SEMI-ANNUAL REPORT 2021
深圳中恒华发股份有限公司SHENZHEN ZHONGHEN HUAFA CO., LTD.
SEMI-ANNUAL REPORT 2021
August 2021
SEMI-ANNUAL REPORT 2021
Section I. Important Notice, Contents and InterpretationBoard of Directors, Supervisory Committee, all directors, supervisors and seniorexecutives of Shenzhen Zhongheng HUAFA Co., Ltd. (hereinafter referred to asthe Company) hereby confirm that there are no any fictitious statements,misleading statements, or important omissions carried in this report, and shalltake all responsibilities, individual and/or joint, for the reality, accuracy andcompletion of the whole contents.Li Zhongqiu, Principal of the Company, Yang Bin, person in charger ofaccounting works and Chuai Guoxu, person in charge of accounting organ(accounting principal) hereby confirm that the Financial Report of 2021Semi-Annual Report is authentic, accurate and complete.All directors are attended the Board Meeting for report deliberation.Concerning the forward-looking statements with future planning involved in theReport, they do not constitute a substantial commitment for investors. Majorityinvestors are advised to exercise caution of investment risks.Risks factors are being well-described in the Report, found more in risks factorsand countermeasures disclosed in Prospects for Future Development of theBoard of Directors’ Report.The Company has no plan of cash dividends carried out, bonus issued andcapitalizing of common reserves either.
SEMI-ANNUAL REPORT 2021
Contents
Section I Important Notice, Contents and Interpretation ...... 2
Section II Company Profile and Main Financial Indexes ...... 6
Section III Management Discussion and Analysis ...... 9
Section IV Corporate Governance ...... 17
Section V Enviornmental and Social Responsibility ...... 18
Section VI Important Matters ...... 19
Section VII Changes in shares and particular about shareholders ...... 33
Section VIII Preferred Stock ...... 38
Section IX Corporate Bonds ...... 39
Section X Financial Report ...... 40
SEMI-ANNUAL REPORT 2021
Documents Available for Reference
I. Text of the Annual Report caring signature of the Chairman;II. Financial statement carrying the signatures and seals of the person in charge of the Company, principal of theaccounting works and person in charge of accounting organ;III. All documents of the Company and manuscripts of public notices that disclosed in the China Securities journal,Securities Times and Hong Kong Commercial Daily designated by CSRC in the report period;IV. Article of AssociationV. Other relevant files.
SEMI-ANNUAL REPORT 2021
Interpretation
| Items | Refers to | Contents |
| Company, Shen HUAFA | Refers to | SHENZHEN ZHONGHENG HUAFA CO., LTD. |
| Hengfa Technology | Refers to | Wuhan Hengfa Technology Co., Ltd. |
| HUAFA Property | Refers to | Shenzhen Zhongheng HUAFA Property Co., Ltd |
| HUAFA Lease | Refers to | Shenzhen HUAFA Property Lease Management Co., Ltd |
| Wuhan Zhongheng Group | Refers to | Wuhan Zhongheng New Science & Technology Industrial Group Co., Ltd |
| HK Yutian | Refers to | Hong Kong Yutian International Investment Co., Ltd. |
| Hengsheng Photo-electricity | Refers to | Wuhan Hengsheng Photo-electricity Industry Co., Ltd. |
| Hengsheng Yutian | Refers to | Wuhan Hengsheng Yutian Industrial Co., Ltd. |
| Yutian Henghua | Refers to | Shenzhen Yutian Henghua Co., Ltd. |
| HUAFA Hengtian | Refers to | Shenzhen HUAFA Hengtian Co., Ltd. |
| HUAFA Hengtai | Refers to | Shenzhen HUAFA Hengtai Co., Ltd. |
| Shenzhen Vanke | Refers to | Shenzhen Vanke Real Estate Co., Ltd, now renamed as Shenzhen Vanke Development Co., Ltd. |
| Vanke Guangming | Refers to | Shenzhen Vanke Guangming Real Estate Development Co., Ltd |
| V& T Law Firm | Refers to | Shenzhen V& T Law Firm |
| Zhongheng Semiconductor (former “Huafa Technology ”) | Refers to | Shenzhen Zhongheng Semiconductor Co., Ltd. (former “Zhongheng Huafa Technology Co., Ltd”) |
SEMI-ANNUAL REPORT 2021
Section II. Company Profile and Main Financial Indexes
I. Company profile
| Short form of the stock | Shen HUAFA A, Shen HUAFA B | Stock code | 000020, 200020 |
| Stock exchange for listing | Shenzhen Stock Exchange | ||
| Name of the Company (in Chinese) | 深圳中恒华发股份有限公司 | ||
| Short form of the Company (in Chinese) (if applicable) | 深华发 | ||
| Foreign name of the Company (if applicable) | SHENZHEN ZHONGHENG HUAFA CO., LTD. | ||
| Legal representative | Li Zhongqiu | ||
II. Person/Way to contact
| Secretary of the Board | Rep. of security affairs | |
| Name | Niu Zhuo | |
| Contact add. | 618, 6/F, East Tower, Huafa Building, No.411 Building, Huafa (N) Road, Futian District, Shenzhen | |
| Tel. | 0755-86360201 | |
| Fax. | 0755-86360201 | |
| huafainvestor@126.com.cn |
III. Others
1. Way of contact
Whether registrations address, offices address and codes as well as website and email of the Company changed in reporting period ornot
□ Applicable √ Not applicable
Registrations address, offices address and codes as well as website and email of the Company has no change in reporting period,found more details in Annual Report 2020.
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
SEMI-ANNUAL REPORT 2021
The newspaper appointed for information disclosure, website for semi-annual report publish appointed by CSRC and preparationplace for semi-annual report have no change in reporting period, found more details in Annual Report 2020.VI. Main accounting data and financial indexesWhether it has retroactive adjustment or re-statement on previous accounting data
□ Yes √ No
| Current period | Same period of last year | Changes over last year | |
| Operating income(RMB) | 391,633,808.55 | 300,703,421.38 | 30.24% |
| Net profit attributable to shareholders of the listed company(RMB) | 6,989,362.48 | 3,165,597.55 | 120.79% |
| Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses(RMB) | 7,034,198.78 | 3,167,896.46 | 122.05% |
| Net cash flow arising from operating activities(RMB) | -21,818,369.59 | 21,200,212.24 | -202.92% |
| Basic earnings per share(RMB/Share) | 0.0248 | 0.0112 | 121.43% |
| Diluted earnings per share(RMB/Share) | 0.0248 | 0.0112 | 121.43% |
| Weighted average ROE | 2.07% | 0.96% | 1.11% |
| Current period-end | period-end of last year | Changes over period-end of last year | |
| Total assets(RMB) | 673,347,527.18 | 627,779,621.06 | 7.26% |
| Net assets attributable to shareholder of listed company(RMB) | 343,238,099.77 | 336,248,737.29 | 2.08% |
V. Difference of the accounting data under accounting rules in and out of China
1. Difference of the net profit and net assets disclosed in financial report, under both IAS (InternationalAccounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either IAS (InternationalAccounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
2. Difference of the net profit and net assets disclosed in financial report, under both foreign accountingrules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign accounting rules orChinese GAAP (Generally Accepted Accounting Principles) in the period.
SEMI-ANNUAL REPORT 2021
VI. Items and amounts of extraordinary profit (gains)/loss
√Applicable □ Not applicable
In RMB
| Item | Amount | Note |
| Gain/loss of entrusted investment or assets management | 149,767.58 | |
| Other non-operating income and expenditure except for the aforementioned items | -194,603.88 | |
| Total | -44,836.30 | -- |
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for CompaniesOffering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according tothe lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering TheirSecurities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable √ Not applicable
In reporting period, the Company has no particular about items defined as recurring profit (gain)/loss according to the lists ofextraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities tothe Public --- Extraordinary Profit/loss
SEMI-ANNUAL REPORT 2021
Section III Management Discussion and Analysis
I. Main businesses of the company in the reporting periodAfter years of development, the company has gradually formed two main businesses in industry and propertymanagement. Among them, the industrial business mainly includes injection molding, polylon (light-weightpackaging materials), and complete machine production and sales of liquid crystal display, property managementbusiness is mainly the lease of its own property.In the first half of 2021, the company achieved operating income of 391,633,800 yuan, up 30.24% year onyear; Operating profit was 8,552,400 yuan, up 115.69% year on year; Net profit was 7.023,100 yuan, up 121.86%year on year. In the first half of the year, the operating income of industrial production was 366,572,800 yuan, up
30.37% year on year; the operating profit was 887,700 yuan, up 189.91% year on year; and the net profit was814,400 yuan, up 198.77% year on year. Property leasing business in the first half of the year achieved operatingincome of 250.61 million yuan, 34.01% more than the same period last year, operating profit of 756.35 millionyuan, 52.7% more than the same period last year, net profit of 6.1079 million yuan, 53.06% more than the sameperiod last year.
II. Core competitiveness analysisAll industrial lands of the Company located in Shenzhen were taken into the first batch of plan under 2010Shenzhen urban upgrade planning. In the future, development and operation of self-owned land resources wouldbecome the income source of the Company on a long-term and stable basis.III. Main business analysis
See the “I. Main businesses of the company in the reporting period”
Change of main financial data on a y-o-y basis
In RMB
| Current period | Same period of last year | y-o-y changes (+,-) | Reasons | |
| Operation income | 391,633,808.55 | 300,703,421.38 | 30.24% | Video incomes increased |
| Operation cost | 334,523,805.25 | 263,959,652.63 | 26.73% | |
| Sales expenses | 14,094,617.96 | 9,100,079.39 | 54.88% | After-sales service fee increased |
| Administrative expenses | 22,680,307.24 | 17,082,362.66 | 32.77% | Repair fee increased |
| Financial cost | 5,241,702.86 | 3,484,228.81 | 50.44% | Exchange increased |
SEMI-ANNUAL REPORT 2021
| Income tax expense | 1,584,720.39 | 837,369.58 | 89.25% | Profit growth |
| R&D investment | 3,955,647.50 | 2,423,425.26 | 63.23% | Increase new products in the Period |
| Net cash flow arising from operation activities | -21,818,369.59 | 21,200,212.24 | -202.92% | The inventory increased in the Period due to the epidemic in the first half year of last year |
| Net cash flow arising from investment activities | -2,316,374.60 | -1,338,379.56 | -73.07% | Investment for fixed assets increased |
| Net cash flow arising from financing activities | 23,182,219.89 | -34,838,186.71 | 166.54% | Bank loans increased in the period |
| Net increase of cash and cash equivalent | -1,355,867.36 | -14,832,093.81 | -90.86% | The inventory and account receivable increased |
Major changes on profit composition or profit resources in reporting period
□ Applicable √ Not applicable
No major changes on profit composition or profit resources occurred in reporting periodConstitution of operation income
In RMB
| Current period | Same period of lat year | Increase/decrease y-o-y(+,-) | |||
| Amount | Ratio in operation income | Amount | Ratio in operation income | ||
| Total operation income | 391,633,808.55 | 100% | 300,703,421.38 | 100% | 30.24% |
| According to industries | |||||
| Display | 198,422,034.91 | 50.67% | 163,278,927.45 | 48.63% | 4.21% |
| Plastic injection hardware | 106,953,726.74 | 27.31% | 85,278,752.42 | 28.36% | -3.22% |
| Foam parts | 22,259,297.79 | 5.68% | 19,908,274.02 | 6.62% | -0.94% |
| Property leasing | 25,060,998.64 | 6.40% | 18,701,335.82 | 6.22% | 0.18% |
| Scrap income | 38,492,780.64 | 9.83% | 12,121,666.69 | 4.03% | 5.80% |
| Utilities and others | 444,969.83 | 0.11% | 1,414,464.98 | 0.47% | -0.36% |
| According to products | |||||
| Display | 198,422,034.91 | 50.67% | 163,278,927.45 | 48.63% | 4.21% |
| Plastic injection | 106,953,726.74 | 27.31% | 85,278,752.42 | 28.36% | -3.22% |
SEMI-ANNUAL REPORT 2021
| hardware | |||||
| Foam parts | 22,259,297.79 | 5.68% | 19,908,274.02 | 6.62% | -0.94% |
| Property leasing | 25,060,998.64 | 6.40% | 18,701,335.82 | 6.22% | 0.18% |
| Scrap income | 38,492,780.64 | 9.83% | 12,121,666.69 | 4.03% | 5.80% |
| Utilities and others | 444,969.83 | 0.11% | 1,414,464.98 | 0.47% | -0.36% |
| According to region | |||||
| Hong Kong and Taiwan | 95,569,502.38 | 22.37% | 105,186,479.34 | 34.98% | -12.61% |
| Central China | 203,317,499.60 | 51.92% | 136,683,631.65 | 45.45% | 6.67% |
| East China | 87,594,449.15 | 22.37% | 39,318,383.66 | 13.08% | 9.29% |
| South China | 5,152,357.42 | 1.32% | 19,514,926.73 | 6.49% | -5.17% |
The industries, products, or regions accounting for over 10% of the company’s operating revenue or operating profit
√Applicable □ Not applicable
In RMB
| Operation income | Operation cost | Gross profit ratio | Increase/decrease of operation income y-o-y | Increase/decrease of operation cost y-o-y | Increase/decrease of gross profit ratio y-o-y | |
| According to industries | ||||||
| Display | 198,422,034.91 | 181,998,855.63 | 8.28% | 22.00% | 19.00% | 1.69% |
| Plastic injection hardware | 106,953,726.74 | 96,354,708.77 | 9.91% | 25.00% | 22.00% | 2.25% |
| According to products | ||||||
| Display | 198,422,034.91 | 181,998,855.63 | 8.28% | 22.00% | 19.00% | 1.69% |
| Plastic injection hardware | 106,953,726.74 | 96,354,708.77 | 9.91% | 25.00% | 19.00% | 2.25% |
| According to region | ||||||
| Hong Kong and Taiwan | 95,569,502.38 | 79,562,859.88 | 16.75% | -8.97% | -19.29% | 10.62% |
| Central China | 203,317,499.60 | 190,785,789.29 | 6.16% | 67.15% | 70.48% | -1.84% |
| East China | 87,594,449.15 | 80,998,643.40 | 7.53% | 122.78% | 120.08% | 1.14% |
| South China | 5,152,357.42 | 6,030,530.61 | -17.04% | -72.26% | 195.58% | -106.06% |
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main business based onlatest one year’s scope of period-end
SEMI-ANNUAL REPORT 2021
□ Applicable √ Not applicable
Reasons for y-o-y relevant data with over 30% changes
√Applicable □Not applicable
| Item | 2021-6-30 | 2021-1-1 | Y-o-y changes (+,-) | Causes |
Note receivable
| Note receivable | 491,683.78 | 20,240,464.79 | -98% | Discounting of note receivable increased in the period |
| Receivable financing | 5,774,948.69 | 10,057,385.11 | -43% | Discounting of note receivable increased in the period |
| Other account receivable | 22,540,779.20 | 4,466,949.96 | 405% | Current accounts increased |
Inventory
| Inventory | 129,877,952.00 | 70,166,013.49 | 85% | Inventory has significantly increased from Hengfa |
| Other current assets | 741,380.21 | 4,255,643.19 | -83% | The input tax to be deducted declined |
| Long-term deferred expenses | 623,601.59 | 77,445.31 | 705% | Contract renewal of SAP |
| Short-term loans | 51,089,579.00 | 12,527,808.00 | 308% | Loans of Hengfa increased |
| Contractual liabilities | 765,555.97 | 287,140.66 | 167% | Account received in advance increased |
| Wages payable | 3,886,717.29 | 5,737,366.59 | -32% | Last year’s year-end bonus distributed |
| Interest payable | 179,523.72 | 26,335.66 | 582% | Loans increased |
| Other current liability | 211,799.13 | 18,322,972.81 | -99% | Notes already endorsed and outstanding declined |
Item
| Item | Jan.- Jun. 2021 | Jan.- Jun. 2020 | Y-o-y changes (+,-) | Causes |
| Operation tax and surcharge | 1,428,361.92 | 1,004,056.05 | 42% | Additional tax increased |
Interest income
| Interest income | 189,945.55 | 11,856.69 | 1502% | Loan subsidies |
| Other income | 3,553.35 | 348,540.00 | -99% | Government subsidy |
| Investment income | 149,767.58 | 66,780.40 | 124% | Wealth management income |
| Non-operation revenue | 276,599.04 | 45,200.06 | 512% | Government subsidy |
Non-operation expense
| Non-operation expense | 215,202.92 | 7,302.38 | 2847% | Penalty expenses |
SEMI-ANNUAL REPORT 2021
IV. Analysis of the non-main business
√Applicable □Not applicable
In RMB
| Amount | Ratio in total profit | Description of formation | Whether be sustainable (Y/N) | |
| Investment income | 149,767.58 | 1.74% | Interest settlement | Y |
| Asset impairment | 1,350,000.00 | 15.67% | Inventory reduction provision | N |
| Non-operation revenue | 276,599.04 | 3.21% | Government subsidy | N |
| Non-operation expense | 215,202.92 | 2.50% | Penalty | N |
V. Assets and liability analysis
1. Major changes of assets composition
In RMB
| End of the current period | End of last year | Ratio changes | Notes of major changes | |||
| Amount | Ratio in total assets | Amount | Ratio in total assets | |||
| Monetary fund | 59,612,186.22 | 8.85% | 60,968,053.58 | 9.71% | -0.86% | |
| Account receivable | 135,750,939.59 | 20.16% | 128,063,911.79 | 20.40% | -0.24% | |
| Inventory | 129,877,952.00 | 19.29% | 70,166,013.49 | 11.18% | 8.11% | Inventory from Hengfa increased |
| Investment real estate | 46,360,497.13 | 6.88% | 47,224,662.27 | 7.52% | -0.64% | |
| Fixed assets | 191,477,026.08 | 28.43% | 193,605,444.53 | 30.84% | -2.41% | |
| Construction in process | 740,000.00 | 0.11% | 740,000.00 | 0.12% | -0.01% | |
| Short-term loans | 51,089,579.00 | 7.59% | 12,527,808.00 | 2.00% | 5.59% | Loans increased in the period |
| Contractual liabilities | 765,555.97 | 0.11% | 287,140.66 | 0.05% | 0.06% | |
| Long-term loans | 61,000,000.00 | 9.06% | 61,000,000.00 | 9.72% | -0.66% | |
SEMI-ANNUAL REPORT 2021
2. Major foreign assets
□ Applicable √ Not applicable
3. Assets and liability measured by fair value
□ Applicable √ Not applicable
4. Assets right restriction till end of reporting period
| Monetary fund | 42,990,989.02 | Security deposit |
Fixed assets
| Fixed assets | 12,375,571.51 | Collateral for borrowing |
| Intangible assets | 6,752,967.68 | Collateral for borrowing |
| Disposal of fixed assets | 92,857,471.69 | Court seizure |
Investment real estate
| Investment real estate | 11,503,400.02 | Collateral for borrowing |
| Total | 166,480,399.92 |
VI. Investment analysis
1. Overall situation
□ Applicable √ Not applicable
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
The Company has no securities investment in the Period.
(2) Derivative investment
□ Applicable √ Not applicable
The Company has no derivatives investment in the Period.
SEMI-ANNUAL REPORT 2021
VII. Sales of major assets and equity
1. Sales of major assets
□ Applicable √ Not applicable
The Company had no sales of major assets in the reporting period.
2. Sales of major equity
□ Applicable √ Not applicable
VIII. Analysis of main holding company and stock-jointly companies
√Applicable □ Not applicable
Particular about main subsidiaries and stock-jointly companies net profit over 10%
In RMB
| Company name | Type | Main business | Register capital | Total assets | Net assets | Operating revenue | Operating profit | Net profit |
| Hengfa Technology Company | Subsidiary | R&D, production and sales of the products as well as export business | 181,643,111.00 | 517,551,000.92 | 227,012,996.37 | 366,572,809.91 | 887,707.92 | 813,963.14 |
| HUAFA Property Company | Subsidiary | Leasing and management of own property | 1,000,000.00 | 6,324,584.38 | 421,786.50 | 2,914,794.33 | 1,253,727.86 | 1,043,626.48 |
Particular about subsidiaries obtained or disposed in report period
□Applicable √ Not applicable
Explanation of main holding company and stock-jointly companiesNilIX. Structured vehicle controlled by the Company
□ Applicable √Not applicable
X. Risks and countermeasures
(1) Business analysis
SEMI-ANNUAL REPORT 2021
Wuhan Hengfa Technology, as an important subsidiary of the company, is faced with increasing pressure under theinfluence of intensifying market competition and tight supply of raw and auxiliary materials and other factors, thekey to solve the dilemma is to upgrade technology, enhance the added value of technology, and improveprofitability; In the context of downstream consumer demand upgrading, it improves production efficiency byincreasing the research and development of new products, adjusting and improving the product structure, andimproving the production process; At the same time, it expands upstream supply channels of raw and auxiliarymaterials to avoid material shortage affecting production.
For a certain period of time, property leasing is still another important business for the development of thecompany. Making full use of the self-owned property to provide operation, leasing and service businesses willbring a certain contribution to the company's cash flow. After the gradual implementation of the urban renewalproject, it will bring long-term and stable sources of income for the company.
(2) Business plan
◆Industrial Business UpgradeThe epidemic of COVID-19 is not over yet, and all colleagues in the company continued to work hard to serveexisting customers, vigorously expanded the market, and gained more market share; Meanwhile, the Companywill intensify the development of raw & auxiliary materials suppliers in shortage within the market, try to avoidthe negative impact of upstream material shortage on the Company’s production. On the basis of maintainingcustomers, actively looked for high-quality technology projects in consumer electronics, and gradually realizedindustrial upgrading through technology optimization and management optimization; at the same time, itstrengthened management, improved production efficiency, improved product quality, and made full use of thegeographical advantages of the company to make the business bigger and stronger.
◆Promote the urban renewal projectSpeed up the promotion of renewal unit project of Huafa District, Gongming Street, Guangming New District,Shenzhen and the renewal project renovation progress of Huafa Building, Huaqiang North Street, Futian District,Shenzhen, accelerate the settlement of project procedures, and strive to make stage progress as early as possible.◆Continue to focus on strengthening the company’s internal controlIn 2021, the company will further optimize the corporate governance structure and improve the internal controlsystem and process and strictly implement and improve the executive ability of relevant system in accordancewith the governance requirements of listed companies, the company’s management and relevant departments willexecute the administrative provisions for approval procedures of fund utilizing, management system of relatedtransactions, working system of internal audit, internal reporting system of major information in strict accordancewith the requirements of internal control documents.
SEMI-ANNUAL REPORT 2021
Section IV Corporate GovernanceI. In the report period, the Company held annual general meeting and extraordinaryshareholders’ general meeting
1. Shareholders’ General Meeting in the report period
| Session of meeting | Type | Ratio of investor participation | Date | Date of disclosure | Resolutions |
| Annual General Meeting of 2020 | AGM | 48.98% | 20 May 2021 | 21 May 2021 | Juchao Website(http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000020&stockCode=000020&announcementId=1207845176&announcementTime=2020-05-22) |
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √ Not applicable
II. Changes of directors, supervisors and senior executives
□ Applicable √ Not applicable
Directors, supervisors and senior executives of the Company has no changes during the reporting period, found more in the AnnualReport of 2020.III. Profit distribution plan and capitalizing of common reserves plan for the Period
□ Applicable √ Not applicable
The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve either forthe midterm.
IV. Implementation of the company’s stock incentive plan, employee stock ownership plan orother employee incentives
□ Applicable √ Not applicable
The Company had no stock incentive plan, employee stock ownership plan or other employee incentive in the reporting period.
SEMI-ANNUAL REPORT 2021
Section V. Environmental and Social ResponsibilityI. Important environmental issuesThe listed Company and its subsidiary whether belongs to the key sewage units released from environmental protection department
□ Yes √No
Administrative penalties imposed for environmental issues during the reporting period
| The company or subsidiary | Reasons for penalty | Violations | Penalty results | Impact on the production & operation of listed company | Corrective measures |
| N/A | N/A | N/A | N/A | N/A | N/A |
Other environmental information disclosed with reference to the key emission unitsN/AReasons for not disclosed other environmental informationN/AII. Social responsibilityNot applicable
SEMI-ANNUAL REPORT 2021
Section VI. Important MattersI. Commitments that the actual controller, shareholders, related party, offeror and committed party as theCompany etc. have fulfilled during the reporting period and have not yet fulfilled by the end of reportingperiod
□Applicable √Not applicable
During the reporting period of the company, there are no commitments made by the actual controller, shareholders, related parties,purchasers and the company that have been completed in the reporting period or have not been completed by the end of the reportingperiod.II. Non-operational fund occupation from controlling shareholders and its related party
□ Applicable √ Not applicable
No non-operational fund occupation from controlling shareholders and its related party in period.III. Guarantee outside against the regulation
□Applicable √Not applicable
No guarantee outside against the regulation in Period.IV. Appointment and non-reappointment (dismissal) of CPAWhether the financial report has been audited or not
□Yes √no
The company's semi-annual report has not been audited.V. Explanation from Board of Directors and Supervisory Committee for “Qualified Opinion”that issued by CPA
□ Applicable √Not applicable
VI. Explanation from the Board for “Qualified Opinion” of last year’s
□ Applicable √Not applicable
VII. Bankruptcy reorganization
□ Applicable √Not applicable
No bankruptcy reorganization for the Company in reporting period
SEMI-ANNUAL REPORT 2021
VIII. LawsuitsSignificant lawsuits and arbitration
√Applicable □Not applicable
| The basic situation of litigation (Arbitration) | Amount of money involved (in 10 thousand Yuan) | Predicted liabilities (Y/N) | Advances in litigation (Arbitration) | The results and effects of litigation (Arbitration) | Execution of the litigation (Arbitration) | Disclosure date | Disclosure index |
| In September 2016, Wuhan Zhongheng Group Co., Ltd. and the Company and Shenzhen Vanke were applied for arbitration due to the dispute case of “Contract for the Cooperative Operation of the Old Projects at Huafa Industrial Park, Gongming Street, Guangming New District”. | 46,460 | No | Ruling on 16 August 2017; put forward the application for dismantling by the Company and controlling shareholder, the application was rejected by the court | Found more in announcement of the Company | In September 2018, Shenzhen Vanke applied for compulsory execution. In October 2019, due to the outsider's application of "objection to execution" and "non-enforcement", the execution procedure was terminated. If the outsider's application was rejected by the Shenzhen Intermediate People’s Court, Shenzhen Vanke would have the right to continue to apply for the resumption of compulsory execution. | 2018-02-09 | http://www.cninfo.com.cn/cninfo-new/disclosure/szse_main/bulletin_detail/true/1204406606?announceTime=2018-02-09 ；http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&stockCode=000020&announcementId=1205326846&announcementTime=2018-08-25 |
| In March 2016, the Company and HUAFA Property suit | 947.26 | No | The second trial decides the Company wins the | Execution completed | Execution completed in March 2021 | 2016-09-14 | http://www.cninfo.com.cn/cninfo-new/disclosure/szse_main/bulletin_detail/true/1202702423?announceTime=20 |
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| against Shenzhen Huayongxing Environmental Technology Co., Ltd., and Shenzhen Yidaxin Technology Co., Ltd. for contract violation and refuse to move the site | lawsuit on 15 March 2018, and has applied for enforcement | 16-09-14 07:41 | |||||
| Application for arbitration in case of contract dispute between the V&T (Shenzhen) Law Firm and Shenzhen Zhongheng Huafa Co., Ltd. and Wuhan Zhongheng Group | 1,940.2 | No | Arbitration has been heard for adjudication | A decision was issued and the Company’s motion to dismiss was denied. | Under implementation | 2018-11-14 | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&stockCode=000020&announcementId=1205602053&announcementTime=2018-11-14 |
| Shenzhen Zhongheng Huafa Semiconductor Co., Ltd bring a suit against Shenzhen Zhongheng Huafa Co., | 5,200 | No | The judgment (2020) Yue 03 Min Chu No.17 was issued in May 2021, all claims of Semiconductor Company | Semiconductor Company has filed an appeal | Trial in progress | 2021-06-03 | http://www.cninfo.com.cn/new/disclosure/detail?stockCode=000020&announcementId=1210151395&orgId=gssz0000020&announcementTime=2021-06-03 |
SEMI-ANNUAL REPORT 2021
| Ltd for the ownership transfer, performance of asset replacement contract and compensation | were rejected |
Other lawsuits
□Applicable √ Not applicable
IX. Penalty and rectification
□Applicable √ Not applicable
The Company has no penalty and rectification in the periodX. Integrity of the company and its controlling shareholders and actual controllers
□ Applicable √Not applicable
XI. Major related transaction
1. Related transaction with routine operation concerned
√Applicable □ Not applicable
| Related party | Relationship | Type of related transaction | Content of related transaction | Pricing principle | Related transaction price | Related transaction amount (in 10 thousand Yuan) | Proportion in similar transactions | Trading limit approved (in 10 thousand Yuan) | Whether over the approved limited or not (Y/N) | Clearing form for related transaction | Available similar market price | Date of disclosure | Index of disclosure |
| HK | Unde | Purchas | Purcha | Synchroniz | 3,77 | 3,775 | 15,69 | N | Tele | The average |
SEMI-ANNUAL REPORT 2021
| Yutian | r the same control | e of raw materials from related parties | sing LCD monitors | ed with the market | 5.18 | .18 | 7.92 | graphic transfer | market price refers to the price of same specifications which is searched from through the world famous professional market survey company website http://www.witsview.com recognized authority in the industry and LCD professional market survey company website http://www.witsview.com | ||||
| Hengsheng Photo-electricity | Under the same control | Purchase of raw materials from related parties | Purchasing LCD monitors | In principle, the transaction price of purchased raw materials is determined at approximately 1% lower than the prevailing average market price, with reference to the respective bargaining power of both parties. | 5,066.05 | 5,066.05 | 13,081.6 | N | Telegraphic transfer | Ditto |
SEMI-ANNUAL REPORT 2021
| Hengsheng Photo-electricity | Under the same control | Purchase of finished goods from related parties | Purchase of LCD display | Base on the customer purchase order price and reduce 1 yuan per unit as operation fee | 984.89 | 984.89 | 6,540.8 | N | Telegraphic transfer | Ditto | |||
| HK Yutian | Under the same control | Sales of products to related parties | Sales of LCD display | Determined on the basis of the customer’s sales order price | 6,210.03 | 6,210.03 | 19,622.4 | N | Telegraphic transfer | Ditto | |||
| Hengsheng Photo-electricity | Under the same control | Sales of products to related parties | Sales of LCD display | Determined on the basis of the customer’s sales order price | 1,561.22 | 1,561.22 | 6,540.8 | N | Telegraphic transfer | Ditto | |||
| Hengsheng Photo-electricity | Under the same control | Sales of products to related parties | Relevant products of LCD display, plastic injection hardware | Determined on the basis of the customer’s sales order price | 126.07 | 126.07 | 654.08 | N | Telegraphic transfer | Ditto | |||
| Hengsheng Photo-electricity | Under the same control | Sales of products to related parties | LCD glass | Determined on the basis of the customer’s sales order price | 44.69 | 44.69 | 457.86 | N | Telegraphic transfer | Ditto | |||
| Total | -- | -- | 17,76 | -- | 62,59 | -- | -- | -- | -- | -- | |||
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| 8.13 | 5.46 | ||||
| Detail of sales return with major amount involved | N/A | ||||
| Report the actual implementation of the daily related transactions which were projected about their total amount by types during the reporting period(if applicable) | In the reporting, Hengfa Technology purchased LCD monitors from HK Yutian with US $ 5.6445 million approximately, 23.52% of the annual amount predicted at the beginning of the year; purchased LCD monitor from Hengsheng Photo-electricity with US $ 6.9138 million approximately, 34.57% of the annual amount predicted at the beginning of the year; purchasing LCD Display from Hengsheng Photo-electricity with about US$ 1.339 million, 13.39% of the annual amount predicted at the beginning of the year; sold LCD Display whole machine to HK Yutian with US$ 9.5462 million approximately, 31.82% of the annual amount predicted at the beginning of the year; sold LCD display to Hengsheng Photo-electricity with about US$ 1.4541 million, 14.54% of the annual amount predicted at the beginning of the year; and sold LCD glass to Hengsheng Photo-electricity with about US$ 68100, 9.73% of the annual amount predicted at the beginning of the year | ||||
| Reasons for major differences between trading price and market reference price | N/A | ||||
2. Related transactions by assets acquisition and sold
□Applicable √Not applicable
No above mentioned transactions occurred
3. Main related transactions of mutual investment outside
□ Applicable √ Not applicable
No main related transactions of mutual investment outside for the Company in reporting period.
