50,941,372.86 respectively.
3. Shenzhen Shenshenbao Investment Co., Ltd. a wholly owned subsidiary. Business scope: investment industry (specific items to be declared separately); marketing,
consulting services, tea training for knowledge and tea culture; sales of tea set, tea table, root; online trade, domestic trade (excluding franchise, Monopoly, special
goods); business import and export business (excluding restricted items).Register capital was RMB 50 million. Ended as this period-end, the total assets of Shenbao
Technology Center is RMB 40,406,939.52, net assets amounting to RMB 31,726,192.71, and shareholders’ equity attributable to parent Company is RMB
34,760,941.61; in the reporting period, Shenshenbao Investment realized operation income, net profit and net profit attributable to shareholder of parent Company as
RMB6,371,773.17 , RMB -12,998,990.08 and RMB -8,418,787.79 respectively.
4. Huizhou Shenbao Science & Technology Co., Ltd. a wholly owned subsidiary. Business scope: licensed business item : operate within the business scope in
“Industrial Product Manufacture License”; general operting items: industrial investment, property management (operation with qualification certificate); domestic
trading (excluding the items prohibit by laws and administrative regulaiotns, licensens should required while operate items restricted by laws and administrative
regulations). Register capital was RMB 60 million. Ended as this period-end, the total assets of Huizhou Shenbao Science & Technology is RMB 214,366,948.59, net
assets amounting to RMB 52,471,348.05, and shareholders’ equity attributable to parent Company is RMB 52,471,348.05; in the reporting period, Huizhou Shenbao
Science & Technology realized operation income, net profit and net profit attributable to shareholder of parent Company as RMB 33,100,053.08 ,
RMB19,092,888.56 and RMB 19,092,888.56 respectively.
VIII. Structured vehicle controlled by the Company
□ Applicable √ Not applicable
深圳市深宝实业股份有限公司 2016 年年度报告全文
IX. Prospects on future development
(I) Development trend and competition layout of the industry
1. The development trend of tea industry
Tea production of 2016 continue to maintain the overall growth trend, according to statistic from Crop
Management Division of Ministry of Agriculture, in year of 2016, tea garden area coveres 44 million mu in 18
tea-producing provinces, inceased 1.95% from a year earlier; dry tea harvest 2.43 million tons, up by 6.7% from a
year earilier. Among six teas, black tea, dark tea and white tea has over 10% growth in production while yellow
tea goes to 70% more. Total value of dry tea yield to 168 billion Yuan with 10.6% growth. In 2016, according to
the quality safety routine monitoring for agricultural prodcuts by Ministry of Agriculture: qualified rate of
pesticide residues in tea for whole year was 99.4%, increse a 1.8 percentage points from a year earlier.
Competition for vary brand and variety of the tea comes more and more fierce in tea consumption marke, sales
price comes reasonable, sales fell slightly and storage for domestic sales increased. Tea mobile electricity supplier
transactions has a steadily enhance, new medial marketing comes to an effective promotion and sales means for
tea enterprises. Safe and reasonably price of the products as well as pluralistic and yonger products and wide
range of marketing still is the development trend of tea industry.
2. The development trend of tea and deep-processing products based on natural plant
In 2016, the transformation of consumption promoted the transformation and upgrading of beverage industry, the
main economic indicator growth of China's beverage industry was basically stable, the industrial transformation
and upgrading initially made achievements, the beverage consumption showed an overall growth trend. According
to the data of National Bureau of Statistics, China's beverage industry in 2016 realized total output of 183,452,000
tons, an increase of 1.90% on a year-on-year basis. Packaged drinking water, fruit and vegetable juice drinks,
herbal tea drinks, and functional drinks continued to maintain the sales growth, while the carbonated beverage
sales continued to decline. Tea drinks sales remained stable, but the proportion of loss-making enterprises
increased, the old products sales of main tea drinks brands showed a downward trend, and the introduction of new
varieties of some tea drinks had outstanding performances. Brand chain tea drinks stores and freshly made tea
drinks in various restaurants made some impacts on the bottled tea drinks market. Tea and natural plant intensive
processing products possess with natural and healthy properties, the consumption upgrade of the consumer market
has the high-end, healthy, and young consumer trends, the tea drinks and plant drinks still have a huge space for
development in the future.
3. Competitive landscape
Due to slowdown in domestic soft drinks market, especially consumption in bottled tea drinks declined slightly,
demand for raw material of tea and deep processing products of plants is weak, to some extent, all these factors
affect the development of tea and deep processing products. At the same time, rising raw material prices also led
to a substantial increase in the cost of production; fierce price competition in the industry also have an impact on
the benefits.
深圳市深宝实业股份有限公司 2016 年年度报告全文
Domestic traditional tea market have matured, prices remain relatively reasonable; Benefits of tea companies
maintain a good level. E-commerce becomes more competitive. Using the Internet and new media to promote the
marketing will be more common; the emergence of new cross-border joint or cooperative mode is to be seen in
the industry. Security remains a challenge to the development of the industry.
(II) Development Strategy
Seize the opportunity to pool resources and take deep processing of tea and natural plant as the core to build
industrial chain integrating natural health products and services, extending to tea park base and fine tea business.
Conduct the implementation of industrialization, standardization and internationalization, put efforts to enhance
synergies of tea industrial chain and creation capabilities of traditional industry value, thus the Company develops
into a most valuable listed Company in tea industry.
(III) Operation plan for year of 2017
1. On the basis of summing up the company's existing strategic planning, combine with the company's existing
industrial layout and market trends and make strategies for the company’s development in the next three years.
2. Continue to invest in the company’s scientific research, develop innovation work in product, technology,
management and other aspects, aim at increasing the commercialization rate of scientific research products,
integrate the existing research and development team, technical equipment, product resources, and industrial
resources, develop products facing the health consumption, and improve the competitiveness and market
profitability of the company's products.
3. Integrate and optimize the company's terminal business, build the terminal channel system for Shenbao
products, and establish the \"Teabank\" unified marketing platform.
4. Speed up the pace of deep processing and product upgrading of the food and beverage business sector, develop
towards the health nutrition ingredients and terminal health products market, as well as the natural, functional
food and beverage market. Focus on the target market, increase the main business income, and enhance
profitability.
5. Improve the supply chain business sector industry system, including tea trade, warehousing logistics, supply
chain finance, rating and identification, continue to expand the business scale and platform influence of Yunnan
pu'erh tea trading center, and cooperate with warehousing logistics, trade, supply chain finance and other
businesses to land and carry out.
6. Continue to optimize the talent structure, and attract and keep talents through the company’s mechanism
innovation.
7. Optimize and improve the information management platform of financial business.
8. Continue to strengthen the production and food safety work, and ensure the annual safety production liability
accident is 0.
9. Fund demand and the using plans: in the future, in order to enhance the company's business development
capacity, it’s needed to gradually put into the development funds, the company will take full advantage of various
深圳市深宝实业股份有限公司 2016 年年度报告全文
financial instruments based on the actual strategic plan and overall fund arrangement to reduce fund use costs,
meet fund demand, and ensure the company’s sustainable development.
(IV) Unfavorable factors and countermeasures the company may face in the development
1. In recent years, the domestic beverage market growth has continued to slow down, subject to the decline in
customer market, increase in the company’s costs, and intensifying industrial competition and other reasons, the
profits have slightly decreased; the company's business sectors in the market just cut a striking figure, the
recognition is limited, and the expected return has been relatively slow. In 2017, the company will increase the
efforts to upgrading of existing products, speed up the establishment of product databases, continue to adjust the
product structure, product type, sales channels, and strive to improve the earnings.
2. The business structure transformation and upgrading face challenges, the enterprise operating costs continue to
increase, the profit margins are squeezed, and the scale profit margins need to be improved. In 2017, the company
will continue to enhance the core strength of scientific research, promote the product upgrading and innovation to
enhance market competitiveness, and increase the overall profit margins.
3. In recent years, \"internet +\", sharing economy, and experience economy have risen, the development
environment and consumer trends have been changing, the company's business structure and talent structure have
been relatively single, the team construction has lagged behind and talent team has lacked, resulting in insufficient
innovation ability and strain capacity when the company facing competition of new areas in the new business
cultivation, which increased the cycle and costs of business transformation. In 2017, the company will continue to
introduce foreign professionals, cultivate internal directed talents, strengthen the talent echelon construction,
break through the upward development channels for staff, create career development opportunities, and complete
the company's employer brand building at the same time, and strengthen corporate culture propaganda.
X. Research reception, communication and interview activities
1. Registration form of research reception, communication and interview in the Period
□ Applicable √ Not applicable
There were noresearch reception, communication and interview activities occurred in the period
深圳市深宝实业股份有限公司 2016 年年度报告全文
Section V. Important Events
I. 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 during the Reporting Period
√ Applicable □ Not applicable
In reporting period, no adjustment and change happened to profit distribution rule.
Special explanation on cash dividend policy
Satisfy regulations of General Meeting or requirement of Article
Y
of Association (Y/N):
Well-defined and clearly dividend standards and proportion
Y
(Y/N):
Completed relevant decision-making process and mechanism
Y
(Y/N):
Independent directors perform duties completely and play a
Y
proper role (Y/N):
Minority shareholders have opportunity to express opinions and
Y
demands totally and their legal rights are fully protected (Y/N):
Condition and procedures are compliance and transparent while
Y
the cash bonus policy adjusted or changed (Y/N):
Profit distribution plan (pre-plan) of common stock and capitalizing of common reserves plan (pre-plan) in latest
three years (including the reporting period)
The equity distribution plan for 2014: No cash dividend, no bonus shares as well as carried-put shares from capital
reserve.
The equity distribution plan for 2015: Based on capital share of 301,080,184 on 31 Dec 2015, carried out 2 shares
every 10-share to all shareholders using capital reserve, no cash dividend and no bonus share.
The equity allocation plan, deliberated and approved by the Board Meeting, are as: based on total shares capital of
the Company 451,620,276 shares dated 31st December 2016, distribute 0.50 Yuan (tax included) bonus for each 10
shares held by shareholders, one bonus shares (tax included), and no capitalization of common reserves.
Particulars for cash dividend of common share for 3 years (this period included)
In RMB
Net profit Ratio in net profit
attributable to attributable to
Year for bonus Amount for cash common stock common stock Amount for cash Proportion for cash
shares bonus (tax included) shareholders of shareholders of bonus by other ways bonus by other ways
listed Company in listed Company
consolidation contained in
深圳市深宝实业股份有限公司 2016 年年度报告全文
statement for bonus consolidation
year statement
2016 22,581,013.80 96,620,658.92 23.37% 0.00 0.00%
2015 0.00 -35,256,169.10 0.00% 0.00 0.00%
2014 0.00 13,323,820.43 0.00% 0.00 0.00%
The Company gains profits in reporting period and the retained profit of common stock shareholders provided by
parent Company is positive but no plan of cash dividend proposed of common stock
□Applicable √Not applicable
II. Profit distribution plan and capitalization of common reserves plan
√Applicable □Not applicable
Bonus shares for every 10-share (Share)
Dividends for every 10-share (RMB) (Tax
0.50
included)
Shares added for every 10-share base
(Share)
Equity base of distribution plan (Share) 451,620,276
Total cash dividend(RMB) (Tax included) 22,581,013.80
Distributable profits (RMB) 283,746,524.30
Ratio of cash dividend in total profit
33.33%
distribution
Cash dividend:
The Company is on the way of developing and has arrangement for major fund expenditure, cash dividend
should taking minimum of 20% in the profit distribution while allocate the profit.
Detail explanation on profit distribution or capitalization from capital public reserve
In line with the audited by Dahua CPA, the net profit attributable to owners of parent company in consolidate
statement amounted as 96,620,658.92 Yuan, net profit of parent company as 50,656,189.07 Yuan, minors the
5,065,618.91 Yuan, withdraw as statutory surplus reserve, plus profit available for distributed in statement of
2015 parent company -- 238,155,954.14 Yuan, the profit available for distributed in parent company’s statement
for year of 2016 was 283,746,524.30 Yuan, and the profit available for distributed in consolidate statement for
year fo 2016 was 158,239,612.94 Yuan.
According to the relevant laws and regulations and the provisions of \"Articles of Association\", considering the
interests of the shareholders, BOD plans to submit the Equity Allocation Plan for year of 2016 to Shareholders
General Meeting, based on total shares capital of the Company 451,620,276 shares dated 31st December 2016,
distribute 0.50 Yuan (tax included) bonus for each 10 shares held by shareholders, one bonus shares (tax
included), and no capitalization of common reserves.
Total share capital of the Company will increase to 496,782,303 shares (based on the registration in Shenzhen
Branch of CSDC) after allocation. The equity allocation needs to deliberate and approve by Shareholders
深圳市深宝实业股份有限公司 2016 年年度报告全文
General Meeting.
III. Implementation of commitment
1. Commitments completed in Period and those without completed till end of the Period from actual
controller, shareholders, related parties, purchaser and companies
√ Applicable □ Not applicable
Type of
Commit
Commitment Implem
Commitments Promise commitme Content of commitments ment
term entation
date
nts
Commitments for
Share Merger Reform
Commitments in
report of
acquisition or equity
change
Commitments in
assets reorganization
Commitments make in
initial public offering
or re-financing
Equity incentive
commitment
1. Enlarged
the shares
Zheng Yuxi; Some directors, supervisors and senior
before 10
Yan Zesong; Enlarged management promised voluntarily to raised
August 2015
Other commitments Lin Hong; Li shares and capital to achieve more share-holding of A
2015-07 and 2. not to Comple
for medium and small Fang; Li restricted stock (000019) within one month since 10
-10 reducing the ted
shareholders Yiyan; Yao sales July 2015, and would not sell within 6
stock within 6
Xiaopeng; promise months. Details please refer to notice
months after
Wang Zhiping disclosed on Juchao website.
increase
holding
Completed on
Y
time(Y/N)
2. Concerning assts or project of the Company, which has profit forecast, and reporting period still in
forecasting period, explain reasons of reaching the original profit forecast
□ Applicable √ Not applicable
深圳市深宝实业股份有限公司 2016 年年度报告全文
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
VI. Particulars about the changes in aspect of accounting policy, estimates and calculation
method compared with the financial report of last year
□ Applicable √ Not applicable
No changes of accounting policy, estimates and calculation method in the Period
VII. Major accounting errors within reporting period that needs retrospective restatement
□ Applicable √ Not applicable
No major accounting errors within reporting period that needs retrospective restatement for the Company in the period.
VIII. Compare with last year’s financial report; explain changes in consolidation statement’s
scope
√ Applicable □ Not applicable
1. Subsidiary included in consolidate statement
Name Reasons
Pu’er Tea Trading Center Enterprise combined not under the same control
Shenbao Rock Tea New establihsed after division
Yidaxiang Real Estate New establihsed
Huizhou Shenbao Food New establihsed
2. Subsidiary, special purpose entity, and operational entities lose controlling rights by entrusted operation or
commissioned rental
Name Reason for change
Shenbao Shengyuan Loss of control after equity transferred
Shenbao Yuxing Loss of control after division
Yidaxiang Real Estate Disposal
深圳市深宝实业股份有限公司 2016 年年度报告全文
IX. Appointment and non-reappointment (dismissal) of CPA
Accounting firm appointed
Name of domestic accounting firm Dahua Certified Public Accountants (Special General Partnership)
Remuneration for domestic accounting firm (in 10
thousand Yuan)
Continuous life of auditing service for domestic
9-year
accounting firm
Name of domestic CPA Chen Baohua, Su Qing
Whether re-appointed accounting firms in this period or not
□ Yes √ No
Appointment of internal control auditing accounting firm, financial consultant or sponsor
√ Applicable □ Not applicable
During the reporting period, Dahua Certified Public Accountants (Special General Partnership) was hired as the internal control
audit institutions of the Company, RMB 250,000 for internal control audit fee.
X. Particular about suspended and delisting after annual report disclosed
□ Applicable √ Not applicable
XI. Bankruptcy reorganization
□ Applicable √ Not applicable
No bankruptcy reorganization for the Company in reporting period
XII. Significant lawsuits and arbitrations of the Company
□Applicable √Not applicable
No significant lawsuits and arbitrations occurred in the reporting period
XIII. Penalty and rectification
□ Applicable √ Not applicable
No penalty and rectification for the Company in reporting period.
XIV. Integrity of the Company and its controlling shareholders and actual controllers
√ Applicable □ Not applicable
深圳市深宝实业股份有限公司 2016 年年度报告全文
During the reporting period, the Company and its controlling shareholder, actual controller always obeyed final judgment in the court
case, relatively large amount of debt overdue and other non-compliance.
XV. Implementation of the Company’s stock incentive plan, employee stock ownership plan
or other employee incentives
□ Applicable √ Not applicable
During the reporting period, the Company has no stock incentive plan, employee stock ownership plan or other employee incentives
that have not been implemented.
XVI. Major related transaction
1. Related transaction with routine operation concerned
□ Applicable √ Not applicable
No related transaction occurred in the period with routin operation concerned
2. Assets or equity acquisition, and sales of assets and equity
□ Applicable √ Not applicable
No related transaction concerning the asses or equity acquisition and sold at period-end
3. Related transaction of foreign investment
□ Applicable √ Not applicable
No related transaction of foreign investment occurred at period-end
4. Related credits and liabilities
□ Applicable √ Not applicable
No related credits and liabilities occurred in period
5. Other major related transaction
□ Applicable √ Not applicable
No other major related transaction in the Period
深圳市深宝实业股份有限公司 2016 年年度报告全文
XVII. Significant contract and implementations
1. Trusteeship, contract and leasing
(1) Trusteeship
□ Applicable √ Not applicable
No trusteeship for the Company in reporting period
(2) Contract
□ Applicable √ Not applicable
No contract for the Company in reporting period
(3) Leasing
□ Applicable √ Not applicable
No leasing in the Period
2. Major Guarantee
√ Applicable □ Not applicable
(1) Guarantee
In 10 thousand Yuan
External Guarantee (not including guarantees to subsidiaries)
Related Actual date of Complet
Guarant
Name of the Announce happening Actual e
Guarantee Guarantee Guarantee ee for
Company ment (Date of guarantee implem
limit type term related
guaranteed disclosure signing limit entation
party
date agreement) or not
Guarantee for the subsidiaries
Related Actual date of Complet
Guarant
Name of the Announce happening Actual e
Guarantee Guarantee Guarantee ee for
Company ment (Date of guarantee impleme
limit type term related
guaranteed disclosure signing limit ntation
party
date agreement) or not
Shenzhen Shenbao
Joint
Huacheng Science
3,000 2016-07-26 3,000 liability 1 year N Y
and Technology
guaranty
Co.,Ltd
Total amount of approving Total amount of actual
guarantee for subsidiaries in 3,000 occurred guarantee for 3,000
report period (B1) subsidiaries in report
深圳市深宝实业股份有限公司 2016 年年度报告全文
period (B2)
Total amount of approved Total balance of actual
guarantee for subsidiaries at guarantee for
3,000 3,000
the end of reporting period subsidiaries at the end
(B3) of reporting period (B4)
Guarantee of the subsidiaries for the subsidiaries
Related Actual date of Complet
Guarant
Name of the Announc happening Actual e
Guarante Guarantee Guarantee ee for
Company ement (Date of guarantee implem
e limit type term related
guaranteed disclosure signing limit entation
party
date agreement) or not
Total amount of guarantee of the Company( total of three abovementioned guarantee)
Total amount of actual
Total amount of approving
occurred guarantee in
guarantee in report period 3,000 3,000
report period
(A1+B1+C1)
(A2+B2+C3)
Total balance of actual
Total amount of approved
guarantee at the end of
guarantee at the end of report 3,000 3,000
report period
period (A3+B3+C2)
(A4+B4+C4)
The proportion of the total amount of actually guarantee
2.91%
in the net assets of the Company(that is A4+ B4+C4)
Including:
Amount of guarantee for shareholders, actual controller
and its related parties(D)
The debts guarantee amount provided for the guaranteed
parties whose assets-liability ratio exceed 70% directly
or indirectly(E)
Proportion of total amount of guarantee in net assets of
the Company exceed 50%(F)
Total amount of the aforesaid three guarantees(D+E+F)
Explanations on possibly bearing joint and several
liquidating responsibilities for undue guarantees (if Not applicable
applicable)
Explanations on external guarantee against regulated
Not applicable
procedures (if applicable)
Explaination on compound guarantee
N/A
(2) Illegal external guarantee
□ Applicable √ Not applicable
No illegal external guarantee in the period
深圳市深宝实业股份有限公司 2016 年年度报告全文
3. Cash asset management
(1) Trust financing
√ Applicable □ Not applicable
In 10 thousand Yuan
Amount of
Principal reserve for
Whether Actual
Trust Criteria for actually devaluation Actual
related Anticipated collected
Name Type financing Start date End date fixing collected of gains/losses
trade or income gains/losses
amount reward in the withdrawing in period
not in period
Period (if
applicable)
Shenzhen
branch of
Bank
Shanghai Guaranteed Full
N financing 3,000 2016-01-22 2016-04-22 3,000 0 22.50 22.50
Pudong earnings recovery
products
Development
Bank
Shenzhen
branch of
Bank
Shanghai Guaranteed Full
N financing 3,000 2016-02-26 2016-05-26 3,000 0 24.00 24.00
Pudong earnings recovery
products
Development
Bank
Shenzhen
branch of
Bank
Shanghai Guaranteed Full
N financing 2,000 2016-06-17 2016-09-18 2,000 0 15.67 15.67
Pudong earnings recovery
products
Development
Bank
Civic Center Bank
Floating Full
Barnch of N financing 5,000 2016-01-21 2016-02-17 5,000 0 20.02 20.02
earnings recovery
CITIC Bank products
Shenzhen
branch of
Bank
Shanghai Guaranteed
N financing 935 2016-12-28 2017-03-28 0 0 7.48 0 Un-collected
Pudong earnings
products
Development
Bank
Total 13,935 -- -- -- 13,000 0 89.67 82.19 --
Capital resource Own funds
深圳市深宝实业股份有限公司 2016 年年度报告全文
Principal uncollected for
overdue and accumulated
earnings
Lawsuit involved (if applicable) Not applicable
Disclosure date for approval
from the Board for trust 2016-04-26
financing (if applicable)
Disclosure date for approval
from board of shareholders for Not applicable
trust financing (if applicable)
Whether has trust financing plan
Yes
in future
(2) Entrusted loans
□ Applicable √ Not applicable
No entrusted loans in the Period
4. Other material contracts
□ Applicable √ Not applicable
No other material contracts for the Company in reporting period
XVIII. Social responsibility
1. Execution of social responsibility of targeted poverty alleviation
The Company has no targeted poverty alleviation in the period and no follow-up poverty alleviationplan either
temporary
2. Execution of other social responsibility
During the reporting period, the Company has been strictly in accordance with \"Company Law\", \"Securities Law\",
\"Articles of Association\" and other relevant laws and regulations, continues to improve governance structure and
regulized operation. the Company attaches importance to social responsibility, sustains attention to social create
value, integrity management according to law, to provide consumers with safe and secure products, high-quality,
green and healthy products to enhance the capacity for sustainable development and overall competitiveness;
making efforts to improve management, enhance innovation capability and core competencies; the Company
uphold a fair, just and open principles of treatment for all investors, with particular emphasis on safeguarding the
interests of minority shareholders; the Company strictly comply with national environmental laws and regulations,
深圳市深宝实业股份有限公司 2016 年年度报告全文
thoroughly implement green philosophy, strengthen ecological protection, comply with the overall development of
the country and society, and strive to achieve economic and social benefits, short-term interests and long-term
interests of their own development and social development, coordination, thus achieve healthy and harmonious
development between the Company and the community, the Company and the environment.
The listed Company and subsidiaries is in the range of heavy pollution industry that regulated by State
environment protection departments
□Yes √No
Whether the social responsibility report released
□Yes √No
XIX. Explanation on other significant events
√ Applicable □ Not applicable
In reporting period, the 100% equity of wholly-owned subsidairy Yidaxiang Real Estate were sold by the
Company in way of publicly listing, relevant registration of industry and commerce have completed, found more
in the “Notice of 100% equity of Yidaxiang Real Estate Transfer” and three “progress notices of100% equity of
Yidaxiang Real Estate Transfer” released respectively on 29 September 2016, 5 December, 14 December and 27
December on Juchao Website (www.cninfo.com.cn).
XX. Significant event of subsidiary of the Company
√ Applicable □ Not applicable
Found more in “XIX. Explanation on other significant events”
深圳市深宝实业股份有限公司 2016 年年度报告全文
Section VI. Changes in Shares and Particulars about Shareholders
I. Changes in Shares
1. Changes in shares
In Share
Before the Change Increase/Decrease in the Change (+, -) After the Change
New
Bon
share Capitalization
us Propor
A mount Proportion s of public Others Subtotal A mount
shar tion
issue reserve
es
d
I. Restricted shares 17,615,441 5.85% 8,807,720 2,700 8,810,420 26,425,861 5.85%
1. State-owned shares 0 0.00% 0 0 0 0 0.00%
2. State-owned
8,140,475 2.70% 4,070,238 0 4,070,238 12,210,713 2.70%
corporate shares
3. Other domestic
9,442,641 3.14% 4,721,320 2,700 4,724,020 14,166,661 3.14%
shares
Including: Domestic
9,324,141 3.10% 4,662,070 0 4,662,070 13,986,211 3.10%
legal person’s shares
Domestic
118,500 0.04% 59,250 2,700 61,950 180,450 0.04%
nature person’s shares
4. Foreign shares 32,325 0.01% 16,162 0 16,162 48,487 0.01%
Including: Foreign
0 0.00% 0 0 0 0 0.00%
corporate shares
overseas
32,325 0.01% 16,162 0 16,162 48,487 0.01%
nature person’s share
94.15
II. Un-restricted shares 283,464,743 94.15% 141,732,372 -2,700 141,729,672 425,194,415
%
1. RMB common 83.73
252,101,543 83.73% 126,050,772 -2,700 126,048,072 378,149,615
shares %
2. Domestically listed 10.42
31,363,200 10.42% 15,681,600 0 15,681,600 47,044,800
foreign shares %
3. Foreign listed
0 0.00% 0 0 0 0 0.00%
foreign shares
4. Other 0 0.00% 0 0 0 0 0.00%
100.00
III. Total shares 301,080,184 100.00% 150,540,092 0 150,540,092 451,620,276
%
Reasons for share changed
深圳市深宝实业股份有限公司 2016 年年度报告全文
√ Applicable □ Not applicable
In June 2016, the Company implemente an equity allocation scheme for year fo 2015, based on total share captial
301,080,184 shares of the Company, increase 5 shares for each 10 shares held by shareholders with captial
reserves, toally 150,540,092 shares increase by transferring. Found more in the Notice released on juchao website
(www.cninfo.com.cn) dated 15 June 2016.
In October 2016, independent director of the Company purchased 3,600 shares (A-stock) of the Company.
According to relevant regulations on shares held by directors, supervisors and senior executives, the 3,600 shares
are automatically lock-up for trading with 75%, that is 2,700 shares. Found more in the Notice released on juchao
website (www.cninfo.com.cn) dated 13 October 2016.
Approval of share changed
√ Applicable □ Not applicable
The equity allocation scheme for year of 2015 was deliberated and approved by 4th session of 9th BOD held by
22 April 2016 and AGM of 2015 held on 17 May 2016.
Ownership transfer of share changed
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to
common shareholders of Company in latest year and period
√ Applicable □ Not applicable
In reporting period, after equity allocate for year of 2015, the basic EPS for year of 2015 and 2016, based on new
share capital 451,620,276 shares, counted as -0.0781 Yuan/Share and 0.2139 Yuan/Share respectively; net assets
value per share counted as 2.0707 Yuan/Share and 2.2846 Yuan/Share respectively
Other information necessary to disclose or need to disclosed under requirement from security regulators
□ Applicable √ Not applicable
2. Changes of restricted shares
√ Applicable □ Not applicable
In Share
Number of Number of
Number of Number of
shares shares
Shareholder shares new shares Restriction
restricted restricted Released date
s’ name released in restricted in reasons
at at
the Year the Year
Period-beg Period-end
深圳市深宝实业股份有限公司 2016 年年度报告全文
in
Executives locked Shares unlock every year takes 25% of the total
Zheng Yuxi 30,000 0 15,000 45,000
shares shares helding
Executives locked Shares unlock every year takes 25% of the total
Lin Hong 18,750 0 9,375 28,125
shares shares helding
Executives locked Shares unlock every year takes 25% of the total
Yan Zesong 32,325 0 16,162 48,487
shares shares helding
Executives locked Shares unlock every year takes 25% of the total
Li Fang 18,075 0 9,038 27,113
shares shares helding
Executives locked Shares unlock every year takes 25% of the total
Li Yiyan 18,750 0 9,375 28,125
shares shares helding
Yao Executives locked Shares unlock every year takes 25% of the total
20,175 0 10,087 30,262
Xiaopeng shares shares helding
Wang Executives locked Shares unlock every year takes 25% of the total
12,750 0 6,375 19,125
Zhiping shares shares helding
Executives locked Shares unlock every year takes 25% of the total
Fan Zhiqing 0 0 2,700 2,700
shares shares helding
Total 150,825 0 78,112 228,937 -- --
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 and
liability structure
√ Applicable □ Not applicable
In reporting period, equity allocation for year of 2015 implemented, and independent director of the Company
purchased A-stock of the Company(according to relevant regulations on shares held by directors, supervisors and
senior executives, the shares are automatically lock-up for trading with 75%), total shares of the Company
increased to 451,620,276 shares from 301,080,184 shares, restricted shares up to 26,425,861 shares from
17,615,441 shares and un-restricted shares increased to 425,194,415 shares from 283,464,743.
