Suzhou Gold Mantis Construction Decoration Co., Ltd.
Annual Report 2020
April 2021
Part I Important Notes, Table of Contents and DefinitionsThe Board of Directors (or the “Board”), the Supervisory Committee as well as thedirectors, supervisors and senior management of Suzhou Gold Mantis ConstructionDecoration Co., Ltd. (hereinafter referred to as the “Company”) hereby guarantee that thecontents of this Report are true, accurate and complete and free of any misrepresentations,misleading statements or material omissions, and collectively and individually accept legalresponsibility for such contents.Wang Hanlin, the Company’s legal representative, Cai Guohua, the Company’s ChiefFinancial Officer (head of the Company’s accounting affairs and accounting department)hereby guarantee that the financial statements carried in this Report are truthful, accurateand complete.
All the directors of the Company attended in person the board meeting for the approvalof this Report.Any plans, development strategies and other forward-looking statements mentioned inthis Report shall not be considered as commitments to investors. Investors and thoseconcerned shall be sufficiently aware of the risks and understand the differences betweenplans and forecasts and commitments.
The Company may be exposed to risks associated with prospects of the macro-economy,real estate control policies, market competition, doubtful accounts receivable, andmanagement capability in the expanding business. Therefore, investors are reminded toexercise caution when making investment decisions. For further information, please refer tocontents under the heading “Part IV Management Discussion and Analysis” herein.
The Board has approved a final dividend plan as follows: based on 2,683,358,689 shares,a cash dividend of RMB2 (tax inclusive) per 10 shares is planned to be distributed to all theshareholders, with no bonus issue from either profit or capital reserves.
This Report has been prepared in Chinese and translated into English. Should there beany discrepancies or misunderstandings between the two versions, the Chinese version shallprevail.
Table of Contents
Part I Important Notes, Table of Contents and Definitions ...... 2
Part II Corporate Information and Key Financial Information ...... 6
Part III Business Summary ...... 11
Part IV Management Discussion and Analysis ...... 19
Part V Significant Events ...... 37
Part VI Share Changes and Shareholder Information ...... 75
Part VII Preference Shares ...... 84
Part VIII Convertible Corporate Bonds ...... 85
Part IX Directors, Supervisors, Senior Management and Staff ...... 86
Part X Corporate Governance ...... 97
Part XI Corporate Bonds ...... 106
Part XII Financial Statements ...... 107
Part XIII Documents Available for Reference ...... 337
Definitions
| Term | Definition |
| The “Company”, or “Gold Mantis” | Suzhou Gold Mantis Construction Decoration Co., Ltd. |
| The “Articles of Association” | The Articles of Association of Suzhou Gold Mantis Construction Decoration Co., Ltd. |
| Meiruide | Suzhou Meiruide Construction Decoration Co., Ltd. |
| Gold Mantis Curtain Wall | Suzhou Gold Mantis Curtain Wall Co., Ltd. |
| Gold Mantis Landscape | Suzhou Gold Mantis Landscape Co., Ltd. |
| Gold Mantis Prefabricated Construction Technology | Gold Mantis Prefabricated Construction Technology (Suzhou) Co., Ltd. |
| Refined Decoration & Technology | Gold Mantis Refined Decoration & Technology (Suzhou) Co., Ltd. |
| Singapore Gold Mantis | Singapore Gold Mantis Pte. Ltd. |
| HBA | HBA Holdings Pte. Ltd. |
| Gold Mantis International | Gold Mantis (International) Construction Decoration Limited |
| Gold Mantis Art | Gold Mantis Art Co., Ltd. |
| Jijia Materials | Suzhou Jijia Materials Co., Ltd. |
| Gold Mantis Municipal | Gold Mantis Municipal Engineering Construction (Guizhou) Co., Ltd. |
| Gold Mantis East China | Gold Mantis East China Construction Decoration Co., Ltd. |
| Archi-Feeling Design | Archi-Feeling Design (SuZhou) Co., Ltd. |
| Jinpu No. 9 | Suzhou Jinpu No. 9 Cultural Industrial Development Co., Ltd. |
| Gold Mantis Home | Gold Mantis Home Decoration E-commerce (Suzhou) Co., Ltd. |
| Gold Mantis Supply Chain | Gold Mantis Supply Chain Management (Suzhou) Co., Ltd. |
| Construction Investment | Suzhou Gold Mantis Construction Investment Co., Ltd. |
| Jindejin Construction | Suzhou Industrial Park Jindejin Construction Engineering Co., Ltd. |
| Xi’an Jinchuang | Xi’an Hi-tech Zone Jinchuang Commercial Operation Management and Development Co., Ltd. |
| Shuicheng Ruitong | Shuicheng Ruitong Construction and Development Co., Ltd. |
| RSM | RSM China |
| CSRC | China Securities Regulatory Commission |
| CSRC Jiangsu | The Jiangsu branch of the China Securities Regulatory Commission |
| SZSE | Shenzhen Stock Exchange |
| The website of cninfo | http://www.cninfo.com.cn |
| The Four Major Securities Newspapers | China Securities Journal, Shanghai Securities News, Securities Times, and Securities Daily |
| RMB, RMB’0,000 | Expressed in the Chinese currency of Renminbi, expressed in tens of thousands of Renminbi |
Part II Corporate Information and Key Financial Information
I Corporate Information
| Stock name | Gold Mantis | Stock code | 002081 |
| Stock exchange | Shenzhen Stock Exchange | ||
| Company name in Chinese | 苏州金螳螂建筑装饰股份有限公司 | ||
| Abbr. | 金螳螂 | ||
| Company name in English (if any) | Suzhou Gold Mantis Construction Decoration Co., Ltd. | ||
| Abbr. (if any) | Gold Mantis | ||
| Legal representative | Wang Hanlin | ||
| Registered address | Private Industrial Zone of Suzhou Industrial Park | ||
| Zip code | 215000 | ||
| Office address | No. 888 West Ring Road, Suzhou City, Jiangsu Province, China | ||
| Zip code | 215004 | ||
| Company website | www.goldmantis.com | ||
| Email address | tzglb@goldmantis.com | ||
II Contact Information
| Board Secretary | Securities Representative | |
| Name | Ning Bo | Wang Yang |
| Office address | No. 888 West Ring Road, Suzhou City, Jiangsu Province, China | No. 888 West Ring Road, Suzhou City, Jiangsu Province, China |
| Tel. | 0512-68660622 | 0512-68660622 |
| Fax | 0512-68660622 | 0512-68660622 |
| Email address | tzglb@goldmantis.com | tzglb@goldmantis.com |
III Media for Information Disclosure and Place where this Report Is Lodged
| Newspapers designated by the Company for information disclosure | China Securities Journal, Securities Daily, Securities Times, and Shanghai Securities News |
| Website designated by the CSRC for publication of this Report | www.cninfo.com.cn |
| Place where this Report is lodged | Shenzhen Stock Exchange, and No. 888 West Ring Road, Suzhou City, |
IV Change to Company Registered Information
Jiangsu Province, ChinaOrganization code
| Organization code | 91320000608285139H (unified social credit code) |
| Changes to the principal activities of the Company since its listing (if any) | 1. According to the resolution of the Company's 1st Extraordinary General Meeting of 2008, the following business activities were added to the Company's business scope: "contracting of overseas construction decoration, and curtain wall engineering, as well as domestic projects put out to international tender; contracting of the survey, consulting, design and supervision of the aforesaid overseas projects; export of the equipment and materials required for the aforesaid overseas projects; dispatch of leased employees needed to implement the aforesaid overseas projects". The Company went through the relevant formalities for registration amendment at the Administration for Industry and Commerce of Jiangsu Province in accordance with the laws on 29 April 2008. 2. According to the resolution of the Company's 2nd Extraordinary General Meeting of 2008, the following business activities were deleted from the Company's business scope: "construction of housing with a height of no more than eight floors and a span of no more than 18 meters as well as structures with a height of no more than 30 meters; undertaking of building intelligent systems engineering (with qualification certificate)". Moreover, the following business activities were added to the Company's business scope: "Urban landscape design (with qualification certificate); design and construction of ancient-style landscaping (with qualification certificate); fire-fighting facility design (with qualification certificate)". The Company went through the relevant formalities for registration amendment at the Administration for Industry and Commerce of Jiangsu Province in accordance with the laws on 16 March 2009. 3. According to the resolution of the Company's 1st Extraordinary General Meeting of 2009, the following business activities were added to the Company's business scope: "steel structure engineering construction (with qualification certificate); light steel structure engineering design (with qualification certificate)". The Company went through the relevant formalities for registration amendment at the Administration for Industry and Commerce of Jiangsu Province in accordance with the laws on 30 June 2009. 4. According to the resolution of the Company's 2nd Extraordinary General Meeting of 2014, the following business activities were added to the Company's business scope: "design and construction of indoor and outdoor artworks for all kinds of buildings; design and construction of soft decoration accessories; design and construction of environmental way-finding systems". The Company went through the relevant formalities for registration amendment at the Administration for Industry and Commerce of Jiangsu Province in accordance with the laws on 24 December 2014. 5. According to the resolution of the Company's 2nd Extraordinary General Meeting of 2016, the following business activities were added to the Company's business scope: "architectural engineering procurement construction; undertaking of urban and road lighting projects; sale of building materials". The Company went through the relevant formalities for registration amendment at the Administration for Industry and Commerce of Jiangsu Province in accordance with the laws on 8 October 2016. 6. |
| According to the resolution of the Company's 2017 Annual General Meeting, the following business activities were added to the Company's business scope: "development and transfer of construction decoration design technologies". The Company went through the relevant formalities for registration amendment at the Administration for Industry and Commerce of Jiangsu Province in accordance with the laws on 1 June 2018. | |
| Every change of controlling shareholder since incorporation (if any) | Unchanged |
V Other Information
The independent auditor appointed by the Company:
| Name of the independent auditor | RSM China |
| Office address | Suite 922-926, 9/F, Wai Jing Mao Building, Tower 1, No. 22 Fuchengmen Wai Street, Xicheng District, Beijing, China |
| Accountants writing signatures | Song Wen, Hong Zhiguo, and Long Bing |
The independent sponsor appointed by the Company to exercise constant supervision over the Company in the Reporting Period:
□ Applicable √ Not applicable
The independent financial advisor appointed by the Company to exercise constant supervision over the Company in the ReportingPeriod:
□ Applicable √ Not applicable
VI Key Financial InformationIndicate whether there is any retrospectively restated datum in the table below.
□ Yes √ No
| 2020 | 2019 | 2020-over-2019 change (%) | 2018 | |
| Operating revenue (RMB) | 31,243,227,802.04 | 30,834,654,530.30 | 1.33% | 25,088,596,105.75 |
| Net profit attributable to the listed company’s shareholders (RMB) | 2,373,915,319.52 | 2,349,395,605.96 | 1.04% | 2,123,411,594.37 |
| Net profit attributable to the listed company’s shareholders before exceptional gains and losses (RMB) | 2,289,281,453.97 | 2,360,608,057.36 | -3.02% | 2,063,151,229.61 |
| Net cash generated from/used in operating activities (RMB) | 1,777,115,242.16 | 1,755,219,982.71 | 1.25% | 1,649,422,128.02 |
| Basic earnings per share (RMB/share) | 0.88 | 0.88 | 0.00% | 0.80 |
| Diluted earnings per share (RMB/share) | 0.89 | 0.88 | 1.14% | 0.79 |
| Weighted average return on equity | 14.83% | 16.55% | -1.72% | 17.16% |
| (%) | ||||
| 31 December 2020 | 31 December 2019 | Change of 31 December 2020 over 31 December 2019 (%) | 31 December 2018 | |
| Total assets (RMB) | 45,003,313,428.27 | 39,473,391,654.97 | 14.01% | 33,303,504,011.86 |
| Equity attributable to the listed company’s shareholders (RMB) | 17,008,652,023.81 | 15,156,092,842.89 | 12.22% | 13,233,225,823.64 |
Indicate whether the lower of the net profit attributable to the listed company’s shareholders before and after exceptional gains andlosses was negative for the last three accounting years, and the latest independent auditor’s report indicated that there was uncertaintyabout the Company’s ability to continue as a going concern.
□ Yes √ No
Indicate whether the lower of the net profit attributable to the listed company’s shareholders before and after exceptional gains andlosses was negative.
□ Yes √ No
VII Accounting Data Differences under China’s Accounting Standards for BusinessEnterprises (CAS) and International Financial Reporting Standards (IFRS) and ForeignAccounting Standards
1. Net Profit and Equity under CAS and IFRS
□ Applicable √ Not applicable
No difference for the Reporting Period.
2. Net Profit and Equity under CAS and Foreign Accounting Standards
□ Applicable √ Not applicable
No difference for the Reporting Period.VIII Key Financial Information by Quarter
Unit: RMB
| Q1 | Q2 | Q3 | Q4 | |
| Operating revenue | 4,320,876,652.08 | 8,893,818,980.65 | 8,853,108,445.37 | 9,175,423,723.94 |
| Net profit attributable to the listed company’s shareholders | 334,951,682.26 | 671,096,020.63 | 707,490,182.55 | 660,377,434.08 |
| Net profit attributable to the listed company’s shareholders before exceptional gains and losses | 326,773,637.47 | 642,556,879.91 | 699,156,033.38 | 620,794,903.21 |
| Net cash generated from/used in | -1,880,564,984.49 | 1,370,506,956.02 | -156,900,979.34 | 2,444,074,249.97 |
Indicate whether any of the quarterly financial data in the table above or their summations differs materially from what have beendisclosed in the Company’s quarterly or interim reports.
□ Yes √ No
IX Exceptional Gains and Losses
√ Applicable □ Not applicable
Unit: RMB
operating activitiesItem
| Item | 2020 | 2019 | 2018 | Note |
| Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) | 16,701,006.66 | -26,506,540.38 | -2,434,916.72 | |
| Government grants through profit or loss (exclusive of government grants given in the Company’s ordinary course of business at fixed quotas or amounts as per the government’s uniform standards) | 54,243,752.72 | 19,660,084.94 | 20,910,821.56 | |
| Capital occupation charges on non-financial enterprises that are recognized in profit or loss | 1,428,722.80 | 1,907,117.77 | ||
| Gain or loss on assets entrusted to other entities for investment or management | 40,843,523.94 | 39,009,978.18 | ||
| Gain or loss on fair-value changes on held-for-trading and derivative financial assets and liabilities & income from disposal of held-for-trading and derivative financial assets and liabilities and other debt investments (exclusive of the effective portion of hedges that arise in the Company’s ordinary course of business) | 35,346,523.09 | -59,789,345.26 | ||
| Reversed portions of impairment allowances for receivables and contract assets which are tested individually for impairment | 3,356,920.55 | 15,585,608.47 | ||
| Non-operating income and expense other than the above | -3,385,100.86 | 1,010,129.80 | 349,977.29 | |
| Less: Income tax effects | 19,092,692.94 | -7,656,454.79 | 12,924,997.05 | |
| Non-controlling interests effects (net of tax) | 3,965,266.47 | -4,006,123.00 | 236,106.97 | |
| Total | 84,633,865.55 | -11,212,451.40 | 60,260,364.76 | -- |
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the ExplanatoryAnnouncement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/LossItems:
□ Applicable √ Not applicable
No such cases for the Reporting Period.
Part III Business SummaryI Principal Activities of the Company in the Reporting Period
The Company is subject to the Guide No. 6 of the Shenzhen Stock Exchange on Industry-Specific Information Disclosure—ListedCompanies Engaged in Construction Decoration.
(I) Core Business of the CompanyThe Company is a comprehensive and professional construction decoration group with interior decoration as the core business,which also provides curtain wall engineering, landscaping, soft decoration, furnishing, and mechanical and electrical equipmentinstallation. Projects undertaken by the Company include public construction decoration and residential decoration, covering variousbusiness forms such as hotel decoration, cultural, sports and exhibition construction decoration, commercial construction decoration,transport infrastructure decoration, and residential decoration. The Company possesses the Construction Engineering Contractor(Class One), the Construction Decoration Engineering Professional Contractor (Class One), and the Construction DecorationEngineering Design (Class A), among other qualification certificates. With the qualifications and capabilities to carry out variousconstruction decoration projects, the Company is one of the construction decoration providers with the highest qualification levelsand the most qualification types. Its design and construction projects are generally obtained through bidding and bid invitation.During the Reporting Period, there were no significant changes in the Company's core business.(II) Development Overview of the Industry
1. Main Features of the Industry
The construction decoration industry in which the Company operates is an important part of China's national economicdevelopment. According to the different nature of building use, the construction decoration industry is divided into publicconstruction decoration and residential decoration. Under the trend of consumption upgrade, the construction decoration industry hasthe characteristic of repeated implementation. Each building needs to be decorated and furnished multiple times during the entire lifecycle from the completion of the main structure to the end of its service life. Therefore, the construction decoration industry featuresdemand sustainability.
2. Development Status of the Industry
In 2020, the construction decoration industry started low but later grew better. In H1, affected by the COVID-19 pandemic,business activities were greatly restricted. With the domestic economic resurgence in H2, investment in fixed assets rose slowly, andthe industry showed a momentum of rapid recovery. In respect of specific business segments, the number of new-type people's
livelihood projects such as medical care, elderly care, culture and sports, and transport grew rapidly; hotels, tourism and otherconsumption upgrade projects picked up slowly; traditional projects remained stable. At the same time, as large-scale andcomprehensive projects increased, the engineering procurement construction (EPC) model of decoration projects was graduallyrecognized by the market. Leading enterprises would usher in new development opportunities.
3. Competitive Landscape and Development Trend of the Industry
In 2020, the domestic construction decoration market showed more obvious differentiation under the impact of the pandemicand the intensification of internal competition. Specifically, market shares of the industry's top companies kept expanding, their cashflow remained healthy, and they continued to develop new business and new technologies; in the face of significantly greatercompetitive pressure, development speeds of mid-market companies slowed down; small companies in the industry were phased outof the market due to business shrinking and capital chain tightness. Therefore, the decoration industry is currently in a stage ofaccelerated transition from a decentralized market to a centralized market. After a long period of sufficient market competition,industry concentration has begun to increase dramatically. The market shares of leading companies will continue to rise in the future.
4. Position of the Company in the Industries in which the Company Operates
Founded in 1993, the Company is headquartered in Suzhou, China. It is a comprehensive construction decoration contractor thatis mainly engaged in the design and construction of construction decorations. With full-industry-chain design and constructionservice capacities on interior decoration, curtain wall engineering, landscaping, soft decoration, furnishing, and mechanical andelectrical equipment installation, the Company is a leader in the green, environmentally friendly and healthy public and homedecoration industry, as well as a national high-tech enterprise.
The Company is the first listed company in China's construction decoration industry. Its stock name is "Gold Mantis" and itsstock code is "002081". The Company has maintained its No. 1 position in "The Enterprises of China's Building Decoration IndustryTop One Hundred" for successive years and has won the "Luban Prize" 115 times and the "China Construction EngineeringDecoration Award" 438 times accumulatively. It was once rated among "Asia's Fab 50" by the Forbes magazine of the United States,selected as one of the "China Business Top 100", conferred the "Golden Round Table: Value Creation Award for Board of Directors",given the "Quanjing Investor Relations Gold Award (2020)", and shortlisted for the "ENR Top 60 Chinese Design Firms", in additionto receiving the "Most Influential Brand Organization in China's Architectural Decoration Industry", the "National ExcellentConstruction Enterprise", the "Excellent Decoration Enterprise in Jiangsu Province" and many other honors. Furthermore, due to theCompany's remarkable achievements and development results in standardized design, industrialized production, prefabricatedconstruction, integrated decoration, information-based management and intelligent application, the Company has become one of thefirst to be recognized as a national "prefabricated construction industrial base" by the General Office of the Ministry of Housing and
Urban-Rural Development of the People's Republic of China.
Meiruide, a subsidiary of the Company, has earned a spot in "The Enterprises of China's Building Decoration Industry Top OneHundred" for many consecutive years. It has won the "Luban Prize" six times, the "China Construction Engineering DecorationAward" 42 times and the "Tien-yow Jeme Prize" two times. Haimen People's Hospital, Suzhou Rail Transit (Line 1, Line 2 and Line
4), Longfor Times Paradise Walk, Donghu Digital Town, Banyan Tree Jiuzhaigou and Suzhou Modern Media Plaza are all itsrepresentative works.
Gold Mantis Curtain Wall was recognized as a "National Excellent Enterprise in Curtain Wall Building Industry" and an"Excellent Decoration Enterprise in Jiangsu Province". It has won the "Luban Prize" six times and the "China ConstructionEngineering Decoration Award" 21 times. Its key technology innovation and application of the ultra-long special-shaped gridstructure "Wings of Future" at Suzhou Center Mall received the "China Award for Science and Technology in Construction (FirstPrize)" given by the Ministry of Housing and Urban-Rural Development; the Gate of the Orient and InterContinental ShanghaiWonderland took the "Tien-yow Jeme Civil Engineering Prize" awarded by the China Civil Engineering Society.
Gold Mantis Landscape was named one of the "National Top 50 Urban Landscaping Enterprises" and clinched the title of"Excellent Decoration Enterprise in Jiangsu Province". It has won the "Luban Prize" one time, the "National Construction DecorationIndustry Science and Technology Demonstration Project Award" six times, the "National Excellent Landscaping Project Award"seven times and the "National Science and Technology Innovation Achievement Award" 17 times. Its representative works includeDatang Everbright City in Xi'an, Haohe Scenic Area in Nantong of Jiangsu Province, Nanhu Wetland Park in Huaibei of AnhuiProvince, south bank greening of Hebi Qihe River demonstration zone in Henan Province, and Weng'an wetland park design andconstruction integration in Guizhou Province.
HBA has been consecutively rated as "No. 1 in the hotel design industry" by Interior Design for years. So far, HBA has receivedmore than 500 top awards in the design industry, including the Gold Key Awards, the Hospitality Design Awards, the PerspectiveMagazine Awards, the Boutique Design Awards and the European Hotel Design Awards. Its works are spread all over the world.Edgewood Tahoe Resort, Hyatt Regency Dubai, InterContinental Hotel London Park Lane, Mandarin Oriental Beijing, FairmontMaldives, Sirru Fen Fushi, Le Méridien Zhongshan, Artyzen Sifang Nanjing Recreation Center, Park Hyatt Suzhou and many otherHBA projects of different sizes around the world all have ingenious design styles.
(III) Operation Model of the Company
The Company's operation model was independent undertaking of business, independent organization of design or/andconstruction. During the Reporting Period, there were no significant changes in the Company's operation model. The Company wasan excellent decoration enterprise in Jiangsu Province. It attached importance to quality management. In particular, the Company has
passed the integrated certification of the ISO 9001 Quality Management System, the ISO 14001 Environmental Management Systemand the ISO 45001 Occupational Health and Safety Management System, developed quality control standards, quality controlmeasures and product quality dispute resolution schemes, and implemented strict quality control and supervision on each process ofdesign and construction to create an excellent quality management system.Design Business Flow of the Company
Information acquisitionDesign projectestablishment
Design projectestablishmentContract signing
Contract signingContract implementation
Contract implementationConceptual design
| Conceptual design | Schematic design | Design development | Construction documents | On-site service |
Completion and acceptanceDelivery to ownersSummarization forimprovement
Construction Business Flow of the Company
Business trackingAnalysis and review
Analysis and reviewGive up?
Give up?
Give up
Give upBidding projectestablishment
Bidding projectestablishmentBidding phase
Bidding phaseUnsuccessful(summarization and review)
Unsuccessful(summarization and review)Successful (contract
presentation)
Successful (contract
presentation)Project team formation
Project team formationPreliminary planning
Preliminary planning
Design deepening
| Design deepening | Schedule planning |
| Quality planning | Safe and civilized construction planning |
All-personnelsummarization
Cost pre-control
Cost pre-control
Construction phase
Construction phase
Personnelmanagement
| Progress control | Personnel management | Quality control | Safe and civilized construction | Fund control | Cost control | Data control |
| Settlement and submission for review | After-sales service |
(IV) During the Reporting Period, the Company had no major project quality problems.
II Significant Changes in Major Assets
1. Significant Changes in Major Assets
| Major assets | Main reason for significant changes |
| Equity assets | No significant change |
| Fixed assets | No significant change |
| Intangible assets | No significant change |
| Construction in progress | No significant change |
2. Major Assets Overseas
□ Applicable √ Not applicable
III Core Competitiveness AnalysisThe Company is subject to the Guide No. 6 of the Shenzhen Stock Exchange on Industry-Specific Information Disclosure—ListedCompanies Engaged in Construction Decoration.
(1) Brand Strengths
The Company attached great importance to product quality and customer service. Accordingly, it has adopted a businessphilosophy where quality was cherished as the life of the Company and customers were put at the center of everything the Companydoes. After years of hard work dedicated to its original aspirations, Gold Mantis has formed its own strong brand strengths andmarket reputation. The Company has maintained its No. 1 position in "The Enterprises of China's Building Decoration Industry TopOne Hundred" for successive years and has won many honors including the "Luban Prize" 115 times and the "China ConstructionEngineering Decoration Award" 438 times accumulatively. It continued to be the enterprise that has received the most of these twoawards in China's construction decoration industry. Furthermore, due to the Company's remarkable achievements and developmentresults in standardized design, industrialized production, prefabricated construction, integrated decoration, information-basedmanagement and intelligent application, the Company has become one of the first to be recognized as a national "prefabricatedconstruction industrial base" by the General Office of the Ministry of Housing and Urban-Rural Development of the People'sRepublic of China. Gold Mantis has grown to be a benchmark brand in China's construction decoration industry.
(2) Design Strengths
Design is the core of construction decoration. The Company had the world's largest team of interior designers. It has also
established a professional design platform as a support system and leveraged its comprehensive service advantages to formabsolutely leading design expertise and professional knowledge in the design of high-end hotel office buildings, cultural and sportsvenues, cultural landmarks, hospitals, etc., thereby receiving high praise from the owners. The Company's subsidiary HBA was acompany that focused on the interior design of hotels. It maintained long-term harmonious cooperative relations with internationalhotel management groups including Four Seasons, Marriott, Hyatt, InterContinental, Starwood, Hilton, Shangri-La, Kempinski andAccor, as a provider of interior design services for their brand hotels. HBA's works since its establishment may be found in 80countries/regions. It has completed more than 1,000 five-star hotel projects at home and abroad. In the future, Gold Mantis willcontinue to deal with various market segments through resource integration, strive to achieve industry leadership in all segments,continuously improve the core competitiveness of Gold Mantis design, and develop itself into China's No.1 decoration design brand.
(3) Supply Chain System Strengths
In front of increasingly fierce competition in the market, in order to maintain the Company's long-term stable growth, in-depthsupply chain integration was an important step to achieve cost reduction and efficiency increase. The Company has been improvingits supply chain management mechanism. By optimizing resource integration and refining management modules, it has created alarge-scale engineering management platform for centralized procurement and centralized bidding, which provided strong support forbidding and cost control, realizing economies of scale while preventing the occurrence of bad problems to the maximum extentpracticable, based on which the Company had an absolute leading advantage in the industry. On top of that, the Company hasdeveloped a multi-dimensional internally integrated operations system connecting design, construction, procurement and otherprocesses to optimize products, funds and services through supply chain integration. Furthermore, the Company has also built asupply chain integration system set with win-win and service as the guiding ideology. Through the design of a competitive quality,service and price system, the Company might not only better achieve the win-win of customers, partners and itself but also improvethe vitality of its sustainable development.
(4) Management System Strengths
In the face of the huge and complex construction decoration market, insufficient management capabilities have become animportant factor restricting the development of the industry. Gold Mantis witnessed the development of China's constructiondecoration industry all the way. In recent years, the Company has comprehensively improved its management level withinformation-based, refined and standardized management as the lever: Regarding information-based management, the Company hascreated a corporate management cockpit to accurately plan and manage the key time points of project schedules and quality. Thecolors of red, yellow and green were used for clear identification. Additionally, the Company cooperated with the projectmanagement center in following up on, coordinating and solving project schedules and quality warnings. In terms of refinedmanagement, the Company had a large marketing platform, a professional design platform, a large-scale engineering management
platform and a large risk control platform to accurately manage and share data flow, capital flow and information flow. Through thebridging of different management modules, decision making has been made more scientific and efficient, and the Company'sbusiness response and execution have been accelerated. These platforms have become a powerful tool for the Company to enhanceits management capabilities. As for standardized management, the Company has established a standardized procedure for completebusiness handling from marketing to supply chain and then to construction. The popularization and application of the standardizationconcept have greatly improved the accuracy and timeliness of management as well as reduced management costs and managementloopholes. In the future, the Company will continue to promote the betterment of all management levels in order to achieve thebusiness objective of reducing costs and increasing efficiency.
(5) Technology Strengths
In recent years, the construction decoration industry has made great progress in construction processes relying on technologicalupgrading. Scientific and technological elements have gradually become more pervasive. As an industry leader, the Company hasalways led the development of BIM, VR, prefabricated decoration and other key technologies in the industry. Its research anddevelopment of a BIM system adapted to the decoration industry has effectively improved the efficiency and quality of projectmanagement and also enhanced the level of service. The VR technology was used to allow designers and owners to experience thespace and effects as if they were there in person so that the entire process from design to construction is clear and transparent, notmerely greatly increasing efficiency but also reducing costs in marketing, design and construction.The Company was also actively making business arrangements for the field of prefabricated construction decoration. It was oneof the first to be recognized as a national "prefabricated construction industrial base" by the General Office of the Ministry ofHousing and Urban-Rural Development of the People's Republic of China. The Company actively organized and participated in thepreparation of quality and technical standards related to the construction decoration industry. It was the chief editor of the TechnicalProcedures and Regulations for Prefabricated Decoration of Residential Buildings of the China Building Decoration Association andthe Technical Procedures and Regulations for Prefabricated Decoration of Jiangsu Province, and a co-editor of multipleprefabrication-related standards and specifications. Over the years, Gold Mantis's development of construction technologies andresearch in the field of R&D and innovation have become core competitive edges of the Company.
Part IV Management Discussion and AnalysisI Overview
During the Reporting Period, the Company actively overcame the negative impact of the pandemic by exploring newopportunities in the crisis and breaking new grounds amid changes. In response to the business needs of the post-pandemic world, theCompany placed its focus on the in-depth development of the EPC, prefabrication and redecoration markets and continuouslyoptimized its business structure to further expand its market share and leading advantage in the industry.
1. A new growth curve has been started by riding the wind of industry integration and hoisting the sail of EPCdevelopment.
EPC is an important change in the forms of tendering in the industry. It transcends the original separation between design andconstruction, and solves the problem of project bidding by section, which is the only way for the decoration industry to mature. Inrecent years, with the rapid increase in the proportion of the Company's large-scale decoration orders, the EPC model has become animportant direction for the strategic layout of the Company. The Company is making every effort to turn it into a new growth pole ofbusiness. While fully integrating full-industry-chain supporting advantages such as design, construction, landscaping and curtain wallengineering as well as comprehensive project management strengths, the Company took the lead in the active exploration of its ownadvantageous fields including hotels, venues and cultural tourism, vigorously developing EPC projects to start a new growth curve.
At present, the Company has selected elites from design, marketing, construction and other departments to form an EPC specialbusiness department responsible for the in-depth study of EPC project rules. The trump-card competitiveness of Gold Mantis EPCprojects has been created with top design abilities as a drive, complete full-industry-chain capacities as a support and excellentproject management capabilities as a guarantee. In the process of project design, the Company scientifically planned project progressthrough the EPC cloud design platform, effectively solving the connection problem between design and later construction.Construction according to project schedules was thereby ensured. In the procurement process, the Company made accuratecalculations about all kinds of raw materials for projects with the help of the large-scale engineering management platform and thecost control center to minimize project costs. During construction, owing to the comprehensive application of technologies such asprefabrication, the standardization and normalization of the construction process were realized, which effectively guaranteed thequality of construction. Step by step, Gold Mantis is currently on its way to a win-win of greater satisfaction from customers, betterprofit margin and cash flow for the Company, and higher economic value to society in the EPC field.
For the Company's EPC business, the vast market space presented a historic development opportunity. In order to make EPC
business an important force for the Company's leap-forward development in the new stage, the Company will continue to pursueexcellence, uphold first-class quality, establish industry standards and set an industry benchmark.
2. Through consolidation and innovation, prefabricated decoration has entered the fast lane of development.Gold Mantis has adhered to the people-oriented and technology-empowered strategic vision all along in planning and deployingcutting-edge technologies in the industry. Under the corporate mission of living environment improvement, the Company has beenpromoting the innovation and upgrading of industry technologies, so that it was always at the forefront of industrial upgrading.In the field of prefabricated decoration, after years of prefabrication technology R&D and accumulation, product upgrading anditeration have become a constant state for the Company. At present, the Company has built a digital prefabrication system integratingfour dimensions, developed a management system that covers the entire project life cycle in the aspects of standardized design,industrialized production, part assembly and digital integrated operations, and gained a wealth of project experience. Standardizeddesign was coordinated by the Company's leading BIM technology to ensure the integration of construction design and decorationdesign. Buildings, equipment and pipelines did not conflict with decoration so that accurate installation could be realized in the laterstage. Industrialized production unified the design standards, models, specifications and quality of components, fundamentallysolving the pain point of the construction decoration industry that normalization was difficult to achieve. Part assembly relied on theCompany's top talent training system. It could continuously output professional management talent and industrial workers. As aresult, multiple projects in different cities could start simultaneously. Moreover, the Company's ability to undertake projects could beimproved through reproducible flat on-site installation. Digital integrated operations were empowered by the Company's originalprefabrication cloud platform and BIM technology, which enabled fully digital management featuring one-click export of materiallists, one-click export of construction drawings and VR scene application, providing full-industry-chain services covering aesthetics,functions, personalization and nationwide implementation.The Company adhered to the dual drives of independent originality and joint R&D. By absorbing top expert resources in theindustry, it focused on the rapid promotion and implementation of prefabricated decoration technology. It had a cooperationagreement with the Center of Science and Technology & Industrialization Development of the Ministry of Housing and Urban-RuralDevelopment to jointly build an Internet platform for the prefabricated decoration industry and an innovation and exhibition centerfor prefabricated decoration products with informatization, digitization and intelligentization as driving forces. Additionally, theCompany and Chengdu City Construction Investment & Management Group (CDCI) will share resources in prefabrication projectundertaking, technology R&D and resource integration according to their cooperation agreement to seize the first-mover advantage.At present, the Company has become one of the first to be recognized as a national "prefabricated construction industrial base" by theGeneral Office of the Ministry of Housing and Urban-Rural Development of the People's Republic of China. It was the chief editor ofthe Technical Procedures and Regulations for Prefabricated Decoration of Residential Buildings of the China Building Decoration
Association and the Technical Procedures and Regulations for Prefabricated Decoration of Jiangsu Province, and a co-editor ofmultiple prefabrication-related standards and specifications. Among them, the Technical Procedures and Regulations forPrefabricated Decoration of Jiangsu Province has been published. As a leader in the industry, the Company will never abandon themission of leading the development trend of the industry. In the future, it will form a leading edge in terms of efficiency, quality andcost, and make market breakthroughs from point to plane.
3. A trillion level blue ocean of décor-changing redecoration has been opened up
Every building has a need for periodic renewal and renovation during its service life. Therefore, the development of theconstruction decoration industry has a certain multiplier effect and the characteristic of market demand sustainability. With China'srapid development in the field of infrastructure in the past two decades, the current existing stock market is huge. Redecoration hasbecome a large blue ocean market in the decoration industry.At present, the Company's redecoration business focuses on large-scale cultural tourism, venues and hotels. After years ofin-depth development in the industry, the Company has accumulated a large number of domestic high-quality customer resources.Through the formation of a professional redecoration team, combined with its advantages in EPC and prefabrication, the Companywill effectively seize market opportunities. In the future, with the development of economy and society and the further improvementof the level of urbanization, the decoration demand for renovation and reconstruction will increase continuously, and the Companywill have a broad and sustainable space for business development.
4. Corporate moat and barrier advantages have been continuously improved
While maintaining sustained business development, the Company has been constantly consolidating its core strengths. Inparticular, extra efforts have been devoted to platform capabilities and refined management to build a stronger moat.
In respect of platform building, the construction of a large marketing platform, a large-scale engineering management platformand a design platform has been very effective, giving full play to the barrier advantage of leading the industry. The large marketingplatform has enabled the Company's market shares in accessible markets to maintain long-term growth, and the order structure hasbeen significantly optimized. Multi-dimensional modular management from the early market analysis and project evaluation, to themiddle resource integration and then to the later payment collection has been realized, forming a strong support for the Company'sbusiness growth. Through centralized bidding, centralized procurement and centralized allocation modules, the large-scaleengineering management platform has achieved the important goals of pooling resources, reducing costs and increasing efficiency.The management of each construction line has also been deepened, so that the quality, schedule, safety, payment collection and otherdimensions of projects in progress could be supervised in an all-around way. Meanwhile, the management radius has been expanded.The design platform focuses on brand building. It was intended to enhance the influence of the Company's design brand byconstantly creating quality projects with top influence, and to continuously improve the construction conversion rate of projects with
such driving force, so as to expand the Company's presence from design business to construction business and comprehensivelyincrease the Company's market share in the high-quality project market.When it came to refined management, Gold Mantis has independently researched and developed an ERP system, a BImanagement cockpit and a project management command center. It has devised unified administration, finance, supply chain, projectsupport and other information-based management means to achieve whole-process, all-round and real-time project monitoring andscientific data-based management process to ensure the on-time and high-quality completion of projects.II Core Business Analysis
1. Overview
See “I Overview” above.
2. Revenue and Cost Analysis
(1) Breakdown of Operating Revenue
Unit: RMB
| 2020 | 2019 | Change (%) | |||
| Operating revenue | As a % of total operating revenue (%) | Operating revenue | As a % of total operating revenue (%) | ||
| Total | 31,243,227,802.04 | 100% | 30,834,654,530.30 | 100% | 1.33% |
| By operating division | |||||
| Construction decoration | 30,117,163,022.25 | 96.40% | 29,921,660,214.19 | 97.04% | 0.65% |
| Manufacturing | 954,085,964.93 | 3.05% | 810,671,363.32 | 2.63% | 17.69% |
| Others | 171,978,814.86 | 0.55% | 102,322,952.79 | 0.33% | 68.07% |
| By product category | |||||
| Decoration | 27,939,943,817.80 | 89.43% | 27,172,714,036.71 | 88.12% | 2.82% |
| Curtain wall | 1,637,205,437.26 | 5.24% | 1,726,158,637.26 | 5.60% | -5.15% |
| Design | 1,501,558,913.30 | 4.81% | 1,823,521,929.28 | 5.91% | -17.66% |
| Others | 164,519,633.68 | 0.53% | 112,259,927.05 | 0.36% | 46.55% |
| By operating segment | |||||
| Within Jiangsu Province | 8,501,664,546.85 | 27.21% | 8,582,743,663.41 | 27.83% | -0.94% |
| Outside Jiangsu | 22,741,563,255.19 | 72.79% | 22,251,910,866.89 | 72.17% | 2.20% |
(2) Operating Division, Product Category or Operating Segment Contributing over 10% of OperatingRevenue or Operating Profit
√ Applicable □ Not applicable
The Company is subject to the Guide No. 6 of the Shenzhen Stock Exchange on Industry-Specific Information Disclosure—ListedCompanies Engaged in Construction Decoration.
Unit: RMB
Province
| Operating revenue | Cost of sales | Gross profit margin | YoY change in operating revenue (%) | YoY change in cost of sales (%) | YoY change in gross profit margin (%) | |
| By operating division | ||||||
| Construction decoration | 30,117,163,022.25 | 25,135,776,779.73 | 16.54% | 0.65% | 2.96% | -1.87% |
| By product category | ||||||
| Decoration | 27,939,943,817.80 | 23,605,931,194.94 | 15.51% | 2.82% | 4.78% | -1.58% |
| By operating segment | ||||||
| Within Jiangsu Province | 8,501,664,546.85 | 6,806,513,557.13 | 19.94% | -0.94% | 6.56% | -5.64% |
| Outside Jiangsu Province | 22,741,563,255.19 | 19,251,921,586.10 | 15.34% | 2.20% | 2.53% | -0.27% |
Core business data restated according to the changed methods of measurement that occurred in the Reporting Period:
√ Applicable □ Not applicable
Unit: RMB
| Operating revenue | Cost of sales | Gross profit margin | YoY change in operating revenue (%) | YoY change in cost of sales (%) | YoY change in gross profit margin (%) | |
| By operating division | ||||||
| By product category | ||||||
| Decoration | 27,172,714,036.71 | 22,528,609,783.38 | 17.09% | 25.47% | 26.16% | -0.45% |
| By operating segment | ||||||
Reasons for the changed methods of measurement:
In order to better reflect the Company’s product categories, the category of Internet-based home decoration has been put into thedecoration category based on the actual conditions of business revenue.Business categories of the Company:
Unit: RMB
| Business category | Operating revenue | Cost of sales | Gross profit margin |
| Decoration | 27,939,943,817.80 | 23,605,931,194.94 | 15.51% |
| Design | 1,501,558,913.30 | 928,786,610.87 | 38.15% |
Indicate whether the Company conducts business through the Internet channel.
√ Yes □ No
Gold Mantis ? Home conducts business through online channels such as Tmall, JD, as well as the Company’s own WeChat platform,website, and app.Indicate whether the Company carried out overseas projects.
√ Yes □ No
Three projects were carried out in Hong Kong by the Company in the Reporting Period, with the contract amounts totalingRMB25.11 million.
(3) Whether Revenue from Physical Sales Is Higher than Service Revenue
□ Yes √ No
(4) Execution Progress of Significant Signed Sales Contracts in the Reporting Period
√ Applicable □ Not applicable
The Company is subject to the Guide No. 6 of the Shenzhen Stock Exchange on Industry-Specific Information Disclosure—ListedCompanies Engaged in Construction Decoration.
Unit: RMB
| Project amount | Cumulative output value recognized | Amount of the uncompleted portion | |
| Uncompleted projects | 63,043,790,573.00 | 33,503,941,943.00 | 29,539,848,630.00 |
Indicate whether there was any significant uncompleted project.
□ Applicable √ Not applicable
Other information:
□ Applicable √ Not applicable
Unit: RMB
| Cumulative costs incurred | Cumulative gross profit recognized | Expected loss | Settled amount | Amount of the completed but unsettled portion | |
| Completed but unsettled projects | 21,269,996,533.48 | 2,723,626,061.33 | 21,074,283,351.44 | 4,619,103,145.61 |
Indicate whether there was any significant completed but unsettled project.
□ Applicable √ Not applicable
Other information:
□ Applicable √ Not applicable
(5) Breakdown of Cost of Sales
By operating division
Unit: RMB
| Operating division | Item | 2020 | 2019 | Change (%) | ||
| Cost of sales | As a % of total cost of sales (%) | Cost of sales | As a % of total cost of sales (%) | |||
| Construction decoration | Direct materials | 16,223,118,950.89 | 66.91% | 14,969,348,250.06 | 64.36% | 8.38% |
| Construction decoration | Direct labor costs | 7,291,485,367.27 | 30.07% | 7,299,922,894.97 | 31.38% | -0.12% |
| Construction decoration | Expenses | 732,184,275.95 | 3.02% | 990,934,818.28 | 4.26% | -26.11% |
Breakdown of cost of sales of core businesses:
Unit: RMB
| Cost breakdown | Business category | 2020 | 2019 | Change (%) | ||
| Cost | As a % of total cost of sales (%) | Cost | As a % of total cost of sales (%) | |||
| Direct materials | Decoration | 16,223,118,950.89 | 66.91% | 14,969,348,250.06 | 64.36% | 8.38% |
| Design | 0.00% | |||||
| Subtotal | 16,223,118,950.89 | 66.91% | 14,969,348,250.06 | 64.36% | 8.38% | |
| Direct labor costs | Decoration | 6,632,060,386.56 | 27.35% | 6,512,456,949.56 | 28.00% | 1.84% |
| Design | 659,424,980.71 | 2.72% | 787,465,945.41 | 3.39% | -16.26% | |
| Subtotal | 7,291,485,367.27 | 30.07% | 7,299,922,894.97 | 31.38% | -0.12% | |
| Expenses | Decoration | 549,397,367.20 | 2.27% | 729,000,404.55 | 3.13% | -24.64% |
| Design | 182,786,908.75 | 0.75% | 261,934,413.73 | 1.13% | -30.22% | |
| Subtotal | 732,184,275.95 | 3.02% | 990,934,818.28 | 4.26% | -26.11% | |
| Subtotal | 24,246,788,594.11 | 100.00% | 23,260,205,963.31 | 100.00% | 4.24% | |
(6) Changes in the Scope of Consolidated Financial Statements for the Reporting Period
√ Yes □ No
1. Disposal of subsidiaries
In the current period, Home Decoration E-commerce, a subsidiary of Gold Mantis Prefabricated Construction Technology,transferred or de-registered 51 “Gold Mantis Home” subsidiaries, and Gold Mantis Curtain Wall, a subsidiary of the Company,de-registered Suzhou Miaoyu Construction Materials Co., Ltd. These transferred or de-registered entities were therefore excluded
from the consolidated financial statements of the current period.
2. Other changes to the consolidation scope
In the current period, Gold Mantis International, a subsidiary of the Company, incorporated Jining Gold Mantis ConstructionEngineering Co., Ltd., and Gold Mantis Landscape, a subsidiary of the Company, incorporated Hangzhou Gold Mantis LandscapeCo., Ltd. These newly incorporated entities were added to the consolidated financial statements of the current period.
(7) Significant Changes to the Business Scope or Product or Service Range in the Reporting Period
□ Applicable √ Not applicable
(8) Major Customers and Suppliers
Major customers:
| Total sales to top five customers (RMB) | 8,769,142,135.42 |
| Total sales to top five customers as a % of total sales of the Reporting Period (%) | 28.07% |
| Total sales to related parties among top five customers as a % of total sales of the Reporting Period (%) | 0.00% |
Top five customers:
| No. | Customer | Sales revenue contributed for the Reporting Period (RMB) | As a % of total sales revenue (%) |
| 1 | Customer A | 6,835,504,535.80 | 21.88% |
| 2 | Customer B | 1,108,396,916.19 | 3.55% |
| 3 | Customer C | 344,326,369.83 | 1.10% |
| 4 | Customer D | 262,020,032.31 | 0.84% |
| 5 | Customer E | 218,894,281.29 | 0.70% |
| Total | -- | 8,769,142,135.42 | 28.07% |
Other information about major customers:
□ Applicable √ Not applicable
Major suppliers:
| Total purchases from top five suppliers (RMB) | 587,287,591.63 |
| Total purchases from top five suppliers as a % of total purchases of the Reporting Period (%) | 2.13% |
| Total purchases from related parties among top five suppliers as a % of total purchases of the Reporting Period (%) | 0.00% |
Top five suppliers:
| No. | Supplier | Purchase in the Reporting Period (RMB) | As a % of total purchases (%) |
| 1 | Supplier A | 142,664,603.12 | 0.52% |
| 2 | Supplier B | 140,175,325.28 | 0.51% |
| 3 | Supplier C | 115,740,281.38 | 0.42% |
| 4 | Supplier D | 99,819,589.00 | 0.36% |
| 5 | Supplier E | 88,887,792.85 | 0.32% |
| Total | -- | 587,287,591.63 | 2.13% |
Other information about major suppliers:
□ Applicable √ Not applicable
3. Expenses
Unit: RMB
| 2020 | 2019 | Change (%) | Reason for any significant change | |
| Selling expense | 375,964,501.30 | 650,794,185.74 | -42.23% | Decreases in headcounts of the Company and its subsidiaries |
| Administrative expense | 604,846,088.47 | 1,001,785,370.49 | -39.62% | Decreases in headcounts of the Company and its subsidiaries |
| Finance costs | 131,166,068.90 | 134,886,779.35 | -2.76% | |
| R&D expense | 955,782,334.18 | 879,866,123.50 | 8.63% |
4. R&D Investments
√ Applicable □ Not applicable
The Company further strengthened R&D and innovation work, improved the building of a scientific and technological R&Dsystem, kept exploring new ideas and new models for R&D, enhanced technology strengths, and transformed them into corecompetitiveness. The Company and its subsidiaries Meiruide, Gold Mantis Curtain Wall, Gold Mantis Landscape and RefinedDecoration & Technology have all gained the national "High-Tech Enterprise" recognition. It has also been recognized as a "KeyHigh and New-Tech Enterprise of National Torch Plan", a "Comprehensive Scientific Research Institute of China's BuildingDecoration Industry" and a "BIM Research Center of China's Building Decoration Industry", and has become one of the first in theindustry to be approved as a "postdoctoral research station" and one of the first to be recognized as a national "prefabricatedconstruction industrial base". As at the end of the Reporting Period, a total of more than 2,000 patents had been obtained (including371 invention patents).Particulars about R&D investments:
| 2020 | 2019 | Change (%) | |
| Number of R&D personnel | 3,137 | 2,879 | 8.96% |
| R&D personnel as a % of total employees | 20.77% | 16.69% | 4.08% |
| R&D investments (RMB) | 955,782,334.18 | 879,866,123.50 | 8.63% |
| R&D investments as a % of operating revenue | 3.06% | 2.85% | 0.21% |
| Capitalized R&D investments (RMB) | 0.00 | 0.00 | 0.00% |
| Capitalized R&D investments as a % of total R&D investments | 0.00% | 0.00% | 0.00% |
Reasons for any significant YoY change in the percentage of R&D investments in operating revenue:
□ Applicable √ Not applicable
Reason for any sharp variation in the percentage of capitalized R&D investments and rationale:
□ Applicable √ Not applicable
5. Cash Flows
Unit: RMB
| Item | 2020 | 2019 | Change (%) |
| Subtotal of cash generated from operating activities | 28,880,990,351.48 | 28,661,170,405.68 | 0.77% |
| Subtotal of cash used in operating activities | 27,103,875,109.32 | 26,905,950,422.97 | 0.74% |
| Net cash generated from/used in operating activities | 1,777,115,242.16 | 1,755,219,982.71 | 1.25% |
| Subtotal of cash generated from investing activities | 10,856,910,482.46 | 16,113,138,283.09 | -32.62% |
| Subtotal of cash used in investing activities | 11,430,608,541.98 | 14,744,610,311.98 | -22.48% |
| Net cash generated from/used in investing activities | -573,698,059.52 | 1,368,527,971.11 | -141.92% |
| Subtotal of cash generated from financing activities | 1,173,776,082.77 | 1,513,451,675.11 | -22.44% |
| Subtotal of cash used in financing activities | 1,970,884,916.45 | 1,662,254,810.52 | 18.57% |
| Net cash generated from/used in financing activities | -797,108,833.68 | -148,803,135.41 | -435.68% |
| Net increase in cash and cash equivalents | 303,149,343.56 | 2,982,286,978.82 | -89.84% |
Explanation of why any of the data above varies significantly on a year-on-year basis:
√ Applicable □ Not applicable
It was primarily driven by operating, investing and financing activities in the current period.Explanation of why the net cash generated from/used in operating activities varies significantly from the net profit of the ReportingPeriod:
□ Applicable √ Not applicable
III Analysis of Non-Core Businesses
√ Applicable □ Not applicable
Unit: RMB
| Amount | As a % of gross profit | Primary source/reason | Recurrent or not | |
| Return on investment | 37,648,383.31 | 1.39% | Returns on wealth management product investments | Recurrent |
| Gain/loss on changes in fair value | -723,913.69 | -0.03% | ||
| Asset impairment loss | -386,282,077.09 | -14.25% | Allowances for doubtful accounts | Recurrent |
| Non-operating income | 285,660.49 | 0.01% | Not recurrent | |
| Non-operating expense | 4,298,740.33 | 0.16% | Not recurrent |
IV Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Indicate whether the Company has adopted the new accounting standards governing revenue and leases since 2020 and restated thebeginning amounts of relevant financial statement line items in the year.Applicable.
Unit: RMB
| 31 December 2020 | 1 January 2020 | Change in percentage (%) | Reason for any significant change | |||
| Amount | As a % of total assets | Amount | As a % of total assets | |||
| Monetary assets | 6,372,631,845.72 | 14.16% | 6,077,758,993.30 | 15.32% | -1.16% | |
| Accounts receivable | 13,517,789,956.57 | 30.04% | 12,019,319,778.79 | 30.30% | -0.26% | |
| Inventories | 53,841,882.04 | 0.12% | 101,344,129.28 | 0.26% | -0.14% | |
| Investment property | 135,295,908.94 | 0.30% | 78,250,561.70 | 0.20% | 0.10% | |
| Long-term equity investments | 225,124.06 | 0.00% | 22,838,423.66 | 0.06% | -0.06% | |
| Fixed assets | 892,169,838.74 | 1.98% | 910,175,452.03 | 2.29% | -0.31% | |
| Construction in progress | 41,215,785.57 | 0.09% | 71,905,579.25 | 0.18% | -0.09% | |
| Short-term borrowings | 714,363,172.85 | 1.59% | 875,691,128.75 | 2.21% | -0.62% | |
| Long-term borrowings | 836,918,353.34 | 1.86% | 838,561,722.30 | 2.11% | -0.25% |
2. Assets and Liabilities Measured at Fair Value
√ Applicable □ Not applicable
Unit: RMB
| Item | Opening amount | Gain/loss on fair-value changes in the current period | Cumulative fair-value changes recognized in equity | Impairment allowance for the current period | Purchased in the current period | Sold in the current period | Other changes | Closing amount |
| Financial assets | ||||||||
| 1. Held-for-trading financial assets (exclusive of derivative financial assets) | 1,694,650,654.74 | -723,913.69 | 11,203,540,711.98 | 10,725,380,711.98 | 2,172,086,741.05 | |||
| Other non-current financial assets | 444,022,000.00 | 68,000,000.00 | 512,022,000.00 | |||||
| Total of the above | 2,138,672,654.74 | -723,913.69 | 11,271,540,711.98 | 10,725,380,711.98 | 2,684,108,741.05 | |||
| Financial liabilities | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||
Particulars about other changes:
Indicate whether any significant change occurred to the measurement attributes of the major assets in the Reporting Period.
□ Yes √ No
3. Assets to which the Company’s Rights Were Restricted as at the Period-End
Unit: RMB
| Item | Closing carrying amount | Reason for restriction |
| Monetary assets | 16,564,171.89 | Frozen by court of law |
| Notes receivable | 1,300,000.00 | Put in pledge for notes issuing |
| Notes receivable | 1,901,286,639.74 | Un-derecognized endorsed or discounted commercial notes |
| Accounts receivable | 103,990,224.42 | Un-derecognized factored accounts receivable |
| Receivables financing | 82,472,805.60 | Put in pledge for notes issuing |
| Total | 2,105,613,841.65 |
V Investments Made
1. Total Investment Amount
√ Applicable □ Not applicable
| Total investment amount in the Reporting Period (RMB) | Total investment amount in last year (RMB) | Change (%) |
| 196,000,000.00 | 245,621,341.56 | -20.20% |
2. Significant Equity Investments Acquired in the Reporting Period
□ Applicable √ Not applicable
3. Significant Ongoing Non-Equity Investments in the Reporting Period
□ Applicable √ Not applicable
4. Financial Investments
(1) Securities Investments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(2) Investments in Derivative Financial Instruments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
5. Use of Raised Funds
□ Applicable √ Not applicable
No such cases in the Reporting Period.VI Sale of Major Assets and Equity Investments
1. Sale of Major Assets
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Sale of Major Equity Investments
□ Applicable √ Not applicable
VII Principal Subsidiaries and Joint Stock Companies
√ Applicable □ Not applicable
Principal subsidiaries and joint stock companies with an over 10% effect on the consolidated net profit:
Unit: RMB
| Name | Relationship with the Company | Principal activities | Registered capital | Total assets | Net assets | Operating revenue | Operating profit | Net profit |
| Meiruide | Subsidiary | Construction decoration | RMB137 million | 5,910,074,493.10 | 1,457,720,687.48 | 4,649,890,587.53 | 261,010,405.32 | 236,084,987.30 |
| Gold Mantis Curtain Wall | Subsidiary | Manufacturing of decoration materials | RMB300 million | 2,550,888,967.47 | 923,741,660.24 | 1,640,145,633.00 | 20,202,390.91 | 21,565,367.61 |
| Gold Mantis Landscape | Subsidiary | Landscaping | RMB100 million | 2,287,601,703.71 | 630,017,100.91 | 1,061,264,310.72 | 130,311,674.76 | 114,277,407.25 |
| Singapore | Subsidi | Constructi | USD1 | 1,248,738,900.23 | 664,199,378.87 | 803,827,849.60 | 99,507,430.49 | 82,850,227.49 |
| Gold Mantis | ary | on decoration | ||||||
| Gold Mantis (International) | Subsidiary | Construction decoration | HKD10 million | 405,936,293.10 | 299,872,919.69 | 198,471,035.76 | 61,498,865.91 | 49,992,522.99 |
| Gold Mantis Prefabricated Construction Technology | Subsidiary | Decoration and e-commerce | RMB270 million | 2,230,155,296.20 | 256,999,489.05 | 2,808,722,617.48 | 28,089,987.06 | -13,401,119.37 |
Subsidiaries acquired or disposed of in the Reporting Period:
√ Applicable □ Not applicable
| Name | Way of acquisition or disposal | Effects on the Company’s overall operations and performance |
| 51 “Gold Mantis Home” subsidiaries | Transferred or de-registered | No significant effects |
| Suzhou Miaoyu Construction Materials Co., Ltd. | De-registered | No significant effects |
| Jining Gold Mantis Construction Engineering Co., Ltd. | Incorporated | No significant effects |
| Hangzhou Gold Mantis Landscape Co., Ltd. | Incorporated | No significant effects |
VIII Structured Entities Controlled by the Company
□ Applicable √ Not applicable
IX Prospects
1. Competitive Landscape and Development Trend of the Industry
In recent years, the market size of the construction decoration industry has grown steadily, policies and standards have promotedmarket development, and market integration has become more frequent; new business models such as EPC have expanded rapidly;prefabrication, intelligentization, BIM, VR and other technological innovation have continued to deepen. In the future, with the waveof industrial upgrading, green interior decoration, scientific and technological decoration, and informatization will become importantdriving forces for the next growth-cycle round of the construction decoration industry.In recent years, the decoration industry has presented a variety of new trends and new changes, which are prominentlymanifested in business types and technological innovation.Business:
(1) The engineering procurement construction (EPC) of decoration projects has become the mainstream development
trend
Taking into account the development of the building industry at home and abroad, we will find that the EPC of decorationprojects is an inevitable trend of industry development. For a long time, decoration projects in China have been carried out by generaldesign contractors and general construction contractors separately, resulting in many problems such as the different project progressbetween the two and the poor matching of drawings. However, with the in-depth promotion of the decoration EPC policy, greatimprovement will be brought. For one thing, decoration EPC can reduce management difficulty, shorten project duration and cutbuilding costs. For another, it can help improve construction efficiency and quality, thus creating more economic value for all parties.Later under the continuous guidance of national policies and propelled by market forces, decoration EPC will further become themainstream trend of industry development.