4. Contact of related credit and debt
□ Applicable √ Not applicable
No contact of related credit and debt during the reporting period.
5. Contact with the related finance companies and finance companies that controlled by the Company
□ Applicable √ Not applicable
There are no deposits, loans, credits or other financial business between the Company and the finance companies with relatedrelationships or between the finance companies controlled by the Company and related parties
6. Other significant related transactions
□ Applicable √ Not applicable
The company had no other significant related transactions in reporting period.
SEMI-ANNUAL REPORT 2021
XII. Significant contract and implementations
1. Trusteeship, contract and leasing
(1) Trusteeship
□ Applicable √ Not applicable
No trusteeship for the Company in reporting period.
(2) Contract
□ Applicable √ Not applicable
No contract for the Company in reporting period.
(3) Leasing
□ Applicable √ Not applicable
No leasing for the Company in reporting period.
2. Major guarantees
√Applicable □ Not applicable
In 10 thousand Yuan
| Particulars about the external guarantee of the Company (Barring the guarantee for subsidiaries) | ||||||||||
| Name of the Company guaranteed | Related Announcement disclosure date | Guarantee limit | Actual date of happening | Actual guarantee limit | Guarantee type | Collateral (if any) | Counter guarantee(if any) | Guarantee term | Implemented (Y/N) | Guarantee for related party (Y/N) |
| Guarantee of the Company and the subsidiaries | ||||||||||
| Name of the Company guaranteed | Related Announcement disclosure date | Guarantee limit | Actual date of happening | Actual guarantee limit | Guarantee type | Collateral (if any) | Counter guarantee(if any) | Guarantee term | Implemented (Y/N) | Guarantee for related party (Y/N) |
| Wuhan Hengfa Technology Co., Ltd. | 2021-04-27 | 30,000 | Joint and several liability guarantee | 1 year | N | Y | ||||
| Total amount of approving guarantee | 30,000 | Total amount of actual occurred guarantee for | 3,480.09 | |||||||
SEMI-ANNUAL REPORT 2021
| for subsidiaries in report period (B1) | subsidiaries in report period (B2) | ||||||||||
| Total amount of approved guarantee for subsidiaries at the end of reporting period (B3) | 30,000 | Total balance of actual guarantee for subsidiaries at the end of reporting period (B4) | 2,788.96 | ||||||||
| Guarantee of the subsidiaries for the subsidiaries | |||||||||||
| Name of the Company guaranteed | Related Announcement disclosure date | Guarantee limit | Actual date of happening | Actual guarantee limit | Guarantee type | Collateral (if any) | Counter guarantee(if any) | Guarantee term | Complete implementation or not | Guarantee for related party | |
| Total amount of guarantee of the Company (total of three above mentioned guarantee) | |||||||||||
| Total amount of approving guarantee in report period (A1+B1+C1) | 30,000 | Total amount of actual occurred guarantee in report period (A2+B2+C3) | 3,480.09 | ||||||||
| Total amount of approved guarantee at the end of report period (A3+B3+C2) | 30,000 | Total balance of actual guarantee at the end of report period (A4+B4+C4) | 2,788.96 | ||||||||
| The proportion of the total amount of actually guarantee in the net assets of the Company (that is A4+ B4+C4) | 8.12% | ||||||||||
| Including: | |||||||||||
Explanation on compound guarantee
3.Trust financing
□Applicable √Not applicable
No trust financing occurred in the reporting period
4.Material contracts for daily operations
□ Applicable √ Not applicable
5. Other material contracts
□ Applicable √ Not applicable
No other material contracts for the Company in reporting period.
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XIII. Explanation on other significant events
√ Applicable □ Not applicable
(i) The Company signed Asset Exchange Contract with Wuhan Zhongheng New Science & Technology IndustrialGroup Co., Ltd (hereinafter referred to as Wuhan Zhongheng Group) on 29 April 2009 (details were referred to inthe announcement dated 30 April 2009), and pursuant to the contract, since part of the assets of the Company(namely two parcel of industrial lands located at Huafa road, Gongming town, Guangming new district, Shenzhen(the property certificate No. were SFDZ No.7226760 and SFDZ No.7226763, No. of parcels were A627-005andA627-007, and the aggregate area was 48,200 sq.m) were the lands listed in the first batch of plan for 2010Shenzhen urbanization unit planning preparation plan. For promotion of such urbanization project and jointcooperation, the Company has not completed the transfer procedures in respect of the aforesaid land.
The Company convoked the first extraordinary meeting of the Board in 2015 on February 16, 2015 and the firstextraordinary general meeting of the Board in 2015 on March 4, 2015, which considered and approved the“Motion on promoting and implementing the urban renewal project for the renewal units of Huafa area atGongming street, Guangming new district, Shenzhen”, specified that the Company and Wuhan Zhongheng Groupshall obtain the corresponding compensatory consideration for removal from the respectively owned project plotsand the respectively contributed and constructed above-ground buildings before the land development, it isestimated that the compensatory consideration obtained by the Company accounts for 50.5% of the totalconsideration and Wuhan Zhongheng Group accounts for 49.5% by calculation.
The sixth extraordinary meeting of the board of directors in 2015 and the third extraordinary general meeting of2015 have considered and adopted the “Proposal on the project promotion and implementation of urban renewaland the progress of related transactions of ‘the updated units at Huafa Area, Gong Ming Street, Guangming NewDistrict, Shenzhen’”, the company has signed the “Agreement on the cooperation of urban renewal project of theupdated units at Huafa Area, Gong Ming Street, Guangming New District, Shenzhen”, “Contract for thecooperative venture of reconstruction project for Huafa Industrial Park, Gong Ming Street, Guangming NewDistrict” on 26 August 2015, and “Agreement on housing acquisition and removal compensation and resettlement”with Wuhan Wuhan Zhongheng Group, Shenzhen Vanke Real Estate Co., Ltd. (hereinafter referred to as“Shenzhen Vanke”), and Shenzhen Vanke Guangming Real Estate Development Co., Ltd. (hereinafter referred toas “Vanke Guangming”).
On 12 September 2016, Shenzhen Vanke applied for arbitration in respect of “Agreement on the cooperation ofurban renewal project of the updated units at Huafa Area, Gong Ming Street, Guangming New District, Shenzhen”against the Company and Wuhan Zhongheng Group. Shenzhen Court of International Arbitration (SCIA) hasgiven a ruling in August 2017. On August 29, 2018, the court accepted the compulsory execution application ofShenzhen Vanke. In October 2019, as a number of outsiders filed an “execution objection” and applied for “noexecution” to Shenzhen Intermediate People’s Court, the Shenzhen Intermediate People’s Court ruled to terminatethe enforcement procedure on March 20, 2020. If the “execution objection” and “no execution” proposed by
SEMI-ANNUAL REPORT 2021
outsiders are rejected according to law, Shenzhen Vanke may continue to apply to the Shenzhen IntermediatePeople’s Court to resume execution. In April 2020, Zhongheng Semiconductor sued the company to ShenzhenIntermediate People’s Court, and requested the company to transfer the above mentioned two pieces of lands andcompensate the economic loss of 52 million yuan, the company received the first trial verdict in the case in May2021. and the company appealed to the supreme people’s court against the judgment, which has not yet enteredinto force. Progress of the case found more in the Notices released on Juchao website dated 14 Sept. 2016, 1 Nov.2016, 16 Nov. 2016, on 18 Feb. 2017, 24 March 2017, 25 April 2017, 1 July 2017, 18 August 2017, 9 Feb. 2018,25 Aug. 2018, 7 Sept. 2018, 21 Apr. 2020, 3 Jun, 2021 and 22 Jul. 2021 respectively.
(ii) On 31 December 2015, the 88,750,047 shares held by Wuhan Zhongheng Group, are pledge to ChinaMerchants Securities Assets Co., Ltd. with due date of 31 December 2016. On 1 Feb. 2016, Wuhan ZhonghengGroup pledge the 27,349,953 shares held to China Merchants Securities Assets Co., Ltd. with due date of 31December 2016. The above-mentioned pledged shares are deferred by Wuhan Zhongheng Group; pledge expiredon 31 December 2017. The trading day for repurchase put off to the date when pledge actually removed. Till endof this period released, controlling shareholder still not removed the pledge and the Company has apply by letter,relevant Notice of Presentment on Stock Pledge from Controlling Shareholder was released. Found more in noticereleased on Juchao website date 2 Feb. 2018.
(iii) The controlling shareholder Wuhan Zhongheng Group holds 119,289,894 shares of the Company’ stock,accounting for 42.13% of the total share capital of the Company, of which 116,489,894 shares were judicially frozenby Shenzhen Intermediate People's Court (hereinafter referred to as "Shenzhen Intermediate Court") on September27, 2016, which were frozen again by the Shenzhen Intermediate People's Court on December 14, 2018, with afrozen period of 36 months; the remaining 2,800,000 shares were frozen by the Shenzhen Intermediate People'sCourt on May 29, 2019, and were frozen again by the Higher People’s Court of Guangdong Province on July 5,2019. For details, please refer to the company’s announcements published on Juchao Website dated October 27,2016, January 11, 2019, May 31, 2019 and August 7, 2019.
(iv)Wuhan Zhongheng Group received the first-instance judgment of Guangdong Higher People’s Court to the“pledged securities repurchase dispute” case sued by China Merchants Securities Asset Management Co., Ltd. inMarch 2021. Wuhan Zhongheng Group refused to accept the judgment and has appealed to the Supreme People'sCourt, the judgment of first instance has not yet taken effect. For details, please refer to the companyannouncement (“progress of the major litigation and arbitration cases of the controlling shareholder”)issued by thecompany on www.cninfo.com.cn on March 19, 2021.
(v) On September 29, 2016, the company and its controlling shareholder, Wuhan Zhongheng Group, signed the“Agency Contract” with V&T Law Firm. On October 8, 2016, the three parties also signed the “SupplementalAgreement for Agency Contract”, it was agreed that V&T acted as an agent for the company and WuhanZhongheng Group to deal with the arbitration case with Shenzhen Vanke. After losing the lawsuit, due to
SEMI-ANNUAL REPORT 2021
differences in the payment of attorney fees, V&T sued our company and Wuhan Zhongheng Group to theShenzhen Court of International Arbitration, and applied to the court to seize a bank account under our company’sname and part of our company dormitories, please refer to “Other Announcements on the Progress InvolvingLitigation and Arbitration” (Announcement Numbers: 2018-43, 2019-02) released on Juchao Website datedNovember 14, 2018 and March 6, 2019. The Shenzhen Court of International Arbitration ruled that the companyand Wuhan Zhongheng Group paid the corresponding fees. The loss of the arbitrament in this case was borne byWuhan Zhongheng Group in whole, and found more on “Other Announcements on the Progress InvolvingLitigation and Arbitration” (Announcement No.: 2019-34) released on Juchao Website dated November 25, 2019.
XIV. Significant event of subsidiary of the Company
□ Applicable √Not applicable
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Section VII. Changes in Shares and Particulars about ShareholdersI. Changes in Share Capital
1. Changes in Share Capital
In Share
| Before the Change | Increase/Decrease in the Change (+, -) | After the Change | |||||||
| Amount | Proportion | New shares issued | Bonus shares | Public reserve transfer into share capital | Others | Subtotal | Amount | Proportion | |
| I. Restricted shares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 1. State-owned shares | |||||||||
| 2. State-owned legal person’s shares | |||||||||
| 3. Other domestic shares | |||||||||
| Including: Domestic legal person’s shares | |||||||||
| Domestic natural person’s shares | |||||||||
| 4. Foreign shares | |||||||||
| Including: Foreign legal person’s shares | |||||||||
| Foreign natural person’s shares | |||||||||
| II. Unrestricted shares | 283,161,227 | 100.00% | 0 | 0 | 0 | 0 | 0 | 283,161,227 | 100.00% |
| 1. RMB ordinary shares | 181,165,391 | 63.98% | 0 | 0 | 0 | 0 | 0 | 181,165,391 | 63.98% |
| 2. Domestically listed foreign shares | 101,995,836 | 36.02% | 0 | 0 | 0 | 0 | 0 | 101,995,836 | 36.02% |
| 3. Overseas listed foreign shares | |||||||||
| 4. Others | |||||||||
| III. Total shares | 283,161,227 | 100.00% | 0 | 0 | 0 | 0 | 0 | 283,161,227 | 100.00% |
Reasons for share changed
□ Applicable √ Not applicable
SEMI-ANNUAL REPORT 2021
Approval of share changed
□ Applicable √ Not applicable
Ownership transfer of share changed
□ Applicable √ Not applicable
Progress of shares buy-back
□ Applicable √ Not applicable
Implementation progress of reducing holdings of shares buy-back by centralized bidding
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to commonshareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose or need to disclosed under requirement from security regulators
□ Applicable √ Not applicable
2. Changes of lock-up stocks
□ Applicable √ Not applicable
II. Securities issuance and listing
□ Applicable √ Not applicable
III. Amount of shareholders of the Company and particulars about shares holding
In Share
| Total common stock shareholders in reporting period-end | 20,986 | Total preference shareholders with voting rights recovered at end of reporting period (if applicable) (see note 8) | 0 | |||||
| Particulars about common shares held above 5% by shareholders or top ten common shareholders | ||||||||
| Full name of Shareholders | Nature of shareholder | Proportion of shares held | Amount of common shares held at the end of reporting period | Changes in report period | Amount of restricted common shares held | Amount of common shares held without restriction | Information of shares pledged, tagged or frozen | |
| State of share | Amount | |||||||
| Wuhan Zhongheng Group | Domestic non-state-owned legal person | 42.13% | 119,289,894 | 0 | 0 | 119,289,894 | Pledged | 116,100,000 |
| Frozen | 119,289,894 | |||||||
SEMI-ANNUAL REPORT 2021
| SEG (HONG KONG) CO., LTD. | Overseas legal person | 5.85% | 16,569,560 | 0 | 0 | 16,569,560 | Pledged | 0 |
| Frozen | 0 | |||||||
| GOOD HOPE CORNER INVESTMENTS LTD. | Overseas legal person | 2.50% | 7,072,000 | 0 | 0 | 7,072,000 | Pledged | 0 |
| Frozen | 0 | |||||||
| Changjiang Securities Brokerage (Hong Kong) Co., Ltd. | Overseas legal person | 1.89% | 5,355,249 | 0 | 0 | 5,355,249 | Pledged | 0 |
| Frozen | 0 | |||||||
| Guoyuan Securities Brokerage (Hong Kong) Limited | Overseas legal person | 1.37% | 3,870,117 | 0 | 0 | 3,870,117 | Pledged | 0 |
| Frozen | 0 | |||||||
| Li Zhongqiu | Overseas nature person | 1.00% | 2,830,000 | 0 | 0 | 2,830,000 | Pledged | 0 |
| Frozen | 0 | |||||||
| China Merchants Securities Hong Kong Co., Ltd. | State-owned legal person | 0.85% | 2,394,018 | 0 | 0 | 2,394,018 | Pledged | 0 |
| Frozen | 0 | |||||||
| Li Wei | Domestic nature person | 0.58% | 1,638,100 | 0 | 0 | 1,638,100 | Pledged | 0 |
| Frozen | 0 | |||||||
| Xu Xinfen | Domestic nature person | 0.56% | 1,585,300 | 0 | 0 | 1,585,300 | Pledged | 0 |
| Frozen | 0 | |||||||
| LI SHERYN ZHAN MING | Domestic nature person | 0.51% | 1,446,100 | 0 | 0 | 1,446,100 | Pledged | 0 |
| Frozen | 0 | |||||||
| Strategy investor or general legal person becoming the top 10 common shareholders by placing new shares (if applicable) (see note 3) | N/A | |||||||
| Explanation on associated relationship among the aforesaid shareholders | Among the top ten shareholders, Li Zhongqiu is the actual controller of Wuhan Zhongheng New Technology Industry Group Co., LTD., and belongs to a man of concerted action. It is not known whether other shareholders of the company are related to each other, or whether they belong to | |||||||
SEMI-ANNUAL REPORT 2021
| the concerted action stipulated in the "Management Measures for Disclosure of Information about Changes in Shareholders' Shareholding of Listed Companies". | |||
| Description of the above shareholders in relation to delegate/entrusted voting rights and abstention from voting rights. | N/A | ||
| Special note on the repurchase account among the top 10 shareholders (if applicable) (see note 11) | N/A | ||
| Particular about top ten shareholders with un-lock up common stocks held | |||
| Shareholders’ name | Amount of common shares held without restriction at Period-end | Type of shares | |
| Type | Amount | ||
| Wuhan Zhongheng Group | 119,289,894 | RMB common share | 119,289,894 |
| SEG (HONG KONG) CO., LTD. | 16,569,560 | Domestically listed foreign shares | 16,569,560 |
| GOOD HOPE CORNER INVESTMENTS LTD. | 7,072,000 | Domestically listed foreign shares | 7,072,000 |
| Changjiang Securities Brokerage (Hong Kong) Co., Ltd. | 5,355,249 | Domestically listed foreign shares | 5,355,249 |
| Guoyuan Securities Brokerage (Hong Kong) Limited | 3,870,117 | Domestically listed foreign shares | 3,870,117 |
| Li Zhongqiu | 2,830,000 | Domestically listed foreign shares | 2,830,000 |
| China Merchants Securities Hong Kong Co., Ltd. | 2,394,018 | Domestically listed foreign shares | 2,394,018 |
| Li Wei | 1,638,100 | Domestically listed foreign shares | 1,638,100 |
| Xu Xinfen | 1,585,300 | RMB common share | 1,585,300 |
| LI SHERYN ZHAN MING | 1,446,100 | Domestically | 1,446,100 |
SEMI-ANNUAL REPORT 2021
| listed foreign shares | |||
| Expiation on associated relationship or consistent actors within the top 10 un-lock up common shareholders and between top 10 un-lock up common shareholders and top 10 common shareholders | Among the top ten shareholders, Li Zhongqiu is the actual controller of Wuhan Zhongheng New Technology Industry Group Co., LTD., and belongs to a man of concerted action. It is not known whether other shareholders of the company are related to each other, or whether they belong to the concerted action stipulated in the "Management Measures for Disclosure of Information about Changes in Shareholders' Shareholding of Listed Companies". | ||
| Explanation on top 10 common shareholders involving margin business (if applicable) (see note 4) | Among the top ten shareholders, Xu Xin Fen holds 400,400 shares through the general account and 1184,900 shares through the credit securities account, for a total of 1585,300 shares. | ||
Whether top ten common stock shareholders or top ten common stock shareholders with un-lock up shares held have a buy-backagreement dealing in reporting period
□ Yes √ No
The top ten common stock shareholders or top ten common stock shareholders with un-lock up shares held of the Company have nobuy-back agreement dealing in reporting period.IV. Changes of shares held by directors, supervisors and senior executives
□ Applicable √ Not applicable
Shares held by directors, supervisors and senior executives have no changes in reporting period, found more details in Annual Report2020.V. Changes in controlling shareholders or actual controllersChange of controlling shareholder during the reporting period
□ Applicable √ Not applicable
The Company had no change of controlling shareholder during the reporting periodChange of actual controller during the reporting period
□ Applicable √ Not applicable
The Company had no change of actual controller during the reporting period
SEMI-ANNUAL REPORT 2021
Section VIII. Preferred Stock
□ Applicable √ Not applicable
The Company had no preferred stock in the Period.
SEMI-ANNUAL REPORT 2021
Section IX. Corporate Bonds
□ Applicable √ Not applicable
SEMI-ANNUAL REPORT 2021
Section X. Financial ReportI. Audit reportWhether the semi annual report is audited
□ Yes √ No
The company's semi annual financial report has not been audited
II. Financial Statement
Statement in Financial Notes are carried in RMB/CNY
1. Consolidated Balance Sheet
Prepared by SHENZHEN ZHONGHENG HUAFA CO., LTD.