3. Existing internal staff shares
□ Applicable √ Not applicable
III. Particulars about shareholder and actual controller of the Company
深圳市深宝实业股份有限公司 2016 年年度报告全文
1. Amount of shareholders of the Company and particulars about shares holding
In Share
Total preference
shareholders
Total preference
Total common with voting
Total common shareholders with
stock rights recovered
stock voting rights
shareholders at at end of last
shareholders in 75,418 71,882 recovered at end of 0
end of last month month before
reporting reporting period (if
before annual annual report
period-end applicable) (found
report disclosed disclosed (if
in note8)
applicable)
(found in note8)
Particulars about shares held above 5% by shareholders or top ten shareholders
Number of
share
Total
Proporti Amount of Amount of pledged/froze
Full name of Nature of on of shareholders Changes in
restricted shares un-restricted n
Shareholders shareholder shares at the end of report period
held held shares held State
report period Amo
of
unt
share
Shenzhen
Agricultural Other 19.09% 86,211,176 28,737,059 13,986,211 72,224,965
Products Co., Ltd
Shenzhen
State-owned
Investment 16.00% 72,258,457 24,086,153 12,210,713 60,047,744
legal person
Holding Co., Ltd
Domestic
Sun Huiming 0.72% 3,263,775 1,087,925 0 3,263,775
nature person
Domestic
Jiang Xulu 0.43% 1,932,700 1,932,700 0 1,932,700
nature person
Guangzhou Luoer
Equity Investmetn Domestic
Fund Management non-state-own
0.42% 1,909,000 1,909,000 0 1,909,000
Enterprise ed legal
(General person
partnership)
Domestic
Jiang Xurong 0.42% 1,895,109 1,895,109 0 1,895,109
nature person
Li Qian Domestic 0.30% 1,352,302 1,352,302 0 1,352,302
深圳市深宝实业股份有限公司 2016 年年度报告全文
nature person
Central Huijin
Asset State-owned
0.30% 1,338,750 446,250 0 1,338,750
Management Co., legal person
Ltd.
Domestic
Han Youqun 0.27% 1,220,000 1,220,000 0 1,220,000
nature person
Domestic
Xu Yanhui 0.22% 975,000 242,100 0 975,000
nature person
Strategy investors or general
corporation comes top 10
N/A
shareholders due to rights issue (if
applicable) (see note 3)
Shenzhen SASAC directly holds 28.76% equity interests of Agricultural Products, indirectly
holds 5.24% equity interests of Agricultural Products and directly holds 100% equity interests of
Explanation on associated Shenzhen Investment Holding; Jiang Xurong holds 80% equity of Guangzhou Luoer Equity
relationship among the aforesaid Investmetn Fund Management Enterprise (General partnership); Except for this, the Company
shareholders was not aware of any related relationship between other shareholders above, and whether they
belonged to parties acting in concert as defined by the Acquisition Management Method of
Listed Company.
Particular about top ten shareholders with un-restrict shares held
Amount of un-restrict shares held at Type of shares
Shareholders’ name
Period-end Type Amount
Shenzhen Agricultural Products Co., Ltd 72,224,965 RMB common shares 72,224,965
Shenzhen Investment Holding Co., Ltd 60,047,744 RMB common shares 60,047,744
Domestically listed
Sun Huiming 3,263,775 3,263,775
foreign shares
Jiang Xulu 1,932,700 RMB common shares 1,932,700
Guangzhou Luoer Equity Investmetn
Fund Management Enterprise (General 1,909,000 RMB common shares 1,909,000
partnership)
Jiang Xurong 1,895,109 RMB common shares 1,895,109
Li Qian 1,352,302 RMB common shares 1,352,302
Central Huijin Asset Management Co.,
1,338,750 RMB common shares 1,338,750
Ltd.
Han Youqun 1,220,000 RMB common shares 1,220,000
Xu Yanhui 975,000 RMB common shares 975,000
Expiation on associated relationship or Shenzhen SASAC directly holds 28.76% equity interests of Agricultural Products,
consistent actors within the top 10 indirectly holds 5.24% equity interests of Agricultural Products and directly holds 100%
深圳市深宝实业股份有限公司 2016 年年度报告全文
un-restrict shareholders and between top equity interests of Shenzhen Investment Holding; Jiang Xurong holds 80% equity of
10 un-restrict shareholders and top 10 Guangzhou Luoer Equity Investmetn Fund Management Enterprise (General
shareholders partnership); Except for this, the Company was not aware of any related relationship
between other shareholders above, and whether they belonged to parties acting in
concert as defined by the Acquisition Management Method of Listed Company.
In reporting period, shareholder of the Company – Jiang Xulu holds 1,932,700 shares of
the Company through secured account for customer credit transaction of Guoyuan
Securities Co., Ltd.; shareholder – Jiang Xurong holds 1,554,109 shares of the Company
Explanation on top 10 shareholders through secured account for customer credit transaction of Guoyuan Securities Co.,
involving margin business (if applicable) Ltd.; shareholder –Guangzhou Luoer Equity Investmetn Fund Management Enterprise
(see note 4) (General partnership) holds 1,449,700 shares of the Company through secured account
for customer credit transaction of Guoyuan Securities Co., Ltd. and shareholder –Han
Youqun holds 1,220,000 shares of the Company through secured account for customer
credit transaction of Shenwan Hongyuan Securities Co., Ltd
Whether top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held have a buy-back
agreement dealing in reporting period
□ Yes √ No
The top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held of the Company have no
buy-back agreement dealing in reporting period.
2. Controlling shareholder of the Company
Nature of controlling shareholders: local state-owned holding
Type of controlling shareholders: legal person
Legal
Controlling person/perso Date of
Organization code Main operation business
shareholders n in charge foundation
of the unit
Develop, construction, management and operation of the
agricultural products wholesale market (business license for
wholesale market of agricultural products should applying in
addition), management the leasing business of market; internal
commerce, supply and marketing industry for materials
(excluding monololy, special control commodities); agricutural
Shenzhen products business, wholesale of aquatic products, chain
Agricultural 1989-01-1 business and import & export business (business license
Cai Yin 91440300192179163P
Products 4 should required for specific operations); provids supporting
Co., Ltd guest house, buffet, food& drink shop and business of
transportation, loading & unloading, warehousing and
packaging (business license should required for specific
operations); engaged in information consultation (excluding
items needs approvals that prohibit and regulated by the laws,
administrative management and State Council), property
management, hotel management and owned property leasing;
深圳市深宝实业股份有限公司 2016 年年度报告全文
market investment and investment of industrial (specific items
should be declare for operation)
Equity of
other
domestic/ov
ersea listed
Company
control by
Found more in annual report 2016 under the name of Agricultural Products
controlling
shareholder
as well as
stock-joint
in report
period
Changes of controlling shareholders in reporting period
□ Applicable √ Not applicable
The Company had no changes of controlling shareholders in reporting period
3. Actual controller of the Company
Nature of actual controller: local state-owned assets management
Type of actual controller: legal person
Legal
Date of
Actual controlling shareholders person/person in Organization code Main operation business
foundation
charge of the unit
Shenzhen Municipal People’s
State-owned assets
Government State-owned
Peng Haibin 2004-04-02 11440300K317280672 supervision and
Assets Supervision &
administration
Administration Commission
Equity of other
domestic/foreign listed
-
Company controlled by actual
controller in reporting period
Changes of actual controller in reporting period
□ Applicable √ Not applicable
No changes of actual controllers for the Company in reporting period.
Property right and controlling relationship between the actual controller and the Company is as follow:
Shenzhen Municipal People’s Government State-owned
Assets Supervision and Administration Commission
深圳市深宝实业股份有限公司 2016 年年度报告全文
100% 28.76%
100%
Shenzhen Yuanzhi Investment Co., Ltd.
Shenzhen Investment Holdings Co., Ltd.
100%
5.22% Shenzhen Yixin Investment Co., Ltd.
0.02%
Shenzhen Agricultural Products Co., Ltd.
16%
19.09%
Shenzhen Shenbao Industrial Co., Ltd.
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
Legal
rep./perso
Date Register
Corporate shareholders n in Main business or management activity
established capital
charge of
unit
Invest, operate and manage the state-owned stock rights
of wholly-owned, controlling and shareholding
enterprises by reorganization and integration, capital
operation and assets disposal; engage in real estate
Shenzhen Investment Holding Peng RMB 21580 development and business operations within the scope of
2004-10-13
Co., Ltd Haibin million legal acquisition of land use rights; make policy and
strategic investments according to the requirements of
the Shenzhen City SASAC; provide guarantee for the
municipal state-owned enterprises; the Shenzhen City
SASAC authorizes to carry out other businesses.
5. Limitation and reducing the holdings of shares of controlling shareholders, actual controllers,
restructuring side and other commitment subjects
□ Applicable √ Not applicable
深圳市深宝实业股份有限公司 2016 年年度报告全文
Section VII. Preferred Stock
□ Applicable √ Not applicable
The Company had no preferred stock in the Period.
深圳市深宝实业股份有限公司 2016 年年度报告全文
Section VIII. Particulars about Directors, Supervisors, Senior
Executives and Employees
I. Changes of shares held by directors, supervisors and senior executives
Increasi
ng Decreasin
Post- Shares Shares
shares g shares Other
holdi Se Ag Start dated of office held at held at
Title End date of office term held in held in changes
Name ng x e term period-beg period-en
this this period (share)
status in (Share) d(Share)
period (Share)
(Share)
Curre
Party
Zheng ntly
Secretary, M 55 2015-9-10 2018-9-10 40,000 0 0 20,000 60,000
Yuxi in
Chairman
office
Curre
Li ntly
Director F 52 2015-9-10 2018-9-10 0 0 0 0
Jinhua in
office
Curre
Liu ntly
Director M 47 2015-9-10 2018-9-10 0 0 0 0
Zhengyu in
office
Curre
HuangY ntly
Director M 43 2015-9-10 2018-9-10 0 0 0 0
u in
office
Curre
Fan Independent ntly
M 68 2015-9-10 2018-9-10 0 3,600 0 0 3,600
Zhiqing director in
office
Curre
Wu Independent ntly
M 64 2015-9-10 2018-9-10 0 0 0 0
Shuping director in
office
Chen Independent Curre
M 45 2015-9-10 2018-9-10 0 0 0 0
Cansong director ntly
深圳市深宝实业股份有限公司 2016 年年度报告全文
in
office
Curre
Yan ntly
Director, GM M 47 2015-9-10 2018-9-10 43,100 0 0 21,549 64,649
Zesong in
office
Director、 Curre
Deputy GM, ntly
Li Yiyan F 51 2015-9-10 2018-9-10 25,000 0 0 12,500 37,500
Secretary of in
the Board office
Curre
Chairman of
Lin ntly
supervisory F 52 2015-9-10 2018-9-10 25,000 0 0 12,500 37,500
Hong in
committee
office
Curre
Li ntly
Supervisor M 45 2015-9-10 2018-9-10 0 0 0 0 0
Xinjian in
office
Curre
Luo ntly
Supervisor M 56 2015-9-10 2018-9-10 0 0 0 0 0
Longxin in
office
Deputy party Curre
secretary, ntly
Li Fang F 43 2015-9-10 2018-9-10 24,100 0 0 12,051 36,151
SCID, Deputy in
GM office
Curre
Qian ntly
Deputy GM M 45 2015-9-10 2018-9-10 0 0 0 0 0
Xiaojun in
office
Curre
Yao
ntly
Xiaopen Deputy GM M 49 2015-9-10 2018-9-10 26,900 0 0 13,450 40,350
in
g
office
Curre
Wang ntly
CFO F 46 2015-9-10 2018-9-10 17,000 0 0 8,500 25,500
Zhiping in
office
Total -- -- -- -- -- -- 201,100 3,600 0 100,550 305,250
深圳市深宝实业股份有限公司 2016 年年度报告全文
II. Changes of directors, supervisors and senior executives
□ Applicable √ Not applicable
III. Post-holding
Professional background, major working experience and present main responsibilities in Company of directors,
supervisors and senior executive
(i) Director
Mr. Zheng Yuxi: bachelor degree of economics, was born in 1962. He has served successively as director and
Deputy GM of underling enterprise of Shenzhen Special Economic Region Free Commodities Enterprises,
Chairman of Shenzhen Agri-Pastoral Enterprises Co., Ltd., assistant GM and Deputy GM and GM of the
Company, Chairman of 7th session of the Board and Party Secretary; and now serves as Chairman of 8th BOD and
Party Secretary.
Ms. Li Jinhua, was born in 1965, a Master of Engineering. She successively served as the director of GM office
of Shenzhen Agricultural Products Co., Ltd; GM of Shenzhen Haijixing International Logistic Park Management
Co., Ltd.; the GM of Shenzhen Buji Wholesale market of the Agricultural Products; chief of the H&R dept. of
Shenzhen Agricultural Products Co., Ltd. Now she serves as the deputy president of the labor union in Shenzhen
Agricultural Products Co., Ltd and director of the 9th BOD of the Company
Mr. Liu Zhengyu: born in 1970, master of business administration, senior accountant. Ever posted as section
head, deputy director of the Shenzhen SASAC; deputy director of investigation department, Shenzhen
state-owned assets supervision and administration supervision; deputy director and chief director of investigation
department, Shenzhen People's government state-owned assets supervision and administration commission, chief
accountant of Shenzhen Investment Holding co., LTD., director of Shenzhen Urban Construction Development
(Group) Co., Ltd.,; now he serves as deputy GM of Shenzhen Investment Holding Co., Ltd, supervisor of China
Nanshan development group; and director of 9th BOD of the Company.
Mr. Huang Yu, was born in 1974, a MBA, senior accountant and Chinese CPA. He has served successively as
principal staff member in social service department and second enterprise office of Shenzhen Municipal People’s
Government State-owned Assets Supervision & Administration Commission; deputy director, director and office
chief in financial budget department of Shenzhen Investmetn Holding Co., Ltd., director of Shenzhen Yuetong
Construction Engineering Co., Ltd. Now he serves as chief account in Shenzhen Investmetn Holding Co., Ltd.;
director of Shenzhen General Institute of Architectural Design and Research Co., Ltd; dierctor of Shenzhen Urban
Construction Development (Group) Co., Ltd and Shenzhen Kunpeng Equity Investment Management Co., Ltd.;
and director of 9th BOD of the Company.
Mr. Fan Zhiqing, was born in 1949, a graduate degree, a senior accountant and senior economist. He has served
successively as judge of title of a senior professional post in Guangdong Province and panelists, financial manager
and CFO of large state-run or joint venture in Shenzhen, guest professor of Shenzhen University and Shenzhen
Managers College, independent Director of Ocean’s King Lighting Science & Technology Co., Ltd.;
independent Director of Shenzhen Kingsignal Technology Co., Ltd.; Independent director of Shenzhen Universe
深圳市深宝实业股份有限公司 2016 年年度报告全文
Group; he also served as independent director of 5th, 6th and 8th BOD of the Company;independent director of
Shenzhen Shahe Induatrial Co., Ltd; now he serves as independent director of Shenzhen SEG Co., Ltd. and
independent director of 9th BOD of the Company.
Mr. Wu Shuping, was born in 1953, a Master degree and senior economist. He has served successively as deputy
factory director of Shanghai Starter Motor Factory; deputy director of comprehensive division of General Office
of Shanghai Municipal People’s Government; Director and Deputy President of Asia Commerce Enterprises
Consultant Co., Ltd.and Independent Director of Shenzhen Agricultural Products Co., Ltd and Chengdu Hi-Tech
Investment Group. Now he serves as GM of Shanghai Baiyan Enterprise Management Consultant Co., Ltd, and
Independent Director of 9th BOD of the Company.
Mr. Chen Cansong: born in 1972, bachelor degree. Successive director, politics and law committee of the district
party committee, Shantou; assistant lawyer of Guangdong Xincheng Law firm; lawyer of Guangdong Ruite Law
firm; now he is a lawyer and partner of Guangdong Dena Law Firm; outside director of Shenzhen State-owned
Duty Free Commodities (Group) Co.,Ltd. and independent director of 9th BOD of the Company.
Mr. Yan Zesong, was born in 1970, a university background. He served as Director and GM of Shenzhen
Shenbao Huacheng Food Co., ltd., President and chairman of Shenbao Huacheng Science and Technology Co.,Ltd,
supervisor of 6th Supervisory Committee of the Company and Director of 7th and 8th BOD of the Company. He
now serves as Director and GM of 9th BOD of the Company
Ms. Li Yiyan, was born in 1966, Master Degree, Senior Human Resources Manager. She successively served as
the Deputy Minister and Minister of H&R Department of the Company and supervisors of the 5th and 6th
supervisory committee, director and secretary of 7th BOD of the Company and secretary of 8th BOD. Now she
serves as the directgor of 9th BOD and Deputy GM and Secretary of the Board of the Company
(ii) Supervisor
Ms. Lin Hong, was born in 1965, senior accountant with master degree. She once was the accountant charger of
Shenzhen Native Product & Animal By-Products & Tea I/E Co., accountant charge of Planning and Financial
Department of Hesheng FUR& LEATHER CO., Ltd., deputy minister of Planning and Financial Department of
Shenzhen Foreign Trade Xinhua Enterprise Co., accountant and deputy minister and minister of Planning and
Financial Department of Agricultural Products and chairman of 7th and 8th supervisory committee of the Company.
Now she serves as chairman of 9th supervisory committee of the Company.
Mr. Li Xinjian: born in 1972, bachelor's degree. He successively served as account, Deputy Minister of finance
and accounting division in Shenzhen Urban Construction Development (Group) Co., Ltd. and he was the director
of enterprise management dept.; the minister of Examination and Distribution unit in Shenzhen Investment
Holding Co., Ltd. currently he serves as 3rd business minister of Shenzhen Investment Holding Co., Ltd.; director
of China Resources Ng Fung meat products (Shenzhen) Co., Ltd.; director of Shenzhen Universe Group; director
of Guoxin Securities Co., Lrd.and supervisor of 9th supervisory committee of the Company.
Mr. Luo Longxin, was born in 1961, bachelor degree and researcher in tea science, he took up an appointment in
Tea research lab of Chinese Academy of Agricultural Sciences, working mainly in tea manufacture, tea beverage,
condensed tea juice as well as research and technology development of deep processing of tea leaves, he took
深圳市深宝实业股份有限公司 2016 年年度报告全文
charge of deputy director of research lab for tea manufacture and commissioner of academy commission. In 2008,
he was awarded as Evaluation Expert for The State Technological Invention Award by the state technological
invention award office. he served as charge in production and quality controller in Shenzhen Shenbao Huacheng
Food Co., Ltd. and supervisor of 8th supervisory committee. Now he is CTO, person in charge of R&D center,
supervisor of 9th supervisory committee and chairman of Shenzhen Shenbao Technology Center Co., Ltd.
(iii) Senior executive
Ms. Li Fang, was born in 1974 with master degree. She successively served as main charger, deputy chief,
section chief and deputy director of Secretary Section; deputy minister of H&R Department; deputy director and
director of Office of Supervisory Committee and supervisor of the 5th supervisory committee of Agricultural
Products. Now she serves as deputy party secretary, SCID, deputy GM of the Company and chairman of Shenzhen
Shenbao Properties Management Co., Ltd.
Mr. Qian Xiaojun, was born in 1972, a university background, a food engineer. He served in tea research institute
of Chinese Academy of Agricultural Sciences, mainly engaged in research of further processing of tea as well as
tea-making, tea beverage and concentrated tea; He successively served as technical chief and GM of Shenzhen
Shenbao Huacheng Science and Technology Co., Ltd. Now he serves as Deputy GM of the Company and
chairman of Hangzhou Jufangyong.
Mr. Yao Xiaopeng, was born in 1968, a university background, a food safety division. He has successively
served as deputy GM and GM of Guangdong Shenbao Food Co., Ltd., Chairman of Shenbao Sanjing and GM
assistant of the Company. Now he serves as deputy GM of the Company and chairman of Huizhou Shenbao
Science & Technology Co., Ltd.
Ms. Wang Zhiping, was born in 1971, a university background, an accountant and non-practicing CPA. She has
successively served as auditor, senior auditor and department manager of Shenzhen Dahua CPA; director assistant
and director of accounting and financial department of the Company. Now she serves as CFO of the Company.
Post-holding in shareholder’s unit
√ Applicable □ Not applicable
Weather receiving
Start dated End date
Name Name of shareholder’s units Position of office of office remuneration from
term term
shareholder’s units
Deputy chairman of the
Li Jinhua Shenzhen Agricultural Products Co., Ltd Y
labour union
Liu Zhengyu Shenzhen Investment Holding Co., Ltd Deputy GM Y
HuangYu Shenzhen Investment Holding Co., Ltd Chief accountant Y
Director of Enterprise
Li Xinjian Shenzhen Investment Holding Co., Ltd Y
3rd Dept.
Explaination on
post-holding in N/A
shareholder’s
深圳市深宝实业股份有限公司 2016 年年度报告全文
unit
Post-holding in other unit
√ Applicable □ Not applicable
Weather receiving
Start dated
End date of
Name Name of other units Position of office remuneration
office term
term
from other units
Liu Zhengyu China Nanshan Development Group Supervisor N
Shenzhen Urban Construction Development
Director N
(Group) Co., Ltd
Shenzhen General Institute of Architectural
HuangYu Director N
Design and Research Co., Ltd
Shenzhen Kunpeng Equity Investment
Director N
Management Co., Ltd.
Fan Zhiqing Shenzhen SEG Co., Ltd. Independent director Y
Shanghai Baiyan Enterprise Management
Wu Shuping GM Y
Consultant Co., Ltd,
Guangdong Dena Law Firm Lawyer, partner Y
Chen Cansong Shenzhen State-owned Duty Free Commodities
Outside Director N
(Group) Co.,Ltd
China Resources Ng Fung meat products
Director N
(Shenzhen) Co., Ltd
Li Xinjian
Shenzhen Universe Group Director N
Guoxin Securities Co., Lrd Director N
Explaination
on
N/A
post-holding
in other unit
Punishment of securities regulatory authority in recent three years to the Company’s current and outgoing
directors, supervisors and senior management during the reporting period
□ Applicable √ Not applicable
IV. Remuneration for directors, supervisors and senior executives
Decision-making procedures, determination bases and actual payment of remunerations of directors, supervisors
and senior management
(i) Basis and Decision-making Process for the Annual Reward of Company Directors, Supervisors and Senior
Managers
During the reporting period, according to the headquarter compensation plan and performance measures, the
深圳市深宝实业股份有限公司 2016 年年度报告全文
Company's board meeting remuneration and appraisal committee combined with the Company's annual business
situation and individual performance appraisal result and determined the directors, supervisors and senior
management personnel salary. The subsidiary standard of independent directors is subject to the resolution by the
2012 Annual General Meeting and adjusted as RMB 100,000 (tax included) per year for one person.
(ii) Total Compensation of Directors, Supervisors and Senior Managers
No directors, supervisors and senior executives resigned in the period, current directors, supervisors and senior
executives’ total remneration obtained from the Company at period-end amounting to RMB 4,692,600 before tax
for the year.
Remuneration for directors, supervisors and senior executives in reporting period
In ten thousand Yuan
Whether
Total
remuneration
Post-holding remuneration
Name Title Sex Age obtained from
status obtained from the
related party of
Company
the Company
Party Secretary, Currently in
Zheng Yuxi M 55 63.03 N
Chairman office
Currently in
Li Jinhua Director F 52 0 Y
office
Currently in
Liu Zhengyu Director M 47 0 Y
office
Currently in
HuangYu Director M 43 0 Y
office
Currently in
Fan Zhiqing Independent director M 68 10 N
office
Currently in
Wu Shuping Independent director M 64 10 N
office
Currently in
Chen Cansong Independent director M 45 10 N
office
Currently in
Yan Zesong Director, GM M 47 62.36 N
office
Director, Deputy GM, Currently in
Li Yiyan F 51 54.72 N
Secretary of the Board office
Chairman of Currently in
Lin Hong F 52 49.26 N
supervisory committee office
Currently in
Li Xinjian Supervisor M 45 0 Y
office
Luo Longxin Supervisor M 56 Currently in 41.06 N
深圳市深宝实业股份有限公司 2016 年年度报告全文
office
Deputy party
Currently in
Li Fang secretary, SCID, F 43 45.63 N
office
Deputy GM
Currently in
Qian Xiaojun Deputy GM M 45 45.63 N
office
Currently in
Yao Xiaopeng Deputy GM M 49 36.51 N
office
Currently in
Wang Zhiping CFO F 46 41.06 N
office
Total -- -- -- -- 469.26 --
Delegated equity incentive for directors, supervisors and senior executives in reporting period
□ Applicable √ Not applicable
V. Particulars of workforce
1. Number of Employees, Professional composition, Education background
Employee in-post of the parent Company(people)
Employee in-post of main Subsidiaries (people)
The total number of current employees(people)
The total number of current employees to receive pay (people)
Retired employee’ s expenses borne by the parent Company and
main Subsidiaries(people)
Professional composition
Category of professional composition Numbers of professional composition (people)
Production personnel
Salesperson
Technicians
Financial personnel
Administrative personnel
Total
Education background
Education Numbers (people)
Postgraduate or above
Undergraduate
3-years regular college graduate
深圳市深宝实业股份有限公司 2016 年年度报告全文
Polytechnic school graduate
Senior middle school graduate or below
Total
2. Remuneration Policy
During the reporting period, employee wages was paid monthly according to salary management provisions set by
the Company, and the performance-related pay was issued based on the actual situation of benefit and individual
performance assessment results at the year-end.
3. Training Plan
With the development of corporate strategy planning and the implementation of management by objectives, all
modules of the Company has more diversified and comprehensive quality requirements for all kinds of personnel,
especially key talent in the key positions. Hereby, the company gradually planned and established a learning
organization, covering all employees, in 2016, based on the learning style of carrying on the
association-online-offline “trinity”, adopted the rather mature “action learning” new training methods which have
been used by the world-wide large-scale groups, let employees constitute groups, implemented “learning by
doing” with the mutual supports of team members, and solved the problems in the practical work programs to
achieve its leadership development. In the first phase action learning growth training camp of 2016, the company
focused on the company's business development topics, explored and developed a batch of promising talents, in
2017, the company will also adhere to the \"action learning\" training methods, fully mobilize the enthusiasm of
employees, so that the employees can master the knowledge and skills while solving practical problems, further
improve self-quality, and enhance their own abilities. meanwhile, the Company will take professionalism and
specialization as theme, continue to promote the construction of the training system, to create media around
positive tea culture, combine professional knowledge, skills and strategic objectives, culture, institution and other
to carry out diverse forms of learning. Put the staff training on strategic height, set up a strategic concept based on
development objectives and strategies to develop training programs to make the training and long-term
development of the enterprise closely. For enterprise executives and key personnel, focus on training and
awareness of its innovative thinking, combined with the industry and the Company needs to break through
limitations of thinking, and actively absorb and share, expand learning and hot discussions. During specific work
carried out in 2017, all training activities shall be focused on corporate strategy and business development, so that
set plans by demand to promote the implementation of plans to see effects.
4. Labor outsourcing
□ Applicable √ Not applicable
深圳市深宝实业股份有限公司 2016 年年度报告全文
Section IX. Corporate governance
I. Brief introduction of corporate governance
During the reporting period, the Company constantly improved the corporate governance structure, improved the
quality of corporate governance, and established a sound internal control system, strictly in accordance with
corporate governance requirements of normative documents released by the “Company Law“, ”Securities Law,
Corporate Governance Guidelines“ and ”Standardize Operational Guidelines to Main Board Listed Companies of
Shenzhen Stock Exchange. The Company continued to carry out the governance activities, improved the standard
operation level, and safeguarded the legitimate interests of the Company and investors.
(i) Accountability among Shareholders’ General Meeting, the Board of Directors and Supervisors were clear, we
strictly implemented the rules from the \"Articles of Association\" during the reporting period as well as work
regulations and other basic management system to ensure the effective implementation of the internal control
system.
(ii) Government mechanism formulated and revised by the Company as:
Serial Mechanism Disclosure index
Implementing Rules of Inforamtion Disclosure Released on juchao website
1
Committee (April 2016) (www.cninfo.com.cn) dated 26 April 2016
Released on juchao website
2 Article of Association (October 2016)
(www.cninfo.com.cn) dated 14 October 2016
Is there any difference between the actual condition of corporate governance and relevant regulations about
corporate governance for listed Company from CSRC?
□ Yes √ No
There are no differences between the actual condition of corporate governance and relevant regulations about corporate governance
for listed Company from CSRC.
II. Independence of the Company in aspect of business, personnel, assets, institute and finance
relative to its controlling shareholder
By the end of the reporting period, agricultural products held by controlling shareholders account for 19.09
percent .The Company, in strict accordance with the governance rules of listed corporate and other relevant
provisions, completely separates from the controlling shareholders in business, finance, personnel, assets,
organizations, and has independent full business and self management ability.
1. Independent Business:
The business of the Company is independent from controlling shareholders and has complete business and self
management ability and is mainly engaged in tea, food and beverage products production, and sale. It develops
business alone, not depends on the shareholders and their affiliated enterprises, which has no competition with
深圳市深宝实业股份有限公司 2016 年年度报告全文
controlling shareholder and its subordinate enterprises. The controlling shareholder has no direct or indirect
intervention in the Company business activities.
2. Independent Staff:
The Company has special organization to manage labor and payment, and has independent perfect personnel
system and collective management system. General manager of the Company as well s deputy GM, secretary of
the Board, CFO and other senior executives are received remuneration from the Company, and are not received
remuneration from shareholders’’ unit and subordinate enterprises and holding the post except director or
supervisor. All the Company's directors, supervisors are elected through legal procedures. The general manager,
deputy general manager, chief financial officer and the board secretary are appointed by the board meeting. The
Company has independent power of appointment and removal of personnel.