(2) Opportunities arise from the construction of key regions across the country
In recent years, China has been stepping up its efforts to promote regional development. It has constantly optimized regionalpolicies and spatial layout, leveraged the comparative advantages of different regions, and made new progress in nationalhigh-quality development. Successively, China has launched the construction plans for the Guangdong-Hong Kong-Macao GreaterBay Area, the integrated development of the Yangtze River Delta, the coordinated development of the Beijing-Tianjin-Hebei regionand the Xiong'an New Area to create world-class innovation platforms and growth poles. In the future, a number of benchmarkprojects up to international first-class standards will become important development opportunities for the construction decorationindustry.
Technological innovation:
(1) Prefabricated decoration has become an important trend
At present, the building modernization in major developed countries is quite mature. Representative countries such as the UnitedStates, Japan and Singapore have a very high penetration rate in the field of prefabrication. Although China's penetration rate hasincreased in recent years, there is still a gap, indicating that the prefabrication penetration of China has huge room for growth.Prefabricated decoration adopts the new forms of standardized design, industrialized production and prefabricated construction,which has such advantages as good construction quality, high installation accuracy and environmental friendliness. It can solve manydifficulties faced by traditional decoration construction and greatly reduce dependence on manual work. Therefore, it has brightprospects for future growth.
(2) BIM has become an industry trend
BIM has five major characteristics, namely visualization, coordination, simulation, optimization and plotting. This enablesprojects with BIM applications as a carrier to have improved building quality, shortened project duration and reduced constructioncosts. As the construction decoration industry imposes higher visualization requirements for design, cost estimation, construction,
maintenance and other processes as well as for all types of information, BIM has become a technological symbol of the constructionindustry. It has been more and more widely used in many large and complex construction projects. Now it is a technological directionof the future transformation of China's construction decoration industry.
2. Development Strategy of the Company
Opportunities and challenges coexist in the current industry. On the one hand, there are still many uncertainties in economicresurgence. The road to industry demand recovery is tortuous. On the other hand, under the promotion by national policies and theimprovement of standardization, many new business forms and new technologies have emerged in the industry. The development ofEPC and prefabrication is in full swing. Therefore, in order to maintain its leadership in the fierce market competition, the Companymust continue to seek vitality from technological innovation and impetus from industrial upgrading. In 2021, the Company willadvance its different operations in accordance with the established strategy, focusing on the EPC, prefabrication, local andredecoration markets, to create new core competitiveness for Gold Mantis.
(1) EPC: The Company will leverage its full-industry-chain supporting advantages such as design, construction, landscaping andcurtain wall engineering as well as comprehensive project management strengths, in addition to integrating industry resources.Through the integration of design and construction, the Company will also increase the proportion of large-scale high-qualityprojects, create barriers to competitors, and further improve its market share and core profit margin.
(2) Prefabricated decoration: The Company will integrate internal and external resources, adhering to both independentoriginality and joint R&D. By ensuring close cooperation and resource sharing with domestic leading enterprises on projectundertaking, technology R&D and resource integration, the Company will promote the rapid promotion and implementation ofprefabricated decoration projects in order to form the first-mover advantage and the scale advantage.
(3) Local markets: The Company will create local landmark projects by strengthening cooperation with local governments, buildtrust and stickiness with local governments and large enterprises, and promote mutual benefit and win-win results. Moreover, theCompany will continue to rapidly expand its business from point to plane and from plane to solid, in order to achieve the strategicgoal of developing local markets in depth and further promote the Company to the whole country.
(4) Redecoration: The Company's redecoration business will focus on large-scale cultural tourism, venues and hotels. TheCompany will fully mobilize a large number of domestic high-quality customer resources and use its advantages in EPC andprefabrication to effectively seize market opportunities.
3. Future Planning
(1) Platform construction will be accelerated to facilitate stable and continuous high-quality development.
The Company will continuously improve and enrich the management radius of the large marketing platform, the professionaldesign platform and the large-scale engineering management platform, raise its refined management level in marketing, design,
project management, audit and payment collection and other business dimensions, and promote its firm move towards high-qualitydevelopment.
(2) The joint operation system will be completed, and the Company's long-term growth potential will be gradually unlocked.The Company will build a business operations system where marketing, bidding, design, construction, functions and otherdepartments support and cooperate with each other so that different line departments will perform their respective duties and betterfocus on such aspects as construction quality, schedule, customer satisfaction and payment collection, thereby systematically andcomprehensively enabling the Company's reform measures to truly play a role and achieving the Company's established goals.X Communications with the Investment Community such as Researches, Inquiries andInterviews
1. During the Reporting Period
√ Applicable □ Not applicable
| Date | Place | Way of communication | Type of the communication party | Communication party | Main discussions and materials provided by the Company | Index to the relevant information |
| 27 April 2020 | Company Conference Room | By phone | Institution | Guosheng Asset Management, CICC, Fullgoal Fund, etc. | Introduced the Company’s operations and development strategy | Log Sheet of Investor Relations Activities on 27 April 2020 on http://irm.cninfo.com.cn/ |
| 8 May 2020 | Company Conference Room | Other | Other | All investors | Introduced the Company’s operations and development strategy | Log Sheet of Investor Relations Activities on 8 May 2020 on http://irm.cninfo.com.cn/ |
| 1 September 2020 | Company Conference Room | By phone | Institution | Guosheng Asset Management, Huatai Securities, Industrial Securities, etc. | Introduced the Company’s operations and development strategy | Log Sheet of Investor Relations Activities on 1 September 2020 on http://irm.cninfo.com.cn/ |
| 2 November 2020 | Company Conference Room | By phone | Institution | Guosheng Asset Management, Huatai Securities, Industrial Securities, etc. | Introduced the Company’s operations and development strategy | Log Sheet of Investor Relations Activities on 2 November 2020 on http://irm.cninfo.com.cn/ |
Part V Significant EventsI Profit Distributions to Ordinary Shareholders in the Form of Cash and/or SharesThe profit distribution policy for ordinary shareholders, especially the formulation, implementation and amendments to the cashdividend policy, in the Reporting Period:
√ Applicable □ Not applicable
The Company has been implementing continual and consistent profit distribution policies in the current stage. With an aim toconcurrently guarantee the overall interests of the entire shareholders and the Company's sustainable development, the Companygave consideration to factors such as its operation status, profit scale and financial needs for project investment, and has formulatedsustainable, consistent and scientific distribution policies. Equity distribution was carried out through cash dividends, as well asbonus issues from capital reserves and profit to offer reasonable investment returns to investors and provide them with opportunitiesto share the Company's achievement in economic growth. Such practices were in compliance with relevant laws, regulations andnormative documents issued by the China Securities Regulatory Commission and the Shenzhen Stock Exchange.
| Special statement about the cash dividend policy | |
| In compliance with the Company’s Articles of Association and resolution of general meeting | Yes |
| Specific and clear dividend standard and ratio | Yes |
| Complete decision-making procedure and mechanism | Yes |
| Independent directors faithfully performed their duties and played their due role | Yes |
| Non-controlling shareholders are able to fully express their opinion and desire and their legal rights and interests are fully protected | Yes |
| In case of adjusting or altering the cash dividend policy, the conditions and procedures involved are in compliance with applicable regulations and transparent | Not applicable |
The profit distribution plans for ordinary shareholders, either in the form of cash or shares, in the past three years (including theReporting Period) are summarized as follows:
The final dividend plan for 2020: Based on the total share capital of 2,683,358,689 shares, a cash dividend of RMB2 (taxinclusive) per 10 shares is planned to be distributed to all the shareholders, with the total amount to be distributed beingRMB536,671,737.80.
The final dividend plan for 2019: Based on the total share capital of 2,684,408,689 shares, a cash dividend of RMB2 (tax
inclusive) per 10 shares is planned to be distributed to all the shareholders, with the total amount to be distributed beingRMB536,881,737.80.
The final dividend plan for 2018: Based on the total share capital of 2,676,408,689 shares, a cash dividend of RMB2 (taxinclusive) per 10 shares is planned to be distributed to all the shareholders, with the total amount to be distributed beingRMB535,281,737.80.Cash dividends for ordinary shareholders in the past three years (including the Reporting Period):
Unit: RMB
| Year | Cash dividends (tax inclusive) (A) | Net profit attributable to ordinary shareholders of the listed company in consolidated statements for the year (B) | A as a % of B (%) | Cash dividends in other forms (like share repurchase) (C) | C as a % of B (%) | Total cash dividends (including those in other forms) (A+C) | A+C as a % of B (%) |
| 2020 | 536,671,737.80 | 2,373,915,319.52 | 22.61% | 0.00 | 0.00% | 536,671,737.80 | 22.61% |
| 2019 | 536,881,737.80 | 2,349,395,605.96 | 22.85% | 0.00 | 0.00% | 536,881,737.80 | 22.85% |
| 2018 | 535,281,737.80 | 2,123,411,594.37 | 25.21% | 0.00 | 0.00% | 535,281,737.80 | 25.21% |
Indicate whether the Company fails to put forward a cash dividend proposal for the ordinary shareholders despite the facts that theCompany has made profits in the Reporting Period and the profits of the Company as the parent distributable to the ordinaryshareholders are positive.
□ Applicable √ Not applicable
II Final Dividend Plan for the Reporting Period
√ Applicable □ Not applicable
| Bonus issue from profit (share/10 shares) | 0 |
| Cash dividend/10 shares (RMB) (tax inclusive) | 2 |
| Share base (share) | 2,683,358,689 |
| Cash dividends (RMB) (tax inclusive) | 536,671,737.80 |
| Cash dividends in other forms (such as share repurchase) (RMB) | 0.00 |
| Total cash dividends (including those in other forms) (RMB) | 536,671,737.80 |
| Distributable profit (RMB) | 9,716,609,593.34 |
| Total cash dividends (including those in other forms) as a % of the total profit to be distributed | 100% |
| Cash dividend policy |
| Other |
| Cash and/or stock dividend plan in detail |
| Specific conditions and proportion of cash dividends as stipulated in the Articles of Association: Except for special circumstances, the Company shall distribute dividends in cash if it is profitable in the year and the accumulative retained earnings are positive. The annual profit distributed in cash shall not be less than 10% of the profit available for distribution to shareholders achieved in the year, and the accumulated profit distributed in cash in the last three years shall not be less than 30% of the average annual distributable profit achieved in the last three years. If the Company repurchases shares by means of offer or call auction in consideration of cash, it is deemed as cash dividends and will be included in the relevant percentage of cash dividends for calculation. The special circumstances mentioned in the foregoing paragraph include: 1. War, natural disasters and other force majeure have a significant adverse impact on the Company's production and operations; 2. Due to an international and domestic macroeconomic impact, the industry's earnings decline significantly, resulting in a decline of more than 50% in the Company's net profit from the same period of the previous year; 3. Due to the national macroeconomic situations, policy control and other reasons, the Company's net operating cash flow falls by more than 50% from the same period of the previous year or the Company's net operating cash flow is negative; 4. As the Company intends to acquire assets, make foreign investments, purchase significant fixed assets or tangible assets in the next twelve months with its own funds, the accumulative expenditure reaches or exceeds 10% of its audited total assets of the latest period. The final dividend plan for 2020: Based on the total share capital of 2,683,358,689 shares [note], a cash dividend of RMB2 (tax inclusive) per 10 shares is planned to be distributed to all the shareholders, with the total amount to be distributed being RMB536,671,737.8. And there will be no bonus issue from either profit or capital reserves. Note: In case of any changes in the total share capital or shares in the share repurchase account prior to the date of record for the profit distribution, the profit distribution will be carried out under the principle of an unchanged cash dividend payout ratio. The final dividend plan is in compliance with the Company’s Articles of Association and is subject to final approval by the General Meeting before implementation. |
III Fulfillment of Commitments
1. Commitments of the Company’s Actual Controller, Shareholders, Related Parties and Acquirers, as wellas the Company Itself and other Entities Fulfilled in the Reporting Period or Ongoing at the Period-end
√ Applicable □ Not applicable
| Commitment | Promisor | Type of commitment | Details of commitment | Date of commitment making | Term of commitment | Fulfillment |
| Commitments made in share reforms | ||||||
| Commitments made in acquisition reports or interests change reports | ||||||
| Commitments made in asset restructurings |
| Commitments made in IPO or refinancing | Suzhou Gold Mantis Enterprise (Group) Co., Ltd., Golden Feather Corporation, and Zhu Xingliang | Commitments related to horizontal competition, related-party transactions, and capital occupation | Commitment about avoiding horizontal competition | 25 October 2006 | Long-term | Strictlyabiding by the commitment |
| Equity incentive commitments | ||||||
| Other commitments made to non-controlling shareholders | Suzhou Gold Mantis Enterprise (Group) Co., Ltd., Golden Feather Corporation, and Zhu Xingliang | Commitment related to not reducing shareholdings in the Company during the statutory periods | Commitment about not reducing shareholdings in the Company during the statutory periods upon shareholding increases | 20 November 2019 | Six months | Fulfilled |
| Fulfilled on time or not | Yes | |||||
| Specific reasons for failing to fulfill commitments on time and plans for the next step | Not applicable | |||||
2. Where there had been an earnings forecast for an asset or project and the Reporting Period was stillwithin the forecast period, explain why the forecast has been reached for the Reporting Period.
□ Applicable √ Not applicable
IV Occupation of the Company’s Capital by the Controlling Shareholder or Its RelatedParties for Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.V Explanations Given by the Board of Directors, the Supervisory Committee and theIndependent Directors (if any) Regarding the Independent Auditor's “Modified Opinion” onthe Financial Statements of the Reporting Period
□ Applicable √ Not applicable
VI YoY Changes to Accounting Policies, Estimates and Methods
√ Applicable □ Not applicable
On 23 April 2020, the Company convened the 5th Meeting of the 6th Board of Directors and the 5th Meeting of the 6thSupervisory Committee, at which the Proposal on Changing Accounting Policies According to the Regulations of the Ministry ofFinance was reviewed and approved.
1. According to the Accounting Standard No. 14 for Business Enterprises- Revenue revised and issued by the Ministry ofFinance, the main changes were as follows:
In the revised standards, the two existing standards on revenue and construction contracts were incorporated into a unifiedrevenue recognition model; the transfer of risk premium was replaced with the transfer of control as the judgment criterion for thetime of revenue recognition; clearer guidelines were provided on the accounting processing of contracts containing multipletransaction arrangements; and clear provisions were provided on the revenue recognition and measurement of certain specifictransactions (or events).
2. According to the Accounting Standard No. 7 for Business Enterprises- Exchange of Non-monetary Assets (Revision 2019)issued by the Ministry of Finance, the main changes were as follows:
In the revised standards, the scope of application of the standards on exchange of non-monetary assets was refined; therecognition/derecognition time for the exchange of received assets and surrendered assets was clarified; the measurement principlesfor the exchange of non-monetary assets measured at fair value when multiple assets were received or surrendered at the same timewere revised; and the disclosure of whether the exchange of non-monetary assets had commercial substance and the reasons wasrequired.
3. According to the Accounting Standard No. 12 for Business Enterprises- Debt Restructuring (Revision 2019) issued by theMinistry of Finance, the main changes are as follows:
The definition of "debt restructuring" was revised to cancel a judgment on whether the debtor is in financial difficulty orwhether the creditor has made concessions. Therefore, the scope of application was expanded. It was clarified that restructured debtsand liabilities were no longer distinguished from other financial instruments, and that the recognition and measurement principles ofrestructured debts and liabilities were consistent with those of financial instruments.VII Retrospective Restatements due to Correction of Material Accounting Errors in theReporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VIII YoY Changes to the Scope of the Consolidated Financial Statements
√ Applicable □ Not applicable
1. Disposal of subsidiaries
In the current period, Home Decoration E-commerce, a subsidiary of Gold Mantis Prefabricated Construction Technology,transferred or de-registered 51 “Gold Mantis Home” subsidiaries, and Gold Mantis Curtain Wall, a subsidiary of the Company,de-registered Suzhou Miaoyu Construction Materials Co., Ltd. These transferred or de-registered entities were therefore excludedfrom the consolidated financial statements of the current period.
2. Other changes to the consolidation scope
In the current period, Gold Mantis International, a subsidiary of the Company, incorporated Jining Gold Mantis ConstructionEngineering Co., Ltd., and Gold Mantis Landscape, a subsidiary of the Company, incorporated Hangzhou Gold Mantis LandscapeCo., Ltd. These newly incorporated entities were added to the consolidated financial statements of the current period.IX Engagement and Disengagement of Independent AuditorCurrent independent auditor:
| Name of the domestic independent auditor | RSM China |
| The Company’s payment to the domestic independent auditor (RMB’0,000) | 235 |
| How many consecutive years the domestic independent auditor has provided audit service for the Company | 18 |
| Names of the certified public accountants from the domestic independent auditor writing signatures on the auditor’s report | Song Wen, Hong Zhiguo, and Long Bing |
| How many consecutive years the certified public accountants have provided audit service for the Company | Four years, five years, and three years, respectively |
Indicate whether the independent auditor was changed for the Reporting Period.
□ Yes √ No
Independent auditor appointed for the audit of internal control, as well as financial advisor or sponsor appointed:
□ Applicable √ Not applicable
X Possibility of Delisting after the Disclosure of this Report
□ Applicable √ Not applicable
XI Insolvency and Reorganization
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XII Significant Legal Matters
□ Applicable √ Not applicable
No such cases in the Reporting Period.XIII Punishments and Rectifications
□ Applicable √ Not applicable
No such cases in the Reporting Period.XIV Credit Standings of the Company as well as Its Controlling Shareholder and ActualController
□ Applicable √ Not applicable
XV Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measuresfor Employees
√ Applicable □ Not applicable
1. On 29 October 2018, the Company convened the 12th Extraordinary Meeting of the 5th Board of Directors and the 4thExtraordinary Meeting of the 5th Supervisory Committee, at which the Proposal on the Company's 2018 Restricted Share IncentivePlan (Draft) and Its Summary and other proposals were reviewed and approved. Independent directors and the SupervisoryCommittee of the Company put forward opinions on whether this incentive plan would be conducive to the Company's sustainabledevelopment and whether it might significantly damage the interests of the Company and its entire shareholders. Details werepublished on the Cninfo (http://www.cninfo.com.cn) on 30 October 2018 for the inquiry of investors.
2. From 30 October 2018 to 12 November 2018, the Company published the list of awardees for this incentive plan on theCninfo and its official website. During this period, the Supervisory Committee of the Company did not receive any objection. As thepublicity period expired, the Supervisory Committee convened the 5th Extraordinary Meeting of the 5th Supervisory Committee on13 November 2018 to review the list of awardees in the first incentive grant and provide information on the publicity status.
3. On 20 November 2018, the Company convened the 1st Extraordinary General Meeting of 2018, at which the Proposal on theCompany's 2018 Restricted Share Incentive Plan (Draft) and Its Summary and other proposals were reviewed and approved. Besides,self-inspection of stock trading of incentive plan insiders was conducted. There was no finding where the insiders made use of insideinformation to trade the Company's stocks. Details were published on the Cninfo (http://www.cninfo.com.cn) on 21 November 2018for the inquiry of investors.
4. On 17 December 2018, the Company convened the 13th Extraordinary Meeting of the 5th Board of Directors and the 6thExtraordinary Meeting of the 5th Supervisory Committee, at which the Proposal on the First Grant of Restricted Stocks to Awardees
was reviewed and approved. It was agreed that the Company granted 33.10 million restricted shares to 32 qualified awardees on 17December 2018. Independent directors and the Supervisory Committee of the Company clearly consented to this matter. TheSupervisory Committee verified the list of awardees for this grant of restricted shares.
5. On 11 January 2019, the Company completed the registration of the first grant of restricted shares for the 2018 restrictedshare incentive plan, granted 33.10 million restricted shares to 32 qualified awardees, and disclosed the Announcement on theSuccessful First Grant of the 2018 Restricted Stock Incentive Plan. The listing date of restricted shares in the first grant was 15January 2019.
6. On 15 November 2019, the Company convened the 1st Extraordinary Meeting of the 6th Board of Directors and the 1stExtraordinary Meeting of the 6th Supervisory Committee, at which the Proposal on Granting Reserved Restricted Stocks to Awardeeswas reviewed and approved. It was agreed that the Company granted 8 million reserved restricted shares to 14 awardees on 15November 2019, the date determined at the meetings for the grant of reserved restricted shares. Independent directors and theSupervisory Committee of the Company clearly consented to this matter. The Supervisory Committee verified the list of awardees forthis grant of restricted shares.
7. On 22 January 2020, the Company completed the registration of the grant of reserved restricted shares for the 2018 restrictedshare incentive plan, granted 8 million restricted shares to 14 awardees, and disclosed the Announcement on the Successful Grant ofthe Reserved Portion for the 2018 Restricted Share Incentive Plan. The listing date of these reserved restricted shares was 23 January2020.
8. On 23 April 2020, the Company convened the 5th Meeting of the 6th Board of Directors and the 5th Meeting of the 6thSupervisory Committee, at which the Proposal on the Achievement of Lifting the Restriction Conditions in the First LiftingRestriction Period for the First Grant Portion of the 2018 Restricted Share Incentive Plan was reviewed and approved. It was deemedthat the first restriction period of restricted shares in the first grant of this incentive plan had expired, and that the conditions forlifting restrictions such as the business performance indicator had been satisfied to meet the conditions for lifting restrictions in thefirst listing restriction period as mentioned in the Company's 2018 Restricted Share Incentive Plan. Therefore, it was agreed that theCompany processed matters related to restriction lifting for qualified awardees according to the stipulations in the incentive plan afterthe 2019 Annual Report of the Company was reviewed and approved at the 2019 Annual General Meeting. At the same time, theProposal on Repurchase and Cancellation of Some Restricted Stocks was reviewed and approved. Considering that Yang Peng andXie Jinjun, the original awardees, had left the Company for personal reasons, they no longer satisfied the incentive conditionsaccording to relevant provisions in the Company's 2018 Restricted Share Incentive Plan. The Board of Directors of the Companyagreed that the Company repurchased and canceled 1.05 million restricted shares which were granted to the above-mentioned personswith trading restrictions to be lifted. The repurchase price was RMB3.99/share. Independent directors and the Supervisory
Committee of the Company clearly consented to this matter.
9. On 15 May 2020, the Company convened the 2019 Annual General Meeting, at which the 2019 Annual Report of theCompany as well as Its Abstract, the Proposal on Repurchase and Cancellation of Some Restricted Stocks and other proposals werereviewed and approved. Details were published on the Cninfo (http://www.cninfo.com.cn) on 16 May 2020 for the inquiry ofinvestors.
10. On April June 2020, the Company lifted the trading restriction on restricted shares of qualified awardees and disclosed thePrompt Announcement on the Listing and Trading of Stocks with Restriction Conditions Lifted in the First Lifting Restriction Periodfor the First Grant Portion of the 2018 Restricted Share Incentive Plan (2020-032). The date of listing and trading of these stockswith restriction conditions lifted was 9 June 2020.
11. On 13 July 2020, upon the review and confirmation of Shenzhen Branch of China Securities Depository and ClearingCorporation Limited, the Company completed the repurchase and cancellation of some restricted shares, after which the total sharecapital of the Company changed to 2,683,358,689 shares. The Announcement on Successful Repurchase and Cancellation of SomeRestricted Stocks (2020-033) was disclosed.
12. On 15 January 2021, the Proposal on the Achievement of Lifting the Restriction Conditions in the First Lifting RestrictionPeriod for the First Grant Portion of the 2018 Restricted Share Incentive Plan was deliberated and approved at the 2nd ExtraordinaryMeeting of the 6th Board of Directors and the 2nd Extraordinary Meeting of the 6th Supervisory Committee. It was believed that thelifting restriction conditions for the restricted shares reserved under the Company's 2018 restricted share incentive plan in the firstlifting restriction period were achieved. It was therefore agreed that the Company would handle matters related to lifting restrictionsfor eligible awardees in accordance with the relevant provisions of the incentive plan after the expiration of the first restriction periodof reserved restricted shares. Independent directors and the Supervisory Committee of the Company clearly consented to this matter.
13. On 25 January 2021, the Company lifted the trading restriction on restricted shares of qualified awardees and disclosed thePrompt Announcement on the Listing and Trading of Stocks with Restriction Conditions Lifted in the First Lifting Restriction Periodfor the Reserved Portion of the 2018 Restricted Share Incentive Plan (2021-007). The date of listing and trading of these stocks withrestriction conditions lifted was 27 January 2021.
XVI Significant Related-Party Transactions
1. Continuing Related-Party Transactions
√ Applicable □ Not applicable
| Related party | Relationship | Type of transacti | Contents of | Pricing principl | Transaction | Total value | As a % of total | Approved | Over the | Method of | Obtainable | Disclosure date | Index to |
| with the Company | on | transaction | e | price | (RMB’0,000) | value of all transactions of the same nature | transaction line (RMB’0,000) | approved line or not | settlement | market price for transactions of the same nature | disclosed information | ||
| Suzhou Gold Mantis 3D Software Co., Ltd. | The parent company’s subsidiary | Purchasing goods or receiving services from the related party | Software and technical services | Market price | 138.14 | 138.14 | 138.14 | Not | In cash | 138.14 | 25 April 2020 | 2020-017 | |
| Suzhou Huizhu Information Technology Co., Ltd. | The parent company’s sub-subsidiary | Purchasing goods or receiving services from the related party | Technical services | Market price | 27.48 | 27.48 | 27.48 | Not | In cash | 27.48 | 25 April 2020 | 2020-017 | |
| Suzhou Gold Mantis Investment Co., Ltd. | The parent company’s subsidiary | Purchasing goods or receiving services from the related party | Consulting services | Market price | 28.82 | 28.82 | 28.82 | Not | In cash | 28.82 | |||
| Delos (Suzhou) Well Technology Ltd. | Minority-owned by the Company | Purchasing goods or receiving | Materials | Market price | 162.14 | 162.14 | 162.14 | Not | In cash | 162.14 | 25 April 2020 | 2020-017 |
| services from the related party | |||||||||||||
| Suzhou BLM Technology Co., Ltd. | The parent company’s sub-subsidiary | Purchasing goods or receiving services from the related party | Equipment and materials | Market price | 92.94 | 92.94 | 92.94 | Not | In cash | 92.94 | |||
| Suzhou LJT Intelligent Technology Co., Ltd. | The parent company’s subsidiary | Purchasing goods or receiving services from the related party | Design charges and materials | Market price | 754.80 | 754.8 | 754.8 | Not | In cash | 754.80 | 25 April 2020 | 2020-017 | |
| Suzhou Jinhu Property Development Co., Ltd. | The parent company’s subsidiary | Selling goods or rendering services to the related party | Decoration and curtain wall engineering, and design | Market price | 5,296.96 | 5,296.96 | 5,296.96 | Not | In cash | 5,296.96 | 23 May 2018 | 2018-015、2018-025 | |
| Suzhou Jinbai Hotel Management Co., Ltd. | The parent company’s sub-subsidiary | Selling goods or rendering services to the related party | Decoration engineering | Market price | 1,544.07 | 1,544.07 | 1,544.07 | Not | In cash | 1,544.07 | 23 May 2018 | 2018-015、2018-025 | |
| Zhejiang | Formerl | Selling | Decorati | Market | 112.55 | 112.55 | 112.55 | Not | In cash | 112.55 | 25 April | 2020-0 |
| Tianyu Commercial Operation Management Co., Ltd. | y minority-owned by the Company | goods or rendering services to the related party | on engineering, and design | price | 2020 | 17 | |||||||
| Suzhou LJT Intelligent Technology Co., Ltd. | The parent company’s subsidiary | Selling goods or rendering services to the related party | Decoration engineering, and equipment | Market price | -48.21 | -48.21 | -48.21 | Not | In cash | -48.21 | 25 April 2020 | 2020-017 | |
| Delos (Suzhou) Well Technology Ltd. | Minority-owned by the Company | Selling goods or rendering services to the related party | Decoration engineering | Market price | 11.01 | 11.01 | 11.01 | Not | In cash | 11.01 | 25 April 2020 | 2020-017 | |
| Suzhou Gold Mantis Culture Development Co., Ltd. | Minority-owned by the parent company | Selling goods or rendering services to the related party | Landscaping, and property services | Market price | 44.65 | 44.65 | 44.65 | Not | In cash | 44.65 | |||
| Total | -- | -- | 8,165.35 | -- | 8,165.35 | -- | -- | -- | -- | -- | |||
| Large-amount sales return in detail | N/A | ||||||||||||
| Give the actual situation in the Reporting Period (if any) where an estimate had been made for the total value of continuing related-party transactions by type to occur in the | The total value of continuing transactions between the Company and related parties LJT, Delos (Suzhou), Zhejiang Tianyu, 3D Software, and Huizhu Technology stood at RMB11.5791 million in the Reporting Period. | ||||||||||||
| Reporting Period | |
| Reason for any significant difference between the transaction price and the market reference price (if applicable) | N/A |
Notes:
1. The Company convened the 2017 Annual General Meeting on 22 May 2018, at which the Proposal on the Proposed Signingof Decoration Engineering Contracts and Related-Party Transactions was reviewed and approved. It was agreed that the Companyand its subsidiaries within the scope of consolidated statements would sign several contracts of architectural decoration design andconstruction with Suzhou Jinhu Real Estate Development Co., Ltd. according to the needs of business development, and providedesign and construction services such as hotel decoration, apartment decoration, curtain wall and landscape design and constructionfor Park Hyatt Suzhou. The total amount shall not exceed RMB540,000,000. For details, please refer to the Company'sannouncements numbered 2018-015 and 2018-025. According to the authorization of the 2017 Annual General Meeting and thecontracts signed between the Company and Suzhou Jinhu Real Estate Development Co., Ltd., in 2020, the Company (including itssubsidiaries) carried out related-party transactions of decoration services with Suzhou Jinhu Real Estate Development Co., Ltd.(including its subsidiaries) for the Park Hyatt Suzhou Project with an amount of RMB68,410,300.
2. In 2020, the Company carried out related-party transactions with Suzhou Gold Mantis Investment Co., Ltd., Suzhou Bro&MTechnology Co., Ltd. and Suzhou Gold Mantis Culture Development Co., Ltd with a total amount of RMB1,664,100, which fellwithin the permission scope of the General Manager. These transactions had been reviewed and approved by the General Manager inaccordance with the Company's Related-Party Transaction Policy.
2. Related-Party Transactions Regarding Purchase or Sales of Assets or Equity Investments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Related-Party Transactions Regarding Joint Investments in Third Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
4. Amounts Due to and from Related Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
5. Other Significant Related-Party Transactions
√ Applicable □ Not applicable
(1) Leases with Related Parties
① In accordance with the Property Lease Agreement signed between the Company and Suzhou Gold Mantis Enterprise(Group) Co., Ltd., Gold Mantis Group leased an office building area of 272.12 square meters from the Company, with an annualrental of RMB189,000. The Company collected actual rental of RMB189,000 in 2020 and RMB189,000 in 2019.
② In accordance with the Property Lease Agreement signed between the Company and Suzhou Gold Mantis Investment Co.,Ltd., Suzhou Gold Mantis Investment Co., Ltd. leased an office building area of 100 square meters from the Company, with anannual rental of RMB42,000. The Company collected actual rental of RMB42,000 in 2020 and RMB42,000 in 2019.
③ In accordance with the Property Lease Agreement signed between the Company and Suzhou Bro&M Technology Co., Ltd.,Suzhou Bro&M Technology Co., Ltd. leased an office building area of 25 square meters from the Company, with an annual rental ofRMB10,500. The Company collected actual rental of RMB10,500 in 2020 and RMB10,500 in 2019.
④ In accordance with the Property Lease Agreement signed between the Company and Suzhou Jinhu Real Estate DevelopmentCo. Ltd., Suzhou Jinhu Real Estate Development Co. Ltd. leased an office building area of 100 square meters from the Company,with an annual rental of RMB42,000. The Company collected actual rental of RMB42,000 in 2020 and RMB42,000 in 2019.
⑤ In accordance with the Property Lease Agreement signed between the Company and Suzhou Gold Cloud InformationTechnology Co., Ltd., Suzhou Gold Cloud Information Technology Co., Ltd. leased an office building area of 25 square meters fromthe Company, with an annual rental of RMB10,500. The Company collected actual rental of RMB10,500 in 2020 and RMB10,500 in2019.
⑥ In accordance with the Property Lease Agreement signed between the Company and Jiangsu Dongyi Software TechnologyCo., Ltd., Jiangsu Dongyi Software Technology Co., Ltd. leased an office building area of 25 square meters from the Company, withan annual rental of RMB10,500. The Company collected actual rental of RMB10,500 in 2020 and RMB10,500 in 2019.
⑦ In accordance with the Property Lease Agreement signed between the Company and Suzhou Gold Mantis 3D Software Co.,Ltd., Suzhou Gold Mantis 3D Software Co., Ltd. leased an office building area of 200 square meters from the Company, with anannual rental of RMB84,000. The lease agreement was signed in January 2017. The Company collected actual rental of RMB84,000in 2020 and RMB84,000 in 2019.
⑧ In accordance with the Property Lease Agreement signed between the Company and Suzhou Huizhu InformationTechnology Co., Ltd., Suzhou Huizhu Information Technology Co., Ltd. leased an office building area of 200 square meters from theCompany, with an annual rental of RMB84,000. The lease agreement was signed in January 2017. The Company collected actualrental of RMB84,000 in 2020 and RMB84,000 in 2019.
⑨ In accordance with the Property Lease Agreement signed between the Company and Agile Intelligent Technology Co., Ltd.,Agile Intelligent Technology Co., Ltd. leased an office building area of 5 square meters and an office building area of 2,557.39square meters from the Company, with an annual rental of RMB4,500 and RMB1,074,100, respectively. The Company collectedactual annual rental of RMB4,500 and RMB1,074,100 in 2020, and actual annual rental of RMB4,500 and RMB1,074,100 in 2019.⑩ In accordance with the Property Lease Agreement signed between the Company and Suzhou Gold Mantis Yihe TechnologyCo., Ltd., Suzhou Gold Mantis Yihe Technology Co., Ltd. leased an office building area of 500 square meters from the Company,with an annual rental of RMB210,000. The Company collected actual rental of RMB210,000 in 2020 and RMB210,000 in 2019.? In accordance with the Property Lease Agreement signed between the Company and Suzhou Jinnuo Commercial FactoringCo., Ltd., Suzhou Jinnuo Commercial Factoring Co., Ltd. leased an office building area of 30 square meters from the Company, withan annual rental of RMB12,600. The Company collected actual rental of RMB12,600 in 2020 and RMB12,600 in 2019.? In accordance with the Property Lease Agreement signed between the Company and Suzhou Gold Mantis CharityFoundation, Suzhou Gold Mantis Charity Foundation leased an office building area of 25 square meters from the Company, with anannual rental of RMB10,500. The lease agreement was signed in January 2017. The Company collected actual rental of RMB10,500in 2020 and RMB10,500 in 2019.? In accordance with the Property Lease Agreement signed between the subsidiary Meiruide and Suzhou Nuojin InvestmentCo., Ltd., Suzhou Nuojin Investment Co., Ltd. leased an office building area of 50 square meters from Meiruide, with an annualrental of RMB21,000. The lease agreement was signed in January 2017. The Company collected actual rental of RMB21,000 in 2020and RMB21,000 in 2019.
? In accordance with the Property Lease Agreement signed between the Company and Suzhou Gold Gain Investment Co.,Ltd., Suzhou Gold Gain Investment Co., Ltd. leased a factory building area of 50 square meters from the Company, with an annualrental of RMB3,800. The Company collected actual rental of RMB3,800 in 2020 and RMB3,800 in 2019.
? In accordance with the Property Lease Agreement signed between the Company and Suzhou Jinbo Hotel Management Co.,Ltd., Suzhou Jinbo Hotel Management Co., Ltd. leased an office building area of 20 square meters from the Company, with an annualrental of RMB8,400. The lease agreement was signed in March 2019 and expired in April 2020. The Company collected actual rentalof RMB2,800 in 2020 and RMB7,000 in 2019.
? In accordance with the Property Lease Agreement signed between the Company and Delos (Suzhou) Health Technology Co.,Ltd., Delos (Suzhou) Health Technology Co., Ltd. leased an office building area of 60 square meters from the Company, with anannual rental of RMB25,200. The lease agreement was signed in January 2019 and expired in June 2020. The Company collectedactual rental of RMB12,600 in 2020 and RMB25,200 in 2019.
? In accordance with the Property Lease Agreement signed between the Company and Suzhou Gold Mantis Culture
Development Co., Ltd., Suzhou Gold Mantis Culture Development Co., Ltd. leased an office building area of 1,363.21 square metersand an office building area of 2,684.00 square meters from the Company, with an annual rental of RMB572,500 and RMB644,200,respectively. The Company collected actual annual rental of RMB524,800 and RMB590,500 in 2020, and actual annual rental ofRMB572,500 and RMB644,200 in 2019.
(2) Other Related-party Transactions
① In 2020, the Company as well as its subsidiaries including Meiruide, Gold Mantis Curtain Wall, Gold Mantis Landscape,Refined Decoration & Technology, Gold Mantis Art, Jindejin Construction and Huali Jinshi paid Suzhou Virtues ConstructionProfessional Training School training fees of RMB1,707,800 in total; the Company as well as its subsidiaries including Meiruide,Gold Mantis Curtain Wall and Gold Mantis Landscape paid Virtues Professional Training School of Suzhou Industrial Park trainingfees of RMB188,800 in total.
② In December 2020, the Company donated RMB3 million to Suzhou Gold Mantis Charity Foundation.
The amount of related-party transactions including the above-mentioned lease with related parties and training fees of relatedparties totaled RMB7,836,300, which fell within the permission scope of the General Manager. These transactions had been reviewedand approved by the General Manager in accordance with the Company's Related-Party Transaction Policy.XVII Significant Contracts and Execution thereof
1. Entrustment, Contracting and Leases
(1) Entrustment
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(2) Contracting
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(3) Leases
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Significant Guarantees
√ Applicable □ Not applicable
(1) Particulars about Guarantees
Unit: RMB'0,000
| Guarantees provided by the Company as the parent and its subsidiaries for external parties (exclusive of those for subsidiaries) | ||||||||
| Obligor | Disclosure date of the guarantee line announcement | Line of guarantee | Actual occurrence date | Actual guarantee amount | Type of guarantee | Term of guarantee | Liability executed or not | Guarantee for a related party or not |
| Guarantees provided by the Company as the parent for its subsidiaries | ||||||||
| Obligor | Disclosure date of the guarantee line announcement | Line of guarantee | Actual occurrence date | Actual guarantee amount | Type of guarantee | Term of guarantee | Liability executed or not | Guarantee for a related party or not |
| Gold Mantis Refined Decoration & Technology | 23 May 2018 | 70,000 | 27 June 2018 | 5,000 | Joint-liability | 2018.6.27-2019.6.27 | Yes | Not |
| Gold Mantis Refined Decoration & Technology | 23 May 2018 | 70,000 | 20 December 2018 | 1,097.28 | Joint-liability | 2018.12.20-2019.12.20 | Yes | Not |
| Gold Mantis Refined Decoration & Technology | 23 May 2018 | 70,000 | 5 May 2019 | 3,000 | Joint-liability | 2019.5.5-2020.1.14 | Yes | Not |
| Gold Mantis Refined Decoration & Technology | 21 May 2019 | 70,000 | 11 June 2019 | 10,000 | Joint-liability | 2019.6.11-2020.6.10 | Yes | Not |
| Gold Mantis Refined Decoration & Technology | 21 May 2019 | 70,000 | 4 July 2019 | 30,000 | Joint-liability | 2019.7.4-2020.7.4 | Yes | Not |
| Gold Mantis Refined Decoration & Technology | 21 May 2019 | 70,000 | 11 December 2019 | 5,000 | Joint-liability | 2019.12.11-2020.12.11 | Yes | Not |
| Gold Mantis Landscape | 23 May 2018 | 150,000 | 26 June 2018 | 15,000 | Joint-liability | 2018.6.26-2019.6.26 | Yes | Not |
| Gold Mantis Landscape | 23 May 2018 | 150,000 | 25 January 2019 | 5,000 | Joint-liability | 2019.1.25-2020.1.24 | Yes | Not |
| Gold Mantis Landscape | 23 May 2018 | 150,000 | 13 May 2019 | 4,000 | Joint-liability | 2019.5.13-2020.5.13 | Yes | Not |
| Gold Mantis Landscape | 23 May 2018 | 150,000 | 13 May 2019 | 6,000 | Joint-liability | 2019.5.13-2020.4.15 | Yes | Not |
| Gold Mantis Landscape | 23 May 2018 | 150,000 | 17 May 2019 | 1,000 | Joint-liability | 2019.5.17-2020.5.15 | Yes | Not |
| Gold Mantis Curtain Wall | 24 May 2017 | 200,000 | 12 December 2017 | 20,000 | Joint-liability | 2017.12.12-2020.12.11 | Yes | Not |
| Gold Mantis Curtain Wall | 23 May 2018 | 280,000 | 27 June 2018 | 10,000 | Joint-liability | 2018.6.27-2019.4.19 | Yes | Not |
| Gold Mantis Curtain Wall | 23 May 2018 | 280,000 | 30 July 2018 | 37,200 | Joint-liability | 2018.7.30-2019.7.29 | Yes | Not |
| Gold Mantis Curtain Wall | 23 May 2018 | 280,000 | 13 May 2019 | 10,000 | Joint-liability | 2019.5.13-2020.5.13 | Yes | Not |
| Gold Mantis Curtain Wall | 21 May 2019 | 320,000 | 31 May 2019 | 5,000 | Joint-liability | 2019.5.31-2020.5.31 | Yes | Not |
| Gold Mantis Curtain Wall | 21 May 2019 | 320,000 | 18 June 2019 | 10,000 | Joint-liability | 2019.6.18-2020.6.17 | Yes | Not |
| Gold Mantis Curtain Wall | 21 May 2019 | 320,000 | 16 September 2019 | 15,670 | Joint-liability | 2019.9.16-2020.9.15 | Yes | Not |
| Gold Mantis Curtain Wall | 21 May 2019 | 320,000 | 14 January 2020 | 20,000 | Joint-liability | 2020.1.14-2021.1.13 | Yes | Not |
| Gold Mantis Curtain Wall | 23 May 2018 | 280,000 | 13 May 2019 | 20,000 | Joint-liability | 2019.5.13-2020.4.15 | Yes | Not |
| Meiruide | 23 May 2018 | 280,000 | 18 January 2019 | 20,000 | Joint-liability | 2019.1.18-2020.1.17 | Yes | Not |
| Meiruide | 23 May 2018 | 280,000 | 9 April 2019 | 30,000 | Joint-liability | 2019.4.9-2020.4.8 | Yes | Not |
| Meiruide | 23 May 2018 | 280,000 | 18 April 2019 | 10,000 | Joint-liability | 2019.4.18-2020.4.17 | Yes | Not |
| Meiruide | 23 May 2018 | 280,000 | 13 May 2019 | 30,000 | Joint-liability | 2019.5.13-2020.5.13 | Yes | Not |
| Meiruide | 23 May 2018 | 280,000 | 17 May 2019 | 25,000 | Joint-liability | 2019.5.17-2020.5.16 | Yes | Not |
| Meiruide | 21 May 2019 | 360,000 | 10 June 2019 | 5,040 | Joint-liability | 2019.6.10-2020.6.10 | Yes | Not |
| Meiruide | 21 May 2019 | 360,000 | 10 June 2019 | 4,419.95 | Joint-liability | 2019.6.10-2020.6.10 | Yes | Not |
| Meiruide | 21 May 2019 | 360,000 | 9 September 2019 | 7,000 | Joint-liability | 2019.9.9-2020.9.8 | Yes | Not |
| Meiruide | 21 May 2019 | 360,000 | 27 November 2019 | 1,730 | Joint-liability | 2019.11.27-2020.11.27 | Yes | Not |
| Meiruide | 21 May 2019 | 360,000 | 15 December 2019 | 15,000 | Joint-liability | 2019.12.15-2020.12.14 | Yes | Not |
| Meiruide | 21 May 2019 | 360,000 | 2 January 2020 | 15,000 | Joint-liability | 2020.1.2-2020.12.31 | Yes | Not |
| Meiruide | 21 May 2019 | 360,000 | 24 April 2020 | 10,000 | Joint-liability | 2020.4.24-2021.4.24 | Yes | Not |
| Meiruide | 23 May 2018 | 280,000 | 26 June 2018 | 30,000 | Joint-liability | 2018.6.26-2019.6.26 | Yes | Not |
| Meiruide | 21 May 2019 | 360,000 | 4 July 2019 | 40,000 | Joint-liability | 2019.7.4-2020.7.4 | Yes | Not |
| Gold Mantis Art | 23 May 2018 | 10,000 | 7 August 2018 | 1,200 | Joint-liability | 2018.8.7-2019.8.6 | Yes | Not |
| Gold Mantis Art | 21 May 2019 | 10,000 | 24 July 2019 | 1,200 | Joint-liability | 2019.7.24-2020.7.23 | Yes | Not |
| Gold Mantis Art | 16 May 2020 | 10,000 | 5 June 2020 | 1,000 | Joint-liability | 2020.6.5-2021.6.5 | Yes | Not |
| Gold Mantis Art | 16 May 2020 | 10,000 | 27 July 2020 | 1,200 | Joint-liability | 2020.7.27-2021.7.26 | Yes | Not |
| Gold Mantis Supply Chain | 23 May 2018 | 20,000 | 13 May 2019 | 5,000 | Joint-liability | 2019.5.13-2020.4.15 | Yes | Not |
| Gold Mantis Supply Chain | 21 May 2019 | 20,000 | 28 August 2019 | 5,000 | Joint-liability | 2019.8.28-2020.8.27 | Yes | Not |
| Gold Mantis Supply Chain | 21 May 2019 | 20,000 | 24 September 2019 | 10,000 | Joint-liability | 2019.9.24-2020.9.24 | Yes | Not |
| Singapore Gold Mantis | 21 May 2019 | 50,000 | 28 August 2019 | 8,500.2 | Joint-liability | 2019.8.28-2020.8.28 | Yes | Not |
| Singapore Gold Mantis | 21 May 2019 | 50,000 | 26 September 2019 | 12,731.22 | Joint-liability | 2019.9.26-2020.9.25 | Yes | Not |
| Gold Mantis Refined Decoration & Technology | 23 May 2018 | 70,000 | 17 May 2019 | 4,050 | Joint-liability | 2019.5.17-2022.5.16 | Not | Not |
| Gold Mantis | 16 May 2020 | 100,000 | 1 June 2020 | 1,500 | Joint-liabil | 2020.6.1-20 | Not | Not |
| Refined Decoration & Technology | ity | 21.5.31 | ||||||
| Gold Mantis Refined Decoration & Technology | 16 May 2020 | 100,000 | 26 October 2020 | 30,000 | Joint-liability | 2020.10.26-2021.10.26 | Not | Not |
| Gold Mantis Refined Decoration & Technology | 16 May 2020 | 100,000 | 9 December 2020 | 8,000 | Joint-liability | 2020.12.9-2021.12.9 | Not | Not |
| Gold Mantis Refined Decoration & Technology | 16 May 2020 | 100,000 | 14 December 2020 | 10,000 | Joint-liability | 2020.12.14--2021.12.13 | Not | Not |
| Gold Mantis Landscape | 21 May 2019 | 150,000 | 18 June 2019 | 5,000 | Joint-liability | 2019.6.18-2020.6.17 | Not | Not |
| Gold Mantis Landscape | 21 May 2019 | 150,000 | 4 July 2019 | 15,000 | Joint-liability | 2019.7.4-2020.7.4 | Not | Not |
| Gold Mantis Landscape | 21 May 2019 | 150,000 | 22 April 2020 | 6,000 | Joint-liability | 2020.4.22-2021.4.21 | Not | Not |
| Gold Mantis Landscape | 16 May 2020 | 150,000 | 23 September 2020 | 8,000 | Joint-liability | 2020.9.23-2021.9.23 | Not | Not |
| Gold Mantis Curtain Wall | 23 May 2018 | 280,000 | 31 May 2018 | 20,000 | Joint-liability | 2018.5.31-2019.5.30 | Not | Not |
| Gold Mantis Curtain Wall | 21 May 2019 | 320,000 | 15 August 2019 | 37,200 | Joint-liability | 2019.8.15-2020.8.14 | Not | Not |
| Gold Mantis Curtain Wall | 21 May 2019 | 320,000 | 11 December 2019 | 10,000 | Joint-liability | 2019.12.11-2020.12.11 | Not | Not |
| Gold Mantis Curtain Wall | 16 May 2020 | 320,000 | 18 May 2020 | 10,000 | Joint-liability | 2020.5.18-2021.5.18 | Not | Not |
| Gold Mantis Curtain Wall | 16 May 2020 | 320,000 | 5 June 2020 | 20,000 | Joint-liability | 2020.6.5-2021.5.13 | Not | Not |
| Gold Mantis Curtain Wall | 16 May 2020 | 320,000 | 18 June 2020 | 5,000 | Joint-liability | 2020.6.18-2021.6.18 | Not | Not |
| Gold Mantis Curtain Wall | 16 May 2020 | 320,000 | 24 August 2020 | 37,200 | Joint-liability | 2020.8.24-2021.8.23 | Not | Not |
| Gold Mantis Curtain Wall | 16 May 2020 | 320,000 | 4 November 2020 | 6,000 | Joint-liability | 2020.11.4-2021.8.25 | Yes | Not |
| Gold Mantis Curtain Wall | 16 May 2020 | 320,000 | 23 September 2020 | 8,000 | Joint-liability | 2020.9.23-2021.9.23 | Not | Not |
| Gold Mantis Curtain Wall | 16 May 2020 | 320,000 | 1 December 2020 | 17,000 | Joint-liability | 2020.12.1-2021.12.1 | Not | Not |
| Gold Mantis Curtain Wall | 16 May 2020 | 320,000 | 10 December 2020 | 15,000 | Joint-liability | 2020.12.10-2021.12.9 | Not | Not |
| Meiruide | 23 May 2018 | 280,000 | 26 October 2018 | 25,000 | Joint-liability | 2018.10.26-2019.11.25 | Not | Not |
| Meiruide | 23 May 2018 | 280,000 | 13 May 2019 | 20,000 | Joint-liability | 2019.5.13-2020.4.15 | Not | Not |
| Meiruide | 21 May 2019 | 360,000 | 28 May 2019 | 10,000 | Joint-liability | 2019.5.28-2020.5.27 | Not | Not |
| Meiruide | 21 May 2019 | 360,000 | 8 January 2020 | 10,000 | Joint-liability | 2020.1.8-2021.1.8 | Not | Not |
| Meiruide | 21 May 2019 | 360,000 | 17 March 2020 | 10,000 | Joint-liability | 2020.3.17-2021.3.17 | Not | Not |
| Meiruide | 16 May 2020 | 420,000 | 18 May 2020 | 20,000 | Joint-liability | 2020.5.18-2021.5.18 | Not | Not |
| Meiruide | 16 May 2020 | 420,000 | 5 June 2020 | 20,000 | Joint-liability | 2020.6.5-2021.5.13 | Not | Not |
| Meiruide | 16 May 2020 | 420,000 | 11 June 2020 | 10,000 | Joint-liability | 2020.6.11-2021.6.11 | Not | Not |
| Meiruide | 16 May 2020 | 420,000 | 10 August 2020 | 25,000 | Joint-liability | 2020.8.10-2021.8.9 | Not | Not |
| Meiruide | 16 May 2020 | 420,000 | 23 September 2020 | 10,000 | Joint-liability | 2020.9.23-2021.9.23 | Not | Not |
| Meiruide | 16 May 2020 | 420,000 | 24 September 2020 | 20,000 | Joint-liability | 2020.9.24-2021.9.24 | Not | Not |
| Meiruide | 16 May 2020 | 420,000 | 26 October 2020 | 40,000 | Joint-liability | 2020.10.26-2021.10.26 | Not | Not |
| Gold Mantis Supply Chain | 21 May 2019 | 20,000 | 28 August 2019 | 5,000 | Joint-liability | 2019.8.28-2020.8.27 | Not | Not |
| Gold Mantis Supply Chain | 21 May 2019 | 20,000 | 24 September 2019 | 10,000 | Joint-liability | 2019.9.24-2020.9.24 | Not | Not |
| Gold Mantis Supply Chain | 21 May 2019 | 20,000 | 8 April 2020 | 3,000 | Joint-liability | 2020.4.8-2021.4.7 | Not | Not |
| Gold Mantis Supply Chain | 16 May 2020 | 30,000 | 5 June 2020 | 6,000 | Joint-liability | 2020.6.5-2021.5.13 | Not | Not |
| Gold Mantis Supply Chain | 16 May 2020 | 30,000 | 26 May 2020 | 5,000 | Joint-liability | 2020.5.26-2021.5.25 | Not | Not |
| Singapore Gold Mantis | 16 May 2020 | 50,000 | 28 August 2020 | 8,266.92 | Joint-liability | 2020.8.28-2021.8.28 | Not | Not |
| Singapore Gold Mantis | 16 May 2020 | 50,000 | 26 September 2020 | 12,261.78 | Joint-liability | 2020.9.26-2021.9.25 | Not | Not |
| Jijia Materials | 16 May 2020 | 50,000 | 5 June 2020 | 6,000 | Joint-liability | 2020.6.5-2021.5.13 | Not | Not |
| Gold Mantis East China | 16 May 2020 | 10,000 | 3 July 2020 | 1,000 | Joint-liability | 2020.7.3-2021.7.3 | Not | Not |
| Total approved line for such guarantees in the Reporting Period (B1) | 1,433,000 | Total actual amount of such guarantees in the Reporting Period (B2) | 1,071,467.35 | |||||
| Total approved line for such guarantees at the end of the Reporting Period (B3) | 1,433,000 | Total actual balance of such guarantees at the end of the Reporting Period (B4) | 549,478.7 | |||||
| Guarantees provided between subsidiaries | ||||||||
| Obligor | Disclosure date of the guarantee line announcement | Line of guarantee | Actual occurrence date | Actual guarantee amount | Type of guarantee | Term of guarantee | Liability executed or not | Guarantee for a related party or not |
| Total guarantee amount (total of the three kinds of guarantees above) | ||||||||
| Total guarantee line approved in the Reporting Period (A1+B1+C1) | 1,433,000 | Total actual guarantee amount in the Reporting Period (A2+B2+C2) | 1,071,467.35 | |||||
| Total approved guarantee line at the end of the Reporting Period (A3+B3+C3) | 1,433,000 | Total actual guarantee balance at the end of the Reporting Period (A4+B4+C4) | 549,478.7 | |||||
| Total actual guarantee amount (A4+B4+C4) as a % of the Company’s net assets | 32.31% | |||||||
| Of which: | ||||||||
| Balance of guarantees provided for shareholders, the actual controller and their related parties (D) | 0 | |||||||
| Balance of debt guarantees provided directly or indirectly for entities with an over 70% debt/asset ratio (E) | 0 | |||||||
| Amount by which the total guarantee amount exceeds 50% of the Company’s net assets (F) | 0 |
| Total of the three amounts above (D+E+F) | 0 |
| Liabilities executed in the Reporting Period and possibility of having to execute joint liability on outstanding guarantees (if any) | N/A |
| Irregularities in the provision of guarantees to external parties (if any) | N/A |
(2) Irregularities in Provision of Guarantees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Cash Entrusted to Other Entities for Management
(1) Cash Entrusted for Wealth Management
√ Applicable □ Not applicable
Overview of wealth management entrustments in the Reporting Period:
Unit: RMB’0,000
| Type | Funding source | Amount | Undue amount | Unrecovered overdue amount |
| Bank’s wealth management product | Self-funded | 216,060 | 216,060 | 0 |
| Total | 216,060 | 216,060 | 0 | |
High-risk wealth management transactions with a significant single amount or with low security, low liquidity and no principalprotection:
√ Applicable □ Not applicable
Unit: RMB’0,000
| Consignee | Type of consignee | Type of product | Amount | Funding source | Start date | End date | Investment direction | Way of repayment | Reference annualized rate of return | Expected returns (if any) | Actual gain/loss in the Reporting Period | Recovery/payment of gain/loss in the Reporting Period | Impairment allowance (if any) | Through the statutory procedure or not | Continuing wealth management plans or not | Summary and index to relevant information (if any) |
| Suzhou branch | Bank | Principal-prot | 50,000 | Self-funded | 28 Dece | * | Low-risk | Principal | 1.48% | 17.59 | 4.69 | - | Yes | Yes |
| of CITIC Bank | ected with floating income | mber 2020 | wealth management product | repayment with interest upon maturity | ||||||||||||
| Business Department of the Suzhou branch of CITIC Bank | Bank | Principal-protected with floating income | 15,000 | Self-funded | 31 December 2020 | * | Low-risk wealth management product | Principal repayment with interest upon maturity | 1.48% | - | Yes | Yes | ||||
| Suzhou branch of CITIC Bank | Bank | Principal-protected with floating income | 10,000 | Self-funded | 31 December 2020 | * | Low-risk wealth management product | Principal repayment with interest upon maturity | 3.10% | - | Yes | Yes | ||||
| Suzhou branch of CITIC Bank | Bank | Principal-protected with floating income | 8,960 | Self-funded | 31 December 2020 | * | Low-risk wealth management product | Principal repayment with interest upon maturity | 1.48% | 1.89 | 0.34 | - | Yes | Yes | ||
| Gusu branch of Bank of Communications | Bank | Principal-protected with floating income | 8,000 | Self-funded | 30 December 2020 | * | Low-risk wealth management product | Principal repayment with interest upon maturity | 1.59% | 1.15 | 0.35 | - | Yes | Yes |
| Suzhou branch of Bank of Shanghai | Bank | Principal-protected with floating income | 7,000 | Self-funded | 24 December 2020 | * | Low-risk wealth management product | Principal repayment with interest upon maturity | 3.50% | 5.36 | 1.34 | - | Yes | Yes | ||
| Suzhou branch of Bank of China | Bank | Principal-protected with floating income | 5,000 | Self-funded | 26 October 2020 | * | Low-risk wealth management product | Principal repayment with interest upon maturity | 1.50% | 38.89 | 13.56 | - | Yes | Yes | ||
| Suzhou branch of CITIC Bank | Bank | Principal-protected with floating income | 5,000 | Self-funded | 26 October 2020 | * | Low-risk wealth management product | Principal repayment with interest upon maturity | 2.75% | 51.45 | 24.86 | - | Yes | Yes | ||
| Suzhou branch of Bank of China | Bank | Principal-protected with floating income | 5,000 | Self-funded | 6 November 2020 | * | Low-risk wealth management product | Principal repayment with interest upon maturity | 1.50% | 32.59 | 11.3 | - | Yes | Yes | ||
| Suzhou branch of Industrial Bank | Bank | Principal-protected with floating income | 5,000 | Self-funded | 5 November 2020 | * | Low-risk wealth management product | Principal repayment with interest upon | 1.50% | 32.15 | 11.51 | - | Yes | Yes |
| maturity | ||||||||||||||||
| Suzhou branch of Bank of Shanghai | Bank | Principal-protected with floating income | 5,000 | Self-funded | 19 November 2020 | * | Low-risk wealth management product | Principal repayment with interest upon maturity | 3.20% | 30.36 | 18.41 | - | Yes | Yes | ||
| Gusu branch of Bank of Communications | Bank | Principal-protected with floating income | 5,000 | Self-funded | 10 December 2020 | * | Low-risk wealth management product | Principal repayment with interest upon maturity | 1.56% | 23.45 | 4.49 | - | Yes | Yes | ||
| Gusu branch of Bank of Communications | Bank | Principal-protected with floating income | 5,000 | Self-funded | 10 December 2020 | * | Low-risk wealth management product | Principal repayment with interest upon maturity | 1.56% | 23.45 | 4.49 | - | Yes | Yes | ||
| Suzhou branch of Bank of China | Bank | Principal-protected with floating income | 5,000 | Self-funded | 21 December 2020 | * | Low-risk wealth management product | Principal repayment with interest upon maturity | 1.50% | 6.95 | 2.05 | - | Yes | Yes | ||
| Suzhou branch of Bank of Shangha | Bank | Principal-protected with floatin | 5,000 | Self-funded | 10 December 2020 | * | Low-risk wealth management | Principal repayment with | 3.20% | 8.56 | 2.88 | - | Yes | Yes |
| i | g income | product | interest upon maturity | |||||||||||||
| Suzhou branch of CITIC Bank | Bank | Principal-protected with floating income | 5,000 | Self-funded | 31 December 2020 | * | Low-risk wealth management product | Principal repayment with interest upon maturity | 1.48% | - | Yes | Yes | ||||
| Gusu branch of Bank of Communications | Bank | Principal-protected with floating income | 5,000 | Self-funded | 21 December 2020 | * | Low-risk wealth management product | Principal repayment with interest upon maturity | 3.00% | 14.59 | 3.21 | - | Yes | Yes | ||
| Hengjing branch of Bank of China | Bank | Principal-protected with floating income | 5,000 | Self-funded | 10 December 2020 | * | Low-risk wealth management product | Principal repayment with interest upon maturity | 3.10% | 26.48 | 7.3 | - | Yes | Yes | ||
| Duyun branch of Agricultural Bank of China | Bank | Principal-protected with floating income | 4,300 | Self-funded | 30 October 2020 | * | Low-risk wealth management product | Principal repayment with interest upon maturity | 2.30% | 29.39 | 11.55 | - | Yes | Yes | ||
| Suzhou branch of | Bank | Principal-protected | 4,300 | Self-funded | 11 November | * | Low-risk wealth | Principal repay | 2.40% | 27.36 | 14.14 | - | Yes | Yes |
| Industrial Bank | with floating income | 2020 | management product | ment with interest upon maturity | ||||||||||||
| Duyun branch of Agricultural Bank of China | Bank | Principal-protected with floating income | 4,000 | Self-funded | 30 November 2020 | * | Low-risk wealth management product | Principal repayment with interest upon maturity | 2.30% | 21.39 | 5.46 | - | Yes | Yes | ||
| Suzhou Industrial Park branch of Bank of Shanghai | Bank | Principal-protected with floating income | 3,000 | Self-funded | 5 November 2020 | * | Low-risk wealth management product | Principal repayment with interest upon maturity | 3.16% | 28.76 | 14.54 | - | Yes | Yes | ||
| Suzhou branch of Industrial Bank | Bank | Principal-protected with floating income | 3,000 | Self-funded | 18 December 2020 | * | Low-risk wealth management product | Principal repayment with interest upon maturity | 1.50% | 7.35 | 2.96 | - | Yes | Yes | ||
| Suzhou branch of China Merchants Bank | Bank | Principal-protected with floating income | 3,000 | Self-funded | 18 December 2020 | * | Low-risk wealth management product | Principal repayment with interest upon maturity | 2.80% | 8.26 | 2.99 | - | Yes | Yes | ||
| Duyun | Bank | Princip | 2,700 | Self-fu | 20 | * | Low-ri | Princi | 2.30% | 13.59 | 8.41 | - | Yes | Yes |
| branch of Agricultural Bank of China | al-protected with floating income | nded | October 2020 | sk wealth management product | pal repayment with interest upon maturity | |||||||||||
| Suzhou branch of Bank of China | Bank | Principal-protected with floating income | 2,600 | Self-funded | 16 October 2020 | * | Low-risk wealth management product | Principal repayment with interest upon maturity | 3.20% | 32.56 | 17.32 | - | Yes | Yes | ||
| Suzhou branch of Ping An Bank | Bank | Principal-protected with floating income | 2,500 | Self-funded | 23 December 2020 | * | Low-risk wealth management product | Principal repayment with interest upon maturity | 1.65% | 2.95 | 0.9 | - | Yes | Yes | ||
| Suzhou branch of Ping An Bank | Bank | Principal-protected with floating income | 2,500 | Self-funded | 23 December 2020 | * | Low-risk wealth management product | Principal repayment with interest upon maturity | 1.65% | 2.95 | 0.9 | - | Yes | Yes | ||
| Suzhou branch of Bank of China | Bank | Principal-protected with floating income | 2,400 | Self-funded | 16 October 2020 | * | Low-risk wealth management product | Principal repayment with interest upon maturi | 3.20% | 30.28 | 15.99 | - | Yes | Yes |
| ty | ||||||||||||||||
| Business Department of Suning Bank | Bank | Principal-protected with floating income | 2,000 | Self-funded | 20 February 2020 | * | Low-risk wealth management product | Principal repayment with interest upon maturity | 2.00% | 85.36 | 32.57 | - | Yes | Yes | ||
| Duyun branch of Agricultural Bank of China | Bank | Principal-protected with floating income | 2,000 | Self-funded | 20 November 2020 | * | Low-risk wealth management product | Principal repayment with interest upon maturity | 2.30% | 8.95 | 3.58 | - | Yes | Yes | ||
| Suzhou Zhongxin sub-branch of China Merchants Bank | Bank | Principal-protected with floating income | 2,000 | Self-funded | 11 December 2020 | * | Low-risk wealth management product | Principal repayment with interest upon maturity | 1.15% | 6.54 | 1.26 | - | Yes | Yes | ||
| Suzhou branch of Industrial Bank | Bank | Principal-protected with floating income | 1,150 | Self-funded | 23 December 2020 | * | Low-risk wealth management product | Principal repayment with interest upon maturity | 2.40% | 2.28 | 0.6 | - | Yes | Yes | ||
| Suzhou branch of Industrial Bank | Bank | Principal-protected with floating | 1,100 | Self-funded | 19 October 2020 | * | Low-risk wealth management produc | Principal repayment with interes | 2.40% | 9.45 | 5.28 | - | Yes | Yes |
| income | t | t upon maturity | ||||||||||||||
| Business Department of Suning Bank | Bank | Principal-protected with floating income | 1,000 | Self-funded | 20 February 2020 | * | Low-risk wealth management product | Principal repayment with interest upon maturity | 2.00% | 49.56 | 16.28 | - | Yes | Yes | ||
| Suzhou branch of Bank of Shanghai | Bank | Principal-protected with floating income | 1,000 | Self-funded | 5 November 2020 | * | Low-risk wealth management product | Principal repayment with interest upon maturity | 3.16% | 15.56 | 4.85 | - | Yes | Yes | ||
| Linhu sub-branch of Agricultural Bank | Bank | Principal-protected with floating income | 1,000 | Self-funded | 23 December 2020 | * | Low-risk wealth management product | Principal repayment with interest upon maturity | 1.50% | 1.19 | 0.31 | - | Yes | Yes | ||
| Suzhou Industrial Park sub-branch of Bank of Shanghai | Bank | Principal-protected with floating income | 1,000 | Self-funded | 3 November 2020 | * | Low-risk wealth management product | Principal repayment with interest upon maturity | 3.16% | 11.29 | 5.02 | - | Yes | Yes | ||
| Suzhou branch of CITIC | Bank | Principal-protected with | 1,000 | Self-funded | 5 December 2020 | * | Low-risk wealth manag | Principal repayment | 3.65% | 8.27 | 2.6 | - | Yes | Yes |
| Bank | floating income | ement product | with interest upon maturity | |||||||||||||
| Suzhou branch of Industrial Bank | Bank | Principal-protected with floating income | 950 | Self-funded | 21 October 2020 | * | Low-risk wealth management product | Principal repayment with interest upon maturity | 2.40% | 7.36 | 4.44 | - | Yes | Yes | ||
| Suzhou branch of Industrial Bank | Bank | Principal-protected with floating income | 900 | Self-funded | 10 December 2020 | * | Low-risk wealth management product | Principal repayment with interest upon maturity | 2.40% | 4.26 | 1.24 | - | Yes | Yes | ||
| Linhu sub-branch of Agricultural Bank | Bank | Principal-protected with floating income | 800 | Self-funded | 10 October 2020 | * | Low-risk wealth management product | Principal repayment with interest upon maturity | 1.50% | 4.98 | 2.54 | - | Yes | Yes | ||
| Linhu sub-branch of Agricultural Bank | Bank | Principal-protected with floating income | 700 | Self-funded | 10 October 2020 | * | Low-risk wealth management product | Principal repayment with interest upon maturity | 1.50% | 6.58 | 2.23 | - | Yes | Yes | ||
| Linhu sub-bran | Bank | Principal-prot | 700 | Self-funded | 31 Dece | * | Low-risk | Principal | 1.50% | - | Yes | Yes |
| ch of Agricultural Bank | ected with floating income | mber 2020 | wealth management product | repayment with interest upon maturity | ||||||||||||
| Xietang sub-branch of Agricultural Bank | Bank | Principal-protected with floating income | 700 | Self-funded | 10 December 2020 | * | Low-risk wealth management product | Principal repayment with interest upon maturity | 1.90% | 3.15 | 0.72 | - | Yes | Yes | ||
| Suzhou branch of Industrial Bank | Bank | Principal-protected with floating income | 600 | Self-funded | 19 October 2020 | * | Low-risk wealth management product | Principal repayment with interest upon maturity | 1.60% | 4.56 | 1.92 | - | Yes | Yes | ||
| Linhu sub-branch of Agricultural Bank | Bank | Principal-protected with floating income | 600 | Self-funded | 20 November 2020 | * | Low-risk wealth management product | Principal repayment with interest upon maturity | 1.50% | 2.18 | 0.95 | - | Yes | Yes | ||
| Suzhou branch of CITIC Bank | Bank | Principal-protected with floating income | 600 | Self-funded | 26 December 2020 | * | Low-risk wealth management product | Principal repayment with interest upon maturity | 3.05% | 2.12 | 0.25 | - | Yes | Yes |
| Xietang sub-branch of Agricultural Bank | Bank | Principal-protected with floating income | 500 | Self-funded | 23 January 2020 | * | Low-risk wealth management product | Principal repayment with interest upon maturity | 2.55% | 28.56 | 11.97 | - | Yes | Yes | ||
| Suzhou branch of Industrial Bank | Bank | Principal-protected with floating income | 500 | Self-funded | 17 December 2020 | * | Low-risk wealth management product | Principal repayment with interest upon maturity | 2.40% | 2.35 | 0.46 | - | Yes | Yes | ||
| Xietang sub-branch of Agricultural Bank | Bank | Principal-protected with floating income | 500 | Self-funded | 21 December 2020 | * | Low-risk wealth management product | Principal repayment with interest upon maturity | 1.90% | 1.56 | 0.25 | - | Yes | Yes | ||
| Xietang sub-branch of Agricultural Bank | Bank | Principal-protected with floating income | 300 | Self-funded | 25 April 2019 | * | Low-risk wealth management product | Principal repayment with interest upon maturity | 2.70% | 17.76 | 7.66 | - | Yes | Yes | ||
| Xietang sub-branch of Agricultural Bank | Bank | Principal-protected with floating income | 300 | Self-funded | 26 November 2019 | * | Low-risk wealth management product | Principal repayment with interest upon | 2.55% | 10.38 | 7.74 | - | Yes | Yes |
| maturity | ||||||||||||||||
| Suzhou branch of Industrial Bank | Bank | Principal-protected with floating income | 300 | Self-funded | 9 December 2020 | * | Low-risk wealth management product | Principal repayment with interest upon maturity | 2.40% | 2.28 | 0.43 | - | Yes | Yes | ||
| Xiangcheng sub-branch of Industrial and Commercial Bank of China | Bank | Principal-protected with floating income | 300 | Self-funded | 21 December 2020 | * | Low-risk wealth management product | Principal repayment with interest upon maturity | 2.66% | - | Yes | Yes | ||||
| Suzhou branch of Industrial Bank | Bank | Principal-protected with floating income | 300 | Self-funded | 16 October 2020 | * | Low-risk wealth management product | Principal repayment with interest upon maturity | 1.60% | 4.26 | 1.18 | - | Yes | Yes | ||
| Total | 216,060 | -- | -- | -- | -- | -- | -- | 820.54 | 322.27 | -- | -- | -- | -- | |||
*Note: Returns on investments in these wealth management products were calculated based on actual duration days for there were nonominal durations for them.Wealth management transactions where the principal is expectedly irrecoverable or an impairment may be incurred:
□ Applicable √ Not applicable
(2) Entrusted Loans
□ Applicable √ Not applicable
No such cases in the Reporting Period.