In RMB
| Item | June 30, 2021 | December 31, 2020 |
| Current assets: | ||
| Monetary funds | 59,612,186.22 | 60,968,053.58 |
| Settlement provisions | ||
| Capital lent | ||
| Trading financial assets | ||
| Derivative financial assets | ||
| Note receivable | 491,683.78 | 20,240,464.79 |
| Account receivable | 135,750,939.59 | 128,063,911.79 |
| Receivable financing | 5,774,948.69 | 10,057,385.11 |
| Accounts paid in advance | 31,961,398.64 | 39,643,255.11 |
| Insurance receivable | ||
| Reinsurance receivables | ||
| Contract reserve of reinsurance receivable | ||
| Other account receivable | 22,540,779.20 | 4,466,949.96 |
| Including: Interest receivable | ||
| Dividend receivable | ||
| Buying back the sale of financial assets | ||
| Inventories | 129,877,952.00 | 70,166,013.49 |
| Contractual assets |
SEMI-ANNUAL REPORT 2021
| Assets held for sale | ||
| Non-current asset due within one year | ||
| Other current assets | 741,380.21 | 4,255,643.19 |
| Total current assets | 386,751,268.33 | 337,861,677.02 |
| Non-current assets: | ||
| Loans and payments on behalf | ||
| Debt investment | ||
| Other debt investment | ||
| Long-term account receivable | ||
| Long-term equity investment | ||
| Investment in other equity instrument | ||
| Other non-current financial assets | ||
| Investment real estate | 46,360,497.13 | 47,224,662.27 |
| Fixed assets | 191,477,026.08 | 193,605,444.53 |
| Construction in progress | 740,000.00 | 740,000.00 |
| Productive biological asset | ||
| Oil and gas asset | ||
| Right-of-use assets | ||
| Intangible assets | 39,945,399.92 | 40,820,657.80 |
| Expense on Research and Development | ||
| Goodwill | ||
| Long-term expenses to be apportioned | 623,601.59 | 77,445.31 |
| Deferred income tax asset | 7,383,734.13 | 7,383,734.13 |
| Other non-current asset | 66,000.00 | 66,000.00 |
| Total non-current asset | 286,596,258.85 | 289,917,944.04 |
| Total assets | 673,347,527.18 | 627,779,621.06 |
| Current liabilities: | ||
| Short-term loans | 51,089,579.00 | 12,527,808.00 |
| Loan from central bank | ||
| Capital borrowed | ||
| Trading financial liability | ||
| Derivative financial liability | ||
| Note payable | 42,983,519.37 | 37,416,381.20 |
| Account payable | 116,056,638.57 | 98,318,239.88 |
SEMI-ANNUAL REPORT 2021
| Accounts received in advance | ||
| Contractual liability | 765,555.97 | 287,140.66 |
| Selling financial asset of repurchase | ||
| Absorbing deposit and interbank deposit | ||
| Security trading of agency | ||
| Security sales of agency | ||
| Wage payable | 3,886,717.29 | 5,737,366.59 |
| Taxes payable | 12,933,110.63 | 14,204,642.62 |
| Other account payable | 37,074,456.45 | 27,608,281.01 |
| Including: Interest payable | 179,523.72 | 26,335.66 |
| Dividend payable | ||
| Commission charge and commission payable | ||
| Reinsurance payable | ||
| Liability held for sale | ||
| Non-current liabilities due within one year | 12,000,000.00 | |
| Other current liabilities | 211,799.13 | 18,322,972.81 |
| Total current liabilities | 265,001,376.41 | 226,422,832.77 |
| Non-current liabilities: | ||
| Insurance contract reserve | ||
| Long-term loans | 61,000,000.00 | 61,000,000.00 |
| Bonds payable | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Lease liability | ||
| Long-term account payable | ||
| Long-term wages payable | ||
| Accrual liability | 64,411.00 | 64,411.00 |
| Deferred income | 4,043,640.00 | 4,043,640.00 |
| Deferred income tax liabilities | ||
| Other non-current liabilities | ||
| Total non-current liabilities | 65,108,051.00 | 65,108,051.00 |
| Total liabilities | 330,109,427.41 | 291,530,883.77 |
| Owner’s equity: | ||
| Share capital | 283,161,227.00 | 283,161,227.00 |
SEMI-ANNUAL REPORT 2021
| Other equity instrument | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Capital public reserve | 146,577,771.50 | 146,577,771.50 |
| Less: Inventory shares | ||
| Other comprehensive income | ||
| Reasonable reserve | ||
| Surplus public reserve | 77,391,593.25 | 77,391,593.25 |
| Provision of general risk | ||
| Retained profit | -163,892,491.98 | -170,881,854.46 |
| Total owner’ s equity attributable to parent company | 343,238,099.77 | 336,248,737.29 |
| Minority interests | ||
| Total owner’ s equity | 343,238,099.77 | 336,248,737.29 |
| Total liabilities and owner’ s equity | 673,347,527.18 | 627,779,621.06 |
Legal Representative: Li ZhongqiuPerson in charge of accounting works: Yang BinPerson in charge of accounting institute: Chuai Guoxu
2. Balance Sheet of Parent Company
In RMB
| Item | June 30, 2021 | December 31, 2020 |
| Current assets: | ||
| Monetary funds | 1,331,648.92 | 966,379.17 |
| Trading financial assets | ||
| Derivative financial assets | ||
| Note receivable | ||
| Account receivable | ||
| Receivable financing | ||
| Accounts paid in advance | 2,199,741.25 | 73,685.03 |
| Other account receivable | 87,948,585.04 | 93,922,057.92 |
| Including: Interest receivable | ||
| Dividend receivable |
SEMI-ANNUAL REPORT 2021
| Inventories | 14,806.50 | 14,806.50 |
| Contractual assets | ||
| Assets held for sale | ||
| Non-current assets maturing within one year | ||
| Other current assets | ||
| Total current assets | 91,494,781.71 | 94,976,928.62 |
| Non-current assets: | ||
| Debt investment | ||
| Other debt investment | ||
| Long-term receivables | ||
| Long-term equity investments | 186,618,400.00 | 186,618,400.00 |
| Investment in other equity instrument | ||
| Other non-current financial assets | ||
| Investment real estate | 23,353,697.10 | 23,957,898.42 |
| Fixed assets | 96,806,187.37 | 96,674,476.52 |
| Construction in progress | 740,000.00 | 740,000.00 |
| Productive biological assets | ||
| Oil and natural gas assets | ||
| Right-of-use assets | ||
| Intangible assets | 4,336,290.66 | 4,408,763.52 |
| Research and development costs | ||
| Goodwill | ||
| Long-term deferred expenses | ||
| Deferred income tax assets | 7,443,826.11 | 7,443,826.11 |
| Other non-current assets | ||
| Total non-current assets | 319,298,401.24 | 319,843,364.57 |
| Total assets | 410,793,182.95 | 414,820,293.19 |
| Current liabilities: | ||
| Short-term borrowings | 6,000,000.00 | |
| Trading financial liability | ||
| Derivative financial liability | ||
| Notes payable | ||
| Account payable | 9,740,367.33 | 10,745,840.16 |
| Accounts received in advance | 46,958.09 | 83,155.09 |
SEMI-ANNUAL REPORT 2021
| Contractual liability | ||
| Wage payable | 819,533.72 | 1,476,601.12 |
| Taxes payable | 7,316,798.88 | 7,892,878.33 |
| Other accounts payable | 20,487,078.43 | 21,304,919.43 |
| Including: Interest payable | ||
| Dividend payable | ||
| Liability held for sale | ||
| Non-current liabilities due within one year | 12,000,000.00 | |
| Other current liabilities | ||
| Total current liabilities | 44,410,736.45 | 53,503,394.13 |
| Non-current liabilities: | ||
| Long-term loans | 61,000,000.00 | 61,000,000.00 |
| Bonds payable | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Lease liability | ||
| Long-term account payable | ||
| Long term employee compensation payable | ||
| Accrued liabilities | 64,411.00 | 64,411.00 |
| Deferred income | ||
| Deferred income tax liabilities | ||
| Other non-current liabilities | ||
| Total non-current liabilities | 61,064,411.00 | 61,064,411.00 |
| Total liabilities | 105,475,147.45 | 114,567,805.13 |
| Owners’ equity: | ||
| Share capital | 283,161,227.00 | 283,161,227.00 |
| Other equity instrument | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Capital public reserve | 146,587,271.50 | 146,587,271.50 |
| Less: Inventory shares | ||
| Other comprehensive income | ||
| Special reserve | ||
| Surplus reserve | 77,391,593.25 | 77,391,593.25 |
SEMI-ANNUAL REPORT 2021
| Retained profit | -201,822,056.25 | -206,887,603.69 |
| Total owner’s equity | 305,318,035.50 | 300,252,488.06 |
| Total liabilities and owner’s equity | 410,793,182.95 | 414,820,293.19 |
3. Consolidated Profit Statement
In RMB
| Item | 2021 semi-annual | 2020 semi-annual |
| I. Total operating income | 391,633,808.55 | 300,703,421.38 |
| Including: Operating income | 391,633,808.55 | 300,703,421.38 |
| Interest income | ||
| Insurance gained | ||
| Commission charge and commission income | ||
| II. Total operating cost | 381,924,442.73 | 297,053,804.80 |
| Including: Operating cost | 334,523,805.25 | 263,959,652.63 |
| Interest expense | ||
| Commission charge and commission expense | ||
| Cash surrender value | ||
| Net amount of expense of compensation | ||
| Net amount of withdrawal of insurance contract reserve | ||
| Bonus expense of guarantee slip | ||
| Reinsurance expense | ||
| Tax and extras | 1,428,361.92 | 1,004,056.05 |
| Sales expense | 14,094,617.96 | 9,100,079.39 |
| Administrative expense | 22,680,307.24 | 17,082,362.66 |
| R&D expense | 3,955,647.50 | 2,423,425.26 |
| Financial expense | 5,241,702.86 | 3,484,228.81 |
| Including: Interest expenses | 3,774,381.48 | 4,018,202.27 |
| Interest income | 189,945.55 | 11,856.69 |
| Add: Other income | 3,553.35 | 348,540.00 |
| Investment income (Loss is listed with “-”) | 149,767.58 | 66,780.40 |
| Including: Investment income on affiliated company and joint venture | ||
| The termination of income recognition for financial assets measured by amortized cost |
SEMI-ANNUAL REPORT 2021
| Exchange income (Loss is listed with “-”) | ||
| Net exposure hedging income (Loss is listed with “-”) | ||
| Income from change of fair value (Loss is listed with “-”) | ||
| Loss of credit impairment (Loss is listed with “-”) | ||
| Losses of devaluation of asset (Loss is listed with “-”) | -1,350,000.00 | |
| Income from assets disposal (Loss is listed with “-”) | -99,867.53 | |
| III. Operating profit (Loss is listed with “-”) | 8,512,686.75 | 3,965,069.45 |
| Add: Non-operating income | 276,599.04 | 45,200.06 |
| Less: Non-operating expense | 215,202.92 | 7,302.38 |
| IV. Total profit (Loss is listed with “-”) | 8,574,082.87 | 4,002,967.13 |
| Less: Income tax expense | 1,584,720.39 | 837,369.58 |
| V. Net profit (Net loss is listed with “-”) | 6,989,362.48 | 3,165,597.55 |
| (i) Classify by business continuity | ||
| 1.continuous operating net profit (net loss listed with ‘-”) | 6,989,362.48 | 3,165,597.55 |
| 2.termination of net profit (net loss listed with ‘-”) | ||
| (ii) Classify by ownership | ||
| 1.Net profit attributable to owner’s of parent company | 6,989,362.48 | 3,165,597.55 |
| 2.Minority shareholders’ gains and 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 of the defined benefit plans that re-measured | ||
| 2.Other comprehensive income under equity method that cannot be transfer to gain/loss | ||
| 3.Change of fair value of investment in other equity instrument | ||
| 4.Fair value change of enterprise's credit risk | ||
| 5. Other | ||
| (ii) Other comprehensive income items which will be reclassified subsequently to profit or loss | ||
| 1.Other comprehensive income under equity method that can transfer to gain/loss | ||
| 2.Change of fair value of other debt investment |
SEMI-ANNUAL REPORT 2021
| 3.Amount of financial assets re-classify to other comprehensive income | ||
| 4.Credit impairment provision for other debt investment | ||
| 5.Cash flow hedging reserve | ||
| 6.Translation differences arising on translation of foreign currency financial statements | ||
| 7.Other | ||
| Net after-tax of other comprehensive income attributable to minority shareholders | ||
| VII. Total comprehensive income | 6,989,362.48 | 3,165,597.55 |
| Total comprehensive income attributable to owners of parent Company | 6,989,362.48 | 3,165,597.55 |
| Total comprehensive income attributable to minority shareholders | ||
| VIII. Earnings per share: | ||
| (i) Basic earnings per share | 0.0248 | 0.0112 |
| (ii) Diluted earnings per share | 0.0248 | 0.0112 |
As for the enterprise combined under the same control, net profit of 780,210.91Yuan achieved by the merged party beforecombination while -824,054.38 Yuan achieved last period.Legal Representative: Li ZhongqiuPerson in charge of accounting works: Yang BinPerson in charge of accounting institute: Chuai Guoxu
4. Profit Statement of Parent Company
In RMB
| Item | Semi-annual of 2021 | Semi-annual of 2020 |
| I. Operating income | 22,146,204.31 | 16,720,522.47 |
| Less: Operating cost | 4,439,887.16 | 2,040,226.11 |
| Taxes and surcharge | 572,280.19 | 542,709.33 |
| Sales expenses | ||
| Administration expenses | 7,444,373.84 | 6,208,200.98 |
| R&D expenses | ||
| Financial expenses | 3,381,988.26 | 4,015,977.09 |
SEMI-ANNUAL REPORT 2021
| Including: Interest expenses | 3,385,557.02 | 4,018,202.27 |
| Interest income | 6,881.46 | |
| Add: Other income | 3,306.96 | |
| Investment income (Loss is listed with “-”) | ||
| Including: Investment income on affiliated Company and joint venture | ||
| The termination of income recognition for financial assets measured by amortized cost (Loss is listed with “-”) | ||
| Net exposure hedging income (Loss is listed with “-”) | ||
| Changing income of fair value (Loss is listed with “-”) | ||
| Loss of credit impairment (Loss is listed with “-”) | ||
| Losses of devaluation of asset (Loss is listed with “-”) | ||
| Income on disposal of assets (Loss is listed with “-”) | ||
| II. Operating profit (Loss is listed with “-”) | 6,310,981.82 | 3,913,408.96 |
| Add: Non-operating income | 0.35 | 17,754.80 |
| Less: Non-operating expense | 8,500.00 | |
| III. Total Profit (Loss is listed with “-”) | 6,302,482.17 | 3,931,163.76 |
| Less: Income tax | 1,236,934.73 | 982,790.94 |
| IV. Net profit (Net loss is listed with “-”) | 5,065,547.44 | 2,948,372.82 |
| (i) continuous operating net profit (net loss listed with ‘-”) | ||
| (ii) termination of net profit (net loss listed with ‘-”) | ||
| V. Net after-tax of other comprehensive income | ||
| (i) Other comprehensive income items which will not be reclassified subsequently to profit of loss | ||
| 1.Changes of the defined benefit plans that re-measured | ||
| 2.Other comprehensive income under equity method that cannot be transfer to gain/loss | ||
| 3.Change of fair value of investment in other equity instrument | ||
| 4.Fair value change of enterprise's credit risk | ||
| 5. Other | ||
| (ii) Other comprehensive income items which will be reclassified subsequently to profit or loss | ||
| 1.Other comprehensive income under equity method that can transfer to gain/loss |
SEMI-ANNUAL REPORT 2021
| 2.Change of fair value of other debt investment | ||
| 3.Amount of financial assets re-classify to other comprehensive income | ||
| 4.Credit impairment provision for other debt investment | ||
| 5.Cash flow hedging reserve | ||
| 6.Translation differences arising on translation of foreign currency financial statements | ||
| 7.Other | ||
| VI. Total comprehensive income | 5,065,547.44 | 2,948,372.82 |
| VII. Earnings per share: | ||
| (i) Basic earnings per share | ||
| (ii) Diluted earnings per share |
5. Consolidated Cash Flow Statement
In RMB
| Item | Semi-annual of 2021 | Semi-annual of 2020 |
| I. Cash flows arising from operating activities: | ||
| Cash received from selling commodities and providing labor services | 244,756,106.28 | 251,602,049.92 |
| Net increase of customer deposit and interbank deposit | ||
| Net increase of loan from central bank | ||
| Net increase of capital borrowed from other financial institution | ||
| Cash received from original insurance contract fee | ||
| Net cash received from reinsurance business | ||
| Net increase of insured savings and investment | ||
| Cash received from interest, commission charge and commission | ||
| Net increase of capital borrowed | ||
| Net increase of returned business capital | ||
| Net cash received by agents in sale and purchase of securities | ||
| Write-back of tax received | 2,152,394.35 | |
| Other cash received concerning operating activities | 16,266,093.74 | 3,743,255.21 |
| Subtotal of cash inflow arising from operating activities | 263,174,594.37 | 255,345,305.13 |
SEMI-ANNUAL REPORT 2021
| Cash paid for purchasing commodities and receiving labor service | 180,586,052.16 | 179,132,887.12 |
| Net increase of customer loans and advances | ||
| Net increase of deposits in central bank and interbank | ||
| Cash paid for original insurance contract compensation | ||
| Net increase of capital lent | ||
| Cash paid for interest, commission charge and commission | ||
| Cash paid for bonus of guarantee slip | ||
| Cash paid to/for staff and workers | 38,342,263.84 | 24,991,943.90 |
| Taxes paid | 13,863,743.82 | 3,743,185.15 |
| Other cash paid concerning operating activities | 52,200,904.14 | 26,277,076.72 |
| Subtotal of cash outflow arising from operating activities | 284,992,963.96 | 234,145,092.89 |
| Net cash flows arising from operating activities | -21,818,369.59 | 21,200,212.24 |
| II. Cash flows arising from investing activities: | ||
| Cash received from recovering investment | ||
| Cash received from investment income | 186,685.90 | 66,780.40 |
| Net cash received from disposal of fixed, intangible and other long-term assets | 21,750.00 | 411,000.00 |
| Net cash received from disposal of subsidiaries and other units | ||
| Other cash received concerning investing activities | 35,000,000.00 | |
| Subtotal of cash inflow from investing activities | 208,435.90 | 35,477,780.40 |
| Cash paid for purchasing fixed, intangible and other long-term assets | 2,524,810.50 | 1,816,159.96 |
| Cash paid for investment | ||
| Net increase of mortgaged loans | ||
| Net cash received from subsidiaries and other units obtained | ||
| Other cash paid concerning investing activities | 35,000,000.00 | |
| Subtotal of cash outflow from investing activities | 2,524,810.50 | 36,816,159.96 |
| Net cash flows arising from investing activities | -2,316,374.60 | -1,338,379.56 |
| III. Cash flows arising from financing activities: | ||
| Cash received from absorbing investment | ||
| Including: Cash received from absorbing minority shareholders’ investment by subsidiaries | ||
| Cash received from loans | 57,190,879.00 | 6,725,056.80 |
| Other cash received concerning financing activities |
SEMI-ANNUAL REPORT 2021
| Subtotal of cash inflow from financing activities | 57,190,879.00 | 6,725,056.80 |
| Cash paid for settling debts | 30,430,404.00 | 37,370,812.20 |
| Cash paid for dividend and profit distributing or interest paying | 3,578,255.11 | 4,192,431.31 |
| Including: Dividend and profit of minority shareholder paid by subsidiaries | ||
| Other cash paid concerning financing activities | ||
| Subtotal of cash outflow from financing activities | 34,008,659.11 | 41,563,243.51 |
| Net cash flows arising from financing activities | 23,182,219.89 | -34,838,186.71 |
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | -403,343.06 | 144,260.22 |
| V. Net increase of cash and cash equivalents | -1,355,867.36 | -14,832,093.81 |
| Add: Balance of cash and cash equivalents at the period -begin | 60,968,053.58 | 36,645,061.61 |
| VI. Balance of cash and cash equivalents at the period -end | 59,612,186.22 | 21,812,967.80 |
6. Cash Flow Statement of Parent Company
In RMB
| Item | Semi-annual of 2021 | Semi-annual of 2020 |
| I. Cash flows arising from operating activities: | ||
| Cash received from selling commodities and providing labor services | 2,336,572.26 | 17,825,898.30 |
| Write-back of tax received | ||
| Other cash received concerning operating activities | 12,794,492.62 | 7,210,631.17 |
| Subtotal of cash inflow arising from operating activities | 15,131,064.88 | 25,036,529.47 |
| Cash paid for purchasing commodities and receiving labor service | ||
| Cash paid to/for staff and workers | 548,093.93 | 2,100,854.64 |
| Taxes paid | 3,454,113.92 | 1,790,646.36 |
| Other cash paid concerning operating activities | 1,380,064.32 | 11,480,046.39 |
| Subtotal of cash outflow arising from operating activities | 5,382,272.17 | 15,371,547.39 |
| Net cash flows arising from operating activities | 9,748,792.71 | 9,664,982.08 |
| II. Cash flows arising from investing activities: | ||
| Cash received from recovering investment | ||
| Cash received from investment income | ||
| Net cash received from disposal of fixed, intangible and other |
SEMI-ANNUAL REPORT 2021
| long-term assets | ||
| Net cash received from disposal of subsidiaries and other units | ||
| Other cash received concerning investing activities | ||
| Subtotal of cash inflow from investing activities | ||
| Cash paid for purchasing fixed, intangible and other long-term assets | ||
| Cash paid for investment | ||
| Net cash received from subsidiaries and other units obtained | ||
| Other cash paid concerning investing activities | ||
| Subtotal of cash outflow from investing activities | ||
| Net cash flows arising from investing activities | ||
| III. Cash flows arising from financing activities: | ||
| Cash received from absorbing investment | ||
| Cash received from loans | ||
| Other cash received concerning financing activities | ||
| Subtotal of cash inflow from financing activities | ||
| Cash paid for settling debts | 6,000,000.00 | 6,000,000.00 |
| Cash paid for dividend and profit distributing or interest paying | 3,383,290.96 | 3,366,124.47 |
| Other cash paid concerning financing activities | ||
| Subtotal of cash outflow from financing activities | 9,383,290.96 | 9,366,124.47 |
| Net cash flows arising from financing activities | -9,383,290.96 | -9,366,124.47 |
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | 2,210.11 | |
| V. Net increase of cash and cash equivalents | 365,501.75 | 301,067.72 |
| Add: Balance of cash and cash equivalents at the period -begin | 966,379.17 | 2,046,143.44 |
| VI. Balance of cash and cash equivalents at the period -end | 1,331,880.92 | 2,347,211.16 |
7. Statement of Changes in Owners’ Equity (Consolidated)
Current Amount
In RMB
| Item | Semi-annual of 2021 | ||||||||||||
| Owners’ equity attributable to the parent Company | Minority interests | Total owners’ | |||||||||||
| Share | Other equity instrument | Capital | Less: | Other | Reasonab | Surplus | Provision | Retained | Other | Subtotal | |||
SEMI-ANNUAL REPORT 2021
| capital | Preferred stock | Perpetual capital securities | Other | reserve | Inventory shares | comprehensive income | le reserve | reserve | of general risk | profit | equity | ||||
| I. The ending balance of the previous year | 283,161,227.00 | 146,577,771.50 | 77,391,593.25 | -170,881,854.46 | 336,248,737.29 | 336,248,737.29 | |||||||||
| Add: Changes of accounting policy | |||||||||||||||
| Error correction of the last period | |||||||||||||||
| Enterprise combine under the same control | |||||||||||||||
| Other | |||||||||||||||
| II. The beginning balance of the current year | 283,161,227.00 | 146,577,771.50 | 77,391,593.25 | -170,881,854.46 | 336,248,737.29 | 336,248,737.29 | |||||||||
| III. Increase/ Decrease in the period (Decrease is listed with “-”) | 6,989,362.48 | 6,989,362.48 | 6,989,362.48 | ||||||||||||
| (i) Total comprehensive income | 6,989,362.48 | 6,989,362.48 | 6,989,362.48 | ||||||||||||
| (ii) Owners’ devoted and decreased |
SEMI-ANNUAL REPORT 2021
| capital | |||||||||||||||
| 1.Common shares invested by shareholders | |||||||||||||||
| 2. Capital invested by holders of other equity instruments | |||||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | |||||||||||||||
| 4. Other | |||||||||||||||
| (iii) Profit distribution | |||||||||||||||
| 1. Withdrawal of surplus reserves | |||||||||||||||
| 2. Withdrawal of general risk provisions | |||||||||||||||
| 3. Distribution for owners (or shareholders) | |||||||||||||||
| 4. Other | |||||||||||||||
| (iv) Carrying forward internal owners’ equity | |||||||||||||||
| 1. Capital reserves conversed to capital (share capital) |
SEMI-ANNUAL REPORT 2021
| 2. Surplus reserves conversed to capital (share capital) | |||||||||||||||
| 3. Remedying loss with surplus reserve | |||||||||||||||
| 4. Carry-over retained earnings from the defined benefit plans | |||||||||||||||
| 5. Carry-over retained earnings from other comprehensive income | |||||||||||||||
| 6. Other | |||||||||||||||
| (v) Reasonable reserve | |||||||||||||||
| 1. Withdrawal in the report period | |||||||||||||||
| 2. Usage in the report period | |||||||||||||||
| (vi) Others | |||||||||||||||
| IV. Balance at the end of the period | 283,161,227.00 | 146,577,771.50 | 77,391,593.25 | -163,892,491.98 | 343,238,099.77 | 343,238,099.77 |
Amount of the previous period
In RMB
| Item | Semi-annual of 2020 | ||
| Owners’ equity attributable to the parent Company | Mino | Total | |
SEMI-ANNUAL REPORT 2021
| Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Provision of general risk | Retained profit | Other | Subtotal | rity interests | owners’ equity | |||
| Preferred stock | Perpetual capital securities | Other | |||||||||||||
| I. The ending balance of the previous year | 283,161,227.00 | 146,587,271.50 | 77,391,593.25 | -177,712,041.86 | 329,428,049.89 | 329,428,049.89 | |||||||||
| Add: Changes of accounting policy | |||||||||||||||
| Error correction of the last period | |||||||||||||||
| Enterprise combine under the same control | |||||||||||||||
| Other | |||||||||||||||
| II. The beginning balance of the current year | 283,161,227.00 | 146,587,271.50 | 77,391,593.25 | -177,712,041.86 | 329,428,049.89 | 329,428,049.89 | |||||||||
| III. Increase/ Decrease in the period (Decrease is listed with | 3,165,597.55 | 3,165,597.55 | 3,165,597.55 | ||||||||||||
SEMI-ANNUAL REPORT 2021
| “-”) | |||||||||||||||
| (i) Total comprehensive income | 3,165,597.55 | 3,165,597.55 | 3,165,597.55 | ||||||||||||
| (ii) Owners’ devoted and decreased capital | |||||||||||||||
| 1.Common shares invested by shareholders | |||||||||||||||
| 2. Capital invested by holders of other equity instruments | |||||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | |||||||||||||||
| 4. Other | |||||||||||||||
| (iii) Profit distribution | |||||||||||||||
| 1. Withdrawal of surplus reserves | |||||||||||||||
| 2. Withdrawal of general risk provisions | |||||||||||||||
| 3. Distribution for owners (or shareholders) | |||||||||||||||
| 4. Other |
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| (iv) Carrying forward internal owners’ equity | |||||||||||||||
| 1. Capital reserves conversed to capital (share capital) | |||||||||||||||
| 2. Surplus reserves conversed to capital (share capital) | |||||||||||||||
| 3. Remedying loss with surplus reserve | |||||||||||||||
| 4. Carry-over retained earnings from the defined benefit plans | |||||||||||||||
| 5. Carry-over retained earnings from other comprehensive income | |||||||||||||||
| 6. Other | |||||||||||||||
| (v) Reasonable reserve | |||||||||||||||
| 1. Withdrawal in the report period | |||||||||||||||
| 2. Usage in |
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| the report period | |||||||||||||||
| (vi) Others | |||||||||||||||
| IV. Balance at the end of the period | 283,161,227.00 | 146,587,271.50 | 77,391,593.25 | -174,546,444.31 | 332,593,647.44 | 332,593,647.44 |
8. Statement of Changes in Owners’ Equity (Parent Company)
Current Amount
In RMB
| Item | Semi-annual of 2021 | |||||||||||
| Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Retained profit | Other | Total owners’ equity | |||
| Preferred stock | Perpetual capital securities | Other | ||||||||||
| I. The ending balance of the previous year | 283,161,227.00 | 146,587,271.50 | 77,391,593.25 | -206,887,603.69 | 300,252,488.06 | |||||||
| Add: Changes of accounting policy | ||||||||||||
| Error correction of the last period | ||||||||||||
| Other | ||||||||||||
| II. The beginning balance of the current year | 283,161,227.00 | 146,587,271.50 | 77,391,593.25 | -206,887,603.69 | 300,252,488.06 | |||||||
| III. Increase/ Decrease in the period | 5,065,547.44 | 5,065,547.44 | ||||||||||
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| (Decrease is listed with “-”) | ||||||||||||
| (i) Total comprehensive income | 5,065,547.44 | 5,065,547.44 | ||||||||||
| (ii) Owners’ devoted and decreased capital | ||||||||||||
| 1.Common shares invested by shareholders | ||||||||||||
| 2. Capital invested by holders of other equity instruments | ||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | ||||||||||||
| 4. Other | ||||||||||||
| (iii) Profit distribution | ||||||||||||
| 1. Withdrawal of surplus reserves | ||||||||||||
| 2. Distribution for owners (or shareholders) | ||||||||||||
| 3. Other | ||||||||||||
| (iv) Carrying forward internal owners’ equity | ||||||||||||
| 1. Capital reserves conversed to |
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| capital (share capital) | ||||||||||||
| 2. Surplus reserves conversed to capital (share capital) | ||||||||||||
| 3. Remedying loss with surplus reserve | ||||||||||||
| 4. Carry-over retained earnings from the defined benefit plans | ||||||||||||
| 5. Carry-over retained earnings from other comprehensive income | ||||||||||||
| 6. Other | ||||||||||||
| (v) Reasonable reserve | ||||||||||||
| 1. Withdrawal in the report period | ||||||||||||
| 2. Usage in the report period | ||||||||||||
| (vi) Others | ||||||||||||
| IV. Balance at the end of the period | 283,161,227.00 | 146,587,271.50 | 77,391,593.25 | -201,822,056.25 | 305,318,035.50 |
Amount of the previous period
In RMB
| Item | Semi-annual of 2020 | |||||||||||
| Share capit | Other equity instrument | Capital reserv | Less: Inventory | Other comprehensive | Reasonable reserve | Surplus reserve | Retained profit | Other | Total owners’ equity | |||
| Preferre | Perpetual | Other | ||||||||||
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| al | d stock | capital securities | e | shares | income | |||||||
| I. The ending balance of the previous year | 283,161,227.00 | 146,587,271.50 | 77,391,593.25 | -208,863,486.54 | 298,276,605.21 | |||||||
| Add: Changes of accounting policy | ||||||||||||
| Error correction of the last period | ||||||||||||
| Other | ||||||||||||
| II. The beginning balance of the current year | 283,161,227.00 | 146,587,271.50 | 77,391,593.25 | -208,863,486.54 | 298,276,605.21 | |||||||
| III. Increase/ Decrease in the period (Decrease is listed with “-”) | 2,948,372.82 | 2,948,372.82 | ||||||||||
| (i) Total comprehensive income | 2,948,372.82 | 2,948,372.82 | ||||||||||
| (ii) Owners’ devoted and decreased capital | ||||||||||||
| 1.Common shares invested by shareholders | ||||||||||||
| 2. Capital invested by holders of |
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| other equity instruments | ||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | ||||||||||||
| 4. Other | ||||||||||||
| (iii) Profit distribution | ||||||||||||
| 1. Withdrawal of surplus reserves | ||||||||||||
| 2. Distribution for owners (or shareholders) | ||||||||||||
| 3. Other | ||||||||||||
| (iv) Carrying forward internal owners’ equity | ||||||||||||
| 1. Capital reserves conversed to capital (share capital) | ||||||||||||
| 2. Surplus reserves conversed to capital (share capital) | ||||||||||||
| 3. Remedying loss with surplus reserve | ||||||||||||
| 4. Carry-over |
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| retained earnings from the defined benefit plans | ||||||||||||
| 5. Carry-over retained earnings from other comprehensive income | ||||||||||||
| 6. Other | ||||||||||||
| (v) Reasonable reserve | ||||||||||||
| 1. Withdrawal in the report period | ||||||||||||
| 2. Usage in the report period | ||||||||||||
| (vi) Others | ||||||||||||
| IV. Balance at the end of the period | 283,161,227.00 | 146,587,271.50 | 77,391,593.25 | -205,915,113.72 | 301,224,978.03 |
III. Company profile
1. The registration place of the enterprise, the form of organization and the headquarters addressShenzhen Zhongheng HUAFA Company Limited (hereinafter referred to as Company or the Company),established on 8 December 1981. Uniform social credit code 91440300618830372G.Registered place and head office of the Company: 411 Bldg., Huafa (N) Road, Futian District, ShenzhenLegal representative: Li ZhongqiuRegistered capital: RMB 283,161,227.00
2. The nature of the business and the main business activities
The Company belongs to the computer, telecommunication and manufacturing of other electronic equipment.Business scope: producing and sales of vary color TV set, liquid crystal display, LCD (operates in branch),radio-recorder, sound equipment, electronic watch, electronic game and computers, the printed wiring board,precision injection parts, light packaging material (operates in Wuhan) and hardware (including tool and mould)
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for various electronic products and supporting parts, plating and surface treatment and tin wire, development andoperation of real estate (Shen Fang Di Zi No.: 7226760) and property management. Funded affiliated companiesin Wuhan and Jilin. Setting up branches in capital of the province (Lhasa City excluded) in China andmunicipality directly under the central government.
3. Relevant party offering approval reporting of financial statements and date thereofThe financial statement has been deliberated and approved by BOD on 20 August 2021. According to Article ofAssociation, the statement shall be submitted for deliberation in shareholders general meeting.
Consolidate scope in the Period including: subsidiaries including Shenzhen HUAFA Property Lease ManagementCo., Ltd (no annual inspection in 2011, and business license revoke on 1 April 2014), Shenzhen ZhonghengHUAFA Property Co., Ltd, Wuhan Hengfa Technology Co., Ltd., Shenzhen HUAFA Hengtian Co., Ltd. andShenzhen HUAFA Hengtai Co., Ltd. More of subsidiaries found in “Note VIII. Equity in other subjects”.
IV. Preparation basis of Financial Statements
1. Preparation basis
Base on the running continuously and actual transactions and events, in line with the Accounting Standards forBusiness Enterprise – Basic Standards and specific principle of accounting standards issued by the Ministry ofFinance (hereinafter collectively referred to as Accounting Standards for Business Enterprise), the Companyprepared and formulate the financial statement lies on the followed important accounting policy and estimation.
2. Going concern
The Company expects that the production and sales will be in a virtuous cycle within 12 months from the end ofhe reporting period, and there is no risk that affects the continued operations.
V. Important accounting policy and estimation
Notes on specific accounting policies and accounting estimation:
The following disclosure has covered the specific accounting policies and accounting estimates formulated by theCompany according to the actual production and operation characteristics.
1. Declaration of obedience to Accounting Standards for Business EnterpriseThe Financial Statements of the Company are up to requirements of Accounting Standards for Business Enterpriseand also a true and thorough reflection to the relevant information as the Company’s financial position dated 30
th
June 2021 and the operation results as well as cash flow for the first half year of 2021.
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2. Accounting period
The Company’s accounting year is Gregorian calendar year, namely from 1
st January to 31
stDecember of everyyear.
3. Business cycle
The Company’s business cycle is one year (12 months) as a normal cycle, and the business cycle is thedetermining criterion for the liquidity of assets and liabilities of the Company.
4. Bookkeeping standard currency
The Renminbi (RMB) is taken as the book-keeping standard currency.
5. Accounting methods for consolidation of enterprises under the same control or otherwise
5.1 Consolidation of enterprises under the same control
Where the Company for long term equity investment arising from business combination under common controlsatisfies the combination consideration by payment of cash, transfer of non-cash assets or assumption of debt, thecarrying value of the net assets of the acquire in combined financial statement of the ultimate controller shared bythe Company as at the combination date shall be deemed as the initial investment cost of such long term equityinvestment. If the equity instrument issued by combining party are consider as the combination consideration,than the total value of the issuing shares are consider as the share capital. The difference between the initial cost oflong-term equity investment and book value of consideration (or total face value of the shares issued) paid, capitalsurplus adjusted; if the capital surplus not enough to written down, than retained earning adjusted.
5.2 Business combination not under common control
As for business combination not under common control, combination costs refer to the sum of the fair value of theassets paid, liabilities occurred or assumed as well as equity securities issued by the acquirer to obtain control overthe acquire as at the acquisition date. As for acquiree that obtained by consolidation not under the same control,the qualified confirmation of identified assets, liability and contingency liabilities should calculated by fair valueon day of purchased. If the consolidation cost larger than the fair value amount of identified net assets fromacquiree’s, the differences should be recognized as goodwill. If the consolidation cost less than the fair valueamount of identified net assets from acquiree’s, the differences should reckoned into current non-operatingincome.
6. Preparation methods for consolidated financial statements
6.1 Consolidation financial statement range
The Company includes all the subsidiaries (including the separate entities controlled by the Company) into
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consolidated financial statement, including companies controlled by the Company, non-integral part of theinvestees and structural main body.
6.2 Centralize accounting policies, balance sheet dates and accounting periods of parent and subsidiaries.As for the inconsistency between the subsidiaries and the Company in the accounting policies and periods, thenecessary adjustment is made on the subsidiaries’ financial statements in the preparation of the consolidatedfinancial statements according to the Company’s accounting policies and periods.