3. Independent Assets:
The Company has independent and integrity asset structure, has independent production system, auxiliary
production systems and supporting facilities, and has independent purchase and sales system. There is no
controlling shareholder's non business occupation of money and the property.
4. Independent Organization:
The Company has set up a sound organizational structure system and operates independently; owns production
and business operation place independent from the controlling shareholders; there is no mixed operation between
the Company and controlling shareholders.
5. Financial Independent:
The Company, with independent financial department, has set up independent accounting system and financial
management system and makes financial decision independently. With independent bank accounts, tax payment,
the Company strictly follows the financial system and has independent operation and standardized management.
There is no intervention into financial and accounting activity by controlling shareholder.
III. Horizontal Competition
□ Applicable √ Not applicable
IV. In the report period, the Company held annual general meeting and extraordinary
shareholders’ general meeting
1. Annual General Meeting in the report period
Ratio of
Session of
Type investor Date Date of disclosure Index of disclosure
meeting
participation
Disclosed at
www.cninfo.com.cn on No.
Annual General 2016-21 \" resolutions
AGM 0.03% 2016-05-17 2016-05-18
Meeting of 2015 Announcement to 2015
Annual General
Shareholders’ meeting of
深圳市深宝实业股份有限公司 2016 年年度报告全文
Shenzhen Shenbao
Industrial Co., Ltd. \" on
May 18, 2016
Disclosed at
www.cninfo.com.cn on No.
First
2016-35 \" resolutions
extraordinary Extraordinary
0.01% 2016-10-14 2016-10-15 Announcement to First
general meeting general meeting
extraordinary general
of 2016
meeting of 2016 \" on 15
Oct. 2016
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √ Not applicable
V. Responsibility performance of independent directors
1. The attending of independent directors to Board meetings and general meeting
The attending of independent directors
Times of Board
Whether absent
meeting Times of Times of
Times of Times of the Meeting for
Independent director supposed to attending by entrusted
Presence Absence the second time
attend in the communication presence
in a row or not
report period
Fan Zhiqing 5 3 0 2 0 Y
Wu Shuping 5 1 4 0 0 N
Chen Cansong 5 5 0 0 0 N
Times attending shareholders’ general
meeting from independent directors
Explanation of absent the Board Meeting for the second time in a row
Mr. Fan Zhiqing absent the 7th session and 8th session of 9th BOD due to personnel reasons, and he entrust
independent director Mr. Chen Cansong to attend and exercise the right of voting.
2. Objection for relevant events from independent directors
Independent directors come up with objection about Company’s relevant matters
□ Yes √ No
Independent directors has no objections for relevant events in reporting period
3. Other explanation about responsibility performance of independent directors
深圳市深宝实业股份有限公司 2016 年年度报告全文
The opinions from independent directors have been adopted
√ Yes □ No
Explanation on advice that accepted/not accepted from independent directors
During the reporting period, independent directors of the Company was in strict accordance with relevant laws
from the \"Articles of Association\", the \"Company Law\", \"Guidance to Establishment of Independent Director
System in Listed Companies \", and actively attended board meetings, shareholders' meetings. We issued
independent professional opinion for important issues. And we sustained attention to the operating, inspected and
guided the management work from time to time, learned about internal control system, implementation progress
of the equity investment project, etc., and continue to enhance consciousness of performing duties according to
law, express independent and impartial advice for investment outside, related party transactions, hiring auditors
and other matters occurred during the reporting period in time. Duties performance of independent directors has
improved the corporate governance structure and safeguarded the interests of the Company and its shareholders.
From performance of duties of Independent Directors please note from “2016 Annual Work Report of Independent
Directors” detailed in www.cninfo.com.cn on disclosure.
VI. Performance of Duties by Specialized Committees under the Board Meeting in the
Reporting Period
1. Performance of Duties by the Strategy Committee of the Board
During the reporting period, the strategy committee of the Board held two meetings which has considered and
approved the “Terminate invest in the establishment of Yunnan Yuncha Micro-Credit Company” and “proposal of
transferring 100% equity of Shenzhen Yidaxiang Real Estate Co., Ltd.” seriously discussed and analyzed the
Company’s strategic development, raised the professional opinions and suggestions.
2. Performance of Duties by the Auditing Committee
In the reporting period, totally three meetings are held by auditing committee for annual report of the Company,
Annual Report 2015, semi-annual report 2016, 1st quarterly report and 3rd quarterly report 2016 deliberation; and
confirmed that the financial report satisfy requirement of Accounting rules and present a fair and complete
financial status, operation results and cash flow of the Company; examined the construction progress of internal
control, carried a professional opinions for the auditing institution appointed outside the Company, guarantee the
Company finished auditing on schedule. Auditing committee of the Company earnestly following the principle of
diligence, play a supervise role in full and protect the independency of the auditing.
3. Performance of Duties by the Remuneration and Appraisal Committee
During the reporting period, the remuneration and appraisal committee has held one meetings to examine the 2015
annual performance factor according to the regulation of performance management measures for the headquarters,
and inspected the 2015 annual salary for the Company's directors, supervisors and senior managers, at the same
time, made confirmation for the operating performance indicators in 2016.
深圳市深宝实业股份有限公司 2016 年年度报告全文
VII. Works from Supervisory Committee
Whether the Company has risks or not 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. Appraisal and incentive mechanism for senior executives
The personnel department of the Company is based on the Company's overall business performance and
achievement of management index, the remuneration and appraisal committee under the board meeting of the
Company will carry on comprehensive evaluation in accordance with the headquarter performance management
method, take it as the basis for salary adjustment and rewards of senior management personnel and then
implement after the approval of the board meeting and general meeting. The Company will further explore the
effective incentive mechanism to fully arouse the initiative and enthusiasm of management, promoting the
sustainable and stable development of the Company.
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
2017-04-24
evaluation report
Disclosure index of full internal control
Juchao information website (www.cninfo.com.cn)
evaluation report
The ratio of the total assets of units
included in the scope of evaluation
accounting for the total assets on the 92.90%
Company's consolidated financial
statements
The ratio of the operating income of units
included in the scope of evaluation
accounting for the operating income on the 93.70%
Company's consolidated financial
statements
Defects Evaluation Standards
Category Financial Reports Non-financial Reports
Qualitative evaluation criteria of financial reporting are as Qualitative evaluation criteria for Identified
follows: internal control deficiencies in non-financial
Major defects: Defect alone or together with other defects in a reporting are as follows:
Qualitative timely manner cause unpreventable or undetectable and the Company may indicate the presence of
criteria uncorrectable material misstatement in the financial statements. significant deficiencies related to non-financial
The Company may indicate the presence of significant reporting internal control if following
deficiencies in internal control over financial reporting if circumstances:
following circumstances: (1)The lack of democratic decision-making
深圳市深宝实业股份有限公司 2016 年年度报告全文
(1)The directors, supervisors and senior management fraud; process, such as the lack of decision-making on
(2) Enterprise corrected mistake which has been published in major issues, an important appointment and
financial statements; dismissal of cadres, major investment decisions,
(3) CPA found material misstatement in current financial large sums of money using the decision-making
statements, but internal control during operation failed to find process;
the misstatements; (2)Decision-making process is not scientific, such
(4) Oversight of internal control by Corporate Audit Committee as major policy mistakes, resulting in significant
and the internal audit is invalid; property damage to the Company;
(5) Particularly important or significant deficiencies found (3) Serious violations of national laws and
during internal control has not been rectified; regulations;
(6) The lack of business-critical system or invalid system. (4) Loss of key executives or loss of a large
Important defect: defect alone or together with other defects in number of key talent;
a timely manner cause unpreventable or undetectable and (5) Negative media news are frequent. Other cases
uncorrectable material misstatement in the financial statements, are determined by the degree of influence as an
although not reach and exceed the level of importance, should important general defect or common defects.
lead to management attention misstatements.
General Defects: other internal defects do not pose a significant
or important defect control deficiencies.
Qualitative criteria of financial reporting are as follows: Qualitative evaluation criteria for Identified
General Defects: internal control deficiencies in non-financial
reported wrongly <0.5% of total capital or reported reporting are as follows:
wrongly<0.5% of operating income; General defects: the amount of direct property loss
Important flaw: 0.5% of total assets ≤ reported wrongly <1% of of 10 million (10 million) and ~ 1.5 million yuan
total assets or 0.5% of operating income≤ misstatements <1% by the provincial (including provincial)
of revenue; government the following penalties but the
Major flaw: misstatement ≥ 1% of total assets or misstatements Company disclosed in periodic reports on the
Quantitative ≥ 1% of revenue. negative impact;
standard Important flaw: the amount of direct property loss
of 1.5 million yuan (including 1.5 million yuan) ~
3 million yuan and punished by the state
government but the Company disclosed in periodic
reports on the negative impact;
Major flaw: the amount of direct property loss of 3
million yuan and above and have been officially
disclosed outside the Company disclosed in
periodic reports and adversely affected.
Amount of
significant
defects in
financial
reports
Amount of
significant
defects in
深圳市深宝实业股份有限公司 2016 年年度报告全文
non-financial
reports
Amount of
important
defects in
financial
reports
Amount of
important
defects in
non-financial
reports
X. Self-evaluation report of internal control
√ Applicable □ Not applicable
Deliberations in Internal Control Audit Report
Dahua Certified Public Accountants (special general partnership) believes Shenshenbao Company was in accordance with the
\"basic norms of internal control\" and the relevant provisions and maintained effective internal control of financial reporting in all
material respects on 31 Dec 2016.
Disclosure details of audit report of
Disclosed
internal control
Disclosure date of audit report of
2017-04-24
internal control (full-text)
Index of audit report of internal
Juchao Information Website (www.cninfo.com.cn)
control (full-text)
Opinion type of auditing report of
Standard unqualified
IC
Whether the non-financial report
No
had major defects
Whether modified audit opinions carried out for the audit report of internal control from CPA or not
□ Yes √ No
Whether audit report of internal control, issued by CPA, is in agreement with self-evaluation report, issued by the
Board
√ Yes □ No
深圳市深宝实业股份有限公司 2016 年年度报告全文
Section X Corporate Bond
Whether the Company has a corporation bonds that issuance publicly and listed on stock exchange and without
due on the date when annual report approved for released or fail to cash in full on due
□Yes √ No
深圳市深宝实业股份有限公司 2016 年年度报告全文
Section XI. Financial Report
I. Audit report
Type of audit opinion Standard unqualified opinion
Signing date of audit report 2017-04-21
Dahua Certified Public Accountants (Special General
Name of audit institute
Partnership)
Document serial of audit report Dahua Shen Zi [2017] No. 004812
Name of the CPA Chen Baohua, Su Qing
Auditor’s Report
Dahua Shen Zi [2017] No.004812
To all shareholders of SHENZHEN SHENBAO INDUSTRIAL CO., LTD.:
We have audited the Companying consolidated and parent Company’s financial statements of Shenzhen Shenbao
Industrial Co., Ltd (“the Company”), including balance sheet of 31 December 2016 and profit statement, and cash
flow statement, and statement on changes of shareholders’ equity for the year ended, and notes to the financial
statements for the year ended.
I. Management’s responsibility for the financial statements
Management of the Company is responsible for prepare and present financial statement of the Company, which
including: (1) Prepare financial statements with fair presentation in line with Accounting Standards for Business
Enterprises; (2) Designing, executed and maintaining necessary internal control in order to prevent fundamental
miscarrying in financial statement from fraudulent or errors.
II. Auditor's responsibility
Our responsibility is to express an audit opinion on these financial statements based on our audit. We performed
our audit in accordance with Chinese Certified Public Accountants' Auditing Standards. Those standards require
us to comply with professional ethics, and to plan and perform our audit so as to obtain reasonable assurance
about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures of the
financial statements. The selective audit procedures depend on auditor's judgment, including the evaluation of the
risk of material misstatement of the consolidated financial statements due to frauds or errors. When evaluating
risk, we consider internal control related to financial statements, in order to design auditing procedures, but not for
the purpose of expressing an opinion on the internal control's effectiveness. An audit also includes assessing the
appropriateness of the accounting policies adopted and the reasonableness of the accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.
We believe that we have obtained sufficient and appropriate audit evidences to provide a basis for our audit
深圳市深宝实业股份有限公司 2016 年年度报告全文
opinion.
III. Auditing opinion
In our opinion, the Company’s financial statements have been prepared in accordance with the Enterprises
Accounting Standards and Enterprises Accounting System, and they fairly present the financial status of the
Company and its consolidated statement as of December 31, 2016, and its operation results of the parent
Company and consolidate statement and cash flows for the year ended.
Dahua Certified Public Accountants (Special General Chinese CPA: Chen Baohua
Partnership)
Beijing China
Chinese CPA: Su Qing
21 April 2017
深圳市深宝实业股份有限公司 2016 年年度报告全文
II. Financial Statement
Currency used in note of financial statement is RMB (Yuan)
1. Consolidated Balance Sheet
Prepared by Shenzhen Shenbao Industrial Co., Ltd
2016-12-31
In RMB
Items 2016.12.31 2016.1.1
Current assets:
Monetary fund 358,564,242.83 148,013,887.15
Settlement provisions
Capital lent
Financial assets measured by fair
value and with variation reckoned into 3,250,938.60 3,586,352.90
current gains/losses
Derivative financial assets
Notes receivable 38,922.90
Account receivable 62,582,867.63 75,948,016.12
Account paid in advance 6,321,827.64 18,601,600.34
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance
receivable
Interest receivable
Dividends receivable
Other receivables 22,643,449.94 22,019,771.94
Purchase restituted finance asset
Inventory 140,951,059.39 175,822,373.53
Divided into assets held for sale
Non-current assets due within one
year
Other current assets 11,299,954.58 2,012,976.56
Total current assets 605,614,340.61 446,043,901.44
Non-current assets:
Loans and payments on behalf
Available-for-sale financial assets 57,500.00 57,500.00
深圳市深宝实业股份有限公司 2016 年年度报告全文
Held-to-maturity investments
Long-term receivables
Long-term equity investment 5,866,481.63 7,034,953.91
Investment property 18,872,865.36 18,809,193.68
Fix assets 333,013,767.86 358,418,473.54
Construction in process 54,574.34 6,790,574.90
Project materials
Disposal of fixed assets
Productive biological assets 426,463.64 436,156.00
Oil and natural gas assets
Intangible assets 195,678,353.58 193,057,370.27
Research and development costs
Goodwill 673,940.32
Long-term deferred expenses 13,312,189.59 15,993,354.47
Deferred income tax assets 4,973,248.37 4,436,279.25
Other non-current assets 9,381,000.00
Total non-current assets 572,929,384.69 614,414,856.02
Total assets 1,178,543,725.30 1,060,458,757.46
Current liabilities:
Short-term loans 5,000,000.00
Loan from central bank
Absorbing deposit and interbank
deposit
Capital borrowed
Financial liability measured by fair
value and with variation reckoned into
current gains/losses
Derivative financial liability
Notes payable
Accounts payable 15,782,288.29 24,821,587.58
Accounts received in advance 2,379,824.13 3,714,591.93
Selling financial asset of
repurchase
Commission charge and
commission payable
深圳市深宝实业股份有限公司 2016 年年度报告全文
Wage payable 16,279,706.84 12,357,984.32
Taxes payable 26,345,138.53 21,308,373.62
Interest payable
Dividend payable 2,909,182.74 2,909,182.74
Other accounts payable 46,119,690.25 23,637,606.15
Reinsurance payables
Insurance contract reserve
Security trading of agency
Security sales of agency
Divided into liability held for sale
Non-current liabilities due within
one year
Other current liabilities
Total current liabilities 114,815,830.78 88,749,326.34
Non-current liabilities:
Long-term loans
Bonds payable
Including: preferred stock
Perpetual capital
securities
Long-term account payable
Long-term wages payable
Special accounts payable
Accrual liabilities
Deferred income 12,335,552.15 12,932,278.81
Deferred income tax liabilities 1,653,779.51 1,639,143.22
Other non-current liabilities
Total non-current liabilities 13,989,331.66 14,571,422.03
Total liabilities 128,805,162.44 103,320,748.37
Owners’ equity:
Share capital 451,620,276.00 301,080,184.00
Other equity instrument
Including: preferred stock
Perpetual capital
securities
深圳市深宝实业股份有限公司 2016 年年度报告全文
Capital reserve 367,172,017.79 518,186,660.59
Less: Inventory shares
Other comprehensive income
Reasonable reserve
Surplus reserve 54,736,482.14 49,670,863.23
Provision of general risk
Retained profit 158,239,612.94 66,684,572.93
Total owners’ equity attributable to
1,031,768,388.87 935,622,280.75
parent company
Minority interests 17,970,173.99 21,515,728.34
Total owners’ equity 1,049,738,562.86 957,138,009.09
Total liabilities and owner’s equity 1,178,543,725.30 1,060,458,757.46
Legal Representative: Zheng Yuxi Person in charge of accounting works:Wang Zhiping
Person in charge of accounting institute: Xu Qiming
2. Balance Sheet of Parent Company
Prepared by Shenzhen Shenbao Industrial Co., Ltd
2016-12-31
In RMB
Items 2016.12.31 2016.1.1
Current assets:
Monetary fund 305,477,853.97 116,074,656.42
Financial assets measured by fair
value and with variation reckoned into 3,250,938.60 3,586,352.90
current gains/losses
Derivative financial assets
Notes receivable
Account receivable 40,123,423.12 32,750,583.18
Account paid in advance 6,476,875.00
Interest receivable
Dividends receivable
Other receivables 212,821,890.56 222,807,412.34
Inventory 7,784,904.36 40,232,342.98
Divided into assets held for sale
Non-current assets due within one
深圳市深宝实业股份有限公司 2016 年年度报告全文
year
Other current assets 9,895,236.82 267,230.32
Total current assets 579,354,247.43 422,195,453.14
Non-current assets:
Available-for-sale financial assets
Held-to-maturity investments
Long-term receivables
Long-term equity investment 916,622,212.24 892,812,451.85
Investment property 18,872,865.36 40,167,700.24
Fix assets 33,686,897.31 34,546,366.05
Construction in process
Project materials
Disposal of fixed assets
Productive biological assets 426,463.64 436,156.00
Oil and natural gas assets
Intangible assets 7,742,703.23 7,692,860.86
Research and development costs
Goodwill
Long-term deferred expenses 837,768.34 1,060,072.56
Deferred income tax assets 3,288,450.21 3,005,903.22
Other non-current assets
Total non-current assets 981,477,360.33 979,721,510.78
Total assets 1,560,831,607.76 1,401,916,963.92
Current liabilities:
Short-term loans 5,000,000.00
Financial liability measured by fair
value and with variation reckoned into
current gains/losses
Derivative financial liability
Notes payable
Accounts payable 47,165,259.53 50,179,887.87
Accounts received in advance 495,004.08 377,054.09
Wage payable 9,641,601.54 6,073,389.24
Taxes payable 15,711,497.39 19,194,680.96
Interest payable
深圳市深宝实业股份有限公司 2016 年年度报告全文
Dividend payable 2,909,182.74 2,909,182.74
Other accounts payable 306,770,480.94 200,789,188.11
Divided into liability held for sale
Non-current liabilities due within
one year
Other current liabilities
Total current liabilities 387,693,026.22 279,523,383.01
Non-current liabilities:
Long-term loans
Bonds payable
Including: preferred stock
Perpetual capital
securities
Long-term account payable
Long-term wages payable
Special accounts payable
Accrual liabilities
Deferred income 48,348.52 49,920.00
Deferred income tax liabilities 542,468.13 452,164.28
Other non-current liabilities
Total non-current liabilities 590,816.65 502,084.28
Total liabilities 388,283,842.87 280,025,467.29
Owners’ equity:
Share capital 451,620,276.00 301,080,184.00
Other equity instrument
Including: preferred stock
Perpetual capital
securities
Capital reserve 382,444,482.45 532,984,495.26
Less: Inventory shares
Other comprehensive income
Reasonable reserve
Surplus reserve 54,736,482.14 49,670,863.23
Retained profit 283,746,524.30 238,155,954.14
Total owners’ equity 1,172,547,764.89 1,121,891,496.63
深圳市深宝实业股份有限公司 2016 年年度报告全文
Total liabilities and owner’s equity 1,560,831,607.76 1,401,916,963.92
Legal Representative: Zheng Yuxi Person in charge of accounting works:Wang Zhiping
Person in charge of accounting institute: Xu Qiming
3. Consolidated Profit Statement
Prepared by Shenzhen Shenbao Industrial Co., Ltd
In RMB
Items 2016
I. Total operating income 273,383,642.99 338,224,512.31
Including: Operating income 273,383,642.99 338,224,512.31
Interest income
Insurance gained
Commission charge and
commission income
II. Total operating cost 341,363,913.26 388,803,094.50
Including: Operating cost 204,648,621.41 247,443,735.69
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
Operating tax and extras 1,138,024.68 10,810,030.41
Sales expenses 44,338,389.32 46,050,246.67
Administration expenses 86,120,689.47 80,515,335.69
Financial expenses -1,182,236.05 -1,951,620.60
Losses of devaluation of
6,300,424.43 5,935,366.64
asset
Add: Changing income of fair -335,414.30 1,808,657.11
深圳市深宝实业股份有限公司 2016 年年度报告全文
value(Loss is listed with “-”)
Investment income (Loss is
162,493,453.10 535,500.67
listed with “-”)
Including: Investment income
-2,465,646.48 -1,557,732.43
on affiliated company and joint venture
Exchange income (Loss is
listed with “-”)
III. Operating profit (Loss is listed with
94,177,768.53 -48,234,424.41
“-”)
Add: Non-operating income 20,473,591.76 7,894,927.66
Including: Disposal gains of
7,497,465.72
non-current asset
Less: Non-operating expense 445,282.09 85,552.86
Including: Disposal loss of
27,136.96 37,081.52
non-current asset
IV. Total Profit (Loss is listed with “-”) 114,206,078.20 -40,425,049.61
Less: Income tax expense 24,060,552.12 2,535,502.30
V. Net profit (Net loss is listed with “-”) 90,145,526.08 -42,960,551.91
Net profit attributable to owner’s of
96,620,658.92 -35,256,169.10
parent company
Minority shareholders’ gains and
-6,475,132.84 -7,704,382.81
losses
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 as a result of
re-measurement of net defined benefit
plan liability or asset
2. Share of the other
comprehensive income of the investee
accounted for using equity method which
will not be reclassified subsequently to
profit and loss
(II) Other comprehensive income
深圳市深宝实业股份有限公司 2016 年年度报告全文
items which will be reclassified
subsequently to profit or loss
1. Share of the other
comprehensive income of the investee
accounted for using equity method which
will be reclassified subsequently to profit
or loss
2. Gains or losses arising
from changes in fair value of
available-for-sale financial assets
3. Gains or losses arising
from reclassification of held-to-maturity
investment as available-for-sale financial
assets
4. The effect hedging portion
of gains or losses arising from cash flow
hedging instruments
5. Translation differences
arising on translation of foreign currency
financial statements
6.Other
Net after-tax of other comprehensive
income attributable to minority
shareholders
VII. Total comprehensive income 90,145,526.08 -42,960,551.91
Total comprehensive income 96,620,658.92 -35,256,169.10
attributable to owners of parent Company
Total comprehensive income -6,475,132.84 -7,704,382.81
attributable to minority shareholders
VIII. Earnings per share:
(i) Basic earnings per share 0.2139 -0.0781
(ii) Diluted earnings per share 0.2139 -0.0781
Enterprise combine under the same control in the Period, the combined party realized net profit of 0 Yuan before combination, and
realized 0 Yuan at last period for combined party
Legal Representative: Zheng Yuxi Person in charge of accounting works:Wang Zhiping
Person in charge of accounting institute: Xu Qiming
深圳市深宝实业股份有限公司 2016 年年度报告全文
4. Profit Statement of Parent Company
Prepared by Shenzhen Shenbao Industrial Co., Ltd
In RMB
Items 2016
I. Operating income 126,457,763.47 162,825,129.46
Less: Operating cost 115,553,924.00 114,794,632.02
Operating tax and extras -2,574,861.08 9,288,136.44
Sales expenses 4,529,308.46 5,117,885.61
Administration expenses 32,118,546.43 31,611,579.25
Financial expenses -848,524.77 -774,003.34
Losses of devaluation of asset 1,131,687.92 5,657,407.31
Add: Changing income of fair -335,414.30 1,808,657.11
value(Loss is listed with “-”)
Investment income (Loss is 73,867,977.33 789,456.51
listed with “-”)
Including: Investment income -190,239.61 -1,298,023.19
on affiliated company and joint venture
II. Operating profit (Loss is listed 50,080,245.54 -272,394.21
with “-”)
Add: Non-operating income 16,037,041.78 4,465,085.69
Including: Disposal gains of
non-current asset
Less: Non-operating expense 7,053.55
Including: Disposal loss of 6,650.00
non-current asset
III. Total Profit (Loss is listed with 66,117,287.32 4,185,637.93
“-”)
Less: Income tax expense 15,461,098.25 2,311,491.45
IV. Net profit (Net loss is listed with 50,656,189.07 1,874,146.48
“-”)
V. Net after-tax of other comprehensive
income
(I) Other comprehensive income
items which will not be reclassified
subsequently to profit of loss
深圳市深宝实业股份有限公司 2016 年年度报告全文
1. Changes as a result of
re-measurement of net defined benefit
plan liability or asset
2. Share of the other
comprehensive income of the investee
accounted for using equity method
which will not be reclassified
subsequently to profit and loss
(II) Other comprehensive income
items which will be reclassified
subsequently to profit or loss
1. Share of the other
comprehensive income of the investee
accounted for using equity method
which will be reclassified subsequently
to profit or loss
2. Gains or losses arising
from changes in fair value of
available-for-sale financial assets
3. Gains or losses arising
from reclassification of held-to-maturity
investment as available-for-sale
financial assets
4. The effect hedging
portion of gains or losses arising from
cash flow hedging instruments
5. Translation differences
arising on translation of foreign
currency financial statements
6.Other
VI. Total comprehensive income 50,656,189.07 1,874,146.48
VII. Earnings per share:
(i) Basic earnings per share
(ii) Diluted earnings per share
Legal Representative: Zheng Yuxi Person in charge of accounting works:Wang Zhiping
Person in charge of accounting institute: Xu Qiming
深圳市深宝实业股份有限公司 2016 年年度报告全文
5. Consolidated Cash Flow Statement
Prepared by Shenzhen Shenbao Industrial Co., Ltd
In RMB
Items 2016
I. Cash flows arising from operating
activities:
Cash received from selling 376,950,458.97 414,424,898.08
commodities and providing labor
services
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
Net increase of amount from
disposal financial assets that measured
by fair value and with variation
reckoned into current gains/losses
Cash received from interest,
commission charge and commission
Net increase of capital borrowed
Net increase of returned business
capital
Write-back of tax received 182,087.90 1,165,924.42
Other cash received concerning 58,269,021.81 15,838,610.41
operating activities
Subtotal of cash inflow arising from 435,401,568.68 431,429,432.91
operating activities
Cash paid for purchasing 211,020,152.09 305,049,300.64
commodities and receiving labor
深圳市深宝实业股份有限公司 2016 年年度报告全文
service
Net increase of customer loans and
advances
Net increase of deposits in central
bank and interbank
Cash paid for original insurance
contract compensation
Cash paid for interest, commission
charge and commission
Cash paid for bonus of guarantee
slip
Cash paid to/for staff and workers 74,602,147.23 68,761,736.29
Taxes paid 36,660,085.62 33,720,659.00
Other cash paid concerning 51,378,615.62 69,860,826.07
operating activities
Subtotal of cash outflow arising from 373,661,000.56 477,392,522.00
operating activities
Net cash flows arising from operating 61,740,568.12 -45,963,089.09
activities
II. Cash flows arising from investing
activities:
Cash received from recovering 130,000,000.00 223,000,000.00
investment
Cash received from investment 821,891.58 2,093,233.10
income
Net cash received from disposal of 13,745.00 7,000.00
fixed, intangible and other long-term
assets
Net cash received from disposal 177,514,708.73
of subsidiaries and other units
Other cash received concerning 2,058,212.72
investing activities
Subtotal of cash inflow from investing 310,408,558.03 225,100,233.10
activities
Cash paid for purchasing fixed, 32,111,042.90 34,267,963.43
intangible and other long-term assets
Cash paid for investment 144,250,000.00 230,550,000.00
Net increase of mortgaged loans
深圳市深宝实业股份有限公司 2016 年年度报告全文
Net cash received from
subsidiaries and other units
Other cash paid concerning
2,860,010.31
investing activities
Subtotal of cash outflow from investing 179,221,053.21 264,817,963.43
activities
Net cash flows arising from investing 131,187,504.82 -39,717,730.33
activities
III. Cash flows arising from financing
activities
Cash received from absorbing
11,250,000.00 6,460,000.00
investment
Including: Cash received from
absorbing minority shareholders’ 11,250,000.00 6,460,000.00
investment by subsidiaries
Cash received from loans 55,000,000.00
Cash received from issuing bonds
Other cash received concerning 2,250,079.19 230.92
financing activities
Subtotal of cash inflow from financing 68,500,079.19 6,460,230.92
activities
Cash paid for settling debts 50,000,000.00 40,000,000.00
Cash paid for dividend and profit 825,895.83 159,000.00
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 50,825,895.83 40,159,000.00
activities
Net cash flows arising from financing 17,674,183.36 -33,698,769.08
activities
IV. Influence on cash and cash 448,099.38 45,697.21
equivalents due to fluctuation in
exchange rate
V. Net increase of cash and cash 211,050,355.68 -119,333,891.29
equivalents
深圳市深宝实业股份有限公司 2016 年年度报告全文
Add: Balance of cash and cash 147,513,887.15 266,847,778.44
equivalents at the period -begin
VI. Balance of cash and cash 358,564,242.83 147,513,887.15
equivalents at the period -end
Legal Representative: Zheng Yuxi Person in charge of accounting works:Wang Zhiping
Person in charge of accounting institute: Xu Qiming
6. Cash Flow Statement of Parent Company
Prepared by Shenzhen Shenbao Industrial Co., Ltd
In RMB
Items 2016
I. Cash flows arising from operating
activities:
Cash received from selling 198,021,990.22 215,407,817.33
commodities and providing labor
services
Write-back of tax received 27,140.22 294,629.58
Other cash received concerning 144,632,517.40 40,493,400.09
operating activities
Subtotal of cash inflow arising from 342,681,647.84 256,195,847.00