4. Significant Contracts Arising in the Ordinary Course of Business
□ Applicable √ Not applicable
5. Other Significant Contracts
□ Applicable √ Not applicable
No such cases in the Reporting Period.XVIII Social Responsibility
1. Fulfillment of Social Responsibility
Please refer to the full Social Responsibility Report of the Company disclosed on www.cninfo.com.cn dated 30 April 2021.
2. Measures Taken for Targeted Poverty Alleviation
The Company did not carry out any work for targeted poverty alleviation in the Reporting Period, and has no such plans fornow.
3. Information Related to Environmental Protection
Indicate whether the Company or any of its subsidiaries was identified as a major polluter by the environmental authorities.
□ Yes √ No
Not applicable.
XIX Other Significant Events
√ Applicable □Not applicable
No other significant events.The Company is subject to the Guide No. 6 of the Shenzhen Stock Exchange on Industry-Specific Information Disclosure—ListedCompanies Engaged in Construction Decoration.
1. Qualifications in 2020:
(1) Type of Industrial Qualifications Obtained within the Reporting Period as well as the Valid Periods
| Company name | Name of the qualification | Class of the qualification | Validity term | Type of change |
| Suzhou Gold Mantis Construction Decoration Co., Ltd. | Firefighting Facility Engineering Professional Contractor | Class Two | To 31 December 2021 | Added |
(2) Information about Significant Changes to Relevant Qualifications in the Reporting Period
| Company name | Name of the qualification | Class of the | Validity term | Type of |
| qualification | change | |||
| Suzhou Gold Mantis Curtain Wall Co., Ltd. | Curtain Wall Engineering Design | Class A | To 16 March 2025 | Renew |
(3) Information about the Expiration and Renewal of Relevant Qualifications in the Next Reporting Period
| Company name | Name of the qualification | Class of the qualification | Validity term | Remarks |
| Suzhou Gold Mantis Construction Decoration Co., Ltd. | Construction Decoration Engineering Professional Contractor | Class One | To 31 December 2021 | |
| Suzhou Gold Mantis Construction Decoration Co., Ltd. | Curtain Wall Engineering Professional Contractor | Class One | To 31 December 2021 | |
| Suzhou Gold Mantis Construction Decoration Co., Ltd. | Mechanical and Electrical Equipment Installation Engineering Professional Contractor | Class One | To 31 December 2021 | |
| Suzhou Gold Mantis Construction Decoration Co., Ltd. | Firefighting Facility Engineering Professional Contractor | Class Two | To 31 December 2021 | |
| Suzhou Gold Mantis Construction Decoration Co., Ltd. | Urban and Road Lighting Engineering Professional Contractor | Class Three | To 31 December 2021 | |
| Suzhou Gold Mantis Construction Decoration Co., Ltd. | Construction Engineering General Contractor | Class Three | To 31 December 2021 | |
| Suzhou Gold Mantis Landscape Co., Ltd. | Ancient-Style Construction Engineering Professional Contractor | Class One | To 31 December 2021 | |
| Suzhou Gold Mantis Landscape Co., Ltd. | Municipal Public Works General Contractor | Class Three | To 31 December 2021 | |
| Suzhou Gold Mantis Landscape Co., Ltd. | Environmental Protection Engineering Professional Contractor | Class Three | To 31 December 2021 | |
| Gold Mantis Refined Decoration & Technology (Suzhou) Co., Ltd. | Construction Decoration Engineering Professional Contractor | Class One | To 31 December 2021 | |
| Suzhou Gold Mantis Curtain Wall Co., Ltd. | Curtain Wall Engineering Professional Contractor | Class One | To 31 December 2021 | |
| Suzhou Gold Mantis Curtain Wall Co., Ltd. | Steel-structure Engineering Professional Contractor | Class Two | To 31 December 2021 | |
| Suzhou Gold Mantis Curtain Wall Co., Ltd. | Construction Decoration Engineering Professional Contractor | Class Two | To 31 December 2021 | |
| Suzhou Gold Mantis Curtain Wall Co., Ltd. | Urban and Road Lighting Engineering Professional Contractor | Class Three | To 31 December 2021 | |
| Suzhou Meiruide Construction Decoration Co., Ltd. | Construction Decoration Engineering Professional Contractor | Class One | To 31 December 2021 | |
| Suzhou Meiruide Construction Decoration Co., Ltd. | Curtain Wall Engineering Professional Contractor | Class One | To 31 December 2021 | |
| Suzhou Meiruide Construction Decoration Co., Ltd. | Mechanical and Electrical Equipment Installation Engineering Professional | Class Two | To 31 December 2021 |
| Contractor | ||||
| Suzhou Meiruide Construction Decoration Co., Ltd. | Construction Engineering General Contractor | Class Three | To 31 December 2021 | |
| Suzhou Meiruide Construction Decoration Co., Ltd. | Steel-structure Engineering Professional Contractor | Class Three | To 31 December 2021 | |
| Suzhou Meiruide Construction Decoration Co., Ltd. | Urban and Road Lighting Engineering Professional Contractor | Class Three | To 31 December 2021 | |
| Suzhou Meiruide Construction Decoration Co., Ltd. | Construction Decoration Engineering Design | Class A | To 31 December 2021 | |
| Suzhou Meiruide Construction Decoration Co., Ltd. | Curtain Wall Engineering Design | Class A | To 31 December 2021 |
At present, the Company's staffing, business results, equipment and other aspects all satisfy the requirements on renewal ofrelevant qualifications.XX Significant Events of Subsidiaries
□ Applicable √ Not applicable
Part VI Share Changes and Shareholder InformationI. Share Changes
1. Share Changes
Unit: share
| Before | Increase/decrease in the current period (+/-) | After | |||||||
| Shares | Percentage (%) | New issues | Shares as dividend converted from profit | Shares as dividend converted from capital reserves | Other | Subtotal | Shares | Percentage (%) | |
| 1. Restricted shares | 80,724,473 | 3.02% | 8,000,000 | -10,495,854 | -2,495,854 | 78,228,619 | 2.92% | ||
| 1.1 Shares held by the state | |||||||||
| 1.2 Shares held by state-owned corporations | |||||||||
| 1.3 Shares held by other domestic investors | 80,724,473 | 3.02% | 8,000,000 | -10,495,854 | -2,495,854 | 78,228,619 | 2.92% | ||
| Including: Shares held by domestic corporations | |||||||||
| Shares held by domestic individuals | 80,724,473 | 3.02% | 8,000,000 | -10,495,854 | -2,495,854 | 78,228,619 | 2.92% | ||
| 1.4 Shares held by overseas investors | |||||||||
| Including: Shares held by overseas corporations | |||||||||
| Shares held by overseas individuals | |||||||||
| 2. Unrestricted shares | 2,595,684,216 | 96.98% | 9,445,854 | 9,445,854 | 2,605,130,070 | 97.08% | |||
| 2.1 RMB-denominated ordinary shares | 2,595,684,216 | 96.98% | 9,445,854 | 9,445,854 | 2,605,130,070 | 97.08% | |||
| 2.2 Domestically listed foreign shares | |||||||||
| 2.3 Overseas listed foreign shares | |||||||||
| 2.4 Others | |||||||||
| 3. Total shares | 2,676,408,689 | 100.00% | 8,000,000 | -1,050,000 | 6,950,000 | 2,683,358,689 | 100.00% |
Reasons for share changes:
√ Applicable □ Not applicable
1. During the Reporting Period, the shares of the Company held by the directors, supervisors and senior management werelocked and unlocked accordingly in accordance with the relevant regulations on the management of shares and their changes.
2. On 23 January 2020, the Company completed the registration of the grant of reserved restricted shares for the 2018 restrictedshare incentive plan, granted 8 million restricted shares to 14 awardees. The total share capital of the Company increased to2,684,408,689 shares.
3. On 9 June 2020, 9,615,000 shares with the restriction conditions lifted in the first lifting restriction period for the first grantportion of the 2018 restricted share incentive plan were listed for trading.
4. On 13 July 2020, the Company completed the repurchase and cancellation of some restricted shares, after which the totalshare capital of the Company changed from 2,684,408,689 shares to 2,683,358,689 shares.Approval of share changes:
√ Applicable □ Not applicable
In accordance with the authorization of the 1st Extraordinary General Meeting of the Company in 2018, upon the deliberationand approval of the 1st Extraordinary Meeting of the 6th Board of Directors and the 1st Extraordinary Meeting of the 6th SupervisoryCommittee, the Company completed the registration of the grant of 8 million restricted shares under the reserved portion of the 2018restricted share incentive plan. The reserved portion of restricted shares granted would be listed on 23 January 2020.
In accordance with the authorization of the 1st Extraordinary General Meeting of the Company in 2018, upon the deliberationand approval of the 5th Meeting of the 6th Board of Directors and the 5th Meeting of the 6th Supervisory Committee, the Companyprocessed matters related to restriction lifting for qualified awardees according to the stipulations in the incentive plan in the firstlifting restriction period for the first grant portion of the 2018 restricted share incentive plan. The trading restrictions on 9,615,000restricted shares were lifted, and the stocks would be listed on 9 June 2020.
Upon the deliberation and approval of the 5th Meeting of the 6th Board of Directors, the 5th Meeting of the 6th SupervisoryCommittee and the 2019 Annual General Meeting, the repurchase and cancellation of 1,050,000 restricted shares were completed.The total share capital of the Company changed to 2,683,358,689 shares.Transfer of share ownership:
√ Applicable □ Not applicable
The listing date of 8 million restricted shares granted under the reserved portion of the Company's 2018 restricted shareincentive plan was 23 January 2020.The listing date of 9,615,000 restricted shares with the restriction conditions lifted in the first lifting restriction period for thefirst grant portion of the Company's 2018 restricted share incentive plan was 9 June 2020.The repurchase and cancellation of 1.05 million restricted shares under the Company's 2018 restricted share incentive plan werecompleted on 13 July 2020.Progress on any share repurchase:
□ Applicable √ Not applicable
Progress on reducing the repurchased shares by way of centralized bidding:
□ Applicable √ Not applicable
Effects of share changes on the basic earnings per share, diluted earnings per share, equity per share attributable to the Company’sordinary shareholders and other financial indicators of the prior year and the prior accounting period, respectively:
√ Applicable □ Not applicable
Based on the latest diluted share capital of 2,683,358,689 shares, earnings per share for 2019 and Q3 2020 were RMB0.88 andRMB0.64 respectively, and equity per share for 2019 and Q3 2020 were RMB5.65 and RMB6.12 respectively.Other information that the Company considers necessary or is required by the securities regulator to be disclosed:
□ Applicable √ Not applicable
2. Changes in Restricted Shares
√ Applicable □ Not applicable
Unit: share
| Shareholder | Opening restricted shares | Increase in restricted shares in the current period | Unlocked in the current period | Closing restricted shares | Reason for restriction | Date of unlocking |
| Locked-up shares of senior management | 47,624,473 | 699,858 | 530,712 | 47,793,619 | Locked-up shares of senior management | Pursuant to the regulations on shares held by senior management |
| Restricted shares as equity incentives | 33,100,000 | 8,000,000 | 10,665,000 | 30,435,000 | Locked-up as equity incentives | Pursuant to the Company’s restricted share incentive plans |
| Total | 80,724,473 | 8,699,858 | 11,195,712 | 78,228,619 | -- | -- |
II Issuance and Listing of Securities
1. Securities (Exclusive of Preference Shares) Issued in the Reporting Period
√ Applicable □ Not applicable
| Name of stock and its derivative securities | Issue date | Issue price (or interest rate) | Issued number | Listing date | Number approved for public trading | Termination date of transaction | Index to disclosed information | Disclosure date |
| Stocks | ||||||||
| Grant of the reserved portion under the 2018 Restricted Share Incentive Plan | 23 January 2020 | 4.01 | 8,000,000 | 23 January 2020 | 8,000,000 | |||
| Convertible corporate bonds, convertible corporate bonds with warrants, and corporate bonds | ||||||||
| Other derivative securities | ||||||||
Particulars about the securities (exclusive of preference shares) issued in the Reporting Period:
For further information, please refer to “XV Equity Incentive Plans, Employee Stock Ownership Plans or Other IncentiveMeasures for Employees” in “Part V Significant Events” herein.
2. Changes in Total Shares, as well as Ownership, Asset and Liability Structures
√ Applicable □ Not applicable
As at the disclosure date, both the total number of shares and the shareholder structure of the Company have changed.Information about the changes in the total number of shares and the shareholder structure is provided in "I. Changes in SharesCapital" of this section. The Company received RMB32.08 million of exercise funds from the awardees after the reserved portion ofthe 2018 restricted share incentive plan was granted, which further expanded the asset size.
3. Existing Staff-Held Shares
□ Applicable √ Not applicable
III Shareholders and Actual Controller
1. Shareholders and Their Shareholdings at the End of the Reporting Period
Unit: share
| Number of ordinary | 63,192 | Number of ordinary | 77,426 | Number of preference | 0 | Number of preference | 0 |
| shareholders at the period-end | shareholders at the month-end prior to the disclosure of this Report | shareholders with resumed voting rights at the period-end (if any) (see note 8) | shareholders with resumed voting rights at the month-end prior to the disclosure of this Report (if any) (see note 8) | ||||||||||||
| 5% or greater shareholders or top 10 shareholders | |||||||||||||||
| Name of shareholder | Nature of shareholder | Shareholding percentage | Total shares held at the period-end | Increase/decrease in the Reporting Period | Restricted shares held | Unrestricted shares held | Shares in pledge or frozen | ||||||||
| Status | Shares | ||||||||||||||
| Suzhou Gold Mantis Enterprise (Group) Co., Ltd. | Domestic non-state-owned corporation | 23.69% | 635,805,330 | -17000000 | 0 | 635,805,330 | |||||||||
| Golden Feather Corporation | Overseas corporation | 23.67% | 635,042,264 | 0.00 | 0 | 635,042,264 | |||||||||
| Perseverance Asset Management Partnership L.L.P.－Perseverance Linshan No.1 Yuanwang Fund | Other | 4.10% | 110,000,000 | 110,000,000 | 0 | 110,000,000 | |||||||||
| Hong Kong Securities Clearing Company Limited | Overseas corporation | 2.48% | 66,625,915 | -8752925 | 0 | 66,625,915 | |||||||||
| China Securities Finance Corporation Limited | Domestic non-state-owned corporation | 2.47% | 66,269,137 | -6011048 | 0 | 66,269,137 | |||||||||
| Central Huijin Asset Management Ltd. | State-owned corporation | 1.11% | 29,843,550 | 0 | 0 | 29,843,550 | |||||||||
| Zhou Wenhua | Domestic individual | 1.05% | 28,081,956 | -9360652 | 28,081,956 | 0 | |||||||||
| GIC Private Limited | Overseas corporation | 0.95% | 25,529,095 | -7042577 | 0 | 25,529,095 | |||||||||
| Dalian Tonghe Investment Co., Ltd.－Tonghe Progressive Private Investment Fund (12) | Other | 0.85% | 22,882,724 | 1753800 | 0 | 22,882,724 | |||||||||
| Dalian Tonghe Investment Co., Ltd.－Tonghe Fuxiang Investment Fund (1) | Other | 0.72% | 19,374,136 | 1186749 | 0 | 19,374,136 | |||||||||
| Strategic investor or general corporation becoming a top-10 shareholder in a rights issue (if any) (see note 3) | N/A | |||
| Related or acting-in-concert parties among the shareholders above | Suzhou Gold Mantis Enterprise (Group) Co., Ltd. and Golden Feather Corporation are controlled by the Company’s actual controller Zhu Xingliang. | |||
| Shareholders above entrusting/entrusted with or waiving voting rights | N/A | |||
| Top 10 unrestricted shareholders | ||||
| Name of shareholder | Unrestricted shares held at the period-end | Shares by class | ||
| Class | Shares | |||
| Suzhou Gold Mantis Enterprise (Group) Co., Ltd. | 635,805,330 | RMB-denominated ordinary shares | 635,805,330 | |
| Golden Feather Corporation | 635,042,264 | RMB-denominated ordinary shares | 635,042,264 | |
| Perseverance Asset Management Partnership L.L.P.－Perseverance Linshan No.1 Yuanwang Fund | 110,000,000 | RMB-denominated ordinary shares | 110,000,000 | |
| Hong Kong Securities Clearing Company Limited | 66,625,915 | RMB-denominated ordinary shares | 66,625,915 | |
| China Securities Finance Corporation Limited | 66,269,137 | RMB-denominated ordinary shares | 66,269,137 | |
| Central Huijin Asset Management Ltd. | 29,843,550 | RMB-denominated ordinary shares | 29,843,550 | |
| GIC Private Limited | 25,529,095 | RMB-denominated ordinary shares | 25,529,095 | |
| Dalian Tonghe Investment Co., Ltd.－Tonghe Progressive Private Investment Fund (12) | 22,882,724 | RMB-denominated ordinary shares | 22,882,724 | |
| Dalian Tonghe Investment Co., Ltd.－Tonghe Fuxiang Investment Fund (1) | 19,374,136 | RMB-denominated ordinary shares | 19,374,136 | |
| Zhu Xingliang | 18,327,718 | RMB-denominated ordinary shares | 18,327,718 | |
| Related or acting-in-concert parties among top 10 unrestricted public shareholders, as well as between top 10 unrestricted public shareholders and top 10 shareholders | Suzhou Gold Mantis Enterprise (Group) Co., Ltd. and Golden Feather Corporation are controlled by the Company’s actual controller Zhu Xingliang. | |||
| Top 10 ordinary shareholders involved in securities margin trading (if any) (see note 4) | Shareholder Suzhou Gold Mantis Enterprise (Group) Co., Ltd. held 635,805,330 shares in the Company in its ordinary securities account, and 17,000,000 shares in the Company in its securities refinancing margin account in China Securities Finance Corporation Limited, totaling 652,805,330 shares. |
Indicate whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the Company conductedany promissory repurchase during the Reporting Period.
□ Yes √ No
No such cases in the Reporting Period.
2. Controlling Shareholder
Nature of the controlling shareholder: foreign-controlledType of the controlling shareholder: corporation
| Name of the controlling shareholder | Legal representative/person-in-charge | Date of incorporation | Organization code | Principal activities |
| Suzhou Gold Mantis Enterprise (Group) Co., Ltd. | Zhu Haiqin | 28 March 2001 | 913205947272769800 (unified social credit code) | Industrial investments (except for projects exclusively controlled by the state); sale of construction materials; engineering and construction; and business management consulting services (where an administrative permit is required according to law, it shall be obtained before operation) |
| Interests held in other domestically and overseas listed companies in the Reporting Period | As at the end of the Reporting Period, Gold Mantis Group held 2,500,000 shares (0.63%) in Guangzhou Football Club Co., Ltd. (stock name: ST Guangzhou Football; stock code: 834338). ST Guangzhou Football has been delisted from the National Equities Exchange and Quotations since 10 March 2021. Also, Gold Mantis Group held 1,576,000 shares (0.047%) in Tysan Holdings Limited (stock name: Tysan Holdings; stock code: 00687). In addition, Gold Mantis Group participated in the subscription for new stocks such as Ruixin Technology, Xiangjia Animal Husbandry, and CEM during the Reporting Period. | |||
Change of the controlling shareholder in the Reporting Period:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Actual Controller and Acting-in-Concert Parties
Nature of the actual controller: overseas individualType of the actual controller: individual
| Name of the actual controller | Relationship with the actual controller | Nationality | Residency in other countries or regions or not |
| Zhu Xingliang | Actual controller himself | Hong Kong, China | Yes |
| Main occupations and positions | Chairman of the Board of Suzhou Gold Mantis Holding Co., Ltd., Director of Suzhou Gold Mantis Enterprise (Group) Co., Ltd., Chairman of the Board of Golden Feather Corporation, Director of Suzhou LJT Intelligent Technology Co., Ltd., General Manager of Suzhou Gold Gain Investment Co., Ltd., Chairman of the Board of Suzhou Nuojin Investment Co., Ltd., Chairman of the Board of Suzhou Nuojin Finance Lease Co., Ltd., Executive Director of Jintang Capital Holdings Co., Ltd., Director of Singapore Gold Mantis Pte. Ltd., and Director of HBA Holdings Pte. Ltd. | ||
| Controlling interests in other domestically and overseas listed companies in the past 10 years | N/A | ||
Change of the actual controller in the Reporting Period:
□ Applicable √ Not applicable
No such cases in the Reporting Period.Ownership and control relationship between the actual controller and the Company:
Indicate whether the actual controller controls the Company via trust or other ways of asset management.
□ Applicable √ Not applicable
4. Other 10% or Greater Corporate Shareholders
√ Applicable □ Not applicable
| Name of corporate shareholder | Legal | Date of | Registered capital | Principal activities |
| 24.33％ | 23.67％ | 51.32％ |
| 26.27％ | 73.06％ | |
| 30％ | 70％ |
Zhu XingliangSuzhou Gold Mantis Holding Co., Ltd.
Suzhou Gold Mantis Holding Co., Ltd.Suzhou Gold Mantis Enterprise (Group) Co., Ltd.
| Suzhou Gold Mantis Enterprise (Group) Co., Ltd. | Golden Feather Corporation |
Other shareholders
Suzhou Gold Mantis Construction Decoration Co., Ltd.
Suzhou Gold Mantis Construction Decoration Co., Ltd.
Zhu Haiqin
Zhu HaiqinOther
shareholders
Other
shareholders100％
100％
0.67％
0.67％
0.68％
| representative/person-in-charge | incorporation | |||
| Golden Feather Corporation | Zhu Xingliang | 24 July 1998 | USD1 | Industrial investment |
5. Limitations on Shareholding Decrease by the Company’s Controlling Shareholder, Actual Controller,Reorganizer and Other Commitment Makers
□ Applicable √ Not applicable
Part VII Preference Shares
□ Applicable √ Not applicable
No preference shares in the Reporting Period.
Part VIII Convertible Corporate Bonds
□ Applicable √ Not applicable
No convertible corporate bonds in the Reporting Period.
Part IX Directors, Supervisors, Senior Management and StaffI Changes in the Shareholdings of Directors, Supervisors and Senior Management
| Name | Office title | Incumbent/Former | Gender | Age | Start of office term | End of office term | Opening shareholding (share) | Increase in the current period (share) | Decrease in the current period (share) | Other increase/decrease (share) | Closing shareholding (share) |
| Wang Hanlin | Chairman of the Board | Incumbent | Male | 47 | 8 April 2016 | 2 April 2022 | 3,000,000 | 0 | 0 | 0 | 3,000,000 |
| Cao Liming | Director and General Manager | Incumbent | Male | 42 | 8 April 2016 | 2 April 2022 | 3,199,808 | 0 | 0 | 0 | 3,199,808 |
| Shi Guoping | Director and Executive Deputy General Manager | Incumbent | Male | 43 | 23 May 2017 | 2 April 2022 | 3,000,000 | 0 | 0 | 0 | 3,000,000 |
| Zhu Ming | Director | Incumbent | Male | 36 | 20 May 2015 | 2 April 2022 | 0 | 0 | 0 | 0 | 0 |
| Zhu Xingquan | Director and Deputy General Manager | Incumbent | Male | 57 | 15 November 2004 | 2 April 2022 | 6,266,027 | 0 | 1,566,500 | 0 | 4,699,527 |
| Zhang Xinhong | Director | Incumbent | Male | 43 | 15 May 2020 | 2 April 2022 | 0 | 0 | 0 | 0 | 0 |
| Wan Jieqiu | Independent Director | Incumbent | Male | 66 | 8 April 2016 | 2 April 2022 | 0 | 0 | 0 | 0 | 0 |
| Yu Xuehua | Independent Director | Incumbent | Male | 58 | 8 April 2016 | 2 April 2022 | 0 | 0 | 0 | 0 | 0 |
| Zhao Zengyao | Independent Director | Incumbent | Male | 58 | 3 April 2019 | 2 April 2022 | 0 | 0 | 0 | 0 | 0 |
| Zhu Panying | Chairman of the | Incumbent | Female | 49 | 12 September 2016 | 2 April 2022 | 24,000 | 0 | 0 | 0 | 24,000 |
| Supervisory Committee | |||||||||||
| Qian Ping | Supervisor | Incumbent | Female | 54 | 8 April 2016 | 2 April 2022 | 4,800 | 0 | 0 | 0 | 4,800 |
| Zhang Jun | Supervisor | Incumbent | Male | 49 | 25 March 2013 | 2 April 2022 | 67,500 | 0 | 0 | 0 | 67,500 |
| Wang Hong | Deputy General Manager | Incumbent | Male | 53 | 17 April 2010 | 2 April 2022 | 1,010,469 | 0 | 0 | 0 | 1,010,469 |
| Dong Sheng | Deputy General Manager | Incumbent | Male | 45 | 8 April 2016 | 2 April 2022 | 500,000 | 0 | 0 | 0 | 500,000 |
| Cai Guohua | Deputy General Manager and Chief Financial Officer | Incumbent | Male | 46 | 8 April 2016 | 2 April 2022 | 500,000 | 0 | 0 | 0 | 500,000 |
| Ning Bo | Deputy General Manager and Board Secretary | Incumbent | Male | 39 | 2 March 2018 | 2 April 2022 | 500,000 | 0 | 0 | 0 | 500,000 |
| Total | -- | -- | -- | -- | -- | -- | 18,072,604 | 0 | 1,566,500 | 0 | 16,506,104 |
II Changes of Directors, Supervisors and Senior Management
√ Applicable □ Not applicable
| Name | Office title | Type of change | Date | Reason |
| Zhang Xinhong | Director | Elected | 15 May 2020 | Elected as a Director at the 2019 Annual General Meeting |
III Biographical InformationProfessional backgrounds, main work experience and current positions in the Company of the incumbent directors, supervisors andsenior management:
Wang Hanlin: Mr. Wang was previously a Project Manager of Jiangsu Sinda Decoration Co., Ltd. and the General Manager of abranch of Suzhou Gold Mantis Construction Decoration Co., Ltd. He currently serves as the Chairman of the Board of the Company,a Vice President of China Building Decoration Association, a Director of Gold Mantis Prefabricated Construction Technology(Suzhou) Co., Ltd., a Director of Gold Mantis Refined Decoration & Technology (Suzhou) Co., Ltd., a Director of Gold Mantis
Supply Chain Management (Suzhou) Co., Ltd., the Chairman of the Board of Gold Mantis Art Co., Ltd., the Chairman of the Boardof Gold Mantis North China (Beijing) Construction Decoration Engineering Co., Ltd., a Director of Gold Mantis Home DecorationE-commerce (Suzhou) Co., Ltd., a Director of Suzhou Gold Mantis Landscape Co., Ltd., the Chairman of the Board of Gold MantisEast China Construction Decoration Co., Ltd., and a Director of Singapore Gold Mantis Pte. Ltd.
Cao Liming: Mr. Cao previously served as the Director of the Human Resources Department and the Director of the LegalCounsel Office of Nanjing Lianqiang Metallurgical Group Co., Ltd.; the Director of the Risk Management Department of NanjingBC Foods Co., Ltd.; the General Manager Assistant, and the Manager of the Legal Department and the Financial SettlementDepartment of Suzhou Meiruide Construction Decoration Co., Ltd.; the General Manager Assistant, and the Manager of the Legaland Contract Center of Suzhou Gold Mantis Construction Decoration Co., Ltd.; an Executive Deputy General Manager of theMarketing Center of Suzhou Gold Mantis Construction Decoration Co., Ltd.; the General Manager of the marketing company; a VicePresident and Executive Director of Suzhou Exploration & Design Association and the President of the Decoration Design Branch.Now he serves as a Director and the General Manager of the Company, a Director of Gold Mantis Art Co., Ltd., a Director of SuzhouGold Mantis Landscape Co., Ltd., the General Manager of Suzhou Gold Mantis Construction Investment Co., Ltd., a Director ofSuzhou Industrial Park Gold Mantis Furniture Design and Manufacturing Co., Ltd., a Director of Gold Mantis East ChinaConstruction Decoration Co., Ltd., the Chairman of the Board of Gold Mantis (International) Construction Decoration Limited, aDirector of Gold Mantis International Development Co., Ltd., the Chairman of the Board of Gold Mantis HK ConstructionDecoration Limited, and a director of Sierra Gold Mantis Joint Venture (Private) Limited.
Zhu Ming: Mr. Zhu previously served as the General Manager of Suzhou LJT Intelligent Technology Co., Ltd., and is currentlya Director of the Company, a Director of Suzhou Gold Mantis Enterprise (Group) Co., Ltd., a Director of Suzhou Gold MantisHolding Co., Ltd., a Director of Suzhou Nuojin Investment Co., Ltd., a Director of Suzhou LJT Intelligent Technology Co., Ltd., aDirector of Suzhou Gold Mantis Yihe Technology Co., Ltd., a director of Suzhou Meiruide Construction Decoration Co., Ltd., adirector of Suzhou Industrial Park Gold Mantis Furniture Design and Manufacturing Co., Ltd., a Director of Suzhou Gold MantisLandscape Co., Ltd., a Director of Gold Mantis Prefabricated Construction Technology (Suzhou) Co., Ltd., a Director of SuzhouGold Mantis Construction Investment Co., Ltd., a Director of Suzhou Gold Mantis Curtain Wall Co., Ltd., a Director of SingaporeGold Mantis Pte. Ltd., a Director of HBA Holdings Pte. Ltd., a Director of Gold Mantis Refined Decoration & Technology (Suzhou)Co., Ltd., a Director of Gold Mantis Home Decoration E-commerce (Suzhou) Co., Ltd., a Director of Gold Mantis Supply ChainManagement (Suzhou) Co., Ltd., a Director of Suzhou Gold Mantis Culture Development Co., Ltd., a Director of Suzhou JinnuoCommercial Factoring Co., Ltd., a Director of Suzhou Nuojin Finance Lease Co., Ltd., a Director of Shanghai Tangjinmei DataTechnology Co., Ltd., a Director of Guangzhou Jinnuo Microfinance Co., Ltd., the Chairman of the Board of Suzhou HuizhuInformation Technology Co., Ltd., and a Director of Suzhou Gold Mantis Charity Foundation.
Zhu Xingquan: Mr. Zhu previously served as a Manager of Suzhou Jinda Decoration Co., Ltd.; and the Manager of theDepartment VIII, the Manager of Branch V, the General Manager Assistant, a Deputy General Manager of Suzhou Gold MantisConstruction Decoration Co., Ltd. He is currently a Director and a Deputy General Manager of the Company, an Executive Directorof Jiangsu Decoration Association, a Vice Chairman of Suzhou Decoration Industry Association, the Chairman of the Board andGeneral Manager of Suzhou Meiruide Construction Decoration Co., Ltd., an Executive Director of Suzhou Meiruide BuildingMaterials Co., Ltd., and a Director of Suzhou Gold Mantis Charity Foundation.
Shi Guoping: Mr. Shi previously served as a Project Manager of the Company, the General Manager of Branch V, the RegionalManager of the Management Region VIII, and a Deputy General Manager of the Engineering Management Center. He is now aDirector and a Deputy General Manager of the Company, the Chairman of the Board and General Manager of Suzhou Industrial ParkGold Mantis Furniture Design and Manufacturing Co., Ltd., a Director of Gold Mantis East China Construction Decoration Co., Ltd.,the Chairman of the Board of Suzhou Huali Jinshi Construction Decoration Co., Ltd., a Director of Macao Gold Mantis ConstructionDecoration Limited, and an Executive Director of Gold Mantis International Development Co., Ltd.
Zhang Xinhong: Mr. Zhang was previously a Deputy Departmental Manager of Jiangsu Gangning Decoration Co., Ltd. and theGeneral Manager of Branch III of Suzhou Gold Mantis Construction Decoration Co., Ltd. Now he is a Director of the Company.
Yu Xuehua: Mr. Yu was previously a Lecturer at Nanjing Agricultural University, and is now an Independent Director of theCompany, an Associate Professor and Master's Supervisor of Accounting at Soochow University, an Independent Director of JiangsuShagang Co., Ltd., an Independent Director of Jiangsu Hengli Hydraulic Co., Ltd., an Independent Director of Jiangsu TongrunEquipment Co., Ltd., and an Independent Director of General Elevator Co., Ltd.
Wan Jieqiu: Mr. Wan was previously a teacher of Xi'an Army Academy, a Lecturer and an Associate Professor of the Faculty ofFinance and Economics of Soochow University. Now he is an Independent Director of the Company, a Professor and DoctoralSupervisor of Soochow University, an Independent Director of Nanji E-commerce Co., Ltd., and an Independent Director of FreewonChina Co., Ltd.
Zhao Zengyao: Mr. Zhao was previously a Lecturer, Associate Professor and Professor of Northwest University, and anIndependent Director of the Company. He is currently a Professor of the Faculty of Business of Soochow University, an IndependentDirector of Jiangsu Sidike New Materials Science & Technology Co., Ltd. and an Independent Director of Jiangsu Alcha AluminiumGroup Co., Ltd.
Zhu Panying: Ms. Zhu previously served as a Deputy Manager of the Affairs Department of Suzhou Yangyu Garment Co., Ltd.;the Personnel Manager of Suzhou Jinlaike Electric Co., Ltd.; the Personnel Manager of Suzhou Gold Mantis Construction DecorationCo., Ltd., a Vice President of the Business School, and the Human Resources Director. She is currently the Chairman of theSupervisory Committee of the Company, the Principal of Suzhou Virtues Construction Professional Training School, the Principal of
Virtues Professional Training School of Suzhou Industrial Park, the Principal of Suzhou Gold Mantis Professional Training School, aDeputy Dean of Soochow University Gold Mantis School of Architecture and Urban Environment, and the Chairman of the Board ofShuicheng Ruitong Construction and Development Co., Ltd.Qian Ping: Ms. Qian was previously the Audit Supervisor of Jiangsu Tiandi Steel Structure Engineering Group Co., Ltd., theAudit Manager of Suzhou Gold Mantis Construction Decoration Co., Ltd., the Chairman of the Supervisory Committee of SuzhouGold Mantis Culture Development Co., Ltd., and a Supervisor of Suzhou Gold Mantis Landscape Co., Ltd. Currently, she serves as aSupervisor of the Company, a Supervisor of Suzhou Gold Gain Investment Co., Ltd., a Supervisor of Suzhou Gold MantisInvestment Co., Ltd., a Supervisor of Gold Mantis Construction Engineering Co., Ltd. in Suzhou Industrial Park, a Supervisor ofSuzhou Jinhu Property Development Co., Ltd., a Supervisor of Suzhou Gold Mantis Charity Foundation, a Supervisor of SuzhouGold Mantis 3D Software Co., Ltd., a Supervisor of Gold Mantis Prefabricated Construction Technology (Suzhou) Co., Ltd., aSupervisor of Suzhou Gold Mantis Construction Investment Co., Ltd., a Supervisor of Gold Mantis Refined Decoration &Technology (Suzhou) Co., Ltd., a Supervisor of Gold Mantis Home Decoration E-commerce (Suzhou) Co., Ltd., a Supervisor ofGold Mantis Supply Chain Management (Suzhou) Co., Ltd., a Supervisor of Suzhou Jinnuo Commercial Factoring Co., Ltd., aSupervisor of Suzhou LJT Intelligent Technology Co., Ltd., a Supervisor of Suzhou Nuojin Investment Co., Ltd., a Supervisor ofSuzhou Nuojin Finance Lease Co., Ltd., a Supervisor of Guangzhou Jinnuo Microfinance Co., Ltd., a Supervisor of Gold Mantis ArtCo., Ltd., and a Supervisor of Jintang Capital Holding Co., Ltd.Zhang Jun: Mr. Zhang was previously the Manager of the Engineering Department III of Suzhou Gold Mantis ConstructionDecoration Co., Ltd. and the General Manager of Suzhou Gold Mantis Landscape Co., Ltd. Currently, he serves as a Supervisor ofthe Company, a Vice President of Suzhou Society of Landscape Architecture, the Chairman of the Board and General Manager ofSuzhou Gold Mantis Landscape Co., Ltd., and an Executive Director of Jiangsu Gold Mantis Horticultural Co., Ltd.Wang Hong: Mr. Wang previously served as a Director of the Auditing Firm of Mingguang City, Anhui Province; a member ofthe Party Committee Organization of Nushanhu Town, Mingguang City, Anhui Province; the Financial Manager of Beijing ZhongshiDadi Advertising Co., Ltd.; an Audit Specialist of Shanghai Fosun Industrial Co., Ltd., the Chief Financial Officer of its subsidiary;the Chief Financial Officer of Pacific Construction Group; a Director of Suzhou Meiruide Construction Decoration Co. Ltd.; aSupervisor of Suzhou Gold Mantis Curtain Wall Co., Ltd. Currently, he is a Deputy General Manager of the Company and aSupervisor of Suzhou Industrial Park Gold Mantis Furniture Design and Manufacturing Co., Ltd.
Dong Sheng: Mr. Dong was previously a lawyer of Jiangsu Nantong Wanfeng Law Firm, the Legal Manager of ZhongnanHolding Group Co., Ltd. and the General Manager of the Fund Settlement Center of Suzhou Gold Mantis Construction DecorationCo., Ltd. Now he serves as a Deputy General Manager of the Company.Cai Guohua: Mr. Cai previously served as an Audit Specialist of Jiangsu Gongzheng Accounting Firm, the Financial Manager of
Suzhou Gold Mantis Construction Decoration Co., Ltd., the Chief Financial Officer of Suzhou Gold Mantis Curtain Wall Co., Ltd.,and the Deputy Chief Financial Officer of Suzhou Gold Mantis Construction Decoration Co., Ltd. Currently, he serves as an DeputyGeneral Manager and the Chief Financial Officer of the Company, a Director of Suzhou Gold Mantis Construction Investment Co.,Ltd., and a Director of Suzhou Industrial Park Jindejin Construction Engineering Co., Ltd.
Ning Bo: Mr. Ning previously served as an Audit Specialist of Ernst & Young Hua Ming LLP, a Senior Audit Manager ofShanghai Youxin Accounting Firm (General Partnership), and the General Manger Assistant of the Company. He is currently aDeputy General Manager and the Board Secretary of the Company.Offices held concurrently in shareholding entities:
√ Applicable □ Not applicable
| Name | Shareholding entity | Office held in the entity | Start of office term | End of office term | Remuneration or allowance from the entity or not |
| Zhu Ming | Suzhou Gold Mantis Enterprise (Group) Co., Ltd. | President | 11 July 2018 | Yes | |
| Note | N/A | ||||
Offices held concurrently in other entities:
√ Applicable □ Not applicable
| Name | Other entity | Office held in the entity | Start of office term | End of office term | Remuneration or allowance from the entity or not |
| Wang Hanlin | China Building Decoration Association | Vice Chairman | 15 June 2016 | Not | |
| Wan Jieqiu | Soochow University | Professor, and Doctoral Supervisor | 15 September 1986 | Yes | |
| Wan Jieqiu | Nanji E-Commerce Co., Ltd. | Independent Director | 19 June 2018 | 18 June 2021 | Yes |
| Wan Jieqiu | Freewon China Co., Ltd. | Independent Director | 1 December 2017 | 30 November 2020 | Yes |
| Yu Xuehua | Soochow University | Associate Professor of Accounting, and Master Supervisor | 15 September 1993 | Yes | |
| Yu Xuehua | Jiangsu Shagang Co., Ltd. | Independent Director | 2 September 2019 | 22 March 2023 | Yes |
| Yu Xuehua | Jiangsu Hengli Hydraulic Co., Ltd. | Independent Director | 11 September 2019 | 10 September 2022 | Yes |
| Yu Xuehua | Jiangsu Tongrun Equipment Technology Co., Ltd. | Independent Director | 22 May 2018 | 21 May 2021 | Yes |
| Yu | General Elevator Co., Ltd. | Independent Director | 25 March 2019 | 24 March 2022 | Yes |
| Xuehua | |||||
| Zhao Zengyao | Soochow University | Professor of the Business School | 1 September 2011 | Yes | |
| Zhao Zengyao | Jiangsu Alcha Aluminium Co., Ltd. | Independent Director | 17 September 2019 | 16 September 2022 | Yes |
| Zhao Zengyao | Jiangsu Sidike New Materials Science & Technology Co., Ltd. | Independent Director | 16 November 2020 | 15 November 2023 | Yes |
| Zhu Panying | Gold Mantis School of Architecture of Soochow University | Deputy Dean | 2 June 2016 | Not | |
| Zhang Jun | Suzhou Society of Landscape Architecture | Vice Chairman | 25 March 2015 | Not | |
| Zhu Xingquan | JiangSu Decoration Association | Executive Director | 1 December 2005 | Not | |
| Zhu Xingquan | Suzhou Decoration Industry Association | Vice Chairman | 18 May 2005 | Not |
Punishments imposed in the recent three years by the securities regulator on the incumbent directors, supervisors and seniormanagement as well as those who resigned in the Reporting Period:
□ Applicable √ Not applicable
IV Remuneration of Directors, Supervisors and Senior Management
Decision-making procedure, determination basis and actual payments of remuneration for directors, supervisors and seniormanagement:
The Company has established a sound performance appraisal system and remuneration policies, conducted regular appraisals onits directors, supervisors and senior management according to their positions and the Company's performance appraisal mechanism,and determined their remuneration based on the appraisal status. The remunerations of the Company's directors, supervisors andsenior management are determined on the basis of the business results and performance appraisal indicators of the Company.Remuneration of directors, supervisors and senior management for the Reporting Period
Unit: RMB'0,000
| Name | Office title | Gender | Age | Incumbent/Former | Total before-tax remuneration from the Company | Remuneration from any related party or not |
| Wang Hanlin | Chairman of the Board | Male | 47 | Incumbent | 100 | |
| Cao Liming | Director and General Manager | Male | 42 | Incumbent | 68 |
| Name | Office title | Gender | Age | Incumbent/Former | Total before-tax remuneration from the Company | Remuneration from any related party or not |
| Shi Guoping | Director and Executive Deputy General Manager | Male | 43 | Incumbent | 76.4 | |
| Zhu Ming | Director | Male | 36 | Incumbent | Yes | |
| Zhang Xinhong | Director | Male | 43 | Incumbent | 130.75 | |
| Zhu Xingquan | Director and Deputy General Manager | Male | 57 | Incumbent | 108 | |
| Wan Jieqiu | Independent Director | Male | 66 | Incumbent | 6 | |
| Yu Xuehua | Independent Director | Male | 58 | Incumbent | 6 | |
| Zhao Zengyao | Independent Director | Male | 58 | Incumbent | 6 | |
| Zhu Panying | Chairman of the Supervisory Committee | Female | 49 | Incumbent | 80 | |
| Qian Ping | Supervisor | Female | 54 | Incumbent | 55 | |
| Zhang Jun | Supervisor | Male | 49 | Incumbent | 101.4 | |
| Wang Hong | Deputy General Manager | Male | 53 | Incumbent | 63.6 | |
| Dong Sheng | Deputy General Manager | Male | 45 | Incumbent | 66 | |
| Cai Guohua | Deputy General Manager and Chief Financial Officer | Male | 46 | Incumbent | 60 | |
| Ning Bo | Deputy General Manager and Board Secretary | Male | 39 | Incumbent | 58 | |
| Total | -- | -- | -- | -- | 985.15 | -- |
Equity incentives granted to directors and senior management in the Reporting Period:
√ Applicable □ Not applicable
Unit: share
| Name | Office title | Exercisa | Exercised | Exercise | Market | Opening | Unlocked | Restricted | Grant | Closing |
| ble shares in the Reporting Period | shares in the Reporting Period | price of exercised shares in the Reporting Period (RMB/share) | price at the period-end (RMB/share) | restricted shares held | in the current period | shares granted in the current period | price (RMB/share) | restricted shares held | ||
| Wang Hanlin | Chairman of the Board | 3,000,000 | 900,000 | 0 | 3.99 | 2,100,000 | ||||
| Cao Liming | Director and General Manager | 3,000,000 | 900,000 | 0 | 3.99 | 2,100,000 | ||||
| Shi Guoping | Director and Executive Deputy General Manager | 3,000,000 | 900,000 | 0 | 3.99 | 2,100,000 | ||||
| Wang Hong | Deputy General Manager | 500,000 | 150,000 | 0 | 3.99 | 350,000 | ||||
| Dong Sheng | Deputy General Manager | 500,000 | 150,000 | 0 | 3.99 | 350,000 | ||||
| Cai Guohua | Deputy General Manager and Chief Financial Officer | 500,000 | 150,000 | 0 | 3.99 | 350,000 | ||||
| Ning Bo | Deputy General Manager and Board Secretary | 500,000 | 150,000 | 0 | 3.99 | 350,000 | ||||
| Total | -- | 0 | 0 | -- | -- | 11,000,000 | 3,300,000 | 0 | -- | 7,700,000 |
| Notes (if any) | On 9 June 2020, 3.3 million shares held by the Company's directors and senior management and with the restriction conditions lifted in the first lifting restriction period for the first grant portion of the 2018 restricted share incentive plan were listed for trading. There were 7.7 million shares remaining to be unlocked. | |||||||||
V Employees
1. Number, Functions and Educational Backgrounds of Employees
| Number of in-service employees of the Company as the parent | 9,121 |
| Number of in-service employees of principal subsidiaries | 5,985 |
| Total number of in-service employees | 15,106 |
| Total number of paid employees in the Reporting Period | 15,106 |
| Number of retirees to whom the Company as the parent and its principal subsidiaries need to pay retirement pensions | 0 |
| Functions | |
| Function | Employees |
| Production | 5,189 |
| Sales | 813 |
| Technical | 5,494 |
| Financial | 291 |
| Administrative | 557 |
| Budgets and final accounts | 1,683 |
| Others | 1,079 |
| Total | 15,106 |
| Educational backgrounds | |
| Educational background | Employees |
| Master’s degree and above | 271 |
| Bachelor’s degree | 7,395 |
| Junior college | 5,364 |
| Technical secondary school and below | 2,076 |
| Total | 15,106 |
2. Remuneration Policy
The Company has established a sound performance appraisal system and remuneration policies, conducted regular appraisals onits employees according to the Company's performance appraisal mechanism, and determined their remuneration based on theappraisal status.
3. Training Plans
The Company has been committed to building an internal talent team that can promote transformation and upgrading, andinnovative development, so as to bolster the development of talents for construction decoration and its industrial ecological chain. Onthe basis of unifying the Company's corporate culture values, professional skills and the management ability were the main trainingdimensions. Besides, behavioral standards and training courses for different positions were developed according to differentcategories and ranks. In terms of training implementation, the Company insisted on combining hybrid training such as networking,mobile, game-based and scenario-based training with mentorship and apprenticeship, and creatively carried out a series of learningprograms to promote the application of learning results, practices of performance improvement and organizational reform. By doingso, employees' professional skills and comprehensive literacy were continuously improved.