6.3 Offset of consolidated financial statement
The consolidated financial statements shall be prepared on the basis of the balance sheet of the parent companyand subsidiaries, which offset the internal transactions incurred between the parent company and subsidiaries andwithin subsidiaries. The owner’s equity of the subsidiaries not attributable to the parent company shall bepresented as minority equity under the owner’s equity item in the consolidated balance sheet. The long term equityinvestment of the parent company held by the subsidiaries, deemed as treasury stock of the corporate group aswell as the reduction of owners’ equity, shall be presented as “Less: treasury stock” under the owners’ equity itemin the consolidated balance sheet.
6.4Accounting for acquisition of subsidiary through combination
For subsidiaries acquired under enterprise merger involving enterprises under common control,the assets, liabilities, operating results and cash flows of the subsidiaries are included in the consolidated financialstatements from the beginning of the financial year in which the combination took place. Whenpreparing the consolidated financial statements, for the subsidiaries acquired from businesscombination not involving entities under common control, the identifiable net assets of the subsidiaries areadjusted on the basis of their fair values on the date of acquisition.
6.5 Accounting treatment of disposal subsidiaries
In the case of partial disposal of long-term equity investments in subsidiaries without loss of control, in theconsolidated financial statements, the difference between the disposal price and the net asset share correspondingto the disposal of long-term equity investments and enjoying the subsidiaries’ continued calculation from thepurchase date or the merger date is used to adjust the capital reserve (capital premium or equity premium). If thecapital reserve is insufficient to offset, the retained earnings are adjusted.
7. Classification of joint venture arrangement and accounting treatment of joint operation
8. Determination criteria of cash and cash equivalent
The cash recognized in the preparation of the cash flow statements, is the Company’s storage cash and depositsavailable for payment anytime. The cash equivalents recognized in the preparation of the cash flow statements
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refers to the investment held by the Company with characteristic of short-term, strong mobility, easy transfer toknown sum cash and has slim risk from value changes.
9. Foreign currency exchange and the conversion of foreign currency statements
9.1 Foreign currency exchange
The approximate exchange rate of the spot exchange rate on transaction occurred should be used for standardmoney conversion while foreign currency exchange occurred On the balance sheet day, the monetary items areconverted on the current rate on the balance sheet day, concerning the exchange differences between the spotexchange rate on that date and initial confirmation or the sport exchange rate on previously balance sheet date,should reckoned in to current gains/losses except the capitalizing on exchange differences for foreign specificloans, which was reckoned into cost for capitalizing. The non-monetary items measured on the historic cost arestill measured by the original bookkeeping rate with the sum of the bookkeeping standard currency unchanged.Items of non-monetary foreign currency which was calculated by fair value, should converted by spot exchangerate on the confirmation day of fair value, difference between the converted amount of bookkeeping currency andoriginal amount of bookkeeping currency, was treated as changes of fair value (including exchange rate changed)reckoned into current gains/losses or recognized as other consolidated income.
9.2 Conversion of foreign currency financial statements
Upon the conversion of the foreign currency financial statements of the controlling subsidiaries, joint enterprises,and the affiliated enterprises on the bookkeeping standard currency different from the Company’s, the accountingcheck and preparation of the consolidated financial statements are made. Assets and liabilities items in the balancesheet are converted on the current rate on the balance sheet day; owners’ equity items besides the “retained profit”item, the other items are converted on the actual rate. Items of revenue and expenses in profit statement, shouldconverted by the approximate exchange rate of spot exchange rate on occurring date. The conversion difference ofthe foreign currency financial statements is listed specifically in the owners’ equity in the balance sheet. If theforeign cash flow determined by rational system method, the approximate exchange rate of spot exchange rate onoccurring date should prevail. The cash influenced by the rate fluctuation is listed specifically in the cash flowstatement. As for the foreign operation, the conversion difference of the foreign currency statement related to theforeign operation is transferred in proportion into the disposal of the current loss/gain.
10. Financial instrument
10.1 Category and recognition of financial instrument
Financial instrument is the contract that taken shape of the financial asses for an enterprise and of the financialliability or equity instrument for other units.
(1) Financial assets
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The Company classifies financial assets that meet the following conditions as financial assets measured atamortized cost: ① The Company’s business model for managing financial assets is to collect contractual cashflows as its goal; ② The contractual terms of the financial assets stipulate that the cash flow generated on aspecific date is only the payment of principal and interest based on the outstanding principal amount.
For investment in non-trading equity instruments, the Company may irrevocably designate it as a financial assetmeasured at fair value and its changes included in other comprehensive income at initial recognition. Thedesignation is made on the basis of a single investment, and the relevant investment meets the definition of equityinstruments from the perspective of the issuer.
Except for financial assets classified as financial assets measured at amortized cost and financial assets measuredat fair value and whose changes are included in other comprehensive income, the Company classifies the financialassets as financial assets measured at fair value and whose changes are included in current profit or loss. At theinitial recognition, if the accounting mismatch can be eliminated or reduced, the Company can irrevocablydesignate the financial asset as a financial asset measured at fair value and its changes are included in the currentprofit and loss.
(2) Financial liabilities
Financial liabilities are classified as financial liabilities measured at fair value and whose changes are included inthe current profit or loss, financial liabilities formed by the transfer of financial assets that does not meet theconditions for derecognition or continues to be involved in the transferred financial assets, and financial liabilitiesmeasured at amortized cost at initial recognition. All financial liabilities are not reclassified.
10.2 Measurement of financial instruments
The initial recognition of the Company’s financial instruments is measured at fair value. For financial assets andfinancial liabilities measured at fair value and whose changes are included in the current profit and loss, therelated transaction costs are directly included in the current profit and loss; for other types of financial assets orfinancial liabilities, the related transaction costs are included in the initial recognition amount. For the accountsreceivable or bills receivable arising from the sale of products or the provision of labor services, not containing ornot considering significant financing components, the Company shall use the amount of consideration expected tobe received as the initial recognition amount. The subsequent measurement of financial instruments depends ontheir classification.
(1) Financial assets
① Financial assets measured at amortized cost. After initial recognition, such financial assets are measured atamortized cost by using the effective interest method. Gains or losses arising from financial assets that aremeasured at amortized cost and do not belong to any hedging relationship are included in the current profit or losswhen they are derecognized, reclassified, amortized in accordance with the effective interest rate method, or
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recognized for impairment.
② Financial assets measured at fair value and whose changes are included in the current profit and loss. Afterinitial recognition, for such financial assets (except for a part of financial assets that belong to the hedgingrelationship), the fair value is used for subsequent measurement, and the resulting gains or losses (includinginterest and dividend income) are included in the current profit and loss.
③ Investment in debt instruments measured at fair value and whose changes are included in other comprehensiveincome. After initial recognition, the subsequent measurement of such financial assets is conducted at fair value.Interest, impairment losses or gains calculated by using the effective interest rate method and the exchange gainsand losses are included in the current profit and loss, and other gains or losses are included in othercomprehensive income. In derecognition, the accumulated gains or losses previously included in othercomprehensive income are transferred out of other comprehensive income and included in the current profit andloss.
(2) Financial liabilities
① Financial liabilities measured at fair value and whose changes are included in the current profit and loss. Suchfinancial liabilities include trading financial liabilities (including derivatives that belong to financial liabilities)and financial liabilities designated to be measured at fair value and whose changes are included in the currentprofit and loss. After initial recognition, the subsequent measurement of such financial liabilities is at fair value,except for those related to hedge accounting, gains or losses (including interest expenses) resulting from changesin the fair value of trading financial liabilities are included in the current profit and loss. If a financial liabilitydesignated to be measured at fair value and whose changes are included in the current profit or loss, the amount ofchange in the fair value of the financial liability caused by changes in the enterprise’s own credit risk is includedin other comprehensive income, other changes in fair value are included in the current profit and loss. If theimpact of changes in the financial liability’s own credit risk included in other comprehensive income causes orexpands the accounting mismatch in profit or loss, the Company will include all gains or losses on the financialliability in the current profit and loss.
② Financial liabilities measured at amortized cost. After initial recognition, such financial liabilities aremeasured at amortized cost by using the effective interest method.
10.3 The Company’s methods for confirming the fair value of financial instrumentsIf the financial instrument has an active market, the fair value is determined by the quoted price in the activemarket; if the financial instrument doesn’t have an active market, the fair value is determined by adopting thevaluation technique. Valuation techniques mainly include market approach, income approach and cost approach.In limited circumstances, if the recent information used to determine fair value is insufficient, or the range ofpossible estimated amounts of fair value is widely distributed, and the cost represents the best estimate of fairvalue within this range, the cost may represent the appropriate estimates of fair value within this distribution range.
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The Company uses all information on the performance and operation of the investee gettable after the initialrecognition date to determine whether the cost represents the fair value or not.
10.4 Confirmation basis and measurement method for the transfer of liabilities of financial assets
(1)Financial assets
If the Company’s financial asset meets one of the following conditions, it shall be terminated for confirmation: ①The contract right to receive the cash flow of the financial asset is terminated; ② The financial asset has beentransferred, and the Company has transferred almost all risks and rewards of ownership of the financial asset; ③The financial asset has been transferred, although the Company has neither transferred nor retained almost all theremuneration in the ownership of the financial asset, it has not retained control of the financial asset.
If the transfer of financial assets meets the conditions for derecognition, the difference between the following twoamounts shall be included in the current profit and loss: ① The book value of the transferred financial assets onthe date of derecognition; ② The sum of the consideration received for the transfer of financial assets and theamount corresponding to the derecognized part of the cumulative amount of changes in fair value that was directlyincluded in other comprehensive income (the financial assets involved in the transfer are classified as financialassets measured at fair value and their changes are included in other comprehensive income).
(2) Financial liability
If the current obligation of the financial liability (or part of it) has been discharged, the Company derecognizes thefinancial liability (or part of the financial liability).
If the financial liability (or part of it) is derecognized, the Company shall include the difference between its bookvalue and the consideration paid (including non-cash assets transferred out or liabilities assumed) into the currentprofit and loss.
11.Note receivable
11.1 How to determine expected credit losses
Based on expected credit losses, the Company makes impairment accounting treatment and confirm lossprovisions for financial assets (including receivables) measured at amortized cost and financial assets (includingreceivables financing) that are measured at fair value and whose changes are included in other comprehensiveincome, and lease receivables.
The Company assesses on each balance sheet date whether the credit risk of relevant financial instruments hasincreased significantly since initial recognition, and divides the process of credit impairment of financialinstruments into three stages, and adopts different accounting treatment methods for financial instruments
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impairment at different stages: (1) In the first stage, if the credit risk of a financial instrument has not increasedsignificantly since its initial recognition, the Company shall measure the loss provisions according to the expectedcredit losses of the financial instrument in the next 12 months, and calculate the interest income according to itsbook balance (i.e. without deducting impairment) and actual interest rate; (2) In the second stage, if the credit riskof a financial instrument has increased significantly since the initial recognition but no credit impairment hasoccurred, the Company shall measure the loss provisions according to the expected credit losses of the financialinstrument during the entire duration, and calculate the interest income according to its book balance and actualinterest rate; (3) In the third stage, if the credit impairment occurs after initial recognition, the Company shallmeasure loss provisions based on the expected credit losses of the financial instrument for the entire duration, andcalculate the interest income according to its book balance and actual interest rate.
(1) Methods of measuring loss provisions for financial instruments with lower credit riskFor financial instruments with lower credit risk on the balance sheet date, the Company can directly make theassumption that the credit risk of the instrument has not increased significantly since the initial recognitionwithout comparing with the credit risk at the initial recognition.
If the default risk of financial instruments is low, the debtor’s ability to fulfill its contractual cash flow obligationsis strong in the short term, and even if there are adverse changes in the economic situation and operatingenvironment over a long period of time, it may not necessarily reduce the borrower’s ability to fulfill thecontractual cash flow obligations, the financial instrument shall be considered to have lower credit risk.
(2) Methods of measuring loss provisions for accounts receivable and lease receivables
①Receivables that do not contain significant financing components. For the receivables formed by transactionsregulated by “Accounting Standards for Business Enterprises No.14-Revenue” and without containing significantfinancing components, the Company adopts a simplified method, that is, it always calculates the loss provisionsbased on the expected credit losses for the entire duration.
Based on the nature of financial instruments, the Company assesses whether credit risk has increased significantlyon the basis of individual financial assets or financial assets portfolios. The Company divides the notes receivableand accounts receivable into several portfolios based on the characteristics of credit risk, and calculates theexpected credit losses on the basis of the portfolios, the basis for determining the portfolios is as follows:
Accounts receivable portfolio 1: A portfolio that uses the aging of accounts receivables as credit riskcharacteristics,Accounts receivable portfolio 2: Combination of related parties included in the scope of consolidated statementsNotes receivable portfolio 1: Same as the division of accounts receivable portfolioNotes receivable portfolio 2: Management evaluates that this type of fund is bank acceptance portfolio with lowercredit risk
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For the accounts receivable and notes receivable being divided into portfolio 1, the Company refers to thehistorical credit loss experience, combines with the current conditions and the prediction of future economicsituation, and prepares a comparison table of the aging of accounts receivable and the expected credit loss rate ofthe entire duration, and calculates the expected credit losses.
For accounts receivable and notes receivable being divided into portfolio 2, the Company refers to historical creditloss experience, combines with the current conditions and the predictions of future economic conditions, andcalculates the expected credit losses of 0% through default risk exposure and expected credit loss rate for theentire duration.
②Accounts receivables and leases receivables that contain significant financing components. For accountsreceivables that contain significant financing components and leases receivables regulated by “AccountingStandards for Business Enterprises No. 21-Leases”, the Company measures loss provisions in accordance with thegeneral method, that is, the “third stage” model.
(3) Methods of measuring loss reserves for other financial assets
For financial assets other than the above, such as debt investment, other debt investment, other receivables,long-term receivables other than lease receivables, etc., the Company uses the general method, that is, thethree-stage model to measure loss reserves.When measuring the credit impairment of financial instruments, the Company considers the following factors inassessing whether the credit risk has increased significantly:
The Company divides other receivables into a number of portfolios based on the nature of the money, andcalculates the expected credit loss on the basis of the portfolio. The basis for determining the portfolio is asfollows:
Other receivables portfolio 1: A portfolio of unrelated parties with provision for impairment in accordance withthe expected loss rate
Other receivables portfolio 2: A portfolio of related parties included in the scope of the consolidated statement
For other receivables classified into portfolio 1, the Company refers to historical credit loss experience, combineswith current conditions and forecasts of future economic conditions, compiles a comparison table of accountsreceivable aging and expected credit loss rate of the entire duration, and calculates the expected credit loss.
For other receivables classified into portfolio 2, the Company refers to historical credit loss experience, combineswith current conditions and forecasts of future economic conditions, and calculates an expected credit loss of 0%through the default risk exposure and the expected credit loss rate of the entire duration .
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(4)Accrual method of bad debt provision for those accrual by account age as the portfolio
| Account age | Expected credit loss rate of receivable (%) | Expected credit loss rate of other receivable (%) |
Within one year (one year included)
| Within one year (one year included) | 0 | 0 |
1-2 years
| 1-2 years | 5 | 5 |
| 2-3 years | 10 | 10 |
Over 3 years
| Over 3 years | 30 | 30 |
11.2 Accounting treatment methods of expected credit losses
In order to reflect the changes in the credit risk of financial instruments since initial recognition, the Companyremeasures the expected credit losses on each balance sheet date, and the resulting increase or reversal of the lossprovisions should be counted as an impairment loss or gain and included in the current profit and loss, and basedon the type of financial instrument, offsets the book value of the financial asset listed in the balance sheet orincludes in the estimated liability (loan commitment or financial guarantee contract) or includes in othercomprehensive income (debt investments measured at fair value and whose changes are included in othercomprehensive income).
12. Account receivable
Same as 10. Note receivable
13.Receivable financing
Same as 10. Note receivable
14. Other account receivable
Determination and accounting treatment on the expected credit losses of other account receivableSame as 10. Note receivable
15. Inventory
15.1 Categories of inventory
The inventory is goods or manufactured products held for sale, products in process, and materials and mattersutilized in the production or supply of labor. Mainly including raw material, revolving materials (wrappage andlow-value consumption goods etc.), outside processing materials, goods in process, semi-finished goods, stocksand so on.
15.2 Accounting method for inventory delivery
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When inventories are issued, the actual cost is determined by monthly weighted average method.
15.3 Accrual method inventory falling price reserves
On the balance sheet day, the inventory is measured on the lower one between the cost and the net realizable value,and the provision for the falling price reserves is accrued on each inventory item; however, as for the inventory oflarge quantity and low price, the provision is accrued on the inventory category.
15.4 Inventory system
Inventory system of the Company is perpetual inventory system
15.5 Amortization method for the low-value consumables and wrap page
Low-value consumables and packages are amortized by one-point method
16. Contractual assets
17. Contractual costs
18. Assets held for sale
19. Debt investment
20. Other debt investment
21. Long-term account receivable
22. Long-term equity investment
22.1 Recognition of initial investment cost
For a long-term equity investment obtained by a business combination, if it is a business combination under thesame control, take the share of the combine party obtained in the book value of the net assets in the consolidatedfinancial statements of the ultimate controlling party on the combination date as the initial investment cost; in thecase of the consolidation of enterprises not under the same control, recognized as the initial cost is the recognizedconsolidation cost on the purchase day. As for the long term equity investment obtained by cash payment, theinitial investment cost is the actual purchase payment. As for the long term equity investment obtained by theequity securities offering, the initial investment cost is the fair value of the equity securities. As for the long-termequity investment obtained by debt reorganization, initial investment cost of such investment should determine byrelevant regulation of the “Accounting Standards for Business Enterprise No.12- Debt Reorganization”; as for thelong term equity investment obtained by the exchange of the non-monetary assets, the initial investment cost isrecognized on the relevant rules in the “Accounting Standards for Business Enterprise No. 7- Exchange ofNon-Monetary Assets”
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22.2 Subsequent measurement and profit or loss recognition
Where the company has a control over the investee, long-term equity investments are measured using cost method.Long-term equity investments in associates and joint ventures are measured using equity method. Where part ofthe equity investments of an investor in its associates are held indirectly through venture investment institutions,common fund, trust companies or other similar entities including investment linked insurance funds, such part ofequity investments indirectly held by the investor shall be measured at fair value through profit or loss accordingto according to relevant requirements of Accounting Standards for Business Enterprises No.22—Recognitionand measurement of Financial Instruments regardless whether the above entities have significant influence onsuch part of equity investments, while the remaining part shall be measured using equity method.
22.3 Basis of conclusion for common control and significant influence over the investeeJoint control over an investee refers to where the activities which have a significant influence on return on certainarrangement could be decided only by mutual consent of the investing parties sharing the control, which includesthe sales and purchase of goods or services, management of financial assets, acquisition and disposal of assets,research and development activities and financing activities, etc.; Significant influence on the investee refers tothat: significant influence over the investee exists when holding more than 20% but less than 50% of the shareswith voting rights or even if the holding is below 20%, there is still significant influence if any of the followingconditions is met: there is representative in the board of directors or similar governing body of the investee;participation in the investee’s policy setting process; assign key management to the investee; the investee relies onthe technology or technical information of the investing company; or major transactions with the investee.
23. Investment real estate
Measurement for investment real estateCost methodDepreciation or amortization methodThe types of investment real estate of the Company include the leased land use rights, leased buildings, and landuse rights held and prepared for transfer after appreciation. Investment real estate is initially measured at cost andsubsequently measured by using the cost model.
The leased buildings in the Company’s investment property adopts straight-line depreciation to calculate anddistill depreciation, specific accounting policy are same as part of the fixed assets. The leased land use rights inthe investment property and the land use rights to be transferred after appreciation adopt straight-line amortization,specific accounting policy are same as part of the intangible assets.
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24. Fixed assets
(1) Recognition
Fixed assets refers to the tangible assets holding for purpose of producing goods, providing labor services, leasingor operation management, which has one accounting fiscal year of using life. Meanwhile as up to the followingconditions, they are recognized: the economic interest related to the fixed assets probably flow into the Company;the cost of the fixed assets can be measured reliably.
(2) Depreciation method
| Category | Depreciation method | Depreciation life (year) | Salvage rate | Annual depreciation rate |
| House building | Straight-line depreciation | 20-50 | 10 | 1.8-4.5 |
| Machinery equipment | Straight-line depreciation | 10 | 10 | 9 |
| Mold equipment | Straight-line depreciation | 3 | 10 | 30 |
| Transportation equipment | Straight-line depreciation | 5 | 10 | 18 |
| Instrument equipment | Straight-line depreciation | 5 | 10 | 18 |
| Tool equipment | Straight-line depreciation | 5 | 10 | 18 |
| Office equipment | Straight-line depreciation | 5 | 10 | 18 |
N/A
(3) Recognition basis, valuation and depreciation method for fixed assets under financing leaseThe fixed assets under financing lease are the lease that has substantially transferred all the risks and rewardsassociated with asset ownership. The initial valuation of the fixed assets under financing lease is to take the lowerone between the fair value of the leased assets and the present value of the minimum lease payments on the startdate of the lease period as the entry value; the subsequent valuation of the fixed assets under financing leaseadopts the depreciation policy consistent with the own fixed assets to make depreciation and impairmentprovision.
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25. Construction in process
Construction in process of the Company divided as self-run construction and out-bag construction. TheConstruction in process of the Company carried forward as fixed assets while the construction is ready for theintended use. Criteria of the expected condition for use should apply one of the follow conditions: The substanceconstruction (installation included) of the fixed assets has completed all or basically; As the projects have been intest production or operation, and the results show that the assets can operate properly and produce the qualifiedproducts stably, or the test operation result shows the assets can operate or open properly. The expenditure of thefixed assets on the construction is a little or little. The fixed assets of the project constructed have been up to therequirements of the design or contract, or basically up to.
26. Borrowing expenses
26.1 Recognition principle on capitalization of borrowing expenses
As for the Company’s actual borrowing expenses directly attributable to the assets construction or production, it iscapitalized and reckoned into the relevant assets cost; as for other borrowing expenses, it is recognized on theactual sum and reckoned into the current loss/gain. The assets up to the capitalization are assets as the capitalassets, investment real estate, and inventory reaching the expectant availability or sale ability.
26.2 Calculation of the capitalization
Capitalization term: the period from the time starts to capitalization to the time the capitalization ends. The periodof capitalization suspended is not included. The capitalization of borrowing expenses should be suspended whilethe abnormal interrupt, which surpass three months continuously, in the middle of acquisition or construction orproduction.
As for the borrowing of the specific borrowing, the capitalization sum is recognized on the current actualinterest expenses less the interest income of the borrowing capital not utilized but deposited in the bank or thereturn of the temporary investment; As for the appropriation of the general borrowing, the capitalization sum isrecognized on the weighted average of, the accumulative assets expenditure above the specific borrowing, andtimes the capitalization rate of the appropriation; As for the discount or premium of the borrowing, the discount orpremium to be diluted in every accounting period is recognized in the actual rate method.
The effective interest method is the method for the measurement of the diluted discount or premium or interestexpenses on the actual interest rate; and the actual interest rate is the interest rate used in the discount of the futurecash flow in the expectant duration period as the current book value of the borrowing.
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27. Biological assets
28. Oil and natural gas assets
29.Right-of-use assets
30. Intangible assets
(1) Accounting method, service life and impairment test
1. Recognition principle on capitalization of borrowing expenses
As for the Company’s actual borrowing expenses directly attributable to the assets construction or production, it iscapitalized and reckoned into the relevant assets cost; as for other borrowing expenses, it is recognized on theactual sum and reckoned into the current loss/gain. The assets up to the capitalization are assets as the capitalassets, investment real estate, and inventory reaching the expectant availability or sale ability.
2. Calculation of the capitalization
Capitalization term: the period from the time starts to capitalization to the time the capitalization ends. The periodof capitalization suspended is not included. The capitalization of borrowing expenses should be suspended whilethe abnormal interrupt, which surpass three months continuously, in the middle of acquisition or construction orproduction.
As for the borrowing of the specific borrowing, the capitalization sum is recognized on the current actualinterest expenses less the interest income of the borrowing capital not utilized but deposited in the bank or thereturn of the temporary investment; As for the appropriation of the general borrowing, the capitalization sum isrecognized on the weighted average of, the accumulative assets expenditure above the specific borrowing, andtimes the capitalization rate of the appropriation; As for the discount or premium of the borrowing, the discount orpremium to be diluted in every accounting period is recognized in the actual rate method.
The effective interest method is the method for the measurement of the diluted discount or premium or interestexpenses on the actual interest rate; and the actual interest rate is the interest rate used in the discount of the futurecash flow in the expectant duration period as the current book value of the borrowing.
(2) Accounting policies for internal research and development expenditure
Specific criteria for the research phase and development phase of internal R&D projects, and specific criteria fordevelopment phase expenditures to qualify for capitalization
Expenditures for internal research and development projects at the research phase shall be included in the current
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profit or loss when incurred; expenditures incurred at the development phase and recognized as intangible assetsshall be transferred to intangible assets accounting.
31. Long-term assets impairment
Long-term equity investments, investment properties measured at cost and long-term assets such as fixed assets,construction in progress, productive biological assets at cost method, oil and gas assets, intangible assets andgoodwill are tested for impairment if there is any indication that an asset may be impaired at the balance date. Ifthe result of the impairment test indicates that the recoverable amount of the asset is less than its carrying amount,a provision for impairment and an impairment loss are recognized for the amount by which the asset’s carryingamount exceeds its recoverable amount.
The recoverable amount is the higher of an asset’s fair value less costs to sell and the present value of the futurecash flows expected to be derived from the asset. Provision for asset impairment is determined and recognized onthe individual asset basis. If it is not possible to estimate the recoverable amount of an individual asset, therecoverable amount of a group of assets to which the asset belongs is determined. A group of assets is the smallestgroup of assets that is able to generate independent cash inflows.
Goodwill arising from a business combination is tested for impairment at least at each year end, irrespective ofwhether there is any indication that the asset may be impaired. For the purpose of impairment testing, the carryingamount of goodwill acquired in a business combination is allocated from the acquisition date on a reasonablebasis to each of the related asset groups; if it is impossible to allocate to the related asset groups, it is allocated toeach of the related set of asset groups. If the carrying amount of the asset group or set of asset groups is higherthan its recoverable amount, the amount of the impairment loss first reduced by the carrying amount of thegoodwill allocated to the asset group or set of asset groups, and then the carrying amount of other assets (otherthan the goodwill) within the asset group or set of asset groups, pro rata based on the carrying amount of eachasset.
Once the impairment loss of such assets is recognized, it is not be reversed in any subsequent period.
32. Long-term deferred expenses
The Company’s long-term deferred expenditure are expenses paid out and with one year above (one-yearexcluded) benefit period. The long-term deferred expenses are diluted by periods according to the benefit period.As the long-term deferred expenses cannot enable the accounting period’s beneficiary, all dilution values of theproject undiluted yet, are transferred into the current loss/gain.
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33. Contractual liabilities
The company presents the obligation to transfer goods or provide services to customers for consideration receivedor receivable as a contract liability.
34. Employees remuneration
(1) Accounting for short-term benefits
In the period of employee services, short-term benefits are actually recognized as liabilities and charged to profitor loss, or if otherwise required or allowed by other accounting standards, to the related costs of assets for thecurrent period. At the time of actual occurrence, The Company’s employee benefits are recorded into the profitsand losses of the current year or assets associated costs according to the actual amount. The non-monetaryemployee benefits are measured at fair value. Regarding to the medical and health insurance, industrial injuryinsurance, maternity insurance and other social insurances, housing fund and labor union expenditure andpersonnel education that the Company paid for employees, the Company should recognize correspondingemployees benefits payable according to the appropriation basis and proportion as stipulated by relevantrequirements and recognize the corresponding liabilities and include these expenses in the profits or losses of thecurrent period or recognized as respective assets costs.
(2) Accounting for post-employment benefits
During the accounting period in which an employee provides service, the amount payable calculated underdefined contribution scheme shall be recognized as a liability and recorded in profit and loss of the current periodor in assets. In respect of the defined benefit scheme, the Company shall use the projected unit credit method andattribute the welfare obligations calculated using the formula stipulated by the defined benefit scheme to theservice period of the employee, and record the obligation in the current profit and loss or related assets cost.
(3) Accounting for termination benefits
The Company recognizes a liability and expenses in the current profit or loss for termination benefits at the earlierof the following dates: when the Company can no longer withdraw the offer of those benefits; and when theCompany recognizes costs for restructuring involving the payment of termination costs.
(4) Accounting for other long-term employee benefits
The Company provides other long-term employee benefits to its employees. For those falling within the scope ofdefined contribution scheme, the Company shall account for them according to relevant requirements of thedefined contribution scheme. In addition, the Company recognizes and measures the net liabilities or net assets ofthe other long-term employee benefits according to relevant requirements of the defined contribution scheme.
SEMI-ANNUAL REPORT 2021
35. Lease liability
36. Accrual liability
The obligation related to contingencies is the current obligation assumed by the company, and performing thisobligation may result in an outflow of economic benefits, and this obligation can be determined as the estimatedliabilities when the amount can be reliably measured. The Company makes initial measurement in accordancewith the best estimate for performing the related current obligation, if the expenditure as needed has a continuousrange, and the likelihood of occurrence of various results in this range is the same, the best estimate is determinedby the median value within the range; if a number of items are involved, the best estimate is determined by thecalculation of various possible outcomes and related probabilities.
At the balance sheet date, the book value of estimated liabilities should be rechecked, if there is conclusiveevidence indicates that this book value cannot truly reflect the current best estimate, and then the book valueshould be adjusted in accordance with the current best estimate.