operating activities
Cash paid for purchasing 157,962,478.44 168,435,330.20
commodities and receiving labor
service
Cash paid to/for staff and workers 17,399,885.56 13,710,719.90
Taxes paid 19,508,848.80 18,018,998.90
Other cash paid concerning 22,049,676.22 35,704,152.32
operating activities
Subtotal of cash outflow arising from 216,920,889.02 235,869,201.32
operating activities
Net cash flows arising from operating 125,760,758.82 20,326,645.68
activities
II. Cash flows arising from investing
activities:
Cash received from recovering 130,000,000.00 220,000,000.00
investment
深圳市深宝实业股份有限公司 2016 年年度报告全文
Cash received from investment 821,891.58 2,087,479.70
income
Net cash received from disposal of 33,095,045.31
fixed, intangible and other long-term
assets
Net cash received from disposal 79,023,330.00
of subsidiaries and other units
Other cash received concerning
investing activities
Subtotal of cash inflow from investing 242,940,266.89 222,087,479.70
activities
Cash paid for purchasing fixed, 2,293,831.28 1,695,956.00
intangible and other long-term assets
Cash paid for investment 167,850,000.00 235,000,000.00
Net cash received from
subsidiaries and other units
Other cash paid concerning 1,287,004.64
investing activities
Subtotal of cash outflow from investing 171,430,835.92 236,695,956.00
activities
Net cash flows arising from investing 71,509,430.97 -14,608,476.30
activities
III. Cash flows arising from financing
activities
Cash received from absorbing
investment
Cash received from loans 55,000,000.00
Cash received from issuing bonds
Other cash received concerning
79.19 230.92
financing activities
Subtotal of cash inflow from financing
55,000,079.19 230.92
activities
Cash paid for settling debts 50,000,000.00 40,000,000.00
Cash paid for dividend and profit
950,646.97 159,000.00
distributing or interest paying
Other cash paid concerning
11,925,000.00
financing activities
Subtotal of cash outflow from financing 62,875,646.97 40,159,000.00
深圳市深宝实业股份有限公司 2016 年年度报告全文
activities
Net cash flows arising from financing
-7,875,567.78 -40,158,769.08
activities
IV. Influence on cash and cash
equivalents due to fluctuation in 8,575.54 7,336.56
exchange rate
V. Net increase of cash and cash
189,403,197.55 -34,433,263.14
equivalents
Add: Balance of cash and cash
116,074,656.42 150,507,919.56
equivalents at the period -begin
VI. Balance of cash and cash
305,477,853.97 116,074,656.42
equivalents at the period -end
Legal Representative: Zheng Yuxi Person in charge of accounting works:Wang Zhiping
Person in charge of accounting institute: Xu Qiming
深圳市深宝实业股份有限公司 2016 年年度报告全文
7. Statement of Changes in Owners’ Equity (Consolidated)
Prepared by Shenzhen Shenbao Industrial Co., Ltd
In RMB
Owners’ equity attributable to parent company
Other equity instrument Provision
Items Less: Other Minority Total owners’
Perpetual Reasonable Surplus of
Share capital Preferred Capital reserve Inventory comprehensive Retained profit interests equity
capital Other reserve reserve general
stock shares income
securities risk
I. Balance at the
301,080,184.00 518,186,660.59 49,670,863.23 66,684,572.93 21,515,728.34 957,138,009.09
end of the last year
Add: Changes
of accounting
policy
Error
correction of the
last period
Enterprise
combine under the
same control
Other
II. Balance at the 301,080,184.00 518,186,660.59 49,670,863.23 66,684,572.93 21,515,728.34 957,138,009.09
深圳市深宝实业股份有限公司 2016 年年度报告全文
beginning of this
year
III. Increase/
Decrease in this
150,540,092.00 -151,014,642.80 5,065,618.91 91,555,040.01 -3,545,554.35 92,600,553.77
year (Decrease is
listed with “-”)
(i) Total
comprehensive 96,620,658.92 -6,475,132.84 90,145,526.08
income
(ii) Owners’
devoted and 2,929,578.49 3,510,750.19
decreased capital
1.Common shares
invested by 11,250,000.00 11,250,000.00
shareholders
2. Capital invested
by holders of other
equity instruments
3. Amount
reckoned into
owners equity with
share-based
payment
4.Other -8,320,421.51 -8,320,421.51
(III) Profit
5,065,618.91 -5,065,618.91
distribution
1. Withdrawal of 5,065,618.91 -5,065,618.91
深圳市深宝实业股份有限公司 2016 年年度报告全文
surplus reserves
2. Withdrawal of
general risk
provisions
3. Distribution for
owners (or
shareholders)
4.Other
(IV) Carrying
forward internal 150,540,092.00 -151,014,642.80 -474,550.80
owners’ equity
1. Capital reserves
conversed to
150,540,092.00 -150,540,092.00
capital (share
capital)
2. Surplus reserves
conversed to
capital (share
capital)
3. Remedying loss
with surplus
reserve
4.Other -474,550.80 -474,550.80
(V) Reasonable
reserve
1. Withdrawal in
the report period
深圳市深宝实业股份有限公司 2016 年年度报告全文
2. Usage in the
report period
(VI)Others
IV. Balance at the
end of the report 451,620,276.00 367,172,017.79 54,736,482.14 158,239,612.94 17,970,173.99 1,049,738,562.86
period
Legal Representative: Zheng Yuxi Person in charge of accounting works:Wang Zhiping
Person in charge of accounting institute: Xu Qiming
In RMB
Owners’ equity attributable to parent company
Other equity instrument Provision
Items Less: Other Minority Total owners’
Perpetual Reasonable Surplus of
Share capital Preferred Capital reserve Inventory comprehensive Retained profit interests equity
capital Other reserve reserve general
stock shares income
securities risk
I. Balance at the end
301,080,184.00 518,186,429.67 49,483,448.58 102,128,156.68 22,760,111.15 993,638,330.08
of the last year
Add: Changes of
accounting policy
Error
correction of the last
period
Enterprise
combine under the
same control
深圳市深宝实业股份有限公司 2016 年年度报告全文
Other
II. Balance at the
301,080,184.00 518,186,429.67 49,483,448.58 102,128,156.68 22,760,111.15 993,638,330.08
beginning of this year
III. Increase/
Decrease in this year
230.92 187,414.65 -35,443,583.75 -1,244,382.81 -36,500,320.99
(Decrease is listed
with “-”)
(i) Total
comprehensive -35,256,169.10 -7,704,382.81 -42,960,551.91
income
(ii) Owners’ devoted
6,460,000.00 6,460,000.00
and decreased capital
1.Common shares
invested by 6,460,000.00 6,460,000.00
shareholders
2. Capital invested by
holders of other
equity instruments
3. Amount reckoned
into owners equity
with share-based
payment
4.Other
(III) Profit
187,414.65 -187,414.65
distribution
1. Withdrawal of
187,414.65 -187,414.65
surplus reserves
深圳市深宝实业股份有限公司 2016 年年度报告全文
2. Withdrawal of
general risk
provisions
3. Distribution for
owners (or
shareholders)
4.Other
(IV) Carrying
forward internal 230.92 230.92
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.Other 230.92 230.92
(V) Reasonable
reserve
1. Withdrawal in the
report period
2. Usage in the report
period
(VI)Others
深圳市深宝实业股份有限公司 2016 年年度报告全文
IV. Balance at the end
301,080,184.00 518,186,660.59 49,670,863.23 66,684,572.93 21,515,728.34 957,138,009.09
of the report period
Legal Representative: Zheng Yuxi Person in charge of accounting works:Wang Zhiping
Person in charge of accounting institute: Xu Qiming
8. Statement of Changes in Owners’ Equity (Parent Company)
Prepared by Shenzhen Shenbao Industrial Co., Ltd
In RMB
Other equity instrument
Less: Other
Items Reasonable Total owners’
Perpetual
Share capital Preferred Capital reserve Inventory comprehensive Surplus reserve Retained profit
capital Other reserve equity
stock shares income
securities
I. Balance at the end of
301,080,184.00 532,984,495.26 49,670,863.23 238,155,954.14 1,121,891,496.63
the last year
Add: Changes of
accounting policy
Error
correction of the last
period
Other
II. Balance at the
301,080,184.00 532,984,495.26 49,670,863.23 238,155,954.14 1,121,891,496.63
beginning of this year
深圳市深宝实业股份有限公司 2016 年年度报告全文
III. Increase/ Decrease in
this year (Decrease is 150,540,092.00 -150,540,012.81 5,065,618.91 45,590,570.16 50,656,268.26
listed with “-”)
(i) Total comprehensive
50,656,189.07 50,656,189.07
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 5,065,618.91 -5,065,618.91
1. Withdrawal of surplus
5,065,618.91 -5,065,618.91
reserves
2. Distribution for
owners (or shareholders)
3．Other
(IV) Carrying forward
150,540,092.00 -150,540,012.81 79.19
internal owners’ equity
1. Capital reserves
150,540,092.00 -150,540,092.00
conversed to capital
深圳市深宝实业股份有限公司 2016 年年度报告全文
(share capital)
2. Surplus reserves
conversed to capital
(share capital)
3. Remedying loss with
surplus reserve
4.Other 79.19 79.19
(V) Reasonable reserve
1. Withdrawal in the
report period
2. Usage in the report
period
(VI)Others
IV. Balance at the end of
451,620,276.00 382,444,482.45 54,736,482.14 283,746,524.30 1,172,547,764.89
the report period
Legal Representative: Zheng Yuxi Person in charge of accounting works:Wang Zhiping
Person in charge of accounting institute: Xu Qiming
In RMB
Other equity instrument
Less: Other
Items Reasonable Total owners’
Perpetual
Share capital Preferred Capital reserve Inventory comprehensive Surplus reserve Retained profit
capital Other reserve equity
stock shares income
securities
I. Balance at the end of
301,080,184.00 532,984,264.34 49,483,448.58 236,469,222.31 1,120,017,119.23
the last year
深圳市深宝实业股份有限公司 2016 年年度报告全文
Add: Changes of
accounting policy
Error
correction of the last
period
Other
II. Balance at the
301,080,184.00 532,984,264.34 49,483,448.58 236,469,222.31 1,120,017,119.23
beginning of this year
III. Increase/ Decrease in
this year (Decrease is 230.92 187,414.65 1,686,731.83 1,874,377.40
listed with “-”)
(i) Total comprehensive
1,874,146.48 1,874,146.48
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 187,414.65 -187,414.65
1. Withdrawal of surplus 187,414.65 -187,414.65
深圳市深宝实业股份有限公司 2016 年年度报告全文
reserves
2. Distribution for owners
(or shareholders)
3．Other
(IV) Carrying forward
230.92 230.92
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.Other 230.92 230.92
(V) Reasonable reserve
1. Withdrawal in the
report period
2. Usage in the report
period
(VI)Others
IV. Balance at the end of
301,080,184.00 532,984,495.26 49,670,863.23 238,155,954.14 1,121,891,496.63
the report period
Legal Representative: Zheng Yuxi Person in charge of accounting works:Wang Zhiping
Person in charge of accounting institute: Xu Qiming
深圳市深宝实业股份有限公司 2016 年年度报告全文
III. Basic situation of Company
Basic situation of Company
1. Company registration, organization form and headquarters address
Shenzhen Shenbao Industrial Co., Ltd. (the “Company” or “Company” for short), formerly named Shenzhen
Shenbao Canned Food Company, obtained approval (Document (1991) No.978) from Shenzhen Municipal
People’s Government to change to the present name as on 1 August 1991.Then with the approval (Document
(1991)No.126) from People’s Bank of China, the Company began to list on Shenzhen Stock Exchange.
The Company initially issued 107,312,935 shares in the stock exchange. In 1992, one bonus share was dispatched
for each 10 shares held by its shareholders, thus totally 10,731,290 shares were increased. In 1993, one bonus
share and one allotted share were dispatched for each 10 shares held by its shareholders, thus totally 20,878,845
shares were increased. Subsequently, one bonus share was dispatched for each 10 shares held by shareholders
upon the basis of total share capital as at the end of 1996, and capitalizing of capital reserves was carried out at
one to ten basis, thus totally 27,784,614 shares were increased. In 2001, based on the total share capital as at the
end of 1999, three shares were allotted for each 10 shares held by shareholders, and totally 15,215,404 shares
were allotted. The registered capital of the Company amounts to RMB181, 923,088.
On 22 June 2011, the Company privately offering 68,977,066 shares of RMB ordinary share (A share) to target
investors with issuing price of RMB 8.70 each while book value of RMB 1.00. Total monetary capital RMB
600,100,474.20 was raised. Change procedures of industrial and commerce has completed on 12 July 2011.
Register capital of the Company changed as RMB 250,900,154.00.
On 9 April 2014, the equity allocation plan was deliberated and approved by Annual General Meeting of 2013.
Based on 250,900,154 shares dated 31st December 2013, increase 2 shares by each 10 shares transferring to all
shareholders. Share capital increased to 301,080,184 shares after transferring.
On 17 May 2016, the equity allocation plan was deliberated and approved by Annual General Meeting of 2015.
Based on 301,080,184 shares dated 31st December 2015, increase 5 shares by each 10 shares transferring to all
shareholders. Share capital increased to 451,620,276 shares after transferring.
Registed address of the Company: 8/F, B Section, 4th Tower, Software Industrial Base, South Technology Park,
Xuefu Street, Yuehai Avenue, Nanshan District, Shenzhen, P.R. China; license No.: 91440300192180754J.
1. Business nature and major operation activities of the Company
The Company mainly engaged in the products of tea series of “Jindiao” brand including instant tea power and tea
concentrate; “Ju Fang Yong”; “Gutan” and serials of “Fu Hai Tang”; seasoning series under “Sanjing” brand
include oyster sauce, olive vegetable, and soy; beverages series under “Shenbao” brand include daisy tea, lemon
深圳市深宝实业股份有限公司 2016 年年度报告全文
tea, and wax gourd tea.
General business scope including: production of tea, tea products, extract of tea and natural plant, canned food,
beverage and native products ( business license for the production place should apply separately); technology
development and technology service of tea, plant products, soft beverage and foods; info tech development and
supporting service; on-line trading; investment, operation, management and development of tea plantation;
investment in industrial projects (apply separately for detail projects); domestic trading(excluding special sales,
specific control and exclusive commodity); import and export business; engaged in real estate development and
operation in the land legally obtained; lease and sales of the self-owned property and property management.” (as
for the projects subject to examination and approval regulated by the state laws, administrative regulations and
state council, approval should be obtained before operation). Business in license: wholesale of prepackaged food
(excluding reheating prepackaged food) (in non-physical way).
1. Report approval for the financial statement
The statement has been approved by the Board dated 21 April 2017 for reporting
Totally 17 subsidiaries are included in consolidate financial statement, mainly including:
Shareholding ratio Voting rights ratio
Subsidiaries Type Level
(%) (%)
Shenzhen Shenbao Huacheng Technology Co., Wholly-owned First 100
Ltd. (Shenbao Huacheng for short) subsidiary grade
Wuyuan Jufangyong Tea Co., Ltd. (Wuyuan Wholly-owned First 100
Jufangyong for short) subsidiary grade
Shenzhen Shenbao Sanjing Food and Beverage 100
Wholly-owned First
Development Co., Ltd. (Shenbao Sanjing for
subsidiary grade
short)
Huizhou Shenbao Technology Co., Ltd. Wholly-owned First 100
(Huizhou Shenbao Technology for short) subsidiary grade
Shenzhen Shenbao Property Management Co., Wholly-owned First 100
Ltd. (Shenbao Property for short) subsidiary grade
Shenzhen Shenbao Industry and Trade Co., Ltd. Wholly-owned First 100
(Shenbao Industry and Trade for short) subsidiary grade
Hangzhou Jufangyong Holding Co., Ltd. Wholly-owned First 100
(Hangzhou Jufangyong for short) subsidiary grade
Shenzhen Shenbao Technology Center Co., Ltd. Wholly-owned First 100
(Shenbao Technology Center for short) subsidiary grade
Shenzhen Shenshenbao Investment Co., Ltd. Wholly-owned First 100
(Shenshenbao Investment for short) subsidiary grade
Yunnan Pu'er Tea Shenbao Supply Chain 100
Wholly-owned First
Management Co., Ltd. (hereinafter referred to
subsidiary grade
as Yunnan Supply Chain)
深圳市深宝实业股份有限公司 2016 年年度报告全文
Huizhou Shenbao Food Co., Ltd. (Huizhou Wholly-owned First 100
Shenbao Food for short) subsidiary grade
Wuyishan Shenbeo Rock Tea Co., Ltd. Holding Second 100
(Shenbao Rock Tea for short) subsidiary grade
Hangzhou Fuhaitang Tea Ecological 100
Holding Second
Technology Co., Ltd. (Fuhaitang Ecological for
subsidiary grade
short)
Hangzhou Chunshi Network Technology Co., Wholly-owned Second 100
Ltd. (Chunshi Network for short) subsidiary grade
Shenzhen Shenshenbao Tea Culture Business 65
Holding Second
Management Co., Ltd. (Shenshenbao Tea
subsidiary grade
Culture for short)
Hangzhou Jufangyong Trading Company Holding Second 60
(hereinafter referred to as Jufangyong Trading) subsidiary grade
Yunnan Pu’er Tea Trading Center Co., Ltd. 55
Holding First
(hereinafter referred to as Pu’er Tea Trading
subsidiary grade
Center)
Share-holding ratio difference with voting right ratio and explaination on those holding half or below shares but
controlling invested unit, found more in (i) Euqity in subsidiary of Note IX. Equity in Other entity
Body included in consolidated financial statement in the period has 4 increased by compare with same period of
last year, including:
1. Subsidiary newly included in consolidated financial statement
Item Reasons for change
Pu’er Tea Trading Center Share holding goes to 55% from 40%
Shenbao Rock Tea New establihsed after division
Yidaxiang Real Estate New establihsed
Huizhou Shenbao Food New establihsed
2. Subsidiary, special purpose entity, and operational entities lose controlling rights by entrusted operation or
commissioned rental
Item Reasons for change
Shenbao Shengyuan Quit after euqity transfer
Shenbao Yuxing Quit after division
Yidaxiang Real Estate Quit after euqity transfer
Foun dmore in Note VIII. Change of consolidate scope
3. Subsidiary excluded in consolidated financial statement
(1) Shenzhen Shenbao (Liaoyuan) Industrial Company has established for a long time without normal operation,
Industry and Commerce Bureau has canceled the business license of the company, the long-term equity
深圳市深宝实业股份有限公司 2016 年年度报告全文
investment for the company has been accrual for impairment totally. Financial statement of the company is out of
the consolidation range.
(2) Shenzhen Baomanan Biotechnology Co., Ltd. is a subsidiary of the Company, set up by Huizhou Shenbao
Technology and Guangzhou Shen Guangsheng biotechnology limited liability company, according to the contract
signed by both parties on March 28, 2014, Huizhou Shenbao Technology does not have the right to manage this
company, thus it is accounted by the equity method.
(3) Shenzhen Shichumingmen Restaurant Management Co., Ltd. (hereinafter referred to as \"Shichumingmen
Company\"), set up by a subsidiary of the Company Shenshenbao tea culture and Shenzhen Investment Co., Ltd. F.
according to Articles of Association, the Board of Directors to vote by one vote one person. Attendees to the
board of directors should be more than 2/3 of the whole number of directors, and all participants aaprove the
resolution thus it is effective. The Company only accounted for 3/5 of the voting rights in Shichumingmen
Company, control can not be reached, so it is accounted for by the equity method.
IV. Basis of preparation of financial statements
1. Basis of preparation
Based on continuing operation, the Company conducts recognition and measurement according to actual
occurrence of transactions and issues, pursuant to the accounting principles for enterprise-basic rules and specific
accounting principle as well as the application guidance for the accounting principles for enterprise, interpretation
to the accounting principles for enterprise and other related requirements (hereinafter referred to as Enterprise
Accounting Principles) issued by the ministry of finance, on that basis, combining the Information Disclosure
Preparation Rules for Company Public Issuing Securities No.15-General Rules for Financial Report (amended in
2014) of the CSRC for statement preparation.
2. Going concern
The Company was evaluated on continued viability of 12 months for the reporting period and found to have no
significant doubt. Accordingly, the financial statements have been prepared on the basis of going concern
assumptions.
V. Major accounting policy, accounting estimation
Whether the company needs to comply with the disclosure requirements of the particular industry
No
Specific accounting policies and estimation attention:
Nil
深圳市深宝实业股份有限公司 2016 年年度报告全文
1. Statement for observation of Accounting Standard for Enterprise
The financial statements prepared by the Company are in accordance to requirements of Accounting Standard for
Enterprise, which truly and completely reflect the information related to financial position, operational results and
cash flow of the Company.
2. Accounting period
Calendar year is the accounting period for the Company, that is falls to the range starting from 1 January to 31
December.
3. Operating cycle
Operating cycle of the Company was 12 months, and the operating cycle is the determining criterion for liquidity
of assets and liabilities.
4. Standard currency
The Company and its subsidiaries take RMB as the standard currency for bookkeeping.
5. Accounting treatment for business combinations under the same control and those not under the same
control
1. If the terms, conditions, and economic impact of each transaction involved in business combination
achieved in stages fall within one or more of the following situations, such transactions will be accounted for
as a package deal:
(1) Such transactions are entered into simultaneously or in the case of considering the impact of each other;
(2) Such transactions as a whole in order to reach a complete business results;
(3) The occurrence of a transaction subject to that of at least one other transaction;
(4) One transaction alone is not economic, but otherwise when considered with other transactions.
2. Business combination under the same control
The assets and liabilities the Company acquired in a business combination shall be measured in accordance with
book value of assets, liabilities (including the ultimate controlling party of goodwill acquired by the merging
parties and the formation of) stated in combined financial report of the ultimate controlling party on the merger
date. The net book value of assets and the payment of the merger consideration in the merger book value (or
nominal value of shares issued) shall be adjusted in the share premium of reserve capital. the share premium in
capital reserve is not enough for deducting, retained earnings .
If the capital reserve is not sufficient to absorb the difference, any excess shall be adjusted against retained
earnings. In case there is existence of contingent consideration which needs to confirm projected liabilities or
assets, then the difference between the projected liabilities or assets and settlement amount for consequent
contingent consideration is utilized to adjust capital reserve (capital premium or equity premium); in case of
深圳市深宝实业股份有限公司 2016 年年度报告全文
insufficient capital reserve, adjust retained earnings.
As for business combination realized through numbers of transactions, and if these transactions belong to a bundle
of transactions, then each of them shall be accounted as a transaction to acquire controlling right; and if not belong
to a bundle of transactions, then the difference between the initial investment cost of the long term equity
investment as of the date on which the Company obtains controlling right and the carrying value of the long term
equity investment prior to combination plus the carrying value of the new consideration paid for further
acquisition of shares as of the combination date shall be used to adjust capital reserve; in case of insufficient
capital reserve, adjust retained earnings. For equity investment held prior to the combination date, the other
comprehensive income recognized due to calculation by equity method or based on recognition and measurement
principles for financial instruments would not be accounted for temporarily until the Company disposes of this
investment on the same basis as the investee directly disposes of relevant assets or liabilities; other changes of
owners’ equity in the net assets of investee as recognized under equity method, except for net profit or loss, other
comprehensive income and profit distribution, shall not be accounted for until being transferred to current profit
or loss when this investment is disposed of.
3. Business combination not under the same control
Assets paid and liabilities taken for business combination on the acquisition date shall be measured at fair value.
The difference between the fair value and book value is recognized in profit or loss.
Goodwill is realized by the Company as for the difference between the combination cost and the fair value of the
recognizable net assets of the acquiree acquired by acquirer in such business combination. In case that the above
cost is less than the above fair value even with re-review, then the difference shall be recorded in current gains
and losses.
As for the business combination not under the same control realized through several exchange transactions step by
step, part of the package deal, than carrying accounting treatment on transactions with controlling rights obtained
through vary transactions; as for non-package: for equity investment held prior to combination date which is
calculated under equity method, the sum between carrying value of the equity investment prior to acquisition date
and cost of additional investment made on the acquisition date is deemed to be the initial investment cost of this
investment. Other comprehensive income recognized for equity investment held prior to combination date under
equity method shall be accounted for when the Company disposes of this investment on the same basis as the
investee directly disposes of relevant assets or liabilities. In case that equity investment held prior to combination
date is calculated based on recognition and measurement principles for financial instruments, then the fair value of
this equity investment as of combination date plus new investment cost shall be deemed as initial investment cost.
The difference between fair value and carrying value of the originally held equity interests and the accumulated
fair value movements as originally recorded in other comprehensive income shall be all transferred to investment
income of the period in which the combination date falls.
深圳市深宝实业股份有限公司 2016 年年度报告全文
4. Expenses related to the merger
Audit, legal, consulting services, and other intermediary costs and other expenses directly related to the business
combination, shall be included in current profit or loss in the event; any transaction fee for issuing equity
securities for business combination which can be directly attributable to the equity transaction shall be deducted
from equity.
6. Methods for preparation of consolidated financial statements
1. Merger scope
The consolidation scope of the consolidated financial statements of the Company is fixed on the basis of control,
and all subsidiaries have been consolidated.
2. Merger procedure
The Company edits the consolidated financial statements based on its own financial statements and the
subsidiaries’, as well as other relevant information. The consolidated financial statements hold the enterprise
group as a whole accounting entity. It is recognized in accordance with relevant Accounting Standards,
measurement and presentation requirements. Uniform accounting policies reflect the overall financial position of
the Group's business, operating results and cash flow.
The accounting policies and accounting period adopted by the subsidiaries taken into account of the consolidation
scope are in line with the Company. If it is not the same as the Company, necessary adjustments will be made
when preparing consolidated financial statements according to the accounting policy and accounting period of the
Company.
Internal transactions between the Company and its subsidiaries and between subsidiaries to each other shall put
impact on the consolidated balance sheet, consolidated income statement, consolidated cash flow statement, the
consolidated shareholders' equity. The impact shall be offset when combing financial statements. If it is not the
same when you stand Enterprise Group and the angle of the Company or its subsidiaries as the accounting entity
identified on the same transaction, the business point of view shall be adjusted to the Group's transactions.
Subsidiary's equity, current net profits or losses and current comprehensive income belonging to minority
shareholders shall be listed respectively under item of owners’ equity in the consolidated balance sheet, item of
net profit in profit sheet and item of total comprehensive income. Current loss minority shareholders of a
subsidiary exceed the minority shareholders in the subsidiary's opening owners' equity share and the formation of
balance, offset against minority interests.
For the subsidiaries acquired through business combination under common control, its assets and liabilities
(including goodwill formed from ultimate controlling party acquiring the subsidiary to) shall be adjusted based on
深圳市深宝实业股份有限公司 2016 年年度报告全文
the book value in the financial statements of the ultimate controlling party.
For the subsidiaries acquired through business combination under uncommon control, financial statements shall
be adjusted based on the fair value of the identifiable net assets on acquiring date.
(1) Increase of subsidiary or business
During the reporting period, the merger of the enterprises under the same control results in additional subsidiaries
or business, then adjust the opening amount of consolidated balance sheet; income, expenses and profit of the
subsidiaries or business from beginning to the end of the reporting shall be included in the consolidated profit
statement; cash flows of the subsidiaries or business from beginning to the end of reporting period shall be
included into the consolidated cash flow statement. And relevant comparative items of comparable statement shall
be adjusted since reporting entity is controlled by the ultimate controller.
If additional investment and other reasons can lead investee to be controlled under the same control, all parties
shall be adjusted at the beginning when the ultimate controlling party starts control. Equity investments made
before obtaining controlling right, relevant gains and losses and other comprehensive income as well as other
changes in net assets confirmed during the latter date between point obtaining original equity and merger and
mergeree under the same control day to the combined day, shall be offset against the retained earnings or profit or
loss of the comparative reporting period.
During the reporting period, opening amount of consolidated balance sheet shall not be adjusted since enterprise
under different control combine or increase holding of subsidiary or business; the income, expense and profit of
the subsidiaries or business from the acquisition date to the end of reporting period shall be included in the
consolidated profit statement; while cash flows shall be included into the consolidated cash flow statement.
Equity held from investee before acquisition date shall be measured at fair value of acquisition date if additional
investment and other reasons can lead investee to be controlled under the same control. Difference between the
fair value and the book value is recognized as investment income. other comprehensive income and other owners'
equity except for net profit or loss, other comprehensive income and the distribution of profits related to equity
held from investee before acquisition date, as well as relevant other comprehensive income associated with all
other by changes in equity shall be included in current investment income, except for other comprehensive income
arising from change of net assets or net liabilities redefined by investee.
(2) Disposal of subsidiaries or business
1) The general approach
During the reporting period, the Company carry out disposal of subsidiaries or business, revenue, expense and
profit of the subsidiary or business included in the consolidated profit statement from the beginning to the disposal
date; while the cash flow into cash flow table.
深圳市深宝实业股份有限公司 2016 年年度报告全文
If losing controlling right to investee due to disposal of partial equity, the remaining equity after the disposal shall
be re-measured at fair value at the date when control is lost. Price of equity disposal plus fair value of the
remaining equity, then subtracting net assets held from the former subsidiary from the acquisition date or
combination date initially measured in accordance with original stake and goodwill, the difference shall be
included in investment income of the period losing controlling right. other comprehensive income and other
owners' equity except for net profit or loss, other comprehensive income and the distribution of profits related to
equity held from investee before acquisition date, as well as relevant other comprehensive income associated with
all other by changes in equity shall be included in current investment income, except for other comprehensive
income arising from change of net assets or net liabilities redefined by investee.