4. Labor Outsourcing
□ Applicable √ Not applicable
Part X Corporate GovernanceI General Information of Corporate GovernanceDuring the Reporting Period, the Company continuously improved its corporate governance structure, enhanced its internalcontrol system, and continued to carry out in-depth corporate governance activities in strict accordance with the requirements in theCompany Law, the Securities Law, the Code of Corporate Governance for Listed Companies, the Rules for Stock Listing ofShenzhen Stock Exchange, the Guidelines of the Shenzhen Stock Exchange for the Standard Operation of Listed Companies andother relevant laws and regulations. By doing so, the Company further regulated its operations and improved the level of corporategovernance.During the Reporting Period, the Company's governance was satisfactory and in compliance with the requirements of theregulatory documents issued by the CSRC on the governance of listed companies. Details are as follows:
1. Shareholders and General Meetings
The Company formulated the Articles of Association and the Rules of Procedure for General Meetings, and regulated theprocedures for convening, holding, voting at and proposing at general meetings in strict accordance with relevant provisions andrequirements. The Company treated all shareholders equally, improved the convenience for minority shareholders to attend thegeneral meetings by providing online voting in accordance with relevant regulations, and separately calculated the voting results ofsmall and medium investors to effectively safeguard their rights and interests. During the Reporting Period, the Company convenedgeneral meetings in accordance with the provisions of the Company Law and the Articles of Association. Moreover, the meetingswere witnessed by lawyers on site.
2. The Company and its Controlling Shareholder
The Company was capable of independent business activities and independent operations, and was independent of thecontrolling shareholder in terms of business, personnel, assets, institutions and financial matters. The Board of Directors, theSupervisory Committee and internal institutions of the Company operated independently. The Company's major decisions were madeby the general meeting in accordance with laws. During the Reporting Period, the controlling shareholder exercised its rights throughthe general meeting based on its shareholding in the Company. There was no situation where the controlling shareholder appropriatedthe Company's funds, nor any act where the Company provided guarantees for the controlling shareholder and its subsidiaries.
3. Directors and the Board of Directors
The Company elected its directors in strict accordance with the procedures stipulated in the Company Law and the Articles of
Association of the Company. The Company's Board of Directors consisted of nine directors. There were three independent directorson the Board, including one accounting professional. During the Reporting Period, the Board of Directors convened and heldmeetings of the Board of Directors and general meetings of shareholders in strict accordance with the provisions of the Articles ofAssociation, the Rules of Procedure of the Board of Directors and the Work Policy for Independent Directors, and carried out theresolutions of the general meetings. All directors attended the meetings of the Board of Directors and the general meetings in aserious and rigorous manner, performed their duties diligently and conscientiously, carefully deliberated on the proposals andexercised their voting rights. The independent directors were able to independently perform their duties, free from any influence.
4. Supervisors and the Supervisory Committee
The Company elected its supervisors in strict accordance with the procedures stipulated in the Company Law and the Articles ofAssociation of the Company. There were three supervisors in the Supervisory Committee, including one employee supervisor. Thenumber and composition of the Supervisory Committee were in compliance with the requirements of laws and regulations. Thesupervisors of the Company were able to conscientiously perform their duties in accordance with the requirements of the Rules ofProcedure of the Supervisory Committee, be responsible to the shareholders, and effectively supervise and express their opinions onthe material matters, financial status, related-party transactions, performance of duties by directors and senior managers of theCompany, so as to safeguard the legitimate rights and interests of the Company and its shareholders.
5. Internal Control
In accordance with the requirements of the Company Law, the Securities Law, the relevant regulations of the CSRC and theShenzhen Stock Exchange, as well as the Basic Standards for the Internal Control of Enterprises and the supporting guidelines, theCompany formulated management policies such as the Policy on Related-Party Transactions and the Policy on External Guarantees,and developed definite regulations for corporate governance, information disclosure, preparation of financial reports, related-partytransactions, project management, control of monetary assets, control of procurement procedures, seal management and otherimportant aspects, which provided solid institutional support for the Company to achieve operational efficiency, compliance and legalgoals, and goals of strategic development.
6. Stakeholders
The Company fully respected and protected the legitimate rights and interests of all stakeholders, strengthened communicationand exchanges with all parties, took the initiative to assume social responsibilities, and strove to achieve a balance of interestsbetween the society, shareholders, employees and other parties to jointly promote the sustainable and healthy development of theCompany.
7. Information Disclosure and Transparency
The Company strictly abode by the provisions of relevant laws and regulations. The Securities Department, with the Board
Secretary as the core, disclosed relevant information truthfully, accurately, timely, fairly and completely in accordance with relevantlaws. During the Reporting Period, in addition to disclosing information in light of regulatory requirements, the Company properlyinteracted with investors through the investor interactive platform, online results presentation, telephone calls, and reception ofinvestor research to respond to investors' relevant inquiries and questions in a timely and serious manner. At the same time, theCompany further strengthened regular contact and active communication with regulators and actively reported the relevant matters ofthe Company to regulators to ensure more standardized information disclosure of the Company. The Company has designated ChinaSecurities Journal, Shanghai Securities News, STCN (www.stcn.com), Securities Daily and Cninfo (http://www.cninfo.com.cn) as itsinformation disclosure media to ensure that all shareholders have a fair opportunity to obtain information.The Company will continue to strengthen its corporate governance, establish a long-term corporate governance mechanism,effectively protect the interests of investors, and lay a solid foundation for its sustainable, healthy and steady development.Indicate whether there were any significant differences between the actual situation of the corporate governance of the Company andthe regulatory documents published by the China Securities Regulatory Commission on the governance of listed companies?
□ Yes √ No
No such cases in the Reporting Period.II Independence of the Company from its Controlling Shareholder on Businesses, Personnel,Assets, Structure, and FinanceThe Company is completely independent of its controlling shareholder in terms of businesses, structure, personnel, finance, andassets and has fully independent businesses and operations. 1. Business: The Company had a complete business system and theability to operate independently and directly to the market. Its business was independent of the controlling shareholder, and there wasno horizontal competition or unfair related-party transactions with the controlling shareholder and its affiliates. 2. Personnel: TheCompany had a completely independent personnel and salary system. All senior management of the Company worked for theCompany and received remunerations, and did not hold any positions except for directors and supervisors or receive remunerationsfrom the controlling shareholder and its subsidiaries. The financial personnel of the Company did not work part-time for thecontrolling shareholder or its subsidiaries. 3. Assets: The Company has independent office and business premises, independent landuse rights, housing ownership and other assets, and is equipped with production systems related to its production and operations. Ithas legal ownership of equipment related to production and operations, independent procurement and sales systems, and supportingfacilities. 4. Institutions: The Company has established sound internal institutions for operations and management, whichindependently exercised their operation and management functions. There was no institutional mix-up with the controllingshareholder and its affiliates. 5. Finance: The Company had standardized financial and accounting policies. With independentfinancial and accounting departments, full-time accounting personnel and an independent accounting system, it was able to make
independent financial decisions. The Company opened bank accounts independently and paid taxes independently. There was nocircumstance where the controlling shareholder or any of its affiliates occupy the Company's funds and assets without compensation.III Horizontal Competition
□ Applicable √ Not applicable
IV Annual and Extraordinary General Meetings Convened during the Reporting Period
1. General Meeting Convened during the Reporting Period
| Meeting | Type | Investor participation ratio | Date of the meeting | Disclosure date | Index to disclosed information |
| The 2019 Annual General Meeting | Annual General Meeting | 55.72% | 15 May 2020 | 16 May 2020 | Announcement No. 2020-028 disclosed on http://www.cninfo.com.cn |
2. Extraordinary General Meetings Convened at the Request of Preference Shareholders with ResumedVoting Rights
□ Applicable √ Not applicable
V Performance of Duty by Independent Directors in the Reporting Period
1. Attendance of Independent Directors at Board Meetings and General Meetings
| Attendance of independent directors at board meetings and general meetings | |||||||
| Independent director | Total number of board meetings the independent director was eligible to attend | Board meetings attended on site | Board meetings attended by way of telecommunication | Board meetings attended through a proxy | Board meetings the independent director failed to attend | The independent director failed to attend two consecutive board meetings or not | General meetings attended |
| Yu Xuehua | 4 | 4 | 0 | 0 | 0 | Not | 1 |
| Wan Jieqiu | 4 | 4 | 0 | 0 | 0 | Not | 1 |
| Zhao Zengyao | 4 | 4 | 0 | 0 | 0 | Not | 1 |
Explanation of why any independent director failed to attend two consecutive board meetings:
No such cases.
2. Objections Raised by Independent Directors on Matters of the Company
Indicate whether any independent directors raised any objections on any matter of the Company.
□ Yes √ No
No such cases in the Reporting Period.
3. Other Information about the Performance of Duty by Independent Directors
Indicate whether any suggestions from independent directors were adopted by the Company.
√ Yes □ No
Explanation on adoption/rejection of recommendations of independent directors:
During the Reporting Period, the independent directors of the Company were able to perform their duties faithfully anddiligently in accordance with the relevant laws and regulations, actively attended the meetings of the Board of Directors and generalmeetings of the Company, carefully reviewed the proposals for each meeting of the Board of Directors of the Company, and carefullyand prudently put forward their independent opinions. In addition, the independent directors of the Company regularly grasped theoperating updates of the Company and made valuable suggestions on the development of internal control, audit work and businessdevelopment planning of the Company.VI Duty Performance of Special Committees under the Board of Directors during theReporting Period
1. Remuneration and Appraisal Committee
The Remuneration and Appraisal Committee held two meetings to study and review the remuneration allocation system of theCompany, and reviewed the performance appraisal mechanism and remuneration allocation plan for directors and seniormanagement. The committee members discussed the removal of trading restrictions on restricted shares in the first grant portion ofthe Company's 2018 restricted shares, believed that the conditions for the removal of restrictions were in compliance with theregulations, and agreed with the repurchase and cancellation of the restricted shares of some resigned employees.
2. Audit Committee
The Audit Committee held six meetings to supervise and evaluate the design and implementation of important measures forinternal control and risk management of the Company, and supervised and inspected major decision-making matters of the Company.It examined the internal audit of the Company and appropriately supervised the external audit, reviewed the work reports prepared bythe Audit Department, reviewed the annual original financial statements prepared by the Company, communicated with theaccountant to determine the time of the annual audit and the audit schedule, and reviewed the financial statements with thepreliminary audit opinions issued by the accountant.
3. Nomination Committee
The Nomination Committee held a meeting, searched for and reviewed candidates for additional directors and nominatedcandidates for additional directors.
4. Strategy Committee
The Strategy Committee held a meeting to summarize the Company's business situation and put forward a plan for futuredevelopment.
VII Performance of Duty by the Supervisory CommitteeIndicate whether the Supervisory Committee identified any risk to the Company during its supervision in the Reporting Period.
□ Yes √ No
The Supervisory Committee raised no objections with respect to matters of the Company.
VIII Appraisal of and Incentive for Senior Management
The Company established a performance appraisal, incentive and restraint mechanism which linked the remunerations of seniormanagement with its business results, implemented a remuneration appraisal system combining the basic annual salary and year-endperformance appraisal, and conducted an annual performance appraisal at the end of the year based on the completion of its annualoperation targets and the performance of senior managements. The Company granted annual performance salaries based on theresults of the performance appraisal, and rewarded and punished relevant persons. The Company has implemented the First StockOption Incentive Plan. The awardees of the first stock option incentive plan (senior managements and core elites/business personnel)have exercised their first, second and third stock options. The Company implemented the "Jincheng No. 1" Employee StockOwnership Plan to offer stock ownership incentives to eligible employees. The plan has been implemented and terminated, and theproperty liquidation and distribution have been completed. The Company implemented the Company's 2018 Restricted ShareIncentive Plan to grant restricted shares to awardees by means of the targeted issue of new stocks, and set the performance appraisalrequirements at the corporate level and the performance appraisal requirements for individual awardees.
The implementation of the stock option incentive plan, restricted share incentive plan and employee stock ownership planeffectively stimulated the enthusiasm of managers, core elites and employees, and played a positive role in retaining the existingexcellent managers and business elites and attracting outstanding external talents, so as to better promote the long-term and stabledevelopment of the Company.
IX Internal Control Assessment Report
1. Significant Defects in Internal Control Identified during the Reporting Period
□ Yes √ No
2. Internal Control Self-Assessment Report
| Date of disclosure of the full internal control assessment report | 30 April 2021 | ||
| Index of full disclosure of the internal control assessment report | http://www.cninfo.com.cn | ||
| Ratio of the total assets of the organizations included in the assessment to the Company's consolidated total assets | 100.00% | ||
| Ratio of the operating revenue of the organizations included in the assessment to the Company's operating revenue in the consolidated financial statements | 100.00% | ||
| Deficiency identification criteria | |||
| Category | Financial report | Non-financial report | |
| Qualitative criteria | In case of the following circumstances (including but not limited to such circumstances), it shall be deemed that a financial report contains material deficiencies: (1) Fraudulent conduct by directors, supervisors and senior managements of the Company; (2) Correction of a published financial report by the Company; (3) Significant misstatement in the financial report of the year identified by a certified public accountant but not identified during the Company's internal control audit; (4) Invalid supervision of the Audit Committee and the Audit Department over the Company's external financial reports and internal control of financial reports. In case of the following circumstances (including but not limited to such circumstances), it shall be deemed that there are "significant deficiencies" or obvious signs of "significant deficiencies": (1) Failure to select or apply accounting policies in accordance with the Accounting Standards for Business Enterprises; (2) Failure to develop anti-fraud | In case of the following circumstances, it shall be deemed that there are "material deficiencies": (1) Lack of democratic decision-making procedures, or unreasonable decision-making procedures, which lead to serious mistakes and cause the Company major property losses; (2) Serious violation of national laws and regulations; (3) Lack of important business management policies, or ineffective systematic functioning of policies; (4) Untimely remediation of the Company's material or significant internal control deficiencies; (5) Constant or massive occurrence of significant internal control deficiencies in the Company. In case of other circumstances, the deficiencies shall be determined as important or | |
| procedures and control measures; (3) Lack of corresponding control mechanism for accounting treatment of unconventional or special transactions, or failure to implement the mechanism and take corresponding compensatory control measures; (4) One or more deficiencies in the control of the financial reporting at the end of the period and failure to reasonably ensure true and accurate statements in the financial report. General deficiencies refer to the control deficiencies other than material and significant deficiencies mentioned above. | general deficiencies according to the degree of influence. | |
| Quantitative criteria | If there is a reasonable possibility that a single internal control deficiency, or an internal control deficiency together with several deficiencies may lead to circumstances where misstatements cannot be timely prevented or identified and remedied and relate to an amount equivalent to or exceeding 5% of the year's gross profit, the deficiency shall be deemed as a material deficiency. If there is a reasonable possibility that a single internal control deficiency, or an internal control deficiency together with several deficiencies may lead to circumstances where misstatements cannot be timely prevented or identified and remedied and relate to an amount equivalent to or exceeding 3% of the year's gross profit but less than 5% of the year's gross profit, the deficiency shall be deemed as a significant deficiency. Internal control deficiencies which do not constitute material or significant deficiencies shall be deemed as general deficiencies. | If a deficiency has a direct or potential negative influence that may cause direct property losses equivalent to or exceeding 3% of the net profit attributable to shareholders of the listed company, the deficiency shall be deemed as a material deficiency. If a deficiency has a direct or potential negative influence that may cause direct property losses equivalent to or exceeding 1% but less than 3% of the net profit attributable to shareholders of the listed company, the deficiency shall be deemed as a significant deficiency. If a deficiency has a direct or potential negative influence that may cause direct property losses less than 1% of the net profit attributable to shareholders of the listed company, the deficiency shall be deemed as a general deficiency. |
| Number of material deficiencies in financial reports | 0 | |
| Number of material deficiencies in non-financial reports | 0 | |
| Number of significant deficiencies in financial reports | 0 | |
| Number of significant deficiencies in non-financial reports | 0 | |
X CPA Firm’s Audit or Assurance Report on Internal Control
Assurance report on internal control:
| Opinion paragraph | |
| Gold Mantis maintained, in all material respects, effective internal control over financial reporting as of 31 December 2020, based on the Basic Rules on Enterprise Internal Control issued by the Ministry of Finance and other applicable rules. | |
| Assurance report on internal control disclosed or not | Disclosed |
| Disclosure date | 30 April 2021 |
| Index to the disclosed report | The Assurance Report on Internal Control disclosed by the Company on http://www.cninfo.com.cn/ dated 30 April 2021 |
| Type of opinion | Unmodified unqualified opinion |
| Material weakness in internal control not related to financial reporting | None |
Indicate whether any modified opinion is expressed in the Assurance Report on Internal Control.
□ Yes √ No
Indicate whether the Assurance Report on Internal Control is consistent with the internal control self-evaluation report issued by theCompany’s Board of Directors.
√ Yes □ No
Part XI Corporate BondsDoes the Company have any corporate bonds publicly offered on the stock exchange, which were outstanding before the date of thisReport’s approval or were due but could not be redeemed in full?No.
Part XII Financial StatementsI Independent Auditor’s Report
| Type of the independent auditor’s opinion | Unmodified unqualified opinion |
| Date of signing the independent auditor’s report | 28 April 2021 |
| Name of the independent auditor | RSM China |
| Number of the independent auditor’s report | RSM China Audit Report [2021] No. 230Z0598 |
| Names of the certified public accountants | Song Wen, Hong Zhiguo, and Long Bing |
Independent Auditor’s ReportTo the Shareholders of Suzhou Gold Mantis Construction Decoration Co., Ltd.I OpinionWe have audited the financial statements of Suzhou Gold Mantis Construction Decoration Co., Ltd. (the “Company”), whichcomprise the consolidated and parent company (the Company as the parent exclusive of subsidiaries) balance sheets as at 31December 2020, the consolidated and parent company statements of income, cash flows and changes in owners’ equity for the yearthen ended, as well as the notes to the financial statements.In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated and parentcompany financial position of the Company at 31 December 2020, and the consolidated and parent company operating results andcash flows for the year then ended, in conformity with the Chinese Accounting Standards (CAS).II Basis for OpinionWe conducted our audits in accordance with the Audit Standards for Chinese Registered Accountants. Our responsibilities underthose standards are further described in the Auditor’s Responsibilities for Audit of Financial Statements section of our report. We areindependent of the Company in accordance with the China Code of Ethics for Certified Public Accountants, and we have fulfilled ourother ethical responsibilities in accordance with the said Code of Ethics. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our opinion.III Key Audit MattersKey audit matters are matters that, based on our professional judgment, are deemed most important to the audit of the financialstatements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, andin forming our opinion thereon, and we do not provide a separate opinion on these matters.
(I) Recognition of Contract Revenue
1. Description
According to the notes to the financial statements including "III. 28 Revenue Recognition Principles and MeasurementMethods" and "V. 40 Operating Revenue and Cost of Sales", Gold Mantis's revenue from construction decoration services amountedto RMB30,117,163,000, accounting for 96.40% of its operating revenue. The amount of revenue from construction decorationservices as well as its ratio to the operating revenue were both material.
Regarding the construction decoration services provided by it, Gold Mantis recognized relevant revenue within a certain periodof time according to the contract performance progress. The contract performance progress was recognized by the ratio of the actualcontract cost for previous contract fulfillment to the projected total cost. The Management of Gold Mantis (hereinafter referred to asthe Management) shall reasonably estimate the total contract revenue and total contract cost of the project at the beginning todetermine the progress, and constantly evaluate and revise major accounting estimations related to the Management during thecontract implementation. Therefore, we regarded the recognition of contract revenue as a key audit matter.
2. Audit Response
Major audit procedures we performed for contract revenue recognition include the following:
(1) Test key internal control procedures related to contract budgeting and revenue recognition.
(2) Recalculate the progress in the project's contract ledger to verify its accuracy.
(3) Extract significant project construction contracts, check the total contract revenue, review key contract provisions, andperform confirmation procedures on the contract status.
(4) Examine the contract and cost budget information on which the Management's projected total revenue and projected totalcost are based, and evaluate the reasonableness of the estimations made by the Management and adequacy of the basis.
(5) Select a sample to test contract costs incurred during the year.
(6) Select engineering projects, conduct on-site inspections of the visual progress of the projects, discuss with the engineeringmanagement departments to confirm the progress of the projects, and compare with the progress of contract recognition in the booksto analyze the reasons for differences.
(7) Carry out analytical review of the fluctuation of the contract revenue, cost and gross margin of major projects.
(II) Recoverability of Accounts Receivable
1. Description
According to the notes to the financial statements including "III. 10 Financial Instruments" and "V. 4 Accounts Receivable", asat 31 December 2020, the gross amount of accounts receivable in the consolidated financial statements of Gold Mantis wasRMB15,470,608,800 and the total amount of allowances for doubtful accounts receivable was RMB1,952,818,800 in total. The
Company set aside loss allowances for accounts receivable according to the lifetime expected credit losses, divided accountsreceivable into several groups by their risk characteristics, and calculated the expected credit losses based on the groups. Since thismatter related to the major accounting estimations and judgments applied by the Management and the recoverability of accountsreceivable were vital to the financial statements, therefore, we regarded the recoverability of accounts receivable as a key auditmatter.
2. Audit Response
Major audit procedures we performed for recoverability of accounts receivable include the following:
(1) Learn about the Management's key internal control measures for financial reporting related to credit control, recovery ofaccounts, and assessment of the impairment allowances for receivables, and evaluate the design and operating effectiveness of theseinternal control measures.
(2) Assess the accuracy of the methods, inputs and assumptions used by the Management in calculating the impairmentallowances for receivables, and review the adequacy of the allowances for doubtful accounts.
(3) Obtain and examine contracts of major customers to understand the contractual settlement policies and conduct comparativeanalysis of them and the credit policies actually implemented.
(4) Review the Management's considerations and objective evidence related to the assessment of the recoverability of accountsreceivable.
(5) Retrieve the industrial and commercial records or inquire the industrial and commercial information of major customers inthe national enterprise credit information publicity system, examine the aging of accounts receivable and repayment histories, andassess whether the recoverability of accounts receivable is affected by the financial problems of the counterparties.
(6) Check the litigation situation within the Reporting Period, and learn about the recovery status of corresponding accountsreceivable and the allowances for doubtful accounts.
(7) Evaluate the reasonableness of the Management's establishment of allowances for doubtful accounts in relation to theaccounts receivable for which the Management set aside the allowances for doubtful accounts according to the groups by credit riskcharacteristics, and give consideration to the credit risk characteristics and aging analysis during the evaluation.
(8) Implement confirmation procedures and post-recovery checks to evaluate the reasonableness of the Management'sestablishment of allowances for doubtful accounts.
IV Other Information
The Company’s management is responsible for the other information. The other information comprises all of the informationincluded in the Company’s 2020 Annual Report other than the financial statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance
conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so,consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the auditor otherwise appears to be materially misstated.If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we arerequired to report that fact. We have nothing to report in this regard.V Responsibilities of Management and Those Charged with Governance for Financial StatementsThe Company’s management is responsible for the preparation of the financial statements that give a fair view in accordancewith CAS, and for designing, implementing and maintaining such internal control as the management determines is necessary toenable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.In preparing the financial statements, the management is responsible for assessing the Company’s ability to continue as a goingconcern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless themanagement either intends to liquidate the Company or to cease operations, or have no realistic alternative but to do so.Those charged with governance are responsible for overseeing the Company’s financial reporting process.VI Auditor’s Responsibilities for Audit of Financial StatementsOur objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from materialmisstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a highlevel of assurance, but is not a guarantee that an audit conducted in accordance with CAS will always detect a material misstatementwhen it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they couldreasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.As part of an audit in accordance with CAS, we exercise professional judgment and maintain professional skepticism throughoutthe audit. We also:
(I) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design andperform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, asfraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
(II) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate inthe circumstances, but not for the purpose of expressing an opinion on the effectiveness of internal controls.
(III) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and relateddisclosures made by the management.
(IV) Conclude on the appropriateness of the management’s use of the going concern basis of accounting and, based on the auditevidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on theCompany’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required by CAS to drawusers’ attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, tomodify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, futureevents or conditions may cause the Company to cease to continue as a going concern.(V) Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whetherthe financial statements represent the underlying transactions and events in a manner that achieves fair presentation.(VI) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities withinthe Company to express an opinion on the financial statements. We are responsible for the direction, supervision and performance ofthe Company audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the auditand significant audit findings, including any noteworthy deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirementsregarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear onour independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significancein the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in ourauditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, wedetermine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably beexpected to outweigh the public interest benefits of such communication.II Financial StatementsCurrency unit for the financial statements and the notes thereto: RMB
1. Consolidated Balance Sheet
Prepared by Suzhou Gold Mantis Construction Decoration Co., Ltd.
31 December 2020
Unit: RMB
| Item | 31 December 2020 | 31 December 2019 |
| Current assets： |
| Monetary assets | 6,372,631,845.72 | 6,077,758,993.30 |
| Settlement reserve | ||
| Loans to other banks and financial institutions | ||
| Held-for-trading financial assets | 2,172,086,741.05 | 1,694,650,654.74 |
| Derivative financial assets | ||
| Notes receivable | 8,834,516,728.65 | 4,365,558,567.45 |
| Accounts receivable | 13,517,789,956.57 | 22,003,095,138.84 |
| Receivables financing | 275,822,920.18 | 261,530,861.26 |
| Prepayments | 184,622,237.74 | 287,524,499.91 |
| Premiums receivable | ||
| Reinsurance receivables | ||
| Receivable reinsurance contract reserve | ||
| Other receivables | 238,574,992.82 | 248,803,300.64 |
| Including: Interest receivable | ||
| Dividends receivable | ||
| Financial assets purchased under resale agreements | ||
| Inventories | 53,841,882.04 | 101,344,129.28 |
| Contract assets | 8,776,903,224.25 | |
| Assets held for sale | ||
| Current portion of non-current assets | 89,386,364.69 | 31,381,819.35 |
| Other current assets | 113,007,717.52 | 116,384,039.46 |
| Total current assets | 40,629,184,611.23 | 35,188,032,004.23 |
| Non-current assets： | ||
| Loans and advances to customers | ||
| Debt investments | ||
| Other debt investments | ||
| Long-term receivables | 1,528,021,000.84 | 1,438,636,412.30 |
| Long-term equity investments | 225,124.06 | 22,838,423.66 |
| Investments in other equity instruments | ||
| Other non-current financial assets | 512,022,000.00 | 444,022,000.00 |
| Investment property | 135,295,908.94 | 78,250,561.70 |
| Fixed assets | 892,169,838.74 | 910,175,452.03 |
| Construction in progress | 41,215,785.57 | 71,905,579.25 |
| Productive living assets | ||
| Oil and gas assets | ||
| Right-of-use assets | ||
| Intangible assets | 89,542,508.36 | 109,105,821.09 |
| Development costs | ||
| Goodwill | 408,055,407.05 | 435,818,777.74 |
| Long-term prepaid expense | 49,904,354.32 | 157,443,245.55 |
| Deferred income tax assets | 438,241,669.12 | 415,401,109.41 |
| Other non-current assets | 279,435,220.04 | 201,762,268.01 |
| Total non-current assets | 4,374,128,817.04 | 4,285,359,650.74 |
| Total assets | 45,003,313,428.27 | 39,473,391,654.97 |
| Current liabilities： | ||
| Short-term borrowings | 714,363,172.85 | 875,691,128.75 |
| Borrowings from the central bank | ||
| Loans from other banks and financial institutions | ||
| Held-for-trading financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | 4,871,222,687.68 | 4,602,520,476.92 |
| Accounts payable | 17,046,906,908.50 | 13,279,769,499.13 |
| Advances from customers | 790,724,499.17 | |
| Contract liabilities | 818,343,554.80 | |
| Financial assets sold under repurchase agreements | ||
| Customer deposits and deposits from other banks and financial institutions | ||
| Payables for acting trading of securities | ||
| Payables for underwriting of securities | ||
| Employee benefits payable | 1,700,769,141.23 | 1,748,073,732.96 |
| Taxes and levies payable | 216,975,877.33 | 256,606,598.88 |
| Other payables | 299,482,436.62 | 593,947,128.96 |
| Including: Interest payable | ||
| Dividends payable | 10,574,000.00 | 6,620,000.00 |
| Fees and commissions payable | ||
| Reinsurance payables | ||
| Liabilities directly associated with assets held for sale | ||
| Current portion of non-current liabilities | 51,083,934.28 | 22,000,000.00 |
| Other current liabilities | 1,297,749,046.76 | 1,062,569,828.91 |
| Total current liabilities | 27,016,896,760.05 | 23,231,902,893.68 |
| Non-current liabilities： | ||
| Insurance contract reserve | ||
| Long-term borrowings | 836,918,353.34 | 838,561,722.30 |
| Bonds payable | ||
| Including: Preference shares | ||
| Perpetual bonds | ||
| Lease liabilities | ||
| Long-term payables | ||
| Long-term employee benefits payable | ||
| Provisions | ||
| Deferred income | ||
| Deferred income tax liabilities | 4,163,618.41 | 2,931,338.35 |
| Other non-current liabilities | ||
| Total non-current liabilities | 841,081,971.75 | 841,493,060.65 |
| Total liabilities | 27,857,978,731.80 | 24,073,395,954.33 |
| Owners’ equity： | ||
| Share capital | 2,683,358,689.00 | 2,676,408,689.00 |
| Other equity instruments | ||
| Including: Preference shares | ||
| Perpetual bonds | ||
| Capital reserves | 368,723,316.20 | 342,175,389.87 |
| Less: Treasury shares | 121,595,650.00 | 132,069,000.00 |
| Other comprehensive income | -7,462,575.66 | 57,504,092.23 |
| Specific reserve | ||
| Surplus reserves | 1,360,431,738.20 | 1,358,670,354.99 |
| General reserve | ||
| Retained earnings | 12,725,196,506.07 | 10,853,403,316.80 |
| Total equity attributable to owners of the Company as the parent | 17,008,652,023.81 | 15,156,092,842.89 |
| Non-controlling interests | 136,682,672.66 | 243,902,857.75 |
| Total owners’ equity | 17,145,334,696.47 | 15,399,995,700.64 |
| Total liabilities and owners’ equity | 45,003,313,428.27 | 39,473,391,654.97 |
Legal representative: Wang Hanlin Head of accounting affairs: Cai Guohua Head of the accounting department: Cai Guohua
2. Balance Sheet of the Company as the Parent
Unit: RMB
| Item | 31 December 2020 | 31 December 2019 |
| Current assets： | ||
| Monetary assets | 4,157,896,016.45 | 3,236,414,236.21 |
| Held-for-trading financial assets | 891,634,191.47 | 1,177,233,688.22 |
| Derivative financial assets | ||
| Notes receivable | 5,603,812,080.85 | 2,720,966,717.92 |
| Accounts receivable | 9,578,054,598.29 | 15,070,584,579.15 |
| Receivables financing | 211,831,423.35 | 227,611,894.42 |
| Prepayments | 109,893,040.95 | 67,179,176.34 |
| Other receivables | 335,745,131.01 | 369,029,544.53 |
| Including: Interest receivable | ||
| Dividends receivable | 40,000,000.00 | 40,000,000.00 |
| Inventories | 465,048.33 | 2,108,652.15 |
| Contract assets | 5,258,632,942.40 | |
| Assets held for sale | ||
| Current portion of non-current assets | ||
| Other current assets | 256,087.10 | 141,935.84 |
| Total current assets | 26,148,220,560.20 | 22,871,270,424.78 |
| Non-current assets： |
| Debt investments | ||
| Other debt investments | ||
| Long-term receivables | ||
| Long-term equity investments | 2,504,132,432.26 | 2,450,189,252.52 |
| Investments in other equity instruments | ||
| Other non-current financial assets | 512,022,000.00 | 444,022,000.00 |
| Investment property | 113,286,785.38 | 92,392,476.23 |
| Fixed assets | 720,890,710.89 | 725,719,586.11 |
| Construction in progress | 40,535,876.61 | 50,987,676.95 |
| Productive living assets | ||
| Oil and gas assets | ||
| Right-of-use assets | ||
| Intangible assets | 28,715,614.95 | 31,263,899.40 |
| Development costs | ||
| Goodwill | ||
| Long-term prepaid expense | 33,042,253.63 | 36,115,310.40 |
| Deferred income tax assets | 292,343,099.89 | 269,961,767.22 |
| Other non-current assets | 112,297,729.01 | 90,447,503.15 |
| Total non-current assets | 4,357,266,502.62 | 4,191,099,471.98 |
| Total assets | 30,505,487,062.82 | 27,062,369,896.76 |
| Current liabilities： | ||
| Short-term borrowings | 92,385,970.13 | 454,870,134.35 |
| Held-for-trading financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | 2,600,907,620.27 | 2,524,818,850.29 |
| Accounts payable | 10,747,889,172.00 | 8,227,541,063.77 |
| Advances from customers | 325,775,470.52 | |
| Contract liabilities | 449,649,019.21 | |
| Employee benefits payable | 1,300,435,009.72 | 1,377,238,718.10 |
| Taxes and levies payable | 111,246,421.74 | 94,928,342.32 |
| Other payables | 150,784,450.66 | 489,198,564.99 |
| Including: Interest payable | ||
| Dividends payable | 10,574,000.00 | 6,620,000.00 |
| Liabilities directly associated with assets held for sale | ||
| Current portion of non-current liabilities | ||
| Other current liabilities | 949,026,505.13 | 810,122,476.37 |
| Total current liabilities | 16,402,324,168.86 | 14,304,493,620.71 |
| Non-current liabilities： | ||
| Long-term borrowings | ||
| Bonds payable | ||
| Including: Preference shares | ||
| Perpetual bonds | ||
| Lease liabilities | ||
| Long-term payables | ||
| Long-term employee benefits payable | ||
| Provisions | ||
| Deferred income | ||
| Deferred income tax liabilities | 245,128.72 | 185,053.23 |
| Other non-current liabilities | ||
| Total non-current liabilities | 245,128.72 | 185,053.23 |
| Total liabilities | 16,402,569,297.58 | 14,304,678,673.94 |
| Owners’ equity： | ||
| Share capital | 2,683,358,689.00 | 2,676,408,689.00 |
| Other equity instruments | ||
| Including: Preference shares | ||
| Perpetual bonds | ||
| Capital reserves | 464,113,394.70 | 437,549,701.78 |
| Less: Treasury shares | 121,595,650.00 | 132,069,000.00 |
| Other comprehensive income | ||
| Specific reserve | ||
| Surplus reserves | 1,360,431,738.20 | 1,358,670,354.99 |
| Retained earnings | 9,716,609,593.34 | 8,417,131,477.05 |
| Total owners’ equity | 14,102,917,765.24 | 12,757,691,222.82 |
| Total liabilities and owners’ equity | 30,505,487,062.82 | 27,062,369,896.76 |
3. Consolidated Income Statement
Unit: RMB
| Item | 2020 | 2019 |
| 1. Revenues | 31,243,227,802.04 | 30,834,654,530.30 |
| Including: Operating revenue | 31,243,227,802.04 | 30,834,654,530.30 |
| Interest income | ||
| Insurance premium income | ||
| Fee and commission income | ||
| 2. Costs and expenses | 28,234,372,648.30 | 27,926,731,277.92 |
| Including: Cost of sales | 26,058,435,143.23 | 25,164,792,617.65 |
| Interest expense | ||
| Fee and commission expense | ||
| Surrenders | ||
| Net insurance claims paid | ||
| Net amount provided as insurance contract reserve | ||
| Expenditure on policy dividends | ||
| Reinsurance premium expense | ||
| Taxes and levies | 108,178,512.22 | 94,606,201.19 |
| Selling expense | 375,964,501.30 | 650,794,185.74 |
| Administrative expense | 604,846,088.47 | 1,001,785,370.49 |
| R&D expense | 955,782,334.18 | 879,866,123.50 |
| Finance costs | 131,166,068.90 | 134,886,779.35 |
| Including: Interest expense | 145,524,591.79 | 142,341,566.80 |
| Interest income | 41,474,553.83 | 26,670,537.36 |
| Add: Other income | 54,684,095.82 | 19,660,084.94 |
| Return on investment (“－” for loss) | 37,648,383.31 | 33,199,676.51 |
| Including: Share of profit or loss of joint ventures and associates | -9,556,696.62 | -6,162,676.00 |
| Income from the derecognition of financial assets at amortized cost |
| Exchange gain (“－” for loss) | ||
| Net gain on exposure hedges (“－” for loss) | ||
| Gain on changes in fair value (“－” for loss) | -723,913.69 | -59,789,345.26 |
| Credit impairment loss (“－” for loss) | -452,355,161.86 | -205,096,377.78 |
| Asset impairment loss (“－” for loss) | 66,073,084.77 | -3,651.14 |
| Asset disposal income (“－” for loss) | 114,042.29 | -1,219,850.07 |
| 3. Operating profit (“－” for loss) | 2,714,295,684.38 | 2,694,673,789.58 |
| Add: Non-operating income | 285,660.49 | 4,950,546.95 |
| Less: Non-operating expense | 4,298,740.33 | 4,533,450.34 |
| 4. Gross profit (“－” for gross loss) | 2,710,282,604.54 | 2,695,090,886.19 |
| Less: Income tax expense | 369,673,831.88 | 434,386,321.47 |
| 5. Net profit (“－” for net loss) | 2,340,608,772.66 | 2,260,704,564.72 |
| 5.1 By operating continuity | ||
| 5.1.1 Net profit from continuing operations (“－” for net loss) | 2,340,608,772.66 | 2,260,704,564.72 |
| 5.1.2 Net profit from discontinued operations (“－” for net loss) | ||
| 5.2 By ownership | ||
| 5.2.1 Net profit attributable to owners of the Company as the parent | 2,373,915,319.52 | 2,349,395,605.96 |
| 5.2.2 Net profit attributable to non-controlling interests | -33,306,546.86 | -88,691,041.24 |
| 6. Other comprehensive income, net of tax | -67,210,472.64 | 19,359,395.45 |
| Other comprehensive income, net of tax attributable to owners of the Company as the parent | -64,966,667.89 | 23,261,261.16 |
| 6.1 Other comprehensive income that will not be reclassified to profit or loss | ||
| 6.1.1 Changes caused by remeasurements on defined benefit schemes |
| 6.1.2 Other comprehensive income that will not be reclassified to profit or loss under the equity method | ||
| 6.1.3 Changes in the fair value of investments in other equity instruments | ||
| 6.1.4 Changes in the fair value arising from changes in own credit risk | ||
| 6.1.5 Others | ||
| 6.2 Other comprehensive income that will be reclassified to profit or loss | -64,966,667.89 | 23,261,261.16 |
| 6.2.1 Other comprehensive income that will be reclassified to profit or loss under the equity method | ||
| 6.2.2 Changes in the fair value of other debt investments | ||
| 6.2.3 Other comprehensive income arising from the reclassification of financial assets | ||
| 6.2.4 Credit impairment allowance for other debt investments | ||
| 6.2.5 Reserve for cash flow hedges | ||
| 6.2.6 Differences arising from the translation of foreign currency-denominated financial statements | -64,966,667.89 | 23,261,261.16 |
| 6.2.7 Others | ||
| Other comprehensive income, net of tax attributable to non-controlling interests | -2,243,804.75 | -3,901,865.71 |
| 7. Total comprehensive income | 2,273,398,300.02 | 2,280,063,960.17 |
| Total comprehensive income attributable to owners of the Company as the parent | 2,308,948,651.63 | 2,372,656,867.12 |
| Total comprehensive income attributable to non-controlling interests | -35,550,351.61 | -92,592,906.95 |
| 8. Earnings per share： |
| 8.1 Basic earnings per share | 0.88 | 0.88 |
| 8.2 Diluted earnings per share | 0.89 | 0.88 |
Where business combinations involving entities under common control occurred in the current period, the net profit achieved by theacquirees before the combinations was RMB , with the amount for last year being RMB .Legal representative: Wang Hanlin Head of accounting affairs: Cai Guohua Head of the accounting department: Cai Guohua
4. Income Statement of the Company as the Parent
Unit: RMB
| Item | 2020 | 2019 |
| 1. Operating revenue | 19,488,441,946.54 | 18,407,435,161.21 |
| Less: Cost of sales | 16,086,748,755.05 | 14,958,708,586.59 |
| Taxes and levies | 70,254,919.85 | 55,820,655.17 |
| Selling expense | 215,311,596.91 | 213,708,147.95 |
| Administrative expense | 207,882,651.82 | 311,841,065.34 |
| R&D expense | 630,431,222.68 | 581,507,156.73 |
| Finance costs | 21,814,116.30 | 30,275,095.10 |
| Including: Interest expense | 39,834,849.73 | 41,481,410.00 |
| Interest income | 25,703,322.50 | 12,746,149.65 |
| Add: Other income | 7,225,891.98 | 10,536,596.42 |
| Return on investment (“－” for loss) | 22,017,920.22 | 144,357,442.83 |
| Including: Share of profit or loss of joint ventures and associates | -2,390,420.50 | -4,226,587.96 |
| Income from the derecognition of financial assets at amortized cost (“－” for loss) | ||
| Net gain on exposure hedges (“－” for loss) | ||
| Gain on changes in fair value (“－” for loss) | 400,503.25 | -62,766,311.78 |
| Credit impairment loss (“－” for loss) | -274,434,880.37 | -99,321,459.92 |
| Asset impairment loss (“－” for loss) | 60,930,272.68 | |
| Asset disposal income (“－” for loss) | 1,244.46 | -137,414.85 |
| 2. Operating profit (“－” for loss) | 2,072,139,636.15 | 2,248,243,307.03 |
| Add: Non-operating income | 17,608.54 | 1,793,615.46 |
| Less: Non-operating expense | 3,460,122.37 | 3,544,219.28 |
| 3. Gross profit (“－” for gross loss) | 2,068,697,122.32 | 2,246,492,703.21 |
| Less: Income tax expense | 248,609,717.13 | 271,729,104.10 |
| 4. Net profit (“－” for net loss) | 1,820,087,405.19 | 1,974,763,599.11 |
| 4.1 Net profit from continuing operations (“－” for net loss) | 1,820,087,405.19 | 1,974,763,599.11 |
| 4.2 Net profit from discontinued operations (“－” for net loss) | ||
| 5. Other comprehensive income, net of tax | ||
| 5.1 Other comprehensive income that will not be reclassified to profit or loss | ||
| 5.1.1 Changes caused by remeasurements on defined benefit schemes | ||
| 5.1.2 Other comprehensive income that will not be reclassified to profit or loss under the equity method | ||
| 5.1.3 Changes in the fair value of investments in other equity instruments | ||
| 5.1.4 Changes in the fair value arising from changes in own credit risk | ||
| 5.1.5 Others | ||
| 5.2 Other comprehensive income that will be reclassified to profit or loss | ||
| 5.2.1 Other comprehensive income that will be reclassified to profit or loss under the equity method | ||
| 5.2.2 Changes in the fair value of other debt investments | ||
| 5.2.3 Other comprehensive income arising from the reclassification of financial assets |
| 5.2.4 Credit impairment allowance for other debt investments | ||
| 5.2.5 Reserve for cash flow hedges | ||
| 5.2.6 Differences arising from the translation of foreign currency-denominated financial statements | ||
| 5.2.7 Others | ||
| 6. Total comprehensive income | 1,820,087,405.19 | 1,974,763,599.11 |
| 7. Earnings per share： | ||
| 7.1 Basic earnings per share | ||
| 7.2 Diluted earnings per share |
5. Consolidated Cash Flow Statement
Unit: RMB
| Item | 2020 | 2019 |
| 1. Cash flows from operating activities: | ||
| Proceeds from sale of goods and rendering of services | 28,786,537,582.19 | 28,351,807,710.20 |
| Net increase in customer deposits and deposits from other banks and financial institutions | ||
| Net increase in borrowings from the central bank | ||
| Net increase in loans from other financial institutions | ||
| Premiums received on original insurance contracts | ||
| Net proceeds from reinsurance | ||
| Net increase in deposits and investments of policy holders | ||
| Interest, fees and commissions received | ||
| Net increase in loans from other banks and financial institutions | ||
| Net increase in proceeds from |
| repurchase transactions | ||
| Net proceeds from acting trading of securities | ||
| Tax and levy rebates | 1,284,072.45 | |
| Cash generated from other operating activities | 93,168,696.84 | 309,362,695.48 |
| Subtotal of cash generated from operating activities | 28,880,990,351.48 | 28,661,170,405.68 |
| Payments for goods and services | 22,055,723,564.18 | 21,861,009,207.12 |
| Net increase in loans and advances to customers | ||
| Net increase in deposits in the central bank and other banks and financial institutions | ||
| Payments for claims on original insurance contracts | ||
| Net increase in loans to other banks and financial institutions | ||
| Interest, fees and commissions paid | ||
| Policy dividends paid | ||
| Cash paid to and for employees | 3,079,182,809.78 | 3,307,568,892.12 |
| Taxes and levies paid | 1,437,637,805.83 | 1,272,742,487.76 |
| Cash used in other operating activities | 531,330,929.53 | 464,629,835.97 |
| Subtotal of cash used in operating activities | 27,103,875,109.32 | 26,905,950,422.97 |
| Net cash generated from/used in operating activities | 1,777,115,242.16 | 1,755,219,982.71 |
| 2. Cash flows from investing activities: | ||
| Proceeds from disinvestment | 10,750,380,711.98 | 15,990,497,000.00 |
| Return on investment | 36,709,817.00 | 71,824,868.85 |
| Net proceeds from the disposal of fixed assets, intangible assets and other long-term assets | 10,427,451.26 | 15,604,661.15 |
| Net proceeds from the disposal of subsidiaries and other business units | 18,588,895.83 | 6,979,638.34 |
| Cash generated from other | 40,803,606.39 | 28,232,114.75 |
| investing activities | ||
| Subtotal of cash generated from investing activities | 10,856,910,482.46 | 16,113,138,283.09 |
| Payments for the acquisition and construction of fixed assets, intangible assets and other long-term assets | 156,882,830.00 | 234,621,611.98 |
| Payments for investments | 11,272,570,711.98 | 14,508,833,700.00 |
| Net increase in pledged loans granted | ||
| Net payments for the acquisition of subsidiaries and other business units | 1,155,000.00 | 1,155,000.00 |
| Cash used in other investing activities | ||
| Subtotal of cash used in investing activities | 11,430,608,541.98 | 14,744,610,311.98 |
| Net cash generated from/used in investing activities | -573,698,059.52 | 1,368,527,971.11 |
| 3. Cash flows from financing activities: | ||
| Capital contributions received | 12,097,000.00 | |
| Including: Capital contributions by non-controlling interests to subsidiaries | ||
| Borrowings received | 1,152,731,644.19 | 1,513,451,675.11 |
| Cash generated from other financing activities | 8,947,438.58 | |
| Subtotal of cash generated from financing activities | 1,173,776,082.77 | 1,513,451,675.11 |
| Repayment of borrowings | 1,286,050,226.89 | 960,980,251.99 |
| Interest and dividends paid | 684,834,689.56 | 675,762,948.06 |
| Including: Dividends paid by subsidiaries to non-controlling interests | ||
| Cash used in other financing activities | 25,511,610.47 | |
| Subtotal of cash used in financing activities | 1,970,884,916.45 | 1,662,254,810.52 |
| Net cash generated from/used in financing activities | -797,108,833.68 | -148,803,135.41 |
| 4. Effect of foreign exchange rate changes on cash and cash equivalents | -103,159,005.40 | 7,342,160.41 |
| 5. Net increase in cash and cash equivalents | 303,149,343.56 | 2,982,286,978.82 |
| Add: Cash and cash equivalents, beginning of the period | 6,051,660,327.62 | 3,069,373,348.80 |
| 6. Cash and cash equivalents, end of the period | 6,354,809,671.18 | 6,051,660,327.62 |
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
| Item | 2020 | 2019 |
| 1. Cash flows from operating activities: | ||
| Proceeds from sale of goods and rendering of services | 18,436,592,629.73 | 16,825,060,500.01 |
| Tax and levy rebates | 1,284,072.45 | |
| Cash generated from other operating activities | 43,713,301.52 | 321,241,968.44 |
| Subtotal of cash generated from operating activities | 18,481,590,003.70 | 17,146,302,468.45 |
| Payments for goods and services | 13,571,164,135.69 | 12,923,688,852.58 |
| Cash paid to and for employees | 1,913,288,537.87 | 1,704,660,273.86 |
| Taxes and levies paid | 899,383,766.94 | 721,116,299.74 |
| Cash used in other operating activities | 381,796,864.00 | 108,175,930.61 |
| Subtotal of cash used in operating activities | 16,765,633,304.50 | 15,457,641,356.79 |
| Net cash generated from/used in operating activities | 1,715,956,699.20 | 1,688,661,111.66 |
| 2. Cash flows from investing activities: | ||
| Proceeds from disinvestment | 6,917,500,000.00 | 9,528,608,000.00 |
| Return on investment | 20,818,419.64 | 113,021,049.74 |
| Net proceeds from the disposal of fixed assets, intangible assets and other long-term assets | 447,821.68 | 3,008,052.09 |
| Net proceeds from the disposal of subsidiaries and other business units | ||
| Cash generated from other investing activities | 24,713,108.45 | 15,385,633.48 |
| Subtotal of cash generated from investing activities | 6,963,479,349.77 | 9,660,022,735.31 |
| Payments for the acquisition and construction of fixed assets, intangible assets and other long-term assets | 80,448,492.27 | 88,674,858.35 |
| Payments for investments | 6,748,098,222.33 | 9,208,549,753.60 |
| Net payments for the acquisition of subsidiaries and other business units | ||
| Cash used in other investing activities | ||
| Subtotal of cash used in investing activities | 6,828,546,714.60 | 9,297,224,611.95 |
| Net cash generated from/used in investing activities | 134,932,635.17 | 362,798,123.36 |
| 3. Cash flows from financing activities: | ||
| Capital contributions received | 12,097,000.00 | |
| Borrowings received | 396,206,771.20 | 454,690,696.85 |
| Cash generated from other financing activities | ||
| Subtotal of cash generated from financing activities | 408,303,771.20 | 454,690,696.85 |
| Repayment of borrowings | 758,511,497.92 | 50,172,297.61 |
| Interest and dividends paid | 577,292,481.85 | 572,560,553.00 |
| Cash used in other financing activities | 16,564,171.89 | |
| Subtotal of cash used in financing activities | 1,352,368,151.66 | 622,732,850.61 |
| Net cash generated from/used in financing activities | -944,064,380.46 | -168,042,153.76 |
| 4. Effect of foreign exchange rate changes on cash and cash equivalents | -2,897,559.61 | 3,663,831.23 |
| 5. Net increase in cash and cash equivalents | 903,927,394.30 | 1,887,080,912.49 |
| Add: Cash and cash equivalents, beginning of the period | 3,236,146,447.61 | 1,349,065,535.12 |
| 6. Cash and cash equivalents, end of the period | 4,140,073,841.91 | 3,236,146,447.61 |
7. Consolidated Statements of Changes in Owners’ Equity
2020
Unit: RMB
| Item | 2020 | ||||||||||||||
| Equity attributable to owners of the Company as the parent | Non-controlling interests | Total owners’ equity | |||||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: Treasury shares | Other comprehensive income | Specific reserve | Surplus reserves | General reserve | Retained earnings | Others | Subtotal | |||||
| Preference shares | Perpetual bonds | Others | |||||||||||||
| 1. Balance as at the end of the prior year | 2,676,408,689.00 | 342,175,389.87 | 132,069,000.00 | 57,504,092.23 | 1,358,670,354.99 | 10,853,403,316.80 | 15,156,092,842.89 | 243,902,857.75 | 15,399,995,700.64 | ||||||
| Add: Adjustments for changes in accounting policies | 1,761,383.21 | 34,339,607.55 | 36,100,990.76 | 3,075,706.90 | 39,176,697.66 | ||||||||||
| Adjustments for correction of previous errors | |||||||||||||||
| Adjustments for business combinations involving entities under common control | |||||||||||||||
| Other adjustments | |||||||||||||||
| 2. Balance as at the beginning of the year | 2,676,408,689.00 | 342,175,389.87 | 132,069,000.00 | 57,504,092.23 | 1,360,431,738.20 | 10,887,742,924.35 | 15,192,193,833.65 | 246,978,564.65 | 15,439,172,398.30 | ||||||
| 3. Increase/decrease in the period (“-” for decrease) | 6,950,000.00 | 26,547,926.33 | -10,473,350.00 | -64,966,667.89 | 1,837,453,581.72 | 1,816,458,190.16 | -110,295,891.99 | 1,706,162,298.17 | |||||||
| 3.1 Total | -64,96 | 2,373, | 2,308, | -35,55 | 2,273, | ||||||||||
| comprehensive income | 6,667.89 | 915,319.52 | 948,651.63 | 0,351.61 | 398,300.02 | ||||||||||
| 3.2 Capital increased and reduced by owners | 6,950,000.00 | 26,547,926.33 | -10,473,350.00 | 43,971,276.33 | -74,745,540.38 | -30,774,264.05 | |||||||||
| 3.2.1 Ordinary shares increased by owners | 6,950,000.00 | 6,950,000.00 | -74,745,540.38 | -67,795,540.38 | |||||||||||
| 3.2.2 Capital increased by holders of other equity instruments | |||||||||||||||
| 3.2.3 Share-based payments recognized in owners’ equity | 26,563,692.92 | 32,080,000.00 | -5,516,307.08 | -5,516,307.08 | |||||||||||
| 3.2.4 Others | -15,766.59 | -42,553,350.00 | 42,537,583.41 | 42,537,583.41 | |||||||||||
| 3.3 Profit distribution | -536,461,737.80 | -536,461,737.80 | -536,461,737.80 | ||||||||||||
| 3.3.1 Appropriation to surplus reserves | |||||||||||||||
| 3.3.2 Appropriation to general reserve | |||||||||||||||
| 3.3.3 Appropriation to owners (or shareholders) | -536,461,737.80 | -536,461,737.80 | -536,461,737.80 | ||||||||||||
| 3.3.4 Other | |||||||||||||||
| 3.4 Transfers within owners’ equity |
| 3.4.1 Increase in capital (or share capital) from capital reserves | |||||||||||||||
| 3.4.2 Increase in capital (or share capital) from surplus reserves | |||||||||||||||
| 3.4.3 Surplus reserves used to offset loss | |||||||||||||||
| 3.4.4 Changes in defined benefit schemes transferred to retained earnings | |||||||||||||||
| 3.4.5 Other comprehensive income transferred to retained earnings | |||||||||||||||
| 3.4.6 Others | |||||||||||||||
| 3.5 Specific reserve | |||||||||||||||
| 3.5.1 Increase in the period | |||||||||||||||
| 3.5.2 Used in the period | |||||||||||||||
| 3.6 Other | |||||||||||||||
| 4. Balance as at the end of the period | 2,683,358,689.00 | 368,723,316.20 | 121,595,650.00 | -7,462,575.66 | 1,360,431,738.20 | 12,725,196,506.07 | 17,008,652,023.81 | 136,682,672.66 | 17,145,334,696.47 |
2019
Unit: RMB
| Item | 2019 | ||||||||||||||
| Equity attributable to owners of the Company as the parent | Non-controlling interests | Total owners’ equity | |||||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: Treasury shares | Other comprehensive income | Specific reserve | Surplus reserves | General reserve | Retained earnings | Others | Subtotal | |||||
| Preference shares | Perpetual bonds | Others | |||||||||||||
| 1. Balance as at the end of the prior year | 2,676,408,689.00 | 256,683,499.94 | 132,069,000.00 | 34,242,831.07 | 1,161,193,995.08 | 9,236,765,808.55 | 13,233,225,823.64 | 372,327,191.88 | 13,605,553,015.52 | ||||||
| Add: Adjustments for changes in accounting policies | |||||||||||||||
| Adjustments for correction of previous errors | |||||||||||||||
| Adjustments for business combinations involving entities under common control | |||||||||||||||
| Other adjustments | |||||||||||||||
| 2. Balance as at the beginning of the year | 2,676,408,689.00 | 256,683,499.94 | 132,069,000.00 | 34,242,831.07 | 1,161,193,995.08 | 9,236,765,808.55 | 13,233,225,823.64 | 372,327,191.88 | 13,605,553,015.52 | ||||||
| 3. Increase/decrease in the period (“-” for decrease) | 85,491,889.93 | 23,261,261.16 | 197,476,359.91 | 1,616,637,508.25 | 1,922,867,019.25 | -128,424,334.13 | 1,794,442,685.12 | ||||||||
| 3.1 Total comprehensive income | 23,261,261.16 | 2,349,395,605.96 | 2,372,656,867.12 | -92,592,906.95 | 2,280,063,960.17 | ||||||||||
| 3.2 Capital increased and reduced by owners | 84,466,463.78 | 84,466,463.78 | -35,831,427.18 | 48,635,036.60 | |||||||||||
| 3.2.1 Ordinary shares increased by owners | -35,831,427.18 | -35,831,427.18 | |||||||||||||
| 3.2.2 Capital increased by holders of other equity instruments | |||||||||||||||
| 3.2.3 Share-based payments recognized in owners’ equity | 84,466,463.78 | 84,466,463.78 | 84,466,463.78 | ||||||||||||
| 3.2.4 Others | |||||||||||||||
| 3.3 Profit distribution | 1,025,426.15 | 197,476,359.91 | -732,758,097.71 | -534,256,311.65 | -534,256,311.65 | ||||||||||
| 3.3.1 Appropriation to surplus reserves | 197,476,359.91 | -197,476,359.91 | |||||||||||||
| 3.3.2 Appropriation to general reserve | |||||||||||||||
| 3.3.3 Appropriation to owners (or shareholders) | -535,281,737.80 | -535,281,737.80 | -535,281,737.80 | ||||||||||||
| 3.3.4 Other | 1,025,426.15 | 1,025,426.15 | 1,025,426.15 | ||||||||||||
| 3.4 Transfers within owners’ equity | |||||||||||||||
| 3.4.1 Increase in |
| capital (or share capital) from capital reserves | |||||||||||||||
| 3.4.2 Increase in capital (or share capital) from surplus reserves | |||||||||||||||
| 3.4.3 Surplus reserves used to offset loss | |||||||||||||||
| 3.4.4 Changes in defined benefit schemes transferred to retained earnings | |||||||||||||||
| 3.4.5 Other comprehensive income transferred to retained earnings | |||||||||||||||
| 3.4.6 Others | |||||||||||||||
| 3.5 Specific reserve | |||||||||||||||
| 3.5.1 Increase in the period | |||||||||||||||
| 3.5.2 Used in the period | |||||||||||||||
| 3.6 Other | |||||||||||||||
| 4. Balance as at the end of the period | 2,676,408,689.00 | 342,175,389.87 | 132,069,000.00 | 57,504,092.23 | 1,358,670,354.99 | 10,853,403,316.80 | 15,156,092,842.89 | 243,902,857.75 | 15,399,995,700.64 |
8. Statements of Changes in Owners’ Equity of the Company as the Parent
2020
Unit: RMB
| Item | 2020 | |||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: Treasury shares | Other comprehensive income | Specific reserve | Surplus reserves | Retained earnings | Others | Total owners’ equity | |||
| Preference shares | Perpetual bonds | Others | ||||||||||
| 1. Balance as at the end of the prior year | 2,676,408,689.00 | 437,549,701.78 | 132,069,000.00 | 1,358,670,354.99 | 8,417,131,477.05 | 12,757,691,222.82 | ||||||
| Add: Adjustments for changes in accounting policies | 1,761,383.21 | 15,852,448.90 | 17,613,832.11 | |||||||||
| Adjustments for correction of previous errors | ||||||||||||
| Other adjustments | ||||||||||||
| 2. Balance as at the beginning of the year | 2,676,408,689.00 | 437,549,701.78 | 132,069,000.00 | 1,360,431,738.20 | 8,432,983,925.95 | 12,775,305,054.93 | ||||||
| 3. Increase/ decrease in the period (“-” for decrease) | 6,950,000.00 | 26,563,692.92 | -10,473,350.00 | 1,283,625,667.39 | 1,327,612,710.31 | |||||||
| 3.1 Total comprehensive income | 1,820,087,405.19 | 1,820,087,405.19 | ||||||||||
| 3.2 Capital increased and reduced by owners | 6,950,000.00 | 26,563,692.92 | -10,473,350.00 | 43,987,042.92 | ||||||||
| 3.2.1 Ordinary shares increased by owners | 6,950,000.00 | 6,950,000.00 | ||||||||||
| 3.2.2 | ||||||||||||
| Capital increased by holders of other equity instruments | ||||||||||||
| 3.2.3 Share-based payments recognized in owners’ equity | 26,563,692.92 | 32,080,000.00 | -5,516,307.08 | |||||||||
| 3.2.4 Other | -42,553,350.00 | 42,553,350.00 | ||||||||||
| 3.3 Profit distribution | -536,461,737.80 | -536,461,737.80 | ||||||||||
| 3.3.1 Appropriation to surplus reserves | ||||||||||||
| 3.3.2 Appropriation to owners (or shareholders) | -536,461,737.80 | -536,461,737.80 | ||||||||||
| 3.3.3 Other | ||||||||||||
| 3.4 Transfers within owners’ equity | ||||||||||||
| 3.4.1 Increase in capital (or share capital) from capital reserves | ||||||||||||
| 3.4.2 Increase in capital (or share capital) from surplus reserves | ||||||||||||
| 3.4.3 Surplus reserves used to offset loss | ||||||||||||
| 3.4.4 Changes in defined benefit schemes transferred to |
| retained earnings | ||||||||||||
| 3.4.5 Other comprehensive income transferred to retained earnings | ||||||||||||
| 3.4.6 Other | ||||||||||||
| 3.5 Specific reserve | ||||||||||||
| 3.5.1 Increase in the period | ||||||||||||
| 3.5.2 Used in the period | ||||||||||||
| 3.6 Other | ||||||||||||
| 4. Balance as at the end of the period | 2,683,358,689.00 | 464,113,394.70 | 121,595,650.00 | 1,360,431,738.20 | 9,716,609,593.34 | 14,102,917,765.24 |
2019
Unit: RMB
| Item | 2019 | |||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: Treasury shares | Other comprehensive income | Specific reserve | Surplus reserves | Retained earnings | Others | Total owners’ equity | |||
| Preference shares | Perpetual bonds | Others | ||||||||||
| 1. Balance as at the end of the prior year | 2,676,408,689.00 | 353,083,238.00 | 132,069,000.00 | 1,161,193,995.08 | 7,175,125,975.65 | 11,233,742,897.73 | ||||||
| Add: Adjustments for changes in accounting policies | ||||||||||||
| Adjustments for correction of previous errors | ||||||||||||
| Other adjustments | ||||||||||||
| 2. Balance as at | 2,676, | 353,083 | 132,069, | 1,161,1 | 7,175,125 | 11,233,742, | ||||||
| the beginning of the year | 408,689.00 | ,238.00 | 000.00 | 93,995.08 | ,975.65 | 897.73 | ||||||
| 3. Increase/ decrease in the period (“-” for decrease) | 84,466,463.78 | 197,476,359.91 | 1,242,005,501.40 | 1,523,948,325.09 | ||||||||
| 3.1 Total comprehensive income | 1,974,763,599.11 | 1,974,763,599.11 | ||||||||||
| 3.2 Capital increased and reduced by owners | 84,466,463.78 | 84,466,463.78 | ||||||||||
| 3.2.1 Ordinary shares increased by owners | ||||||||||||
| 3.2.2 Capital increased by holders of other equity instruments | ||||||||||||
| 3.2.3 Share-based payments recognized in owners’ equity | 84,466,463.78 | 84,466,463.78 | ||||||||||
| 3.2.4 Other | ||||||||||||
| 3.3 Profit distribution | 197,476,359.91 | -732,758,097.71 | -535,281,737.80 | |||||||||
| 3.3.1 Appropriation to surplus reserves | 197,476,359.91 | -197,476,359.91 | ||||||||||
| 3.3.2 Appropriation to owners (or shareholders) | -535,281,737.80 | -535,281,737.80 | ||||||||||
| 3.3.3 Other | ||||||||||||
| 3.4 Transfers within owners’ equity |
| 3.4.1 Increase in capital (or share capital) from capital reserves | ||||||||||||
| 3.4.2 Increase in capital (or share capital) from surplus reserves | ||||||||||||
| 3.4.3 Surplus reserves used to offset loss | ||||||||||||
| 3.4.4 Changes in defined benefit schemes transferred to retained earnings | ||||||||||||
| 3.4.5 Other comprehensive income transferred to retained earnings | ||||||||||||
| 3.4.6 Other | ||||||||||||
| 3.5 Specific reserve | ||||||||||||
| 3.5.1 Increase in the period | ||||||||||||
| 3.5.2 Used in the period | ||||||||||||
| 3.6 Other | ||||||||||||
| 4. Balance as at the end of the period | 2,676,408,689.00 | 437,549,701.78 | 132,069,000.00 | 1,358,670,354.99 | 8,417,131,477.05 | 12,757,691,222.82 |
III Basic Information of the Company
1. Company Profile
Suzhou Gold Mantis Construction Decoration Co., Ltd. (hereinafter referred to as the“Company”), which was changed from the former Suzhou Gold Mantis Construction DecorationLimited, was established as a foreign-invested company limited by shares with a registered capitalof RMB70 million under the approval of SH.Z.Y.P. [2004] No. 242 and the Approval CertificateSH.W.Z.Z.SH.Z. [2004] No. 0082 of the Ministry of Commerce of the People's Republic of China.The Company went through the industrial and commercial registration at the Administration forIndustry and Commerce of Jiangsu Province in accordance with the law on 30 April 2004. With theapproval granted by the China Securities Regulatory Commission under Document ZH.J.F.X.Z.[2006] No. 100, the Company publicly issued 24 million ordinary shares on 2 November 2006,increasing its registered capital to RMB94 million after the issuance. On 20 November 2006, theCompany's stock was listed on the Shenzhen Stock Exchange under the stock code "002081" andthe stock name "Gold Mantis".In May 2008, the Company implemented a profit distribution plan for 2007, transferring 5 sharesfor every 10 shares of Capital reserves to all shareholders, increasing its registered capital to RMB141million.In April 2009, the Company implemented a profit distribution plan for 2008, transferring 5shares for every 10 shares of Capital reserves to all shareholders, increasing its registered capital toRMB211.5 million.