37.Share-based payment
38. Other financial instrument as preferred shares and perpetual bonds
39. Revenue (income)
Accounting policy for recognition and measurement of revenue(income)
The Company recognizes revenue based on the transaction price allocated to the performance obligations at thetime when it has fulfilled the performance obligations in the contract, that is, when the customer obtains controlrights of the relevant goods or services. Obtaining control rights of related goods means being able to lead the useof the goods and obtain almost all economic benefits from them. Performance obligations refer to the Company'scommitment to transfer clearly distinguishable goods to customers in the contract. The transaction price refers tothe amount of consideration that the Company expects to be entitled to receive due to the transfer of goods to thecustomer, not including the amount collected on behalf of a third party and the amount that the Company expectsto return to the customer.Whether the performance obligation is to be performed within a certain period of time or at a certain point of timedepends on the terms of the contract and relevant legal provisions. If the performance obligation is performedwithin a certain period of time, the Company recognizes revenue in accordance with the progress of theperformance. Otherwise, the Company recognizes revenue at a certain point when the customer obtains controlrights of the relevant assets.The Company's specific revenue recognition methods:
SEMI-ANNUAL REPORT 2021
The sales contract between the Company and the customer usually only contains the performance obligation forthe transferred goods. The Company’s performance obligation for the transfer of goods does not meet the threeconditions for performance within a certain period of time, therefore, the Company usually recognizes revenue atthe time-point of completion of the inspection of incoming on the basis of comprehensive consideration of thefollowing factors, i.e. for domestic sales, the revenue is recognized when the product has been sent out and theother party has signed for confirmation. For export sales, the revenue is recognized by the relevant customsdeclaration documents when the product has been shipped and customs declaration procedures have beencompleted.The house lease contract signed by the Company and the customer usually only contains the performanceobligation for the provision of lease and property services, the Company recognizes revenue according to theprogress of performance when a performance obligation is performed within a certain period of time, i.e. asagreed in the lease contract, revenue is recognized when related payments are received or evidence of collectionsis obtained.Different business models of similar business resulted in different accounting policies for revenue recognitionN/A
40. Government subsidy
40.1Category of government subsidy and accounting treatment
Governments subsidy of the Company refer to the monetary and non-monetary assets obtained from governmentfor free (excluding the capital invested by government as an owner). If the government grants are monetary assets,it shall be measured according to the amount received or receivable. If the government grants are non-monetaryassets, it shall be measured at fair value; if the fair value cannot be obtained reliably, it shall be measured at thenominal amount.
Government grants related to daily activities are included in other income in accordance with the economicbusiness. Government grants not related to daily activities are included in the non-operating income andexpenditure.
Government grants that the government documents clearly stipulate to be used for the purchase and establishmentor forming long-term assets in other way are recognized as government grants related to assets. For thegovernment grants that the government documents do not clearly specify the subsidy target and can formlong-term assets, the part corresponding to the asset value is recognized as the government grants related to theassets, and the rest is recognized as the government grants related to the income. For the government grants whichare difficult to be distinguished, recognize the whole as the government grants related to the income. Governmentgrants related to assets are recognized as deferred income. The amount recognized as deferred income is includedin the current profit and loss in a reasonable and systematic manner within the useful life of the relevant asset.
SEMI-ANNUAL REPORT 2021
Government grants other than government grants related to assets are recognized as government grants related toincome. If the government grants related to the income are used to compensate the related expenses or losses ofthe enterprise in the future period, recognize them as deferred income and include them in the current profit andloss during the period of recognizing the related expenses. The government grants used to compensate the relevantexpenses or losses incurred by the enterprise are directly included in the current profit and loss.
The Company obtained the policy preferential loan interest subsidy, and the finance allocated the interest subsidyfunds to the loan bank, and the loan bank provides loans to the Company at a preferential interest rate, take theactual amount of the loan received as the entry value of the loan, and calculate the relevant borrowing costsaccording to the loan principal the policy preferential interest rate. If the finance directly appropriates the interestsubsidy funds to the Company, the Company will offset the relevant borrowing costs with the correspondinginterest subsidy.
40.2 Time points to recognize the government grants
Government grants are recognized when they meet the conditions attached to government grants and can bereceived. Government grants measured in accordance with the amount receivable are recognized when there isconclusive evidence at the end of the period that it meets the relevant conditions stipulated in the financial supportpolicy and is expected to receive financial support funds. Other government grants other than government grantsmeasured in accordance with the receivable amount are recognized when the grant is actually received.
41. Deferred income tax asset / deferred income tax liability
41.1 Where there is difference between the carrying amount of the assets or liabilities and its tax base, (as for anitem that has not been recognized as an asset or liability, if its tax base can be determined in light of the tax law,the tax base shall recognized as the difference) the deferred income tax and deferred income tax liabilities shall bedetermined according to the applicable tax rate in period of assets expected to recover or liability expected to payoff.
41.2 The deferred income tax assets shall be recognized to the extent of the amount of the taxable income which itis most likely to obtain and which can be deducted from the deductible temporary difference. On balance sheetdate, if there have concrete evidence of obtaining, in future period, enough taxable amounts to deduct thedeductible temporary difference, the un-confirmed deferred income tax assets in previous accounting period shallbe recognized. If there has no enough taxable amounts, obtained in future period, to deducted the deferred incometax assets, book value of the deferred income tax assets shall be kept in decreased.
41.3The taxable temporary differences related to the investments of subsidiary companies and associated
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enterprises shall recognized as deferred income tax liability, unless the Company can control the time of thereverse of temporary differences and the temporary differences are unlikely to be reversed in the expected future.As for the deductible temporary difference related to the investment of the subsidiary companies and associatedenterprises, deferred income tax assets shall be recognized while the temporary differences are likely to bereversed in the expected future and it is likely to acquire any amount of taxable income tax that may be used formaking up the deductible temporary differences.
42. Leasing
(1) Accounting treatment for operating lease
Operating lease payments are recognized on a straight-line basis over the term of the relevant lease, and are eitherincluded in the cost of related asset or charged to profit or loss for the period.
(2) Accounting treatment for finance lease
Accounting treatment for finance lease: At the commencement of the lease term, the Group records the leasedasset at an amount equal to the lower of the fair value of the leased asset and the present value of the minimumlease payments. The difference between the recorded amounts is accounted for as unrecognized finance charge,using the effective interest method amortization during the lease term. Minimum lease payments deductingunrecognized financing charges are listed as long-term payable.
43. Other important accounting policy and estimates
N/A
44. Changes in important accounting policies and estimates
(1) Changes in important accounting policies
√ Applicable □ Not applicable
| Content and reason of changes in accounting policies | Approval procedure | Note |
44.1 Change in accounting policies and basis
The revised Accounting Standards for Business Enterprise No. 14- Revenue (hereinafter referred to as NewRevenue Standard) was released by the Ministry of Finance in 2017. the Company implemented the New RevenueStandards and Notice since 1 Jan. 2020. and relevant content of the accounting polices are adjusted.
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The new revenue standards replaced the "Accounting Standards for Business Enterprises No. 14-Revenue" and"Accounting Standards for Business Enterprises No. 15-Construction Contracts" (collectively referred to as the"original revenue standards") promulgated by the Ministry of Finance in 2006. Under the original revenuestandards, the Company used the transfer of risk rewards as the judgment standard for the timing of revenuerecognition. The new revenue standards introduce the “five-step method” of revenue recognition andmeasurement, and provide more guidance for specific transactions or events. Under the new revenue standards,the Company uses the transfer of control as the judgment standard for revenue recognition. For the specificaccounting policies of revenue recognition and measurement, please refer to "Note III. (22) Revenue".
The Company has adjusted relevant accounting policies in accordance with the specific provisions of the newrevenue standards on specific matters or transactions. According to the provisions of the new revenue standards,the contract assets or contract liabilities are listed in the balance sheet based on the relationship betweenperformance obligations and customer payments. At the same time, the Company provides more disclosures onincome-related information disclosure requirements in accordance with the new revenue standards, such asinformation related to important contracts or business and performance obligations and information related totransaction prices allocated to the remaining performance obligations, including the usual performance time ofperformance obligations, the important payment terms, the nature of the goods the company promises to transfer(including the explanation of whether the company is an agent), the company’s expected return to customers andother similar obligations, the expected refund to the customer assumed by the company and other similarobligations, the type of quality assurance and related obligations.
The Company reviews revenue sources and customer contract procedures to assess the impact of the new revenuestandards on financial statements. The Company’s revenue is mainly derived from the sale of goods, and revenueis recognized when the goods are delivered or the service acceptance is completed. The adoption of the newrevenue standards has no significant impact on the Company except for the presentation of financial statements.
(2)Changes in important accounting estimates
□ Applicable √Not applicable
(3) Adjustment the financial statements at the beginning of the first year of implementation of new leasingstandards since 2021ApplicableWhether needs to adjust the balance sheet at the beginning of the year
□Yes √No
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Explanation of reasons for not requiring the adjustment of beginning balance sheet accountNo impact items
(4) Retrospective adjustment of early comparison data description when initially implemented the newleasing standards since 2021
□ Applicable √ Not applicable
45. Other
VI. Taxes
1. Major tax and tax rate
| Taxes | Taxation basis | Tax rate |
| VAT | Sales revenue | 13%, 9%, 6%, 5%, 3% |
| Consumption tax | Turnover tax payable | 7% |
| Corporate income tax | Taxable income | 25%, 15% |
| Educational surtax | Turnover tax payable | 3% |
| Local educational surtax | Turnover tax payable | 2%, 1.5% |
| Property tax | 70% of original value of the property | 1.2% |
Explain the different taxation entity of the enterprise income tax
| Taxation entity | Income tax rate |
2. Tax preferences
According to the “Measures for the Determination of High-tech Enterprises”, and through the enterpriseapplication, expert review, and public announcement and other procedures, the Company’s wholly-ownedsubsidiary, Wuhan Hengfa Technology Co., Ltd., has been identified as a high-tech enterprise, and obtained the“High-tech Enterprise Certificate” jointly issued by the Science and Technology Department of Hubei Province,Hubei Provincial Finance Department, Hubei Provincial Office, SAT, and Local Taxation Bureau of HubeiProvince on December 1, 2020, the certificate number is GR202042003237, which is valid for 3 years. Theapplicable corporate income tax rate of the subsidiary Wuhan Hengfa Technology Co., Ltd. for 2021was 15%.
3. Other
Nil
SEMI-ANNUAL REPORT 2021
VII. Notes to main items in consolidated financial statement
1. Monetary fund
In RMB
| Item | Ending balance | Opening balance |
| Cash on hand | 903.40 | 138,673.02 |
| Bank deposit | 16,620,293.80 | 30,141,013.39 |
| Other monetary fund | 42,990,989.02 | 30,688,367.17 |
| Total | 59,612,186.22 | 60,968,053.58 |
Other explanationOther currency funds are bank acceptance bill margin
2. Trading financial assets
In RMB
| Item | Ending balance | Opening balance |
| Including: | ||
| Including: |
Other note:
3. Derivative financial assets
In RMB
| Item | Ending balance | Opening balance |
Other note:
4. Note receivable
(1) Category
In RMB
| Item | Ending balance | Opening balance |
| Commercial acceptance bill | 491,683.78 | 20,240,464.79 |
| Total | 491,683.78 | 20,240,464.79 |
In RMB
| Category | Ending balance | Opening balance | ||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |
SEMI-ANNUAL REPORT 2021
| Amount | Proportion | Amount | Accrual ratio | Amount | Proportion | Amount | Accrual ratio | |||
| Including: | ||||||||||
| Including: |
Accrual of bad debt provision on single basis:
In RMB
| Name | Ending balance | |||
| Book balance | Bad debt provision | Accrual ratio | Accrual causes | |
Accrual of bad debt provision on portfolio:
In RMB
| Name | Ending balance | ||
| Book balance | Bad debt provision | Accrual ratio | |
Explanation on portfolio basis:
If the provision for bad debts of note receivable is made in accordance with the general model of expected credit losses, please refer tothe disclosure of other receivables to disclose related information about bad-debt provisions:
□ Applicable √Not applicable
(2) Bad debt provision accrual, collected or reversal in the period
Bad debt provision accrual in the period:
In RMB
| Category | Opening balance | Amount changed in the period | Ending balance | |||
| Accrual | Collected or reversal | Written-off | Other | |||
Including major amount bad debt provision that collected or reversal in the period:
□ Applicable √Not applicable
(3) Notes receivable that the company has pledged at the end of the period
In RMB
| Item | Amount pledge at period-end |
(4) Notes endorsement or discount and undue on balance sheet date
In RMB
| Item | Amount derecognition at period-end | Amount not derecognition at period-end |
| Commercial acceptance bill | 211,799.13 | |
| Total | 211,799.13 |
SEMI-ANNUAL REPORT 2021
(5) Notes transfer to account receivable due for failure implementation by drawer at period-end
In RMB
| Item | Amount transfer to account receivable at period-end |
Other note
(6) Note receivable actually written-off in the period
In RMB
| Item | Written-off amount |
Written-off situation of important notes receivable:
In RMB
| Name | Nature of notes receivable | Written-off amount | Written-off reason | Written-off procedure performed | Whether the payment is generated by related party transactions |
Notes receivable written-off description:
5. Account receivable
(1) Category
In RMB
| Category | Ending balance | Opening balance | ||||||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
| Amount | Proportion | Amount | Accrual ratio | Amount | Proportion | Amount | Accrual ratio | |||
| Account receivable with bad debt provision accrual on a single basis | 13,146,290.18 | 13,156,183.96 | 100.00% | 0.00 | 13,146,290.18 | 9.31% | 13,146,290.18 | 100.00% | 0.00 | |
| Including: | ||||||||||
| Account receivable with bad debt provision accrual by combination | 135,770,727.15 | 9,893.78 | 0.01% | 135,750,939.59 | 128,073,805.57 | 90.69% | 9,893.78 | 0.01% | 128,063,911.79 | |
| Including: | ||||||||||
| Combination 1: | 135,77 | 9,893.7 | 0.01% | 135,75 | 128,07 | 90.69% | 9,893.7 | 0.01% | 128,063, | |
SEMI-ANNUAL REPORT 2021
| Take account ages of receivables as a combination of credit risk characteristics | 0,727.15 | 8 | 0,939.59 | 3,805.57 | 8 | 911.79 | ||||
| Total | 148,917,017.33 | 13,166,077.74 | 135,750,939.59 | 141,220,095.75 | 100.00% | 13,156,183.96 | 8.66% | 128,063,911.79 |
Accrual of bad debt provision on single basis: 13,146,290.18
In RMB
| Name | Ending balance | |||
| Book balance | Bad debt provision | Accrual ratio | Accrual causes | |
| Shenzhen Portman Bowling Club Co., Ltd. | 2,555,374.75 | 2,555,374.75 | 100.00% | Uncollectible |
| Hong Kong Haowei Industrial Co., Ltd. | 1,870,887.18 | 1,870,887.18 | 100.00% | Uncollectible |
| TCL ACE ELECTRIC APPLIANCE (HUIZHOU) CO., LTD. | 1,325,431.75 | 1,325,431.75 | 100.00% | Uncollectible |
| Qingdao Haier Parts Procurement Co., Ltd. | 1,225,326.15 | 1,225,326.15 | 100.00% | Uncollectible |
| SKYWORTH Multimedia (Shenzhen) Co., Ltd. | 579,343.89 | 579,343.89 | 100.00% | Uncollectible |
| Shenzhen Huixin Video Technology Co., Ltd. | 381,168.96 | 381,168.96 | 100.00% | Uncollectible |
| Shenzhen Wandelai Digital Technology Co., Ltd. | 351,813.70 | 351,813.70 | 100.00% | Uncollectible |
| Shenzhen Dalong Electronic Co., Ltd. | 344,700.00 | 344,700.00 | 100.00% | Uncollectible |
| Shenzhen Keya Electronic Co., Ltd. | 332,337.76 | 332,337.76 | 100.00% | Uncollectible |
| Shenzhen Qunping Electronic Co., Ltd. | 304,542.95 | 304,542.95 | 100.00% | Uncollectible |
| China Galaxy Electronics (Hong | 288,261.17 | 288,261.17 | 100.00% | Uncollectible |
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| Kong) Co., Ltd. | ||||
| Dongguan Weite Electronic Co., Ltd. | 274,399.80 | 274,399.80 | 100.00% | Uncollectible |
| Chuangjing | 247,811.87 | 247,811.87 | 100.00% | Uncollectible |
| Hong Kong New Century Electronics Co., Ltd. | 207,409.40 | 207,409.40 | 100.00% | Uncollectible |
| Shenyang Beitai Electronic Co., Ltd. | 203,304.02 | 203,304.02 | 100.00% | Uncollectible |
| Beijing Xinfang Weiye Technology Co., Ltd. | 193,000.00 | 193,000.00 | 100.00% | Uncollectible |
| TCL Electronics (Hong Kong) Co., Ltd. | 145,087.14 | 145,087.14 | 100.00% | Uncollectible |
| Huizhou TCL Xinte Electronics Co., Ltd. | 142,707.14 | 142,707.14 | 100.00% | Uncollectible |
| Sky Worth – RGB Electronic Co., Ltd. | 133,485.83 | 133,485.83 | 100.00% | Uncollectible |
| Other | 2,039,896.72 | 2,039,896.72 | 100.00% | Uncollectible |
| Total | 13,146,290.18 | 13,146,290.18 | -- |
Accrual of bad debt provision on single basis:
In RMB
| Name | Ending balance | |||
| Book balance | Bad debt provision | Accrual ratio | Accrual causes | |
Accrual of bad debt provision on portfolio: 9893.78
In RMB
| Name | Ending balance | ||
| Book balance | Bad debt provision | Accrual ratio | |
| Within one year | |||
| 1-2 years | 50,840.84 | 2,542.04 | 5.00% |
| 2-3 years | 65,934.11 | 6,593.41 | 10.00% |
| Over 3 years | 2,527.77 | 758.33 | 30.00% |
| Total | 119,302.72 | 9,893.78 | -- |
Explanation on portfolio basis:
If the provision for bad debts of accounts receivable is made in accordance with the general model of expected credit losses, pleaserefer to the disclosure of other receivables to disclose related information about bad-debt provisions:
□ Applicable √Not applicable
By account age
SEMI-ANNUAL REPORT 2021
In RMB
| Account ages | Book balance |
| Within one year (one year included) | 135,313,612.32 |
| 1-2 years | 316,209.95 |
| 2-3 years | 65,934.11 |
| Over 3 years | 13,221,260.95 |
| 3-4 years | 74,970.77 |
| Over 5 years | 13,146,290.18 |
| Total | 148,917,017.33 |
(2) Bad debt provision accrual, collected or reversal in the period
Bad debt provision accrual in the period:
In RMB
| Category | Opening balance | Amount changed in the period | Ending balance | |||
| Accrual | Collected or reversal | Written-off | Other | |||
Including major amount bad debt provision that collected or reversal in the period:
In RMB
| Company | Amount collected or reversal | Way of collection |
(3) Actual written-off accounts receivable in the current period
In RMB
| Item | Written-off amount |
Including the important accounts receivable written-off situation:
In RMB
| Name | Nature of accounts receivable | Written-off amount | Written-off reason | Written-off procedure performed | Whether the payment is generated by related party transactions |
Written-off description of accounts receivable:
(4) Top 5 account receivables collected by arrears party at ending balance
In RMB
| Company | Ending balance of account receivable | Proportion in total account receivables at period-end | Ending balance of bad debt provision |
SEMI-ANNUAL REPORT 2021
| Qingdao Haidayuan Purchasing Service Co., Ltd. | 55,398,955.61 | 41.00% | |
| Hong Kong Yutian International Investment Co., Ltd. | 29,037,251.56 | 21.00% | |
| Hefei Hangjia Display Technology Co., Ltd. | 20,818,896.99 | 15.00% | |
| TCL Air Conditioner (Wuhan) Co., Ltd. | 17,304,577.43 | 13.00% | |
| Viewsonic International Copera | 9,050,774.07 | 7.00% | |
| Total | 131,610,455.66 | 97.00% |
(5) Account receivable derecognition due to financial assets transfer
Nil
(6) Assets and liabilities resulted by account receivable transfer and continues involvementNilOther note:
Nil
6. Receivable financing
In RMB
| Item | Ending balance | Opening balance |
| Haier Electronic Acceptance | 5,774,948.69 | 10,057,385.11 |
| Total | 5,774,948.69 | 10,057,385.11 |
Receivable financing Changes in the period and changes in fair value
□ Applicable √Not applicable
If the provision for bad debts of accounts receivable is made in accordance with the general model of expected credit losses, pleaserefer to the disclosure of other receivables to disclose related information about bad-debt provisions:
□ Applicable √Not applicable
Other explanation:
SEMI-ANNUAL REPORT 2021
7. Accounts paid in advance
(1) By account age
In RMB
| Account ages | Ending balance | Opening balance | ||
| Amount | Proportion | Amount | Proportion | |
| Within one year | 31,776,308.14 | 99.42% | 39,458,164.61 | 99.52% |
| 1-2 years | 102,781.00 | 0.32% | 102,781.00 | 0.27% |
| 2-3 years | 82,309.50 | 0.26% | 82,309.50 | 0.21% |
| Over 3 years | 0.00 | |||
| Total | 31,961,398.64 | -- | 39,643,255.11 | -- |
Explanation on reasons of failure to settle on important account paid in advance with age over one year:
Nil
(2) Top 5 account paid in advance at ending balance by prepayment object
| Company | Ending balance | Proportion in accounts paid in advance |
Hefei Hangjia Display Technology Co., Ltd.
| Hefei Hangjia Display Technology Co., Ltd. | 10,981,759.00 | 34% |
| AU Optronics Co., Ltd. | 8,231,592.52 | 26% |
| Nanjing CEC Panda LCD Technology Co., Ltd. | 3,243,380.00 | 10% |
| Guangzhou Houxiang Electronic Technology Co., Ltd. | 820,800.00 | 3% |
| Gree Precision Mold (Wuhan) Co., Ltd. | 745,620.00 | 2% |
Other explanation:
Nil
8. Other account receivable
In RMB
| Item | Ending balance | Opening balance |
| Other account receivable | 22,540,779.20 | 4,466,949.96 |
| Total | 22,540,779.20 | 4,466,949.96 |
1) Category of interest receivable
In RMB
| Item | Ending balance | Opening balance |
SEMI-ANNUAL REPORT 2021
2) Significant overdue interest
In RMB
| Borrower | Ending balance | Overdue time | Reason for overdue | Whether there is impairment and its judgment basis |
Other note:
Nil
3) Accrual of bad debt provision
□ Applicable √Not applicable
(2) Dividend receivable
1) Category of dividend receivable
In RMB
| Item (or invested unit) | Ending balance | Opening balance |
2) Important dividend receivable with account age over one year
In RMB
| Item (or invested unit) | Ending balance | Account age | Reasons for non-recovery | Whether there is impairment and its judgment basis |
3) Accrual of bad debt provision
□ Applicable √Not applicable
Other note:
(3) Other account receivable
1) Other account receivable by nature
In RMB
| Nature | Ending book balance | Opening book balance |
| Margin & deposit | 1,381,560.00 | 1,681,688.00 |
| Borrow money | 2,889,381.44 | 2,124,073.12 |
| Intercourse funds | 23,785,393.79 | 8,924,093.42 |
SEMI-ANNUAL REPORT 2021
| Rental receivable | 8,311,911.11 | 6,224,167.48 |
| Other | 1,024,034.71 | 364,429.79 |
| Less: Bad debt provision | -14,851,501.85 | -14,851,501.85 |
| Total | 22,540,779.20 | 4,466,949.96 |
2) Accrual of bad debt provision
In RMB
| Bad debt provision | Phase I | Phase II | Phase III | Total |
| Expected credit losses over next 12 months | Expected credit losses for the entire duration (without credit impairment occurred) | Expected credit losses for the entire duration (with credit impairment occurred) | ||
| Balance on1 Jan. 2021 | 117.75 | 14,812,059.79 | 14,851,501.85 | |
| Balance of 1 Jan. 2021 in the period | —— | —— | —— | —— |
| Balance on Dec. 31, 2021 | 117.75 | 14,812,059.79 | 14,851,501.85 |
Change of book balance of loss provision with amount has major changes in the period
□ Applicable √Not applicable
By account age
In RMB
| Account ages | Book balance |
| Within one year (one year included) | 21,174,519.27 |
| 1-2 years | 297,671.40 |
| 2-3 years | 312,212.44 |
| Over 3 years | 15,607,877.94 |
| 3-4 years | 1,446,706.00 |
| 4-5 years | 943,020.00 |
| Over 5 years | 13,218,151.94 |
| Total | 37,392,281.05 |
3) Bad debt provision accrual, collected or reversal in the period
Bad debt provision accrual in the period:
In RMB
| Category | Opening | Amount changed in the period | Ending balance |
SEMI-ANNUAL REPORT 2021
| balance | Accrual | Collected or reversal | Written-off | Other |
Including the important amount collected or switches back in the period:
In RMB
| Company | Amount collected or switches back | Way of collection |
4) The actual written-off other receivables in the current period
In RMB
| Item | Written-off amount |
Including the important written-off situation of other receivables:
In RMB
| Name | Nature of other receivables | Written-off amount | Written-off reason | Written-off procedure performed | Whether the payment is generated by related party transactions |
Description of other receivables written-off:
5) Top 5 other receivables collected by arrears party at ending balance
In RMB
| Company | Nature | Ending balance | Account ages | Proportion in total other receivables at period-end | Ending balance of bad debt provision |
| Portman | Rental receivable | 4,021,734.22 | Over 3 years | 18.00% | 4,021,734.22 |
| Shenzhen Jifang Investment Co., Ltd | Rental receivable | 1,380,608.00 | Over 3 years | 6.00% | 1,380,608.00 |
| Fujian Jielian Electronics Co., Ltd. | Margin & deposit | 800,000.00 | Over 3 years | 4.00% | 240,000.00 |
| Compensation for traffic accidents | Intercourse funds | 555,785.81 | Over 3 years | 2.00% | 555,785.81 |
| Hebei Botou Court | Intercourse funds | 520,021.00 | Over 3 years | 2.00% | 520,021.00 |
| Total | -- | 7,278,149.03 | -- | 6,718,149.03 |
6) Receivables involving government subsidies
In RMB
SEMI-ANNUAL REPORT 2021
| Name | Government subsidy item | Ending balance | Ending account age | Estimated time, amount and basis of receipt |
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:
9. Inventories
Whether companies need to comply with the disclosure requirements of the real estate industryNo
(1) Category
In RMB
| Item | Ending balance | Opening balance | ||||
| Book balance | Inventories fall provision or contract performance costs impairment provision | Book value | Book balance | Inventories fall provision or contract performance costs impairment provision | Book value | |
| Raw materials | 67,070,060.38 | 2,191,320.92 | 64,878,739.46 | 39,735,101.27 | 1,691,320.92 | 38,043,780.35 |
| Inventory goods | 55,755,568.27 | 2,523,369.82 | 53,232,198.45 | 27,562,913.38 | 1,673,369.82 | 25,889,543.56 |
| Homemade semi-finished products | 11,750,725.54 | 29,363.73 | 11,721,361.81 | 6,213,029.56 | 29,363.73 | 6,183,665.83 |
| Low priced and easily worn articles | 156,274.66 | 110,622.38 | 45,652.28 | 159,646.13 | 110,622.38 | 49,023.75 |
| Total | 134,772,337.36 | 4,854,676.85 | 129,877,952.00 | 73,670,690.34 | 3,504,676.85 | 70,166,013.49 |
(2) Inventories fall provision or contract performance costs impairment provision
In RMB
| Item | Opening | Current increased | Current decreased | Ending balance |
SEMI-ANNUAL REPORT 2021
| balance | Accrual | Other | Reversal or write-off | Other | ||
| Raw materials | 1,691,320.92 | 500,000.00 | 2,191,320.92 | |||
| Inventory goods | 1,673,369.82 | 850,000.00 | 2,523,369.82 | |||
| Homemade semi-finished products | 29,363.73 | 29,363.73 | ||||
| Low priced and easily worn articles | 110,622.38 | 110,622.38 | ||||
| Total | 3,504,676.85 | 1,350,000.00 | 4,854,676.85 |
Nil
(3) Explanation on capitalization of borrowing costs at ending balance of inventory
Nil
(4) Assets completed without settlement from construction contract at period-end
Nil
10. Contract assets
In RMB
| Item | Ending balance | Opening balance | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
The amount and reasons for major changes in the book value of contract assets during the current period:
In RMB
| Item | Change amount | Reason for change |
If the provision for bad debts of contract assets is made in accordance with the general model of expected credit losses, please refer tothe disclosure of other receivables to disclose related information about bad-debt provisions:
□ Applicable √Not applicable
Accrual provision for impairment of contract assets in the current period
In RMB
| Item | Current accrual | Current reversal | Current resell/Written-off | Reason |
Other note:
SEMI-ANNUAL REPORT 2021
11. Assets held for sale
In RMB
| Item | Ending book balance | Provision for impairment | Ending book value | Fair value | Estimated disposal cost | Estimated disposal time |
Other note:
12. Non-current assets due within one year
In RMB
| Item | Ending balance | Opening balance |
Important debt investment/other debt investment
In RMB
| Creditor’s Rights Item | Ending balance | Opening balance | ||||||
| Face value | Coupon rate | Real interest rate | Expiry date | Face value | Coupon rate | Real interest rate | Expiry date | |
Other note:
13. Other current assets
In RMB
| Item | Ending balance | Opening balance |
| Reclassification of input tax to be deducted | 741,380.21 | 4,255,643.19 |
| Total | 741,380.21 | 4,255,643.19 |
Other explanation:
14. Debt investment
In RMB
| Item | Ending balance | Opening balance | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
Important debt investment
In RMB
| Creditor’s Rights Item | Ending balance | Opening balance | ||||||
| Face value | Coupon rate | Real interest rate | Expiry date | Face value | Coupon rate | Real interest rate | Expiry date | |
SEMI-ANNUAL REPORT 2021
Provision for impairment accrual
In RMB
| Bad debt provision | Phase I | Phase II | Phase III | Total |