2) Step disposal of subsidiaries
As multiple transactions over disposal of the subsidiary's equity lead to loss of controlling right, if the terms of the
transaction, situation and economic impact subject to one or above of the following conditions, usually it indicates
repeated transactions should be accounted for as a package deal:
A. These transactions are made considering at the same time or in the case of mutual impact;
B. These transactions only reach a complete business results when as a whole;
C. A transaction occurs depending on the occurrence of at least one other transaction;
D. Single transaction is not economical, but considered together with other transactions it is economical.
If disposal of equity in subsidiaries lead the loss of control and the transactions can be seen as a package deal, the
Company will take accounting treatment of the transaction; however, before the loss of control the difference
between the disposal price and the corresponding net assets of the subsidiary, recognized as other comprehensive
income in the consolidated financial statements, into current profit and loss at current period when losing
controlling right.
If disposal of equity in subsidiaries lead the loss of control and the transactions doesn’t form a package deal,
equity held from subsidiary shall be accounted in accordance with relevant rules before losing controlling right,
while in accordance with general accounting treatment when losing controlling right.
(3) Purchase of a minority stake in the subsidiary
Long-term equity investment of the Company for the purchase of minority interests in accordance with the newly
acquired stake in the new calculation shall be entitled to the difference between the net assets from the acquisition
date (or combination date) initially measured between the consolidated balance sheet adjustment capital balance
of the share premium in the capital reserve share premium insufficient, any excess is adjusted to retained earnings.
(4) Disposal of equity in subsidiary without losing control
Disposal price and disposal of long-term equity investment without a loss of control due to partial disposal of
subsidiaries and long-term equity investment made between the relative net assets from the purchase date or the
深圳市深宝实业股份有限公司 2016 年年度报告全文
date of merger were initially measured at the difference between the subsidiary shall enjoy, the consolidated
balance sheet adjustment in the balance of the share premium, capital balance of the share premium insufficient,
any excess is adjusted to retained earnings.
7. Classification of joint venture arrangement and accounting for joint operations
2. Classification of joint venture arrangement
The Company classifies joint venture arrangement into joint operations and joint ventures based on the structure,
legal form, agreed terms of the arrangement and other related facts and conditions.
Joint venture arrangement not concluded through separate entity is classified as joint operation; and those
concluded through separate entity are generally classified as joint ventures. However, joint venture arrangement
which meets any of the following conditions as proven by obvious evidence and satisfies relevant laws and rules
is grouped as joint operation:
3. The legal form of the arrangement shows that parties to the arrangement are entitled to and assume rights and
obligations in respect of the relevant assets and liabilities.
4. It is agreed by the terms of the arrangement that parties to the arrangement are entitled to and assume rights and
obligations in respect of the relevant assets and liabilities.
5. Other related facts and conditions show that parties to the arrangement are entitled to and assume rights and
obligations in respect of the relevant assets and liabilities. For instance, joint parties are entitled to almost all the
output related to joint venture arrangement and settlement of the liabilities under the arrangement continues to rely
on supports from the joint parties.
6. Accounting for joint operations
The Company recognizes its proportion of interests in joint operation as related to the Company, and accounts for
under relevant business accounting principles:
7. To recognize separately-held assets and jointly-held assets under its proportion;
8. To recognize separately-assumed liabilities and jointly-assumed liabilities under its proportion;
9. To recognize revenue from disposal of the output which the Company is entitled to under the proportion;
10. To recognize revenue from disposal of the output under the proportion;
11. To recognize separately occurred expenses, and to recognize expenses occurred for joint operations under its
proportion.
For injection to or disposal of assets of joint operations (other than those assets constituting business operation),
gain or loss arising from the transaction is only recognized to the extent it is attributable to other parties to the
joint operation before the joint operation is sold to any third party. In case those assets injected or disposed satisfy
the condition for asset impairment loss under Business Accounting Principle No.8-Assets Impairment, the
Company recognizes this loss in full.
深圳市深宝实业股份有限公司 2016 年年度报告全文
For acquisition of assets from joint operations (other than those assets constituting business operation), gain or
loss arising from the transaction is only recognized to the extent it is attributable to other parties to the joint
operation before the relevant assets are sold to any third party. In case that the acquired assets satisfy the condition
for asset impairment loss under Business Accounting Principle No.8-Assets Impairment, the Company recognizes
relevant loss according to the proportion it assumes.
The Company exercises no common control over joint operations. If the Company is entitled to relevant assets of
the joint operation and assure relevant liabilities, it shall be accounted for under the above principle, otherwise it
would be accounted for under the relevant business accounting principles.
8. Recognition standards for cash and cash equivalents
When preparing cash flow statement, the Company recognized the stock cash and deposits available for payment
at any time as cash, and investments featuring with the following four characters at the same time as cash
equivalents: short term (expire within 3 months commencing from purchase day), active liquidity, easy to convert
to already-known cash, and small value change risks.
9. Foreign currency business and conversion of foreign currency statement
1. Foreign currency business
For the foreign currency business, the Company converts the foreign currency into RMB for book-keeping based
on spot exchange rate at date of trading occurred.
On balance sheet date, balance of foreign currency monetary items shall be converted based on the spot rate as at
the balance sheet date, and the arising exchange difference shall be recorded in current gains and losses other than
those arising from the special foreign currency borrowings related to purchasing assets qualifying for
capitalization which is treated under the principle of borrowing expense capitalization. As for the foreign currency
non-monetary items measured in historical cost, conversion is still conducted with the spot rate as at the
transaction date, without any change to its functional currency. As for the foreign currency non-monetary items
measured in fair value, conversion is conducted with the spot rate as at the date for determination of fair value,
and the arising exchange difference shall be recorded in current gains and losses or capital reserve.
As for the foreign currency non-monetary items measured in fair value, conversion is conducted with the spot rate
as at the date for determination of fair value, and the arising exchange difference shall be recorded in current gains
and losses or capital reserve.
2. Translation of foreign currency financial statement
Assets and liabilities in balance sheet are translated at the spot exchange rate at the balance sheet date. Equity
items, excluding “undistributed profit”, are translated at the spot exchange rates at the transaction dates. Income
and expenses of foreign operation are translated at the spot exchange rates at the transaction dates. The resulting
深圳市深宝实业股份有限公司 2016 年年度报告全文
translation differences are recognized in other comprehensive income.
When disposing overseas operations, the foreign currency financial statement translation differences listed under
items of other comprehensive income in balance sheet and which are directly related to the overseas operations
are transferred to profit or loss in the period when the overseas operation is disposed. In the disposal of some
equity investments or other causes reduced proportion held overseas business interests but not a loss of control
over a foreign operation, and disposal of the foreign operation portion related to foreign currency translation
differences attributable to minority interests, not the income statement. In the disposal of foreign operation as part
of the equity joint venture or joint ventures, and foreign currency financial statements related to the foreign
operation translation difference in proportion of the foreign operation is disposed of into the disposal income
statement.
10. Financial instruments
Financial instruments include financial assets, financial liabilities and equities instruments.
Categories of financial instruments
According to the contract terms of the financial instrument issued and economic substance reflects by such
instrument, not only in form of law, combine with purposes held for financial assets and liabilities, the Company
categorizes financial assets and liability into different types: financial assets (or financial liabilities) at fair value
through current gains and losses; accounts receivable; financial assets available for sale; other financial liabilities,
etc.
Recognition and measurement for financial instrument
1. Financial assets or liabilities at fair value through profit or loss
Financial assets or liabilities at fair value through profit or loss include transactional financial assets or financial
liabilities and financial assets or liabilities directly designated at fair value through profit or loss.
Transactional financial assets or financial liabilities refer to those meeting any of the following conditions:
1) Purpose for holding the assets or liabilities are to disposal, repurchase or redemption in a short time;
2) Constitute part of the identifiable financial instrument group for central management, and there is objective
evidence proving that the Company manages this group in a short-time-return way recently;
3) Belong to derivative financial instrument, other than those derivatives designated as effective hedge
instruments, belonging to financial guarantee contracts and those linked to equity instrument investment which is
not quoted in an active market and whose fair cannot be measured reliably and the settlement of which is
conditional upon delivery of the equity instrument.
Subject to satisfaction of any of the following conditions, financial assets or liabilities can be designated as
financial assets or liabilities at fair value through profit or loss upon initial measurement:
1) The designation can eliminate or substantially eliminate the inconsistencies between profit and loss from the
深圳市深宝实业股份有限公司 2016 年年度报告全文
financial assets arising from different measurement basis;
2) The portfolio of financial assets and liabilities in which the financial asset belongs to are designated as
measured at fair value in the risk management report or investment strategic report handed in to key management
personnel;
3) Hybrid instruments which contains one or more embedded derivatives, unless the containing of embedded
derivatives does not have substantial effect on the cash flows of the hybrid instruments, or the embedded
derivatives obviously should not be separated from relevant hybrid instruments;
4) Hybrid instruments which contains embedded derivatives that should split, but cannot be measured separately
when acquired or on the subsequent balance sheet date.
The Company initially measures financial assets or liabilities at fair value through profit or loss at their fair values
when acquiring the assets or liabilities (after deducting cash dividend already declared but not paid or bond
interests which is due for interest payment but not received), and the relevant transaction fee is included in current
profit or loss. Interest or cash dividend acquired during the holding period shall be recognized as investment
income, and movement of fair value at the end of period is included in current profit or loss. Upon disposal, the
difference between its fair value and initial accounting amount shall be recognized as investment income, with
corresponding adjustment to gains and losses from movement of fair value.
1. Account receivables
Account receivable refers to the non-derivative financial assets without price in active market and with amount to
be fixed or to be determined
The contract price charged to the buyers shall be recognized as initial value for those account receivables which
mainly comprise the receivable creditor’s right caused by the sale of goods and providing of labor service to
external customers by the Company, and receivables in other companies excluding debt instruments priced in
active markets, includes but not limited to trade receivables, notes receivables, account paid in advance and other
receivables. If characterized as of financing nature, the initial recognition shall be priced at the present value.
Upon disposal, the difference between the sale value and the book value of the receivables shall be accounted into
current profit or loss on its recovery or disposal.
1. Held-to-maturity investment
The non-derivative financial assets with maturity date, fix return amount or amount able to determined, and the
Company held with specific intention and ability.
The Company takes the sum of fair value (after deducting bond interests which is due for interest payment but not
received) and related transaction fee as initial recognition amount in respect of held-to-maturity investment upon
acquisition of the investment. During the holding period, the Company recognizes interest income at amortized
cost and effective interest rate which is included in investment income. The effective interest rate is determined
深圳市深宝实业股份有限公司 2016 年年度报告全文
upon acquisition of the investment and remains unchanged for the expected continuous period or appropriate
shorter period. Difference between sale price and carrying value of the investment is included in investment
income.
If held-to-maturity investment is disposed or reclassified as other types of financial asset, and the relevant amount
is relatively bigger than the total amount of our all held-to-maturity investments prior to disposal or
reclassification, the remaining held-to-maturity investments shall be reclassified as available-for-sale financial
assets immediately following such disposal or reclassification. On the reclassification date, difference between the
carrying value and fair value of the investment is included in other comprehensive income and is transferred out
into current profit or loss when the available-for-sale financial assets experience impairment or derecognition.
However, the followings are exceptions:
1) The date of disposal or reclassification is approaching to the date of expiration or redemption of the investment
(such as three months prior to expiration), and change of market rate has no material influences over the fair value
of the investment.
2) Company has already recovered nearly all initial principal under the repayment means as agreed in contract.
3) Disposal or reclassification is arising from separate matters which are out of our control, which are expected
not to occur repeatedly and which are difficult to predict reasonably.
1. Available-for-sale financial assets
Available-for-sale financial assets are non-derivative financial assets that are designated as available-for-sale upon
initial recognition and financial assets other than other categories of financial assets.
The Company initially measures available-for-sale financial assets at the sum between their fair values when
acquiring the assets or liabilities (after deducting cash dividend already declared but not paid or bond interests
which is due for interest payment but not received) and the relevant transaction fee. Interest or cash dividend
acquired during the holding period shall be recognized as investment income. Gains or losses arising from
movement of fair value is directly included in other comprehensive income except for impairment loss and
exchange difference arising from foreign currency monetary financial assets. When disposing available-for-sale
financial assets, the Company includes the difference between the acquired price and carrying value of the
financial assets into investment profit or loss. Meanwhile, accumulated fair value movement attributable to the
disposed part which is originally directly included in other comprehensive income is transferred out and included
investment profit or loss.
For equity instrument investment which is not quoted in an active market and whose fair value cannot be reliably
measured, and derivative financial assets which are linked to the equity instrument and whose settlement is
conditional upon delivery of the equity instrument, they are stated at cost by the Company.
1. Other financial liabilities
深圳市深宝实业股份有限公司 2016 年年度报告全文
Initial recognition amount is determined at the sum of fair value and relevant transaction fee. Subsequent
measurement is conducted at amortized cost.
Confirmation evidence and measurement methods for transfer of financial assets
When transfer of financial assets occurs, the Company shall stop recognition of such financial assets if all risks
and remunerations related to ownership of such financial assets have almost been transferred to the receiver; while
shall continue to recognize such financial assets if all risks and remunerations related to ownership of such
financial assets have almost been retained.
When judging whether or not the aforesaid terminal recognition condition for financial assets is arrived at for
transfer of financial assets, the Company generally adopts the principle that substance overweighs format. The
Company divides such transfer into entire transfer and part transfer. As for the entire transfer meeting condition
for discontinued recognition, balance between the following two items is recorded in current gains and losses:
(1) Carrying value of financial assets in transfer;
(2) Aggregate of the consideration received from transfer and accumulative movements of fair value originally
recorded in owners’ equity directly (applicable when financial assets involved in transfer belong to financial assets
available for sale).
As for the part transfer meeting condition for discontinued recognition, entire carrying value of financial assets in
transfer is shared by discontinued recognition part and continued recognition part, in light of their respective fair
value. Balance between the following two items is recorded in current gains and losses:
(1) Carrying value of discontinued recognition part;
(2) Aggregate of the consideration of discontinued recognition part and amount of such part attributable to
accumulative movements of fair value originally recorded in owners’ equity directly (applicable when financial
assets involved in transfer belong to financial assets available for sale).
Financial assets are still subject to recognition if transfer of such assets doesn’t satisfy the condition for
discontinued recognition. And consideration received is recognized as financial liability.
De-recognition condition for financial liability
As for the financial liabilities with its whole or part present obligations released, the company shall de-realize
such financial liabilities or part of it. if the company enters into agreement with its creditor to substitute for the
existing financial liabilities by means of assuming new financial liabilities, then the company shall de-realize the
existing financial liabilities and realize the new financial liabilities provided that the contract clauses of the new
and the existing financial liabilities are different in substance.
If the company makes substantial amendment to the whole or part contract clauses of the existing financial
liabilities, it shall de-realize the existing financial liabilities or part of it. Meanwhile, the financial liabilities with
深圳市深宝实业股份有限公司 2016 年年度报告全文
amendment to its clauses shall be realized as new financial liabilities.
In case of derecognizing of financial liabilities in whole or part, the difference between the carrying value of such
de-realized financial liabilities and consideration paid (including the non-cash assets exchanged or new financial
liabilities assumed) shall be recorded in current gains and losses.
In case that the company repurchases part of financial liabilities, based on the comparative fair value of the
continuing recognition part and the derecognizing part, the company shall allocate the carrying value of the
financial liabilities in whole on the repurchase date. Difference between the carrying value allocated to the
derecognizing part and the consideration paid (including the non-cash assets exchanged or new financial liabilities
assumed) shall be recorded in current gains and losses.
Determination method for fair value of financial assets and financial liabilities
As for the financial assets or financial liabilities with an active market, the fair value is determined by the offer of
the active market; the offer of the active market includes the offers of underlying assets or liabilities easily and
regularly obtained from the exchange, the dealer, the broker, the industry group, the pricing institution or the
regulatory body, which can represent the market transactions actually and frequently occur on the basis of fair
trade.
The initial acquisition or financial assets or financial liabilities assumed, market transaction price to determine the
fair value basis.
There is no active market for a financial asset or financial liability, the valuation techniques to determine its fair
value. At the time of valuation, the Company adopted applicable in the present case and there is enough available
data and other information technology to support valuation, assets or liabilities of feature selection and market
participants in the trading of the underlying asset or liability considered consistent input value and priority as the
relevant observable inputs. Where relevant observable inputs can not get or do not get as far as practicable, the use
of unobservable inputs.
Provision of impairment reserve for impairment of financial assets (excluding account receivables)
The company reviews the carrying value of the financial assets (excluding those measured by fair value and the
change thereof is recorded in current gains and losses) on the balance sheet date, if there is objective evidence
showing impairment of the financial assets, it shall provide impairment reserve.
Objective evidence that a financial asset is impaired includes the following observable events:
1. Significant financial difficulty of the issuer or obligor;
2. A breach of contract by the borrower, such as a default or delinquency in interest or principal payments;
3. The creditor, for economic or legal reasons relating to the borrower’s financial difficulty, granting a concession
to the borrower;
4. It becoming probable that the borrower will enter bankruptcy or other financial reorganizations;
深圳市深宝实业股份有限公司 2016 年年度报告全文
5. The disappearance of an active market for that financial asset because of financial difficulties of the issuer;
6. Observable data indicating that there is a measurable decrease in the estimated future cash flows from a group
of financial assets since the initial recognition of those assets, although the decrease cannot yet be identified with
the individual financial assets in the group, including: adverse changes in the payment status of borrowers in the
group, an increase in the unemployment rate in the country or geographical area of the borrowers, a decrease in
property prices for mortgages in the relevant area, or adverse changes in industry conditions that affect the
borrowers in the group;
7. Significant adverse changes in the technological, market, economic or legal environment in which the issuer
operates, indicating that the cost of the investment in the equity instrument may not be recovered by the investor;
8. A significant or prolonged decline in the fair value of an investment in an equity instrument below its cost;
Details for impairment of financial assets are set out below:
(1) Impairment provision for available-for-sale financial assets
The Group has separately tested various available-for-sale equity instruments at the balance sheet date. It will be
defined as impairment if the fair value is lower than the initial investment cost by more than 50% (including 50%)
or the low state has lasted for no less than 1 year. While the lower proportion is between 20% and 50%, the Group
will take other factors such as price fluctuation into consideration to estimate whether the equity instrument has
impaired or not.
Initial segment of the \"cost\" of the sale of equity instruments in accordance with available cost less any principal
repayment and amortization, impairment loss has been included in determining profit or loss; The fair value of the
available-for-sale equity instrument investment without an active market is determined by the present value
determined on the basis of the current market return similar to financial assets versus the future discounted cash;
the fair value of available-for-sale equity instrument investment with offers in the active market is determined by
the closing price of the stock exchange at the end of the period, unless this available-for-sale equity instrument
investment has a restricted stock trade period.For the presence of restricted investments in equity instruments
available for sale, according to the end of the closing price of the stock exchange market participants by deducting
the risk equity instrument within a specified period cannot be sold on the open market and the requirements to
obtain compensation.
When an available-for-sale financial asset is impaired, the cumulative loss arising from decline in fair value that
had been recognized in other comprehensive income is reclassified to the profit or loss even though the financial
asset has not been derecognized. The amount of the cumulative loss that is removed from equity is the difference
between the acquisition cost (net of any principal repayment and amortization) and current fair value, less any
impairment loss on that financial asset previously recognized in profit or loss.
If there are objective evidences showing that the value of available-for-sale debt instrument is recovered and it
relates to the matters happened after the impairment loss recognition, the impairment loss recognized shall be
深圳市深宝实业股份有限公司 2016 年年度报告全文
reversed and accounted in current profit or loss. Impairment losses recognized for equity instrument investments
classified as available-for-sale are reversed through equity. However, impairment loss occurred by equity
instrument investment which is not quoted in an active market and whose fair value cannot be measured reliably
and derivative financial assets which are linked to the equity instrument and whose settlement is conditional upon
delivery of the equity instrument, shall not be reversed.
(2) Impairment provision for held-to-maturity investment
For held-to-maturity investment, if there is object evidence showing the investment is impaired, then impairment
loss is determined based on the difference between its fair value and present value of predicted future cash flow.
After provision, if there is evidence showing its value has been restored, the originally recognized impairment loss
can be reversed and included in current profit or loss, provided that the reversed carrying value shall not exceed
the amortized cost of the financial asset as at reversal date assuming no impairment provision had been made.
Offset of financial assets and financial liabilities
Financial assets and financial liabilities are stated in balance sheet separately without inner-offset. However, the
net amount after inner offset is stated in balance sheet date when the following conditions are all met:
(1) The Company has legal right to offset recognized amount and the right is enforceable;
(2) The Company plans to settle on a net basis, or simultaneously realize the financial assets and settle the
financial liabilities.
11. Account receivable
(1) Account receivable with single significant amount and withdrawal single item bad debt provision
Amount occupied 10 percent (including 10 percent) of the
Account with single significant amount
balance of account receivable.
Conducted impairment testing separately, balance between the
present value of future cash flow and its carrying value, bad debt
Withdrawal method for bad debt provision of account receivable
provision withdrawal and reckoned into current gains/losses. For
with single significant amount
those without impairment being found after test, collected into
relevant combination for accrual.
(2) Accounts receivable whose bad debts provision was accrued by combination based on credit risk
characteristics portfolio
Combination Bad debt provision accrual
Party composition within the scope of consolidation related Other method
Aging of accounts group Age analysis method
Group with bad debt provision accrual by aging:
√ Applicable □ Not applicable
Age Accrual ratio Accrual ratio for other receivable
Within one year (one year included) 0.00% 0.00%
1－2 years 5.00% 5.00%
深圳市深宝实业股份有限公司 2016 年年度报告全文
2－3 years 10.00% 10.00%
Over 3 years 15.00% 15.00%
3－4 years 15.00% 15.00%
4－5 years 15.00% 15.00%
Over 5 years 15.00% 15.00%
In combination, withdrawal proportion of bad debt provision based on balance proportion
□ Applicable √ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods:
□ Applicable √ Not applicable
(3) Account receivable with minor single amount but with withdrawal bad debt provision for single item
There is objective evidence that the Company will not be able to
Reasons for provision of bad debt reserve
recover the money under the original terms of receivables.
Withdrawn according to the difference between present value of
Provision method of bad debt reserve
expected future cash flows and the book value of the receivables.
12. Inventories
Whether the company needs to comply with the disclosure requirements of the particular industry
No
1. Classification
Inventory means finished goods and merchandise that are ready for sale, work-in-progress, or material used in the
process of production or provision of service in the ordinary course of business. Inventory includes merchandise
in warehouse, delivered goods, work- in-progress, raw materials, subcontracted materials, packages, etc.
1. Valuation method
Inventory carried initial measured by cost, including purchasing cost, processing cost and other costs. The
inventory in transit was valued by weighted average method.
1. Recognized standards of the net realizable value for inventory and withdrawal method on provision of
inventory
After inventory at period-end, the inventories are accounted depending on which is lower between the cost and the
net realizable value or adjusted the provision of inventory. The net realizable value of inventory products and
sellable materials, in normal business production, is measured as the residual value after deducting the estimated
sales expense and related taxes and fees from the estimated selling price; the net realizable value of an item of
inventories subject to further processing, in normal business production, is measured as the residual value after
deducting the sum of the estimated costs of completion, sales expense and related taxes and fees from the
estimated selling price of the sellable item. The net realizable value of the quantity of inventories held to satisfy
firm sales or service contracts is based on the contract price. If the sales contracts are for less than the inventory
quantities held, the net realizable value of the excess is based on general selling prices.
An impairment allowance, if any, is generally individually recognized for each type of inventories at period-end
except: For an individual impairment allowance, if any, is recognized for the whole category of inventories of low
深圳市深宝实业股份有限公司 2016 年年度报告全文
value and large quantities; and for an individual impairment allowance, if any, is recognized for a group of
inventories, which are held for the production and sales of products of a single territory and for identical or similar
usages or purposes, and which are indistinguishable from other types of inventories within the group.
If the previous factors resulting in deduction of inventories values disappear, then such deduction of value shall be
reversed back from the original provision of inventory depreciation reserve, and turns to current gains and losses.
1. Inventory system
Inventory system is the perpetual inventory system.
1. Amortization of low-value consumables and packaging materials
(1) Adopt five-five amortization for low-value consumables;
(2) Adopt one-off writing off process for packaging materials
13. Classified as assets held for sale
14. Long-term equity investment
1. Recognition of investment cost
(1) As for the long-term equity investment formed from business combination under the same control, accounting
policy found in (V) Accounting method for busines combination (not) under the same control of Note IV
(2) Long-term equity investment obtained by other means
For long-term equity investments obtained through payment with cash, then the actual payment shall be viewed as
initial investment cost. Initial investment cost including the expenses, taxes and other necessary costs that directly
concerned with the long-term equity investment that acquired.
For long-term equity investments obtained through issuance of equity securities, then the fair value of such
securities shall be viewed as initial investment cost; for transaction expenses from issuing or own equity
instrument acquired, it can be deducted from the equity when such expenses attributable directly to equity
transaction.
Under the precedent condition that non-monetray assets exchanges are featured with commercial nature and fair
values of exchange-in or exchange-out assets can be reliably measured, long-term equity investment exchange-in
through non-monetary assets exchange shall be recognized with initial investment cost on the basis of the fair
value of the assets exchange-out, unless there is obvious evidence showing that fair value of exchange-in assets is
more reliable; as for non-monetray assets exchanges not satisfying such precedent condition, initial investment
cost of exchange-in long-term equity investment falls to the carrying value of exchange-out assets and relevant
taxes payable.
深圳市深宝实业股份有限公司 2016 年年度报告全文
For long-term equity investments obtained through debt reorgnization, its initial investment cost is recognized
based on fair value.
2. Subsequent measurement and recognition of gains and losses
(1) Cost method
The long-term equity investment control by invested entity shall counted by cost method, and pricing on initial
investment cost, cost of the long-term equity investment shall be adjusted while additional investment or
dis-investment.
Other than payment actually paid for obtaining investment or cash dividend or profit included in consideration
which has been declared while not granted yet, the Company recognizes investment income according to its share
in the cash dividend or profit declared for grant by the invested unit.
(2) Equity method
The Company calculates long term equity investment in associates and joint ventures under equity method. For
certain equity investments in associates indirectly held through risk investment institutions, joint funds, trust
companies or similar entities including investment linked insurance fund, the Company measures the investment
at fair value through profit or loss.
Where the initial investment cost of a long-term equity investment exceeds the Group’s share of the fair value of
the investee’s identifiable net assets at the time of acquisition, no adjustment is made to the initial investment cost.
Where the initial investment cost is less than the Group’s share of the fair value of the investee’s identifiable net
assets at the time of acquisition, the difference is recognized in profit or loss for the period.
Return on investments and other comprehensive income is recognized respectively by shares of net gains and
losses realized by the invested company and other comprehensive income after acquisition of long-term equity,
and book value of such investment is adjusted accordingly. Profit or cash dividends pro rata distributed by the
invested company are to minus book value of the relative long-term investment. Book value of long-term
investment is adjusted when changes occur other than net gains and losses, other comprehensive income and
profit distribution of the invested company, and is to reported in owners’ equity accordingly.
The Company should recognized net profit of invested unit after adjustment, based on fair value of vary
identifiable assets of invested unit while obtained investment, while recognized net profit or net losses of invested
units that should be enjoy by investment enterprise. the un-realized transaction gains/losses attributable to
investment enterprise, internally occurred between the Company, affiliated units and joint-ventures should
calculated by proportion of shares-holding which should be offset, than recognized investment gains/losses.
深圳市深宝实业股份有限公司 2016 年年度报告全文
When the Company is confirmed to share losses of the invested units, the following order shall prevail for
disposal: first of all, offset carrying value of long-term equity investment. Second, for long-term equity investment
whose carrying value is not enough for offset, investment loss should be continued to recognize within the limit of
carrying value of other long-term equity which substantially forms net investment to invested units, to offset
carrying value of long-term items receivable. At last, after the aforesaid treatment, if enterprise still bears
additional duties according to investment contract or agreement, projected liabilities are recognized in accordance
to the the obligations which are expected to undertake, and then recorded in current gains and losses.
In the event that the invested unit realizes profit in later periods, the Company will adopt disposal adversed to the
above order after deduction the unrecognized share of loss, i.e. write off the carrying value of the recognized
projected liabilities, recover carrying value of long-term equity which substantially forms net investment to
invested unit and long-term equity investment, and recognize investment income at the same time.
3. Transfer of calculation for long term equity investment
1. Measure at fair value transfer to equity method
For the equity investment originally held by the Company in which it has no control, common control or
significant influence over the investee and which is accounted for under recognition and measurement principle as
financial assets, in case that the Company becomes able to exercise significant influence or common control upon
the investee due to additional investment while no control is reached, the sum of fair value of the originally held
equity investment as determined under Business Accounting Principles No.22- Recognition and Measurement
Principle as Financial Assets plus cost of the new investment shall be deemed as the initial investment cost upon
calculation under equity method.
If the originally held equity investment is classified as available for sale financial assets, the difference between its
fair value and carrying value and the accumulated fair value movement which is originally included in other
comprehensive income shall be transferred to current period gains and losses under equity method.
In case that the initial investment cost under equity method is lesser than share of fair value of the investee’s net
identifiable assets as of the date when additional investment is made as calculated based on the latest shareholding
proportion upon additional investment, carrying value of the long term equity investment shall be adjusted against
such difference which is included in current period non-operating income.