In November 2009, the Company increased its registered capital by RMB1,296,000 toRMB212,796,000 by exercising the first phase of share options of the first share option incentive planby 18 share option awardees, including Ni Lin, Yang Zhen and Yan Duolin, under the First ShareOption Incentive Plan of Suzhou Gold Mantis Construction Decoration Co., Ltd.
In April 2010, the Company implemented a profit distribution plan for 2009, giving allshareholders 5 shares for every 10 shares of Retained earnings, increasing its registered capital toRMB319,194,000.
In March 2011, the Company implemented a profit distribution plan for 2010, giving allshareholders 5 shares for every 10 shares of Retained earnings, increasing its registered capital toRMB478,791,000.
In June 2011, the Company increased its registered capital by RMB2,612,250 toRMB481,403,250 by exercising the second phase of share options of the first share option incentiveplan by 15 share option awardees, including Ni Lin, Yang Zhen and Yan Duolin, under the FirstShare Option Incentive Plan of Suzhou Gold Mantis Construction Decoration Co., Ltd.
In November 2011, in accordance with the resolutions of the 1st Extraordinary General Meetingand the 2nd Extraordinary General Meeting of 2011, and as approved by the China SecuritiesRegulatory Commission's Approval of the Non-public Offering of Shares of Suzhou Gold MantisConstruction Decoration Co., Ltd. (ZH.J.X.K. [2011] No. 1388), the Company made a non-publicoffering of RMB36,843,800 ordinary shares, increasing its registered capital to RMB518,247,050.
In May 2012, the Company implemented a profit distribution plan for 2011, transferring 5 sharesfor every 10 shares of capital reserves to all shareholders, increasing its registered capital toRMB777,370,575.
In December 2012, the Company increased its registered capital by RMB4,100,378 to
RMB781,470,953 by independently exercising the third phase of share options of the first shareoption incentive plan by 12 share option awardees, including Ni Lin, Yang Zhen and Yan Duolin,under the First Share Option Incentive Plan of Suzhou Gold Mantis Construction Decoration Co.,Ltd.In March 2013, the Company increased its registered capital by RMB1,063,371 toRMB782,534,324 by independently exercising the third phase of share options of the first shareoption incentive plan by 5 share option awardees, including Ni Lin, under the First Share OptionIncentive Plan of Suzhou Gold Mantis Construction Decoration Co., Ltd.
In May 2013, the Company implemented a profit distribution plan for 2012, transferring 5 sharesfor every 10 shares of Capital reserves to all shareholders, increasing its registered capital toRMB1,173,801,486.In September 2013, the Company increased its registered capital by RMB1,002,376 toRMB1,174,803,862 by independently exercising the third phase of share options of the first shareoption incentive plan by 3 share option awardees, including Zhu Xingquan, under the First ShareOption Incentive Plan of Suzhou Gold Mantis Construction Decoration Co., Ltd.
In June 2014, the Company implemented a profit distribution plan for 2013, transferring 5 sharesfor every 10 shares of Capital reserves to all shareholders, whereby increasing the registered capital toRMB1,762,205,793.
In June 2016, the Company implemented a profit distribution plan for 2015, giving allshareholders 5 shares for every 10 shares of Retained earnings, whereby increasing the registeredcapital to RMB2,643,308,689.
In December 2018, in accordance with the Proposal on the Proposal on the Company's 2018Restricted Share Incentive Plan (Draft) and Its Summary reviewed and approved at the 1stExtraordinary General Meeting of the Company in 2018 and the resolution of the 13th ExtraordinaryMeeting of the 5th Board of Directors, restricted shares were granted to 32 restricted share awardees,including Wang Hanlin, Cao Liming and Shi Guoping, increasing its registered capital by RMB33.1million to RMB2,676,408,689.
In January 2020, in accordance with the Proposal on the Company's 2018 Restricted ShareIncentive Plan (Draft) and Its Summary reviewed and approved at the 1st Extraordinary GeneralMeeting of the Company in 2018 and the resolution of the 1st Extraordinary Meeting of the 6th Boardof Directors, restricted shares were granted to 14 restricted share awardees, including Wang Zhenlongand Gao Hongqiang, increasing its registered capital by RMB8 million to RMB2,684,408,689.
In May 2020, in accordance with the resolution of the 2019 Annual General Meeting and theProposal on the Repo and Cancellation of Part of Restricted Shares of the Company which werereviewed and approved at the 5th Meeting of the 6th Board of Directors in 2020, as Yang Peng andXie Jinan, the original awardees, had left the Company, the Company repurchased and canceled 1.05million restricted shares granted to them but not yet unlocked, reducing its registered capital byRMB1.05 million. After the completion of the repurchase and cancellation, its registered capital waschanged to RMB2,683,358,689.
The Domicile of the Company: Within the private industrial zone, Suzhou Industrial Park,Jiangsu Province. Legal representative: Wang Hanlin.
The Company's business scope: architectural engineering procurement construction (EPC);design and construction of interior and exterior decoration projects of various buildings; installationof utilities and electrical equipment for public and civil construction projects; consulting, services,technology development and technology transfer for construction decoration design; furnituremanufacturing. Design and construction of indoor and outdoor artworks for various buildings;design and construction of soft decoration accessories; design and construction of environmentalway-finding systems; design, production, manufacturing, installation and construction of curtainwall projects for various buildings; processing, manufacturing and construction of metal doors andwindows; wooden products production; building stone processing. Manufacturing and installationof mechanical and electrical equipment installation projects; design and construction of urbanlandscaping projects; design and construction of ancient-style landscaping; design and constructionof firefighting facilities projects; civil and public building engineering design; steel-structureengineering and construction; light steel-structure engineering design; urban and road lightingengineering; sales: construction materials; contracting of overseas construction decoration andcurtain wall engineering, as well as domestic projects put out to international tender; contracting ofthe survey, consulting, design and supervision projects of the aforesaid overseas projects; export ofthe equipment and materials required for the aforesaid overseas projects; dispatch of leasedemployees needed to implement the aforesaid overseas projects. (Business activities that requireapproval in accordance with laws shall be subject to approval by relevant authorities.)Date of approval of financial report: The Financial Statement was approved to be reported bythe resolution of the Board of Directors of the Company on 28 April 2021.
2. Scope of the Consolidated Financial Statements
(1) Subsidiaries Included in the Consolidated Financial Statements in the Current Period
| Serial No. | Full name of subsidiary | Abbr. of subsidiary | The Company’s interest (%) | |
| Direct | Indirect | |||
| 1 | Suzhou Meiruide Construction Decoration Co., Ltd. | Meiruide | 100.00 | — |
| 2 | Suzhou Meiruide Construction Materials Co., Ltd. | Meiruide Materials | — | 100.00 |
| 3 | Suzhou Industrial Park Gold Mantis Furniture Design and Manufacturing Co., Ltd. | Suzhou Furniture | 100.00 | — |
| 4 | Suzhou Gold Mantis Curtain Wall Co., Ltd. | Gold Mantis Curtain Wall | 100.00 | — |
| 5 | Qidong Gold Mantis Curtain Wall Co., Ltd. | Qidong Curtain Wall | — | 100.00 |
| 6 | Suzhou Gold Mantis Landscape Co., Ltd. | Gold Mantis Landscape | 100.00 | — |
| 7 | Jiangsu Gold Mantis Horticultural Co., Ltd. | Gold Mantis Horticultural | — | 100.00 |
| 8 | Datong Gold Mantis Landscape Co., Ltd. | Datong Gold Mantis | — | 100.00 |
| 9 | Jining Economic Development Zone Gold | Jining Gold Mantis | — | 100.00 |
| Mantis Landscape Engineering Co., Ltd. | ||||
| 10 | Suzhou Gold Mantis Construction Investment Co., Ltd. | Construction Investment | 100.00 | — |
| 11 | Liaoning Gold Mantis Construction Decoration Co., Ltd. | Liaoning Gold Mantis | 100.00 | — |
| 12 | Singapore Gold Mantis Pte. Ltd. | Singapore Gold Mantis | 100.00 | — |
| 13 | HBA Holdings Pte. Ltd. *1 | HBA | — | 86.62 |
| 14 | Gold Mantis (International) Construction Decoration Limited | Gold Mantis International | 100.00 | — |
| 15 | Russia Gold Mantis Construction Decoration Co., Ltd. | Russia Gold Mantis | — | 100.00 |
| 16 | JTL Fit Out Middle East L.L.C. | JTL Fit Out Middle East | — | 100.00 |
| 17 | Gold Mantis Construction Decoration (CNMI), LLC | Saipan Gold Mantis | — | 100.00 |
| 18 | Gold Mantis Building Decoration (Cambodia) Co., Ltd. | Cambodia Gold Mantis | — | 100.00 |
| 19 | Gold Mantis International Development Pte. Ltd. | International Development | — | 100.00 |
| 20 | Gold Mantis (Vietnam) Construction Company Limited | Gold Mantis (Vietnam) | — | 100.00 |
| 21 | Gold Mantis (HK) Construction Decoration Limited | Gold Mantis (HK) | — | 100.00 |
| 22 | Gold Mantis (Lanka) Construction (Private) Limited | Gold Mantis (Lanka) | — | 100.00 |
| 23 | Gold Mantis Prefabricated Construction Technology (Suzhou) Co., Ltd.*2 | Prefabricated Construction Technology | 70.00 | — |
| 24 | Gold Mantis Home Decoration E-commerce (Suzhou) Co., Ltd.*3 | Home Decoration E-commerce | — | 90.00 |
| 25 | Gold Mantis Refined Decoration & Technology (Suzhou) Co., Ltd. | Refined Decoration & Technology | — | 100.00 |
| 26 | Gold Mantis Supply Chain Management (Suzhou) Co., Ltd. | Gold Mantis Supply Chain | — | 100.00 |
| 27 | Suzhou Jijia Materials Co., Ltd. | Jijia Materials | 100.00 | — |
| 28 | Gold Mantis Art Co., Ltd. | Gold Mantis Art | 100.00 | — |
| 29 | Suzhou Jinpu No. 9 Cultural Industrial Development Co., Ltd. | Jinpu No. 9 | 100.00 | — |
| 30 | Xi’an Hi-tech Zone Jinchuang Commercial Operation Management and Development Co., Ltd. | Xi’an Jinchuang | 90.00 | — |
| 31 | Gold Mantis Municipal Engineering Construction (Guizhou) Co., Ltd. | Gold Mantis Municipal | 100.00 | — |
| 32 | Suzhou Industrial Park Jindejin Construction Engineering Co., Ltd. | Jindejin Construction | 100.00 | — |
| 33 | Gold Mantis North China (Beijing) Construction Decoration Engineering Co., Ltd. | Gold Mantis North China | 100.00 | — |
| 34 | Sierra Gold Mantis Joint Venture (Private) Limited | Sierra Gold Mantis | 50.00 | — |
| 35 | GMI Construction Corp. | GMI Construction | — | 100.00 |
| 36 | M+ Design Associates Pte. Ltd. | M+ | — | 63.00 |
| 37 | Gold Mantis East China Construction Decoration Co., Ltd. | Gold Mantis East China | 100.00 | — |
| 38 | Suzhou Huali Jinshi Construction Decoration Co., Ltd. | Huali Jinshi | 60.00 | — |
| 39 | Shuicheng Ruitong Construction and Development Co., Ltd. | Shuicheng Ruitong | 90.00 | — |
| 40 | Archi-Feeling Design (SuZhou) Co., Ltd. | Archi-Feeling | 70.00 | — |
| 41 | GMI International Inc. | GMI Construction Decoration | — | 100.00 |
| 42 | Jining Gold Mantis Construction Engineering Co., Ltd. | Jining Gold Mantis Engineering | — | 100.00 |
| 43 | Hangzhou Gold Mantis Landscape Co., Ltd. | Hangzhou Gold Mantis | — | 100.00 |
Note*1：HBA incorporated 24 subsidiaries.*2：Gold Mantis Prefabricated Construction Technology (Suzhou) Co., Ltd. is formerly knownas “Gold Mantis E-commerce Co., Ltd.”.*3：Home Decoration E-commerce incorporated 44 “Gold Mantis Home” subsidiaries.For further information about the subsidiaries above, please refer to Note VII “Interests inOther Entities”. Those in which the Company held direct stakes were subsidiaries of the Company,while the others were sub-subsidiaries of the Company.
(2) Changes in the Scope of the Consolidated Financial Statements of the Current Period
① Newly Added Subsidiaries in the Current Period
| Serial No. | Full name of subsidiary | Abbr. of subsidiary | Reason for inclusion in the consolidation scope of the current period |
| 1 | Jining Gold Mantis Construction Engineering Co., Ltd. | Jining Gold Mantis Engineering | Newly incorproated |
| 2 | Hangzhou Gold Mantis Landscape Co., Ltd. | Hangzhou Gold Mantis | Newly incorproated |
② Excluded Subsidiaries in the Current Period
| Serial No. | Full name of subsidiary | Abbr. of subsidiary | Reason for exclusion from the consolidation scope of the current period |
| 1 | “Gold Mantis Home” companies | * | Transferred or de-registered |
| 2 | Suzhou Miaoyu Construction Materials Co., Ltd. | Miaoyu Construction | De-registered |
Note*: Home Decoration E-commerce transferred or de-registered 51 “Gold Mantis Home”subsidiaries in the current period.For further information about the newly added and excluded subsidiaries, please refer to NoteVI “Changes in the Scope of the Consolidated Financial Statements”.
IV Basis of Preparation for the Financial Statements
1. Basis of Preparation
Based on the transactions and events that have actually occurred and the recognition andmeasurement in accordance with the provisions of China’s Accounting Standards for BusinessEnterprises (CAS) and its application guidance and interpretations of the standards, the Companyprepared the financial statement on the going concern basis. In addition, the Company alsodisclosed relevant financial information in accordance with the Rules No. 15 Governing thePreparation of Information Disclosure by Companies Publicly Offering Securities - GeneralProvisions of Financial Reports (Revision 2014) of the China Securities Regulatory Commission.
2. Going Concern
The Company has assessed its ability to continue as a going concern for the 12 months fromthe end of the Reporting Period and no matters affecting the ability have been identified. Thus, itwas reasonable of the Company to prepare its financial statements on a going concern basis.V. Significant Accounting Policies and Accounting EstimationSpecific accounting policies and accounting estimation hint:
The following significant accounting policies and accounting estimation of the Company havebeen formulated in accordance with the Accounting Standards for Business Enterprises. Operationsnot mentioned were carried out in accordance with the relevant accounting policies in the CAS.
1. Statement of Compliance with the CAS
The financial statements prepared by the Company complied with the requirements of the CASand gave a true and complete view of the financial status, operational results, changes in owners'equity, cash flows and other relevant information.
2. Accounting Period
The Company has adopted the Gregorian calendar year, which means from 1 January to 31December as its accounting year.
3. Operating Cycle
The normal operating cycle of the Company was one year.
4. Functional Currency
The Company's functional currency was RMB, and the functional currency for accounting ofthe overseas (branch) subsidiaries was the currency of the country or region in which they arelocated.
5. The Accounting Methods of Business Combinations Involving Entities under Common Control andBusiness Combinations Not Involving Entities under Common Control
(1) Business Combinations Involving Entities under Common Control
Assets and liabilities acquired by the Company in a business combination were measured at thecarrying value of the acquiree in the consolidated financial statements of the ultimate controllingparty at the date of combination. In particular, if the accounting policies adopted by the party beingconsolidated and the Company prior to the business combination were different, the accountingpolicies were unified based on the principle of materiality, i.e. the carrying value of the assets andliabilities of the acquiree shall be adjusted in accordance with the Company's accounting policies. Ifthere was a difference between the carrying value of the net assets acquired by the Company in abusiness combination and the carrying value of the consideration paid, the Capital reserves (Capitalpremium or Share capital premium) was first adjusted. If the balance of the Capital reserves(Capital premium or share capital premium) is not sufficient for elimination, the Surplus reservesand Retained earnings were eliminated in turn.
For the accounting methods of business combinations under common control through steptransactions, please refer to: Section XII. V. (6).
(2) Business Combinations Not Involving Entities under Common Control
Each of the Company's identifiable assets and liabilities of the acquiree acquired in a business
combination was measured at the fair value at the date of acquisition. In particular, if the accountingpolicies adopted by the acquiree and the Company prior to the business combination were different,the accounting policies were unified based on the principle of materiality, i.e. the carrying value ofthe acquiree's assets and liabilities shall be adjusted in accordance with the Company's accountingpolicies. The difference between the cost of consolidation at the date of acquisition and the fairvalue of the acquiree's identifiable assets and liabilities acquired in a business combination wasrecognized as Goodwill. If the cost of consolidation was less than the fair value of the acquiree'sidentifiable assets and liabilities acquired in a business combination, the cost of consolidation andthe fair value of the acquiree's identifiable assets and liabilities acquired in a business combinationshall be first reviewed. If, after the review, the cost of consolidation was still less than the fair valueof the acquiree's identifiable assets and liabilities, the difference would be recognized as profit orloss of current period.
For the accounting methods of business combinations under common control through steptransactions, please refer to: Section XII. V. (6).
(3) Treatment of Relevant Transaction Expenses in Business Combinations
Intermediary fees such as audit, legal services, evaluation and consulting and other relatedadministrative expenses incurred in connection with a business combination were included in theprofit or loss of current period. Transaction expenses for equity securities or debt securities ofconsideration issuance for a combination were included in the initial recognition amount of theequity securities or debt securities.
6. Preparation Methods for Consolidated Financial Statements
(1) Determination of Consolidation Scope
The consolidation scope in the consolidated financial statements was determined on a controlbasis and includes not only subsidiaries determined on the basis of voting rights (or similar votingrights) or in combination with other arrangements, but also structured entities determined on thebasis of one or more contractual arrangements.
Control means that the Company has power over the investee, enjoys variable returns throughits involvement in the investee's related activities and has the ability to use the power to influencethe amount of returns. Subsidiaries are entities that are controlled by the Company (includingenterprises, divisible parts of investees, and structured entities controlled by enterprises, etc.).Structured entities are the entities that are not designed to have voting or similar rights as a decisivefactor in determining their controlling party (note: sometimes referred to as special purposeentities).
(2) Special Provisions Regarding the Company as the Parent Being an Investment Entity
If the Company as the parent was an investment entity, only the subsidiaries that provideservices related to the investment activities of the investment entity were included in theconsolidated scope and other subsidiaries are not consolidated. Equity investors in subsidiaries that
were not included in the consolidation scope were recognized as financial assets measured at fairvalue through profit or loss for the current period.The Company as the parent was an investment entity when it satisfied all the followingconditions:
① The Company aimed to provide investment management services to investors and obtainfunds from one or more investors.
② The Company's sole business purpose was to provide a return for investors through capitalappreciation, return on investment or both.
③ The Company considered and evaluated the performance of almost all investments at fairvalue.
When the Company as the parent was transformed from a non-investment entity to aninvestment entity, the enterprise ceased to consolidate its other subsidiaries from the date oftransformation, except to include only the subsidiaries providing services related to its investmentactivities in the scope of the consolidated financial statements for the purpose of preparing theconsolidated financial statements, and treated the other subsidiaries with reference to the principleof partial disposal of equity interests in subsidiaries without loss of control.
When the Company as the parent was transformed from an investment entity to anon-investment entity, the subsidiaries that were not included in the scope of the consolidatedfinancial statements shall be included at the date of transformation, and the fair value of suchsubsidiaries at the date of transformation shall be recognized as the transaction consideration for theacquisition in accordance with the accounting methods for business combinations not involvingentities under common control.
(3) Preparation Methods for Consolidated Financial Statements
The Company prepared consolidated financial statements on the basis of its own financialstatements and those of its subsidiaries and in line with other relevant information.
The Company prepared consolidated financial statements by considering the entire enterprisegroup as one accounting entity, reflecting the overall financial status, operational results and cashflows in accordance with the recognition, measurement and presentation requirements of relevantaccounting standards for enterprises and the unified accounting policies.
① The assets, liabilities, owners' equity, income, expenses and cash flows of the Company asthe parent with those of its subsidiaries were consolidated.
② The Company as the parent's long-term equity investments in the subsidiaries were offsetagainst the Company as the parent's shares in the subsidiaries' owners' equity.
③ The impact of internal transactions between the Company as the parent and its subsidiaries,as well as between subsidiaries and each other, was offset. If an internal transaction indicated animpairment loss on a related asset, the portion of the loss was recognized in full.
④ The special transactions were adjusted from the perspective of the enterprise group.
(4) Treatment of Additions and Deletions of Subsidiaries within the Reporting Period
① Addition of subsidiaries or businesses
A. Increase in subsidiaries or businesses in a business combination involving entities undercommon control
(a) When preparing the consolidated balance sheet, the Company adjusted the opening amountof the consolidated balance sheet, together with the relevant items in the comparative statements, asif the consolidated reporting entity had been in existence from the point at which control by theultimate controlling party commenced.
(b) When preparing the consolidated profit statement, the subsidiaries and the revenues,expenses and profits of the business combination from the beginning of the business combinationsto the end of the Reporting Period were included in the consolidated profit statement, withadjustments to the relevant items in the comparative statements, as if the consolidated reportingentity had been in existence from the point at which control by the ultimate controlling partycommenced.
(c) When preparing the consolidated cash flow statement, the subsidiaries and the cash flowsfrom the beginning of the business combination to the end of the Reporting Period were included inthe consolidated cash flow statement, with adjustments to the relevant items in the comparativestatements, as if the consolidated reporting entity had been in existence from the point at whichcontrol by the ultimate controlling party commenced.
B. Increase in subsidiaries or businesses in a business combination not involving entities undercommon control
(a) When preparing the consolidated balance sheet, no adjustment was made to the openingamount.
(b) When preparing the consolidated profit statement, the subsidiaries and the income,expenses and profits of the business from the date of acquisition to the end of the Reporting Periodwere included.
(c) When preparing the consolidated statement of cash flows, the cash flows of the subsidiariesfrom the date of acquisition to the end of the Reporting Period were included.
② Disposal of subsidiaries or businesses
A. When preparing the consolidated balance sheet, no adjustment was made to the openingamount.
B. When preparing the consolidated profit statement, the subsidiaries and the income, expensesand profits of the business from the beginning of the period to the date of disposal were included.
C. When preparing the consolidated cash flow statement, the subsidiary and the cash flows ofthe business from the beginning of the period to the date of disposal were included.
(5) Special Considerations in Consolidation Offsets
① Long-term equity investments of the Company held by subsidiaries were treated as treasuryshares of the Company and shown as a deduction of owners' equity, and it was shown as"Deduction: Treasury shares" in the consolidated balance sheet under the heading of owners’equity.
Long-term equity investments held by subsidiaries against each other were offset against theCompany's shares of the subsidiaries' owners' equity, as compared with the Company's equityinvestment in the subsidiaries.
② "Specific reserve" and "General reserve" items were not part of paid-up capital (or sharecapital) and capital reserves or retained earnings, and were also different from retained earnings.They were restored to the owner's shares of the Company as the parent after offsetting long-termequity investments against the subsidiaries' owners' equity.
③ If a temporary difference arose between the carrying value of assets and liabilities in theconsolidated balance sheet and their tax bases in the taxable entity to which they belong as a resultof offsetting unrealized internal sales profit or loss, the deferred income tax assets or deferredincome tax liabilities were recognized in the consolidated balance sheet, while adjusting the incometax expense, except for the transactions or events directly included in owners' equity and thedeferred income tax relating to business combinations.
④ Unrealized profit or loss on internal transactions of the Company arising from the sale ofassets to subsidiaries were fully offset against the "net profit attributable to the Company as theparent owner". Unrealized profit or loss on internal transactions arising from the sale of assets by asubsidiary to the Company were offset by allocating between "Net profit attributable to theCompany as the parent owner" and "Net profit attributable to non-controlling interests" inproportion to the Company's allocation to that subsidiary. Unrealized profit or loss on internaltransactions arising from the sale of assets between subsidiaries were offset by allocating between"Net profit attributable to the Company as the parent owner" and "Net profit attributable tonon-controlling interests" in proportion to the Company's allocation to the selling subsidiary.
⑤ If the minority of shareholders' shares of the current loss of a subsidiary exceeded theminority of shareholders' shares of owners' equity at the beginning of the period of the subsidiary,the balance was still eliminated by non-controlling interests.
(6) Accounting of Special Transactions
① Acquisition of the equity of minority shareholders
If the Company acquired the equity of a subsidiary owned by the minority shareholders of thesubsidiary, in individual financial statements, the investment costs of the long-term equityinvestments newly obtained from the acquisition of minority equity were measured at the fair valueof considerations paid for the acquisition. In the consolidated financial statements, for the differencebetween the long-term equity investments newly obtained from the acquisition of minority equityand the portion of net assets in the subsidiary calculated from the date of acquisition or the date ofcombination on an ongoing basis at the ratio of new shares held, the capital reserves (capital orshare capital premiums) were adjusted, and if the capital reserves were insufficient for offset,surplus reserves and retained earnings were offset in turn.
② Obtaining of control of a subsidiary in stages through multiple transactions
A. Business combinations involving entities under common control achieved in stages throughmultiple transactions
If the deals fell into a "Package Deal", the Company processed such transactions as one
transaction of obtaining control of the subsidiary. In the individual financial statements, in eachtransaction prior to the date of combination, all equity investments were recognized as long-termequity investments and their initial investment cost was recognized according to the share of thecarrying value of the net assets of the combined party in the consolidated financial statements of theultimate controlling party calculated at the shareholding ratio. For the difference between the initialcosts of long-term equity investments and the carrying value of considerations paid, capital reserves(capital or share capital premiums) were adjusted, and if the capital reserves (capital or share capitalpremiums) were insufficient for offset, surplus reserves and retained earnings were offset in turn. Inthe subsequent measurement, long-term equity investments were accounted for under the costmethod without involving the preparation of the consolidated financial statements. On thecombination date, the Company recognized the initial cost of long-term equity investmentsaccording to its share of the carrying value of the net assets of the combined party in theconsolidated financial statements of the ultimate controlling party calculated at the accumulativeshareholding ratio. For the difference between the initial investment costs and the sum of thecarrying value of the long-term equity investments before the combination and the carrying value ofthe new payment consideration of shares further acquired on the combination date, capital reserves(capital or share capital premiums) were adjusted, and if the capital reserves (capital or share capitalpremiums) were insufficient for offset, surplus reserves and retained earnings were offset in turn.Meanwhile, the Company prepared a consolidated financial statement on the combination date andmade adjustments in the consolidated financial statement with all parties participating in thecombination deemed to have been existing since the time point when the ultimate controlling partybegan the control.
If the clauses, conditions, and economic impact of various transactions fell under one or moreof the following circumstances, the multiple transactions were generally regarded as a "PackageDeal".(a) These transactions are reached concurrently or after the impact thereof on each other istaken into consideration.(b) These transactions may achieve a complete business result only as a whole.(c) The occurrence of a transaction depends on the occurrence of, at a minimum, one anothertransaction.
(d) A transaction is considered uneconomical separately but is considered economical whenother transactions are also taken into consideration.
If the deals did not fall into a "Package Deal", in each transaction prior to the combination date,all transactions of the Company were recognized as financial assets (financial assets at fair valuethrough profit and loss for the current period or available-for-sale financial assets) or long-termequity investments accounted for under the equity method according to the fair value of theconsideration paid. On the combination date, in the individual financial statements, the Companyrecognized the initial investment cost of long-term equity investments according to its share of thecarrying value of net assets of the subsidiary that were attributable to the Company after thecombination. For the difference between the initial investment cost of long-term equity investmentson the combination date and the sum of the carrying value of the long-term equity investmentsbefore the combination and the carrying value of the new payment consideration of shares further
acquired on the combination date, the capital reserves (capital or share capital premiums) wereadjusted, and if the capital reserves were insufficient for offset, surplus reserves and retainedearnings were offset in turn.In the consolidated financial statements, the Company made adjustments based on deemingthat all parties participating in the combination have been existing since the time point when theultimate controlling party began the control. When preparing the consolidated financial statements,the Company consolidated the relevant assets and liabilities of the combined party into thecomparative statements of the consolidated financial statements of the combining party no earlierthan the time point when the combining party and the combined party were under the control of theultimate controlling party, and adjusted the relevant items under owners' equity in the comparativestatements according to the increased net assets arising from the combination. If the retainedearnings recorded by the combined party before the combination that were attributable to thecombining party were not fully recovered in the consolidated financial statements because thebalance of the capital reserves (capital or share capital premiums) of the combining party wasinsufficient, the Company explained such cases in the notes to the financial statements, includingretained earnings recorded by the combined party before the combination, the amount attributable tothe Company, and retained earnings not transferred to the consolidated balance sheets due to theinsufficient balance of the capital reserves.For the equity investment that was held by the combining party before obtaining the control ofthe combined party and accounted for under the equity method, the changes, from the date when theoriginal equity was acquired or the date when the combining party and the combined party wereultimately controlled by the same party, whichever was later, to the combination date, in relevantprofits and losses, other comprehensive income, and other owners' equity to have been recognizedand were offset respectively against the opening retained earnings during the Reporting Period.B. Business combinations not involving entities under common control achieved in stagesthrough multiple transactionsIf the deals fell into a "Package Deal", the Company processed such transactions as onetransaction of obtaining control of the subsidiary. In the individual financial statements, in eachtransaction prior to the date of combinations, all equity investments were recognized as long-termequity investments and their initial investment costs were recognized according to the fair value ofconsiderations paid. In the subsequent measurement, long-term equity investments were accountedfor under the cost method without involving the preparation of the consolidated financial statements.On the combination date, in the individual financial statements, the sum of the carrying value oflong-term equity investments originally held and the newly added investment cost (fair value of thenew payment consideration of shares further acquired) was regarded as the initial investment cost oflong-term equity investments on the combination date. In the consolidated financial statements, theinitial investment cost was offset against the Company's share of the fair value of the identifiablenet assets in the subsidiary, and the difference was recognized as goodwill or included in theconsolidated profit and loss of the current period.
If the deals do not fall into a "Package Deal", in each transaction prior to the combination date,all transactions of the investor were recognized as financial assets (financial assets at fair valuethrough profit and loss for the current period or available-for-sale financial assets) or long-term
equity investments accounted for under the equity method according to the fair value of theconsideration paid. On the combination date, in the individual financial statements, the sum of thecarrying value of long-term equity investments (financial assets or long-term equity investmentsaccounted for under the equity method) originally held and the newly added investment cost wasregarded as the initial cost of long-term equity investments accounted for under the cost method. Inthe consolidated financial statements, the equities of the acquiree held before the acquisition dateare re-measured at the fair value of the equities on the acquisition date, and the difference betweenthe fair value and the carrying value was included in the return on investment of the current period;and if the equities of the acquiree held by the enterprise before the date of acquisition involvedother comprehensive income under accounting by the equity method, other comprehensive incomerelated to such equity shall be included in the current income on the date of acquisition, excludingthe other comprehensive income arising from changes in the net assets or net liabilities caused byre-measurement of the defined benefit pension plan of the combined party. The Company disclosedin the notes the fair value on the date of acquisition of the equities of the acquiree held by it beforethe date of acquisition and the amounts of relevant gains or losses after re-measurement to the fairvalue.
③ The Company disposed of the long-term equity investments made in a subsidiary withoutlosing control over the subsidiaryIf the Company as the parent disposes of part of the long-term equity investments made in asubsidiary without losing control over the subsidiary, in the consolidated financial statements, forthe difference between the payment for equity disposed of and the Company as the parent's portionof net assets in the subsidiary calculated from the date of acquisition or the date of combination onan on-going basis corresponding to the long-term equity investments disposed of, the capitalreserves (capital or share capital premiums) were adjusted, and if the capital reserves wereinsufficient for offset, the retained earnings were adjusted.
④ The Company lost control over the subsidiary for the disposal of long-term equityinvestments
A. Disposal through one transaction
If the Company lost control over the investee for the disposal of part of equity investments orany other reason, when it prepared consolidated financial statements, the residual equity wasre-measured at the fair value on the date when it lost control of the investee. The sum of theconsideration obtained from the disposition of equity and the fair value of the residual equity minusthe Company's portion of net assets in the former subsidiary calculated from the date of acquisitionor the date of combination on an ongoing basis at the original shareholding ratio was included in thereturn on investment of the current period when the Company lost the control, and was offsetagainst the goodwill (Note: If the former enterprise was combined not under common control andthere was goodwill). Other comprehensive income, among others, related to the equity investmentsin the former subsidiary was included in the return on investment of the current period when theCompany lost the control.
In addition, other comprehensive income and changes in other owners' equity related to theequity investments in the former subsidiary were included in the profit and loss of the current period,excluding the other comprehensive income arising from the changes in net liabilities or net assets
due to re-measurement of the defined benefit pension plan of the investee.B. Disposal in stages through multiple transactionsIn the consolidated financial statements, a judgment of whether transactions in stages fell intoa "Package Deal" shall be made first.
If transactions in stages did not fall into a "Package Deal", all transactions before the Companylost over a subsidiary shall be treated in accordance with the relevant provisions in "the Company asthe parent disposes of the long-term equity investments made in a subsidiary without losing controlover the subsidiary".If transactions in stages fall into a "Package Deal", each transaction shall be treated as atransaction that resulted in the loss of control of the subsidiary in accounting processing.Specifically, the difference between each disposal price before the loss of control and the parentcompany's share of the subsidiary's net assets corresponding to the disposal investment shall berecognized as other comprehensive income in the consolidated financial statements and, after losingthe control, transferred to the profit and loss of the current reporting period.
⑤ The equity ratio of the Company as the parent was diluted due to capital increase byminority shareholders of a subsidiary
If the equity ratio of the Company as the parent in a subsidiary was diluted since othershareholders (minority shareholders) of the subsidiary increased their capital contribution. In theconsolidated financial statements, the Company's share of the carrying amount of the net assets ofthe former subsidiary was calculated according to the equity ratio of the Company as the parentbefore the capital increased. For the difference between the share and the Company as the parent'sshare of the carrying amount of the net assets of the subsidiary calculated at the shareholding ratio,capital reserves (capital or share capital premiums) were adjusted, and if the capital reserves (capitalor share capital premiums) were insufficient for offset, the retained earnings were adjusted.
7. Classification of Joint Operation Arrangements and Accounting Methods for Joint Operations
A joint arrangement is an arrangement over which two or more parties have joint control. TheCompany's joint arrangements were divided into joint operations and joint ventures.
(1) Joint Operations
A joint operation is a joint arrangement whereby the Company has rights to the assets, andobligations for the liabilities, relating to the arrangement.
The Company recognized the following items in relation to its interest in a joint operation, andaccounted for them in accordance with relevant accounting standards:
① Its solely held assets, and its share of any assets were incurred jointly;
② Its solely assumed liabilities, and its share of any liabilities incurred jointly;
③ Its revenue from the sale of its share of the output arising from the joint operation;
④ Its share of the revenue from the sale of the output by the joint operation;
⑤ Its solely incurred expenses, and its share of any expenses incurred jointly.
(2) Joint Ventures
A joint venture is a joint arrangement whereby the Company only has rights to the net assets ofthe arrangement.
The Company adopted the equity method under long-term equity investments in accounting forits investments in joint ventures.
8. Recognition Criteria of Cash and Cash Equivalents
Cash refers to the cash on hand and other deposits of the Company that can be used forpayment at any time. Cash equivalents refer to short-term (generally referring to maturities of threemonths or less from the acquisition date) investments with high liquidity held which can be easilyconverted to cash in a known amount with small risks of value changes.
9. Translation of Transactions and Financial Statements Denominated in Foreign Currencies
(1) Method of Determining the Exchange Rate for Translation in Foreign CurrencyTransactions
At initial recognition, foreign currency transactions of the Company were translated into thestandard currency for accounting using the spot exchange rate or the rate that approximated the spotexchange rate on the dates of the transactions.
(2) Methods of Translation of Monetary Items Denominated in Foreign Currencies onthe Balance Sheet Date
On the balance sheet date, the foreign currency monetary items were translated at the spotexchange rate on that date. Exchange difference resulting from the difference between the spotexchange rate on the balance sheet date and that at the initial recognition or on the previous balancesheet date was recognized as the profit and loss of the current period.
(3) Methods of Translation of Foreign Currency Financial Statements
Before translating its financial statements about the overseas businesses, the Company adjustedaccounting periods and policies for overseas businesses to be in line with its accounting periods andpolicies, then prepared the financial statements in corresponding currencies (other than the standardcurrency for accounting) according to the adjusted accounting periods and policies, and translatedthe financial statements about the overseas businesses according to the following methods:
① The assets and liabilities in the balance sheet shall be translated at the spot exchange rateon the balance sheet date. Except "retained earnings", all the other owners' equity items wereconverted at the spot exchange rate at the time of occurrence.
② Items under income and expenses in the income statement were translated at the spotexchange rate or the rate that approximates the spot exchange rate on the date of the transaction.
③ The differences arising from the translation of foreign currency-denominated financialstatements were presented separately as "Other comprehensive income" under owners' Equity in theconsolidated balance sheet when preparing consolidated financial statements.
④ Foreign currency cash flows and overseas subsidiaries' cash flows were translated at thespot exchange rate or the rate that approximated the spot exchange rate on the date of cash flows.The effect of a change in the exchange rate on cash was, as an adjustment item, separately presentedin the cash flow statement.
10. Financial Instruments
Financial instruments refer to contracts that form the financial assets of a party and formfinancial liabilities or equity instruments of other parties.
(1) Recognition and Derecognition of Financial Instruments
When the Company became a party to a financial instrument contract, it recognized relevantfinancial assets or financial liabilities.
If a financial asset met any of the following conditions, it shall be stopped from recognition:
① The contractual right to obtain cash flows from the financial asset is terminated;
② The said financial asset is transferred and it meets the following derecognition conditionsfor the transfer of financial assets.
If current obligations of the financial liability (or part of the liability) have been released, theCompany shall derecognize the financial liability (or the part of the liability). If the Company (theborrower) and a lender signed an agreement to replace the existing financial liability by way ofassumption of a new financial liability with the terms of the new financial liability substantiallydifferent from those of the existing financial liability, it derecognized the existing financial liabilitywhile recognizing the new financial liability. If the Company made material changes to the contractterms of the existing financial liability in whole (or in part), the existing financial liability shall bederecognized, and the financial liability after changes of terms shall be recognized as a newfinancial liability.
All regular acquisition or sales of financial assets were recognized and derecognized on atrading day basis. Regular acquisition or sales of financial assets means delivering financial assetswithin the time limit of laws, regulations and usual market practices and in line with contract terms.The trading day refers to the date when the Company promises to acquire or sell financial assets.
(2) Classification and Measurement of Financial Assets
At initial recognition, according to the business model of managing financial assets and thecontractual cash flow characteristics of financial assets, the Company classified financial assets intothe following categories: financial assets measured at the amortized cost, financial assets measuredat fair value through profit and loss for the current period, and financial assets measured at fair
value through other comprehensive income of the current period. In this case, unless the Companychanged its business model of managing financial assets, all relevant financial assets that wereaffected shall be subject to re-classification on the first day during the first Reporting Period, andshall not be re-classified after the initial recognition.Financial assets were measured at fair value upon initial recognition. For financial assetsmeasured at fair value through profit and loss for the current period, transaction costs were directlyincluded in profit and loss of the current period. For other types of financial assets, relatedtransaction costs were included in their initial recognized amounts. The Company conducted theinitial measurement of the accounts receivable and notes receivable arising from selling products orproviding labor services without or not considering major financing components according to thetransaction prices defined by the revenue standards.The subsequent measurement of financial assets depended on their categories:
① Assets measured at amortized cost
Financial assets that meet all the following conditions shall be classified as financial assetsmeasured at amortized cost: The Company's business model of managing the financial assets aimsat obtaining contractual cash flows; and, as stipulated by contract clauses of the financial assets, thecash flows generated on a specific date are merely for the payment of principal or interest from theunpaid principal. Such financial assets were subsequently measured at amortized costs using theeffective interest method. Gain or loss arising from derecognition, amortization using the effectiveinterest method or impairment was included in profit and loss of the current period.
② Financial assets at fair value through other comprehensive income
Financial assets that met all the following conditions shall be classified as financial assetsmeasured at fair value through other comprehensive income: The Company's business model ofmanaging the financial assets aims at obtaining contractual cash flows as well as selling financialassets; and, as stipulated by contract clauses of the financial assets, the cash flows generated on aspecific date are merely for the payment of principal or interest from the unpaid principal. Suchfinancial assets shall be subsequently measured at fair value. Except for impairment losses or gainsand exchange gains and losses that were recognized as profit and loss of the current period, changesin the fair value of such financial assets shall be recognized as other comprehensive income, untilthe financial assets were derecognized when accumulative gains or losses shall be transferred toprofit and loss of the current period. The interest income of the financial asset calculated by theeffective interest method shall be recognized as the profit and loss of the current period.
For financial assets measured at fair value through other comprehensive income that wereirrevocably chosen and designated by the Company from some non-trading equity instruments, therelevant dividend income shall be included in profit and loss of the current period and changes inthe fair value shall be recognized as other comprehensive income, until the financial assets werederecognized when accumulative gains or losses shall be transferred to retained earnings.
③ Financial assets measured at fair value through profit and loss for the current period
The above financial assets measured at amortized cost and financial assets other than thosemeasured at fair value through other comprehensive income were classified as financial assets atfair value through profit and loss for the current period. Such financial assets shall be measured at
fair value, and all changes in fair value were recognized as the profit and loss of the current period.
(3) Classification and Measurement of Financial Liabilities
The Company classified financial liabilities into financial liabilities measured at fair valuethrough profit and loss for the current period, loan commitments at an interest rate that was lowerthan the market interest rate and financial guarantee contract liabilities, and financial liabilitiesmeasured at amortized cost.
The subsequent measurement of financial liabilities depended on their categories:
① Financial liabilities measured at fair value through profit and loss for the current period
Such financial liabilities included held-for-trading financial liabilities (including derivativesthat are financial liabilities) and financial liabilities designated as financial liabilities measured atfair value through profit and loss for the current period. After initial recognition, for the subsequentmeasurement of such financial liabilities at fair value, except for those related to hedge accounting,gain or loss arising (including interest expense) shall be included in profit and loss of the currentperiod. However, for financial liabilities measured at fair value through profit and loss for thecurrent period designated by the Company, the changes in the fair value of such financial liabilitiesresulting from the changes in their own credit risks shall be included in other comprehensiveincome, and when such liabilities were derecognized, accumulative gains and losses that werepreviously included in other comprehensive income shall be transferred out of other comprehensiveincome and included in retained earnings.
② Loan commitments and financial guarantee contract liabilities
A loan commitment is a commitment offered by the Company to customers to grant loans tothe customers according to the established contract clauses within the commitment period.Provisions shall be set aside for loan commitments according to the expected credit loss model.
Financial guarantee contracts refer to contracts that require the Company to pay a specificamount to the contract holder who has suffered losses when a specific debtor fails to pay inaccordance with the initial or revised terms of the debt instrument. The subsequent measurement offinancial guarantee contract liabilities shall be conducted based on the amount of loan loss provisiondetermined following the impairment principle for financial instruments and the initial recognitionamount after deducting the accumulated amortization amount determined according to the revenuerecognition principle, whichever is higher.
③ Financial liabilities measured at amortized cost
After initial recognition, other financial liabilities shall be measured at amortized cost underthe effective interest method.
Except for special situations, financial liabilities and equity instruments were differentiatedbased on the following principles:
① If the Company fails to unconditionally avoid fulfilling a contractual obligation through thedelivery of cash or other financial assets, the obligation fits the definition of financial liabilities.Although some financial instruments do not explicitly include terms and conditions that require anyobligation of cash or other financial asset, other terms and conditions may be indirectly recognizedas contractual obligations.
② If a financial instrument shall or may be settled with the Company's equity instruments, itshall be considered that whether the equity instrument used to settle is recognized as a substitute forcash or other financial assets or as an approach to enable the instrument holder to enjoy theremaining equity of the assets after the issuer deducts all liabilities. If the instrument is a substitute,it is a financial liability of the issuer; if the instrument is for the benefit of its holder, it is an equityinstrument for the issuer. In some cases, the Company shall or may settle the financial instrumentwith its equity instruments according to the financial instrument contract and the amount ofcontractual obligations or contractual duties equals what the number of equity instruments that areacquirable or need to be delivered multiplies the fair value of the settlement. On top of that, nomatter the amount of contractual obligations and contractual duties is fixed or adjusts basedpartially or completely on variants aside from the market price of the Company's equity instruments(such as interest rate, the price of a certain good or that of a certain financial instrument), thecontract is classified as financial liabilities.
(4) Financial Derivatives and Embedded Derivatives
Financial derivatives were initially measured at fair value on the date on which the derivativecontract was entered into, and were subsequently remeasured at fair value. Derivatives wererecognized as assets when the fair value was positive and as liabilities when the fair value wasnegative.
The effective portion of the cash flow hedge is included in other comprehensive income and istransferred from other comprehensive income and included in the profit or loss of the current periodas the hedged instrument affected profit or loss. In other cases, gains or losses generated by changesin the fair value were directly included in the profit or loss of the current period.
For hybrid instruments that include embedded derivatives, if the hybrid contract contained ahost that was a financial asset, hybrid instruments fell into regulations applicable to financial assetsclassification. Otherwise, the embedded derivatives were separated from the hybrid instruments andtreated as separate derivatives financial instruments if the hybrid contract was not measured at fairvalue through profit or loss for the current period, their economic characteristics and risks were notclosely related to those of the host contract and the separate instrument with the same terms as theembedded derivatives met the definition of a derivative. If the embedded derivative could not bemeasured at fair value separately on the date it was obtained or subsequent balance sheet dates, thehybrid instruments were designated to be financial assets or financial liabilities at fair value throughprofit or loss for the current period.
(5) Impairment of Financial Instruments
The Company recognized, on the basis of expected credit losses, the loss reserves associatedwith its financial assets at amortized cost, debt investments, contract assets, lease receivables, loancommitments, and financial guarantee contracts which were measured at fair value and included inother comprehensive income.
① Measurement of expected credit loss
Expected credit loss refers to the weighted average of credit loss of financial instrumentsweighted with default risks. Credit loss refers to the difference between all contract cash flowreceivables discounted at the original effective interest rate under the contract and all expected cash
flow receivables, i.e., the present value of all cash shortages. Specifically, acquired or originatedcredit-impaired financial assets of the Company shall be translated at the credit-adjusted effectiveinterest rate.Lifetime expected credit losses refer to those caused by possible defaults during the entireexpected duration of a financial instrument.The expected credit losses in the next 12 months refers to those caused by the default events ofthe financial instrument that may occur within 12 months (or the expected duration if the expectedduration of the financial instrument is less than 12 months) after the balance sheet date, and it is partof the expected credit losses in the entire duration.On each balance sheet date, the Company respectively measured the expected credit losses offinancial instruments in different stages. If the credit risk of a financial instrument has had nosignificant increase since its initial recognition, the instrument shall fall in the first stage, for whichthe Company would measure the loss reserves according to the expected credit losses in the future12 months. If the credit risk of a financial instrument has had a significant increase since its initialrecognition but no credit impairment has occurred, the instrument shall fall in the second stage, forwhich the Company would measure the loss reserves according to the expected credit losses in theentire duration of the instrument. If the credit impairment has occurred since its initial recognition,the financial instrument shall fall in the third stage, for which the Company would measure the lossreserves according to the expected credit losses in the entire duration of the instrument.As for a financial instrument with low credit risks on the balance sheet date, the Companymeasured the loss reserves according to the expected credit losses in the future 12 months, assumingthat its credit risk has had no significant increase since its initial recognition.
For financial instruments with low credit risks in stages 1 and 2, the Company calculated theinterest income at the effective interest rate and on the carrying amount of the instruments withoutdeductions for provisions for asset impairment. For financial instruments in stage 3, interest incomewas calculated at the effective interest rates and on the amortized cost by reducing the provisionsfor asset impairment from the carrying amount.For notes receivables, accounts receivables, financing receivables, contract receivables, andlong-term receivables, whether there was a significant financial component or not, the Companymeasured the loss reserves based on the lifetime expected credit losses.
A. Receivables/Contract assets
Receivables with objective evidence of impairment and those applicable to individualassessment, such as notes receivable, accounts receivable, other receivables, receivables financing,contract assets and long-term receivables, were individually tested for impairment to recognizeexpected credit losses and accrue the individual provisions for asset impairment. For receivableswithout objective evidence of impairment, such as notes receivable, accounts receivable, otherreceivables, receivables financing, contract assets and long-term receivables, or when an individualfinancial asset could not assess expected credit losses at a reasonable cost, the Company classifiednotes receivable, accounts receivable, other receivables, receivables financing, contract assets andlong-term receivables into several groups based on credit risk features, and expected credit losseswere calculated based on the groups. The grounds for the determination of groups were presented as
follows:
(a) Notes receivable groups were determined based on the following grounds:
Group 1 of note receivable: Bank acceptanceGroup 2 of note receivable: Trade acceptanceFor notes receivables classified as groups, the Company calculated expected credit lossesthrough exposure to default risks and the expected credit loss rate during the entire duration withhistorical credit losses, current situations and forecast for the future economy as a reference.
(b) Groups of accounts receivable were determined based on the following grounds:
Group 1 of accounts receivable: Related party groupGroup 1 of accounts receivable: Non-related party groupFor accounts receivables classified as groups, the Company calculated expected credit lossesthrough exposure to default risks and the expected credit loss rate during the entire duration, withhistorical credit losses, current situations, and forecast of the future economy as a reference.
(c) Groups of other receivables were determined based on the following grounds:
Group 1 of other receivables: Related party groupGroup 2 of other receivables: Non-related party groupFor other receivables classified as groups, the Company calculated expected credit lossesthrough exposure to default risks and the expected credit loss rate in 12 coming months or the entireduration, with historical credit losses, current situations, and forecast of the future economy as areference.(d) Groups of receivable financing were determined based on the following grounds:
Group 1 of receivable financing: Notes receivableGroup 2 of receivable financing: Accounts receivableFor receivables financing classified as groups, the Company calculated expected credit lossesthrough exposure to default risks and the expected credit loss rate during the entire duration, withhistorical credit losses, current situations, and forecast of the future economy as a reference.(e) Groups of contract assets were determined based on the following grounds:
Group 1 of contract assets: Finished but unsettled assetsGroup 2 of contract assets: Undue guarantee depositsFor contract assets classified as groups, the Company calculated the expected credit lossesthrough exposure to default risks and the expected credit loss rate during the entire duration, withhistorical credit losses, current situations, and estimates for the future economy as a reference.
(f) Groups of long-term receivable were determined based on the following grounds:
Group 1 of long-term receivables: Construction receivablesGroup 2 of long-term receivables: Other receivables
For long-term receivables classified as Group 1, the Company calculated expected credit lossesthrough exposure to default risks and the expected credit loss rate in the entire duration, withhistorical credit losses, current situations, and estimates for the future economy as a reference.
For long-term receivables classified as Group 2, the Company calculated expected credit lossesthrough exposure to default risks and the expected credit loss rate in 12 coming months or the entireduration, with historical credit losses, current situations, and estimates for the future economy as areference.
B. Debt investments and other debt investments
For debt investments and other debt investments, the Company, on the basis of the nature ofinvestment and various types of counter-parties and risk exposures, calculated expected creditlosses through exposure to default risks and the expected credit loss rate in 12 coming months or theentire duration.
② Low credit risks
A financial instrument was considered as one with low credit risks if the following conditionswere met: the financial instrument has low risks of default; the borrower's capability to fulfill thecontractual cash flow obligations in a short term is strong and will not be undermined by negativechanges in long-term economic development and operation environment.
③ A surge in credit risks
By comparing the default rate within the expected duration of a financial instrumentrecognized on the date of balance sheet and the default rate within the expected duration at initialrecognition, the Company determined the relative changes of the default rate within the expectedduration so that whether the credit risks of a financial instrument rocketed since the initialrecognition was assessed.