| Expected credit losses over next 12 months | Expected credit losses for the entire duration (without credit impairment occurred) | Expected credit losses for the entire duration (with credit impairment occurred) | ||
| Balance of 1 Jan. 2021 in the period | —— | —— | —— | —— |
Change of book balance of loss provision with amount has major changes in the period
□ Applicable √Not applicable
Other note:
15. Other debt investment
In RMB
| Item | Opening balance | Accrued interest | Fair value changes in this period | Ending balance | Cost | Cumulative fair value changes | Accumulated loss reserves recognized in other comprehensive income | Note |
Important other debt investment
In RMB
| Other Creditor’s Rights Item | Ending balance | Opening balance | ||||||
| Face value | Coupon rate | Real interest rate | Expiry date | Face value | Coupon rate | Real interest rate | Expiry date | |
Provision for impairment accrual
In RMB
| Bad debt provision | Phase I | Phase II | Phase III | Total |
| Expected credit losses over next 12 months | Expected credit losses for the entire duration (without credit impairment occurred) | Expected credit losses for the entire duration (with credit impairment occurred) | ||
| Balance of 1 Jan. 2021 in the period | —— | —— | —— | —— |
Change of book balance of loss provision with amount has major changes in the period
SEMI-ANNUAL REPORT 2021
□ Applicable √Not applicable
Other note:
16. Long-term receivables
(1) Long-term receivables
In RMB
| Item | Ending balance | Opening balance | Discount rate range | ||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | ||
Bad debt provision impairment
In RMB
| Bad debt provision | Phase I | Phase II | Phase III | Total |
| Expected credit losses over next 12 months | Expected credit losses for the entire duration (without credit impairment occurred) | Expected credit losses for the entire duration (with credit impairment occurred) | ||
| Balance of 1 Jan. 2021 in the period | —— | —— | —— | —— |
Change of book balance of loss provision with amount has major changes in the period
□ Applicable √Not applicable
(2) Long-term receivables derecognized due to the transfer of financial assets
(3) The amount of assets and liabilities formed by the transfer of long-term receivables and continuedinvolvementOther note
17. Long-term equity investment
In RMB
| Enterprise | Opening balance (book value) | Current changes (+, -) | Ending balance (book value) | Ending balance of depreciation reserves | |||||||
| Additional investment | Capital reduction | Investment gain/loss recognized under | Other comprehensive income adjustment | Other equity change | Cash dividend or profit announced to issued | Impairment accrual | Other | ||||
SEMI-ANNUAL REPORT 2021
| equity | ||
| I. Joint venture | ||
| II. Associated enterprise | ||
Other note
18. Other equity instrument investment
In RMB
| Item | Ending balance | Opening balance |
Itemized disclosure of investment in non-trading equity instruments for the current period
In RMB
| Item | Recognized dividend income | Cumulative gain | Accumulated loss | The amount of comprehensive income transferred to retained earnings | Reasons designated as fair value measurement and its changes included in other comprehensive income | Reason for transferring comprehensive income to retained income |
Other note:
19. Other non-current financial assets
In RMB
| Item | Ending balance | Opening balance |
Other note:
20. 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. Original book value | ||||
| 1. Opening balance | 133,661,686.94 | 133,661,686.94 | ||
| 2. Current increased | ||||
| (1) Outsourcing |
SEMI-ANNUAL REPORT 2021
| (2) Inventory\fixed assets\construction in process transfer-in | ||||
| (3) Increased by combination | ||||
| 3. Current decreased | ||||
| (1) Disposal | ||||
| (2) Other transfer-out | ||||
| 4. Ending balance | 133,661,686.94 | 133,661,686.94 | ||
| II. Accumulated depreciation and accumulated amortization | ||||
| 1. Opening balance | 86,437,024.67 | 86,437,024.67 | ||
| 2. Current increased | 864,165.14 | 864,165.14 | ||
| (1) Accrual or amortization | 864,165.14 | 864,165.14 | ||
| 3. Current decreased | ||||
| (1) Disposal | ||||
| (2) Other transfer-out | ||||
| 4. Ending balance | 87,301,189.81 | 87,301,189.81 | ||
| III. Impairment provision | ||||
| 1. Opening balance | ||||
| 2. Current increased | ||||
| (1) Accrual | ||||
| 3. Current decreased | ||||
| (1) Disposal | ||||
| (2) Other transfer-out | ||||
| 4. Ending balance |
SEMI-ANNUAL REPORT 2021
| IV. Book value | ||||
| 1. Ending book value | 46,360,497.13 | 46,360,497.13 | ||
| 2. Opening book value | 47,224,662.27 | 47,224,662.27 |
(2) Investment real estate measured by fair value
□ Applicable √Not applicable
(3) Investment real estate without property certification held
In RMB
| Item | Book value | Reason without property certification held |
Other noteNil
21. Fixed assets
In RMB
| Item | Ending balance | Opening balance |
| Fixed assets | 98,619,554.39 | 100,747,972.84 |
| Disposal of fixed assets | 92,857,471.69 | 92,857,471.69 |
| Total | 191,477,026.08 | 193,605,444.53 |
(1) Fixed asset
In RMB
| Item | House building | Machinery equipment | Means of transportation | Office equipment | Instrument equipment | Tool equipment | Mold equipment | Total |
| I. Original book value | ||||||||
| 1. Opening balance | 73,200,617.41 | 95,162,467.54 | 3,589,808.82 | 7,286,291.60 | 3,231,378.03 | 9,160,548.05 | 24,950,960.45 | 216,582,071.90 |
| 2. Current increased | 11,482,624.28 | 132,653.66 | 144,179.07 | 149,485.44 | 1,310,026.38 | 1,896,734.15 | 15,115,702.98 | |
| (1) Purchasing | 11,482,624.28 | 132,653.66 | 144,179.07 | 149,485.44 | 1,310,026.38 | 1,896,734.15 | 15,115,702.98 | |
| (2) Constructio |
SEMI-ANNUAL REPORT 2021
| n in process transfer-in | ||||||||
| (3) Increased by combination | ||||||||
| 3. Current decreased | 10,836,574.68 | 122,034.19 | 53,535.27 | 37,852.46 | 818,967.34 | 11,868,963.94 | ||
| (1) Disposal or scrapping | ||||||||
| Transfer to Zhengzhou branch | 10,836,574.68 | 122,034.19 | 53,535.27 | 37,852.46 | 818,967.34 | 11,868,963.94 | ||
| 4. Ending balance | 73,200,617.41 | 94,906,526.35 | 3,600,428.29 | 7,376,935.40 | 3,343,011.01 | 9,651,607.09 | 26,847,694.60 | 218,926,820.15 |
| II. Accumulative depreciation | ||||||||
| 1. Opening balance | 20,835,498.92 | 62,315,100.16 | 2,530,234.21 | 6,270,774.21 | 2,684,698.25 | 4,790,714.70 | 16,407,078.61 | 115,834,099.06 |
| 2. Current increased | 952,782.69 | 3,955,263.27 | 96,067.63 | 78,981.69 | 78,665.44 | 767,933.59 | 1,894,766.49 | 7,824,460.80 |
| (1) Accrual | 952,782.69 | 3,955,263.27 | 96,067.63 | 78,981.69 | 78,665.44 | 767,933.59 | 1,894,766.49 | 7,824,460.80 |
| 3. Current decreased | 2,194,672.60 | 44,847.64 | 29,287.01 | 9,781.57 | 170,714.49 | 2,449,303.31 | ||
| (1) Disposal or scrapping | ||||||||
| Transfer to Zhengzhou branch | 2,194,672.60 | 44,847.64 | 29,287.01 | 9,781.57 | 170,714.49 | 2,449,303.31 | ||
| 4. Ending | 21,788,281 | 64,075,690 | 2,581,454. | 6,320,468. | 2,753,582. | 5,387,933. | 18,301,845 | 121,209,25 |
SEMI-ANNUAL REPORT 2021
| balance | .61 | .83 | 20 | 89 | 12 | 80 | .10 | 6.55 |
| III. Depreciation reserves | ||||||||
| 1. Opening balance | ||||||||
| 2. Current increased | ||||||||
| (1) Accrual | ||||||||
| 3. Current decreased | ||||||||
| (1) Disposal or scrapping | ||||||||
| 4. Ending balance | ||||||||
| IV. Book value | ||||||||
| 1. Ending book value | 51,412,335.80 | 31,732,826.31 | 1,018,974.09 | 1,056,466.51 | 589,428.89 | 4,263,673.29 | 8,545,849.50 | 98,619,554.39 |
| 2. Opening book value | 52,365,118.49 | 32,847,367.38 | 1,059,574.61 | 1,015,517.39 | 546,679.78 | 4,369,833.35 | 8,543,881.84 | 100,747,972.84 |
(2) Temporarily idle fixed assets
In RMB
| Item | Original book value | Accumulated depreciation | Provision for impairment | Book value | Note |
| House building |
(3) Fixed assets leasing-out by operational lease
In RMB
| Item | Ending book value |
| House building |
SEMI-ANNUAL REPORT 2021
(4) Fixed assets without property certification held
In RMB
| Item | Book value | Reason without property certification held |
Other note
(5) Disposal of fixed assets
In RMB
| Item | Ending balance | Opening balance |
| Renovation of Gongming Huafa Electric Town | 92,857,471.69 | 92,857,471.69 |
| Total | 92,857,471.69 | 92,857,471.69 |
Other explanation
22. Construction in process
In RMB
| Item | Ending balance | Opening balance |
| Construction in process | 740,000.00 | 740,000.00 |
| Total | 740,000.00 | 740,000.00 |
(1) Construction in process
In RMB
| Item | Ending balance | Opening balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Huafa Building Reconstruction Project | 240,000.00 | 240,000.00 | 240,000.00 | 240,000.00 | ||
| Gongming Electronic City Reconstruction Project | 500,000.00 | 500,000.00 | 500,000.00 | 500,000.00 | ||
| Total | 740,000.00 | 740,000.00 | 740,000.00 | 740,000.00 | ||
SEMI-ANNUAL REPORT 2021
(2) Changes of major projects under construction
In RMB
| Item | Budget | Opening balance | Current increased | Fixed assets transfer-in in the Period | Other decreased in the Period | Ending balance | Proportion of project investment in budget | Progress | Accumulated amount of interest capitalization | including: interest capitalized amount of the year | Interest capitalization rate of the year | Source of funds |
(3) The provision for impairment of construction projects
In RMB
| Item | Current accrual amount | Accrual reason |
Other note
(4) Engineering materials
In RMB
| Item | Ending balance | Opening balance | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
Other note:
23. Productive biological assets
(1) Productive biological assets measured by cost
□ Applicable √Not applicable
(2) Productive biological assets measured by fair value
□ Applicable √Not applicable
24. Oil and gas assets
□ Applicable √Not applicable
SEMI-ANNUAL REPORT 2021
25. Right to use assets
In RMB
| Item | Total |
Other note:
26. Intangible assets
(1) Intangible assets
In RMB
| Item | Land use right | Patent right | Non-patented technology | Computer software | Total |
| I. Original book value | |||||
| 1. Opening balance | 55,415,814.36 | 3,113,396.41 | 58,529,210.77 | ||
| 2. Current increased | |||||
| (1) Purchasing | |||||
| (2) Internal R&D | |||||
| (3) Increased by combination | |||||
| 3. Current decreased | |||||
| (1) Disposal | |||||
| 4. Ending balance | |||||
| II. Accumulated amortization | |||||
| 1. Opening balance | 16,651,035.42 | 948,089.65 | 17,599,125.07 | ||
| 2. Current increased | |||||
| (1) Accrual | 662,350.40 | 150,518.73 | |||
| 3. Current |
SEMI-ANNUAL REPORT 2021
| decreased | |||||
| (1) Disposal | |||||
| 4. Ending balance | 17,313,385.82 | 1,098,608.38 | 18,413,988.90 | ||
| III. Depreciation reserves | |||||
| 1. Opening balance | 109,427.90 | 109,427.90 | |||
| 2. Current increased | |||||
| (1) Accrual | 62,388.75 | 62,388.75 | |||
| 3. Current decreased | |||||
| (1) Disposal | |||||
| 4. Ending balance | 171,816.65 | 171,816.65 | |||
| IV. Book value | |||||
| 1. Ending book value | 38,102,428.54 | 1,842,971.38 | 39,945,399.92 | ||
| 2. Opening book value | 38,764,778.94 | 2,055,878.86 | 40,820,657.80 |
The proportion of intangible assets form by internal R&D in total book value of intangible assets at period-end 0.00%
(2) The situation of land use rights that have not completed the ownership certificate
In RMB
| Item | Book value | Reason without property certification held |
Other note:
27. Development expenditure
In RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Ending balance | ||||
| Internal development expenditur | Other | Recognized as intangible | Transferred into current profit and | |||||
SEMI-ANNUAL REPORT 2021
| e | assets | loss | ||||||
| Total |
Other note
28. Goodwill
(1) Goodwill original book value
In RMB
| Invested name or matters forming goodwill | Opening balance | Increase in the current period | Decrease in the current period | Ending balance | ||
| Formed by business combination | Dispose | |||||
| Total | ||||||
(2) Goodwill provision for impairment
In RMB
| Invested name or matters forming goodwill | Opening balance | Increase in the current period | Decrease in the current period | Ending balance | ||
| Accrual | Dispose | |||||
| Total | ||||||
Information about the asset group or combination of asset groups where the goodwill is locatedExplain the process of goodwill impairment testing, key parameters (such as the growth rate of the forecast period when the presentvalue of future cash flows are expected, the growth rate of the stable period, the profit rate, the discount rate, the forecast period, etc.)and the confirmation method of the impairment loss of goodwill:
The impact of goodwill impairment testingOther note
29. Long-term deferred expenses
In RMB
| Item | Opening balance | Current increased | Amortized in Period | Other decreased | Ending balance |
| Amortization of cloud service fees | 77,445.31 | 660,284.00 | 114,127.72 | 623,601.59 |
SEMI-ANNUAL REPORT 2021
| Total | 77,445.31 | 660,284.00 | 114,127.72 | 623,601.59 |
Other explanationNew contract renewal this year
30. Deferred income tax assets/Deferred income tax liabilities
(1) Deferred income tax assets without offset
In RMB
| Item | Ending balance | Opening balance | ||
| Deductible temporary differences | Deferred income tax assets | Deductible temporary differences | Deferred income tax assets | |
| Provision for assets impairment | 28,458,252.74 | 6,761,085.38 | 28,458,252.74 | 6,761,085.38 |
| Accrual liability | 64,411.00 | 16,102.75 | 64,411.00 | 16,102.75 |
| Deferred income | 4,043,640.00 | 606,546.00 | 4,043,640.00 | 606,546.00 |
| Total | 32,566,303.74 | 7,383,734.13 | 32,566,303.74 | 7,383,734.13 |
(2) Deferred income tax liabilities that are not offset
In RMB
| Item | Ending balance | Opening balance | ||
| Taxable temporary differences | Deferred income tax liabilities | Taxable temporary differences | Deferred income tax liabilities | |
(3) Amount of deferred income tax asset and deferred income tax liability after trade-off
In RMB
| Item | Trade-off between the deferred income tax assets and liabilities | Ending balance of deferred income tax assets or liabilities after off-set | Trade-off between the deferred income tax assets and liabilities at period-begin | Opening balance of deferred income tax assets or liabilities after off-set |
| Deferred income tax assets | 7,383,734.13 | 7,383,734.13 |
(4) Deferred income tax asset without recognized
In RMB
| Item | Ending balance | Opening balance |
| Deductible temporary differences | 3,163,837.81 | 3,163,837.81 |
SEMI-ANNUAL REPORT 2021
| Deductible loss | 4,098,904.69 | 4,098,904.69 |
| Total | 7,262,742.50 | 7,262,742.50 |
(5) Deductible losses of un-recognized deferred income tax assets expired on the followed year
In RMB
| Year | Ending amount | Opening amount | Note |
| 2021 | |||
| 2022 | 742,401.79 | 742,401.79 | |
| 2023 | 404,207.57 | 404,207.57 | |
| 2024 | 1,318,067.59 | 1,318,067.59 | |
| 2025 | 1,634,227.74 | 1,634,227.74 | |
| Total | 4,098,904.69 | 4,098,904.69 | -- |
Other explanation:
31. Other non-current assets
In RMB
| Item | Ending balance | Opening balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Advance payment for equipment | 66,000.00 | 66,000.00 | 66,000.00 | 66,000.00 | ||
| Total | 66,000.00 | 66,000.00 | 66,000.00 | 66,000.00 | ||
Other explanation:
32. Short-term borrowings
(1) Category
In RMB
| Item | Ending balance | Opening balance |
| Loan in pledge | 51,089,579.00 | 12,527,808.00 |
| Total | 51,089,579.00 | 12,527,808.00 |
Explanation on category of short-term loans:
(2) Short-term loans that have been overdue and have not been repaid
The total amount of short-term loans that were overdue and not repaid at the end of the period was RMB 0.00, and the importantshort-term loans that were overdue and not repaid are as follows:
SEMI-ANNUAL REPORT 2021
In RMB
| Borrower | Ending balance | Borrowing rate | Overdue time | Overdue interest rate |
Other note:
33. Trading financial liabilities
In RMB
| Item | Ending balance | Opening balance |
| Including: | ||
| Including: |
Other note:
34. Derivative financial liabilities
In RMB
| Item | Ending balance | Opening balance |
Other note:
35. Notes payable
In RMB
| Category | Ending balance | Opening balance |
| Bank acceptance draft | 42,983,519.37 | 37,416,381.20 |
| Total | 42,983,519.37 | 37,416,381.20 |
Totally 0 Yuan due note payable are paid at period-end
36. Account payable
(1) Account payable
In RMB
| Item | Ending balance | Opening balance |
| Within one year | 112,291,685.77 | 85,862,573.31 |
| Over one year | 3,764,952.80 | 12,455,666.57 |
| Total | 116,056,638.57 | 98,318,239.88 |
(2) Major account payable over one year
In RMB
| Item | Ending balance | Reasons for non-payment or carry over |
SEMI-ANNUAL REPORT 2021
| Guangdong Yizumi Precision Injection Technology Co., Ltd. | 1,020,000.00 | Without settlement |
| Guangdong Jinhu Rili Polymer Material Co., Ltd. | 1,140,800.00 | Without settlement |
| Kunshan Zhongji Mould Co., Ltd. | 379,068.97 | Without settlement |
| Wuhan Jufutai Technology Co., Ltd. | 486,188.78 | Without settlement |
| Total | 3,026,057.75 | -- |
Other explanation:
37. Accounts received in advance
(1) Accounts received in advance
In RMB
| Item | Ending balance | Opening balance |
(2) Important accounts received in advance with account age over one year
In RMB
| Item | Ending balance | Reasons for outstanding or carry-over |
Other note:
38. Contract liabilities
In RMB
| Item | Ending balance | Opening balance |
| Sales received in advance | 79,195.32 | 79,195.32 |
| Lease received in advance | 686,360.65 | 207,945.34 |
| Total | 765,555.97 | 287,140.66 |
Amount and reasons for significant changes in book value during the reporting period
In RMB
| Item | Change Amount | Reason for change |
39. Wage payable
(1) Wage payable
In RMB
| Item | Opening balance | Increase during the period | Decrease during the period | Ending balance |
SEMI-ANNUAL REPORT 2021
| I. Short-term benefits | 5,704,816.53 | 31,508,630.69 | 33,359,279.99 | 3,854,167.23 |
| II. Post-employment benefits-defined contribution plans | 32,550.06 | 2,773,868.82 | 2,773,868.82 | 32,550.06 |
| III. Dismiss welfare | 434,715.43 | 434,715.43 | ||
| Total | 5,737,366.59 | 34,717,214.94 | 36,567,864.24 | 3,886,717.29 |
(2) Short-term benefits
In RMB
| Item | Opening balance | Increase during the period | Decrease during the period | Ending balance |
| 1. Wages , bonuses, allowances and subsidies | 4,709,654.92 | 26,915,030.12 | 28,779,016.40 | 2,845,668.64 |
| 2. Employee benefits | 754.00 | 2,531,354.04 | 2,518,017.06 | 14,090.98 |
| 3. Social insurance premium | 37,267.03 | 2,018,031.09 | 2,018,031.09 | 37,267.03 |
| Including: Medical insurance | 35,408.95 | 1,328,799.44 | 1,328,799.44 | 35,408.95 |
| Work injury insurance | 768.30 | 74,744.97 | 74,744.97 | 768.30 |
| Maternity insurance | 1,089.78 | 116,269.95 | 116,269.95 | 1,089.78 |
| 4. Housing accumulation fund | 24,310.00 | 44,215.44 | 44,215.44 | 24,310.00 |
| 5. Labor union expenditure and personnel education expense | 932,830.58 | 932,830.58 | ||
| Total | 5,704,816.53 | 31,508,630.69 | 33,359,279.99 | 3,854,167.23 |
(3) Defined contribution plans
In RMB
| Item | Opening balance | Increase during the period | Decrease during the period | Ending balance |
| 1. Basic endowment insurance | 31,361.59 | 2,657,598.87 | 2,657,598.87 | 31,361.59 |
| 2. Unemployment | 1,188.47 | 116,269.95 | 116,269.95 | 1,188.47 |
SEMI-ANNUAL REPORT 2021
| insurance | ||||
| Total | 32,550.06 | 2,773,868.82 | 2,773,868.82 | 32,550.06 |
Other explanation:
40. Taxes payable
In RMB
| Item | Ending balance | Opening balance |
| VAT | 4,823,733.87 | 2,980,992.11 |
| Corporate income tax | 5,545,879.97 | 6,558,810.68 |
| Individual income tax | 4,493.98 | 25,195.14 |
| Urban maintenance and construction tax | 532,508.80 | 1,902,436.52 |
| Property tax | 520,220.76 | 318,618.51 |
| Land use tax | 297,696.51 | 33,280.48 |
| Educational surtax | 229,248.99 | 816,098.15 |
| Local educational surtax | 122,702.85 | 418,611.03 |
| Dike fee | 1,665.00 | 1,665.00 |
| Stamp tax | 33,429.90 | 28,895.00 |
| Disposal fund of waste electrical products | 821,530.00 | 1,120,040.00 |
| Total | 12,933,110.63 | 14,204,642.62 |
Other explanation:
41. Other accounts payable
In RMB
| Item | Ending balance | Opening balance |
| Interest payable | 179,523.72 | 26,335.66 |
| Other payable | 36,894,932.73 | 27,581,945.35 |
| Total | 37,074,456.45 | 27,608,281.01 |
(1) Interest payable
In RMB
| Item | Ending balance | Opening balance |
| Interest of short-term loans payable | 179,523.72 | 26,335.66 |
| Total | 179,523.72 | 26,335.66 |
Significant overdue and unpaid interest:
SEMI-ANNUAL REPORT 2021
In RMB
| Loan unit | Overdue amount | Reason for overdue |
Other explanation:
Nil
(2) Dividend payable
In RMB
| Item | Ending balance | Opening balance |
Other note, including important dividends payable that have not been paid for more than 1 year, should disclose the reasons for thenon-payment:
Nil
(3) Other accounts payable
1) Other account payable by nature
In RMB
| Item | Ending balance | Opening balance |
| Margin & deposit | 14,026,279.22 | 11,523,316.67 |
| Lease management fee | 3,227,985.19 | |
| Intercourse funds | 20,346,239.47 | 5,546,586.51 |
| After sale and repairment | 1,027,879.01 | 1,454,341.68 |
| Energy consumption | 1,443,603.28 | |
| Shipping | 1,494,535.03 | 902,242.26 |
| Reserve fund | 1,346,345.00 | |
| Other | 2,137,524.76 | |
| Total | 36,894,932.73 | 27,581,945.35 |
2) Significant other account payable with over one year age
In RMB
| Item | Ending balance | Reasons for non-payment or carry over |
| Shenzhen SED Property Development Co., Ltd. | 1,853,393.35 | Without settlement |
| Shenzhen Huayongxing Environmental Protection Technology Co., Ltd. | 1,000,000.00 | Electricity fee deposit |
| Linghang Technology (Shenzhen) Co., Ltd | 656,345.28 | Without settlement |
SEMI-ANNUAL REPORT 2021
| Shenzhen Tongxing Electronics Co., Ltd. | 578,259.83 | Without settlement |
| Total | 4,087,998.46 | -- |
Other explanationNil
42. Liabilities held for sale
In RMB
| Item | Ending balance | Opening balance |
Other note:
43. Non-current liabilities due within one year
In RMB
| Item | Ending balance | Opening balance |
| Long-term loans due within one year | 12,000,000.00 | |
| Total | 12,000,000.00 |
Other explanation:
Nil
44. Other current liabilities
In RMB
| Item | Ending balance | Opening balance |
| Unterminated confirmation on note receivable | 211,799.13 | 18,309,336.77 |
| Pending sales tax | 13,636.04 | |
| Total | 211,799.13 | 18,322,972.81 |
Changes in short-term bonds payable:
In RMB
| Name of bond | Face value | Issue date | Bond maturity | Issue Amount | Opening balance | Current issue | Interest accrued at face value | Premium and discount amortization | Repayment in the current period | Ending balance |
Other explanation:
Nil
SEMI-ANNUAL REPORT 2021
45. Long-term loans
(1) Category
In RMB
| Item | Ending balance | Opening balance |
| Mortgage loan | 61,000,000.00 | 61,000,000.00 |
| Total | 61,000,000.00 | 61,000,000.00 |
Description of Long-term loans classification:
Other explanation, including interest rate range:
46. Bonds payable
(1) Bonds payable
In RMB
| Item | Ending balance | Opening balance |
(2) Changes in increase or decrease in bonds payable (excluding preferred stocks, perpetual bonds andother financial instruments classified as financial liabilities)
In RMB
| Name of bond | Face value | Issue date | Bond maturity | Issue Amount | Opening balance | Current issue | Interest accrued at face value | Premium and discount amortization | Repayment in the current period | Closing balance | |
| Total | -- | -- | -- |
(3) Description of the conditions and time for the conversion of convertible corporate bonds
(4) Description of other financial instruments classified as financial liabilities
Basic situation of other financial instruments such as preferred stocks and perpetual bonds issued at the end of the periodChanges in financial instruments such as preferred stocks and perpetual bonds issued at the end of the period
In RMB
| Financial instruments issued | Beginning of period | Increase in the current period | Decrease in the current period | Ending of period | ||||
| Amount | Book value | Amount | Book value | Amount | Book value | Amount | Book value | |
SEMI-ANNUAL REPORT 2021
Explanation of the basis for the classification of other financial instruments into financial liabilitiesOther note
47. Lease liabilities
In RMB
| Item | Ending balance | Opening balance |
Other note
48. Long-term payables
In RMB
| Item | Ending balance | Opening balance |
(1) List long-term payables according to the nature of the payment
In RMB
| Item | Ending balance | Opening balance |
Other note:
(2) Special accounts payable
In RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Ending balance | Cause of formation |
Other note:
49. Long-term Wages payable
(1) Long-term Wages payable
In RMB
| Item | Ending balance | Opening balance |
(2) Changes in defined benefit plans
Present value of defined benefit plan obligations:
In RMB
| Item | The Period | Last Period |
Plan assets:
In RMB
SEMI-ANNUAL REPORT 2021
| Item | The Period | Last Period |
Defined benefit plan net liabilities (net assets)
In RMB
| Item | The Period | Last Period |
Description of the content of the defined benefit plan and related risks, the impact on the company's future cash flow, time anduncertainty:
Explanation of major actuarial assumptions and sensitivity analysis results of defined benefit plans:
Other note:
50. Accrual liability
In RMB
| Item | Ending balance | Opening balance | Causes |
| Pending action | 64,411.00 | 64,411.00 | |
| Total | 64,411.00 | 64,411.00 | -- |
Other explanations, including important assumptions and estimation about important estimated liabilities:
51. Deferred income
In RMB
| Item | Opening balance | Increase during the period | Decrease during the period | Ending balance | Causes |
| Industrial transformation subsidy | 4,043,640.00 | 4,043,640.00 | |||
| Total | 4,043,640.00 | 4,043,640.00 |
Items involving Government subsidy:
In RMB
| Liability | Opening balance | New subsidy increased in the period | Amount reckoned in non-operating income in the period | Amount included in other income in the current period | Amount of cost and expense offset in the current period | Other change | Ending balance | Assets-related/Income-related |
| The transformation and upgrading of | 1,600,000.00 | 1,600,000.00 | Assets-related |
SEMI-ANNUAL REPORT 2021
| provincial traditional industries in 2018 | ||||||||
| Intelligent transformation in 2019 | 472,640.00 | 472,640.00 | Assets-related | |||||
| Industrial transformation and intelligence in 2020 | 1,971,000.00 | 1,971,000.00 | Assets-related | |||||
| Total | 4,043,640.00 | 4,043,640.00 |
Other explanation:
52. Other non-current liabilities
In RMB
| Item | Ending balance | Opening balance |
Other note:
53. Share capital
In RMB
| Opening balance | Changes in the Period (+,-) | Ending balance | |||||
| Issuing new shares | Bonus shares | Shares transfer from public reserves | Other | Subtotal | |||
| Total shares | 283,161,227.00 | 283,161,227.00 | |||||
Other explanation:
SEMI-ANNUAL REPORT 2021
54. Other equity instruments
(1) Basic information of other financial instruments such as preferred stocks and perpetual bonds issued atthe end of the period
(2) Changes in financial instruments such as preferred stocks and perpetual bonds issued at the end of theperiod
In RMB
| Financial instruments issued | Beginning of period | Increase in the current period | Decrease in the current period | Ending of period | ||||
| Amount | Book value | Amount | Book value | Amount | Book value | Amount | Book value | |
Other equity instruments' changes in the current period, explanations of the reasons for the changes, and the basis for relatedaccounting treatments:
Other note:
55. Capital public reserve
In RMB
| Item | Opening balance | Increase during the period | Decrease during the period | Ending balance |
| Capital premium (equity premium) | 96,501,903.02 | 96,501,903.02 | ||
| Other capital public reserve | 50,075,868.48 | 50,075,868.48 | ||
| Total | 146,577,771.50 | 146,577,771.50 |
Other explanation, including changes and reasons of changes:
56. Treasury stocks
In RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Ending balance |
Other note, including changes in the current period and explanations of the reasons for the changes:
57. Other comprehensive income
In RMB
| Item | Opening balance | The Period | Ending balanc | |||||
| Account before | Less: written in | Less: written | Less: income | Belong to parent | Belong to minority | |||
SEMI-ANNUAL REPORT 2021
| income tax in the year | other comprehensive income in previous period and carried forward to gains and losses in current period | in other comprehensive income in previous period and carried forward to retained earnings in current period | tax expense | company after tax | shareholders after tax | e |
Other explanation, including the adjustment on initial recognition for arbitrage items that transfer from the effective part of cash flowhedge profit/loss:
58. Reasonable reserve
In RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Ending balance |
Other explanation, including changes and reasons for changes:
59. Surplus public reserve
In RMB
| Item | Opening balance | Increase during the period | Decrease during the period | Ending balance |
| Statutory surplus reserves | 21,322,617.25 | 21,322,617.25 | ||
| Discretionary surplus reserve | 56,068,976.00 | 56,068,976.00 | ||
| Total | 77,391,593.25 | 77,391,593.25 |
Other explanation, including changes and reasons for changes:
Nil
60. Retained profit
In RMB
SEMI-ANNUAL REPORT 2021
| Item | Current period | Last period |
| Retained profit at the end of the previous period before adjustment | -170,881,854.46 | -177,712,041.86 |
| Retained profit at period-begin after adjustment | -170,881,854.46 | -177,712,041.86 |
| Add: net profit attributable to owners of the parent company | 6,989,362.48 | 3,165,597.55 |
| Retained profit at period-end | -163,892,491.98 | -174,546,444.31 |
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 retainedprofits 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 revenue and cost
In RMB
| Item | Current Period | Last Period | ||
| Revenue | Cost | Revenue | Cost | |
| Main business | 323,468,602.68 | 287,075,943.86 | 268,465,953.89 | 249,723,766.92 |
| Other business | 68,165,205.87 | 47,447,861.39 | 32,237,467.49 | 14,235,885.71 |
| Total | 391,633,808.55 | 334,523,805.25 | 300,703,421.38 | 263,959,652.63 |
Information relating to revenue:
In RMB
| Category | Branch 1 | Branch 2 | Total | |
| Including: | ||||
| Including: | ||||
| Including: | ||||
| Including: | ||||
| Including: | ||||
| Including: | ||||
| Including: |
Information relating to performance obligations:
NilInformation related to the transaction price apportioned to the remaining performance obligations:
The amount of income corresponding to the performance obligations that have been signed at the end of this reporting period but
SEMI-ANNUAL REPORT 2021
have not yet been fulfilled or have not done with fulfillment is 0.00 yuan, among them, yuan of revenue is expected to be recognizedin YEAR, yuan of revenue is expected to be recognized in YEAR, and yuan of revenue is expected to be recognized in YEAR.Other explanationNil
62. Tax and surcharges
In RMB
| Item | Current Period | Last Period |
| Urban maintenance and construction tax | 53,181.85 | 61,315.21 |
| Educational surtax | 23,402.05 | 27,476.42 |
| Property tax | 671,892.72 | 463,763.85 |
| Land use tax | 380,897.71 | 247,776.03 |
| Stamp tax | 283,562.58 | 187,803.80 |
| 15,425.01 | 15,920.74 | |
| Total | 1,428,361.92 | 1,004,056.05 |
Other explanation:
63. Sales expense
In RMB
| Item | Current Period | Last Period |
| Employee compensation | 1,940,607.71 | 1,544,285.76 |
| Freight | 4,858,694.34 | 3,120,326.41 |
| Commodity inspection fee | 894,098.13 | 512,749.42 |
| Customs fee | 204,766.55 | 30,322.36 |
| Commodity loss | 3,005,591.44 | 2,042,886.52 |
| Other | 3,190,859.79 | 1,849,508.92 |
| Total | 14,094,617.96 | 9,100,079.39 |
Other explanation:
Other is the after-sales service fee, low value and easy consumption, office expenses, etc.