1. Measure at fair value or calculation under equity method transfer to calculation under cost method
For the equity investment originally held by the Company in which it has no control, common control or
significant influence over the investee and which is accounted for under recognition and measurement principle as
financial instrument, or for long term equity investment originally held in associates or joint ventures, in case that
the Company becomes able to exercise control over investee not under common control due to additional
investment, the sum of fair value of the originally held equity investment plus cost of the new investment shall be
深圳市深宝实业股份有限公司 2016 年年度报告全文
deemed as the initial investment cost upon calculation under cost method when preparing separate financial
statement.
For other comprehensive income as recognized under equity method in respect of equity investment held prior to
acquisition date, when the Company disposes this investment, the aforesaid income shall be accounted for on the
same basis as the investee would otherwise adopt when it directly disposes relevant assets or liabilities.
For equity investment held prior to acquisition date which is accounted for under Business Accounting Principles
No.22- Recognition and Measurement of Financial Assets, the accumulated fair value movement which originally
included in other comprehensive income shall be transferred to current period gains and losses upon calculation
under cost method.
1. Calculation under equity method transfer to fair value measurement
In case that the Company lost common control or significant influence upon investee due to disposal of part equity
investment, the remaining equity investment shall be calculated under Business Accounting Principles No.22-
Recognition and Measurement of Financial Assets, and the difference between its fair value and carrying value as
of the date when the Company lost common control or significant influence shall be included in current period
gains and losses.
For other comprehensive income as recognized under equity method in respect of the original equity investment,
when the Company ceases calculation under equity method, the aforesaid income shall be accounted for on the
same basis as the investee would otherwise adopt when it directly disposes relevant assets or liabilities.
1. Cost method transfer to equity method
In case that the Company lost control upon investee due to disposal of part equity investment, and if the remaining
equity investment can exercise common control or significant influence over the investee, equity method shall be
adopted when preparing separate financial statement, and the remaining equity investment shall be adjusted as if it
had been stated under equity method since the acquisition.
1. Cost method transfer to fair value measure
In case that the Company lost control upon investee due to disposal of part equity investment, and if the remaining
equity investment cannot exercise common control or significant influence over the investee, Business Accounting
Principles No.22- Recognition and Measurement of Financial Assets shall be adopted for accounting treatment
when preparing separate financial statement, and the fair value and carrying value as of the date when control is
lost shall be included in current period gains and losses.
4. Disposal of long term equity investment
Difference between carrying value and actual acquisition price in respect of disposal of long term equity
深圳市深宝实业股份有限公司 2016 年年度报告全文
investment shall be included in current period gains and losses. For long term equity investment under equity
method, the Company shall adopt the same basis as the investee directly disposes relevant assets or liabilities
when disposing this investment, and account for the part originally included in other comprehensive income under
appropriate proportion.
If the terms, conditions and economic impact of each transaction involved in the disposal by steps of investment
in subsidiaries fall into one or more of the following situations, such transactions will be accounted for as a
package deal:
1. Such transactions are entered into simultaneously or in the case of considering the impact of each other;
2. Such transactions as a whole in order to reach complete commercial results;
3. The occurrence of one transaction is subject to that of at least one other transaction;
4. A transaction alone is not economic, but otherwise when considered with other transactions.
Enterprises that lose control of their original subsidiaries due to the disposal of partial equity investment or
otherwise, and therefore disqualify a package deal, should prepare the relevant accounting treatment in
differentiation with individual financial statements and consolidated financial statement:
(1) In separate financial statement, as for disposal of equity interest, difference between carrying value and actual
acquisition price shall be included in current period gains and losses. In case that the remaining equity interests
can exercise common control or significant influence over investee, it shall be stated under equity method in stead,
and shall be adjusted as if the remaining equity interests had been stated under equity method since the acquisition.
In case that the remaining equity interests cannot exercise common control or significant influence over investee,
it shall be accounted for under Business Accounting Principles No.22- Recognition and Measurement Principle of
Financial Instruments, and the difference between its fair value and carrying value as of the date then the
Company lost control shall be included in current period gains and losses.
(2) In consolidated financial statement, for those transactions occurred before lost of control in subsidiaries, the
difference between disposal price and share of net assets of subsidiaries since purchase date or combination date
shall be used to adjust capital reserve (equity premium), and if capital reserve is insufficient to offset, then it shall
adjust retained earnings; when the Company lost control in a subsidiary, the remaining equity interests would be
re-measured at the fair value as of the control-lost date. The sum of consideration gained from the disposal of
equity and the fair value of remaining equity minus the share of net assets of original subsidiaries since the day of
purchase and based on its original shareholding ratio is credited into investment gain for the current period, and
off-set the goodwill at the same time. Other comprehensive income in relation to equity investments of original
subsidiaries should be transferred to investment gain for the period at the time of loss of control.
Each transaction involved in the disposal of equity investments of subsidiaries until loss of control falls into a
package deal, carrying accounting treatment on transaction of losing control rights and disposing the company,
深圳市深宝实业股份有限公司 2016 年年度报告全文
and should be accounted for accordingly in differentiation with individual financial statements and consolidated
financial statements:
(1) In consolidated financial statements, difference between each payment from disposal of an equity and the book
value of such long-term equity investment before the loss of control should be recognized as other comprehensive
income and at the time of loss of control, transferred to profit or loss for the current period.
(2) In consolidated financial statements, difference between each payment from disposal of a subsidiary and the
share of its net assets through investment before the loss of control should be recognized as other comprehensive
income and at the time of loss of control, transferred to profit or loss for the current period.
5. Criteria for common control and significant influence
Where the Company jointly controls an arrangement with other participators under agreed terms, and decisions
which materially affect return of such arrangement can only exist when other participators unanimously agree on
the decisions, the Company is deemed to jointly control this arrangement with other participators, and the
arrangement belongs to joint venture arrangement.
In case of a joint venture arrangement concluded through separate entity, when the Company is judged to be
entitled to the net assets of the separate entity under relevant agreements, the entity shall be viewed as a joint
venture under equity method. However, when the Company is judged to be not entitled to the net assets of the
separate entity under relevant agreements, the entity shall be viewed as a joint operation, in which case, the
Company recognizes items relating to its share of interests from the joint operation and accounts for according to
relevant business accounting rules.
Significant influence refers to that investor has right to participate in making decisions relating to the financial and
operational policies of the investee, while not able to control or jointly control (with others) establishment of these
policies. The following one or more conditions are based to judge whether the Company has significant influence
over investee with consideration of all facts and situations: (1)has delegate in the board of directors or similar
authority organs of investee; (2)participate in establishing financial and operational policies of the investee;
(3)occur material transactions with the investee; (4)delegate management to the investee; (5)provide key technical
data to the investee.
15. Investment real estate
Measurement
Measured by cost
Depreciation or amortization method
Investment real estate is defined as the real estate with the purpose to earn rent or capital appreciation or both,
including the rented land use rights and the land use rights which are held and prepared for transfer after
appreciation, the rented buildings.
深圳市深宝实业股份有限公司 2016 年年度报告全文
The investment property of the Company is accounted at its cost. Cost of investment property purchased from the
external sources includes purchase payment, related taxes and other expenditures which can be directly
attributable to such assets; Cost of investment property constructed by the Company comprise of the necessary
expenditure occurred during the construction for reaching the condition of planned use.
The Company adopts cost method for subsequent measurement of investment property. As for the investment
property measured at cost method – buildings for lease are depreciated under the policies which are the same as
fixed assets, and land use right for lease are amortized under the policies which are the same as intangible assets.
When use of investment property changes to be used by the company itself, the company shall transfer the
investment property to fixed assets or intangible assets since the change date. When use of the self-use real estate
changes for earning rental or capital appreciation, the company shall transfer the fixed assets or intangible assets
to investment property since the change date. For such transfer, the carrying value prior to the transfer is deemed
to be the value accounted after the transfer.
The company would de-realize investment property when the same is disposed or out of use forever and no
economic benefit would be obtained from such disposal. The disposal income from sale, transfer, dump or destroy
of investment property less its carrying value and related taxes is recorded in current gains and losses.
16. Fixed asset
(1) Recognition of fixed assets
Fixed assets is defined as the tangible assets which are held for the purpose of producing goods, providing
services, lease or for operation & management, and have more than one year of service life. Fixed assets should be
recognized for qualified the followed conditions at the same time: (1) It is probable that the economic benefits
associated with the assets will flow into the Company; (2) The cost of the assts can be measured reliably. Among
them, the cost of outsourcing fixed assets includes the buying price, import tariff and other related taxes and fees,
as well as other expenses occurred before making the fixed assets reach the intended serviceable condition and
can be directly attributable to the assets. The cost of self-constructed fixed assets consists of the necessary
expenses occurred before reaching the intended serviceable condition by the construction of the assets. The fixed
assets invested by the investors take the value stipulated by investment contract or agreement as the entry value,
but it should take the fair value as the entry value when the value stipulated by investment contract or agreement
is not fair. When the cost of purchasing fixed assets has a delay in payment
exceeding the normal credit terms and substantially possesses financing, the cost of fixed assets is determined on
the basis of the present value of the purchasing price. The balance between the actual paid cost and the present
value of purchasing price is reckoned in the current profits and losses in the credit period, except for the
capitalization. Subsequent measurement and disposal of fixed assets (1) Depreciation of fixed assets is accrued
within the estimated useful life after deducting the estimated residual value from its entry value. For the fixed
assets accrued with provision for impairment, determine the amount of depreciation by the book value deducting
深圳市深宝实业股份有限公司 2016 年年度报告全文
the provision for impairment and according to the useful life. The Company determines the useful life and
estimated net residual value of fixed assets according to the nature and use of fixed assets, and rechecks the useful
life, estimated net residual value, and depreciation method of fixed assets at the end of the year, and makes
corresponding adjustments if there is difference with the original estimated number. (2) The follow-up expenses of
fixed assets and the follow-up expenses related to fixed assets are included in the cost of fixed assets if they meet
the requirements for recognition of fixed assets; those cannot meet the requirements for recognition of fixed assets
should be included in the current profits and losses when occur. (3) When the fixed assets are disposed, or
expected not to generate economic benefits through use or disposal, derecognize the fixed assets. The amount
after deducting its book value and related taxes and dues from the disposal income of the fixed assets sale, transfer,
retirement or impairment is included in the current profits and losses.
(2) Depreciation methods
Yearly depreciation
Categories Method Years of depreciation Scrap value rate
rate
Houses and buildings: Straight-line
35 5 2.71
production buildings depreciation
Houses and buildings: Straight-line
40 5 2.38
production buildings depreciation
Houses and buildings: Straight-line
9 5 10.56
makeshift depreciation
Straight-line
Mechanical equipment 12 5 7.92
depreciation
Straight-line
Transportation vehicle 9 5 10.56
depreciation
Straight-line
Other equipment 6 5 15.83
depreciation
(3) Recognition, measurement and depreciation of fixed assets held under finance lease
A fixed asset leased by the Company is recognized as the fixed asset held under finance lease if one or more of the
following criteria are met: (1) Upon the expiry of the lease term, the ownership is transferred to the Company. (2)
The Company has the option to purchase the asset at a predetermined price that is expected to be sufficiently
lower than the fair value at the date the option becomes exercisable and it is reasonably ascertained at the
inception of lease that the option will be exercised. (3) The lease term approximates the useful life of the relevant
asset even if the ownership is not transferred. (4) At the inception of the lease, the present value of the minimum
lease payments is substantially equivalent to the fair value of the leased asset. (5) The leased assets are of such a
specialized nature that only the Company can use them without major modification. A fixed asset held under
finance lease is initially recognized at the lower of fair value of the leased asset and the present value of the
minimum lease payments, while the amount of the minimum lease payments will be recognized as the entry value
of long-term account payable, the difference between them will be recognized as unrecognized financing costs.
The initial direct costs such as commissions, attorney’s fees, and travelling expenses, stamp duties attributable to
the leased item incurred during the process of lease negotiating and signing the leasing agreement shall be
recorded in the asset value. Unrealized finance costs will be amortized using actual interest rate method over each
深圳市深宝实业股份有限公司 2016 年年度报告全文
period during the lease terms. The Company adopts depreciation policies for leased assets consistent with those of
self-owned fixed assets for the purpose of calculating the depreciation of a leased asset. If it is reasonable to be
certain that the lessee will obtain the ownership of the leased asset when the lease term expires, the leased asset
shall be fully depreciated over its useful life. If it is not reasonable to be certain that the lessee will obtain the
ownership of the leased asset at the expiry of the lease term, the leased asset shall be fully depreciated over the
shorter one of the lease term or its useful life.
17. Construction in process
Whether the company needs to comply with the disclosure requirements of the particular industry
No
1. Initial measurement of constructions under progress
Self-constructed constructions under progress of the Company are carried at actual costs. Actual costs include the
necessary expenses for constructing such asset to the expected useable condition, including material costs for
project, labor cost, related taxes and fees paid, borrowing expenses to be capitalized and indirect costs to be
amortized. The constructions under progress of the Company are accounted for by project category.
2. Standard and point of time for construction in process carrying forward to fixed assets
Fixed asset is booked with the entire expenditures occurred in the construction in process till it arrives at predicted
state for use. For those constructions in process of fixed assets which have already arrived at the predicted state
for use, while still with absence of completion settlement, they shall be carried forward to fixed assets at the
estimated value based on engineering budget, construction cost or actual cost commencing from the date of arrival
of the predicted state for use. Meanwhile, they shall be also subject to the depreciation policies applicable to fixed
assets of the Company for provision of depreciation. Once completion settlement is made, the original temporary
estimated value shall be adjusted at the effective cost. However, the original provision of depreciation remains
unchanged.
18. Borrowing expenses
1. Recognition of the borrowing expenses capitalization
Borrowing expenses that attributed for purchasing or construction of assets that are complying with capitalizing
conditions start to be capitalized and counted as relevant assts cost; other borrowing expenses, reckoned into
current gains and losses after expenses recognized while occurred.
Assets satisfying the conditions of capitalization are those assets of fixed, investment real estate etc. which need a
long period of time to purchase, construct, or manufacturing before becoming usable.
Capitalizing for borrowing expenses by satisfying the followed at same time:
(1) Assets expense occurred, and paid as expenses in way of cash, non-cash assets transfer or debt with interest
taken for purchasing, constructing or manufacturing assets that complying with capitalizing condition;
深圳市深宝实业股份有限公司 2016 年年度报告全文
(2) Borrowing expenses have occurred;
(3) Necessary activities occurred for reaching predicted usable statues or sale-able status for assets purchased,
constructed or manufactured.
2. Period of capitalization
Capitalizing period was from the time star capitalizing until the time of suspended capitalization. The period for
borrowing expensed suspended excluded in the period.
If purchasing, construction, or manufacturing process of an asset satisfying the conditions of capitalization
reached its predicted usable status or sale-able status, capitalization suspended for borrowing expenses.
If purchasing, construction, or manufacturing process of an asset satisfying the conditions of capitalization
completed projects and usable independently for part of the projects, borrowing expenses for this kind of assts
shall suspended capitalization.
If the assets have been completed in every part, but can be reached the useful status or sale-able status while
completed entirely, the borrowing expense shall be suspended for capitalization while the assets completely
finished in whole.
3. Period of suspended
If purchasing, construction, or manufacturing process of an asset satisfying the conditions of capitalization is
suspended abnormally for over 3 months, capitalizing of borrowing expenses shall be suspended; the suspended
assets that satisfying the conditions of capitalization meets the necessary procedure of reaching predicted usable
status or sellable status, capitalizing of borrowing expenses shall be resumed. The borrowing expenses occurred
during the period of suspended shall reckon into current gains and lossesuntil the purchasing, construction, or
manufacturing process is resumed for capitalizing.
4. Calculation for capitalization amount
Interest expenses practically occurred at the current term of a special borrowing are capitalized after deducting of
the bank saving interest of unused borrowed fund or provisional investment gains.
Capitalization amounts of common borrowings are decided by the weighted average of exceeding part of
accumulated asset expenses over the special borrowing assets multiply the capitalizing rate of common
borrowings adopted. Capitalization rates are decided by the weighted average of common borrowings.
For those expenses with discount or premium, determined the amortizable discount or premium in every fiscal
year by effective interest method, than adjusted interest amount in every period.
深圳市深宝实业股份有限公司 2016 年年度报告全文
19. Biological assets
Classification of biological assets
Biological assets of the Company refer to the productive biological assets. Productive biological assets included
tea tree.
Biological assets are recognized when the following three conditions are fully satisfied:
(1) An enterprise owns or controls such biological assets due to the past transactions or events；
(2) It may result in the inflow of economic benefits or service potential in relation to such biological assets;
1. Cost of such biological assets can be reliably measured.
Initial recognition of Biological assets
The biological assets witll initially measured by cost while obtained. The cost of biological asset used for
production purchased from the outside includes the purchase price, related taxes, transportation expense,
insurance premium and other charges directly attributable to the purchase of such asset. Biological asset used for
production input by investors is stated at its entry value which is calculated based on the value as stipulated in the
investment contract or agreement plus the related taxes payable. Where value stipulated in the contract or
agreement is not fair, the actual cost is fixed at fair value.
Subsequent measurement of biological assets
(1) Follow-up expenses
The cost of consumptive biological assets constituted by the actual costs of self-cultivated and constructed
consumptive biological assets occurred before closing, and the follow-up expenses such as management and
protection occurred after closing are included in the current profits and losses.
The cost of productive biological assets constituted by the actual costs of self-cultivated and constructed
productive biological assets occurred before achieving the intended production and operation goals, and the
follow-up expenses such as management and protection occurred after achieving the intended production goals are
included in the current profits and losses.
(2) Depreciation of productive biological assets
The Company adopts the straight-line method to make depreciation on schedule for the productive biological
assets achieving the intended production and operation goals. The Company determines the useful life
and estimated net residual value based on the nature and use condition of productive biological
assets and the expected realization way of related economic benefits; rechecks the nature, use
condition and depreciation methods of productive biological assets at the end of the year, and makes
corresponding adjustments if there is difference with the original estimated number.Biological assets
of the Company refer to the tea plants. For those productive biological assts that reached its predicted productive
purpose, withdrawal depreciation by average age method. The service life was determined by the residual terms of
the residual term of land use after deducting the un-maturity period (5-year) of the tea plants with 5 percent
salvage value calculated. Reviewing the service life, predicted salvage vale and depreciation method at year-end,
深圳市深宝实业股份有限公司 2016 年年度报告全文
if there have difference between the predicted number and original estimated number or have major changes on
way of profit earning, than adjusted the service life or predicted salvage value or depreciation method as account
estimation variation.
(3) Disposal of biological assets:
When harvesting or selling consumable biological assets, the cost of biological assets after the shift of use is
stated at the carrying amount at the time of shift of use. When sold, destroyed and inventory losses occurred, the
disposal income of biological assets net of carrying amount and related taxes shall be charged to profit or loss for
the current period.
Biological assets impairment
The company inspects the consumptive biological assets and productive biological assets at least at the end of
each year, conclusive evidence indicates that if the net realizable value of consumptive biological assets and the
recoverable amount of productive biological assets are less than the book value due to natural disasters, insect
pests, animal diseases or changes in market demand, the company accrues the provision for losses or provision for
impairment of biological assets and reckons in the current profits and losses according to the balance between the
net realizable value or recoverable amount and the book value.
For those that the influencing factor of the depreciation of consumptive biological assets has disappeared, recover
the write-down amount and reverse within the amount of provision for losses originally accrued, and reckon the
reversed amount in the current profits and losses. The provision for impairment of productive biological assets
shouldn’t be reversed once being accrued.
20. Oil and gas assets
21. Intangible assets
(1) Measurement, use of life and impairment testing
An intangible asset is an identifiable non-monetary asset without physical substance owned or controlled by the
Company, including land use right, technical know-how, forest tree use right, trademark use right and software
use right.
1. Measurement of intangible assets
For those intangible assets purchased from outside, the purchase value, relevant taxes and other payments
attributable to predicted purpose obtained should recognized as cost for this assts. For those purchased amount
that paid overdue exceeded the normal credit condition, owns financing natures actually, the cost should be
recognized based on the current value while purchased.
As for the intangible assets acquired from the debtor in debt restructuring for the purpose of settlement of debt, the
fair value of the intangible assets shall be based to determine the accounting value. The difference between the
carrying value of restructured debt and the fair value of the intangible assets use for settlement of debt shall be
深圳市深宝实业股份有限公司 2016 年年度报告全文
recorded in current gains and losses.
With the preceding conditions that non-monetary assets exchange has commerce nature and the fair value of the
assets exchanged in or out can be measured reliably, the intangible assets exchanged in through non-monetary
assets exchange are accounted at the value based on the fair value of assets exchanged out, unless there is obvious
evidence showing the fair value of assets exchanged in is more reliable; for non-monetary assets exchange not
qualifying for the preceding conditions, the carrying value of assets exchanged out and related taxes payable shall
be viewed as the cost of intangible assets exchanged in, without recognition of gains and losses.
Intangible assets obtained by means of enterprise mergered under common control, recognized book-keeping
value by the book value of mergered party; Intangible assets obtained by means of enterprise mergered under
different control, recognized book-keeping value by the its fair value.
For those cost of intangible assets development internally including: the used materials, labor cost and register
charge for development; amortization for other patent and concession used and interest expense satisfying the
capitalization condition during process of development; other directly expense before reached its predated useful
purpose.
1. Subsequent measurement
Analysis and determined the service life for intangible assts while obtained. And classified into intangible assets
with limited useful life and assets without certain service life.
1. Intangible assets with limited useful life
Those intangible assets with limited useful life are evenly amortized on straight basis from the date when they
become useable to the end of expected useful life. Particular about the estimation on intangible assets with limited
service life:
Item Predicted useful life Basis
Amortized the actual rest of life after certificate of land
Land use right Certificate of land use right
use right obtained
Proprietary technology 20-year Actual situation of the Company
forest tree use right Service life arranged Protocol agreement
trademark use right 10-year Actual situation of the Company
software use right 5-8-year Protocol agreement
At end of report term, revising will be performed on the useful life of intangible assets with limited useful life and
the methods of amortizing; if there is a differences been found with the original estimated number, corresponding
adjustment shall prevail.
Being revised, the useful life of intangible assets and amortization method at period-end shows the same as
previous
深圳市深宝实业股份有限公司 2016 年年度报告全文
1. Intangible assets without certained service life
Intangible assets for which it is impossible to predict the term during which the assets can bring in economic
benefits are viewed as intangible assets with indefinite life.
Intangible assets with indefinite life are not amortized during the holding period, and useful life is re-reviewed at
the end of each accounting period. In case that it is still determined as indefinite after such re-review, then
impairment test will be conducted continuously in every accounting period.
The Company has no such intangible assets without certained service life after review.
(2) Internal accounting policies relating to research and development expenditures
1. Detail standard for classification on research stage and exploitation stage
Research stage: stage of the investigation and research activities exercising innovative-ness for new science or
technology knowledge obtained and understanding.
Exploitation stage: stage of the activities that produced new or material advance materials, devices and products
that by research results or other knowledge adoption in certain plan or design before the commercial production or
usage.
The expenditure of the research stage in R&D project internally shall reckon into current gains and losses while
occurred.
1. Standards for capitalization satisfaction of expenditure in exploitation state
Intangible assets recognized for expenditure in exploitation stage by satisfying the followed at same time:
(1) Owes feasibility in technology and completed the intangible assets for useful or for sale;
(2) Owes the intention for completed the intangible assets and for sale purpose;
(3) Way of profit generated including: show evidence that the products generated from the intangible assets owes
a market or owes a market for itself; if the intangible assets will use internally, than show evidence of useful-ness;
(4) Possess sufficient technique, financial resources and other resources for the development of kind of intangible
assets and has the ability for used or for sale;
(5) The expenditure attributable to the exploitation stage for intangible assets could be measured reliably.
Expenditure happened in development phase not satisfying the above conditions is included in current period
gains and losses when occurs. Development expenditure previously included in gains and losses in previous
periods will not be re-recognized as assets in later periods. Capitalized development expenditure is stated in
balance sheet as development expenditure, and is transferred to intangible assets when the project is ready for
planned use.
深圳市深宝实业股份有限公司 2016 年年度报告全文
22. Impairment of long term assets
Long term asset is judged whether for which there is indication of impairment on balance sheet date. If there is
indication of impairment, the Company would estimate its recoverable amount based on single asset; if it is
difficult to estimate the recoverable amount of single asset, then the assets group which the single asset belongs to
is based to determine the recoverable amount of the assets group.
Recoverable amount of an asset is determined at the higher of its fair value less disposal fee and present value of
its predicted future cash flow.
If measurement of recoverable amount shows that the recoverable amount of long term asset is lower than
carrying value, and then the carrying value shall be deducted to recoverable amount, with the deducted amount
recognized as impairment loss which is included in current period gains and losses, meanwhile, asset impairment
provision shall be made accordingly. Once recognized, asset impairment loss would not be reversed in future
accounting period.
Once an asset is recognized for impairment loss, its depreciation or amortization expense would be adjusted in
future periods, so as to systematically allocate the adjusted asset carrying value (after deduction of predicted net
residual value) during the remaining useful life.
Goodwill arising from business combination and intangible assets with indefinite useful life shall be tested
annually for impairment whether or not there is indication of impairment.
When goodwill impairment testing comes, book value of goodwill is allocated to asset group or combination
benefit from the synergies of the business combination. When conducting impairment test for relevant asset group
with inclusion of goodwill, in case that there is indication of impairment for such asset group, impairment test
would be firstly conducted in respect of the asset groups without inclusion of goodwill. Then, it shall calculate the
recoverable amount and determine the corresponding impairment loss as compared to its carrying value. Second,
asset group with inclusion of goodwill would be tested for impairment. If it is found after comparison between the
carrying value and recoverable amount of the asset group that the recoverable amount is less than carrying value,
the Company would recognize impairment loss for goodwill.
23. Long term prepaid expense
Amortization method
Long term prepaid expense represents the expense which the Company has occurred and shall be amortized in the
current and later periods with amortization period exceeding one year. Long term prepaid expense is amortized
during the beneficial period under straight line method.
24. Staff remuneration
深圳市深宝实业股份有限公司 2016 年年度报告全文
(1) Short term remuneration
Employee remuneration refers to the various forms of remuneration or compensation given by the Company to
obtain the services provided by the employees or to terminate the labor relations. Employee remuneration includes
short-term remuneration, after-service benefits, dismissal benefits and other long-term employee benefits.
Short term remuneration refers to all the staff remuneration payable by the Company to its staff within 12 months
after the end of annual reporting period in which staff provides relevant services, other than post office benefit and
dismissal benefits. The Company recognizes short term remuneration payables as liabilities during the accounting
period during which staff provides services, and includes in cost and expense of relevant asset according to the
beneficial parties of such services.
(2) Post office benefits
Post office benefits refer to kinds of remuneration or benefits granted by the Company to staff for their provision
of service upon retirement or release of employment, other than short term remuneration and dismissal benefits.
Post benefit plan is categorized as defined withdraw plan and defined benefit plan.
Defined withdraw plan under post office benefit mainly represents participation into social basic pension
insurance and unemployment insurance operated by labor and social security authorities. During the accounting
period when employee provides services for the Company, the contribution calculated under defined withdraw
plan would be recognized as liabilities and included in current gains and losses or relevant asset cost.
Other than periodic payment of the aforesaid amounts in compliance with national standards, the Company is not
obliged to make other payment.
(3) Dismissal benefit
Dismissal benefit represents compensation paid to employees for release of employment before expiration or as
compensation for their willing of cut, Liabilities arising from dismiss benefit shall be included in current profit
and loss when the company cannot unilaterally withdraw from the termination plan or take redundancy offer and
when reorganize the payment of termination benefits related to the cost.
(4) Other long term staff benefits
Other long term staff benefits refers to all the other staff benefits except for short term remuneration, post office
benefit and dismissal benefit.
For other long term staff benefits satisfying conditions under defined withdraw plan, the contribution payables
shall be recognized as liabilities and included in current gains and losses or relevant asset cost during the
accounting period in which the staff provides services to the Company.
深圳市深宝实业股份有限公司 2016 年年度报告全文
25. Accrual liability
1. Recognition standards for accrual liability
Responsibilities connected to contingent issues and satisfied all of the following conditions are recognized as
accrual liabilities:
The responsibility is a current responsibility undertaken by the Company;
Fulfilling of the responsibility may lead to financial benefit outflow;
The responsibility can be measured reliably for its value.
2. Measurement
Accrual liabilities shall conduct initial measurement by best estimation of expenditures needed by fulfillment of
current responsibilities.
While determined the best estimation, take the risks, uncertainty and periodic value of currency that connected to
the contingent issues into consideration. For major influence from periodic value of currency, determined best
estimation after discount on future relevant cash out-flow.
Treatment for best estimation:
If the expenditure has a continuous range, and with similar possibility within the range, the best estimation should
determined by the middle value within the range, that is the average amount between the up and low limit.
If the expenditure has no continuous range, or has a continuous range but with different possibility within the
range, the possibility amount shall determined as the best estimation while single events involved by contingency;
if many events were involved by contingency, the best estimation shall be determined by various results and
relevant probability.
If the expenses for clearing of predictive liability is fully or partially compensated by a third party, and the
compensated amount can be definitely received, it is recognized separated as asset. Though the compensated
amount shall not greater than the book value of the predictive liability
26. Share payment
27. Preferred stock, perpetual debt and other financial instruments
28. Revenue
Whether the company needs to comply with the disclosure requirements of the particular industry
No
1. Recognition of the income from commodity sales
When main risks and rewards attached to the ownership of goods have been transferred to the buyer, reserved
neither continuous management power nor effective control over the goods, incoming payment can be measured
reliably, relative financial benefit possibly inflow to the company, cost occurred or will occur can be reliably
深圳市深宝实业股份有限公司 2016 年年度报告全文
measured, sales income of goods is recognized.