When doing the assessment, the Company considered reasonable and well-groundedinformation that needed no unnecessary extra costs or endeavors including forward-lookinginformation. The Company considered the following information:
A. Whether the internal price indicator caused by the change in credit risks varies significantly;
B. Adverse changes in businesses, financial or economic situations that are expected to causesignificant changes in the debtor's capability to perform the obligation of repayment;
C. Whether the effective or expected operation achievements of the debtor change significantly;whether there are unfavorable changes in the borrower's regulatory, economic and technicalenvironment;
D. Whether the value of collateral for debt mortgage, or the quality of the collateral or creditenhancement provided by a third party changes significantly; These expected changes will reduce thedebtor's economic motive for repaying on the agreed date or affect the rate of default;
E. Whether the economic motive that is expected to affect repayment on the agreed date changessignificantly;
F. Whether expected changes of loan contract including the expected breach of contract will leadto the exemption from or the revision of contractual obligations, interest-free periods, the interest
jump, requirement for more collaterals or guaranties, or other changes in the contractual frameworkof financial instruments;G. Whether the expected performance and repayment of the debtor change significantly; andH. Whether the contract payment is overdue for 30 days or more.According to the nature of financial instruments, the Company assessed whether the credit riskincreased significantly based on individual financial instruments or portfolios of financialinstruments. When doing the portfolio-based assessment, the Company could classify financialinstruments based on shared features of credit risks, for instance, overdue information and creditrisk ratings.
Usually, if a financial instrument was more than 30 days overdue, the Company recognizedthat its credit risks had increased significantly. Unless the Company could obtain reasonable andwell-grounded information without too many costs and efforts to prove that there was no surge ofcredit risks since initial recognition although the payment had been over 30 days later than thepayment period agreed in a contract.
④ Financial assets with incurred credit impairment
The Company assessed whether credit impairment has incurred to the financial assetsmeasured at amortized cost and the debt investments measured at fair value and included in othercomprehensive income on the balance sheet date. If one or more incidents that had an adverse effecton the expected cash flows of a financial asset occurred, the asset was recognized as one withincurred credit impairment. Evidence for financial assets with incurred credit impairment includedthe following observable information:
The issuer or debtor has significant financial difficulties; the debtor breaches the contract, suchas default or being overdue in the payment of interest or principal; for economic or contractualreasons related to the debtor, the creditor gives the debtor concessions that he would not makeunder any other circumstance; the debtor is likely to go bankrupt or undergo other financialreorganization; the financial difficulty of the issuer or debtor leads to the disappearance of theactive market for the financial asset; the purchase or generation of a financial asset at a substantialdiscount that reflects the fact that a credit loss has occurred.
⑤ Presentation on expected credit loss reserves
To reflect changes in the credit risk of financial instruments since the initial recognition, theCompany remeasured expected credit losses on every balance sheet date. The consequent increasesor reversals of loss reserve shall be included as impairment losses or gains into profit or loss for thecurrent period. For financial assets measured at amortized cost, impairment losses were allocated tooffset the carrying value of the financial asset presented in the balance sheet. For the debtinvestments measured at fair value through other comprehensive income, the Company recognizedtheir loss reserves in other comprehensive income but not offset the carrying value of the financialasset.
⑥ Write-offs
If the Company no longer reasonably expected the contractual cash flows of a financial assetcould be completely or partially recaptured, the carrying amount of the financial asset shall be
directly written down. Such write-downs constructed the derecognition of relevant financial assets.This usually happened when the Company recognized that the debtor did not have assets or incomesources to generate sufficient cash flows for the repayment of write-downs.Recaptured financial assets with write-downs were included as the reversal of impairmentlosses in profit or loss for the current period.
(6) Financial asset transfer
Financial asset transfer refers to the following two situations:
A. The contractual right to obtain cash flows from the financial asset is transferred to the otherparty.B. The financial asset is completely or partially transferred to the other party, but the contractualright to obtain cash flows is reserved and the contractual obligation to pay cash flow obtained to oneor more payees was assumed.
① Derecognition of transferred financial assets
A financial asset was derecognized if almost all the risks and rewards of its ownership hadbeen transferred or if the Company had retained no control over the financial asset, even if almostall the risks and rewards of its ownership were neither transferred nor retained.
Judgment about waiver of the control over transferred financial assets was based on theeffective capability of the transferor to sell the financial asset. If the transferor could have ex parteand overall sales of the transferred financial asset to an unrelated third party, and the sales werewith no extra constraining factors attached, it was recognized that the Company had waived thecontrol over the financial asset.
The Company valued the essence of financial asset transfer when judging whether the transfermet the conditions for derecognition.
If the overall transfer of financial assets met the conditions for derecognition, the differencebetween the following amounts was included in the profit and loss for the current period:
A. Carrying value of the transferred financial assets;
B. The sum of the consideration due to transfer and the cumulative amount of fair value changesoriginally included in other comprehensive income that corresponds to the derecognized portion(transfer-related financial assets refer to those classified as financial assets measured at fair valuethrough other comprehensive income in line with Article 18 of Accounting Standards for BusinessEnterprises No. 22-Recognition and Measurement of Financial Instruments).
For partial transferred financial assets that met the conditions for derecognition, the carryingvalue of the overall transferred financial assets was allocated at the respective relative fair value onthe transfer date between the recognized portion and the derecognized portion (in this case, retainedservice assets are considered as part of the recognized financial assets), and the following twoaccounts were included in profit or loss for the current period:
A. The carrying value of the derecognized portion on the derecognition date.
B. The sum of the consideration the derecognized portion and the cumulative amount of fairvalue changes originally included in other comprehensive income that corresponds to the
derecognized portion (transfer-related financial assets refer to those classified as financial assetsmeasured at fair value through other comprehensive income in line with Article 18 of AccountingStandards for Business Enterprises No. 22-Recognition and Measurement of Financial Instruments).
② Continuous involvement of transferred financial assets
If almost all the risks and rewards of ownership of the transferred financial assets were neithertransferred nor reserved and the control over it was not waived, relevant financial assets shall berecognized based on the extent of continuing involvement with transferred financial assets, andrelated liabilities shall be recognized as well.The extent of continuing involvement with transferred financial assets refers to the extent ofrisks of changes in the value of transferred financial assets or the rewards the enterprise undertakes.
③ Continuous recognition of transferred financial assets
If almost all the risks and rewards of ownership of the transferred financial assets werereserved, the overall transferred financial asset shall be recognized continuously and theconsideration obtained shall be recognized as a financial liability.
The financial asset could not offset relevant recognized financial liabilities. In the subsequentaccounting period, the enterprise shall continue to recognize the revenues (or gains) generated bythe financial asset and the costs (or losses) generated by the financial liability.
(7) Offset between Financial Assets and Financial Liabilities
Financial assets and financial liabilities shall be presented separately in the balance sheet andshall not offset each other. But if they met all the following conditions, the net amount after theyoffset each other was reported in the balance sheet:
The Company had an enforceable legal right to offset the recognized amounts.
The Company planned to settle them on a net basis or to realize the financial assets and pay offthe financial liabilities at the same time.
The transferor shall not offset transferred financial assets that fail to meet the criteria forderecognition against relevant liabilities.
(8) Method of Determining the Fair Value of Financial Instruments
Please refer to Section XII. V. (10) for the method of determining the fair value of financialassets and financial liabilities.
11. Notes Receivable
Please refer to the description of financial instruments.
12. Accounts Receivable
Please refer to the description of financial instruments.The Company shall comply with the disclosure requirements of the Guidelines No. 6 of Shenzhen Stock Exchange on Industry
Information Disclosure -- Listed Companies Engaging in Home Furnishing and Decoration Business.Please refer to the description of financial instruments.
13. Receivables Financing
Please refer to the description of financial instruments.
14. Other Receivables
The determination methods and accounting methods of the expected credit losses of other receivables.Please refer to the description of financial instruments.
15. Inventories
(1) Classification of Inventories
Inventories refer to finished products the Company holds for sales in routine activities, work inprocess, and materials and supplies consumed in production process or when providing services,such as raw materials, merchandise on hand, work in process, consumptive biological assets, andturnover materials.
(2) Pricing Method of Issuing Inventories
Inventories of the Company were priced using the weighted average method when beingissued.
(3) The Inventory System
The Company adopted the perpetual inventory system which performed at least a stocktakingannually and included inventory shortage and overage into profit and loss for that year.
(4) The Accrual Method for Falling Price Reserves of Inventories
On the balance sheet date, the measurement, based on which was smaller between the cost andthe net realizable value, was put in practice. If the cost of inventories was higher than its netrealizable value, then the accrual for inventory falling prices reserves was implemented and thefigure was included in the profit or loss for the current period.
The net realizable value of inventories was determined on the basis of reliable evidence whiletaking into account the purpose of holding inventories and the effect of items after the balance sheetdate.
① In regular production and operation, the determination of the net realizable value forinventories for direct sales, such as finished goods, goods and materials for sale, was the expectedselling price minus the expected selling expense and relevant taxes. The net realizable value of theinventories which were owned in order to execute a sale contract or a labor services agreement wasmeasured on the basis of the contract price. If inventories owned by the Company were more thanquantities ordered in sale contracts, the net realizable value of exceeding quantities of inventorieswas measured on the basis of the common selling price. The net realizable value of materials forsale and so on was measured on the basis of market price.
② In regular production and operation, the determination of the net realizable value ofmaterials inventories that needed processing was the expected selling price of finished goods thatwere about to produce minus the cost that was about to be incurred when completion, the expectedselling expense and the relevant taxes. If the net realizable value of the finished good that was aboutto produce was higher than the cost, the correlated material was measured at the cost; if the drop ofthe price of the material indicated that the net realizable value of the finished good was lower thanthe cost, the correlated material was measured at net realizable value and the accrual of reserves forfalling price of inventories was implemented on the basis of the difference.
③ Generally the reserves for falling price of inventories were accrued at a single inventoryunit, but if the number of inventories was large and the price was low, the accrual was on the basisof categories of inventories.
④ If the influence of the previous write-down value of inventories had vanished on thebalance sheet date, the write-down was recovered and reversed within the amount of the previouslyaccrued reserves for falling price of inventories. The reversed amount was included in the profit orloss for the current period.
(5) The Amortization Method of Turnover Materials
① Amortization method of low-value and perishable items: One-off resale method wasadopted when these items were utilized.
② Amortization method of packaging items: One-off resale method was adopted when theseitems were utilized.
16. Contract Assets
Contract assets and contract liabilities
Applicable from 1 January 2020
The Company reported contract assets or contract liabilities on the balance sheet in accordancewith the relationship of performance obligations and customer payment. The consideration theCompany had the right to receive from transferring goods to or providing services from customers(in the meantime this right was dependent on other factors except time lapse) was reported ascontract assets. The obligations of transferring goods to or providing services for customers as aresult of the consideration that the Company had received or shall receive from customers werereported as contract liabilities.
Please refer to Section XII. V. (10) for the Company's recognition methods and accountingmethods of the expected credit losses of contract assets.
Contract assets and contract liabilities were reported separately on the balance sheet. Contractassets and contract liabilities in the same contract were reported in the form of net amount. If the netamount was debit balance, it was reported in the items of "Contract assets" or "Other non-currentassets" according to its liquidity. If the net amount was credit balance, it was reported in the itemsof "Contract liabilities" or "Other non-current liabilities" according to its liquidity. Then contractassets and contract liabilities in different contracts could not offset each other.
Please refer to Section XII. V. (10) for the Company's recognition methods and accountingtreatment methods of the expected credit losses of contract assets.
17. Contract Costs
Applicable from 1 January 2020The contract cost could be divided as contract performance cost and contract acquisition cost.The cost incurred by performing a contract by the Company was recognized as an asset in theform of contract performance cost when it met all the following conditions:
① The cost was directly related to a current or an expected contract including the cost ofdirect labor, direct material and manufacture (or similar cost), and the clearly determined costassumed by customers and other costs that were incurred only for the contract.
② The cost increased the resources that the Company would use for performing theperformance liabilities in the future.
③ The cost was expected to be recovered.
If the incremental cost incurred by the Company's acquisition of the contract was expected tobe recovered, it was recognized as an asset in the form of contract acquisition cost.
The asset relevant to contract cost was amortized on the same basis as goods or servicerevenue recognition relevant to this asset; but if the amortization period of the contract acquisitioncost was no more than one year, the Company included it into the profit or losses for the currentperiod when it was incurred.
If the carrying value of the assets related to contract costs was higher than the differencebetween the two figures below, the Company would set aside provisions for assets impairment todeal with the extra part, and recognized that part as asset impairment losses, further consideringwhether to accrue provisions related to contracts with losses:
① Estimated residual consideration to be obtained from the transfer of commodities orservices related to the assets;
② Estimated costs incurred from the transfer of the relevant commodities or services.
If reversal occurred after the provisions for assets impairment mentioned above, the assetcarrying value after reversal was no more than the carrying value of the asset on the reversal dateassumed to be the amount without accrual of provision for assets impairment.
The contract performance cost recognized as an asset was reported in the item of "Inventories"if the amortization period was no more than one year or a regular operating period when it was firstrecognized; if the amortization period was more than one year or a regular operating period when itwas first recognized, it would be reported in the item of "Other non-current assets".
The contract acquisition cost recognized as an asset was reported in the item of "Other currentassets" if the amortization period was no more than one year or a regular operating period when itwas first recognized; if the amortization period was more than one year or a regular operatingperiod when it was first recognized, it would be reported in the item of "Other non-current assets".
18. Assets Held for Sale
(1) The Classification of Held-for-sale Non-current Assets or Disposal GroupsThe Company classified the non-current assets or disposal groups that met all the followingconditions as assets held for sale:
① In accordance with the practice of selling such assets or disposal groups in similartransactions, they could be sold immediately in the current situation;
② The sale was likely to occur, i.e., the Company has already made a resolution of an offerand the acquisition commitment was confirmed, and the offer was expected to be completed withinone year. (Approval has been obtained for those that can be sold only after being approved byrelevant authorities or regulators of the Company subject to relevant regulations.)
The non-current assets or disposal groups acquired by the Company in order to resell wasclassified as assets held for sale on the acquisition date if they not only met the condition that thesales were expected to finish within one year but that they were likely to meet other conditions to beclassified as held-for-sale assets in a short term (usually 3 months).
If the Company lost its control rights over its subsidiary due to selling the investments in thesubsidiary or for some other similar reasons, provided that the to-be-sold investments in thesubsidiary met the condition to be classified as held-for-sale assets, in some of all the financialstatements of the Company as the parent, these investments would be classified as assets held forsale, and in the consolidated financial statements, all assets and liabilities of the subsidiary would beclassified as held-for-sale, no matter whether the Company maintained some of the equityinvestments after sales.
(2) The Measurement of Held-for-sale Non-current Assets or Disposal Groups
The measurements of the following items were applicable to other related accounting standardsrespectively: the investment property measured later at fair value model, the biological assetmeasured at the net amount which equaled the fair value minus sales cost, the assets formed byemployees' salaries, deferred income tax assets, the financial assets regulated by accountingstandards relevant to financial instruments and the rights generated in the insurance contractregulated by insurance-contract-related accounting standards.
When the held-for-sale non-current assets or disposal groups were initially measured ormeasured again on the balance sheet date, if the carrying value was higher than the net amountwhich equaled fair value minus sales cost, the carrying value was written down to the net amountequaling fair value minus sales cost, and the write-down was recognized as asset impairment lossand included in the profit and loss for the current period. And the provisions for asset impairmentfor the assets held for sale was accrued at the same time.
When non-current assets or disposal groups were no longer classified as held-for-sale assetsbecause they no longer met the conditions to be classified as held-for-sale assets, or whennon-current assets were removed from held-for-sale disposal groups, the measurement was based onwhichever was smaller between the following two figures:
① The amount of the carrying value before the classification of held-for-sale assets and afterthe adjustment of depreciation, amortization or write-down that shall have been recognizedassuming that the assets were not classified as held-for-sale.
② The amount that was recoverable.
(3) The Reporting
The Company reported the held-for-sale non-current assets or assets in disposal groupsseparately in the balance sheet to distinguish them from other assets, and reported the liabilities inheld-for-sale disposal groups separately in the sheet to distinguish them from other liabilities. Theheld-for-sale non-current assets or assets in held-for-sale disposal groups could not offset theliabilities in held-for-sale disposal groups, and they were reported as current assets and currentliabilities respectively.
19. Debt Investments
20. Other Debt Investments
21. Long-term Receivables
Please refer to the description of financial instruments.
22. Long-term Equity Investments
Long-term equity investments of the Company refer to the equity investments where theCompany exerts control and significant influence on the investee as well as the equity investment inits joint ventures. If the Company is able to exert significant influence on it, the investee is anassociate of the Company.
(1) The Grounds for Determining the Joint Control and Significant Influence over
Investees
Joint control refers to the common control over a particular arrangement according to relevantagreement, and that the decisions on relevant activities under such arrangement are subject to theunanimous consent from the parties sharing the joint control. When the judgment of whether jointcontrol existed or not was executed, the first to judge was whether all parties or a group of partiescontrolled the arrangement collectively. If relevant activities under an arrangement was onlydetermined by the concerted action of all parties or a group of parties, then it was thought that allparties or a group of parties controlled the arrangement collectively. The next to judge was whetherthe decisions on relevant activities under such arrangement were subject to the unanimous consentfrom the parties that controlled the arrangement collectively. If there were two or more party groupsthat had the ability to control an arrangement collectively, there was no joint control. When thejudgment of whether joint control existed was executed, the possessed protection right was notconsidered.
Significant influence refers to having the power to participate in the financial and operating
policy decision-making of the investee, but cannot control or, together with other parties, jointlycontrol the formulation of these policies. In the determination of whether significant influence wasexerted on the investee, the influence of the investees' voting power stocks that were held directly orindirectly by the investor, and the influence after assuming that the executable potential votingpower for the current period held by the investor and other parties was converted into the equityinterest of the investee were taken into account. These included the influences of convertible stockwarrant, stock option and convertible corporate bonds for the current period issued by the investee.When the Company held more than 20% (inclusive) but less than 50% of the voting powerstocks of the investee directly or indirectly through a subsidiary, it was generally deemed as havinga significant influence over the investee. Unless there was clear evidence indicating that under thiscondition the Company could not participate in the production and operation decisions of theinvestee, the significant influence still maintained.
(2) Determination of Initial Investment Cost
① The investment cost of the long-term equity investments formed by business combinationwas determined on the basis of the following regulations:
A. If the business combination was under the same control and the combinator used cashpayment, non-cash asset assignment or debt assumption as the consideration of combination, theinitial investment cost of the long-term equity investments was recognized at the portion of thecarrying value of the combined party's owners' equity in the consolidated financial statement of theultimate controlling party on the date of combination. The difference between the initial investmentcost of long-term equity investments and the carrying value of paid cash, assigned non-cash assetsand assumed debts was referred to adjusting capital reserves; if capital reserves were not enough forthe reduction, then retained earnings were adjusted.
B. If the business combination was under the same control and the combinator used equityflotation as the consideration of combination, then the initial investment cost of the long-term equityinvestments was recognized at the portion of the carrying value of the combined party's owner'sequity in the consolidated financial statement of the ultimate controlling party on the date ofcombination. The difference between the initial investment cost of the share capital and the long-termequity investments and the total carrying value of the issued stocks was the sum of the carrying valueof the issued stocks, which was referred to adjusting capital reserves; if capital reserves were notenough for the reduction, then retained earnings were adjusted.
C. If the business combination was not under the same control, then the initial investment cost ofthe long-term equity investments was the combination cost, which was measured at the fair value ofthe assets paid for the control right over the acquired party, the liabilities incurred or assumed and theequity securities issued on the date of acquisition. The commissions incurred as a result of businesscombination, such as intermediary costs of audit , legal services, consultation and assessment, andother relevant administrative expenses, were included in the profit and loss for the current periodwhen incurred.
② The investment cost of the long-term equity investments acquired by other means (that is,except by the means of business combination) was determined on the basis of the followingregulations:
A. For the long-term equity investments acquired by payment in cash, the investment cost wasthe actual purchasing price that was paid. The initial investment cost included the expenses directlyrelated to the acquisition of long-term equity investments, taxes and other necessary expenditure.B. For the long-term equity investments acquired by issuing equity securities, the initialinvestment cost was the fair value of the issued equity securities.C. For the long-term equity investments acquired by converting non-monetary assets, if theconversion had commercial substance and in the meantime the fair value of the received assets orsurrendered assets could be measured reliably, the initial investment cost shall be the fair value of thesurrendered assets and other taxes, and the difference between the fair value of the surrendered assetsand the carrying value was included in the profit and loss for the current period; if the non-monetaryassets conversion did not meet the aforesaid two conditions concurrently, the initial investment costwas the carrying value of the surrendered assets and other taxes.D. For the long-term equity investments acquired through debt restructuring, the carrying valuewas determined based on the fair value of the waived creditor's rights and other costs such as taxesdirectly attributable to the asset, and the difference between the fair value and carrying value of thewaived creditor's rights was included in the profit and loss of the current period.
(3) Subsequent Measurement and Recognition of Profit and LossThe Company was able to account for the long-term equity investments controlled by theinvestee. The equity method would be adopted for long-term equity investments of associates andjoint ventures.
① Cost method
For the long-term equity investments measured by cost method, the Company adjusted the costof long-term equity investments when providing additional investments or repaying the investments;the cash dividends or profits declared by the investee were recognized as return on investment forthe current period.
② Equity method
The common accounting treatment of long-term equity investments measured under the equitymethod:
If the amount of the Company's investment cost for the long-term equity investments waslarger than the share of the investee's identifiable net assets of the fair value entitled to the Companyat the time of investment, the initial investment cost of the long-term equity investments would notbe adjusted. If the amount of the Company's initial investment cost for the long-term equityinvestments was smaller than the share of the investee's identifiable net assets of the fair valueentitled to the Company at the time of investment, the difference was included in the profit and lossfor the current period, while the cost of the long-term equity investments was adjusted concurrently.
The Company recognized the return on investment and other comprehensive incomerespectively, according to the allocated share of net profit and loss and other comprehensive incomereported by the investee as it was entitled to share or was responsible for sharing, while the carryingvalue of the long-term equity investments were adjusted. The Company measured its allocated shareaccording to the profits and cash dividend declared by the investee, while a commensurate
reduction incurred to the carrying value of the long-term equity investments. For other changes inowners' equity of the investee except the net profit and loss, other comprehensive income and profitdistribution, the carrying value of the long-term equity investments was adjusted and the changeswere included in the owners' equity. When recognizing the allocated share of net profit of loss ofthe investee, the Company recognized the net profit and loss of the investee after adjustment, basedon the fair value of the identifiable net assets of the investee at the time of obtaining the investments.If there was any inconsistency of the accounting policy and accounting period between the investeeand the Company, adjustments on the financial statements of the investee were conducted accordingto the Company's accounting policy and accounting period. Based on the adjustment, the return oninvestment and other comprehensive income were recognized correspondingly. The proportionattributed to the Company of unrecorded profit or loss of internal transactions between theCompany and associates and joint ventures was calculated and set off according to the proportionentitled to the Company, while its profit or loss of the investments were recognized correspondingly.Unrecorded internal transaction losses incurred between the Company and the investee wererecognized in full if they fell under asset impairment loss.
If the Company was able to impose critical impact on the investee or to implement commoncontrol but not constitute control due to the supplementary investment or any other reason, the sumof the cost of the additional investment and the fair value of the equity investment originally held bythe Company was re-measured as the initial investment cost under the equity method. If the originalequity investment of the Company was classified as investments in other equity instruments, thedifference between the fair value and the carrying value, and the cumulative gains or lossesoriginally included in the other comprehensive income shall be transferred from othercomprehensive income to retained earnings at the time the investment was measured under theequity method.If the Company lost the common control or critical impact on the investee due to the disposalof part of the equity investment or any other reason, the residual equity after disposal shall beincluded in the profit and loss of the current period at the difference between the fair value and thecarrying value on the date the Company lost joint control or the date of critical impact on theinvestee. Other comprehensive income from the original equity investment calculated andrecognized under the equity method shall be kept account of on the same basis of the direct disposalof relevant assets or liabilities by the investee when it was ceased to keep account of the investmentusing equity method.
(4) Equity Investment Held for Sale
For the related accounting treatment to wholly or partly classify the equity investment inassociates or joint ventures as assets held for sale, please refer to Section XII. V. (18).
The residual equity investment not classified as assets held for sale was treated by the equitymethod.
If the equity investment in associates or joint ventures was classified as investment held forsale and was no longer eligible for the criteria to be classified as assets held for sale, the Companyconducted retroactive adjustment under the equity method from the date it was classified as assetsheld for sale. The Company made corresponding adjustment to the financial statement classified asin the period held for sale.
(5) Impairment Test Method and Accrual Method of Provisions for Asset ImpairmentFor the methods to accrue assets impairment for the investments in the subsidiaries, associatesand joint ventures, please refer to Section XII. V. (31).
23. Investment Property
Measurement model of Investment propertyMeasurement by the cost methodDepreciation or amortization method
(1) Measurement Model for Investment Property
The Company adopted the cost model to conduct follow-up measurement for the investmentproperty. Please refer to Section XII. V. (31) for the methods to accrue assets impairment.
The Company adopted the straight line method for the calculation of depreciation oramortization of the cost of investment property after the accumulative impairment and net residualvalue were deducted from it. The depreciable life and the annual depreciation rate were determinedaccording to the classification of the investment property, the estimated economic useful life, andthe estimated net residual value rate.
| Category | Depreciable life (year) | Residual value rate (%) | Annual depreciation rate (%) |
| Properties and buildings | 20-30 | 5-10 | 4.75-3.00 |
| Land use rights | 50 | - | 2.00 |
24. Fixed Assets
(1) Recognition Conditions
Fix assets refer to tangible assets with higher unit values and a service life over one year that are held to produce goods, providingservices, leasing or operation and management. If the fixed assets fulfilled all the following conditions, it would be recognized at theactual cost at the time it was acquired: a) The economic benefits related to this fixed assets have a good chance to flow into theenterprise. b) The cost of this fixed assets can be reliably measured. If the follow-up expenditure of fixed assets incurred was eligiblefor the recognition conditions of the fixed assets, the Company included it in the cost of fixed assets and the expenditure not eligiblein profit or loss for the current period when it incurred.
(2) Depreciation Method
| Category | Depreciation method | Depreciable life | Residual value rate | Annual depreciation rate |
| Properties and buildings | Straight-line depreciation method | 20-30 | 5-10 | 4.75-3.00 |
| Mechanical equipment | Straight-line depreciation method | 10-14 | 5-10 | 9.50-6.43 |
| Transportation equipment | Straight-line depreciation method | 5-8 | 5-10 | 19.00-11.25 |
| Office equipment | Straight-line depreciation method | 5-8 | 5-10 | 19.00-11.25 |
| Electronic equipment | Straight-line depreciation method | 5-8 | 5-10 | 19.00-11.25 |
| Other equipment | Straight-line depreciation method | 5-8 | 5-10 | 19.00-11.25 |
If the provisions for asset impairment of the fixed assets had been accrued, the Companydeducted the provision during the accrual of depreciation.The Company reviewed the service life, the estimated net residual value, and the depreciationmethod of fixed assets at the end of each year. If there was any difference between the estimatedservice life and the original estimation, the service life of the fixed assets were adjusted.
(3) Determination Basis and Valuation and Depreciation Methods of Fixed Assets Acquired under FinanceLeasesIf the Company substantially transferred all the risks and rewards related to assets to the finance assets leased, this lease of the fixedassets was recognized as the finance lease. The cost of fixed assets obtained from finance lease was determined according to thelower amount of the fair value of the leasehold property on the date of the lease commencement and the present value of theminimum lease payment. The depreciation policy for the accrual of the depreciation of the leasehold property for the fixed assetsacquired under the finance lease was consistent with that adopted for the Company's fixed assets. If it can be reasonably ascertainedthat the ownership of the leasehold property can be obtained by the expiration of the tenancy, the Company accrued the depreciationwithin the useful life of the leasehold property; otherwise, the Company accrued the depreciation within the shorter of the tenancyand the useful life of the leasehold property.
25. Construction in Progress
(1) Classification accounting was conducted for construction in progress according to theproject admission.
(2) The standard and the time point for the construction in progress to be carried forward asfixed assets
For the projects of construction in progress, all expenses incurred before the constructed assetsreached their expected serviceable condition were recognized as the book value of the fixed assets.It included the construction expenses, the original prices of the machines and equipment, othernecessary expenditures incurred for the construction in progress to reach its expected serviceablecondition, the borrowing costs incurred as the equity's special borrowings before it reached theexpected serviceable condition, and the borrowing cost incurred as general borrowings required.The Company transferred the construction in progress to fixed assets, when the engineeringinstallation and construction were completed and reached the expected serviceable condition. Theconstructed fixed assets which reached the expected serviceable condition but did not went through
the final accounting for the completion were transferred to fixed assets at their estimated valueaccording to the project budget, cost estimation and the actual cost of the construction project, onthe date it reached the expected serviceable condition. Meanwhile, its depreciation was accrued bythe depreciation policy of the Company's fixed assets. The original provisional estimate wasadjusted at actual cost after the final accounting for the completion, while the original amount ofdepreciation accrued was not adjusted.
26. Borrowing Costs
(1) Recognition Principle of the Capitalization of Borrowing Costs and the Period of theCapitalization
The Company's borrowing cost incurred directly attributable to the acquisition andconstruction of the assets eligible for the capitalization conditions was capitalized and included inthe cost of related assets if the following conditions were satisfied simultaneously:
① Asset expenditure has been incurred;
② Borrowing costs have been incurred;
③ The necessary acquisition, construction, or production activities to make the assets reachthe expected available state have begun.
Other loan interests, discounts or premiums and the exchange difference were included in theprofit and loss for the current period when they were incurred.
If abnormal disruption were incurred for the assets eligible for the capitalization conditionduring the acquisition, construction, and production process, and the period of disruption was over 3months continuously, the capitalization of the borrowing cost was suspended.
When the assets with the acquisition, construction or production meeting the capitalizationconditions reached the expected available or marketable status, the borrowing cost ceased to becapitalized. The subsequent borrowing costs incurred were recognized as expenses for the currentperiod.
(2) The Calculation Method of the Capitalization Rate and Capitalization Amount ofBorrowing Costs
For the special borrowings borrowed for acquisition and construction or production of theassets eligible for capitalization, the capitalization amount of the interest expense of the specialborrowings was determined based on the interest expense actually incurred in the current period ofthe special borrowings minus the interest income from unspent borrowing funds deposited in banksor the amount after the return on investment was obtained from the temporary investment.
If general borrowings were required for the acquisition, construction or production of theassets eligible for the capitalization condition, the interest amount of the general borrowing to becapitalized was calculated and determined as the weighted average of the asset expenditure for theamount of the accumulative capital expenditure that exceeded the special borrowings multiplied bythe capitalization rate of the required general borrowings. The capitalization rate was determinedbased on the weighted average interest rate applicable to the general-purpose borrowings.
27. Biological Assets
(1) Recognition Criteria for Biological Assets
Biological asset refers to the asset consisting of living animals and plants. Biological assetswere recognized if the following conditions were satisfied simultaneously:
① The Company owned or controlled the biological asset due to the past business transactionor matters;
② There was a high potential that the economic gains or service potential related to thisbiological asset would flow in the enterprise;
③ The cost of this biological asset could be reliably measured.
(2) Classification of the Biological Asset
The biological assets of the Company are wood assets, mainly seedlings. These are allexpendable biological assets.
The expendable biological assets were initially measured at their costs.
① The actual expenditure of the expendable biological asset before its crown coverconstituted the cost of the expendable biological assets. The follow-up expenditure incurred after itscrown cover was included in the profit or loss for the current period.
② At the time of cutting, the cost of the expendable biological asset was carried down by theweighted average method.
③ At the end of each year, inspection was conducted for the expendable biological assets. Ifthere was evidence that the carrying value of the expendable biological assets was higher than thenet realizable value, reserves for falling prices of the biological assets were accrued according to theamount of the lower value and included in the profit or loss for the current period. If the factor forfalling prices of the biological assets no longer existed, the previous reserves accrued for fallingprices were reversed. The value reversed was included in the profit or loss for the current period.
28. Oil and Gas Assets
29. Right-of-use Assets
30. Intangible Assets
(1) Pricing method, Service Life, and Impairment Test
1) Pricing Method of Intangible Assets
Intangible assets were recorded at the actual cost when acquired.
2) Service Life and Amortization for the Intangible Assets
① Estimation of the service life of intangible assets with limited service lives:
| Item | Estimated service life | Basis |
| Land use rights | 50 years | Mandated use rights |
| Computer software | 5 years | The Company determined the service life with the period of economic gains brought to the Company as a reference. |
The Company reviewed the service life and amortization method of intangible asset with finiteservice life at the end of each year. After review, at the end of the current period, the service lifeand amortization method of the intangible assets had no difference with the previous estimation.
② If the length of period for the intangible assets to bring economic gains for the Companywas not predictable, the Company considered the asset as intangible assets with uncertain servicelife. The Company reviewed the service life of the intangible assets with uncertain service life at theend of each year. If the service life was still considered uncertain after the review, the impairmenttest was conducted on the balance sheet date.
③ Amortization of intangible assets
For the intangible assets with a limited service life, the Company judged the service life uponobtaining the assets. Within the service life, the straight-line method system was adopted forrational amortization. The amortization amount was included in profit or loss for the current period.The specific amortization amount was the cost amount after the deduction of estimated residualvalue. If provisions for asset impairment of the intangible assets had been accrued, the accumulativeamount of the accrued provisions was deducted with zero salvage value. However, there were thefollowing exceptions: there was a third party who promised to purchase the intangible assets at theend of their service life, or the information of estimated residual value could be acquired accordingto the active market while the market was likely to exist till the end of the service life of theintangible assets.
Intangible assets with uncertain service life were not amortized. The service life of theintangible assets with uncertain service life was reviewed at the end of each year. If it was evidentthat the service life of the intangible assets was limited, the service life was estimated and rationalamortization was conducted systematically within the estimated service life.
(2) Accounting Policies for Internal Research and Development Costs
1) Specific Criteria for the Classification of the Research Phase and Development Phase ofInternal Research and Development Projects.
① The Company assumed the data and other preparation activities processed for the furtherdevelopment activity as the research phase. The expenditure of the intangible assets incurred in theresearch phase was included in profit or loss for the current period.
② The development activities processed after the Company completed the work of theresearch phase were assumed as the development phase.
2) Specific Conditions for Capitalizing Expenditure during the Development Phase
The expenditure was recognized as intangible assets if the following conditions were satisfiedsimultaneously:
① The intangible assets were completed so that it was technically feasible that the intangibleassets could be used or sold.
② Intentions existed to complete the intangible assets and to use or sell them.
③ The method for the intangible assets to generate economic gains included evidence that theproducts produced by using the intangible assets were in the market, or that there were markets forthe intangible assets of its own. If the intangible assets were to be used internally, their usefulnesswas proved.
④ There were sufficient technologies, financial resources and other resources to support thecompletion of the development of the Intangible assets. Meanwhile, the capability to use or sell theintangible assets existed.
⑤ Expenditures attributable to the development phase of the intangible assets could bereliably measured.
31. Long-term Assets Impairment
(1) Test Methods and Accounting Methods for Impairment of Long-term EquityInvestments
The Company inspected each long-term equity investment one by one on the balance sheetdate, and judged whether there were signs of impairment for long-term equity investments based onvarious changes in the operation policies of the investee, legal environment, market demand,industry, and profitability. If the recoverable amount of the long-term equity investment was lowerthan the carrying amount, the difference between the recoverable amount and the carrying value ofthe long-term equity investments was accrued as the impairment provision for the long-term equityinvestments. Once the asset impairment loss was recognized, it shall not be reversed in subsequentaccounting periods.
(2) Test Methods and Accounting Methods for Impairment of Investment PropertyOn the balance sheet date, the investment property was valued at the lower between the cost andthe recoverable amount. If the recoverable amount was lower than the cost, impairment provisionwas accrued by the difference between the two. If the value of the investment property for whichthe impairment provision had been accrued was restored, the impairment provision accrued in theprevious period shall not be reversed.
(3) Test Methods and Accounting Methods for Impairment of Fixed Assets
The Company made judgments on all fixed assets on the balance sheet date. If there were signsof impairment and the recoverable amount was estimated to be lower than the carrying value, thecarrying value was written down to the recoverable amount, and the write-down amount wasrecognized as asset impairment loss and was included in profit or loss for the current period. Thecorresponding provision for assets impairment was accrued at the same time. Once the assetimpairment loss was recognized, it shall not be reversed in subsequent accounting periods. The
impairment provision was accrued for the full amount by the single item of fixed assets if therewere following signs:
① Fixed assets have been idle for a long time, will not be put in use in the foreseeable future,and have no transfer value;
② Fixed assets are no longer usable due to technological progress and other reasons;
③ Fixed assets are still usable, but the use of such assets results in a large quantity ofdefective products;
④ Fixed assets have been damaged and no longer have use value or transfer value;
⑤ Fixed assets can no longer bring factual economic benefits to the Company.
(4) Test Methods and Accounting Methods for Impairment of Construction in Progress
The Company inspected the construction in progress comprehensively on the balance sheetdate. If there was evidence showing that the construction in progress had been impaired, and therecoverable amount was estimated to be lower than the carrying value, the carrying value waswritten down to the recoverable amount and the write-down amount was recognized as assetimpairment loss which was included in profit or loss for the current period. The correspondingprovision for assets impairment was accrued at the same time. Once the asset impairment loss wasrecognized, it shall not be reversed in subsequent accounting periods. The construction in progressshall be tested for impairment if one or several following conditions exist:
① Construction in progress has been suspended for a long time and are not expected toresume in the next three years;
② Construction has fallen behind in terms of its performance and technology, and brings hugeuncertainties to economic benefits of the Company;
1. Other circumstances sufficient to prove that the construction in progress has been impaired.
(5) Test Methods and Accounting Methods for Impairment of Intangible Assets
If the recoverable amount of intangible assets was lower than the carrying value, the carryingvalue of the assets was written down to the recoverable amount, and the write-down amount wasrecognized as asset impairment loss which was included in profit or loss for the current period. Thecorresponding impairment provision for intangible assets was accrued at the same time. Once theintangible asset impairment loss was recognized, it shall not be reversed in subsequent accountingperiods. The intangible assets shall be tested for impairment if one or several following conditionsexist:
① The intangible assets have been replaced by other new technologies, which results in amajor adverse impact on its ability to create economic benefits for the Company;
② The market prices of the intangible assets have declined significantly in the current periodand may not rally during the remaining years;
③ Other circumstances sufficient to prove that the carrying value of the intangible assets hasexceeded the recoverable amount.
(6) Test for Goodwill Impairment
For goodwill formed through business combinations, it shall be tested for impairment at leastat the end of each year. When the Company conducted an impairment test on the related asset groupor combination of asset groups that contain goodwill, the following procedures shall be taken ifthere were signs of impairment in the asset group or combination of asset groups related togoodwill:
First, the Company performed an impairment test on the asset group or combination of assetgroups that do not contain goodwill, calculated the recoverable amount, and compared it with thecarrying value of the related assets to recognize the corresponding impairment loss. Then, itperformed an impairment test on the asset group or asset group that contains goodwill andcompared the carrying value of the related asset group or combination of asset groups (including theallocated carrying value of goodwill) with their recoverable amount; if the recoverable amount ofthe related asset group or combination of asset groups was lower than the carrying value, theimpairment loss was recognized by the difference. The amount of impairment loss was firstallocated to offset the carrying value of goodwill in the asset group or combination of asset groups;then it offset the carrying value of other assets based on the proportion of the carrying value of otherassets in the asset group or combination of asset groups other than goodwill.
32. Long-term Prepaid Expense
Long-term prepaid expense accounted for the expenses with an amortization term beyond ayear of the Company which have incurred and shall be allocated to the expenses in the currentperiod and the subsequent periods.
The long-term period prepaid expense of the Company shall be amortized equally within thebeneficial period. The period of the amortized expenses was as follows:
| Item | Amortization Period |
| Expenditure on the improvement of fixed assets leased through operating lease | Reasonable amortization by the best expected realization mode of economic benefits |
33. Contract Liabilities
Method of determining the contract liabilitiesPlease refer to 16. Contract assets
34. Employee Remuneration
(1) Accounting Methods for Short-Term Remuneration
① Basic salaries of employees (wages, bonus, allowances and subsidies)
During the accounting period in which the employees provided services, the Companyrecognized the actual short-term remuneration as liabilities and included them in profit or loss forthe current period (other than other remuneration to be included in the cost of assets as required or
allowed by accounting standards.
② Employee benefit expense
The employee benefits of the Company which have incurred were included in profit or loss forthe current period or the cost of relevant assets at the actual amount incurred. If the employeebenefits were non-monetary benefits, they shall be measured at fair value.
③ Social insurance expenses including medical insurance expense, work-related injuryinsurance expense and maternity insurance expense, public housing provision, as well as laborunion expense and employee education expense
The employee remuneration, in the accounting period in which the employees providedservices, was calculated and determined by the withdrawal basis and withdrawal ratio in therequirements of expenses paid by the Company, recognized as liabilities and included in profit orloss for the current period or the cost of relevant assets, including social insurance expenses such asmedical insurance expense, work-related injury insurance expense and maternity insurance expense,public housing provision, as well as labor union expense and employee education expense paid bythe Company.
④ Short-term paid absence
When the employees provided services and earned the right of paid absence to be exercised inthe future, the Company recognized the employee remuneration related to cumulative paid absenceand measured it at the expected payable amount arising from cumulative rights that were notexercised. During the accounting period in which an employee was actually absent, the Companyrecognized the employee remuneration relating to non-cumulative paid absence.
⑤ Short-term profit sharing plan
The Company recognized the relevant employee benefits payable if the profit sharing plan metall the following conditions simultaneously:
A. The corporate had legal obligations or constructive obligations to pay employee remunerationas a result of the previous events;
B. The amount of employee benefits payable arising from the profit sharing plan could bereliably estimated.
(2) Accounting Method for Post-employment Benefits
① Defined contribution plans
During the accounting period in which the employees provided services, the Companyrecognized the amounts to be deposited as calculated based on the defined contribution plan asliabilities, and included them in profit or loss for the current period or the cost of relevant assets.
Based on the defined contribution plan, if all amounts to be deposited were not expected to bepaid within 12 months after the end of the annual reporting period in which the employees renderedrelevant services, the employee benefits payable were measured at the discounted value of allamounts to be deposited at the corresponding discount rate (determined by the market rate of return
for treasury bonds matched with term and currency for paying the obligation under the definedcontribution plan or the active and high-quality corporate bonds on the balance sheet date).
② Defined benefit plan
A. Determination of present value and service cost for the current period of the defined benefitplanBased on the projected unit credit method, related demographic variables and financialvariables were estimated by using unbiased and mutually compatible actuarial assumptions, theobligations under the defined benefit plan were measured, and the periods to which relevantobligations were attributed were determined. The Company discounted obligations arising from thedefined benefit plan using the corresponding discount rate (determined by the market yields of thetreasury bonds matched with the term and currency for paying the obligations in the defined benefitplan or of the high-quality and active corporate bonds) to determine the present value and thecurrent service cost of the defined benefit plan.B. Recognition of the net liabilities or assets of the defined benefit planIf a defined benefit plan had assets, the Company shall recognize the deficit or surplus bydeducting fair value of the defined benefit plan assets from the present value of the defined benefitplan obligations as a net liability or asset of defined benefit plan.If the defined benefit plans had surplus, the Company shall measure the net profit of thedefined benefit plan according to whichever was lower between the surplus and asset ceiling of thedefined benefit plan.C. Determination of the amount which shall be included in asset cost or loss and profit for thecurrent periodService cost includes service cost for the current period, service cost for the past periods, andsettlement gains and losses. Specifically, other than service cost for the current period that wererequired or allowed to be included in asset cost, other service costs shall be included in profit andloss for the current period.The net interest of net liabilities or net assets of the defined benefit plan, including interestincome of assets of the plan, interest expense of obligations of the plan as well as the interest arisingfrom asset ceiling, shall be included in profit and loss for the current period.
D. Determination of the amount that shall be included in other comprehensive income
Changes arising from the remeasurement of net liabilities or net assets of the defined benefitplan, including:
(a) Actuarial gains or loss, i.e., the increase decrease in the measurements of present value ofobligations of the defined benefit plan arising from actuarial assumption and experience adjustment;
(b) Return on plan assets, deducting the amounts that were included in the net interest of netliabilities or net assets of the defined benefit plan;
(c) Changes arising from the asset ceiling, deducting the amounts that were included in netinterest of the net liabilities or net assets of the defined benefit plan.
The aforesaid changes arising from the remeasurement of net liabilities or net assets of the
defined benefit plan shall be directly included in other comprehensive income and shall not betransferred back to profit and loss during the subsequent accounting periods. However, theCompany may transfer these amounts recognized in other comprehensive income within its scopeof rights and interests.
(3) Accounting Method for Dismissal Benefits
If the Company offered employees with dismissal benefits, the liabilities of employeeremuneration shall be recognized and included in profit or loss for the current period on the earlierdate of the two following circumstances:
① When the Company is not able to withdraw the dismissal benefits from termination ofemployment or resignation persuasion unilaterally;
② When the Company recognizes the costs and expenses relevant to the restructuringregarding dismissal benefits payment.
If the dismissal benefits were not expected to be paid in full amount within 12 months after theend of the Reporting Period, the amount of the dismissal benefits shall be discounted in line withthe corresponding discount rate (determined by the market yields of the treasury bonds matchedwith the term and currency for paying the obligations in the defined benefit plan or of thehigh-quality and active corporate bonds). The employee benefits payable shall be measured at thediscounted amount of the dismissal benefits.
(4) Accounting Method for Other Long-Term Employee Benefits
① Benefits meeting the conditions of the defined contribution plan
If other long-term employee benefits that the Company offered to employees met theconditions of the defined contribution plan, employee benefits payable shall be measured at thediscounted value of all amounts to be deposited.
② Benefits meeting the conditions of the defined benefit plan
At the end of the Reporting Period, the Company shall recognize the employee remunerationcosts arising from other long-term employee benefits as the following items:
A. Service cost;
B. Net interest of net liabilities or net assets of other long-term employee benefits;
C. Changes arising from the remeasurement of net liabilities or net assets of other long-termemployee benefits.
To simplify relevant accounting treatment, the total net amounts of the aforesaid items shall beincluded in profit and loss for the current period or relevant asset costs.
35. Lease Liabilities
36. Provisions
(1) Recognition Standard for Provisions
If an obligation relevant to contingency met all the following conditions at the same time, theCompany will recognize it as provisions:
① The obligation is a present obligation assumed by the Company;
② The performance of the obligation is likely to cause economic benefits to flow out of theCompany;
③ The amount of the obligation can be reliably measured.
(2) Method of Measuring Provisions
The provisions shall be initially measured according to the optimal estimate of the necessaryexpenses for the performance of the current obligation, taking into consideration the risks related tocontingent events, uncertainty and the time value of currency. The carrying value of provisions shallbe rechecked on each balance sheet date. If there was concrete evidence to prove that the carryingvalue was not able to reflect the current optimal estimate, the carrying value shall be adjustedaccording to the current optimal estimate.
37. Share-based Payment
(1) Category of Share-based Payment
The Company's share-based payment includes cash-settled share-based payment andequity-settled share-based payment.
(2) Method of Determining the Fair Value of Equity Instruments
① For shares granted to employees, their fair value shall be measured at the market price ofthe Company's shares, and be adjusted in accordance with terms and conditions for granting shares(excluding vesting conditions other than market conditions).
② For share options granted to employees, the market price was inaccessible in many cases. Ifthere were no terms nor conditions similar to that of the exchange-traded option, the Company shallestimate the fair value of the granted options with the applicable model for option valuation.
(3) Grounds for Confirming the Optimal Estimation of Feasible Right EquityInstruments
On each balance sheet date within the vesting period, the Company shall make the bestestimate based on the subsequent information latest obtained such as the change in the number ofvested employees and revise the number of equity instruments that are expected to be vested inorder to make the best estimate of vested equity instruments.
(4) Accounting Treatment for the Implementation of Share-based Payment SchemesCash-settled share-based payment:
① For a cash-settled share-based payment, if the right can be exercised immediately after thegrant, the fair value of the liabilities borne by the Company shall, on the grant date, be included inthe relevant costs or expenses and the liabilities shall be increased accordingly. On each balancesheet date before settlement and on the settlement date, the fair value of the liabilities shall bere-measured and the changes shall be included in profit or loss.
② For a cash-settled share-based payment, if the right cannot be exercised until the vestingperiod ends or until the prescribed performance conditions are met, then on each balance sheet datewithin the vesting period, the services acquired in the current period shall, based on the bestestimate of the information about the exercisable right and at the fair value of the liabilities borneby the Company, be included in the costs or expenses and the corresponding liabilities.
Equity-settled share-based payment:
① For an equity-settled share-based payment in return for services of employees, if the rightcan be exercised immediately after the grant, the fair value of the equity instruments shall, on thegrant date, be included in the relevant costs or expenses and the capital reserve shall be increasedaccordingly.
② For an equity-settled share-based payment in return for employee services, if the rightcannot be exercised until the vesting period ends or until the prescribed performance conditions aremet, then on each balance sheet date within the vesting period, the services acquired in the currentperiod shall, based on the best estimate of the number of vested equity instruments, be included inthe costs or expenses and capital reserves at the fair value of the equities instruments on the grantdate
(5) Accounting Treatment for the Modification of Share-Based Payment SchemesWhen the Company modifies a share-based payment scheme, if the modification increases thefair value of the equity instruments granted, the increase in the services acquired shall be recognizedaccordingly according to the increase in the fair value of the equity instruments; if the modificationincreases the number of equity instruments granted, the fair value of the increased equityinstruments shall be recognized accordingly as the increase in the services acquired. The increase inthe fair value of the equity instruments refers to the difference between the fair values of the equityinstruments before and after the modification on the modification date. If the modification reducesthe total fair value of the share-based payment or any other method not conducive to the employeesis adopted to modify the terms and conditions of the share-based payment scheme, the accountingtreatment of the services acquired would continue, as if such change had never occurred, unless theCompany cancels some or all of the granted equity instruments.
(6) Accounting Treatment for the Termination of Share-Based Payment SchemesIf the Company canceled the granted equity instruments or settles the granted equityinstruments (not including those canceled due to failure to meet vesting conditions) during thevesting period:
① The cancellation or settlement shall be processed as the vested right and the amount to berecognized within the remaining vesting period originally shall be recognized immediately.
② All payments made to employees at the time of cancellation or settlement was treated as
payments for equity repurchase, and the proportion of the repurchase amount above the fair value ofthe equity instrument on the repurchase date was included in the expenses for the current period.If the Company repurchased an equity instrument in which the exercisable right has beenexercised, its owners' equity was reduced; the proportion of the repurchase amount above the fairvalue of the equity instrument on the repurchase date was included in the profit or loss for thecurrent period.
38. Preference Shares, Perpetual Bonds and Other Financial Instruments
39. Revenue
The Company shall comply with the disclosure requirements of the Guidelines No. 6 of Shenzhen Stock Exchange on IndustryInformation Disclosure -- Listed Companies Engaging in Home Furnishing and Decoration Business.Revenue recognition principles and measurement methodsApplicable from 1 January 2020
(1) General Principles
Revenue is the total inflow of economic benefits generated in the Company's day-to-dayactivities that will result in an increase in shareholders' equity and are unrelated to the capitalcontributed by shareholders.The Company shall recognize revenue when the performance obligations under the contractsare fulfilled, that is, when the customers obtain the control of related goods. Obtaining control ofrelated goods refers to that customers can control the use of the goods and obtain almost all theeconomic benefits from the goods.If a contract contains two or more performance obligations, the Company shall, on theinception date of the contract, allocate the transaction price to each performance obligation inaccordance with the relative proportion of the stand-alone selling price of the goods or servicespromised by each performance obligation, and measure the revenue on the basis of the transactionprice allocated to each performance obligation.
Transaction price is the amount of consideration to which the Company expects to be entitledin exchange for transferring goods or services to a customer, excluding amounts collected on behalfof third parties. When determining a contract transaction price, if there is a variable consideration,the Company shall determine the best estimate of the variable consideration based on the expectedvalue or the most likely amount, and recognize the transaction price only to the extent that it ishighly probable that a significant reversal in the amount of cumulative revenue recognized will notoccur when the relevant uncertainty is resolved. If a contract contains a significant financingcomponent, the Company will determine the transaction price on the basis of the amount payable incash when the customer obtains control of the goods, and use the effective interest method toamortize the difference between the transaction price and the contract consideration during thecontract period. If the interval between the transfer of control and the payment by the customer doesnot exceed one year, the Company will not consider the financing component therein.
If one of the following conditions is met, it is an obligation performed within a certain periodof time; otherwise, it is treated as performed at a point in time:
① The customer simultaneously received and consumed the benefits provided by theCompany's performance as the Company performed obligation.
② The customer could control the goods as they are created during the Company'sperformance.
③ The goods produced by the Company's performance had no alternative use, and theCompany had the right to collect payment for performance completed to date during the entirecontract period.
For a performance obligation performed within a certain period of time, the Companyrecognized revenue in accordance with the progress of performance during that period, except whenthe progress could not be reasonably determined. The Company determined the progress of theperformance of the service provided in accordance with the input method (or output method). Whenthe performance progress could not be reasonably determined and the Company's incurred costswere expected to be compensated, the revenue was recognized according to the amount of theincurred costs until the performance progress could be reasonably determined.
For a performance obligation performed at a certain point in time, the Company recognizedrevenue at the point when the customer obtained control of the relevant goods. When judgingwhether the customer has obtained control of goods or services, the Company considered thefollowing indicators:
① The Company had a present right to receive payment for the goods or services, i.e., thecustomer had a present obligation to pay for the goods.
② The Company had transferred the legal title of the goods to the customer, i.e., the customerhad obtained the legal title of the goods.
③ The Company had transferred physical possession of the goods to the customer, i.e., thecustomer had taken physical possession of the goods.
④ The Company had transferred primary risks and rewards of ownership of the goods to thecustomer, i.e., the customer had obtained the primary risks and rewards of ownership of the goods.
⑤ The customer had accepted the goods.
(2) Specific Methods
The specific methods of the Company's revenue recognition are as follows:
In the construction and decoration business, since the customer could control the assets underconstruction during the obligation performance of the Company, the Company recognized them as aperformance obligation performed within a certain period, and recognized revenue in accordancewith the progress of performance, except when the progress could not be reasonably determined.The Company determined the progress of the performance of the service provided based on theincurred costs in accordance with the input method. When the performance progress could not bereasonably determined and the Company's incurred costs were anticipated to be compensated, therevenue was recognized according to the amount of the incurred costs until the performance
progress could be reasonably determined. If the contract cost could not be recovered, it wasrecognized as the current cost immediately when incurred, and no contract revenue was recognized.If the aggregate cost of the contract was likely to exceed the gross revenue, an anticipated loss ofthe contract was formed, included in provisions, and recognized as the current cost.
In the merchandise sale business, the sale contract between the Company and the customercontains the performance obligation for the transfer of goods such as building decoration materials,which belongs to the performance obligation at a point in time. The Company had delivered thegoods to the customer in accordance with the contract and the customer had accepted the goods.The payment had been recovered or the receipt voucher had been obtained, and the relevanteconomic benefits were likely to flow in. The customer had obtained control of the relevant goods.
The following revenue accounting policies are applicable for 2019 and the prior years.
(1) Sales Revenue
The revenue was recognized when the Company had transferred the primary risks and rewardsof the ownership of the goods to the acquirer, and neither reserved the continued management rightsusually associated with the ownership, nor effectively controlled the sold goods. The amount ofincome could be reliably measured, the economic benefits relevant to the transaction were likely toflow into the Company, and the relevant costs incurred or to be incurred could be reliably measured.
(2) Revenue from Provided Services
① The results of the provided services could be reliably estimated
If the results of the transaction of the provided services could be reliably estimated on thebalance sheet date, the percentage of completion method was used to recognize the revenue fromprovided services.
The results of the provided services could be reliably estimated only when the followingconditions are met at the same time:
A. The amount of revenue could be reliably measured.
B. The relevant economic benefits were likely to flow into the Company.
C. The completion schedule of the transaction could be reliably determined.
D. The cost incurred or to be incurred during the transaction could be reliably measured.
The Company determined the completion schedule of the service transaction in accordancewith the proportion of the incurred costs to the total budgeted costs. When the Company's servicehad not been completed, on the balance sheet date, the service revenue in the current period wasrecognized in accordance with the amount of the contract amount multiplied by the completionschedule after deducting the accumulated service revenue from the previous accounting period; atthe same time, the service costs incurred in the current period was carried forward. If the servicehad been completed and had not yet been finally settled, the service revenue in the current periodwhen the service was completed was recognized at the amount after deducting the accumulatedrevenue from the provided service in the previous accounting period from the contract amount; atthe same time, the service costs incurred in the current period was carried forward. The differencebetween the final settlement amount and the contract amount at the time of final settlement was
adjusted at the final settlement.
② The results of the provided services could not be reliably estimated.If the results of the services provided by the Company could not be reliably estimated on thebalance sheet date, the situations were dealt with as follows:
A. If the service cost incurred was anticipated to be compensated, the service revenue wasrecognized at the amount of service cost incurred, and the service cost was carried forward at thesame amount.B. If the service cost incurred was not anticipated to be compensated, the service cost incurredwas included in profit or loss, and no service revenue was recognized.
(3) Revenue from the Transfer of Asset Use Rights
The Company recognized revenue when the economic benefits relevant to the transaction werelikely to flow into the Company and the amount of revenue could be reliably measured.
40. Government Grants
(1) Recognition of Government Grants
Government grants were recognized if the following conditions were met simultaneously:
① The Company could meet the conditions on government grants;
② The Company could receive government grants.
(2) Measurement of Government Grants
Government grants were measured at the amount received or receivable if they were monetaryassets. Non-monetary government grants were measured at fair value; if the fair value could not bereliably obtained, they were measured at the nominal amount.
(3) Accounting Processing of Government Grants
① Government grants related to assets
The government grants obtained by the Company for acquisition and construction or to formlong-term assets in other ways were classified as government grants related to assets. Governmentgrants related to assets were recognized as deferred income, and were included in profit or loss instages in accordance with a reasonable and systematic method during the useful life of theunderlying assets. Government grants measured at nominal amount were directly recognized asprofit or loss for the current period. If the underlying assets were sold, transferred, scrapped, ordamaged before the end of the useful life, the unallocated balance of the relevant deferred incomewas transferred to the profit or loss for the period of assets disposal.
② Government grants related to income
Government grants other than government grants related to assets were classified asgovernment grants related to income. Government grants related to income were accounted for inaccordance with the following regulations based on the situation:
If the grant was used to compensate the Company's related costs or losses in subsequentperiods, it was recognized as deferred income, and was included in the profit or loss for the currentperiod during the period when the related costs or losses were recognized;If the grant was used to compensate the Company's related cost or losses incurred, it wasincluded in the profit or loss for the current period directly.For government grants containing parts related to assets and parts related to income at thesame time, the different parts were accounted for separately; those that were difficult to distinguishwere classified as government grants related to income as a whole.
Government grants related to the day-to-day activities of the Company was included in otherincome in accordance with the substance of economic activities. Government grants not related tothe day-to-day activities of the Company was included in non-operating income and expenses.
③ Policy loan interest subsidies
If the fiscal system allocated the funds of interest subsidies to the lending bank, and thelending bank provided loans to the Company at a policy prime interest rate, the actual loan amountreceived was recognized as the book value of the loan, and the relevant borrowing costs wascalculated in accordance with the loan principal and the policy prime interest rate.