64. Administrative expense
In RMB
| Item | The Period | Last Period |
| Salary | 6,033,625.10 | 4,290,516.96 |
| Depreciation | 1,259,331.29 | 1,094,911.50 |
SEMI-ANNUAL REPORT 2021
| Social security fee | 1,182,922.32 | 307,654.93 |
| Communication fee | 1,829,623.45 | 2,149,616.64 |
| Employee benefits | 1,205,669.37 | 975,973.80 |
| Travel expenses | 705,255.91 | 997,820.46 |
| Amortization of intangible assets | 863,491.01 | 911,802.71 |
| Transportation expenses | 220,781.91 | 728,044.47 |
| Consultation fee | 1,448,658.63 | 154,420.23 |
| Security costs | 460,539.40 | 826,723.53 |
| Repair cost | 3,428,358.44 | 1,186,397.36 |
| Audit fees | 714,487.27 | 703,883.50 |
| Office expenses | 1,075,155.32 | 534,213.91 |
| Communication fee | 61,127.20 | 66,922.51 |
| Amortization of low-value consumables | 6,196.30 | 204,519.80 |
| Securities Information Disclosure Fee | 46,361.00 | 247,008.75 |
| Employee education expenses | 12,689.53 | 123,799.49 |
| Utility bill | 284,729.15 | 194,204.27 |
| Rental fees | 521,230.00 | 496,532.52 |
| Environmental protection fee | 47,617.53 | 202,101.81 |
| Other fees | 1,272,457.11 | 685,293.51 |
| Total | 22,680,307.24 | 17,082,362.66 |
Other explanation:
65. R& D expenses
In RMB
| Item | Current Period | Last Period |
| Personnel labor costs | 3,424,760.68 | 1,801,065.20 |
| Depreciation and amortization expense | 437,009.74 | 499,584.18 |
| Other related expenses | 93,877.08 | 122,775.88 |
| Total | 3,955,647.50 | 2,423,425.26 |
Other explanation:
66. Financial expense
In RMB
| Item | Current Period | Last Period |
SEMI-ANNUAL REPORT 2021
| Interest costs | 3,731,443.17 | 4,755,143.83 |
| Less: Interest income | 203,041.26 | 529,170.31 |
| Exchange loss | 4,068,036.84 | 800,845.19 |
| Less: exchange gains | 2,461,568.22 | |
| Handing expense | 105,672.13 | 59,100.48 |
| Other | 1,160.00 | |
| Total | 5,241,702.86 | 3,484,228.81 |
Other explanation:
Inquiry letter courier fee
67. Other income
In RMB
| Sources | Current Period | Last Period |
| Three-agency handling fee | 3,553.35 | |
| Industrial Transformation Item | 348,540.00 | |
| Total | 3,553.35 | 348,540.00 |
68. Investment income
In RMB
| Item | Current Period | Last Period |
| Financial income | 149,767.58 | 66,780.40 |
| Total | 149,767.58 | 66,780.40 |
Other explanation:
69. Net exposure hedging income
In RMB
| Item | The Period | Last Period |
Other note:
70, Fair value change income
In RMB
| Sources of income from changes in Fair value | The Period | Last Period |
Other note:
SEMI-ANNUAL REPORT 2021
71. Credit impairment loss
In RMB
| Item | Current Period | Last Period |
Other explanation:
72. Losses on assets impairment
In RMB
| Item | Current Period | Last Period |
| II. Inventory falling price loss and impairment loss of contract performance cost | -1,350,000.00 | |
| Total | -1,350,000.00 |
Other explanation:
73. Asset disposal income
In RMB
| Source of asset disposal income | Current Period | Last Period |
| Dispose income of fixed assets | 0.00 | -99,867.53 |
| Total | 0.00 | -99,867.53 |
74. Non-operating income
In RMB
| Item | Current Period | Last Period | Amount included in current non-recurring profits or losses |
| Government subsidy | 256,000.00 | ||
| Disposal of assets | 2,786.47 | 2,786.47 | |
| Fine | 1,400.00 | 1,976.00 | 1,400.00 |
| Other | 16,412.57 | 43,224.00 | 16,412.57 |
| Total | 276,599.04 | 45,200.06 | 20,599.04 |
Government subsidy reckoned into current gains/losses:
In RMB
| Item | Issuing subject | Offering causes | Nature | Subsidy impact current gains/losse | The special subsidy (Y/N) | Amount in the Period | Amount in last period | Assets-related/Income-related |
SEMI-ANNUAL REPORT 2021
| s (Y/N) | ||||||||
| C | Award | Subsidies received for research and development, technological renewal and transformation, etc. | N | N | 256,000.00 | Income-related |
Other explanation:
75. Non-operating expenditure
In RMB
| Item | Current Period | Last Period | Amount included in current non-recurring profits or losses |
| Dealing with fixed assets | 22,804.31 | 22,804.31 | |
| Fine expenditure | 191,386.99 | 7,302.38 | 191,386.99 |
| Total | 215,202.92 | 7,302.38 | 215,202.92 |
Other explanation:
Nil
76. Income tax expense
(1) Statement of income tax expense
In RMB
| Item | Current Period | Last Period |
| Current income tax expense | 1,584,720.39 | 982,790.94 |
| Deferred income tax expense | -145,421.36 | |
| Total | 1,584,720.39 | 837,369.58 |
(2) Adjustment on accounting profit and income tax expenses
In RMB
| Item | Current Period |
SEMI-ANNUAL REPORT 2021
| Total profit | 8,574,082.87 |
| Income tax based on statutory/applicable rate | 2,490,947.85 |
| Impact by different tax rate applied by subsidies | 230,760.37 |
| Impact of deductible loss of un-recognized deferred income tax assets in the prior period of use | -145,421.36 |
| Income tax expense | 1,584,720.39 |
Other explanationNil
77. Other comprehensive income
See note
78. Annotation of cash flow statement
(1) Cash received with other operating activities concerned
In RMB
| Item | The Period | Last Period |
| Unit intercourse account | 15,891,476.38 | 423,061.34 |
| Collection management fee and utilities etc. | 870,339.55 | |
| Repayment from employees | 81,510.67 | 538.70 |
| Margin | 3,420.00 | 178,441.66 |
| Interest income | 30,133.34 | 80,873.96 |
| Government subsidy | 259,553.35 | 2,190,000.00 |
| Total | 16,266,093.74 | 3,743,255.21 |
Note of cash received with other operating activities concerned:
Nil
(2) Cash paid with other operating activities concerned
In RMB
| Item | The Period | Last Period |
| Unit intercourse account | 19,499,576.94 | 12,099,293.44 |
| Employee loan | 47,686.67 | 1,518,843.50 |
| Deposit and security deposit | 1,804,581.00 | 777,760.00 |
| Communication fee | 165,926.34 | 2,225,069.64 |
SEMI-ANNUAL REPORT 2021
| Utility bill | 4,662,103.00 | 195,404.27 |
| Travel expenses | 1,168,068.54 | 631,364.12 |
| Shipping fee | 2,706,778.65 | 2,885,107.75 |
| Transportation expenses | 708,540.18 | |
| Repair cost | 1,369,952.77 | 1,186,397.36 |
| Consultation fee | 1,400,000.00 | 700,000.00 |
| Security fee | 363,200.00 | |
| Financial institution fee | 54,316.41 | |
| Office expenses | 19,086.70 | 184,663.65 |
| Communication fee | 437,439.91 | 66,922.51 |
| Rental fees | 496,532.52 | |
| Other | 18,919,703.62 | 2,183,661.37 |
| Total | 52,200,904.14 | 26,277,076.72 |
Note of cash paid with other operating activities concerned:
(3) Cash received with other investment activities concerned
In RMB
| Item | Current Period | Last Period |
| Redemption of principal of financial products | 35,000,000.00 | |
| Total | 35,000,000.00 |
Note of cash received with other investment activities concerned:
(4) Cash paid related with investment activities
In RMB
| Item | Current Period | Last Period |
| Purchasing financial products | 35,000,000.00 | |
| Total | 35,000,000.00 |
Note of cash paid related with investment activities:
(5) Other cash received related to financing activities
In RMB
| Item | The Period | Last Period |
Description of other received cash related to financing activities:
SEMI-ANNUAL REPORT 2021
(6) Cash paid related with financing activities
In RMB
| Item | Current Period | Last Period |
Note of cash paid related with financing activities:
79. Supplementary information to statement of cash flow
(1) Supplementary information to statement of cash flow
In RMB
| Supplementary information | This Period | Last Period |
| 1. Net profit adjusted to cash flow of operation activities: | -- | -- |
| Net profit | 7,023,114.72 | 3,165,597.55 |
| Add: Assets impairment provision | ||
| Depreciation of fixed assets, consumption of oil assets and depreciation of productive biology assets | 5,855,066.65 | 6,364,464.64 |
| Depreciation of right-of-use assets | ||
| Amortization of intangible assets | 875,257.88 | 911,802.71 |
| Amortization of long-term deferred expenses | 114,127.72 | 116,167.92 |
| Loss from disposal of fixed assets, intangible assets and other long-term assets (gain is listed with “-”) | -156,701.09 | |
| Losses on scrapping of fixed assets (gain is listed with “-”) | ||
| Gain/loss of fair value changes (gain is listed with “-”) | ||
| Financial expenses (gain is listed with “-”) | 5,241,702.86 | 3,786,650.62 |
| Investment loss (gain is listed with “-”) | -149,767.58 | -66,780.40 |
| Decrease of deferred income tax asset ((increase is listed with “-”) | -145,421.36 | |
| Increase of deferred income tax liability (decrease is listed with “-”) |
SEMI-ANNUAL REPORT 2021
| Decrease of inventory (increase is listed with “-”) | -61,101,647.02 | -3,086,479.34 |
| Decrease of operating receivable accounts (increase is listed with “-”) | 97,224,785.91 | -15,138,062.21 |
| Increase of operating payable accounts (decrease is listed with “-”) | -76,901,010.73 | 25,448,973.20 |
| Other | ||
| Net cash flows arising from operating activities | -21,818,369.59 | 21,200,212.24 |
| 2. Material investment and financing not involved in cash flow | -- | -- |
| Conversion of debt into capital | ||
| Switching Company bonds due within one year | ||
| Financing lease of fixed assets | ||
| 3. Net change of cash and cash equivalents: | -- | -- |
| Balance of cash at period end | 59,612,186.22 | 21,812,967.80 |
| Less: Balance of cash equivalent at year-begin | 60,968,053.58 | 36,645,061.61 |
| Add: Balance at year-end of cash equivalents | ||
| Less: Balance at year-begin of cash equivalents | ||
| Net increase of cash and cash equivalents | -1,355,867.36 | -14,832,093.81 |
(2) Net cash payment for the acquisition of a subsidiary in the period
In RMB
| Amount | |
| Including: | -- |
| Including: | -- |
| Including: | -- |
Other note:
(3) Net cash received from the disposal of subsidiaries
In RMB
SEMI-ANNUAL REPORT 2021
| Amount | |
| Including: | -- |
| Including: | -- |
| Including: | -- |
Other note:
(4) Constitution of cash and cash equivalent
In RMB
| Item | Ending balance | Opening balance |
| I. Cash | 59,612,186.22 | 60,968,053.58 |
| Including: Cash on hand | 903.40 | 136,673.02 |
| Bank deposit available for payment at any time | 16,620,293.80 | 29,912,316.31 |
| Other currency funds available for payment at any time | 42,990,989.02 | |
| III. Balance of cash and cash equivalent at period-end | 59,612,186.22 | 60,968,053.58 |
Other explanation:
80. Note of the changes of owners’ equity
Explain the items and amount at period-end adjusted for “Other” at end of the last year:
Nil
81. Assets with ownership or use right restricted
In RMB
| Item | Ending book value | Limited reason |
| Money funds | 42,990,989.02 | Margin |
| Fixed assets | 12,375,571.51 | Collateral for borrowing |
| Intangible assets | 6,752,967.68 | Collateral for borrowing |
| Fixed assets liquidation | 92,857,471.69 | Court seizure |
| Investment real estate | 11,503,400.02 | Collateral for borrowing |
| Accounts receivable financing | 0.00 | Bill pledge |
| Total | 166,480,399.92 | -- |
Other explanation:
SEMI-ANNUAL REPORT 2021
82. Item of foreign currency
(1) Item of foreign currency
In RMB
| Item | Ending balance of foreign currency | Rate of conversion | Ending RMB balance converted |
| Monetary funds | -- | -- | |
| Including: USD | 1,346,535.80 | 6.4705 | 8,810,879.28 |
| Euro | |||
| HKD | |||
| Account receivable | -- | -- | |
| Including: USD | 5,192,627.92 | 6.4705 | 604,526.76 |
| Euro | |||
| HKD | |||
| Long-term loans | -- | -- | |
| Including: USD | |||
| Euro | |||
| HKD | |||
Other explanation:
(2) Explanation on foreign operational entity, including as for the major foreign operational entity,disclosed main operation place, book-keeping currency and basis for selection; if the book-keepingcurrency changed, explain reasons
□ Applicable √Not applicable
83. Hedging
According to the hedge classification, disclose the qualitative and quantitative information of hedging items, related hedging tools,and hedged risks:
84. Government subsidy
(1) Government subsidy
In RMB
SEMI-ANNUAL REPORT 2021
| Category | Amount | Item for presentation | Amount reckoned into current gains/losses |
(2) Government grants rebate
□ Applicable √Not applicable
Other explanation:
85. Other
NilVIII. Changes of consolidation scope
1. Enterprise combine not under the same control
(1) Enterprise combination under the same control in Period
In RMB
| Purchaser | Time point for equity obtained | Cost of equity obtained | Ratio of equity obtained | Acquired way Equity obtained way | Purchasing date | Standard to determine the purchasing date | Income of purchaser from purchasing date to period-end | Net profit of purchaser from purchasing date to period-end |
Other note:
(2) Combination cost and goodwill
In RMB
| Combination cost |
The method of determining the fair value of the merger cost, contingent consideration and there changes:
The main reasons for the formation of large amounts of goodwill:
Other explanation:
(3) Identifiable assets and liability on purchasing date under the purchaser
In RMB
| Fair value on purchasing date | Book value on purchasing date | |
Method for determining the fair value of identifiable assets and liabilities:
SEMI-ANNUAL REPORT 2021
The contingent liabilities of the acquiree assumed in the business combination:
Other explanation:
(4) Gains or losses arising from re-measured by fair value for the equity held before purchasing dateWhether it is a business combination realized by two or more transactions of exchange and a transaction of obtained control rights inthe Period or not
□ Yes √ No
(5) Notes relating to the purchase date or the end of the period in which the merger consideration or thefair value of the purchasee’s identifiable assets and liabilities cannot be reasonable determined
(6) Other explanations
2. Enterprise combine under the same control
(1) Enterprise combination under the same control in Period
In RMB
| Combined party | Percentage of equity acquired in enterprise combination | Constitute the basis for the enterprise combination under the same control | Combining date | Basis for determining the date of combination | Income of the combined party from the beginning of the period of combination to the date of combination | Net profit of the combined party from the beginning of the period of combination to the date of combination | Income of the combined party during the comparison period | Net profit of the combined party during the comparison period |
Other note:
(2) Consolidation cost
In RMB
| Consolidation cost |
Contingent explanation of the consideration and its changes:
Other note:
(3) Book value of the assets/liabilities from combined party at date of combination
In RMB
SEMI-ANNUAL REPORT 2021
| Combination date | At the end of the previous period | |
Contingent liabilities of the combined party assumed in the enterprise combination:
Other note:
3. Reverse purchase
Basic information of the transaction, the basis for the reverse purchase of the transaction, whether the assets and liabilities retained bythe listed company constitute a business and its basis, the determination of the merger cost, the amount of equity adjusted inaccordance with the equity transaction and its calculation:
4. Disposal of subsidiaries
Whether there is a single disposal of an investment in a subsidiary that resulted in a loss of control
□ Yes √ No
Whether there is a step-by-step disposal of investment in a subsidiary through multiple transactions and loss of control during theperiod
□ Yes √ No
5. Other reasons for consolidation range changed
Explain the reasons on consolidate scope changes (i.e. subsidiary newly established, subsidiary liquidation etc.) and relevantinformation:
6. Other
IX. Equity in other entity
1. Equity in subsidiary
(1) Constitute of enterprise group
| Subsidiary | Main operation place | Registration place | Business nature | Share-holding ratio | Acquired way | |
| Directly | Indirectly | |||||
| HUAFA Lease Company | Shenzhen | Shenzhen | Property management | 60.00% | New investment acquisition | |
| HUAFA Property Company | Shenzhen | Shenzhen | Property management | 100.00% | New investment acquisition | |
| Hengfa Technology | Wuhan | Wuhan | Production & sales | 100.00% | New investment | |
SEMI-ANNUAL REPORT 2021
| Company | acquisition | |||||
| HUAFA Hengtian Company | Shenzhen | Shenzhen | Property management | 100.00% | New investment acquisition | |
| HUAFA Hengtai Company | Shenzhen | Shenzhen | Property management | 100.00% | New investment acquisition |
Explanation on share-holding ratio in subsidiary different from ratio of voting right:
NilBasis for controlling the invested entity with half or below voting rights held and without controlling invested entity but with overhalf and over voting rights:
NilMajor structured entity included in consolidates statement:
NilBasis of termination of agent or consignor:
NilOther explanationNil
(2) Important non-wholly-owned subsidiary
In RMB
| Subsidiary | Share-holding ratio of minority | Gains/losses attributable to minority in the Period | Dividend announced to distribute for minority in the Period | Ending equity of minority |
Explanation on holding ratio different from the voting right ratio for minority shareholders:
Other note:
(3) Main finance of the important non-wholly-owned subsidiary
In RMB
| Subsidiary | Ending balance | Opening balance | ||||||||||
| Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | |
In RMB
| Subsidiary | The Period | Last Period | ||||||
| Operation Income | Net profit | Total comprehen | Cash flow from | Operation Income | Net profit | Total comprehen | Cash flow from | |
SEMI-ANNUAL REPORT 2021
| sive income | operation activity | sive income | operation activity |
Other note:
Nil
(4) Significant restrictions on the use of enterprise group assets and pay off debts of the enterprise groupNil
(5) Financial or other supporting offers to the structured entity included in consolidated financial statementrange
NilOther note:
Nil
2. Transaction that has owners’ equity shares changed in subsidiary but still with controlling rights
(1) Owners’ equity shares changed in subsidiary
(2) Impact on minority’s interest and owners’ equity attributable to parent company
In RMB
Other note
3. Equity in joint venture and associated enterprise
(1) Important joint venture and associated enterprise
| Joint venture or associated enterprise | Main operation place | Registered place | Business nature | Share-holding ratio | Accounting treatment on investment for joint venture and associated enterprise | |
| Directly | Indirectly | |||||
Holding shares ratio different from the voting right ratio:
Has major influence with less 20% voting rights hold, or has minor influence with over 20% (20% included) voting rights hold:
(2) Main financial information of the important joint venture
In RMB
| Ending balance /The Period | Opening balance /Last Period |
SEMI-ANNUAL REPORT 2021
Other note
(3) Main financial information of the important associated enterprise
In RMB
| Ending balance /The Period | Opening balance /Last Period | |
Other note
(4) Financial summary for non-important Joint venture and associated enterprise
In RMB
| Ending balance /The Period | Opening balance /Last Period | |
| Joint venture: | -- | -- |
| Amount based on share-holding ratio | -- | -- |
| Associated enterprise: | -- | -- |
| Amount based on share-holding ratio | -- | -- |
Other note
(5) Major limitation on capital transfer ability to the Company from joint venture or associated enterprise
(6) Excess loss occurred in joint venture or associated enterprise
In RMB
| Name of joint venture or associated enterprise | Cumulative unrecognized loss accumulated in the previous period | Unrecognized loss in the current period (or net profit shared in the current period) | Accumulated unrecognized loss at the end of the period |
Other note
(7) Unconfirmed commitment with joint venture investment concerned
(8) Intangible liability with joint venture or associated enterprise investment concerned
4. Major conduct joint operation
| Joint business name | Principal place of business | Registration | Business nature | Shareholding ratio/shares enjoyed | |
| Direct | Indirect | ||||
Explanation of the shareholding ratio or the share enjoyed in the joint operation is different from the voting rights ratio:
If a joint operation is a separate entity, the basis for classification as a joint operation:
SEMI-ANNUAL REPORT 2021
Other note
5. Structured body excluding in consolidate financial statement
Relevant explanations for structured entities not included in the scope of the consolidated financial statements:
6. Other
X. Risk related with financial instrumentXI. Disclosure of fair value
1. Ending fair value of the assets and liabilities measured by fair value
In RMB
| Item | Ending fair value | |||
| First-order | Second-order | Third-order | Total | |
| I. Sustaining measured by fair value | -- | -- | -- | -- |
| II. Non-persistent measure | -- | -- | -- | -- |
SEMI-ANNUAL REPORT 2021
2. Recognized basis for the market price sustaining and non-persistent measured by fair value onfirst-order
3. The qualitative and quantitative information for the valuation technique and critical parameter thatsustaining and non-persistent measured by fair value on second-order
4. The qualitative and quantitative information for the valuation technique and critical parameter thatsustaining and non-persistent measured by fair value on third-order
5. Continuous third-level fair value measurement items, adjustment information between the opening andclosing book value and sensitivity analysis of unobservable parameters
6. Continuous fair value measurement items, if there is a conversion between various levels in the currentperiod, the reasons for the conversion and the policy for determining the timing of the conversion
7. Changes in valuation technology during the current period and reasons for the changes
8. The fair value of financial assets and financial liabilities not measured by fair value
9. Other
XII. Related party and related party transactions
1. Parent company of the enterprise
| Parent company | Registration place | Business nature | Registered capital | Share-holding ratio on the enterprise for parent company | Voting right ratio on the enterprise |
| Wuhan Zhongheng New Science & Technology Industrial Group Co., Ltd | Wuhan | Production and sales, real estate development and sales, housing leasing and management | 138,000,000.00 | 42.13% | 42.13% |
Explanation on parent company of the enterpriseNilThe ultimate control of the enterprise is Li Zhongqiu.Other note:
Nil
2. Subsidiary of the Enterprise
Found more in VIII. Equity in other entity in the Note
SEMI-ANNUAL REPORT 2021
3. Joint venture and associated enterprise
Found more in NoteOther associated enterprise or joint ventures which has related transaction with the Company in the period or occurred previous:
| Name of joint venture or associated enterprise | Relationship with the company |
Other note
4. Other Related party
| Other Related party | Relationship with the Enterprise |
| Wuhan Zhongheng Huafa Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Wuhan Hengsheng Yutian Industrial Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Wuhan Hengsheng Photo-electricity Industry Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Hong Kong Yutian International Investment Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Wuhan New Oriental Real Estate Development Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Wuhan Zhongheng Property Management Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Wuhan Optical Valley Display System Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Wuhan Yutian Industrial Real Estate Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Wuhan Yutian Dongfang Property Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Wuhan Xiahua Zhongheng Electronics Co. Ltd. | Control by same controlling shareholder and ultimate controller |
| Wuhan Zhongheng Yutian Trading Co,, Ltd | Control by same controlling shareholder and ultimate controller |
| Wuhan Yutian Hongguang Real Estate Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Shenzhen Zhongheng Huayu Investment Holding Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Wuhan Yutian Investment Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Yutian International Co., Ltd. | Control by same controlling shareholder and ultimate |
SEMI-ANNUAL REPORT 2021
| controller | |
| Hong Kong Zhongheng Yutian Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Shenzhen Yutian Henghua Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Shenzhen Zhongheng Yongye Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Shenzhen Yutian Hengrui Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Wuhan Henglian Optoelectronics Co., Ltd. | Control by same controlling shareholder and ultimate controller |
Other noteNil
5. Related transaction
(1) Goods purchasing, labor service providing and receiving
Goods purchasing/labor service receiving
In RMB
| Related party | Content | Current Period | Trading limit approved | Whether over the approved limited or not (Y/N) | Last Period |
| Hong Kong Yutian International Investment Co., Ltd. | Purchase goods | 37,751,811.11 | 156,979,200.00 | N | 67,538,078.36 |
| Wuhan Hengsheng Photo-electricity Industry Co., Ltd. | Purchase goods | 60,509,427.57 | 130,816,000.00 | N | 60,232,724.51 |
Goods sold/labor service providing
In RMB
| Related party | Content | Current Period | Last Period |
| Hong Kong Yutian International Investment Co., Ltd. | Sales of goods | 62,100,265.79 | 59,074,589.93 |
| Wuhan Hengsheng Photo-electricity Industry | Sales of goods | 17,319,716.68 | 10,283,633.89 |
SEMI-ANNUAL REPORT 2021
Explanation on goods purchasing, labor service providing and receivingNil
(2) Related trusteeship management/contract & entrust management/ outsourcingThe company's entrusted management/contracting situation table:
In RMB
Co., Ltd.
The name ofthe entrustingparty /outsourcing
party
| The name of the entrusting party / outsourcing party | Name of contractor/contractor | Types of entrusted/contracted assets | Start date of entrusted/contracted start date | End date of entrust/contracting | Pricing basis for custody income/contracting income | Custody income/contracting income confirmed in the current period |
Description of related custody/contracting situationThe company's entrusted management / outsourcing situation table:
In RMB
| The name of the entrusting party / outsourcing party | Name of contractor/contractor | Entrusted/Outsourced Asset Type | Start date of commission/out of package | End date of entrustment/outsourcing | Custody fee/package fee pricing basis | Custody fee/package fee confirmed in the current period |
Explanation on related lease
(3) Related lease
As a lessor for the Company:
In RMB
| Lessee | Assets type | Lease income recognized in the Period | Lease income recognized at last Period |
As a tenant for the Company:
In RMB
| Lessor | Assets type | Rent costs recognized in the Period | Rent costs recognized at last Period |
Explanation on related lease
(4) Related guarantee
As the guarantor
In RMB
SEMI-ANNUAL REPORT 2021
| Secured party | Amount guarantee | Start | End | Completed or not (Y/N) |
| Hengfa Technology | 27,889,579.00 | April 20, 2018 | April 20, 2022 | N |
As the secured party
In RMB
| Guarantor | Amount guarantee | Start | End | Completed or not (Y/N) |
| Li Zhongqiu | 67,000,000.00 | July 01, 2019 | July 01, 2022 | N |
Explanation on related guaranteeNil
(5) Related party’s borrowed/lending funds
In RMB
| Related party | Loan amount | Start date | Maturity | Note |
| Borrowing | ||||
| Lending | ||||
(6) Related party’s assets transfer and debt reorganization
In RMB
| Related party | Related transaction content | The Period | Last Period |
(3) Remuneration of key manager
In RMB
| Item | The Period | Last Period |
(8) Other related transactions
6. Receivable/payable items of related parties
(1) Receivable
In RMB
| Item | Related party | Ending balance | Opening balance | ||
| Book balance | Bad debt provision | Book balance | Bad debt provision | ||
| Accounts receivable | Hong Kong Yutian International Investment Co., | 29,037,251.56 | 41,513,718.58 | ||
SEMI-ANNUAL REPORT 2021
| Ltd. | |||||
| Accounts receivable | Wuhan Hengsheng Photo-electricity Industry Co., Ltd. | 1,434,688.52 | 12,676.70 | ||
| Prepayments | Hong Kong Yutian International Investment Co., Ltd. | 27,025,766.19 | |||
| Total | 30,471,940.08 | 68,552,161.47 |
(2) Payable
In RMB
| Item | Related party | Closing book balance | Opening book balance |
| Account payable | Wuhan Hengsheng Photo-electricity Industry Co., Ltd. | 23,803,488.38 | 6,795,240.85 |
| Notes payable | Wuhan Hengsheng Photo-electricity Industry Co., Ltd. | ||
| Total | 23,803,488.38 | 6,795,240.85 |
7. Undertakings of related party
According to the claim request of the arbitration application of Shenzhen Vanke, Shen Huafa and Wuhan Zhongheng are required topay or bear jointly. The letter of Undertaking issued by Wuhan Zhongheng Group to Shenzhen Huafa will be fully borne by theWuhan Zhongheng Group if the arbitration is decided in favor of Vanke and the dispute arising from the contract leads to thearbitration losses.