As for main sales in the Company, according to the arrival of acceptance period agreed in the contract, income
shall be recognized after the period expired
1. Basis on use right income for transaction assets
Financial benefit attached to the contract is possibly inflow to the company; Overall income of the contract can be
measured reliably. Determined the use right income for transaction assts respectively as followed:
(1) Amount of interest income: determined by the time and effective interest rate of the currency capital used by
other people.
(2) Amount of income from use: determined by the charge time and calculation method agreed in the relevant
contract or agreement.
29. Government Grants
(1) Determination basis and accounting for government grants related to assets
1. Type
Governments grants of the Company refer to the monetary and non-monetary assets obtained from government
for free, and are divided into those related to assets and others related to revenues.
Government subsidies related to assets refer to those obtained by the Company and used for purchase or
construction of or otherwise to form long-term assets. Government subsidies related to revenue refer to those other
than government subsidies related to assets.
2. Recognition of government subsidies
At end of the period, if there is evidence show that the Company qualified relevant condition of fiscal supporting
polices and such supporting funds are predicted to obtained, than recognized the amount receivable as government
subsidy. After that, government subsidy shall recognize while actually received.
Government subsidies in the form of monetary assets are stated at the amount received or receivable. Government
subsidies in the form of non-monetary assets are measured at fair value; if fair value cannot be obtained, a
nominal amount (RMB1) is used. Government subsidies measured at nominal amount is recognized immediately
in profit or loss for the current period.
3. Accounting method
Government grants in relation to purchase of long-term assets such as fixed assets or intangible assets shall be
recognized as deferred income, and are recorded in non-operating income according to service life of such
constructed or purchased assets by installments.
深圳市深宝实业股份有限公司 2016 年年度报告全文
(2) Determination basis and accounting for government grants related to income
Government grants in relation to revenues, shall be recognized as deferred income upon acquisition and recorded
in current non-operating income during the periods in which relevant expenses are recognized when such grants
are for the purposes of compensating relevant expenses or losses of an enterprise in future periods; and shall be
directly credited to current non-operating income upon acquisition when such grants are for the purposes of
compensating occurred relevant expenses or losses of an enterprise.
When there is reversal of the government grants recognized, if the relevant deferred income exists, such deferred
income is offset against the balance of the carrying value with the excess dealt with in the profit or loss for the
period. If the relevant deferred income does not exist, it will be directly dealt with in the profit or loss for the
period.
30. Deferred income tax assets and deferred income tax liabilities
Deferred income tax assets and liabilities are measured and recognized based on the difference (temporary
difference) between the taxation bases of the assets and liabilities and their carrying value. As of the balance sheet
date, deferred income tax assets and liabilities are measured at the tax rate applicable during the period in which
the assets are recovered or liabilities are settled.
1. Reference for recognition of deferred income tax assets
Deferred income tax asset arising from deductible temporary difference is recognized to the extent of assessable
income which is likely to acquire to offset deductible temporary difference and for which deductible losses and
tax credit for subsequent years can be carried forward. However, deferred income tax assets arising from initial
measurement of assets or liabilities in transactions with the following characteristics would not be recognized:
(1)the transaction is not business combination; (2)occurrence of the transaction would neither affect accounting
profit nor affect assessable income or deductible loss.
For deductible temporary difference relating to investment in associates, the Company would recognize deferred
income tax assets accordingly if the following conditions are met: temporary difference is likely to be reversed in
foreseeable future and it is likely to acquire assessable income against which deductible temporary difference is
utilized.
1. Basis for determination of deferred income tax liabilities
Assessable temporary difference which should be paid while not paid yet for the current and previous periods is
recognized as deferred income tax liabilities, excluding:
(1) Temporary difference arising from initial measurement of goodwill;
(2) Transaction or issue arising from non business combination, and its occurrence would neither affect
accounting profit, nor affect temporary difference arising from assessable income (or deductible loss);
深圳市深宝实业股份有限公司 2016 年年度报告全文
(3) For assessable temporary difference relating to investments in subsidiary or associate, timing for reversal of
the temporary difference can be controlled and it is likely that the difference would not be reversed in foreseeable
future.
1. Deferred tax assets and liabilities are offset if all the following conditions are met.
(1) An enterprise has the legal rights to settle the income tax assets and income tax liabilities for the current period
by net amount;
(2) They relate to income taxes levied by the same tax authority on either the taxable entity has a legally
enforceable right or set off current income tax assets against current income tax liabilities, and different taxable
entities which either intend to settle the current income tax liabilities and assets on a net basis, or to realize the
assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax
liabilities or assets are expected to be settled or recovered.
31. Lease
(1) Accounting for operating lease
Accounting for operating lease
(1) The rental fee paid for renting the properties by the company are amortized by the straight-line method and
reckoned in the current expenses throughout the lease term without deducting rent-free period. The initial direct
costs related to the lease transactions paid by the company are reckoned in the current expenses.
When the lessor undertakes the expenses related to the lease that should be undertaken by the company, the
company shall deduct the expenses from the total rental costs, share by the deducted rental costs during the lease
term, and reckon in the current expenses.
(2) Rental obtained from assets leasing, during the whole leasing period without rent-free period excluded, shall
be amortized by straight-line method and recognized as leasing revenue. The initial direct costs paid with leasing
transaction concerned are reckoned into current expenditure; the amount is larger is capitalized when incurred,
and accounted for as profit or loss for the current period on the same basis as recognition of rental income over the
entire lease period.
When the company undertakes the expenses related to the lease that should be undertaken by the lessor, the
company shall deduct the expenses from the total rental income, and distribute by the deducted rental costs during
the lease term.
(2) Accounting for financing lease
Accounting for financing lease
(1) Assets lease-in by financing: On the beginning date of the lease, the entry value of leased asset shall be at the
lower of the fair value of the leased asset and the present value of minimum lease payment at the beginning date
of the lease. Minimum lease payment shall be the entry value of long-term accounts payable, with difference
深圳市深宝实业股份有限公司 2016 年年度报告全文
recognized as unrecognized financing expenses. The Company had no financing lease.
Unrecognized financing expenses shall be reckoned in financial expenses and amortized and using effective
interest method during the leasing period.
(2) Finance leased assets: on the lease commencement date, the company affirms the balance among the finance
lease receivables, the sum of unguaranteed residual value and its present value as the unrealized financing income,
and recognizes it as the rental income during the period of receiving the rent. For the initial direct costs related to
the rental transaction, the company reckons in the initial measurement of the finance lease receivables, and
reduces the amount of income confirmed in the lease term.
32. Other important accounting policy and accounting estimation
33. Changes of important accounting policy and estimation
(1) Changes of major accounting policies
□ Applicable √ Not applicable
(2) Changes of important accounting estimate
□ Applicable √ Not applicable
34. Other
Statement of changes in the financial statements
Ministry of Finance issued the VAT Accounting Treatment ( No. Cai Hui [2016] 22) on December 3, 2016.
VAT Accounting Treatment provides that the subject “business tax and additional” is adjusted to “taxes and
additional” after the comprehensive trial of changing business tax to value-added tax, this subject checks the
consumption tax, urban maintenance and construction tax, resources tax, education surcharge and property tax,
land use tax, travel tax, stamp duty and other related taxes and fees generated from the business operation
activities; “business tax and additional” item in the income statement is adjusted to \"taxes and additional\" item.
VAT Accounting Treatment also clearly requires that the debit balances at the end of the term of the classification
items including “VAT payable”, “unpaid VAT”, “deductible input tax”, “input tax to be certified”, and “overpaid
VAT” under the subject of “tax payable” should be listed on the “other current assets” or “other non-current
assets” items in the balance sheet as the circumstances may require; the credit balances at the end of the term of
the “tax payable - tax to be transferred” subject should be listed on the “other current liabilities” or “other
non-current liabilities” items in the balance sheet as the circumstances may require.
The Company has adjusted the amount of the financial statements, such as assets, liabilities and profits and losses
affected by the transactions from May 1, 2016 to the period of provision implementation due to the provisions
according to the VAT Accounting Treatment, including the property tax, land use tax, travel tax and stamp tax
occurred after May 1, 2016 are adjusted from “management fee” to “taxes and additional” of 2,467,835.20 yuan;
深圳市深宝实业股份有限公司 2016 年年度报告全文
reclassify from “tax payable” to “other current assets” of 1,746,552.42 yuan; neither retrospect or adjust the
transactions occurred from January 1, 2016 to April 30, 2016, nor retrospect or adjust the financial statements in
the comparable period of the 2016 financial statements.
VI. Taxes
1. Type of tax and rate for main applicable tax
Taxes Basis Rate
Service income from goods sales and
VAT taxable sales, intangible assets or real 17%, 11%, 6%, 5%, 3%
estate
Taxable turnover before to replace the
Urban maintenance and construction tax 5%, 7%
business tax with VAT
Corporate income tax Taxable income 15%, 25%
Educational surtax Turnover tax payable 5%
Business tax Taxable turnover 5%
Rate of income tax for different taxpaying body:
Taxpaying body Rate of income tax
The Company 25%
Shenbao Huacheng 15%
Including: Shantou Branch of Shenbao Huacheng 25%
Wuyuan Jufangyong 15%
Shenbao Sanjing 25%
Huizhou Shenbao Technologies 25%
Huizhou Shenbao Food 25%
Shenbao Properties 25%
Shenbao Industrial Trading & Developmen 25%
Hangzhou Jufangyong 25%
Shenbao Yuxing 25%
Shenbao Technology Center 25%
Fuhaitang Tea Ecology 25%
Chunshi Network 25%
Shenshenbao Investment 25%
Shenshenbao Tea Culture 25%
Yunnan Supply Chain 25%
Jufangyong Trading 25%
Shenbao Rock Tea 25%
深圳市深宝实业股份有限公司 2016 年年度报告全文
Pu’er Tea Trading Center 25%
2. Tax preferential and basis
Preferential tax policies and basis
Shenbao Huacheng, a wholly-owned subsidiary of the Company, has been granted High-tech Enterprise
Certification (No. GF201444201602) jointly promulgated by Shenzhen Commission on Innovation & Technology,
Shenzhen Finance Committee, Shenzhen Municipal Bureau of State Taxation and Shenzhen Municipal Bureau of
Local Taxation as at the date of 30 September 2014 with a valid term of 3 years. With relevant preferential
policies adopted by the State in favor of high-tech enterprises, all qualified high-tech enterprises are able to enjoy
the lower income tax rate of 15% for collection of enterprise income tax, capable for 3 years commencing from
the year when they are deemed as qualified. Shenbao Huacheng has favored from this preferential policy from
2014 to 2016.
Wuyuan Jufangyong, a wholly-owned subsidiary of the Company, has been granted High-tech Enterprise
Certification (No. GF201436000182) jointly promulgated by Jiangxi Provincial Department of Science &
Technology, Shenzhen Finance Committee, Finance Bureau of Jiangxi Province, Jiangxi Municipal Bureau of
State Taxation and Local Taxation as at the date of 8 October 2014 with a valid term of 3 years. With relevant
preferential policies adopted by the State in favor of high-tech enterprises, all qualified high-tech enterprises are
able to enjoy the lower income tax rate of 15% for collection of enterprise income tax, capable for 3 years
commencing from the year when they are deemed as qualified. Wuyuan Jufangyong has favored from this
preferential policy from 2014 to 2016.
3. Other
VII. Annotation to main items of consolidated financial statements
1. Monetary fund
In RMB
Item Closing balance Opening balance
207,519.80 184,337.59
Cash on hand
358,356,723.03 147,329,549.56
Cash in bank
500,000.00
Other monetary fund
358,564,242.83 148,013,887.15
Total
Other note
Monetary fund with restriction concerned at end of the Period:
Item Closing balance Opening balance
Guarantee deposit --- 500,000.00
Total --- 500,000.00
2. Financial assets measured by fair value and with the variation recorded into current gains/losses
In RMB
Item Closing balance Opening balance
深圳市深宝实业股份有限公司 2016 年年度报告全文
Tradable financial assets 3,250,938.60 3,586,352.90
Equity investment 3,250,938.60 3,586,352.90
Total 3,250,938.60 3,586,352.90
Other explanation:
Closing balance refers to the 258,011 shares of A-stock under the name of “Shen Zhonghua-A”
3. Derivative financial assets
□ Applicable √ Not applicable
4. Note receivables
(1) Classification of notes receivable
In RMB
Item Closing balance Opening balance
Bank acceptance bill 38,922.90
Total 38,922.90
(2) Notes receivable already pledged by the Company at the end of the period
In RMB
Item Amount pledge at period-end
(3) Notes endorsement or discount and undue on balance sheet date
In RMB
Item Amount derecognition at period-end Amount not derecognition at period-end
(4) Notes transfer to account receivable due for failure implementation by drawer at period-end
In RMB
Item Account receivable transfer at period-end
Other note
No notes receivable already pledged by the Company at the end of the period
No notes endorsement or discount and undue on balance sheet date at the end of the period
No notes transfer to account receivable due for failure implementation by drawer at period-end
5. Account receivable
(1) Account receivable classified according to types
In RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Type Book
Accrual Accrual Book value
Amount Ratio Amount value Amount Ratio Amount
Ratio Ratio
深圳市深宝实业股份有限公司 2016 年年度报告全文
Account receivable
withdrawal bad debt 63,476,6 893,812. 62,582,86 77,217, 1,269,408 75,948,016.
provision by group of 75.89% 1.41% 79.93% 1.64%
credit risk 80.17 54 7.63 424.39 .27
characteristics
Account receivable
with single minor
amount but 20,164,6 20,164,6 19,391, 19,391,00
24.11% 100.00% 20.07% 100.00%
withdrawal bad debt 93.05 93.05 001.77 1.77
provision for single
item
83,641,3 21,058,5 62,582,86 96,608, 20,660,41 75,948,016.
Total 100.00% 25.06% 100.00% 21.39%
73.22 05.59 7.63 426.16 0.04
Account receivable with single significant amount and withdrawal bad debt provision separately at period end:
□Applicable √ Not applicable
Account receivable with bad debt provision withdrawal by age analysis in group:
√ Applicable □ Not applicable
In RMB
Closing balance
Age
Account receivable Bad debt reserve Accrual ratio
Subitem of within one year
Within 1 year 54,356,541.34
1-2 years 2,922,601.78 146,130.09 5.00%
2-3 years 3,638,962.27 363,896.23 10.00%
Over 3 years 2,678,694.78 401,804.22 15.00%
3-4years 252,980.76 37,947.11 15.00%
4-5 years 182,003.85 27,300.58 15.00%
5years above 2,243,710.17 336,556.52 15.00%
Total 63,596,800.17 911,830.54 1.43%
Explanation on combination determines:
In combination, withdrawal proportion of bad debt provision based on balance proportion for account receivable
□ Applicable √ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods for account receivable:
(2) Bad debt provision accrual collected or switch back
Bad debt provision accrual of RMB 481,905.06; collected or switch back bad debt provision of RMB 185,911.50.
Major bad debt provision collected or switch back:
In RMB
Name Amount Method
International Spice (China) Co., Ltd. 30,000.00 Cash
Shenzhen Dianfan Commerce & Trade
Co., LTd. (Shenzhen Ziguang Commerce 54,000.00 Cash
& Trade Co., LTd)
Shenzhen Kinsailong Equipment Company 30,000.00 Cash
深圳市深宝实业股份有限公司 2016 年年度报告全文
Shenzhen Zhi Trading Development Co.,
49,411.50 Cash
Ltd.
Beijing Jiuquan Space Water Beverage
15,000.00 Cash
Factory
Shanghai Hengjing Co., Ltd. 7,500.00 Cash
Total 185,911.50 --
(3) Account receivable actual charge off in the Period
In RMB
Item Amount written off
Written-off for the major receivable:
In RMB
Whether the money
Nature of accounts Performance written is generated by
Name Amount written off Reason written off
receivable off procedure related party
transactions
Written-off for the receivable:
(4) Top 5 receivables at ending balance by arrears party
Proportion in total
Name Closing balance receivables at closing Bad debt provision accrual
balance (%)
Customer 1 8,445,975.00 10.10 ---
Customer 2 6,808,215.00 8.14 ---
Customer 3 4,934,420.00 5.90 ---
Customer 4 4,653,000.00 5.56 ---
Customer 5 4,500,160.00 5.38 ---
Total 29,341,770.00 35.08 ---
(5) Account receivable derecognition due to financial assets transfer
(6) Assets and liabilities resulted by account receivable transfer and continues involvement
Other note:
6. Account paid in advance
(1) Aging analysis
In RMB
Closing balance Opening balance
Age
Amount Ratio Amount Ratio
Within 1 year 5,357,620.52 84.75% 16,227,516.31 87.24%
1-2years 826,840.85 13.08% 1,844,886.90 9.92%
深圳市深宝实业股份有限公司 2016 年年度报告全文
2-3years 31,530.94 0.50% 505,768.33 2.72%
Over 3 years 105,835.33 1.67% 23,428.80 0.12%
Total 6,321,827.64 -- 18,601,600.34 --
Reasons for significant repayment with over one year age without settle:
2. Top 5 accounts paid in advance at closing balance collected by objects
In RMB
Ratio in total account paid in advance
Name Closing amount
(%)
Supplier 1 1,749,823.04 27.68
Supplier 2 1,438,188.04 22.75
Supplier 3 388,224.62 6.14
Supplier 4 353,846.16 5.60
Supplier 5 300,000.00 4.75
Total 4,230,081.86 66.92
Other note:
7. Interest receivable
(1) Category
In RMB
Item Closing balance Opening balance
(2) Major overdue interest
Whether has the
Loan unit Closing balance Overdue time Overdue reason impairment and
judgment basis
Other note:
8. Dividend receivables
(1) Dividend receivables
In RMB
Item (or the invested entity) Closing balance Opening balance
(2) Major dividend receivable over 1 year
In RMB
Item (or the invested Reasons for not being Whether has the
Closing balance Age
entity) recovered impairment and
深圳市深宝实业股份有限公司 2016 年年度报告全文
judgment basis
Other note:
9. Other account receivable
(1) Other account receivable classified according to types:
In RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Type Book
Accrual Accrual Book value
Amount Ratio Amount value Amount Ratio Amount
ratio ratio
Other account
receivable with
single major amount 19,540,6 8,634,48 10,906,13 19,103, 8,197,820 10,906,134.
39.73% 44.19% 39.70% 42.91%
and withdrawal bad 18.68 4.39 4.29 954.35 .06
debt provision for
single item
Other account
receivable
withdrawal bad debt 12,066,3 329,042. 11,737,31 11,443, 329,438.8 11,113,637.
24.53% 2.73% 23.78% 2.88%
provision by group of 58.31 66 5.65 076.49 4
credit risk
characteristics
Other account
receivable with
single minor amount 17,577,7 17,577,7 17,577, 17,577,79
35.74% 100.00% 36.52% 100.00%
but withdrawal bad 95.82 95.82 795.82 5.82
debt provision for
single item
49,184,7 26,541,3 22,643,44 48,124, 26,105,05 22,019,771.
Total 100.00% 53.96% 100.00% 54.24%
72.81 22.87 9.94 826.66 4.72
Other receivable with single significant amount and withdrawal bad debt provision separately at end of period:
√ Applicable □ Not applicable
In RMB
Account Closing balance
receivable(units) Account receivable Bad debt reserve Accrual ratio Reasons
Changzhou Shenbao
Chacang E-commence Estimated recoverable
Co., Ltd. (Formerly 19,540,618.68 8,634,484.39 44.19% amount is lower than the
known as “Changzhou book balance
Sanjing Oil Co., Ltd.”)
Total 19,540,618.68 8,634,484.39 -- --
Other receivable with bad debt provision withdrawal by age analysis in group:
√ Applicable □ Not applicable
In RMB
Closing balance
Age
Other accounts receivable Bad debt provision Accrual ratio
Subitem of within one year
Within 1 year 8,920,331.57 8,920,331.57
1-2 years 1,284,359.70 64,217.99 5.00%
深圳市深宝实业股份有限公司 2016 年年度报告全文
2-3 years 288,507.53 28,850.75 10.00%
Over 3 years 1,573,159.51 235,973.92 15.00%
3-4 years 748,187.20 112,228.08 0.15%
4-5 years 209,434.84 31,415.22 0.15%
5 years above 615,537.47 92,330.62 0.15%
Total 12,066,358.31 329,042.66 2.73%
Explanations on combination determine:
In combination, withdrawal proportion of bad debt provision based on balance proportion for other account
receivable:
□ Applicable √ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods for other account receivable:
□ Applicable √ Not applicable
(2) Bad debt provision accrual collected or switch back
Bad debt provision accrual was 436,268.15 Yuan; the amount collected or switches back amounting to 0 Yuan
Major bad debt provision collected or switch back:
In RMB
Name Amount Method
(3) Other receivables actually written-off during the reporting period
In RMB
Name Amount
Other major receivables actually written-off:
In RMB
Whether the money
Nature of other Performance write is generated by
Unit name Write off amount Write off reason
receivables off procedure related party
transactions
Other note:
(4) Nature classification for other receivables
In RMB
Item Closing book balance Opening book balance
Margin and deposit 3,683,788.00 3,435,894.26
VAT rebates receivables 454,807.35 27,140.22
Intercourse funds and other 45,046,177.46 44,661,792.18
Total 49,184,772.81 48,124,826.66
(5) Top five units in other account receivable at closing balance
In RMB
Ratio in total other Bad debt provision
Name Amount nature Closing balance Age
account receivable at Closing balance
深圳市深宝实业股份有限公司 2016 年年度报告全文
closing balance
Changzhou Shenbao
Chacang Intercourse funds 19,540,618.68 * 39.73% 8,665,984.39
e-commerce Limited
Shichu Mingmen Intercourse funds 2,048,972.70 Within 1 year 4.17%
Hangzhou Xiaoshan
International Airport Intercourse funds 1,089,486.60 * 2.22% 13,875.00
Co., Ltd.
Hangzhou Railway
Station Customer Intercourse funds 630,000.00 Within 1 year 1.28%
Service Company
Shenzhen
Intercourse funds 317,433.36 1-2 years 0.65% 15,871.67
Investment Co., Ltd.
Total -- 23,626,511.34 -- 48.05% 8,695,731.06
(6) Account receivables related to government subsidies
In RMB
Government assistance Estimated time, amount
Unit name Closing balance Closing age
project name and basis
(7) Other receivable for termination of confirmation due to the transfer of financial assets
(8)The amount of assets and liabilities that are transferred other receivable and continued to be involved
Other note:
10. Inventory
Whether the company need to comply with the disclosure requirements of the real estate industry
No
(1) Types
In RMB
Closing balance Opening balance
Items Falling price Falling price
Book balance Book value Book balance Book value
reserves reserves
Raw materials 65,391,782.65 3,869,665.51 61,522,117.14 58,516,983.93 3,893,177.28 54,623,806.65
Goods in process 28,856,613.35 328,209.99 28,528,403.36 27,601,507.25 81,052.46 27,520,454.79
Finished goods 40,266,937.30 1,774,575.14 38,492,362.16 79,669,708.08 810,517.22 78,859,190.86
Goods in transit 6,509,501.82 6,509,501.82 6,546,946.43 6,546,946.43
Materials
processed on 5,341,566.56 5,290,502.32 51,064.24 5,349,996.81 5,290,502.32 59,494.49
commission
Wrappage 6,497,436.43 649,825.76 5,847,610.67 8,212,480.31 8,212,480.31
Total 152,863,838.11 11,912,778.72 140,951,059.39 185,897,622.81 10,075,249.28 175,822,373.53
深圳市深宝实业股份有限公司 2016 年年度报告全文
Does the Company comply with the disclosure requirement of “Information Disclosure Guidelines of Shenzhen Stock Exchange
No.4 – Listed Companies Engaged in Seed Industry and Planting Business” or not
No
(2) Inventory falling price reserves
In RMB
Current amount increased Current amount decreased
Opening
Type Switch back/ Closing balance
balance Accrual Other Other
Written off
Raw materials 3,893,177.28 152,919.80 176,431.57 3,869,665.51
Goods in process 81,052.46 247,157.53 328,209.99
Finished goods 810,517.22 1,034,625.58 70,567.66 1,774,575.14
Work in
5,290,502.32 5,290,502.32
process-outsourced
Wrappage 649,825.76 649,825.76
Total 10,075,249.28 2,084,528.67 246,999.23 11,912,778.72
(3) Explanation on inventories with capitalization of borrowing costs included at ending balance
(4) Assets unsettled formed by construction contract which has completed at period-end
In RMB
Item Amount
Other note:
11. Divided into assets held for sale
In RMB
Item Ending book value Fair value Estimated disposal cost Estimated disposal time
Other note:
12. Non-current assets due within one year
In RMB
Item Closing balance Opening balance
Other note:
13. Other current assets
In RMB
Item Closing balance Opening balance
VAT input tax ready for deduction 11,299,954.58 2,012,976.56
Total 11,299,954.58 2,012,976.56
深圳市深宝实业股份有限公司 2016 年年度报告全文
Other note
14. Financial assets available for sale
(1) Financial assets available for sale
In RMB
Closing balance Opening balance
Item Depreciation Depreciation Depreciation
Book balance Book balance Book balance
reserves reserves reserves
Instrument equity
17,537,500.00 17,480,000.00 57,500.00 17,537,500.00 17,480,000.00 57,500.00
available for sale:
Measured by cost 17,537,500.00 17,480,000.00 57,500.00 17,537,500.00 17,480,000.00 57,500.00
Total 17,537,500.00 17,480,000.00 57,500.00 17,537,500.00 17,480,000.00 57,500.00
(2) Financial assets available for sale measured by fair value at period-end
In RMB
Instrument equity Instrument debt available
Type Total
available for sale for sale
(3) Financial assets available for sale measured by cost at period-end
In RMB
Book balance Depreciation reserves Ratio of
share-holdi Current
Investee
Opening Current Current Closing Opening Current Current Closing ng in cash
unit
balance increased decreased balance balance increased decreased balance invested dividend
entity
Shenzhen
Sanjiu 2,480,000. 2,480,000. 2,480,000. 2,480,000.
Weitai 0.95%
Capsules 00 00 00
Co., Ltd.
Shenzhen
Tianji
Photoelect
ric 15,000,000 15,000,000 15,000,000 15,000,000
Technolog 3.77%
y .00 .00 .00 .00
Industrial
Co., Ltd.
*1
Beijing
Tiantan
57,500.00 57,500.00
Co., Ltd.
*2
17,537,500 17,537,500 17,480,000 17,480,000
Total --
.00 .00 .00 .00
(4) Change of financial assets depreciation for sale during reporting period
In RMB
Instrument equity Instrument debt
Type Total
available for sale available for sale
Balance of impairment 17,480,000.00 17,480,000.00
深圳市深宝实业股份有限公司 2016 年年度报告全文
accrual at period-begin
Balance of impairment
17,480,000.00 17,480,000.00
accrual at period-end
(5) Fair value of the available-for-sale equity instrument drops significantly or not contemporarily without
depreciation reserves accrued
In RMB
Decline range of
Equity instrume Times continued
fair value Amount accrual Rasons for
nts project Investment cost Ending fair value to declined
compare with the for impairment un-accurla l
available for sale (Monthe)
cost
Other note
15. Held-to-maturity investment
(1) Held-to-maturity investment
In RMB
Ending balance Beginning balance
Item
Provision for Provision for
Book balance Book Value Book balance Book Value
impairment impairment
(2) Important held-to-maturity investment at period-end
In RMB
Bond project Par value Coupon rate Real interest rate Expiry date
(3) Reclassify of held-to-maturity investment in the period
Other note
16. Long-term account receivables
(1) Long-term account receivables
In RMB
Ending balance Beginning balance
Discount rate
Item Bad debt Bad debt interval
Book balance Book Value Book balance Book Value
reserve reserve
深圳市深宝实业股份有限公司 2016 年年度报告全文
(2) Important held-to-maturity investment at period-end
(3) Reclassify of held-to-maturity investment in the period
Other note
17. Long-term equity investment
In RMB
-,+ in the Period
Ending
Other Cash
Investme balance
Opening Additiona comprehe dividend Closing
Investee nt gains Other of
book l Capital nsive or profit Impairme book
unit recognize equity Other impairme
balance investmen reduction income announce nt accrual balance
d under change nt
t adjustmen d to
equity provision
t issued
I. Joint venture
II. Associated enterprise
Shenzhen
Shenbao
(Xinmin) 2,870,000 2,870,000 2,870,000
Foods .00 .00 .00
Co.,
Ltd*1
Changzho
u
Shenbao
Chacang
E-comme
nce Co.,
Ltd *2
Shenzhen
Shenbao
(Liaoyuan
) 57,628.53 57,628.53 57,628.53
Industrial
Co.,
Ltd.*1
Shenzhen
Shenbao
Ma Nan 1,062,646 1,057,570
-5,076.17
Bio-techn .40 .23
ology
Co., Ltd.
Yunnan
Pu'er Tea
Trading 3,701,976 499,151.0 -3,202,82
Center .81 1 5.80
Co.,
Ltd.*3
深圳市深宝实业股份有限公司 2016 年年度报告全文
Shenzhen
Shichumi
ngmen
Restauran 2,270,330 -2,270,33
t .70 0.70
Managem
ent Co.,
Ltd.
Guangzho
u
Shenbao 4,500,000 308,911.4 4,808,911
Mendao .00 0 .40
Tea Co.,
Ltd.
9,962,582 4,500,000 -2,465,64 -3,202,82 8,794,110 2,927,628
Subtotal
.44 .00 6.48 5.80 .16 .53
9,962,582 4,500,000 -2,465,64 -3,202,82 8,794,110 2,927,628
Total
.44 .00 6.48 5.80 .16 .53
Other explanation
*1: these two companies have been established for a long time. At the current stage, their business licenses have
been revoked. Impairment provision is made in full due to absence of settlement.