If the fiscal system allocated the funds of interest subsidies to the Company directly, theCompany reduced the corresponding interest subsidies against relevant borrowing costs.
④ Refund of government grants
When the recognized government grants needed to be refunded, if the carrying value of therelevant asset was reduced at the initial recognition, the carrying value of the asset was adjusted; ifthere was a relevant deferred income balance, the carrying balance of the relevant deferred incomewas reduced, and the excess was included in the profit or loss for the current period; in other cases,the refund was included in the profit or loss for the current period directly.
41. Deferred Income Tax Assets/Deferred Income Tax Liabilities
Based on the temporary differences between the carrying value of assets and liabilities on thebalance sheet date and the tax basis, the Company generally recognizes and measures deferredincome tax liabilities or deferred income tax assets in accordance with the impact of taxabletemporary differences or deductible temporary differences on income tax through the balance sheetliability method. The Company did not discount deferred income tax assets and deferred income taxliabilities.
(1) Recognition of Deferred Income Tax Assets
For deductible temporary differences, the impact on income tax was calculated at the incometax rate during the anticipated reverse, and the impact was recognized as deferred income tax assets,but limited by the amount of future taxable income that the Company was likely to obtain to deductthe deductible temporary differences, deductible losses, and tax deductions.
The impact of deductible temporary differences on income tax due to the initial recognition of
assets or liabilities was not recognized as deferred income tax assets in transactions or matters thathad the following characteristics at the same time:
① The transaction was not a business combination;
② Neither accounting profits nor taxable income (or deductible losses) were affected whenthe transaction occurred.Only when the deductible temporary differences related to investments in subsidiaries,affiliated companies and joint ventures met the following two conditions at the same time, itsimpact on income tax was recognized as deferred income tax assets:
① It was probable that the temporary difference would reverse in the foreseeable future;
② It was likely to obtain taxable income in the future that could be used to offset against thedeductible temporary differences.
On the balance sheet date, if there was conclusive evidence that it was probable that sufficienttaxable income would be available to offset against the deductible temporary differences in thefuture, the deferred income tax assets that had not been recognized in the previous periods wererecognized.
On the balance sheet date, the Company reviewed the carrying value of deferred income taxassets. If it was no longer probable that sufficient taxable profits would be available in the future toutilize the benefit of deferred tax assets, the carrying value of deferred income tax assets waswritten down. Such write-downs was reversed when it became probable that sufficient taxableprofits would be available.
(2) Recognition of Deferred Income Tax Liabilities
The impact of all taxable temporary differences on income tax of the Company was measuredat the income tax rate during the anticipated reverse, and the impact was recognized as deferredincome tax liabilities, except in the following situations:
① The impact of taxable temporary differences arising from the following transactions oritems on income tax was not recognized as deferred income tax liabilities:
A. Initial recognition of goodwill;
B. The initial recognition of assets or liabilities arising from a transaction with the followingcharacteristics: the transaction was not a business combination, and it affected neither accountingprofits nor taxable income or deductible losses when the transaction occurred.
② For the Company's taxable temporary differences related to investments in subsidiaries,joint ventures and affiliated companies, the amount of its impact on income tax shall be generallyrecognized as deferred income tax liabilities, except the following two conditions are met at thesame time:
A. The Company could control the temporary difference reversal time;
B. It was probable that the temporary difference would not reverse in the foreseeable future.
(3) Recognition of Deferred Income Tax Liabilities or Assets Involved in SpecialTransactions or Events
① Deferred income tax liabilities or assets involved in business combinationsFor the taxable temporary differences or deductible temporary differences arising frombusiness combinations not under common control, adjustments were made to the goodwillrecognized in business combinations along with the recognition of deferred income tax liabilities ordeferred income tax assets and the related deferred income tax expense (or income).
② Items directly included in owners' equity
The income tax for the current period and deferred income tax relating to the transactions orevents directly included in owners' equity were included in owners' equity. The transactions orevents included in owners' equity relating to the impact of temporary difference on income taxincluded: other comprehensive income such as changes in the fair value of other debt investments,adjustments to retained income brought forward through the changes in accounting policies usingretrospective application or modification of major accounting error in the previous periods usingretrospective restatement and hybrid financial instruments that include liabilities and equityincluded in owners' equity at initial recognition.
③ Recoverable loss and tax credit
A. Recoverable loss and tax credit arising from the Company's operations
Deductible loss refers to the loss calculated and recognized in accordance with the tax lawstipulates that can be compensated by taxable revenue. The undistributed deficit (deductible loss)and tax credit in the following years that could be carried forward in accordance with the tax lawstipulates were recognized as deductible temporary differences. When it was probable thatsufficient taxable profits would be available for recoverable losses or tax credit in the future, thecorresponding deferred income tax assets were recognized to the extent of the expected taxablerevenue together with deducting the income tax expense in the profit statement for the currentperiod.
B. The undistributed deficit of the acquiree arising from business combinations that can becompensated
In business combinations, the deductible temporary difference of the acquiree acquired by theCompany, which doesn't meet the conditions for recognition of deferred income tax assets, was notrecognized. Within 12 months after the date of acquisition, if new or more information wasavailable and suggested that the relevant information of the date of acquisition already existed, andthe deductible temporary differences of the acquiree at the date of acquisition was expected to bringeconomic benefits, the related deferred income tax assets were recognized and goodwill waseliminated. If goodwill was not sufficient for elimination, the shortfall was recognized as the profitor loss for the current period. Excluding the foregoing circumstances, the deferred income tax assetsrelating to business combinations were recognized and included in the profit or loss for the currentperiod.
④ Temporary difference arising from combination and offsetting
If a temporary difference arose between the carrying value of assets and liabilities in theconsolidated balance sheet and their tax bases in the taxable entity to which they belong as a resultof offsetting unrealized internal sales profit or loss, the deferred income tax assets or deferred
income tax liabilities were recognized in the consolidated balance sheet, while adjusting the incometax expense in the consolidated profit statement, except for the transactions or events directlyincluded in owners' equity and the deferred income tax relating to business combinations.
⑤ Equity-settled share-based payment
If the expenditure related to share-based payment could be deducted before tax under the taxlaw stipulates, during the period in which the cost was recognized in accordance with theaccounting requirements, the Company calculated and determined the basis of taxation andtemporary difference based on the estimated amount that could be deducted before tax according tothe information available at the end of the accounting period, and recognized the related deferredincome tax if it met the conditions for recognition. Among which the estimated amount that can bededucted before tax in the future exceeded the costs relating to share-based payment recognized inaccordance with the accounting requirements, the surplus impact of income tax shall be directlyincluded in owners' equity.
42. Leases
(1) Accounting Treatment Method for Operating Lease
① When acting as a lessee of operating lease, the Company included the rental expenditure ofoperating lease in profit or loss for the current period based on the straight-line method or inaccordance with the consumption of operating lease in all stages during the lease term. If the lessorprovided leases with a rent-free period, the Company allocated the total rent in the entire lease termincluding the rent-free period based on the straight-line method or in accordance with theconsumption of operating lease, and recognized the rental expense and the corresponding liabilitiesin the rent-free period. If the lessor undertook partial expenses of the lessee, the Company allocatedthe balance of rental expenses within the lease term after deducting the expenses from the totalrental expense.
The initial direct cost was included in profit or loss for the current period. If there was anyagreement or rent, it was included in profit or loss for the current period when actually incurred.
② When acting as a lessor of operating lease, the Company recognized the rent received asincome within the lease term based on the straight-line method. If the lessor provided leases with arent-free period, the lessor allocated the total rent in the entire lease term including the rent-freeperiod based on the straight-line method or any other reasonable method, and also recognized rentalincome in the rent-free period. If the lessor undertook partial expenses of the lessee, the Companyallocated the balance of rental income within the lease term after deducting the expenses from thetotal rental income.
The initial direct cost was included in profit or loss for the current period. If it was a largeamount, it shall be capitalized and included in stages in profit or loss for the current period withinthe entire operating lease term on the same basis with the recognition of rental income. If there wasany agreement or rent, it was included in profit or loss for the current period when actually incurred.
(2) Accounting Treatment of Finance Lease
① When the Company acted as the lessee of the finance lease, the lower of the fair value ofthe leased assets and the present value of the minimum lease payment on the lease commencementdate was taken as the book value of the leased assets, the minimum lease payment was taken as thebook value of the long-term payables, and the difference thereof was taken as the unrecognizedfinancing expense. In each period of the lease term, the effective interest method was adopted toapportion, which was recognized as the current financing expense and included into the financecosts.
The initial direct expenses incurred was included in the value of the leased assets.
The Company adopted a depreciation policy consistent with its own depreciable assets duringthe accrual of the depreciation of the finance leased assets, and the depreciation period wasdetermined by the lease contract. If fixed asset could be reasonably ascertained that the ownershipof the asset leased was obtained by the expiration of the tenancy, the asset would be depreciatedover its useful life on the lease commencement date; if not, the asset would be depreciated over theshorter of the tenancy and the useful life of the leased asset.
② When the Company acted as the lesser of the finance lease, the sum of the minimum leasereceivable amount and the initial direct expense on the lease commencement date was taken as thereceivables of the finance lease amount and recorded in the long-term receivables of the balancesheet, and the unguaranteed residual value was recorded. The difference between the sum of theminimum lease receivable amount, initial direct expense and unguaranteed residual value and thesum of its present value was taken as unrealized financing revenue, which was recognized as leaserevenue in each period of the lease term by the effective interest method and included into otherbusiness revenue.
43. Other Important Accounting Policies and Accounting Estimates
Repurchase of the Company's shares
(1) If the Company had obtained approval to reduce the capital by acquiring the Company’sshares through legal procedures, the share capital was reduced in accordance with the total facevalue of the shares canceled, and the owners' equity was adjusted in accordance with the differencebetween the price paid for repurchasing the shares (including transaction costs) and the face valueof the shares. For the part exceeding the total face value, capital reserves (share capital premium),surplus reserves, and retained earnings were reduced sequentially. For the part below the total facevalue, the capital reserves (share capital premium) were increased.
(2) The shares repurchased by the Company had been managed as treasury shares before theywere canceled or transferred, and all expenses for repurchasing shares had been transferred to thecost of treasury shares.
(3) When treasury shares had been transferred, the part of the transfer income that was higherthan the cost of treasury shares increased capital reserves (share capital premium). The part that waslower than the cost of treasury shares reduced capital reserves (share capital premium), surplusreserves, retained earnings.
44. Changes in Important Accounting Policy and Accounting Estimates
(1) Key Changes to Accounting Policies
√ Applicable □N/A
| Contents of and reasons for the changes to accounting policies | Approval procedure | Remarks |
| The New Revenue Standards were implemented from January 1, 2020. | Deliberated and approved at the 5th Meeting of the 6th Board of Directors on April 23, 2020 |
① The Ministry of Finance issued the Accounting Standard for Business Enterprises No. 14:
Revenues (C.K. [2017] No. 22) (hereinafter referred to as "New Revenue Standards") on 5 July2017. Domestic listed companies were required to implement the New Revenue Standards from 1January 2020. The Company implemented the New Revenue Standards from 1 January 2020, andadjusted the relevant content of the accounting policy, as detailed in Note III. 28.Under the requirements of the New Revenue Standards, the amount of retained earnings andother relevant items in the financial statements at the beginning of the first year of implementation(i.e. 1 January 2020) was adjusted in accordance with the cumulative impact of the firstimplementation of the standard, and the comparable period information was not adjusted. Whenimplementing the New Revenue Standards, the Company only adjusted the cumulative impact ofcontracts that had not been completed on the first implementation date.
② The Ministry of Finance issued the Interpretation No. 13 of the Accounting Standard forBusiness Enterprises on 10 December 2019. The Company implemented this interpretation on 1January 2020, and the previous years were not included retrospectively.
The cumulative impact of the above accounting policies is as follows:
Due to the implementation of the New Revenue Standards, the Company's consolidatedfinancial statements were adjusted accordingly. As at 1 January 2020, accounts receivable wereRMB-9,983,775,360.05, contract assets RMB10,177,545,958.11, deferred income tax assetsRMB-3,343,794.18, contract liabilities RMB896,828,971.85, advances from customersRMB-790,724,499.17, and other current liabilities RMB45,145,633.54. The relevant adjustmentsaffected the equity of the Company as the parent’s shareholders in the Company’s consolidatedfinancial statements at RMB36,125,919.30, of which surplus reserves were RMB1,761,383.21, andretained earnings were RMB34,339,607.55. The amount of non-controlling interests affected wasRMB3,075,706.90. The financial statements of the Company as the parent were adjustedaccordingly. As at 1 January 2020, accounts receivable were RMB-6,521,147,899.75, contractassets RMB6,541,870,055.17, deferred income tax assets RMB-3,108,323.31, contract liabilitiesRMB299,820,916.43, advances from customers RMB-325,775,470.52 and other current liabilitiesRMB25,954,554.09. The relevant adjustments affected the equity of the Company as the parent'sshareholders in the financial statements at RMB17,613,832.11, of which surplus reserves wereRMB1,761,383.21, retained earnings were RMB15,852,448.90.
The above accounting policy changes were deliberated and approved at the 5th Meeting of the6th Board of Directors on 23 April 2020.
(2) Changes in Significant Accounting Estimates
□ Applicable √ Not applicable
(3) Adjustments to Financial Statement Items at the Beginning of the Year (2020) when the NewAccounting Standards Governing Revenue and Leases Were First AdoptedApplicable.Indicate whether any balance sheet item at the beginning of the year requires adjustment.
√ Yes □ Not
Consolidated balance sheet:
Unit: RMB
| Item | 31 December 2019 | 1 January 2020 | Adjustment |
| Current assets： | |||
| Monetary assets | 6,077,758,993.30 | 6,077,758,993.30 | |
| Settlement reserve | |||
| Loans to other banks and financial institutions | |||
| Held-for-trading financial assets | 1,694,650,654.74 | 1,694,650,654.74 | |
| Derivative financial assets | |||
| Notes receivable | 4,365,558,567.45 | 4,365,558,567.45 | |
| Accounts receivable | 22,003,095,138.84 | 12,019,319,778.79 | -9,983,775,360.05 |
| Receivables financing | 261,530,861.26 | 261,530,861.26 | |
| Prepayments | 287,524,499.91 | 287,524,499.91 | |
| Premiums receivable | |||
| Reinsurance receivables | |||
| Receivable reinsurance contract reserve | |||
| Other receivables | 248,803,300.64 | 248,803,300.64 | |
| Including: Interest receivable | |||
| Dividends receivable |
| Financial assets purchased under resale agreements | |||
| Inventories | 101,344,129.28 | 101,344,129.28 | |
| Contract assets | 10,177,545,958.11 | 10,177,545,958.11 | |
| Assets held for sale | |||
| Current portion of non-current assets | 31,381,819.35 | 31,381,819.35 | |
| Other current assets | 116,384,039.46 | 116,384,039.46 | |
| Total current assets | 35,188,032,004.23 | 35,381,802,602.29 | 193,770,598.06 |
| Non-current assets： | |||
| Loans and advances to customers | |||
| Debt investments | |||
| Other debt investments | |||
| Long-term receivables | 1,438,636,412.30 | 1,438,636,412.30 | |
| Long-term equity investments | 22,838,423.66 | 22,838,423.66 | |
| Investments in other equity instruments | |||
| Other non-current financial assets | 444,022,000.00 | 444,022,000.00 | |
| Investment property | 78,250,561.70 | 78,250,561.70 | |
| Fixed assets | 910,175,452.03 | 910,175,452.03 | |
| Construction in progress | 71,905,579.25 | 71,905,579.25 | |
| Productive living assets | |||
| Oil and gas assets | |||
| Right-of-use assets | |||
| Intangible assets | 109,105,821.09 | 109,105,821.09 | |
| Development costs | |||
| Goodwill | 435,818,777.74 | 435,818,777.74 | |
| Long-term prepaid expense | 157,443,245.55 | 157,443,245.55 | |
| Deferred income tax assets | 415,401,109.41 | 412,057,315.23 | -3,343,794.18 |
| Other non-current assets | 201,762,268.01 | 201,762,268.01 |
| Total non-current assets | 4,285,359,650.74 | 4,282,015,856.56 | -3,343,794.18 |
| Total assets | 39,473,391,654.97 | 39,663,818,458.85 | 190,426,803.88 |
| Current liabilities： | |||
| Short-term borrowings | 875,691,128.75 | 875,691,128.75 | |
| Borrowings from the central bank | |||
| Loans from other banks and financial institutions | |||
| Held-for-trading financial liabilities | |||
| Derivative financial liabilities | |||
| Notes payable | 4,602,520,476.92 | 4,602,520,476.92 | |
| Accounts payable | 13,279,769,499.13 | 13,279,769,499.13 | |
| Advances from customers | 790,724,499.17 | -790,724,499.17 | |
| Contract liabilities | 896,828,971.85 | 896,828,971.85 | |
| Financial assets sold under repurchase agreements | |||
| Customer deposits and deposits from other banks and financial institutions | |||
| Payables for acting trading of securities | |||
| Payables for underwriting of securities | |||
| Employee benefits payable | 1,748,073,732.96 | 1,748,073,732.96 | |
| Taxes and levies payable | 256,606,598.88 | 256,606,598.88 | |
| Other payables | 593,947,128.96 | 593,947,128.96 | |
| Including: Interest payable | |||
| Dividends payable | 6,620,000.00 | 6,620,000.00 | |
| Fees and commissions payable | |||
| Reinsurance payables |
| Liabilities directly associated with assets held for sale | |||
| Current portion of non-current liabilities | 22,000,000.00 | 22,000,000.00 | |
| Other current liabilities | 1,062,569,828.91 | 1,107,715,462.45 | 45,145,633.54 |
| Total current liabilities | 23,231,902,893.68 | 23,383,152,999.90 | 151,250,106.22 |
| Non-current liabilities： | |||
| Insurance contract reserve | |||
| Long-term borrowings | 838,561,722.30 | 838,561,722.30 | |
| Bonds payable | |||
| Including: Preference shares | |||
| Perpetual bonds | |||
| Lease liabilities | |||
| Long-term payables | |||
| Long-term employee benefits payable | |||
| Provisions | |||
| Deferred income | |||
| Deferred income tax liabilities | 2,931,338.35 | 2,931,338.35 | |
| Other non-current liabilities | |||
| Total non-current liabilities | 841,493,060.65 | 841,493,060.65 | |
| Total liabilities | 24,073,395,954.33 | 24,224,646,060.55 | 151,250,106.22 |
| Owners’ equity： | |||
| Share capital | 2,676,408,689.00 | 2,676,408,689.00 | |
| Other equity instruments | |||
| Including: Preference shares | |||
| Perpetual bonds | |||
| Capital reserves | 342,175,389.87 | 342,175,389.87 | |
| Less: Treasury shares | 132,069,000.00 | 132,069,000.00 |
| Other comprehensive income | 57,504,092.23 | 57,504,092.23 | |
| Specific reserve | |||
| Surplus reserves | 1,358,670,354.99 | 1,360,431,738.20 | 1,761,383.21 |
| General reserve | |||
| Retained earnings | 10,853,403,316.80 | 10,887,742,924.35 | 34,339,607.55 |
| Total equity attributable to owners of the Company as the parent | 15,156,092,842.89 | 15,192,193,833.65 | 36,100,990.76 |
| Non-controlling interests | 243,902,857.75 | 246,978,564.65 | 3,075,706.90 |
| Total owners’ equity | 15,399,995,700.64 | 15,439,172,398.30 | 39,176,697.66 |
| Total liabilities and owners’ equity | 39,473,391,654.97 | 39,663,818,458.85 | 190,426,803.88 |
Notes to the adjustments:
Balance sheet of the Company as the parent:
Unit: RMB
| Item | 31 December 2019 | 1 January 2020 | Adjustment |
| Current assets： | |||
| Monetary assets | 3,236,414,236.21 | 3,236,414,236.21 | |
| Held-for-trading financial assets | 1,177,233,688.22 | 1,177,233,688.22 | |
| Derivative financial assets | |||
| Notes receivable | 2,720,966,717.92 | 2,720,966,717.92 | |
| Accounts receivable | 15,070,584,579.15 | 8,549,436,679.40 | -6,521,147,899.75 |
| Receivables financing | 227,611,894.42 | 227,611,894.42 | |
| Prepayments | 67,179,176.34 | 67,179,176.34 | |
| Other receivables | 369,029,544.53 | 369,029,544.53 | |
| Including: Interest receivable | |||
| Dividends receivable | 40,000,000.00 | 40,000,000.00 | |
| Inventories | 2,108,652.15 | 2,108,652.15 | |
| Contract assets | 6,541,870,055.17 | 6,541,870,055.17 | |
| Assets held for sale |
| Current portion of non-current assets | |||
| Other current assets | 141,935.84 | 141,935.84 | |
| Total current assets | 22,871,270,424.78 | 22,891,992,580.20 | 20,722,155.42 |
| Non-current assets： | |||
| Debt investments | |||
| Other debt investments | |||
| Long-term receivables | |||
| Long-term equity investments | 2,450,189,252.52 | 2,450,189,252.52 | |
| Investments in other equity instruments | |||
| Other non-current financial assets | 444,022,000.00 | 444,022,000.00 | |
| Investment property | 92,392,476.23 | 92,392,476.23 | |
| Fixed assets | 725,719,586.11 | 725,719,586.11 | |
| Construction in progress | 50,987,676.95 | 50,987,676.95 | |
| Productive living assets | |||
| Oil and gas assets | |||
| Right-of-use assets | |||
| Intangible assets | 31,263,899.40 | 1,263,899.40 | |
| Development costs | |||
| Goodwill | |||
| Long-term prepaid expense | 36,115,310.40 | 36,115,310.40 | |
| Deferred income tax assets | 269,961,767.22 | 266,853,443.91 | -3,108,323.31 |
| Other non-current assets | 90,447,503.15 | 90,447,503.15 | |
| Total non-current assets | 4,191,099,471.98 | 4,187,991,148.67 | -3,108,323.31 |
| Total assets | 27,062,369,896.76 | 27,079,983,728.87 | 17,613,832.11 |
| Current liabilities： | |||
| Short-term borrowings | 454,870,134.35 | 454,870,134.35 | |
| Held-for-trading financial liabilities | |||
| Derivative financial liabilities |
| Notes payable | 2,524,818,850.29 | 2,524,818,850.29 | |
| Accounts payable | 8,227,541,063.77 | 8,227,541,063.77 | |
| Advances from customers | 325,775,470.52 | -325,775,470.52 | |
| Contract liabilities | 299,820,916.43 | 299,820,916.43 | |
| Employee benefits payable | 1,377,238,718.10 | 1,377,238,718.10 | |
| Taxes and levies payable | 94,928,342.32 | 94,928,342.32 | |
| Other payables | 489,198,564.99 | 489,198,564.99 | |
| Including: Interest payable | |||
| Dividends payable | 6,620,000.00 | 6,620,000.00 | |
| Liabilities directly associated with assets held for sale | |||
| Current portion of non-current liabilities | |||
| Other current liabilities | 810,122,476.37 | 836,077,030.46 | 25,954,554.09 |
| Total current liabilities | 14,304,493,620.71 | 14,304,493,620.71 | |
| Non-current liabilities： | |||
| Long-term borrowings | |||
| Bonds payable | |||
| Including: Preference shares | |||
| Perpetual bonds | |||
| Lease liabilities | |||
| Long-term payables | |||
| Long-term employee benefits payable | |||
| Provisions | |||
| Deferred income | |||
| Deferred income tax liabilities | 185,053.23 | 185,053.23 | |
| Other non-current |
| liabilities | |||
| Total non-current liabilities | 185,053.23 | 185,053.23 | |
| Total liabilities | 14,304,678,673.94 | 14,304,678,673.94 | |
| Owners’ equity： | |||
| Share capital | 2,676,408,689.00 | 2,676,408,689.00 | |
| Other equity instruments | |||
| Including: Preference shares | |||
| Perpetual bonds | |||
| Capital reserves | 437,549,701.78 | 437,549,701.78 | |
| Less: Treasury shares | 132,069,000.00 | 132,069,000.00 | |
| Other comprehensive income | |||
| Specific reserve | |||
| Surplus reserves | 1,358,670,354.99 | 1,360,431,738.20 | 1,761,383.21 |
| Retained earnings | 8,417,131,477.05 | 8,432,983,925.95 | 15,852,448.90 |
| Total owners’ equity | 12,757,691,222.82 | 12,775,305,054.93 | 17,613,832.11 |
| Total liabilities and owners’ equity | 27,062,369,896.76 | 27,079,983,728.87 | 17,613,832.11 |
Notes to the adjustments:
(4) Retrospective Adjustments to Comparative Data of the Prior Period due to the First Adoption of theNew Accounting Standards Governing Revenue and Leases since 2020
□ Applicable √ Not applicable
45. Other Information
VI Taxation
1. Principal Taxes and Tax Rates
| Tax | Tax base | Tax rate |
| Value added tax (VAT) | Taxable revenue | 13%, 9%, 6%, and 3% |
| Urban maintenance and construction tax | Circulation tax | 7% |
| Corporate income tax | Taxable income | 25%, 15%, and 20% |
| Education surcharges | Circulation tax | 5% |
Taxpayers with different corporate income tax rates are as follows:
| Taxpayer | Income tax rate |
| HBA | 21.00%, 8.84%, 6.00%, 5.50%, and 19.00% |
| Gold Mantis (Vietnam) | 20.00% |
| Gold Mantis International | 16.50% |
| Russia Gold Mantis | 15.50% |
| Gold Mantis (HK) | 16.50% |
| Gold Mantis (Cambodia) | 20.00% |
| Gold Mantis International Development | 10.00% |
| Gold Mantis (Lanka) | 28.00% |
| GMI Construction | 30.00% |
| Gold Mantis (CNMI) | 21.00% |
| M+ | 10.00% |
2. Tax Preferences
1. Tax Preferences
(1) Income tax
On 2 December 2020, the Company was recognized as a high-tech enterprise by the JiangsuProvincial Department of Science and Technology, the Department of Finance of Jiangsu Province,and Jiangsu Provincial Tax Service of State Taxation Administration. From 2020 to 2022, theCompany revenue tax shall be levied at a reduced rate of 15%.
On 2 December 2020, Gold Mantis Curtain Wall, a wholly-owned subsidiary of the Company,was recognized as a high-tech enterprise by the Jiangsu Provincial Department of Science andTechnology, the Department of Finance of Jiangsu Province, and Jiangsu Provincial Tax Service ofState Taxation Administration. From 2020 to 2022, the revenue tax of Gold Mantis Curtain Wall shallbe levied at a reduced rate of 15%.
On 2 December 2020, Meiruide, a wholly-owned subsidiary of the Company, was recognized asa high-tech enterprise by the Jiangsu Provincial Department of Science and Technology, theDepartment of Finance of Jiangsu Province, and Jiangsu Provincial Tax Service of State TaxationAdministration. From 2020 to 2022, the revenue tax of Meiruide shall be levied at a reduced rate of15%.
On 2 December 2020, Refined Decoration & Technology, a subsidiary of Gold MantisPrefabricated Construction Technology, which is a holding subsidiary of the Company, wasrecognized as a high-tech enterprise by the Jiangsu Provincial Department of Science andTechnology, the Department of Finance of Jiangsu Province, and Jiangsu Provincial Tax Service ofState Taxation Administration. From 2020 to 2022, the revenue tax of Refined Decoration &Technology shall be levied at a reduced rate of 15%.
On 6 December 2019, Gold Mantis Landscape, a wholly-owned subsidiary of the Company, wasrecognized as a high-tech enterprise by the Jiangsu Provincial Department of Science andTechnology, the Department of Finance of Jiangsu Province, and Jiangsu Provincial Tax Service ofState Taxation Administration. From 2019 to 2021, the revenue tax of Gold Mantis Landscape shallbe levied at a reduced rate of 15%.
In accordance with the Notice on Implementing Inclusive Tax Credit Policies for Small andMicro Enterprises (C.SH. [2019] No. 13) from the Ministry of Finance and the State TaxationAdministration, from 1 January 2019 to 31 December 2021, the annual taxable revenue of smalllow-profit enterprises with a value of less than RMB1 million (including RMB1 million) shall beincluded in the taxable revenue at a reduced rate of 25%, and the corporate revenue tax shall belevied at the tax rate of 20%. The part that the annual taxable revenue exceeds RMB1 million butnot more than RMB3 million shall be included in the taxable revenue at a reduced rate of 50%, andthe corporate revenue tax shall be levied at the tax rate of 20%. Suzhou Meiruide ConstructionDecoration Co., Ltd., a subsidiary of Meiruide, belonged to a small low-profit enterprise this yearand enjoyed this preferential tax policy.
(2) Value-added tax
In accordance with the Notice on Policies Relevant to Deepening VAT Reform (Notice No. 39of 2019 of the Ministry of Finance, the State Taxation Administration, and the GeneralAdministration of Customs) and the Notice on Items Relevant to Deepening VAT Reform (NoticeNo. 14 of 2019 of the State Taxation Administration), from 1 April 2019 to 31 December 2021,taxpayers of the production and living services industry shall be allowed to add 10% of the currentdeductible input tax to deduct the tax amount payable. The eligible subsidiaries of the Company,including Jinpu No. 9, Xi’an Jinchuang, Archi-Feeling Design, Home Decoration E-commerce,enjoyed the additional deduction policy of input tax.
3. Others
Other taxes were calculated and paid in accordance with relevant national and localregulations.
VII Notes to the Consolidated Financial Statements
1. Monetary Assets
Unit: RMB
| Item | Closing balance | Opening balance |
| Cash on hand | 1,518,895.79 | 2,317,047.77 |
| Bank deposits | 5,271,477,855.63 | 5,097,879,607.91 |
| Other monetary assets | 1,099,635,094.30 | 977,562,337.62 |
| Total | 6,372,631,845.72 | 6,077,758,993.30 |
| Including: Total amount deposited overseas | 545,795,284.34 | 480,397,106.87 |
| Total amount of which the use is restricted with respect to collateral, pledge, being frozen, etc. | 16,564,171.89 | 25,511,610.47 |
Other notes:
Of the closing balance of bank deposits, term deposits amounted to RMB316,061,411.05, andthe total frozen amount with respect to lawsuits stood at RMB16,564,171.89. Of the closing balanceof other monetary assets, security deposits for bank acceptance notes amounted toRMB965,388,644.75, security deposits for bank guarantees amounted to RMB126,167,670.25, andsecurity deposits for salaries of peasant-workers amounted to RMB6,820,776.65. Other than theaforesaid, the closing balance of monetary assets contained no amounts of which the use wasrestricted with respect to collateral, pledge, being frozen, etc. and which were exposed to a potentialdefault risk.
2. Held-for-trading Financial Assets
Unit: RMB
| Item | Closing balance | Opening balance |
| Financial assets at fair value through profit or loss | 2,172,086,741.05 | 1,694,650,654.74 |
| Including: | ||
| Investments in debt instruments | 2,172,086,741.05 | 1,694,650,654.74 |
| Including: | ||
| Total | 2,172,086,741.05 | 1,694,650,654.74 |
Other notes:
3. Derivative Financial Assets
Unit: RMB
| Item | Closing balance | Opening balance |
Other notes:
4. Notes Receivable
(1) Notes Receivable by Type
Unit: RMB
| Item | Closing balance | Opening balance |
| Trade acceptance notes | 8,834,516,728.65 | 4,365,558,567.45 |
| Total | 8,834,516,728.65 | 4,365,558,567.45 |
Unit: RMB
| Type | Closing balance | Opening balance | ||||||||
| Gross amount | Allowance for doubtful account | Carrying amount | Gross amount | Allowance for doubtful account | Carrying amount | |||||
| Amount | Percentage | Amount | Allowance percentage | Amount | Percentage | Amount | Allowance percentage | |||
| Including: | ||||||||||
| Notes receivable for which the allowances for doubtful accounts are established on the grouping basis | 9,014,812,988.42 | 100.00% | 180,296,259.77 | 2.00% | 8,834,516,728.65 | 4,409,655,118.63 | 100.00% | 44,096,551.18 | 1.00% | 4,365,558,567.45 |
| Including: | ||||||||||
| Trade acceptance notes | 9,014,812,988.42 | 100.00% | 180,296,259.77 | 2.00% | 8,834,516,728.65 | 4,409,655,118.63 | 100.00% | 44,096,551.18 | 1.00% | 4,365,558,567.45 |
| Total | 9,014,812,988.42 | 100.00% | 180,296,259.77 | 2.00% | 8,834,516,728.65 | 4,409,655,118.63 | 100.00% | 44,096,551.18 | 1.00% | 4,365,558,567.45 |
Allowances for doubtful accounts established on the individual basis:
Unit: RMB
| Entity | Closing balance | |||
| Gross amount | Allowance for doubtful account | Allowance percentage | Reason for allowance | |
Allowances for doubtful accounts established on the grouping basis: RMB180,296,259.77
Unit: RMB
| Item | Closing balance | ||
| Gross amount | Allowance for doubtful account | Allowance percentage | |
| Trade acceptance notes | 9,014,812,988.42 | 180,296,259.77 | 2.00% |
| Total | 9,014,812,988.42 | 180,296,259.77 | -- |
Grouping basis:
Allowances for doubtful accounts established on the grouping basis:
Unit: RMB
| Item | Closing balance |
| Gross amount | Allowance for doubtful account | Allowance percentage |
Grouping basis:
Where allowances for doubtful notes receivable are established using the general model of expected credit loss, please discloseallowance information as other receivables.
□ Applicable √ Not applicable
(2) Allowances for Doubtful Accounts Established or Reversed in the Current Period
Allowances for doubtful accounts in the current period:
Unit: RMB
| Type | Opening balance | Change in the current period | Closing balance | |||
| Established | Reversed | Written off | Others | |||
| Allowances for doubtful trade acceptance notes | 44,096,551.18 | 136,199,708.59 | 180,296,259.77 | |||
| Total | 44,096,551.18 | 136,199,708.59 | 180,296,259.77 | |||
Significant reversed allowances for doubtful accounts in the current period:
□ Applicable √ Not applicable
(3) Notes Receivable in Pledge at the Period-End
Unit: RMB
| Item | Closing amount in pledge |
| Trade acceptance notes | 1,300,000.00 |
| Total | 1,300,000.00 |
(4) Notes Receivable that Were Endorsed or Discounted but Undue on the Balance Sheet Date at thePeriod-End
Unit: RMB
| Item | Closing derecognized amount | Closing un-derecognized amount |
| Trade acceptance notes | 1,901,286,639.74 | |
| Total | 1,901,286,639.74 |
(5) Notes Receivable Transferred to Accounts Receivable due to Default of the Notes Issuer at thePeriod-End
Unit: RMB
| Item | Closing amount transferred to accounts receivable |
Other notes:
There were no notes receivable that were transferred to accounts receivable due to default ofthe notes issuer at the period-end.
(6) Notes Receivable Written Off in the Current Period
Unit: RMB
| Item | Amount written off |
Significant notes receivable written off:
Unit: RMB
| Item | Nature of note receivable | Amount written off | Reason for write-off | Write-off procedure executed | Arising from a related-party transaction or not |
Notes:
No notes receivable were written off in the current period.
5. Accounts Receivable
(1) Accounts Receivable by Type
Unit: RMB
| Type | Closing balance | Opening balance | ||||||||
| Gross amount | Allowance for doubtful account | Carrying amount | Gross amount | Allowance for doubtful account | Carrying amount | |||||
| Amount | Percentage | Amount | Allowance percentage | Amount | Percentage | Amount | Allowance percentage | |||
| Accounts receivable for which the allowances for doubtful accounts are established on the individual basis | 262,941,258.37 | 1.70% | 232,409,201.69 | 88.39% | 30,532,056.68 | 199,710,854.38 | 1.45% | 168,875,917.79 | 84.56% | 30,834,936.59 |
| Including: | ||||||||||
| Accounts receivable for which the allowances for doubtful accounts are established on the | 15,207,667,497.55 | 98.30% | 1,720,409,597.66 | 11.31% | 13,487,257,899.89 | 13,526,505,454.79 | 98.55% | 1,538,020,612.59 | 11.37% | 11,988,484,842.20 |
| grouping basis | ||||||||||
| Including: | ||||||||||
| Group of non-related parties | 15,207,667,497.55 | 98.30% | 1,720,409,597.66 | 11.31% | 13,487,257,899.89 | 13,526,505,454.79 | 98.55% | 1,538,020,612.59 | 11.37% | 11,988,484,842.20 |
| Total | 15,470,608,755.92 | 100.00% | 1,952,818,799.35 | 12.62% | 13,517,789,956.57 | 13,726,216,309.17 | 100.00% | 1,706,896,530.38 | 12.44% | 12,019,319,778.79 |
Allowances for doubtful accounts established on the individual basis: RMB232,409,201.69
Unit: RMB
| Entity | Closing balance | |||
| Gross amount | Allowance for doubtful account | Allowance percentage | Reason for allowance | |
| Hefei Zhongzhu Real Estate Development Co., Ltd. | 29,487,442.03 | 14,743,721.02 | 50.00% | Based on expected loss |
| Kangde Composites Co., Ltd. | 24,448,081.36 | 24,448,081.36 | 100.00% | Expectedly irrecoverable |
| Funing Senso International Shopping Center Co., Ltd. | 22,818,582.00 | 22,818,582.00 | 100.00% | Expectedly irrecoverable |
| Chongqing Forebase Industrial Investment (Holdings) Co., Ltd. | 21,846,558.74 | 21,846,558.74 | 100.00% | Expectedly irrecoverable |
| Xiamen Shiqiao Investment Management Co., Ltd. | 21,063,774.00 | 16,851,019.20 | 80.00% | Based on expected loss |
| Anshan Ganglong Guoxin Real Estate Co., Ltd. | 19,704,000.00 | 19,704,000.00 | 100.00% | Expectedly irrecoverable |
| Jiangsu Shenghe Tourism Development Co., Ltd. | 15,988,000.49 | 15,988,000.49 | 100.00% | Expectedly irrecoverable |
| Yangzhou Sifang Property Development Co., Ltd. | 15,923,742.05 | 15,923,742.05 | 100.00% | Expectedly irrecoverable |
| Chenzhou Jinhuang Hotel Management Co., Ltd. | 15,778,879.42 | 15,778,879.42 | 100.00% | Expectedly irrecoverable |
| Jiangsu Longzhijie Steel Trading Co., Ltd. | 13,471,335.56 | 13,471,335.56 | 100.00% | Expectedly irrecoverable |
| Zhejiang Global Real Estate Group Co., Ltd. | 11,961,944.74 | 5,980,972.37 | 50.00% | Based on expected loss |
| Huaibei Goocoo Commercial Operation and Management Co., Ltd. | 11,189,217.00 | 5,594,608.50 | 50.00% | Based on expected loss |
| Jiangsu Zhonghao Holding Group Co., Ltd. | 10,580,950.57 | 10,580,950.57 | 100.00% | Expectedly irrecoverable |
| Beijing Hanergy PV Investment Co., Ltd. | 10,286,740.59 | 10,286,740.59 | 100.00% | Expectedly irrecoverable |
| Zhengzhou Hemei Women and Children's Hospital Co., Ltd. | 7,595,550.00 | 7,595,550.00 | 100.00% | Expectedly irrecoverable |
| Qingdao Panlong Real Estate Development Co., Ltd. | 4,801,527.83 | 4,801,527.83 | 100.00% | Expectedly irrecoverable |
| Shanxi Hengshi Pingyang Real Estate Development Co., Ltd. | 3,733,597.38 | 3,733,597.38 | 100.00% | Expectedly irrecoverable |
| Jiujiang Deheng Properties Co., Ltd. | 1,464,468.43 | 1,464,468.43 | 100.00% | Expectedly irrecoverable |
| SKAI Zaya Real Estate Development LLC. | 796,866.18 | 796,866.18 | 100.00% | Expectedly irrecoverable |
| Total | 262,941,258.37 | 232,409,201.69 | -- | -- |
Allowances for doubtful accounts established on the individual basis:
Unit: RMB
| Item | Closing balance | |||
| Gross amount | Allowance for doubtful account | Allowance percentage | Reason for allowance | |
Allowances for doubtful accounts established on the grouping basis: RMB1,720,409,597.66
Unit: RMB
| Item | Closing balance | ||
| Gross amount | Allowance for doubtful account | Allowance percentage | |
| Within 1 year | 11,786,063,738.24 | 589,303,186.91 | 5.00% |
| 1-2 years | 1,733,111,912.59 | 173,311,191.26 | 10.00% |
| 2-3 years | 621,160,040.95 | 186,348,012.28 | 30.00% |
| 3-4 years | 502,624,954.35 | 251,312,477.18 | 50.00% |
| 4-5 years | 222,860,606.95 | 178,288,485.56 | 80.00% |
| Over 5 years | 341,846,244.47 | 341,846,244.47 | 100.00% |
| Total | 15,207,667,497.55 | 1,720,409,597.66 | -- |
Grouping basis:
Allowances for doubtful accounts established on the grouping basis:
Unit: RMB
| Item | Closing balance | ||
| Gross amount | Allowance for doubtful account | Allowance percentage | |
Grouping basis:
Where allowances for doubtful accounts receivable are established using the general model of expected credit loss, please discloseallowance information as other receivables.
□ Applicable √ Not applicable
By aging:
Unit: RMB
| Aging | Gross amount |
| Within 1 year (inclusive) | 11,848,098,110.23 |
| 1-2 years | 1,759,680,863.65 |
| 2-3 years | 666,426,362.40 |
| Over 3 years | 1,196,403,419.64 |
| 3-4 years | 557,497,231.83 |
| 4-5 years | 239,581,215.14 |
| Over 5 years | 399,324,972.67 |
| Total | 15,470,608,755.92 |
The Company is subject to the Guide No. 6 of the Shenzhen Stock Exchange on Industry-Specific Information Disclosure—ListedCompanies Engaged in Construction Decoration.
(2) Allowances for Doubtful Accounts Established or Reversed in the Current PeriodAllowances for doubtful accounts in the current period:
Unit: RMB
| Type | Opening balance | Change in the current period | Closing balance | |||
| Established | Reversed | Written off | Others | |||
| Allowances for doubtful accounts established on the individual basis | 168,875,917.79 | 91,716,982.35 | 28,183,698.45 | 232,409,201.69 | ||
| Allowances for doubtful accounts established on the grouping basis | 1,538,020,612.59 | 219,347,809.25 | 25,170,935.36 | 11,787,888.82 | 1,720,409,597.66 | |
| Total | 1,706,896,530.38 | 311,064,791.60 | 53,354,633.81 | 11,787,888.82 | 1,952,818,799.35 | |
Significant reversed allowances for doubtful accounts in the current period:
Unit: RMB
| Entity | Amount reversed | Way of recovery |
Other decreases referred to allowances for doubtful accounts decreased due to the disposal ofcertain “Gold Mantis Home” subsidiaries in 2020.
(3) Accounts Receivable Written Off in the Current Period
Unit: RMB
| Item | Amount written off |
| Accounts receivable written off | 53,354,633.81 |
Significant accounts receivable written off:
Unit: RMB
| Entity | Nature of account receivable | Amount written off | Reason for write-off | Write-off procedure executed | Arising from a related-party transaction or not |
| Suzhou Senso Tiandi Commerce Development Co., Ltd. | Engineering payment | 11,195,518.00 | Irrecoverable | Approval procedure for write-offs | Not |
| Zhejiang Zhongqing Real Estate Co., Ltd. | Engineering payment | 9,968,372.45 | Irrecoverable | Approval procedure for write-offs | Not |
| Suzhou Wujiang Senso International Shopping Center Co., Ltd. | Engineering payment | 8,475,000.00 | Irrecoverable | Approval procedure for write-offs | Not |
| Liaoning Bihu Hot Spring Club Management Co., Ltd. | Engineering payment | 7,047,393.00 | Irrecoverable | Approval procedure for write-offs | Not |
| Heze Dayuan Real Estate Co., Ltd. | Engineering payment | 7,019,808.00 | Irrecoverable | Approval procedure for write-offs | Not |
| Suzhou Jiahe Commercial Building Co., Ltd. | Engineering payment | 5,474,705.06 | Irrecoverable | Approval procedure for write-offs | Not |
| Jiangsu Hongda Construction Group Co., Ltd. | Engineering payment | 2,173,837.30 | Irrecoverable | Approval procedure for write-offs | Not |
| Foshan International Furniture EXPO MALL | Engineering payment | 2,000,000.00 | Irrecoverable | Approval procedure for write-offs | Not |
| Total | -- | 53,354,633.81 | -- | -- | -- |
Notes:
(4) Top Five Entities with Respect to Accounts Receivable
Unit: RMB
| Entity | Closing balance of accounts receivable | As a % of the closing balance of total accounts receivable | Closing balance of allowances for doubtful accounts |
| Entity 1 | 638,201,902.75 | 4.13% | 31,910,095.14 |
| Entity 2 | 141,511,109.64 | 0.91% | 7,075,555.48 |
| Entity 3 | 135,741,214.70 | 0.88% | 6,787,060.74 |
| Entity 4 | 120,928,130.57 | 0.78% | 6,046,406.53 |
| Entity 5 | 119,712,118.87 | 0.77% | 5,985,605.94 |
| Total | 1,156,094,476.53 | 7.47% |
(5) Accounts Receivable Derecognized due to Transfer of Financial Assets
| Way of transfer of financial assets | Amount of accounts receivable derecognized | Gain or loss on derecognition |
| Factoring of accounts receivable | 911,009,097.11 | -40,604,761.02 |
In 2020, the Company transferred, without recourse, accounts receivable ofRMB911,009,097.11 to financial institutions, and the relevant loss stood at RMB40,604,761.02.
(6) Assets and Liabilities Arising from Continuing to Involve in Accounts Receivable upon Transfer
No such assets and liabilities as at the period-end.Other information:
6. Receivables Financing
Unit: RMB
| Item | Closing balance | Opening balance |
| Notes receivable | 275,822,920.18 | 261,530,861.26 |
| Total | 275,822,920.18 | 261,530,861.26 |
Changes in receivables financing and in their fair value in the current period:
□ Applicable √ Not applicable
Where allowances for doubtful receivables financing are established using the general model of expected credit loss, please discloseallowance information as other receivables:
□ Applicable √ Not applicable
Other information:
(1) Receivables Financing in Pledge as at the Period-End
| Item | Amount in pledge |
| Bank acceptance notes | 82,472,805.60 |
(2) Receivables Financing that Were Endorsed or Discounted but Undue on the Balance SheetDate at the Period-End
| Item | Derecognized amount | Un-derecognized amount |
| Bank acceptance notes | 1,907,020,650.41 | — |
(3) Notes receivable in receivables financing were all bank acceptance notes as at theperiod-end. The Company did not establish asset impairment allowances for it believed that thesebank acceptance notes were exposed to insignificant credit risk and that no significant losses wouldbe incurred due to default by banks or other note issuers.
7. Prepayments
(1) Prepayments by Aging
Unit: RMB
| Aging | Closing balance | Opening balance | ||
| Amount | Percentage | Amount | Percentage | |
| Within 1 year | 155,846,211.23 | 84.41% | 262,220,438.54 | 91.20% |
| 1-2 years | 15,553,717.74 | 8.43% | 14,773,110.88 | 5.14% |
| 2-3 years | 7,092,626.76 | 3.84% | 5,475,742.57 | 1.90% |
| Over 3 years | 6,129,682.01 | 3.32% | 5,055,207.92 | 1.76% |
| Total | 184,622,237.74 | -- | 287,524,499.91 | -- |
Reason for not being able to settle with respect to prepayments over 1 year with a substantial amount:
No such prepayments at the period-end.
(2) Top Five Entities with Respect to Prepayments
| Entity | Balance as at 31 December 2020 | As a % of the total balance of prepayments |
| Entity 1 | 20,022,817.22 | 10.85 |
| Entity 2 | 17,538,021.75 | 9.50 |
| Entity 3 | 8,077,292.84 | 4.37 |
| Entity 4 | 6,769,907.03 | 3.67 |
| Entity 5 | 4,300,581.42 | 2.33 |
| Total | 56,708,620.26 | 30.72 |
Other information:
Prepayments as at 31 December 2020 declined 35.79% compared to 1 January 2020, primarilydriven by a decrease in prepayments for raw materials as a result of the exclusion of “Gold MantisHome” subsidiaries in the current period.
8. Other Receivables
Unit: RMB
| Item | Closing balance | Opening balance |
| Other receivables | 238,574,992.82 | 248,803,300.64 |
| Total | 238,574,992.82 | 248,803,300.64 |
(1) Interest Receivable
1) Interest Receivable by Type
Unit: RMB
| Item | Closing balance | Opening balance |
2) Substantial Interest Overdue
Unit: RMB
| Borrower | Closing balance | Overdue time | Reason | Any impairment and basis for impairment judgment |
Other information:
3) Allowances for Doubtful Interest Receivable
□ Applicable √ Not applicable
(2) Dividends Receivable
1) Dividends Receivable by Type
Unit: RMB
| Item (or investee) | Closing balance | Opening balance |
2) Substantial Dividends Receivable Over 1 Year
Unit: RMB
| Item (or investee) | Closing balance | Aging | Reason for being outstanding | Any impairment and basis for impairment judgment |
3) Allowances for Doubtful Dividends Receivable
□ Applicable √ Not applicable
Other information:
(3) Other Receivables
1) Other Receivables by Nature
Unit: RMB
| Nature of other receivable | Closing balance | Opening balance |
| Security deposits | 309,634,210.20 | 319,288,570.11 |
| Imprest funds | 10,420,087.26 | 10,911,086.13 |
| Others | 9,600,557.79 | 8,696,157.42 |
| Total | 329,654,855.25 | 338,895,813.66 |
2) Allowances for Doubtful Other Receivables
Unit: RMB
| Allowances | Stage 1 | Stage 2 | Stage 3 | Total |
| 12-month expected credit loss | Lifetime expected credit loss (without credit impairment) | Lifetime expected credit loss (with credit impairment) | ||
| Balance as at 1 January 2020 | 90,092,513.02 | 90,092,513.02 | ||
| Balance as at 1 January 2020 in the current period | —— | —— | —— | —— |
| Established in the current period | 3,601,882.53 | 3,601,882.53 | ||
| Written off in the current period | 1,158,746.09 | 1,158,746.09 | ||
| Other changes | 1,455,787.03 | 1,455,787.03 | ||
| Balance as at 31 December 2020 | 91,079,862.43 | 91,079,862.43 |
Balances with significant changes in loss allowances in the current period:
□ Applicable √ Not applicable
By aging:
Unit: RMB
| Aging | Closing balance |
| Within 1 year (inclusive) | 172,878,476.62 |
| 1-2 years | 63,966,332.11 |
| 2-3 years | 21,464,374.24 |
| Over 3 years | 71,345,672.28 |
| 3-4 years | 13,855,523.62 |
| 4-5 years | 6,061,230.62 |
| Over 5 years | 51,428,918.04 |
| Total | 329,654,855.25 |
3) Allowances for Doubtful Other Receivables Established or Reversed in the Current PeriodAllowances for doubtful other receivables in the current period:
Unit: RMB
| Type | Opening balance | Change in the current period | Closing balance | |||
| Established | Reversed | Written off | Others | |||
| Established on the individual basis | 6,250,000.00 | 2,827,031.97 | 9,077,031.97 | |||
| Established on the grouping basis | 83,842,513.02 | 774,850.56 | 1,158,746.09 | 1,455,787.03 | 82,002,830.46 | |
| Total | 90,092,513.02 | 3,601,882.53 | 1,158,746.09 | 1,455,787.03 | 91,079,862.43 | |
Other decreases in such allowances were driven by the disposal of certain “Gold MantisHome” subsidiaries in 2020.Significant reversed allowances in the current period:
Unit: RMB
| Entity | Amount reversed | Way of recovery |
4) Other Receivables Written off in the Current Period
Unit: RMB
| Item | Amount written off |
| Other receivables written off | 1,158,746.09 |
Significant other receivables written off:
Unit: RMB
| Entity | Nature of other receivable | Amount written off | Reason for write-off | Write-off procedure executed | Arising from a related-party transaction or not |
| Heze Baina Construction Decoration Engineering Co., Ltd. | Security deposit | 1,008,746.09 | Expectedly irrecoverable | Approval procedure for write-offs | Not |
| Total | -- | 1,008,746.09 | -- | -- | -- |
Notes:
5) Top Five Entities with Respect to Other Receivables
Unit: RMB
| Entity | Nature of other receivable | Closing balance | Aging | As a % of the closing balance of total other receivables | Closing balance of allowances for doubtful other receivables |
| Entity 1 | Security deposit for engineering project | 46,984,676.77 | Over 4 years | 14.25% | 43,234,676.77 |
| Entity 2 | Security deposit for execution | 10,573,100.00 | 0-2 years | 3.21% | 1,050,859.43 |
| Entity 3 | Security deposit for construction | 9,291,641.95 | 1-2 years | 2.82% | 929,164.20 |
| Entity 4 | Security deposit for construction | 5,654,063.93 | Within 1 year | 1.71% | 2,827,031.97 |
| Entity 5 | Security deposits for bidding and construction drawings | 5,100,000.00 | Within 1 year | 1.55% | 255,000.00 |
| Total | -- | 77,603,482.65 | -- | 23.54% | 48,296,732.37 |
6) Other Receivables Associated with Government Grants
Unit: RMB
| Entity | Title of government grant | Closing balance | Closing aging | Expected time of receipt and amount to be received, as well as judgment basis |
No such other receivables as at the period-end.
7) Other Receivables Derecognized due to Transfer of Financial Assets
No such other receivables as at the period-end.
8) Assets and Liabilities Arising from Continuing to Involve in Other Receivables upon TransferNo such assets or liabilities as at the period-end.Other information:
9. Inventories
Is the Company subject to the disclosure requirements for the real estate industry?
No.
(1) Inventories by Type
Unit: RMB
| Item | Closing balance | Opening balance | ||||
| Gross amount | Inventory valuation allowances or impairment allowances for contract performance costs | Carrying amount | Gross amount | Inventory valuation allowances or impairment allowances for contract performance costs | Carrying amount | |
| Raw materials | 21,949,126.04 | 21,949,126.04 | 31,873,821.55 | 31,873,821.55 | ||
| Work-in-progress | 2,866,264.15 | 2,866,264.15 | 4,060,401.32 | 4,060,401.32 | ||
| Finished goods | 12,242,103.39 | 591,588.71 | 11,650,514.68 | 46,733,581.91 | 221,541.68 | 46,512,040.23 |
| Turnover materials | 465,048.33 | 465,048.33 | 2,232,904.75 | 2,232,904.75 | ||
| Consumptive living assets | 16,910,928.84 | 16,910,928.84 | 16,664,961.43 | 16,664,961.43 | ||
| Total | 54,433,470.75 | 591,588.71 | 53,841,882.04 | 101,565,670.96 | 221,541.68 | 101,344,129.28 |
(2) Inventory Valuation Allowances and Impairment Allowances for Contract Performance Costs
Unit: RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance | ||
| Established | Others | Reversed or written off | Others | |||
| Finished goods | 221,541.68 | 370,047.03 | 591,588.71 | |||
| Total | 221,541.68 | 370,047.03 | 591,588.71 | |||
Inventories declined 46.87% as at 31 December 2020 compared to 1 January 2020, primarilydriven by a decrease in finished goods as a result of the disposal of “Gold Mantis Home”subsidiaries.
(3) Capitalized Borrowing Costs in the Closing Balance of Inventories
(4) Amortization of Contract Performance Costs in the Current Period
10. Contract Assets
Unit: RMB
| Item | Closing balance | Opening balance | ||||
| Gross amount | Impairment allowances | Carrying amount | Gross amount | Impairment allowances | Carrying amount | |
| Completed but unsettled assets | 6,783,629,836.10 | 340,338,591.79 | 6,443,291,244.31 | 9,082,105,628.49 | 454,105,281.41 | 8,628,000,347.08 |
| Undue quality assurance deposits | 2,462,490,569.90 | 128,878,589.96 | 2,333,611,979.94 | 1,631,100,643.17 | 81,555,032.14 | 1,549,545,611.03 |
| Total | 9,246,120,406.00 | 469,217,181.75 | 8,776,903,224.25 | 10,713,206,271.66 | 535,660,313.55 | 10,177,545,958.11 |
Significant changes in the carrying amounts of contract assets in the current period and reasons:
Unit: RMB
| Item | Amount of change | Reason for change |
Where impairment allowances for contract assets are established using the general model of expected credit loss, please discloseallowance information as other receivables:
□ Applicable √ Not applicable
Impairment allowances for contract assets in the current period:
Unit: RMB
| Item | Established in the current period | Reversed in the current period | Written off/charged off in the current period | Reason |
| Impairment allowances | -66,443,131.80 | |||
| Total | -66,443,131.80 | -- |
Other information:
11. Assets Held for Sale
Unit: RMB
| Item | Closing gross amount | Impairment allowances | Closing carrying amount | Fair value | Expected disposal cost | Expected disposal time |
Other information:
12. Current Portion of Non-Current Assets
Unit: RMB
| Item | Closing balance | Opening balance |
| Current portion of long-term receivables | 90,289,257.26 | 31,698,807.42 |
| Less: allowances for doubtful long-term receivables | -902,892.57 | -316,988.07 |
| Total | 89,386,364.69 | 31,381,819.35 |
Substantial debt investments/other debt investments:
Unit: RMB
| Debt investment | Closing balance | Opening balance | ||||||
| Nominal value | Nominal interest rate | Effective interest rate | Maturity | Nominal value | Nominal interest rate | Effective interest rate | Maturity | |
Other information:
Current portion of non-current assets rose 184.83% as at 31 December 2020 compared to 1January 2020, primarily driven by a significant amount of engineering payment receivable bysubsidiary Shuicheng Ruitong being reclassified to the current portion of non-current assets.