8. Other
Nil
XIII. Share-based payment
1. Overall situation of share-based payment
□ Applicable √Not applicable
2. Share-based payment settled by equity
□ Applicable √Not applicable
SEMI-ANNUAL REPORT 2021
3. Share-based payment settled by cash
□ Applicable √Not applicable
4. Modification and termination of share-based payment
Nil
5. Other
XIV. Undertakings or contingency
1. Important undertakings
Important undertakings on balance sheet dateNil
2. Contingency
(1) Contingency on balance sheet date
Nil
(2) For the important contingency not necessary to disclosed by the Company, explained reasons
The Company has no important contingency that need to disclosed
3. Other
As of the date of this report, the company has no undisclosed commitments or contingencies that should be disclosed.
XV. Events after balance sheet date
1. Important non adjustment matters
In RMB
| Item | Content | Number of impacts on financial status and operating results | The reason why the impact number cannot be estimated |
2. Profit distribution
In RMB
SEMI-ANNUAL REPORT 2021
3. Sales return
4. Other events after balance sheet date
As of the date of this report, the company has no undisclosed post-balance sheet events that should be disclosed.XVI. Other important events
1. Previous accounting errors collection
(1) Retrospective restatement method
In RMB
| Correction of accounting errors | Processing program | Names of report items in each comparison period affected | Cumulative influence |
(2) Future applicable law
| Correction of accounting errors | Approval procedure | Reasons for adopting future applicable law |
2. Debt restructuring
3. Assets replacement
(1) Exchange of non-monetary assets
(2) Other asset replacement
4. Pension plan
5. Termination of operation
In RMB
| Item | Income | Expense | Total profit | Income tax expense | Net profit | Termination of operation profit attributable to owners of the parent company |
Other note
SEMI-ANNUAL REPORT 2021
6. Segment
(1) Recognition basis and accounting policy for reportable segment
(2) Financial information for reportable segment
In RMB
| Item | Offset of segment | Total |
(3) If the company has no reportable segments or is unable to disclose the total assets and liabilities of eachreportable segment, it should state the reasons
(4) Other explanations
7. Major transaction and events makes influence on investor’s decision
8. Other
1. Matters of adjudication of Southern International Arbitration Shen [2017] No. D376 from Southern ChinaInternational Economic & Trade Arbitration Commission
(1) Arbitration
In August 2015, Shenzhen Zhongheng Huafa Co., Ltd. (hereinafter referred to as “Shenzhen HUAFA”) andWuhan Zhongheng New Technology Industry Group Co., Ltd. (hereinafter referred to as “Wuhan Zhongheng”)signed the “Cooperation Agreement on Urban Renewal Project of Update Units at Huafa Industrial Park,Gongming Street, Guangming New District, Shenzhen”. As Shenzhen HUAFA and Wuhan Zhongheng planned tocooperate with Shenzhen Vanke Real Estate CO., Ltd. (hereinafter referred to as “Shenzhen Vanke”) on the Huafaurban renewal project (hereinafter referred to as “Huafa Renovation Project) at Gongming Street, GuangmingNew District, Shenzhen, both parties appointed that Shenzhen HUAFA entrusted Wuhan Zhongheng to representit in this cooperation, and established project company - Shenzhen Vanke Guangming Real Estate Co., Ltd.(hereinafter referred to as “Vanke Guangming”) as the subject of project implementation with Shenzhen Vanke;Vanke Guangming signed “Demolition Compensation Agreement” with Shenzhen HUAFA and WuhanZhongheng, and paid the compensation for demolition.On August 21, 2015, Shenzhen HUAFA, Wuhan Zhongheng and Shenzhen Vanke signed the “CooperativeOperation Contract of Renovation Project at Huafa Industrial Park, Gongming Street, Guangming NewDistrict”(hereinafter referred to as “Cooperative Operation Contract”), the contract refined and appointed thecooperation model and operating steps of both sides. And then Shenzhen HUAFA, Wuhan Zhongheng andShenzhen Vanke signed the “Agreement on the Housing Acquisition and Removal Compensation and Settlement”.After signing the above agreement, Shenzhen Vanke paid the cooperation price of 600 million Yuan to WuhanZhongheng through Vanke Guangming.In September 2016, Shenzhen Vanke filed an arbitration to South China International Economic and Trade
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Arbitration Commission (hereinafter referred to as “South China Arbitration”) as Shenzhen HUAFA and WuhanZhongheng violated the appointment of “Cooperative Operation Contract” and handled the “Confirmation ofSubject of Reconstruction Implementation” at an overdue time, and required Shenzhen HUAFA and WuhanZhongheng to pay liquidated damages and attorneys' fees of 464.60 million yuan.While filing the arbitration, Shenzhen Vanke also applied for property preservation of 400 million Yuan ofproperty under the name of Shenzhen Huafa and Wuhan Zhongheng to Shenzhen Intermediate People’s Court.According to the ruling of Shenzhen Intermediate People's Court and “Notification of Sealing up, Seizing andFreezing Assets” (The reference numbers are (2016) Yue 03 Cai Bao No. 51, (2016) Yue 03 Cai Bao No. 53), the27 house properties (Note: the property within the scope of Huafa renovation project) under the name of ShenzhenHUAFA and 116,489,894 shares (Note: of which 116,100,000 shares have been pledged) of Shenzhen HUAFAstock held by Wuhan Zhongheng were frozen.
(2) Progress of arbitration
On November 12, 2016, the arbitration court held a hearing on this case.In December 2016, Wuhan Zhongheng to Shenzhen HUAFA issued a “Commitment Letter” which included that ifthe arbitration (Note: the case) ruled in favor of Shenzhen Vanke, the loss of arbitration caused by the contractdisputes should be fully assumed by our company. In the above contingent losses, if the judicial decision ruledyour company to pay the compensation in advance, our company promised to pay your company in cash withinone month, if our company could not pay on time due to uncontrollable factors, our company would like to pay thecorresponding interest according to the benchmark interest rate of bank loans in the corresponding period.Because the plots in the renovation project placed in our company hadn’t been applied for transfer procedures andwere still under your company’s name (Note: based on the “Asset Replacement Contract” signed by WuhanZhongheng and Shenzhen HUAFA on April 29, 2009), therefore, there was no risk of compliance, at the same time,our company promised to give priority to paying the above compensation with the compensation for demolition ofrenovation project.On August 16, 2017, South China International Economic and Trade Arbitration Commission made the “ArbitralAward” SCIA [2017] D376, according to the arbitral award, the applicant and counterclaim respondent inarbitration case SCIA [2017] D376 were Shenzhen Vanke Real Estate Co., Ltd. (hereinafter referred to as“Applicant” and “Vanke”). The first respondent and the first applicant for counterclaim were Wuhan ZhonghengNew Science & Technology Industrial Group Co., Ltd (hereinafter referred to as “Wuhan Zhongheng” and “FirstRespondent”). The second respondent and the second applicant for counterclaim were Zhongheng Huafa. Theaward results were as follows:
① The first respondent and the second respondent pay liquidated damages to the applicant with a base number ofRMB 600 million, calculating by the annual interest rate of 36% from October 1, 2015 to November 11, 2016;
② The first respondent and the second respondent pay the lawyer fees of RMB 1.4 million to the applicant due tothe case;
③ The first respondent and the second respondent pay the property preservation fees of RMB 10,000 to theapplicant;
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④ The arbitration fees for this request and case was RMB 3,101,515.00, the first respondent and the secondrespondent should bear 70%, i.e. RMB 2,171,060.50, and the applicant should bear 30%, i.e. RMB 930,454.50.The applicant had already paid the arbitration fees in full amount for this request which could be used as thearbitration fees of this case and request and shall not be refunded. The first respondent and the second respondentshould directly pay RMB 2,171,060.50 to the applicant;The arbitration fee of counterclaim in this case was RMB 76,050 which was undertaken by the first respondentand the second respondent at their own expense. The first respondent and the second respondent paid thearbitration fees in full amount for this request which could be used as the arbitration fees of this case and requestand shall not be refunded;The actual expenses of the arbitrators in this case amounted to RMB 7,754.90, the first respondent and the secondrespondent assumed 70%, i.e. RMB 5,428.43, and the applicant assumed 30%, i.e. RMB 2,326.47; the aboveactual expenses of the arbitrators had been paid by the Commission, so the first respondent and the secondrespondent and the applicant should directly pay RMB 5,428.43 and RMB 2,326.47 respectively to theCommission;
⑤ Reject the applicant’s other arbitration requests;
⑥ Reject the arbitration counterclaims of the first respondent and the second respondent.In summary, Wuhan Zhongheng and Shenzhen Huafa should pay liquidated damages, interest, lawyer fees,property preservation fees, and arbitration fees for this request to Vanke and pay actual expenses of the arbitratorsin this case and pay the actual expenses incurred by the arbitrators in this case to South China InternationalEconomic and Trade Arbitration Commission.On February 7, 2018, the company and Wuhan Zhongheng Group applied to Shenzhen Intermediate People’sCourt to revoke the Ruling HNGZSC [2017] D376, the court made a judgment on August 16, 2018, rejecting thecompany’s request for revocation. The company and its controlling shareholder Wuhan Zhongheng Groupreceived the “Execution Notice of Shenzhen Intermediate People’s Court” ([2018] Yue03Zhi No. 1870), and theexecutor applied to the court for compulsory execution, the company was listed as dishonest person subject toexecution by Shenzhen Intermediate People’s Court. On December 13, 2019, the company announced that it hadbeen removed from the list of dishonest persons subject to execution by the Shenzhen Intermediate People’sCourt.The Company and Wuhan Zhongheng Group received an enforcement decision in 2020, terminate the executionprocess and wait for the conditions for continuation to be fulfilled before restarting.
(3) The response of the company’s management and the identification of the eventThe company engaged lawyers to make an independent investigation and judgment on the event, and issuedspecial legal opinion that the reasons of Wuhan Zhongheng resulted in a failure of a net handover, and WuhanZhongheng received the full amount of 600 million yuan paid by Vanke Guangming. Therefore, WuhanZhongheng should bear all responsibilities for faults in response to the breach of contract. Wuhan Zhonghengissued the Commitment Letter in December 2016, pledged that if the arbitration judged Vanke to win the case,Wuhan Zhongheng should bear all arbitration losses caused by the contract dispute; after the award came intoeffect, Wuhan Zhongheng issued the Confirmation Letter again on November 23, 2017 to divide the duty of
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performance of the award; the independent directors of the company issued independent opinions after carefulstudy and judgment that Wuhan Zhongheng should bear all liability for satisfaction on the Award HNGZSC [2017]D376.
2. Arbitration case of legal service contract dispute with V&T (Shenzhen) Law FirmOn March 12, 2018, the company received the arbitration notice No. SHEN DX20180087 from Shenzhen Courtof International Arbitration, V&T (Shenzhen) Law Firm requested to make a ruling that the Company and WuhanZhongheng pay the delinquent lawyer’s fees of RMB 19,402,000 and the liquidated damages (The liquidateddamages shall take five ten-thousandths of a day as a standard based on RMB 19,402,000 from August 24, 2017 tothe date of payment of the above-mentioned lawyer’s fees, and the liquidated damages up to February 12, 2018was RMB 1,678,273.00). The company should bear all the arbitration fees for this case.On November 5, 2019, the company received the arbitration award HNGZSC [2019] D618 from Shenzhen Courtof International Arbitration, ruling that the company and its controlling shareholder Wuhan Zhongheng NewScience & Technology Industrial Group Co., Ltd should pay Shenzhen V & T Law Firm the arrears of legal feesof RMB 19,402,000 and the liquidated damages.Guangdong Haibu Attorneys-at-Law engaged by the company made verification opinion on the legalresponsibility assumed for the performance of the arbitration result and believed that this case was caused by theVanke arbitration case No. SHEN DP20160334, and the net land was not handed over on time due to WuhanZhongheng, and Wuhan Zhongheng Heng received 600 million yuan paid by Vanke Guangming in full, so thecompany is not liable for compensation under the judgment of the Vanke case. The nature of the attorney fees ofV&T Law Firm is deduction of royalties. V&T Law Firm's deduction for the company is 0, and V&T Law Firm'sattorney fees paid by the company is 0. In addition, Wuhan Zhongheng Group has issued a "Letter ofCommitment" to Shenzhen Huafa in December 2016, if the arbitration decides that Vanke wins the lawsuit,Wuhan Zhongheng Group will bear the full amount of the arbitration losses caused by the contract disputes.Wuhan Zhongheng Group, as the beneficiary of the "Entrusted Agency Contract", shall bear all the paymentresponsibilities for the “Award” HNGZSC [2019] No. D618, and the company shall not be liable for the losses inthis case.On November 17, 2020, the court enforced the attorney fees that Wuhan Zhongheng Group should assume. As ajoint defendant, the company was forced to enforce partial payment of 1,564,767.46 yuan, Wuhan ZhonghengGroup returned this partial payment to the listed company on the 24th of that month.
3. Dispute with Shenzhen Zhongheng Semiconductor Co., Ltd. (formerly known as "Shenzhen Zhongheng HuafaTechnology Co., Ltd.") concerning land transfer
(1) Cause of the case
On April 29, 2009, the company signed an Asset Replacement Contract with Wuhan Zhongheng Group.According to the contract, the company would use the the land use rights of two plots of land located at HuafaRoad, Gongming Town, Bao’an District, Shenzhen, i.e. land parcel number A627-0005 (real estate registrationnumber 8000101219) and A627-0007 (real estate registration number 8000101218), which are worth 18.55million yuan, to increase capital to Shenzhen Zhongheng Semiconductor Co., Ltd. (former Zhongheng HuafaTechnology Co., Ltd., hereinafter referred to as "Zhongheng Semiconductor") and transfer ownership to
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Zhongheng Semiconductor, Wuhan Zhongheng Group replaced the company's 100% equity in ZhonghengSemiconductor with its 56% equity in Wuhan Hengfa Technology Co., Ltd. For the main content of theabove-mentioned Asset Replacement Contract, please refer to the Announcement on Related Transactions of AssetReplacement with Controlling Shareholders published by the company on Juchao Website dated April 30, 2009,with the announcement number 2009-17. After Wuhan Zhongheng Group fulfilled its obligations under the AssetReplacement Contract, the company transferred 100% of its equity in Zhongheng Semiconductor to WuhanZhongheng Group on December 21, 2009; the company also handed over the above two plots of land toZhongheng Semiconductor for possession, management, and use, but the land use right has not been transferred toZhongheng Semiconductor.
(2) Case progress
On April 17, 2020, the company received the "Notice of Response" (2020) Yue 03 Min Chu No. 17 and otherrelated materials delivered by the Shenzhen Intermediate People’s Court of Guangdong Province. ZhonghengSemiconductor sued the company and required the company and the third party (Wuhan Zhongheng Group) tocontinue to perform the contract, and transfer ownership of the above two plots of land and compensate foreconomic losses of 52 million yuan. The Shenzhen Intermediate People's Court has filed a case with the casenumber (2020) Yue 03 Min Chu No. 17.Since Zhongheng Semiconductor's main appeal is the transfer of land to its name, the company is reaching asettlement with Zhongheng Semiconductor. The company promises to actively cooperate with the land transfer.Zhongheng Semiconductor has issued a letter of commitment to the company promising to abandon the demandfor economic compensation. The Company received the first trial verdict of the case in May 2021. ZhonghengSemiconductor has appealed the decision to the Supreme People’s Court, and the first trial verdict is not yetentered into force.XVII. Principle notes of financial statements of parent company
1. Account receivable
(1) Category of account receivable
In RMB
| Category | Ending balance | Opening balance | ||||||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
| Amount | Proportion | Amount | Accrual ratio | Amount | Proportion | Amount | Accrual ratio | |||
| Account receivable with bad debt provision accrual on a single basis | 10,293,424.90 | 100.00% | 10,293,424.90 | 100.00% | 0.00 | 10,293,424.90 | 100.00% | 10,293,424.90 | 100.00% | 0.00 |
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| Including: | ||||||||||
| Including: | ||||||||||
| Total | 10,293,424.90 | 10,293,424.90 | 10,293,424.90 | 10,293,424.90 |
Accrual of bad debt provision on single basis: 10,293,424.90
In RMB
| Name | Ending balance | |||
| Book balance | Bad debt provision | Accrual ratio | Accrual causes | |
| Hong Kong Haowei Industrial Co., Ltd. | 1,870,887.18 | 1,870,887.18 | 100.00% | Uncollectible |
| TCL ACE ELECTRIC APPLIANCE (HUIZHOU) CO., LTD. | 1,325,431.75 | 1,325,431.75 | 100.00% | Uncollectible |
| Qingdao Haier Parts Procurement Co., Ltd. | 1,225,326.15 | 1,225,326.15 | 100.00% | Uncollectible |
| SKYWORTH Multimedia (Shenzhen) Co., Ltd. | 579,343.89 | 579,343.89 | 100.00% | Uncollectible |
| Shenzhen Huixin Video Technology Co., Ltd. | 381,168.96 | 381,168.96 | 100.00% | Uncollectible |
| Shenzhen Wandelai Digital Technology Co., Ltd. | 351,813.70 | 351,813.70 | 100.00% | Uncollectible |
| Shenzhen Dalong Electronic Co., Ltd. | 344,700.00 | 344,700.00 | 100.00% | Uncollectible |
| Shenzhen Keya Electronic Co., Ltd. | 332,337.76 | 332,337.76 | 100.00% | Uncollectible |
| Shenzhen Qunping Electronic Co., Ltd. | 304,542.95 | 304,542.95 | 100.00% | Uncollectible |
| China Galaxy Electronics (Hong Kong) Co., Ltd. | 288,261.17 | 288,261.17 | 100.00% | Uncollectible |
| Dongguan Weite Electronic Co., Ltd. | 274,399.80 | 274,399.80 | 100.00% | Uncollectible |
| Hong Kong New Century Electronics Co., Ltd. | 207,409.40 | 207,409.40 | 100.00% | Uncollectible |
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| Shenyang Beitai Electronic Co., Ltd. | 203,304.02 | 203,304.02 | 100.00% | Uncollectible |
| Beijing Xinfang Weiye Technology Co., Ltd. | 193,000.00 | 193,000.00 | 100.00% | Uncollectible |
| TCL Electronics (Hong Kong) Co., Ltd. | 145,087.14 | 145,087.14 | 100.00% | Uncollectible |
| Huizhou TCL Xinte Electronics Co., Ltd. | 142,707.14 | 142,707.14 | 100.00% | Uncollectible |
| Sky Worth – RGB Electronic Co., Ltd. | 133,485.83 | 133,485.83 | 100.00% | Uncollectible |
| Other | 1,990,217.45 | 1,990,217.45 | 100.00% | Uncollectible |
| Total | 10,293,424.29 | 10,293,424.29 | -- | -- |
Accrual of bad debt provision on single basis:
In RMB
| Name | Ending balance | |||
| Book balance | Bad debt provision | Accrual ratio | Accrual causes | |
Accrual of bad debt provision on portfolio:
In RMB
| Name | Ending balance | ||
| Book balance | Bad debt provision | Accrual ratio | |
Explanation on portfolio basis:
If the provision for bad debts of accounts receivable is made in accordance with the general model of expected credit losses, pleaserefer to the disclosure of other receivables to disclose related information about bad-debt provisions:
□ Applicable √Not applicable
By account age
In RMB
| Account age | Ending balance |
| Over 3 years | 10,293,424.90 |
| Over 5 years | 10,293,424.90 |
| Total | 10,293,424.90 |
(2) Bad debt provision accrual, collected or reversal in the period
Bad debt provision accrual in the period:
In RMB
| Category | Opening balance | Amount changed in the period | Ending balance | |||
| Accrual | Collected or | Written-off | Other | |||
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Including major amount bad debt provision that collected or reversal in the period:
In RMB
reversalName
| Name | Amount collected or reversal | Way of collection |
(3) Actual written-off accounts receivable in the current period
In RMB
| Item | Written-off amount |
Including the important accounts receivable written-off situation:
In RMB
| Name | Nature of accounts receivable | Written-off amount | Written-off reason | Written-off procedure performed | Whether the payment is generated by related party transactions |
Written-off description of accounts receivable:
Nil
(4) Top 5 account receivables collected by arrears party at ending balance
In RMB
| Company | Ending balance of account receivable | Proportion in total account receivables at year-end | Ending balance of bad debt provision |
| Hong Kong Haowei Industrial Co., Ltd. | 1,870,887.18 | 18.18% | 1,870,887.18 |
| TCL ACE ELECTRIC APPLIANCE (HUIZHOU) CO., LTD. | 1,325,431.75 | 12.88% | 1,325,431.75 |
| Qingdao Haier Parts Procurement Co., Ltd. | 1,225,326.15 | 11.90% | 1,225,326.15 |
| SKYWORTH Multimedia (Shenzhen) Co., Ltd. | 579,343.89 | 5.63% | 579,343.89 |
| Shenzhen Huixin Video Technology Co., Ltd. | 381,168.96 | 3.70% | 381,168.96 |
| Total | 5,382,157.93 | 52.29% |
(5) Account receivable derecognition due to financial assets transfer
Nil
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(6) Assets and liabilities resulted by account receivable transfer and continues involvementNilOther note:
Nil
2. Other account receivable
In RMB
| Item | Ending balance | Opening balance |
| Other account receivable | 87,948,585.04 | 93,922,057.92 |
| Total | 87,948,585.04 | 93,922,057.92 |
(1) Interest receivable
1) Category of interest receivable
In RMB
| Item | Ending balance | Opening balance |
2) Significant overdue interest
| Borrower | Ending balance | Overdue time | Overdue reason | Whether there is impairment and its judgment basis |
Other note:
3)Accrual of bad debt provision
□ Applicable √Not applicable
(2)Dividend receivable
1) Category of dividend receivable
In RMB
| Item (or invested unit) | Ending balance | Opening balance |
2) Important dividend receivable with account age over one year
In RMB
| Item (or invested unit) | Ending balance | Account age | Reasons for | Whether there is |
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| non-recovery | impairment and its judgment basis |
3) Accrual of bad debt provision
□ Applicable √Not applicable
Other note:
(3) Other account receivable
1) Other account receivable by nature
In RMB
| Nature | Ending book balance | Opening book balance |
| Margin & deposit | 4,427,575.45 | 304,608.00 |
| Borrow money | 2,419,063.12 | 1,869,073.12 |
| Intercourse funds | 70,565,408.13 | 107,488,541.28 |
| Rental receivable | 29,316,713.51 | 5,847,389.48 |
| Other | 37,294.00 | 168,162.09 |
| Less: Bad debt provision | -18,817,469.17 | -18,512,750.12 |
| Total | 87,948,585.04 | 97,165,023.85 |
2)Accrual of bad debt provision
In RMB
| Bad debt provision | Phase I | Phase II | Phase III | Total |
| Expected credit losses over next 12 months | Expected credit losses for the entire duration (without credit impairment occurred) | Expected credit losses for the entire duration (with credit impairment occurred) | ||
| Balance on1 Jan. 2021 | 111.75 | 18,817,357.42 | 18,817,469.17 | |
| Balance of 1 Jan. 2021 in the period | —— | —— | —— | —— |
| Balance on Dec. 31, 2021 | 111.75 | 18,817,357.42 | 18,817,469.17 |
Change of book balance of loss provision with amount has major changes in the period
□ Applicable √Not applicable
By account age
In RMB
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| Account age | Ending balance |
| Within one year (one year included) | 8,752,615.17 |
| 1-2 years | 79,196,078.82 |
| 2-3 years | 312,212.44 |
| Over 3 years | 18,505,147.78 |
| Over 5 years | 18,505,147.78 |
| Total | 106,766,054.21 |
3) Bad debt provision accrual, collected or reversal in the period
Bad debt provision accrual in the period:
In RMB
| Category | Opening balance | Amount changed in the period | Ending balance | |||
| Accrual | Collected or reversal | Written-off | Other | |||
Including the important amount collected or switches back in the period:
In RMB
| Name | Amount collected or switches back | Way of collection |
4) The actual written-off other receivables in the current period
In RMB
| Item | Written-off amount |
Including the important written-off situation of other receivables:
In RMB
| Name | Nature of other receivables | Written-off amount | Written-off reason | Written-off procedure performed | Whether the payment is generated by related party transactions |
Description of other receivables written-off:
5) Top 5 other receivables collected by arrears party at ending balance
In RMB
| Company | Nature | Ending balance | Account ages | Proportion in total other receivables at period-end | Ending balance of bad debt provision |
| Wuhan Hengfa | Intercourse funds | 82,263,990.66 | Within one year; | 77.00% |
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| Technology Co., Ltd. | 1-2 years | ||||
| Shenzhen Zhongheng HUAFA Property Co., Ltd | Intercourse funds | 8,588,951.51 | Within one year | 8.00% | |
| Shenzhen HUAFA Property Leasing Co., Ltd. | Rental fee receivable | 4,588,859.19 | Over 3 years | 4.00% | 4,588,859.19 |
| Portman | Intercourse funds | 4,021,734.22 | Over 3 years | 4.00% | 4,021,734.22 |
| Shenzhen Jifang Investment Co., Ltd | Rental fee receivable | 1,071,160.00 | Over 3 years | 1.00% | 1,071,160.00 |
| Total | -- | 100,534,695.58 | -- | 9,681,753.41 |
6) Receivables involving government subsidies
In RMB
| Name | Government subsidy item | Ending balance | Ending account age | Estimated time, amount and basis of receipt |
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:
3. Long-term equity investments
In RMB
| Item | Ending balance | Opening balance | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
| Investment for subsidiary | 186,618,400.00 | 186,618,400.00 | 187,218,400.00 | 600,000.00 | 186,618,400.00 | |
| Total | 186,618,400.00 | 186,618,400.00 | 187,218,400.00 | 600,000.00 | 186,618,400.00 | |
(1) Investment for subsidiary
In RMB
| The invested entity | Opening balance (Book value) | Changes in the period | Closing balance (Book value) | Closing balance of impairment | |||
| Additional | Reduce | Accrual of impairment | Other | ||||
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| investment | investment | provision | provision | ||||
| Shenzhen Huafa Property Leasing Co., Ltd. | |||||||
| Shenzhen Zhongheng HUAFA Property Co., Ltd | 1,000,000.00 | 1,000,000.00 | |||||
| Wuhan Hengfa Technology Co., Ltd. | 183,608,900.00 | 183,608,900.00 | |||||
| Shenzhen HUAFA Hengtian Co., Ltd. | 1,000,000.00 | 1,000,000.00 | |||||
| Shenzhen HUAFA Hengtai Co., Ltd. | 1,000,000.00 | 1,000,000.00 | |||||
| Ruth Co., Ltd. | 9,500.00 | 9,500.00 | |||||
| Total | 186,618,400.00 | 186,618,400.00 |
(2) Investment for associates and joint venture
In RMB
| Enterprise | Opening balance (book value) | Current changes (+, -) | Ending balance (book value) | Ending balance of depreciation reserves | |||||||
| Additional investment | Capital reduction | Investment gain/loss recognized under equity | Other comprehensive income adjustment | Other equity change | Cash dividend or profit announced to issued | Impairment accrual | Other | ||||
| I. Joint venture | |||||||||||
| II. Associated enterprise | |||||||||||
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(3) Other note
4. Operating revenue and cost
In RMB
| Item | The Period | Last Period | ||
| Revenue | Cost | Revenue | Cost | |
| Other business | 22,146,204.31 | 4,439,887.16 | 16,720,522.47 | 2,040,226.11 |
| Total | 22,146,204.31 | 4,439,887.16 | 16,720,522.47 | 2,040,226.11 |
Information relating to revenue:
In RMB
| Category | Branch 1 | Branch 2 | Total | |
| Including: | ||||
| Including: | ||||
| Including: | ||||
| Including: | ||||
| Including: | ||||
| Including: | ||||
| Including: |
Information relating to performance obligations:
NilInformation relating to the transaction price assigned to the remaining performance obligation:
At end of the period, the corresponding revenue amount for performance obligations that have been signed but have not beenperformed or have not been performed is 0.00 yuan, of which, yuan expected to recognized as revenue in the year.Other explanation:
Nil
5. Investment income
In RMB
| Item | The Period | Last Period |
6. Other
Nil
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XVIII. Supplementary Information
1. Current non-recurring gains/losses
√ Applicable □ Not applicable
In RMB
| Item | Amount | Note |
| Gain/loss of entrusted investment or assets management | 149,767.58 | |
| Other non-operating income and expenditure except for the aforementioned items | -194,603.88 | |
| Total | -44,836.30 | -- |
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for CompaniesOffering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according tothe lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering TheirSecurities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable √Not applicable
2. ROE and earnings per share
| Profits during report period | Weighted average ROE | Earnings per share | |
| Basic earnings per share (RMB/Share) | Diluted earnings per share (RMB/Share) | ||
| Net profits belong to common stock stockholders of the Company | 2.40% | 0.0248 | 0.0248 |
| Net profits belong to common stock stockholders of the Company after deducting nonrecurring gains and losses | 2.40% | 0.0286 | 0.0286 |
3. Difference of the accounting data under accounting rules in and out of China
(1) Difference of the net profit and net assets disclosed in financial report, under both IAS (InternationalAccounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
SEMI-ANNUAL REPORT 2021
(2) Difference of the net profit and net assets disclosed in financial report, under both foreign accountingrules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
(3) Explanation on data differences under the accounting standards in and out of China; as for thedifferences adjustment audited by foreign auditing institute, listed name of the institute
4. Other
Nil