*2: the long term equity investment in Changzhou Shenbao Tea Storage E-commerce Company is measured at
equity method. Due to that the company recorded serious losses, book balance for this long term equity
investment is treated with nil.
*3: Yunnan Pu’er Tea Trading Center Co., Ltd. was jointly established by Shenzhen Qianhai Agricultural
Products Exchange Co., Ltd., Yunnan Hengfeng Investment Co., Ltd. and Tianxia Pu’er Tea Co., Ltd., the
Company with 40% stock held from January to April, calculated by equity method; holds 55% from May to
December and calculated by cost.
18. Investment real estate
(1) Investment real estate measured at cost
√ Applicable □ Not applicable
In RMB
Item House and building Land use right Construction in process Total
I. Total original book
value
1． Opening balance 19,305,918.88 19,305,918.88
2． Current amount
528,724.63 528,724.63
increased
(1) Purchase 528,724.63 528,724.63
(2) Stock\fixed assets
\Transfer-in from
深圳市深宝实业股份有限公司 2016 年年度报告全文
construction in process
(3) Increased by
combination
3． Current amount
decreased
(1) Disposal
(2) Other transfer-out
4． Closing balance 19,834,643.51 19,834,643.51
II. accumulated
depreciation and
accumulated
amortization
1． Opening balance 496,725.20 496,725.20
2． Current amount
465,052.95 465,052.95
increased
(1) Accrual or
465,052.95 465,052.95
amortization
3． Current amount
decreased
(1) Disposal
(2) Other transfer-out
4． Closing balance 961,778.15 961,778.15
III. impairment provision
1． Opening balance
2． Current amount
increased
(1) Accrual
3． Current amount
decreased
(1) Disposal
(2) Other transfer-out
4． Closing balance
IV. Book value Total
1. Ending book value 18,872,865.36 18,872,865.36
2.Openingbook value 18,809,193.68 18,809,193.68
(2) Investment real estate measured by fair value
□ Applicable √ Not applicable
深圳市深宝实业股份有限公司 2016 年年度报告全文
(3) Certificate of title un-completed
In RMB
Item Book value Reasons
Other note
19. Fixed assets
(1) Fixed assets
In RMB
Machinery Transportation
Item House & buildings Other equipment Total
equipment facilities
I. Total original book
value
1. Opening balance 278,320,081.26 223,496,629.95 7,305,114.52 13,701,871.16 522,823,696.89
2. Current amount
13,226,084.04 11,173,046.11 587,343.03 2,955,008.64 27,941,481.82
increased
(1) Purchase 2,551,745.01 3,367,982.10 112,820.51 1,896,495.87 7,929,043.49
(2) Transfer-in from
construction in 3,174,339.03 7,805,064.01 10,979,403.04
process
(3) Increased by
474,522.52 1,058,512.77 1,533,035.29
combination
Shareholders'
7,500,000.00 7,500,000.00
investment
3. Current amount
35,340,176.38 1,163,949.19 489,603.00 695,435.20 37,689,163.77
decreased
(1) Disposal or scrap 984,953.37 503,843.58 165,524.00 80,537.89 1,734,858.84
Disposal subsidiary
34,355,223.01 34,355,223.01
decrease
Separation of
660,105.61 324,079.00 614,897.31 1,599,081.92
subsidiaries
4. Closing balance 256,205,988.92 233,505,726.87 7,402,854.55 15,961,444.60 513,076,014.94
II. accumulated
depreciation
1. Opening balance 32,098,558.04 119,504,906.16 3,968,400.89 6,186,245.57 161,758,110.66
2. Current amount
8,613,887.71 13,954,931.18 683,701.58 1,834,948.08 25,087,468.55
increased
(1) Accrual 8,613,887.71 13,954,931.18 654,564.37 1,768,403.10 24,991,786.36
Enterprise merger
under the different 29,137.21 66,544.98 95,682.19
control
3. Current amount
11,543,849.93 319,838.92 279,597.85 284,286.98 12,427,573.68
decreased
(1) Disposal or scrap 1,672,963.85 143,326.03 139,913.92 53,639.25 2,009,843.05
Disposal subsidiary 9,870,886.08 9,870,886.08
Separation of
176,512.89 139,683.93 230,647.73 546,844.55
subsidiaries
4. Closing balance 29,168,595.82 133,139,998.42 4,372,504.62 7,736,906.67 174,418,005.53
深圳市深宝实业股份有限公司 2016 年年度报告全文
III. impairment
provision
1. Opening balance 2,647,112.69 2,647,112.69
2. Current amount
1,355,290.18 1,641,838.68 2,997,128.86
increased
(1) Accrual 1,355,290.18 1,641,838.68
3. Current amount
decreased
(1) Disposal or scrap
4. Closing balance 1,355,290.18 4,288,951.37 5,644,241.55
IV. Book value Total
1. Ending book
224,040,264.24 97,718,615.76 3,030,349.93 8,224,537.93 333,013,767.86
value
2.Openingbook
246,221,523.22 101,344,611.10 3,336,713.63 7,515,625.59 358,418,473.54
value
(2) Temporarily idle fixed assets
In RMB
Accumulated Provision for
Item Original book value Book value Note
depreciation impairment
(3) Fixed assets acquired by financing lease
In RMB
Accumulated
Item Original book value Provision for impairment Book value
depreciation
(4) Fixed assets acquired by operating lease
In RMB
Item Ending book value
(5) Certificate of title un-completed
In RMB
Item Book value Reasons
House and building 1,776,848.16 In progress
Other note
1) No fixed assets rent-in from financing
2) the fixed assets invested by shareholder refers to the physical assets 7.5 million Yuan invested by Tianxia Pu’er
Tea Co., Ltd.-the shareholder of Yunnan Tea Trading Center. The property was transfer to Yunnan Tea Trading
Center on 17 August 2016
深圳市深宝实业股份有限公司 2016 年年度报告全文
20. Construction in process
(1) Construction in process
In RMB
Closing balance Opening balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserves reserves
Shenbao Plaza
3,842,333.64 3,842,333.64 3,842,333.64 3,842,333.64
project
Comprehensive
investment
project of tea
6,750,385.61 6,750,385.61
industry chain(the
new factory
project)
Other 957,764.08 903,189.74 54,574.34 943,379.03 903,189.74 40,189.29
Total 4,800,097.72 4,745,523.38 54,574.34 11,536,098.28 4,745,523.38 6,790,574.90
(2) Changes of major construction in process
In RMB
Includin
Proporti g:
Accumul
Other on of amount Interest
ated
Transfer- decrease Closing project of capitaliz Capital
Opening Current
Projects Budget in fixed Progress capitaliz
balance increased
assets d in the balance investme capitaliz ation rate resources
ation of
Period nt in ation of in Period
interest
budget interest
in Period
Integrate
d
investme
nt in Tea
6,750,38 3,907,57 9,774,29 883,663.
chain 100 Other
5.61 4.25 6.81 05
project
(new
plant
project)
Tempora
ry wall
and 3,719,02 3,719,02
100 Other
construct 7.81 7.81
ion road
works
Building 1,205,10 1,205,10
100 Other
of 6.23 6.23
深圳市深宝实业股份有限公司 2016 年年度报告全文
Yunnan
Tea
Trading
Center
6,750,38 8,831,70 10,979,4 4,602,69
Total -- -- --
5.61 8.29 03.04 0.86
(3) The provision for impairment of construction projects
In RMB
Item Provision amount Reason
Other note
21. Engineering materials
In RMB
Item Closing balance Opening balance
Other note:
22. Liquidation of fixed assets
In RMB
Item Closing balance Opening balance
Other note:
23. Productive biological assets
(1) Productive biological assets measured by cost
√ applicable □ not applicable
In RMB
Item Plant Livestock Forestry Fisheries Total
Tea tree
I. Total original book
value
1. Opening balance 436,156.00 436,156.00
2. Current amount
increased
(1) Purchase
(2)self-cultivate
3. Current amount
decreased
(1) Disposal
(2) Other
深圳市深宝实业股份有限公司 2016 年年度报告全文
4. Closing balance 436,156.00 436,156.00
II. accumulated
depreciation
1. Opening balance
2. Current amount
increased
(1) Accrual 9,692.36 9,692.36
3. Current amount
decreased
(1) Disposal
(2) Other
4. Closing balance 9,692.36 9,692.36
III. impairment
provision
1. Opening balance
2. Current amount
increased
(1) Accrual
3. Current amount
decreased
(1) Disposal
(2) Other
4. Closing balance
IV. Book value Total
1. Ending book
426,463.64 426,463.64
value
2.Openingbook
436,156.00 436,156.00
value
(2) Productive biological assets measured by fair value
□ Applicable √ Not applicable
24. Oil and gas assets
□ Applicable √ Not applicable
25. Intangible assets
(1) Intangible assets
In RMB
Item Land using right Patent Un-patent tech Other Total
I. Total original book
深圳市深宝实业股份有限公司 2016 年年度报告全文
value
1. Opening balance 162,844,832.87 43,356,116.81 7,908,874.54 22,871,704.98 236,981,529.20
2. Current amount
9,704,520.00 2,904,702.08 681,774.29 13,290,996.37
increased
Purchase 9,704,520.00 8,405.28 593,374.29 10,306,299.67
(2) internal R&D 2,896,296.80 2,896,296.80
(3) Increased by
combination
Other 88,400.00 88,400.00
3. Current amount
4,900,000.00 4,900,000.00
decreased
(1) Disposal 4,900,000.00 4,900,000.00
4. Closing balance 172,549,352.87 46,260,818.89 3,690,648.83 22,871,704.98 245,372,525.57
II. accumulated
depreciation
1. Opening balance 21,766,135.30 18,057,291.32 1,761,203.51 2,339,528.80 43,924,158.93
2. Current amount
3,439,742.53 2,234,860.37 832,064.92 855,845.24 7,362,513.06
increased
(1) Accrual 3,439,742.53 2,234,860.37 827,644.92 855,845.24 7,358,093.06
Other 4,420.00 4,420.00
3. Current amount
1,592,500.00 1,592,500.00
decreased
(1) Disposal 1,592,500.00 1,592,500.00
4. Closing balance 25,205,877.83 20,292,151.69 1,000,768.43 3,195,374.04 49,694,171.99
III. impairment
provision
1. Opening balance
2. Current amount
increased
(1) Accrual
3. Current amount
decreased
(1) Accrual
4. Closing balance
IV. Book value Total
1. Ending book
147,343,475.04 25,968,667.20 2,689,880.40 19,676,330.94 195,678,353.58
value
2.Openingbook
141,078,697.57 25,298,825.49 5,312,769.19 21,367,078.02 193,057,370.27
value
Ratio of the intangible assets from internal R&D in balance of intangible assets at period-end was 13.27%.
深圳市深宝实业股份有限公司 2016 年年度报告全文
(2) Land use rights without certificate of ownership
In RMB
Reason of not complete the property
Item Book value
certificate
Forest tenure of Shenbao Rock Tea 12,287,092.91 In procedure
Other note:
(1) the intangible assets resulted from internal R&D at period-end takes 1.18% fo the intangible assets in balance.
(2) no intangible assets mortgaged or guarantee at period-end
(3) intangible assets have no evidence of impairment, no impairment provision accrual in the Period
26. Development expense
In RMB
Opening Closing
Item Amount of current increase Amount of current decrease
balance balance
Other note
27. Goodwill
(1) Original book value of goodwill
In RMB
The invested
Opening balance Increase during the year Decreased during the year Closing balance
entity or items
Yunnan Tea
673,940.32 673,940.32
Trading Center
Total 673,940.32 673,940.32
(2) Goodwill depreciation reserves
In RMB
The invested
Opening balance Increase during the year Decreased during the year Closing balance
entity or items
Yunnan Tea
0.00 0.00
Trading Center
Total 0.00 0.00
Explain process of impairment test, indext and determination:
Other note
Hangzhou Ju Fang Yong, a subsidiary of the Company, funded and purchased 15.00% stake of Yunnan Pu’er Tea
Exchange held by Yunnan Heng Feng Xiang Investment Co., Ltd. in May 2016. After the completion of the
purchase, the Company got command of Yunnan Pu’er Tea Exchange. The balance between the combined cost
深圳市深宝实业股份有限公司 2016 年年度报告全文
and the fair value of net assets on the combining date formed goodwill of RMB 673,940.32.
The Company thought that Yunnan Pu’er Tea Exchange has been operating normally and the goodwill had no
indication of impairment at the end of the term, so there was no provision for impairment
28. Long-term deferred expense
In RMB
Item Opening balance Current increased Current amortization Other decreased Closing balance
Decoration charge
11,278,199.11 1,901,916.14 3,746,410.39 2,457,251.97 6,976,452.89
for office rented-in
Affiliated project of
resident area in 1,008,682.43 309,363.21 699,319.22
Jufangyong Wuyuan
Reform of tea park
114,968.82 92,302.17 22,666.65
in Wuyuan
Reform project of
3,082,061.73 595,008.44 1,657,720.96 339,316.11 1,680,033.10
warehouse
Lease of workshop
249,424.40 270,420.00 294,494.40 225,350.00
and office building
Other 260,017.98 3,913,119.40 432,930.03 31,839.62 3,708,367.73
Total 15,993,354.47 6,680,463.98 6,533,221.16 2,828,407.70 13,312,189.59
Other
29. Deferred income tax assets and deferred income tax liability
(1) Deferred income tax assets without offset
In RMB
Closing balance Opening balance
Deductible temporary Deferred income tax Deductible temporary Deferred income tax
Item
differences assets differences assets
Impairment provision for
21,138,673.64 4,973,248.37 18,989,234.01 4,436,279.25
assets
Total 21,138,673.64 4,973,248.37 18,989,234.01 4,436,279.25
(2) Deferred income tax liability without offset
In RMB
Closing balance Opening balance
Taxable temporary Deferred income tax Taxable temporary Deferred income tax
Item
differences liability differences liability
Asset evaluation
increment of enterprise
4,445,245.52 1,111,311.38 4,747,915.76 1,186,978.94
combine under different
control
Change of fair value for
the financial assets 2,169,872.52 542,468.13 1,808,657.11 452,164.28
available for sale
Total 6,615,118.04 1,653,779.51 6,556,572.87 1,639,143.22
(3) Deferred income tax assets and deferred income tax liabilities listed after off-set
In RMB
Item Trade-off between the Ending balance of Trade-off between the Opening balance of
深圳市深宝实业股份有限公司 2016 年年度报告全文
deferred income tax deferred income tax deferred income tax deferred income tax
assets and liabilities assets or liabilities after assets and liabilities at assets or liabilities after
off-set period-begin off-set
Deferred income tax
4,973,248.37 4,436,279.25
assets
Deferred income tax
1,653,779.51 1,639,143.22
liabilities
(4) Details of uncertain deferred income tax assets
In RMB
Item Closing balance Opening balance
Deductible temporary differences 44,636,827.09 65,651,744.63
Losses deductible 62,668,832.81 98,027,808.60
Total 107,305,659.90 163,679,553.23
(5) Deductible losses of un-recognized deferred income tax assets expired on the followed year
In RMB
Year Ending amount Opening amount Note
Other note:
30. Other non-current assets
In RMB
Item Closing balance Opening balance
Land purchase paid in advance 9,381,000.00
total 9,381,000.00
Other explanation:
31. Short-term loans
(1) Short-term loans
In RMB
Type Closing balance Opening balance
Guarantee loan 5,000,000.00
Total 5,000,000.00
Note:
(2) Overdue short-term loans without payment
RMB 0 short-term loans over due without paid at period-end, including follow major amount:
In RMB
Loan unit Closing balance Loan rate Overdue time Overdue interest
Other note:
32. Financial liabilities at fair value through gains and losses
深圳市深宝实业股份有限公司 2016 年年度报告全文
In RMB
Type Closing balance Opening balance
Other note:
33. Derivative financial liabilities
□ Applicable √ Not applicable
34. Notes payable
In RMB
Type Closing balance Opening balance
Notes expired at year-end without paid was 0.00 Yuan.
35. Account payables
(1) Account payables
In RMB
Item Closing balance Opening balance
Within 1 year 11,401,741.46 16,248,897.59
1-2 years 619,763.06 1,493,317.01
2-3 years 81,285.32 291,331.73
Over 3 years 3,679,498.45 6,788,041.25
Total 15,782,288.29 24,821,587.58
2. Major accounts payable with age over 1 year
In RMB
Name Closing balance Reasons of outstanding or carry-over
Supplier 1 518,655.52 Uncertain whether need to be paid
Supplier 2 515,892.30 Uncertain whether need to be paid
Total 1,034,547.82 --
Other note:
36. Account received in advance
(1) Account received in advance
In RMB
Item Closing balance Opening balance
Within 1 year 1,582,442.08 2,904,689.51
1-2 years 20,824.77 34,520.25
2-3 years 1,175.11 39,975.72
Over 3 years 775,382.17 735,406.45
Total 2,379,824.13 3,714,591.93
深圳市深宝实业股份有限公司 2016 年年度报告全文
(2) Important account payable with account age over one year
In RMB
Item Closing balance Reason
(3) Project settled without completed in construction at period-end
In RMB
Item Amount
Other note:
37. Wages payable
(1) Wages payable
In RMB
Item Opening balance Current increased Current decreased Closing balance
I. Short-term
12,110,495.06 76,376,913.69 72,474,106.52 16,013,302.23
compensation
II. After-service
welfare-defined 247,489.26 5,728,501.75 5,709,586.40 266,404.61
contribution plans
Total 12,357,984.32 82,105,415.44 78,183,692.92 16,279,706.84
(2) Short-term compensation
In RMB
Item Opening balance Current increased Current decreased Closing balance
1. Wage, bonus,
10,465,931.38 60,965,383.81 57,504,676.40 13,926,638.79
allowance and subsidy
2. Employees’ welfare 8,169,653.29 8,169,653.29
3. Social insurance
53,781.52 1,880,914.46 1,896,778.02 37,917.96
charges
Including: basic medical
47,450.20 1,608,148.97 1,621,731.55 33,867.62
insurance premium
Industrial injury
insurance 1,655.19 120,313.78 121,221.42 747.55
premiums
Maternity
insurance 4,676.13 152,451.71 153,825.05 3,302.79
premiums
4. Housing public reserve 3,403,995.26 3,403,995.26
5. Trade union fee and
1,590,782.16 1,956,966.87 1,499,003.55 2,048,745.48
education fee
Total 12,110,495.06 76,376,913.69 72,474,106.52 16,013,302.23
(3) Defined contribution plans
In RMB
Item Opening balance Current increased Current decreased Closing balance
1. Basic endowment
239,024.92 5,561,627.97 5,538,012.21 262,640.68
insurance premiums
2. Unemployment
8,464.34 166,873.78 171,574.19 3,763.93
insurance premiums
Total 247,489.26 5,728,501.75 5,709,586.40 266,404.61
Other note:
深圳市深宝实业股份有限公司 2016 年年度报告全文
38. Tax payable
In RMB
Item Closing balance Opening balance
VAT 875,568.98 743,463.75
Enterprise income tax 24,499,708.54 3,631,310.31
Personal income tax 148,805.39 512,502.60
Urban maintenance and construction tax 36,241.36 31,240.56
Business tax 73,967.84
House property tax 549,066.33 212,077.17
Levee charge -3,474.84 51,301.40
Surtax for education expenses 26,677.72 28,755.75
Land value increment tax 15,721,488.76
Use tax of land 125,174.33 166,991.80
Other tax fee 170,365.28 135,273.68
Total 26,345,138.53 21,308,373.62
Other note:
39. Interest payable
In RMB
Item Closing balance Opening balance
Major interest overdue without paid:
In RMB
Loan unit Overdue amount Overdue unit
Other note:
40. Dividend payable
In RMB
Name Closing balance Opening balance
Other 2,909,182.74 2,909,182.74
Total 2,909,182.74 2,909,182.74
Other note, including payable dividend unpaid with over one year, disclosure reasons:
41. Other account payables
(1) Listed by age
In RMB
Item Closing balance Opening balance
Deposit and margin 2,090,774.94 973,437.53
Engineering quality retention money and
17,097.62 2,474,634.27
fund of tail
Intercourse funds and other 38,588,210.38 20,189,534.35
深圳市深宝实业股份有限公司 2016 年年度报告全文
Fund lending 5,423,607.31
Total 46,119,690.25 23,637,606.15
(2) Significant other payable with over one year age
In RMB
Item Closing balance Reasons of un-paid or carry-over
Shenzhen Nongmeidi Investment
5,423,607.31 Fund lending
Management Co., Ltd.
Shenzhen Investment Management
3,510,297.20 Historical payment
Company
Total 8,933,904.51 --
Other note
42. Divided into liability held for sale
In RMB
Item Closing balance Opening balance
Other note:
43. Non-current liabilities due within one year
In RMB
Item Closing balance Opening balance
Other note:
44. Other current liabilities
In RMB
Item Closing balance Opening balance
Change of short-term payable bond:
In RMB
Accrual
Amortizat Current
Bond Bond Issue Opening Current interest Closing
Par value Issue date ion of repaymen
name period amount balance issue by face balance
discount t
value
Other note:
45. Long-term loans
(1) Classification of long-term loans
In RMB
Item Closing balance Opening balance
深圳市深宝实业股份有限公司 2016 年年度报告全文
Note
Other instructions, including interest rates range:
46. Bonds payable
(1)Bonds payable
In RMB
Item Closing balance Opening balance
(2) Changes (excluding other financial instruments of preferred stock and perpetual capital securities
classify to financial liability and
In RMB
(3) Explaination on conversion conditions and time for convertible bond
(4) Other financial instrument classify to financial liability
Other financial instruments of preferred stock and perpetual capial securities issued
Changes of financial instruments of preferred stock and perpetual capial securities issued
In RMB
Issued Opening Increase in the period Decrease in the period Closing
financial
Amount Book value Amount Book value Amount Book value Amount Book value
instrument
Basis of the financial liability classify from other financial instrument
Other note
47. Long-term account payable
(1) Listed by nature
In RMB
Item Closing balance Opening balance
Other note:
48. Long-term employee payable
(1) Long-term employee payable
In RMB
Item Closing balance Opening balance
深圳市深宝实业股份有限公司 2016 年年度报告全文
(2) Changes of defined benefit plans
Present value of the defined benefit plans:
In RMB
Item The Period Last period
Scheme assets:
In RMB
Item The Period Last period
Net liability (assts) of the defined benefit plans
In RMB
Item The Period Last period
Content of defined benefit plans and relevant risks, impact on future cash flow of the Company as well as times and uncertainty:
Major actuarial assumption and sensitivity analysis:
Other explanation:
49. Special payable
In RMB
Increase during the Decreased during the
Item Opening balance Closing balance Causes
year year
Other note:
50. Estimates liabilities
In RMB
Item Ending balance Beginning balance Reason
Other explanation, including important assumptions and estimation for the major accrual liability:
51. Deferred income
In RMB
Increase during the Decreased during the
Item Opening balance Closing balance Causes
year year
Government grants 12,932,278.81 700,000.00 1,296,726.66 12,335,552.15
Total 12,932,278.81 700,000.00 1,296,726.66 12,335,552.15 --
Items involving governance grants:
In RMB
Amount reckoned
Grants increased Assets-related/inc
Liability Opening balance into non-operating Other changes Ending balance
in the Period ome-related
revenue
(1) Subsidy for tea
49,920.00 1,571.48 48,348.52 Assets-related
seeding of New
深圳市深宝实业股份有限公司 2016 年年度报告全文
Tea Garden in
Wangkou
(2) Construction
amount for 50 tons
for clearly 875,000.00 125,000.00 750,000.00 Assets-related
processing for
Mingyou tea
(3)Industrialization
project of instant 2,673,474.29 196,445.88 2,477,028.41 Assets-related
tea power
(4) Special fund
project of strategic
20,123.05 20,123.05 Assets-related
emerging industry
development
(5) Base of further
processing for tea 1,925,000.00 275,000.00 1,650,000.00 Assets-related
and nature plants
(6) Enterprise
technology center
is a municipal
R&D center.
2,599,374.61 204,024.50 2,395,350.11 Assets-related
Subsidies for
industrial
technological
advancement
(7) Subsidies for
key technology
research and 195,746.24 14,245.01 181,501.23 Assets-related
industrialization of
instant tea powder
(8) Subsidy of
Guangdong
–Agricultural 1,120.58 1,120.58 Assets-related
public relation
project
(9) Special funds
for Shenzhen
strategic emerging
industrial
development (deep 4,592,520.04 351,209.03 4,241,311.01 Assets-related
processing of
natural plant
project) (Shen Fa
Gai No. 20131601)
深圳市深宝实业股份有限公司 2016 年年度报告全文
(10) Project
grants for years
for agricultural 700,000.00 129,230.76 570,769.24 Assets-related
disctrict, Xihu
Zone
Total 12,932,278.81 700,000.00 1,295,155.18 1,571.48 12,335,552.15
Other note:
52. Other non-current liabilities
In RMB
Item Closing balance Opening balance
Other note:
53. Share capital
In RMB
Increased (decreased) in this year +,-
Opening Shares Closing
New shares
balance Bonus shares converted from Other Sub-total balance
issued
public reserve
Total shares 301,080,184.00 150,540,092.00 150,540,092.00 451,620,276.00
Other note:
Explaination on changes of shares:
Decreased in the Period, mainly because in October 2016, independent director of the Company purchased 3,600 shares (A-stock) of
the Company. According to relevant regulations on shares held by directors, supervisors and senior executives, the 3,600 shares are
automatically lock-up for trading with 75%, that is 2,700 shares. 54. Other equity instruments
(1) Basic information of the outstanding preferred stock and perpetual capital securities at period-end
(2) Changes of outstanding preferred stock and perpetual capital securities at period-end
In RMB
Outstanding Opening Increase in the period Decrease in the period Closing
financial
Amount Book value Amount Book value Amount Book value Amount Book value
instrument
Changes of other equity instrument, change reasons and relevant accounting treatment basis:
Other note:
55. Capital reserves
In RMB
Item Opening balance Current increased Current decreased Closing balance
Capital premium (Share
517,246,875.36 150,540,092.00 366,706,783.36
capital premium)
Other capital reserve 939,785.23 79.19 474,629.99 465,234.43
深圳市深宝实业股份有限公司 2016 年年度报告全文
Total 518,186,660.59 79.19 151,014,721.99 367,172,017.79
Other instructions, including changes in the current period, reasons for the change:
The resolution of the 4th meeting of the 9th Session of the board of directors of No. Shenbao Dong [2016] 1 on
April 22, 2016, and the capital stock increased by transferring capital reserve was RMB 150,540,092.00.
An increase of RMB 79.19 in the current capital reserve was the gain on sale of odd lots generated at the time
when the capital stock increased by transferring capital reserve; the decrease of RMB 474,629.99 in the current
capital reserve was formed by the stock rights purchased from the minority shareholders of iTealife.
56. Treasury stock
In RMB
Item Beginning balance Increase in the period Decrease in the period Ending balance
Other instructions, including changes in the current period, reasons for the change:
57. Other consolidated income
In RMB
Amount of this period
Less: written in
other
Account comprehensive
Opening Belong to Belong to Closing
Item before income in
balance Less : income parent minority balance
previous period
income tax in and carried tax expense company after shareholders
tax after tax
the year forward to gains
and losses in
current period
Other explanation, including the active part of the hedging gains/losses of cash flow transfer to initial reorganization adjustment for
the arbitraged items:
58. Reasonable reserve
In RMB
Increase during the Decrease during this
Item Opening balance Closing balance
period period
Other instructions, including changes in the current period, reasons for the change:
59. Surplus reserves
In RMB
Item Opening balance Current increased Current decreased Closing balance
Statutory surplus
49,670,863.23 5,065,618.91 54,736,482.14
reserves
Total 49,670,863.23 5,065,618.91 54,736,482.14
Other explanation, including changes and reasons for changes:
Increased in the Period due to the statutoty surplus reserves withdraw by 10% of the net profit of parent company
深圳市深宝实业股份有限公司 2016 年年度报告全文
60. Retained profit
In RMB
Item This period Last period
Retained profit at the end of the previous year
66,684,572.93 102,128,156.68
before adjustment
Total retained profit at the beginning of the
66,684,572.93 102,128,156.68
previous year before adjustment
Add: net profit attributable to shareholder of
96,620,658.92 -35,256,169.10
parent company
Less: Exact Statutory surplus reserves 5,065,618.91 187,414.65
Retained profit at the begin of the year after
158,239,612.94 66,684,572.93
adjustment
Details about adjusting the retained profits at the beginning of the period:
1) The retroactive adjustments to Accounting Standards for Business Enterprises and its relevant new regulations affect the retained
profits at the beginning of the period amounting to 0 Yuan.
2) The changes in accounting policies affect the retained profits at the beginning of the period amounting to 0 Yuan.
3) The major accounting error correction affects the retained profits at the beginning of the period amounting to 0 Yuan
4) Merge scope changes caused by the same control affect the retained profits at the beginning of the period amounting to 0 Yuan.
5) Other adjustments affect the retained profits at the beginning of the period amounting to 0 Yuan
61. Operating income and Operating cost
In RMB
Current Period Last Period
Items
Income Cost Income Cost
Main operating 267,147,438.97 204,145,713.24 335,695,334.26 247,443,735.69
Other operating 6,236,204.02 502,908.17 2,529,178.05
Total 273,383,642.99 204,648,621.41 338,224,512.31 247,443,735.69
62. Tax and surcharges
In RMB
Item Current Period Last Period
City maintenance and construction tax 829,809.31 1,017,694.74
Educational fee and extra 105,527.85 752,875.65
Business tax 202,687.52 2,733,642.61
Land VAT 6,305,817.41
Total 1,138,024.68 10,810,030.41
Other note:
63. Sales expenses