13. Other Current Assets
Unit: RMB
| Item | Closing balance | Opening balance |
| Taxes to be deducted | 113,007,717.52 | 116,384,039.46 |
| Total | 113,007,717.52 | 116,384,039.46 |
Other information:
14. Debt Investments
Unit: RMB
| Item | Closing balance | Opening balance | ||||
| Gross amount | Impairment allowances | Carrying amount | Gross amount | Impairment allowances | Carrying amount | |
Substantial debt investments:
Unit: RMB
| Debt investment | Closing balance | Opening balance | ||||||
| Nominal value | Nominal interest rate | Effective interest rate | Maturity | Nominal value | Nominal interest rate | Effective interest rate | Maturity | |
Impairment allowances:
Unit: RMB
| Impairment allowances | Stage 1 | Stage 2 | Stage 3 | Total |
| 12-month expected | Lifetime expected credit | Lifetime expected credit |
| credit loss | loss (without credit impairment) | loss (with credit impairment) | ||
| Balance as at 1 January 2020 in the current period | —— | —— | —— | —— |
Balances with significant changes in loss allowances in the current period:
□ Applicable √ Not applicable
Other information:
15. Other Debt Investments
Unit: RMB
| Item | Opening balance | Accrued interest | Changes in fair value in the current period | Closing balance | Cost | Cumulative changes in fair value | Cumulative loss allowances recognized in other comprehensive income | Remark |
Substantial other debt investments:
Unit: RMB
| Other debt investment | Closing balance | Opening balance | ||||||
| Nominal value | Nominal interest rate | Effective interest rate | Maturity | Nominal value | Nominal interest rate | Effective interest rate | Maturity | |
Impairment allowances:
Unit: RMB
| Impairment allowances | Stage 1 | Stage 2 | Stage 3 | Total |
| 12-month expected credit loss | Lifetime expected credit loss (without credit impairment) | Lifetime expected credit loss (with credit impairment) | ||
| Balance as at 1 January 2020 in the current period | —— | —— | —— | —— |
Balances with significant changes in loss allowances in the current period:
□ Applicable √ Not applicable
Other information:
16. Long-term Receivables
(1) Particulars about Long-term Receivables
Unit: RMB
| Item | Closing balance | Opening balance | Range of discount rates | ||||
| Gross amount | Allowances for doubtful long-term receivables | Carrying amount | Gross amount | Allowances for doubtful long-term receivables | Carrying amount | ||
| Engineering payments by installment | 1,543,455,556.41 | 15,434,555.57 | 1,528,021,000.84 | 1,453,168,093.23 | 14,531,680.93 | 1,438,636,412.30 | |
| Total | 1,543,455,556.41 | 15,434,555.57 | 1,528,021,000.84 | 1,453,168,093.23 | 14,531,680.93 | 1,438,636,412.30 | -- |
Allowances for doubtful long-term receivables:
Unit: RMB
| Allowances for doubtful long-term receivables | Stage 1 | Stage 2 | Stage 3 | Total |
| 12-month expected credit loss | Lifetime expected credit loss (without credit impairment) | Lifetime expected credit loss (with credit impairment) | ||
| Balance as at 1 January 2020 | 14,531,680.93 | 14,531,680.93 | ||
| Balance as at 1 January 2020 in the current period | —— | —— | —— | —— |
| Established in the current period | 902,874.64 | 902,874.64 | ||
| Balance as at 31 December 2020 | 15,434,555.57 | 15,434,555.57 |
Balances with significant changes in loss allowances in the current period:
□ Applicable √ Not applicable
(2) Long-term Receivables Derecognized due to Transfer of Financial Assets
No such long-term receivables as at the period-end.
(3) Assets and Liabilities Arising from Continuing to Involve in Long-term Receivables upon TransferNo such assets or liabilities as at the period-end.
Other information:
Top five entities with respect to long-term receivables as at the period-end:
| Entity | Balance as at 31 December 2020 | As a % of the balance of total long-term receivables | Balance of allowances for doubtful long-term receivables |
| Entity 1 | 886,888,566.70 | 57.46 | 8,868,885.67 |
| Entity 2 | 279,622,082.77 | 18.12 | 2,796,220.83 |
| Entity 3 | 149,661,726.24 | 9.70 | 1,496,617.26 |
| Entity 4 | 137,170,209.87 | 8.89 | 1,371,702.10 |
| Entity 5 | 51,143,400.15 | 3.31 | 511,434.00 |
| Total | 1,504,485,985.73 | 97.48 | 15,044,859.86 |
17. Long-term Equity Investments
Unit: RMB
| Investee | Opening balance (carrying amount) | Change in the current period | Closing balance (carrying amount) | Closing balance of impairment allowance | ||||||||
| Additional investment | Reduced investment | Return on investment recognized using the equity method | Adjustment to other comprehensive income | Other equity changes | Declared cash dividends or profit | Impairment allowance | Others | |||||
| 1. Joint ventures | ||||||||||||
| 2. Associates | ||||||||||||
| Macao Gold Mantis Construction Decoration Co., Limited | ||||||||||||
| Delos Residential | 6,366,934.25 | -6,141,810.19 | 225,124.06 | |||||||||
| Solutions （HK）Limited | |||||||||||
| Zhejiang Tianyu Commercial Operation Management Co., Ltd. | 16,471,489.41 | 13,056,602.98 | -3,414,886.43 | ||||||||
| Subtotal | 22,838,423.66 | 13,056,602.98 | -9,556,696.62 | 225,124.06 | |||||||
| Total | 22,838,423.66 | 13,056,602.98 | -9,556,696.62 | 225,124.06 |
Other information:
(1) On 18 July 2016, in accordance with the Framework Agreement signed between theCompany's subsidiary, Gold Mantis (International), and Macao Yuji Limited and YuzhuoInternational Limited (hereinafter referred to as the "Transferee"), Gold Mantis (International)transferred its 55% equity in Macao Gold Mantis Construction Decoration Limited to theTransferee. Upon the completion of the above transaction, Gold Mantis (International) would beable to exert a significant influence on Macao Gold Mantis Construction Decoration Limited, so theequity method was adopted for accounting. As of 31 December 2020, the subsidiary Gold Mantis(International) had not yet made the actual capital contribution, and Macao Gold MantisConstruction Decoration Limited had not yet carried out business operations.
(2) On 25 August 2017, Gold Mantis (International), a subsidiary of the Company, investedjointly with Delos China (HK) Limited to establish Delos Residential Solutions (HK) Limited, witha registered capital of USD2.00 million. As of 31 December 2020, Gold Mantis (International) hada 45.78% shareholding and was able to exert a significant influence on Delos Residential Solutions(HK) Limited, so the equity method was adopted for accounting.
(3) On 22 December 2017, the Company and its sub-subsidiary Refined Decoration &Technology invested to establish Zhejiang Tianyu Commercial Operation Management Co., Ltd.jointly with Zhongtian Holdings Group Co., Ltd., with a registered capital of RMB50.00 million.Specifically, the Company contributed RMB17.50 million, accounting for 35.00% of the registeredcapital; Refined Decoration & Technology contributed RMB7.50 million, accounting for 15.00% ofthe registered capital. Since the Company was able to exert a significant influence on ZhejiangTianyu Commercial Operation Management Co., Ltd., the equity method was adopted foraccounting. In September 2020, the Company and its subsidiary Refined Decoration & Technologytransferred their 50.00% stake in Zhejiang Tianyu Commercial Operation Management Co., Ltd. toHangzhou Tianshuo Apartment Management Co., Ltd. based on the Agreement on Equity Transferand Relevant Matters signed between the Company and its subsidiary Refined Decoration &Technology and Hangzhou Tianshuo Apartment Management Co., Ltd., and the registration of
industrial and commercial changes was completed on 29 October 2020.
(4) At the end of 2020, the amount of long-term equity investments was 99.01% lower than thatat the beginning of 2020, which was largely attributable to the large amount of investments in theequity disposal of Zhejiang Tianyu Commercial Operation Management Co., Ltd. for the currentperiod.
18. Investments in Other Equity Instruments
Unit: RMB
| Item | Closing balance | Opening balance |
Investments in equity instruments not held for trading in the current period by item:
Unit: RMB
| Item | Dividend income recognized | Cumulative gains | Cumulative losses | Other comprehensive income transferred to retained earnings | Reason for being designated as being measured at fair value through other comprehensive income | Reason for other comprehensive income being transferred to retained earnings |
Other information:
19. Other Non-current Financial Assets
Unit: RMB
| Item | Closing balance | Opening balance |
| Equity investments | ||
| Of which: Zhijiang New Industrial Co., Ltd. | 250,000,000.00 | 250,000,000.00 |
| Shanghai Yunfeng Qitai Investment Center (L.P.) | 200,000,000.00 | 132,000,000.00 |
| Shanghai Cura Investment&Management Co., Ltd. | 31,872,000.00 | 31,872,000.00 |
| Lanzhou Scisky Waterborne Technologies Co., Ltd. | 30,000,000.00 | 30,000,000.00 |
| Suzhou People's Department Store Co., Ltd. | 150,000.00 | 150,000.00 |
| Total | 512,022,000.00 | 444,022,000.00 |
Other information:
20. Investment Property
(1) Investment Property Measured at Cost
√ Applicable □ Not applicable
Unit: RMB
| Item | Buildings | Land use rights | Construction in progress | Total |
| I Gross amount | ||||
| 1. Opening balance | 107,603,669.46 | 4,789,221.26 | 112,392,890.72 | |
| 2. Increase in the current period | 58,816,519.62 | 3,466,275.52 | 62,282,795.14 | |
| (1) Purchased | 25,560,270.67 | 25,560,270.67 | ||
| (2) Transferred from inventories \fixed assets\construction in progress | 33,256,248.95 | 3,466,275.52 | 36,722,524.47 | |
| (3) Increase due to business combination | ||||
| 3. Decrease in the current period | ||||
| (1) Disposal | ||||
| (2) Other decreases | ||||
| 4. Closing balance | 166,420,189.08 | 8,255,496.78 | 174,675,685.86 | |
| II Accumulated depreciation and amortization | ||||
| 1. Opening balance | 30,741,814.64 | 3,400,514.38 | 34,142,329.02 | |
| 2. Increase in the current period | 4,353,890.76 | 883,557.14 | 5,237,447.90 | |
| (1) Provided or amortized | 4,353,890.76 | 260,112.12 | 4,614,002.88 | |
| (2) Transferred from intangible assets | 623,445.02 | 623,445.02 | ||
| 3. Decrease in the current period | ||||
| (1) Disposal |
| (2) Other decreases | ||||
| 4. Closing balance | 35,095,705.40 | 4,284,071.52 | 39,379,776.92 | |
| III Impairment allowances | ||||
| 1. Opening balance | ||||
| 2. Increase in the current period | ||||
| (1) Established | ||||
| 3. Decrease in the current period | ||||
| (1) Disposal | ||||
| (2) Other decreases | ||||
| 4. Closing balance | ||||
| IV Carrying amount | ||||
| 1. Closing carrying amount | 131,324,483.68 | 3,971,425.26 | 135,295,908.94 | |
| 1. Opening carrying amount | 76,861,854.82 | 1,388,706.88 | 78,250,561.70 |
(2) Investment Property Measured at Fair Value
□ Applicable √ Not applicable
(3) Investment Property with Pending Ownership Certificate
Unit: RMB
| Item | Carrying amount | Reason for ownership certificate being pending |
| Buildings | 33,256,248.95 | Going through the formalities in relation to ownership certificate |
Other information:
(1) No impairment allowances were established for investment property as at the period-endfor there were no impairments in investment property.
(2) Investment property rose 72.90% as at 31 December 2020 compared to 1 January 2020,primarily driven by a larger amount of buildings leased out in the current period.
21. Fixed Assets
Unit: RMB
| Item | Closing balance | Opening balance |
| Fixed assets | 892,169,838.74 | 910,175,452.03 |
| Total | 892,169,838.74 | 910,175,452.03 |
(1) Particulars about Fixed Assets
Unit: RMB
| Item | Buildings | Plant and equipment | Transportation equipment | office equipment | Electronic equipment | Other equipment | Total |
| I Gross amount | |||||||
| 1. Opening balance | 1,033,143,972.15 | 59,276,036.57 | 81,232,176.69 | 153,127,873.55 | 47,904,114.25 | 23,021,378.36 | 1,397,705,551.57 |
| 2. Increase in the current period | 26,544,870.62 | 3,716.81 | 3,916,986.63 | 7,996,903.73 | 3,010,059.08 | 371,919.30 | 41,844,456.17 |
| (1) Purchased | 9,125,382.53 | 3,716.81 | 3,916,986.63 | 7,996,903.73 | 3,010,059.08 | 371,919.30 | 24,424,968.08 |
| (2) Transferred from construction in progress | 17,419,488.09 | 17,419,488.09 | |||||
| (3) Increase due to business combination | |||||||
| 3. Decrease in the current period | 102,603.42 | 6,641,436.53 | 13,601,427.46 | 4,257,610.84 | 1,364,201.59 | 25,967,279.84 | |
| (1) Disposal or retirement | 98,803.42 | 6,259,565.12 | 7,502,864.04 | 4,257,610.84 | 1,352,990.40 | 19,471,833.82 | |
| (2) Other decreases | 3,800.00 | 381,871.41 | 6,098,563.42 | 11,211.19 | 6,495,446.02 | ||
| 4. Closing balance | 1,059,688,842.77 | 59,177,149.96 | 78,507,726.79 | 147,523,349.82 | 46,656,562.49 | 22,029,096.07 | 1,413,582,727.90 |
| II Accumulated depreciation | |||||||
| 1. Opening balance | 220,388,489.29 | 39,406,430.30 | 61,910,440.72 | 110,646,298.04 | 35,975,206.38 | 18,584,150.16 | 486,911,014.89 |
| 2. Increase in the current period | 30,374,380.37 | 3,555,997.36 | 4,226,871.72 | 10,710,437.00 | 4,344,086.95 | 994,260.71 | 54,206,034.11 |
| (1) Provision | 30,374,380.37 | 3,555,997.36 | 4,226,871.72 | 10,710,437.00 | 4,344,086.95 | 994,260.71 | 54,206,034.11 |
| 3. Decrease in the current period | 42,803.42 | 5,736,766.38 | 9,812,060.80 | 3,685,735.74 | 1,045,878.15 | 20,323,244.49 | |
| (1) Disposal or retirement | 41,991.26 | 5,481,163.98 | 7,198,823.93 | 3,685,735.74 | 1,040,910.20 | 17,448,625.11 | |
| (2) Other decreases | 812.16 | 255,602.40 | 2,613,236.87 | 4,967.95 | 2,874,619.38 | ||
| 4. Closing balance | 250,762,869.66 | 42,919,624.24 | 60,400,546.06 | 111,544,674.24 | 36,633,557.59 | 18,532,532.72 | 520,793,804.51 |
| III Impairment allowances | |||||||
| 1. Opening balance | 46,631.91 | 290,705.70 | 281,747.04 | 619,084.65 | |||
| 2.Increase in the current period | |||||||
| (1) Established | |||||||
| 3. Decrease in the current period | |||||||
| (1) Disposal or retirement | |||||||
| 4. Closing balance | 46,631.91 | 290,705.70 | 281,747.04 | 619,084.65 |
| IV Carrying amount | |||||||
| 1. Closing carrying amount | 808,925,973.11 | 16,210,893.81 | 17,816,475.03 | 35,696,928.54 | 10,023,004.90 | 3,496,563.35 | 892,169,838.74 |
| 2. Opening carrying amount | 812,755,482.86 | 19,822,974.36 | 19,031,030.27 | 42,199,828.47 | 11,928,907.87 | 4,437,228.20 | 910,175,452.03 |
(2) Temporarily Idle Fixed Assets
Unit: RMB
| Item | Gross amount | Accumulated depreciation | Impairment allowance | Carrying amount | Remark |
(3) Fixed Assets Leased in in Finance Leases
Unit: RMB
| Item | Gross amount | Accumulated depreciation | Impairment allowance | Carrying amount |
(4) Fixed Assets Leased out in Operating Leases
Unit: RMB
| Item | Closing carrying amount |
(5) Fixed Assets with Pending Ownership Certificate
Unit: RMB
| Item | Carrying amount | Reason for ownership certificate being pending |
Other information:
Notes:
① Other decreases were driven by the disposal of certain “Gold Mantis Home” subsidiaries.
② No fixed assets were idle, exchanged, in pledge or used for guarantees as at the period-end.
③ There were no fixed assets leased in in finance leases as at the period-end.
④ There were no fixed assets leased out in operating leases as at the period-end.
⑤ There were no fixed assets with pending ownership certificate as at the period-end.
(6) Disposal of Fixed Assets
Unit: RMB
| Item | Closing balance | Opening balance |
Other information:
22. Construction in Progress
Unit: RMB
| Item | Closing balance | Opening balance |
| Construction in progress | 41,215,785.57 | 71,905,579.25 |
| Total | 41,215,785.57 | 71,905,579.25 |
(1) Particulars about Construction in Progress
Unit: RMB
| Item | Closing balance | Opening balance | ||||
| Gross amount | Impairment allowance | Carrying amount | Gross amount | Impairment allowance | Carrying amount | |
| Project of extending the energy-saving curtain wall, door and window production line | 20,711,581.55 | 20,711,581.55 | ||||
| Miscellaneous projects | 41,215,785.57 | 41,215,785.57 | 51,193,997.70 | 51,193,997.70 | ||
| Total | 41,215,785.57 | 41,215,785.57 | 71,905,579.25 | 71,905,579.25 | ||
(2) Changes in Substantial Construction in Progress in the Current Period
Unit: RMB
| Project | Budget | Opening balance | Increase in the current period | Transferred to fixed assets in the current period | Other decreases in the current period | Closing balance | Cumulative project investment as a % of the budget | Project progress | Cumulative capitalized interest | Of which: Capitalized interest in the current period | Interest capitalization rate for the current period | Funding source |
| Project | 26,000,0 | 20,711,5 | 12,544,6 | 33,256,2 | 127.91% | 100.00 | Other |
| of extending the energy-saving curtain wall, door and window production line | 00.00 | 81.55 | 67.40 | 48.95 | ||||||||
| Miscellaneous projects | 51,193,997.70 | 9,624,283.75 | 17,419,488.09 | 2,183,007.79 | 41,215,785.57 | Other | ||||||
| Total | 26,000,000.00 | 71,905,579.25 | 22,168,951.15 | 50,675,737.04 | 2,183,007.79 | 41,215,785.57 | -- | -- | -- |
(3) Impairment Allowances for Construction in Progress in the Current Period
Unit: RMB
| Item | Amount of impairment allowances in the current period | Reason for impairment allowances |
Other information:
(1) Other decreases in 2020 were transfers to long-term prepaid expense.
(2) No impairment allowances were established for construction in progress as at theperiod-end for there were no impairments in construction in progress.
(3) Construction in progress declined 42.68% as at 31 December 2020 compared to 1 January2020, primarily driven by the project of extending the energy-saving curtain wall, door and windowproduction line being completed and transferred to fixed assets.
(4) Engineering Materials
Unit: RMB
| Item | Closing balance | Opening balance | ||||
| Gross amount | Impairment allowance | Carrying amount | Gross amount | Impairment allowance | Carrying amount | |
Other information:
23. Productive Living Assets
(1) Productive Living Assets Measured at Cost
□ Applicable √ Not applicable
(2) Productive Living Assets Measured at Fair Value
□ Applicable √ Not applicable
24. Oil and Gas Assets
□ Applicable √ Not applicable
25. Right-of-use Assets
Unit: RMB
| Item | Total |
Other information:
26. Intangible Assets
(1) Particulars about Intangible Assets
Unit: RMB
| Item | Land use rights | Patent rights | Non-patented technologies | Concessions | Software and others | Total |
| I Gross amount | ||||||
| 1. Opening balance | 90,373,053.62 | 198,130.00 | 36,000,000.00 | 59,624,569.24 | 186,195,752.86 | |
| 2. Increase in the current period | 809,239.20 | 809,239.20 | ||||
| (1) Purchased | 809,239.20 | 809,239.20 | ||||
| (2) Internal R&D | ||||||
| (3) Increase due to business combination | ||||||
| 3. Decrease in the current period | 9,095,039.01 | 4,348,131.15 | 13,443,170.16 | |||
| (1) Disposal | 5,628,763.49 | 4,348,131.15 | 9,976,894.64 | |||
| (2) Transferred to investment property | 3,466,275.52 | 3,466,275.52 | ||||
| 4. Closing balance | 81,278,014.61 | 198,130.00 | 36,000,000.00 | 56,085,677.29 | 173,561,821.90 | |
| II Accumulated amortization | ||||||
| 1. Opening balance | 25,830,165.48 | 198,130.00 | 4,083,333.34 | 46,978,302.95 | 77,089,931.77 | |
| 2. Increase in the current period | 5,539,310.57 | 4,456,754.16 | 9,996,064.73 | |||
| (1) Provision | 5,539,310.57 | 4,456,754.16 | 9,996,064.73 | |||
| 3. Decrease in the current period | 1,083,127.36 | 1,983,555.60 | 3,066,682.96 | |||
| (1) Disposal | 459,682.34 | 1,983,555.60 | 2,443,237.94 | |||
| (2) Transferred to investment property | 623,445.02 | 623,445.02 | ||||
| 4. Closing balance | 30,286,348.69 | 198,130.00 | 4,083,333.34 | 49,451,501.51 | 84,019,313.54 | |
| III Impairment allowances | ||||||
| 1. Opening balance | ||||||
| 2. Increase in the current period | ||||||
| (1) |
| Established | ||||||
| 3. Decrease in the current period | ||||||
| (1) Disposal | ||||||
| 4. Closing balance | ||||||
| IV Carrying amount | ||||||
| 1. Closing carrying amount | 50,991,665.92 | 31,916,666.66 | 6,634,175.78 | 89,542,508.36 | ||
| 2. Opening carrying amount | 64,542,888.14 | 31,916,666.66 | 12,646,266.29 | 109,105,821.09 |
Intangible assets arising from internal R&D accounted for 0.00% of the balance of intangible assets as at the period-end.
(2) Land Use Rights with Pending Ownership Certificate
Unit: RMB
| Item | Carrying amount | Reason for ownership certificate being pending |
Other information:
(1) No impairment allowances were established for intangible assets as at the period-end forthere were no impairments in intangible assets.
(2) No intangible assets were idle, exchanged, in pledge or used for guarantees as at theperiod-end.
27. Development Costs
Unit: RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance | ||||
| Internal development costs | Others | Recognized as intangible assets | Transferred to profit or loss | |||||
| Total | ||||||||
Other information:
28. Goodwill
(1) Gross Amounts of Goodwill
Unit: RMB
| Investee or item generating goodwill | Opening balance | Increase in the current period | Decrease in the current period | Closing balance | ||
| Generated due to business combination | Disposal | Others | ||||
| HBA | 410,065,631.57 | 26,527,711.29 | 383,537,920.28 | |||
| Coopers Hill Singapore Pte Ltd* | 19,100,835.60 | 1,235,659.40 | 17,865,176.20 | |||
| Archi-Feeling | 6,652,310.57 | 6,652,310.57 | ||||
| Total | 435,818,777.74 | 27,763,370.69 | 408,055,407.05 | |||
(2) Impairment Allowances for Goodwill
Unit: RMB
| Investee or item generating goodwill | Opening balance | Increase in the current period | Decrease in the current period | Closing balance | ||
| Established | Disposal | |||||
| HBA | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| CHS | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Archi-Feeling | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Total | ||||||
Information related to asset groups or asset group combinations in which goodwill residesAn explanation for the goodwill impairment test process, key parameters (such as growth rate in the forecast period, growth rate inthe stable period, profit margin, discount rate and forecast period used in predicting the present value of future cash flows), andrecognition methods of goodwill impairment loss:
Note*: Coopers Hill Singapore Pte Ltd is hereinafter referred to as "CHS".
(1) Other decreases in goodwill were due to the translation difference in foreign currencystatements arising from changes in exchange rates.
(2) The goodwill impairment test process, parameters, and recognition methods of goodwillimpairment loss
① Goodwill recognized for the acquisition of HBA
A. Identification and definition of asset group combinations
The composition of an asset group combination was determined after excluding the carryingvalue of excess assets, non-operating assets and liabilities, and interest-bearing liabilities according
to the carrying value by the standard of financial statements.
B. The process, methods and conclusion of the goodwill impairment testThe recoverable amount of goodwill was determined by the present value of forecast futurecash flows of asset group combinations. The future cash flows were forecast based on the five-yearfinancial budget of the above asset groups approved by the management, and the perpetual cashflows after five years were determined at the level of the last year of the detailed forecast period.The discount rate used to calculate the present value was 15.48%, which was the pre-tax discountrate that reflected the specific risk of the relevant asset group combination. Other criticalassumptions used to forecast the cash flows of asset group combinations included operatingrevenue, cost of sales, growth rate and relevant expenses. The above assumptions were based on theCompany's operating performance, growth rate and industry position in previous years and themanagement's expectations for market development.According to the goodwill impairment test process, the goodwill recognized for the acquisitionof HBA did not require any impairment provision as of 31 December 2020.
② Goodwill recognized for the acquisition of CHS
A. Identification and definition of asset group combinationsThe composition of an asset group combination was determined after excluding the carryingvalue of excess assets, non-operating assets and liabilities, and interest-bearing liabilities accordingto the carrying value by the standard of financial statements.B. The process, methods and conclusion of the goodwill impairment testThe recoverable amount of goodwill was determined by the present value of forecast futurecash flows of asset group combinations. The future cash flows were forecast based on the five-yearfinancial budget of the above asset groups approved by the management, and the perpetual cashflows after five years were determined at the level of the last year of the detailed forecast period.The discount rate used to calculate the present value was 14.90%, which was the pre-tax discountrate that reflected the specific risk of the relevant asset group combination. Other criticalassumptions used to forecast the cash flows of asset group combinations included operatingrevenue, cost of sales, growth rate and relevant expenses. The above assumptions were based on theCompany's operating performance, growth rate and industry position in previous years and themanagement's expectations for market development.
According to the goodwill impairment test process, the goodwill recognized for the acquisitionof CHS did not require any impairment provision as of 31 December 2020.
③ Goodwill recognized for the acquisition of Archi-Feeling Design
A. Identification and definition of asset groups
The composition of an asset group was determined after excluding the carrying value of excessassets, non-operating assets and liabilities, and interest-bearing liabilities according to the carryingvalue by the standard of financial statements.
B. The process, methods and conclusion of the goodwill impairment test
The recoverable amount of goodwill was determined by the present value of forecast futurecash flows of asset groups. The future cash flows were forecast based on the five-year financial
budget of the above asset groups approved by the management, and the perpetual cash flows afterfive years were determined at the level of the last year of the detailed forecast period. The discountrate used to calculate the present value was 16.79%, which was the pre-tax discount rate thatreflected the specific risk of the relevant asset group combination. Other critical assumptions usedto forecast the cash flows of asset groups included operating revenue, cost of sales, growth rate andrelevant expenses. The above assumptions were based on the Company's operating performance,growth rate and industry status in previous years and the management's expectations for marketdevelopment.According to the goodwill impairment test process, the goodwill recognized for the acquisitionof Archi-Feeling Design did not require any impairment provision as of 31 December 2020.Impact of the goodwill impairment testOther information:
29. Long-term Prepaid Expense
Unit: RMB
| Item | Opening balance | Increase in the current period | Amortization in the current period | Other decreases | Closing balance |
| Decoration expense | 157,443,245.55 | 7,850,423.92 | 60,823,876.16 | 54,565,438.99 | 49,904,354.32 |
| Total | 157,443,245.55 | 7,850,423.92 | 60,823,876.16 | 54,565,438.99 | 49,904,354.32 |
Other information:
(1) Other decreases were primarily driven by the disposal of certain “Gold Mantis Home”subsidiaries.
(2) Long-term prepaid expense declined 68.30% as at 31 December 2020 compared to 31December 2019, primarily driven by a larger amount of amortization and the disposal of certain“Gold Mantis Home” subsidiaries in the current period.
30. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) Deferred Income Tax Assets before Offsetting
Unit: RMB
| Item | Closing balance | Opening balance | ||
| Deductible temporary differences | Deferred income tax assets | Deductible temporary differences | Deferred income tax assets | |
| Asset impairment allowances | 465,490,701.04 | 70,831,251.69 | ||
| Deductible losses | 105,430,566.80 | 21,817,702.30 | ||
| Credit impairment allowances | 2,220,344,202.71 | 337,359,385.19 | 2,352,465,106.39 | 356,509,412.91 |
| Share-based payments | 65,283,144.96 | 9,792,471.74 | 91,146,125.00 | 13,671,918.75 |
| Changes in the fair value of other non-current financial assets | 64,000,000.00 | 9,600,000.00 | 64,000,000.00 | 9,600,000.00 |
| Employee benefits payable | 62,158,308.41 | 10,566,912.43 | 60,980,195.29 | 10,366,633.20 |
| Impairment allowances for fixed assets | 610,987.16 | 91,648.07 | 610,987.16 | 91,648.07 |
| Total | 2,877,887,344.28 | 438,241,669.12 | 2,674,632,980.64 | 412,057,315.23 |
(2) Deferred Income Tax Liabilities before Offsetting
Unit: RMB
| Item | Closing balance | Opening balance | ||
| Deductible temporary differences | Deferred income tax liabilities | Deductible temporary differences | Deferred income tax liabilities | |
| Incurred by the depreciation of fixed assets of overseas subsidiaries | 12,377,183.94 | 2,104,121.27 | 11,120,885.99 | 1,890,550.20 |
| Federal breaks of state taxes in the U.S. | 8,789,424.12 | 1,494,202.10 | 2,001,968.76 | 340,334.69 |
| Changes in the fair value of held-for-trading financial assets | 3,486,741.05 | 565,295.04 | 4,210,654.74 | 700,453.46 |
| Total | 24,653,349.11 | 4,163,618.41 | 17,333,509.49 | 2,931,338.35 |
(3) Net Balances of Deferred Income Tax Assets/Liabilities after Offsetting
Unit: RMB
| Item | Offset amount between deferred income tax assets and liabilities as at the period-end | Closing balance of deferred income tax assets or liabilities after offsetting | Offset amount between deferred income tax assets and liabilities as at the period-begin | Opening balance of deferred income tax assets or liabilities after offsetting |
| Deferred income tax assets | 438,241,669.12 | 412,057,315.23 | ||
| Deferred income tax liabilities | 4,163,618.41 | 2,931,338.35 |
(4) Breakdown of Deferred Income Tax Assets Unrecognized
Unit: RMB
| Item | Closing balance | Opening balance |
| Deductible losses | 262,865,271.34 | 325,504,325.38 |
| Credit impairment allowances | 20,188,166.98 | 39,129,470.74 |
| Asset impairment allowances | 3,726,480.71 | |
| Inventory valuation allowances | 591,588.71 | 221,541.68 |
| Impairment allowances for fixed assets | 8,097.49 | 8,097.49 |
| Total | 287,379,605.23 | 364,863,435.29 |
(5) Deductible losses on which deferred income tax assets were unrecognized will expire in the followingyears:
Unit: RMB
| Year | Closing amount | Opening amount | Remark |
| 2020 | 5,253,936.63 | ||
| 2021 | 1,475,132.07 | 1,475,132.07 | |
| 2022 | 35,282,566.54 | 70,565,133.07 | |
| 2023 | 26,816,496.47 | 53,632,992.93 | |
| 2024 | 97,288,565.34 | 194,577,130.68 | |
| 2025 | 102,002,510.92 | ||
| Total | 262,865,271.34 | 325,504,325.38 | -- |
Other information:
(1) Deferred income tax liabilities rose 42.04% as at 31 December 2020 compared to 1 January2020, primarily driven by a larger amount of taxable temporary differences incurred by overseassubsidiaries.
31. Other Non-current Assets
Unit: RMB
| Item | Closing balance | Opening balance | ||||
| Gross amount | Impairment allowance | Carrying amount | Gross amount | Impairment allowance | Carrying amount | |
| Prepayments for properties | 268,329,840.24 | 268,329,840.24 | 193,055,970.41 | 193,055,970.41 | ||
| Cash surrender value of life insurance | 11,105,379.80 | 11,105,379.80 | 8,706,297.60 | 8,706,297.60 | ||
| Total | 279,435,220.04 | 279,435,220.04 | 201,762,268.01 | 201,762,268.01 |
Other information:
(1) Cash surrender value of life insurance referred to the cash amount receivable from theinsurance company on the assumption that HBA, a subsidiary of Singapore Gold Mantis, ceased toprovide life insurance for certain key management personnel on 31 December 2020. The companydid not plan to cease to provide such life insurance for the near future.
(2) Other non-current assets rose 38.50% as at 31 December 2020 compared to 1 January 2020,primarily driven by an increase in prepayments for properties in the current period.
32. Short-term Borrowings
(1) Short-term Borrowings by Type
Unit: RMB
| Item | Closing balance | Opening balance |
| Credit borrowings | 150,000,000.00 | |
| Guaranteed borrowings | 515,747,000.00 | 353,286,000.00 |
| Factored accounts receivable | 103,990,224.42 | 305,317,494.85 |
| Discounted trade acceptance notes | 94,159,267.99 | 65,848,180.26 |
| Accrued interest | 466,680.44 | 1,239,453.64 |
| Total | 714,363,172.85 | 875,691,128.75 |
Notes:
(1) Of the balance of guaranteed borrowings as at the period-end, the Company providedguarantees for loans of USD30,000,000.00 (equivalent to RMB195,747,000.00) from banks toSingapore Gold Mantis, loans of RMB250,000,000.00 from banks to Meiruide, and loans ofRMB70,000,000.00 from banks to Gold Mantis Supply Chain.
(2) There were no overdue short-term borrowings in the closing balance.
(2) Overdue Short-term Borrowings
Overdue short-term borrowings amounted to RMB as at the period-end, with substantial ones as follows:
Unit: RMB
| Lender | Closing balance | Lending rate | Overdue time | Interest rate for overdue amount |
Other information:
33. Held-for-trading Financial Liabilities
Unit: RMB
| Item | Closing balance | Opening balance |
| Of which: | ||
| Of which: |
Other information:
34. Derivative Financial Liabilities
Unit: RMB
| Item | Closing balance | Opening balance |
Other information:
35. Notes Payable
Unit: RMB
| Type | Closing balance | Opening balance |
| Trade acceptance notes | 354,853,516.29 | 254,533,804.30 |
| Bank acceptance notes | 4,322,815,789.95 | 4,291,747,256.62 |
| Accounts payable financing | 193,553,381.44 | 56,239,416.00 |
| Total | 4,871,222,687.68 | 4,602,520,476.92 |
Overdue notes payable amounted to RMB0.00 as at the period-end.
36. Accounts Payable
(1) Breakdown of Accounts Payable
Unit: RMB
| Item | Closing balance | Opening balance |
| Payables for materials | 14,614,508,048.63 | 11,447,745,261.06 |
| Payables for labor services | 2,388,948,158.11 | 1,798,077,521.46 |
| Payables for engineering equipment | 39,589,683.07 | 29,686,016.12 |
| Other payables | 3,861,018.69 | 4,260,700.49 |
| Total | 17,046,906,908.50 | 13,279,769,499.13 |
(2) Substantial Accounts Payable Over 1 Year
Unit: RMB
| Item | Closing balance | Reason for unsettlement or carryforward |
Other information:
37. Advances from Customers
(1) Breakdown of Advances from Customers
Unit: RMB
| Item | Closing balance | Opening balance |
| Engineering advances from customers | ||
| Design advances from customers |
(2) Substantial Advances from Customers Over 1 Year
Unit: RMB
| Item | Closing balance | Reason for unsettlement or carryforward |
38. Contract Liabilities
Unit: RMB
| Item | Closing balance | Opening balance |
| Engineering advances from customers | 644,164,113.54 | 649,488,709.66 |
| Design advances from customers | 169,582,138.15 | 247,340,262.19 |
| Others | 4,597,303.11 | |
| Total | 818,343,554.80 | 896,828,971.85 |
Significant changes in the carrying amounts in the current period and the reasons:
Unit: RMB
| Item | Amount of change | Reason for change |
39. Employee Benefits Payable
(1) Breakdown of Employee Benefits Payable
Unit: RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
| I Short-term remuneration | 1,735,803,281.89 | 2,963,505,126.85 | 3,016,217,906.03 | 1,683,090,502.71 |
| II After-service benefits-defined contribution scheme | 12,270,451.07 | 68,373,091.20 | 62,964,903.75 | 17,678,638.52 |
| Total | 1,748,073,732.96 | 3,031,878,218.05 | 3,079,182,809.78 | 1,700,769,141.23 |
(2) Breakdown of Short-term Remuneration
Unit: RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
| 1. Salaries, bonuses, allowances and subsidies | 1,732,551,863.76 | 2,822,429,969.21 | 2,873,821,710.22 | 1,681,160,122.75 |
| 2. Staff welfare | 72,472,984.06 | 72,472,984.06 | ||
| 3. Social security contributions | 1,652,783.46 | 24,659,372.04 | 25,344,696.50 | 967,459.00 |
| Including: Medical insurance | 1,259,124.46 | 18,896,867.24 | 19,592,521.07 | 563,470.63 |
| Work injury insurance | 47,612.90 | 1,856,750.69 | 1,874,304.68 | 30,058.91 |
| Maternity insurance | 346,046.10 | 3,905,754.11 | 3,877,870.75 | 373,929.46 |
| 4. Housing funds | 140,977.56 | 42,515,439.95 | 42,526,195.91 | 130,221.60 |
| 5. Labor union funds and employee education funds | 1,457,657.11 | 1,427,361.59 | 2,052,319.34 | 832,699.36 |
| Total | 1,735,803,281.89 | 2,963,505,126.85 | 3,016,217,906.03 | 1,683,090,502.71 |
(3) Breakdown of Defined Contribution Schemes
Unit: RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
| 1. Basic pension insurance | 12,197,065.93 | 65,933,707.54 | 60,615,994.30 | 17,514,779.17 |
| 2. Unemployment insurance | 73,385.14 | 2,439,383.66 | 2,348,909.45 | 163,859.35 |
| Total | 12,270,451.07 | 68,373,091.20 | 62,964,903.75 | 17,678,638.52 |
Other information:
40. Taxes and Levies Payable
Unit: RMB
| Item | Closing balance | Opening balance |
| Value added tax | 80,101,991.57 | 73,136,588.85 |
| Corporate income tax | 116,867,138.78 | 157,429,281.38 |
| Individual income tax | 15,331,133.62 | 12,322,683.19 |
| Property tax | 1,763,657.75 | 2,554,114.91 |
| Others | 2,911,955.61 | 11,163,930.55 |
| Total | 216,975,877.33 | 256,606,598.88 |
Other information:
41. Other Payables
Unit: RMB
| Item | Closing balance | Opening balance |
| Dividends payable | 10,574,000.00 | 6,620,000.00 |
| Other payables | 288,908,436.62 | 587,327,128.96 |
| Total | 299,482,436.62 | 593,947,128.96 |
(1) Interest payable
Unit: RMB
| Item | Closing balance | Opening balance |
Substantial overdue interest payable:
Unit: RMB
| Lender | Overdue amount | Reason |
Other information:
(2) Dividends Payable
Unit: RMB
| Item | Closing balance | Opening balance |
| Dividends for ordinary shareholders | 10,574,000.00 | 6,620,000.00 |
| Total | 10,574,000.00 | 6,620,000.00 |
Other information: If there is any substantial dividend payable over 1 year, the reason should be disclosed.
(3) Other Payables
1) Other Payables by Nature
Unit: RMB
| Item | Closing balance | Opening balance |
| Restricted share repurchase obligations | 121,595,650.00 | 132,069,000.00 |
| Security deposits | 107,158,502.19 | 78,173,578.47 |
| Current payables to external entities | 43,329,326.46 | 38,947,180.78 |
| Payables for equity transfer | 530,000.00 | 1,155,000.00 |
| Temporary receipts | 310,039,938.59 | |
| Contributions for restricted shares | 15,793,500.00 | |
| Others | 16,294,957.97 | 11,148,931.12 |
| Total | 288,908,436.62 | 587,327,128.96 |
2) Substantial Other Payables Over 1 Year
Unit: RMB
| Item | Closing balance | Reason for unsettlement or carryforward |
Other information:
(1) Other payables declined 49.58% as at 31 December 2020 compared to 1 January 2020,primarily driven by a larger amount of temporary receipts repaid in the current period.
42. Liabilities Directly Associated with Assets Held for Sale
Unit: RMB
| Item | Closing balance | Opening balance |
Other information:
43. Current Portion of Non-current Liabilities
Unit: RMB
| Item | Closing balance | Opening balance |
| Current portion of long-term borrowings | 51,000,000.00 | 22,000,000.00 |
| Accrued interest | 83,934.28 | |
| Total | 51,083,934.28 | 22,000,000.00 |
Other information:
(1) Of the loans secured with pledge in the total amount of RMB207.1522 million received bythe Company’s controlled subsidiary Xi’an Jinchuang from the Xi’an High-tech Development Zonesub-branch of the Bank of China, RMB11 million will expire in May 2021 and another RMB11million in November 2021. Of the loans secured with pledge in the total amount of RMB708.2366million received by the Company’s controlled subsidiary Shuicheng Ruitong from the Shuichengsub-branch of the Agricultural Development Bank of China, RMB29 million will expire in
December 2021.
(2) Current portion of non-current liabilities rose 132.20% as at as at 31 December 2020compared to 1 January 2020, primarily driven by a larger amount of long-term borrowings due in2021.
44. Other Current Liabilities
Unit: RMB
| Item | Closing balance | Opening balance |
| Output tax to be transferred | 1,292,998,919.56 | 1,096,595,399.65 |
| Loss contracts to be executed | 4,750,127.20 | 11,120,062.80 |
| Total | 1,297,749,046.76 | 1,107,715,462.45 |
Changes in short-term bonds payable:
Unit: RMB
| Bond name | Nominal value | Date of issue | Term | Issued amount | Opening balance | Issued in the current period | Interest accrued based on nominal value | Amortization of premium or discount | Repaid in the current period | Closing balance |
Other information:
(1) The Company established allowances for the anticipated losses on outstanding contracts.Such losses were mainly composed of the portion of the labor and other costs that would beincurred by the anticipated completion of these contracts and exceed the anticipated benefits. TheCompany cannot seek any compensation from any third party for these losses. The Companyanticipated that due to the completion of the project, the anticipated losses of all accrued contractswould be reversed within the next 12 months, so other current liabilities were listed as theprovisions arising from the onerous contracts to be executed.
45. Long-term Borrowings
(1) Long-term Borrowings by Type
Unit: RMB
| Item | Closing balance | Opening balance |
| Borrowings secured with pledge | 835,388,800.00 | 837,152,200.00 |
| Accrued interest | 1,529,553.34 | 1,409,522.30 |
| Total | 836,918,353.34 | 838,561,722.30 |
Notes:
Other information, including the range of interest rates
(1) Breakdown of Long-term Borrowings
| Lender | Start date | End date | Currency | Interest rate (%) | 31 December 2020 | 31 December 2019 |
| Shuicheng sub-branch of the Agricultural Development Bank of China | 2019/6/26 | 2033/6/19 | RMB | 6.37 | 251,000,000.00 | 280,000,000.00 |
| Shuicheng sub-branch of the Agricultural Development Bank of China | 2019/7/26 | 2033/6/19 | RMB | 6.37 | 200,000,000.00 | 200,000,000.00 |
| Shuicheng sub-branch of the Agricultural Development Bank of China | 2019/10/30 | 2033/6/19 | RMB | 6.37 | 150,000,000.00 | 150,000,000.00 |
| Xi’an High-tech Development Zone sub-branch of the Bank of China | 2017/11/28 | 2028/11/29 | RMB | 4.90 | 82,032,000.00 | 94,000,000.00 |
| Xi’an High-tech Development Zone sub-branch of the Bank of China | 2017/11/29 | 2028/11/28 | RMB | 4.90 | 58,368,000.00 | 64,000,000.00 |
| Shuicheng sub-branch of the Agricultural Development Bank of China | 2020/1/2 | 2033/6/19 | RMB | 6.37 | 39,236,600.00 | — |
| Xi’an High-tech Development Zone sub-branch of the Bank of China | 2018/11/29 | 2028/11/28 | RMB | 5.39 | 30,431,496.00 | 33,423,496.00 |
| Xi’an High-tech Development Zone sub-branch of the Bank of China | 2018/11/30 | 2028/11/28 | RMB | 5.39 | 14,320,704.00 | 15,728,704.00 |
| Shuicheng sub-branch of the | 2020/4/21 | 2033/6/19 | RMB | 6.37 | 10,000,000.00 | — |
| Agricultural Development Bank of China | ||||||
| Total | 835,388,800.00 | 837,152,200.00 |
(2) Shuicheng Ruitong, a majority-owned subsidiary of the Company, obtained a pledged loanof RMB679,236,600.00 (wherein, RMB29.00 million was included in the long-term borrowingsdue within one year) from Shuicheng County Sub-branch of Agricultural Development Bank ofChina. This loan was pledged with the income from feasibility gap subsidies receivable byShuicheng Ruitong under the PPP Project (Phase II) Contract for Comprehensive Improvement ofRural Human Settlements in Shuicheng County and was guaranteed by Suzhou Gold MantisEnterprise (Group) Co., Ltd.
(3) Xi'an Jinchuang, a majority-owned subsidiary of the Company, obtained a pledged loan ofRMB207,152,200.00 (wherein, RMB22.00 million was included in the long-term borrowings duewithin one year) from Xi'an High-tech Development Zone Sub-branch of Bank of China Limited.This loan was pledged with the expected returns under the PPP Project Contract for the Xi'anEntrepreneurial Coffee Characteristic Street Reconstruction and Construction.
46. Bonds Payable
(1) Bonds Payable
Unit: RMB
| Item | Closing balance | Opening balance |
(2) Changes in Bonds Payable (Exclusive of Preference Shares, Perpetual Bonds and Other FinancialInstruments Classified as Financial Liabilities)
Unit: RMB
| Bond name | Nominal value | Date of issue | Term | Issued amount | Opening balance | Issued in the current period | Interest accrued based on nominal value | Amortization of premium or discount | Repaid in the current period | Closing balance | |
| Total | -- | -- | -- |
(3) Conditions and Time for Conversion of Convertible Corporate Bonds to Shares
(4) Other Financial Instruments Classified as Financial Liabilities
Basic information about issued and outstanding preference shares, perpetual bonds and other financial instruments as at the
period-end:
Changes in issued and outstanding preference shares, perpetual bonds and other financial instruments as at the period-end:
Unit: RMB
| Issued and outstanding financial instruments | Period-begin | Increase in the current period | Decrease in the current period | Period-end | ||||
| Number | Carrying amount | Number | Carrying amount | Number | Carrying amount | Number | Carrying amount | |
Basis for the classification of other financial instruments as financial liabilities:
Other information:
47. Lease Liabilities
Unit: RMB
| Item | Closing balance | Opening balance |
Other information:
48. Long-term Payables
Unit: RMB
| Item | Closing balance | Opening balance |
(1) Long-term Payables by Nature
Unit: RMB
| Item | Closing balance | Opening balance |
Other information:
(2) Specific Payables
Unit: RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance | Reason for specific payable |
Other information:
49. Long-term Employee Benefits Payable
(1) Long-term Employee Benefits Payable
Unit: RMB
| Item | Closing balance | Opening balance |
(2) Changes in Defined Benefit Schemes
Present value of defined benefit schemes:
Unit: RMB
| Item | Amount incurred in the current period | Amount incurred last year |
Scheme assets:
Unit: RMB
| Item | Amount incurred in the current period | Amount incurred last year |
Net liabilities (net assets) of defined benefit schemes:
Unit: RMB
| Item | Amount incurred in the current period | Amount incurred last year |
Contents, risks, as well as effects on the Company’s future cash flows, time and uncertainty with respect to defined benefit schemes:
Substantial actuarial assumptions and sensitivity analysis of defined benefit schemes:
Other information:
50. Provisions
Unit: RMB
| Item | Closing balance | Opening balance | Reason for provision |
Other information, including substantial assumptions and estimates with respect to significant provisions:
51. Deferred Income
Unit: RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance | Reason for deferred income |
Deferred income associated with government grants:
Unit: RMB
| Liabilities | Opening balance | New government grants in the current period | Amount recognized in non-operating income in the current period | Amount recognized in other income in the current period | Amount offsetting costs and expenses in the current period | Other changes | Closing balance | Related to assets/income |
Other information:
52. Other Non-current Liabilities
Unit: RMB
| Item | Closing balance | Opening balance |
Other information:
53. Share Capital
Unit: RMB
| Opening balance | Increase/decrease in the current period | Closing balance | |||||
| New issues | Shares as dividend converted from profit | Shares as dividend converted from capital reserves | Others | Subtotal | |||
| Total share capital | 2,676,408,689.00 | 8,000,000.00 | -1,050,000.00 | 6,950,000.00 | 2,683,358,689.00 | ||
Other information:
In January 2020, in accordance with the Proposal on the Company's Restricted Share IncentiveScheme in 2018 (Draft) and its Summary reviewed and approved at the 1st Extraordinary GeneralMeeting of the Company in 2018 and the resolution of the 1st Extraordinary Meeting of the 6th Boardof Directors, restricted shares were granted to 14 restricted share incentive objects, including WangZhenlong and Gao Hongqiang, increasing its registered capital by RMB8.00 million toRMB2,684,408,689.In May 2020, in accordance with the resolution of the 2019 Annual General Meeting and theProposal on the Repo and Cancellation of Part of Restricted Shares of the Company which werereviewed and approved at the 5th Meeting of the 6th Board of Directors in 2020, as Yang Peng andXie Jinan, the original incentive objects, had left the Company, the Company repurchased andcanceled 1,050,000 restricted shares granted to them but not yet unlocked, reducing its registeredcapital by RMB1,050,000. After the completion of the repurchase and cancellation, its registeredcapital was changed to RMB2,683,358,689.
54. Other Equity Instruments
(1) Basic Information about Issued and Outstanding Preference Shares, Perpetual Bonds and OtherFinancial Instruments as at the Period-end
(2) Changes in Issued and Outstanding Preference Shares, Perpetual Bonds and Other FinancialInstruments as at the Period-end
Unit: RMB
| Issued and outstanding financial | Period-begin | Increase in the current period | Decrease in the current period | Period-end | ||||
| Number | Carrying | Number | Carrying | Number | Carrying | Number | Carrying | |
| instruments | amount | amount | amount | amount |
Changes in other equity instruments in the current period, reasons for changes, and basis for the relevant accounting treatments:
Other information:
55. Capital Reserves
Unit: RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
| Capital surplus (share capital surplus) | 257,708,926.09 | 67,148,800.00 | 324,857,726.09 | |
| Other capital reserves | 84,466,463.78 | 5,623,192.92 | 46,224,066.59 | 43,865,590.11 |
| Total | 342,175,389.87 | 72,771,992.92 | 46,224,066.59 | 368,723,316.20 |
Other information, including changes in the current period and reasons for changes:
(1) In January 2020, in accordance with the Proposal on the Company's 2018 Restricted ShareIncentive Scheme (Draft) and Its Summary deliberated and approved at the Company's 1stExtraordinary General Meeting of 2018 and the resolution of the 1st Extraordinary Meeting of the6th Board of Directors, the Company granted restricted shares to 14 restricted share incentiveobjects, including Wang Zhenlong and Gao Hongqiang, and increased its registered capital byRMB8.00 million. The issue price per share was RMB4.01, and the total amount of funds raisedwas RMB32.08 million, of which RMB8.00 million were included in share capital and RMB24.08million were included in capital reserves.
(2) RMB43,068,800.00 of other capital reserves accrued from the restricted shares lifted in thefirst phase were transferred to the share capital premium from other capital reserves.
(3) The increase in other capital reserves was due to the share-based payment expense ofRMB3,579,199.92 recognized by the Employee Stock Ownership Plan and the deferred income taxassets of RMB2,043,993.00 recognized in deductible temporary differences.
(4) In May 2020, in accordance with the resolution of the Company's 2019 Annual GeneralMeeting and the Proposal on Repurchase and Cancellation of Some Restricted Shares deliberatedand approved at the 5th Meeting of the 6th Board of Directors of 2020, Yang Peng and Xie Jinjun,the original incentive objects, had left the Company, and the Company repurchased and canceled1,050,000.00 restricted shares granted to them but not yet unlocked, decreasing other capitalreserves by RMB3,139,500.00 accordingly. Other capital reserves were reduced by RMB15,766.59through acquiring the equity of minority shareholders of Jindejin Construction in 2020.
56. Treasury Shares
Unit: RMB
| Item | Opening balance | Increase in the current | Decrease in the current | Closing balance |
| period | period | |||
| Restricted share repurchase obligations | 132,069,000.00 | 32,080,000.00 | 42,553,350.00 | 121,595,650.00 |
| Total | 132,069,000.00 | 32,080,000.00 | 42,553,350.00 | 121,595,650.00 |
Other information, including changes in the current period and reasons for changes:
The increase in treasury shares for the current period was due to the Company's confirmationof its obligation to repurchase the restricted shares granted to 14 restricted share incentive objects,including Wang Zhenlong and Gao Hongqiang, in accordance with the Proposal on the Company's2018 Restricted Share Incentive Scheme (Draft) and Its Summary deliberated and approved at theCompany's 1st Extraordinary General Meeting of 2018 and the resolution of the 1st ExtraordinaryMeeting of the 6th Board of Directors.The reasons for the decrease in treasury shares for the current period are as follows: a) Thenumber of restricted shares unlocked this time was 9,615,000.00 in accordance with the resolutionof the Company's 2019 Annual General Meeting and the Proposal on the Achievement of Liftingthe Restriction Conditions in the First Lifting Restriction Period for the First Grant Portion of the2018 Restricted Share Incentive Scheme; b) In accordance with the resolution of the Company's2019 Annual General Meeting and the Proposal on Repurchase and Cancellation of SomeRestricted Shares deliberated and approved at the 5th Meeting of the 6th Board of Directors of2020, Yang Peng and Xie Jinjun, the original incentive objects, had left the Company and did notmeet the incentive conditions, so the Company repurchased and canceled 1,050,000.00 restrictedshares granted to them but not yet unlocked according to the relevant provisions of the Company'sshare incentive scheme.
57. Other Comprehensive Income
Unit: RMB
| Item | Opening balance | Amount generated in the current period | Closing balance | |||||
| Amount before income tax generated in the current period | Less: amount previously recognized in other comprehensive income and currently transferred to profit or loss | Less: amount previously recognized in other comprehensive income and currently transferred to retained earnings | Less: Income tax expense | After-tax amount attributable to the Company as the parent | After-tax amount attributable to non-controlling interests | |||
| II Other comprehensive income that will be reclassified to profit or loss | 57,504,092.23 | -67,210,472.64 | -64,966,667.89 | -2,243,804.75 | -7,462,575.66 | |||
| Differences arising from the translation of foreign currency-denominated financial statements | 57,504,092.23 | -67,210,472.64 | -64,966,667.89 | -2,243,804.75 | -7,462,575.66 | |||
| Total other comprehensive income | 57,504,092.23 | -67,210,472.64 | -64,966,667.89 | -2,243,804.75 | -7,462,575.66 |
Other information, including adjustments to the initially recognized amounts of hedged items transferred from the effectivegains/losses on cash flow hedges:
58. Specific Reserve
Unit: RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
Other information, including changes in the current period and reasons for changes:
59. Surplus Reserves
Unit: RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
| Statutory surplus reserves | 1,360,046,645.33 | 1,360,046,645.33 | ||
| Reserve funds | 256,728.58 | 256,728.58 | ||
| Enterprise development funds | 128,364.29 | 128,364.29 | ||
| Total | 1,360,431,738.20 | 1,360,431,738.20 |
Notes to surplus reserves, including changes in the current period and reasons for changes:
Pursuant to the Company Law and the Company’s Articles of Association, the Company maycease to set aside staturoy surplus reserves when the amount reaches 50% of the registered capital.Therefore, no statutory surplus reserves were set aside in the current period.
60. Retained Earnings
Unit: RMB
| Item | Current period | Last year |
| Retained earnings as at the end of the prior year before adjustment | 10,853,403,316.80 | 9,236,765,808.55 |
| Adjustment to opening retained earnings (“+” for increase, “-” for decrease) | 34,339,607.55 | |
| Opening retained earnings after adjustment | 10,887,742,924.35 | 9,236,765,808.55 |
| Add: Net profit attributable to owners of the Company as the parent in the current period | 2,373,915,319.52 | 2,349,395,605.96 |
| Less: Statutory surplus reserves set aside | 197,476,359.91 | |
| Dividends payable to ordinary shareholders | 536,461,737.80 | 535,281,737.80 |
| Closing retained earnings | 12,725,196,506.07 | 10,853,403,316.80 |
Details about the adjustments to the opening retained earnings:
1) Retrospective adjustments according to the new provisions of China’s Accounting Standards for Business Enterprises had an effectof RMB on the opening retained earnings.
2) Changes in the accounting policies had an effect of RMB34,339,607.55 on the opening retained earnings.
3) Correction of significant accounting errors had an effect of RMB on the opening retained earnings.
4) Changes in the scope of the consolidated financial statements as a result of business combinations involving entities undercommon control had an effect of RMB on the opening retained earnings.
5) All the other adjustments had an effect of RMB on the opening retained earnings.
61. Operating Revenue and Cost of Sales
Unit: RMB
| Item | Current period | Last year | ||
| Revenue | Costs | Revenue | Costs | |
| Core businesses | 31,167,971,029.28 | 26,041,232,110.79 | 30,792,922,689.83 | 25,157,121,471.54 |
| Other businesses | 75,256,772.76 | 17,203,032.44 | 41,731,840.47 | 7,671,146.11 |
| Total | 31,243,227,802.04 | 26,058,435,143.23 | 30,834,654,530.30 | 25,164,792,617.65 |
Indicate whether the lower of the audited net profit before and after exceptional gains and losses was negative.
□ Yes √ No
Revenue information:
Unit: RMB
| By contract category | Segment 1 | Segment 2 | Total | |
| Of which: | ||||
| Of which: | ||||
| Of which: | ||||
| Of which: | ||||
| Of which: |
| Of which: | ||||
| Of which: | ||||
| Revenue recognized at a point of time | 445,618,706.74 | |||
| Of which: sale of materials | 397,248,440.45 | |||
| Other businesses | 48,370,266.29 | |||
| Revenue recognized in a period of time | 30,797,609,095.30 | |||
| Of which: construction decoration services | 30,770,722,588.83 | |||
| Other businesses | 26,886,506.47 | |||
| Total | 31,243,227,802.04 |
Information related to performance obligations:
(1) Description of performance obligations
The Company was mainly engaged in providing customers with construction decorationservices and sales of commodities. For construction decoration services, the time of performanceobligations was basically consistent with the completion schedule of relevant constructiondecoration projects; for sales of commodities, the Company fulfilled its performance obligationswhen a customer obtained control of the relevant commodities.
(2) Information related to residual performance obligations
The transaction price allocated by the Company to outstanding performance obligations wasRMB27,619.00 million.
Information related to the transaction price allocated to residual performance obligations:
At the end of the Reporting Period, the amount of income corresponding to performance obligations that had been contracted but notyet performed or fulfilled was RMB27,618,801,181.67, of which RMB was expected to be recognized in year , RMBwas expected to be recognized in year , and RMB was expected to be recognized in year .Other information:
(1) Top Five Customers with Respect to Operating Revenue
| Customer | Operating revenue generated from the customer | As a % of the total operating revenue |
| Customer 1 | 6,835,504,535.80 | 21.88 |
| Customer 2 | 1,108,396,916.19 | 3.55 |
| Customer 3 | 344,326,369.83 | 1.10 |
| Customer 4 | 262,020,032.31 | 0.84 |
| Customer 5 | 218,894,281.29 | 0.70 |
| Total | 8,769,142,135.42 | 28.07 |
62. Taxes and Levies
Unit: RMB
| Item | Current period | Last year |
| Urban construction and maintenance tax | 55,855,981.52 | 46,319,546.93 |
| Education surcharges | 41,519,006.73 | 34,598,184.77 |
| Property tax | 8,502,794.69 | 10,285,422.97 |
| Others | 2,300,729.28 | 3,403,046.52 |
| Total | 108,178,512.22 | 94,606,201.19 |
Other information:
63. Selling Expense
Unit: RMB
| Item | Current period | Last year |
| Employee remunerations | 294,401,884.28 | 477,450,034.19 |
| Advertising expense | 21,122,989.52 | 79,284,371.75 |
| Office expense | 15,176,281.47 | 19,874,241.29 |
| Engineering and maintenance expense | 13,474,157.01 | 5,375,199.45 |
| Rental expense | 12,018,057.83 | 14,074,034.11 |
| Travel expense | 7,409,577.77 | 25,525,116.67 |
| Business entertainment expense | 4,723,641.82 | 13,913,412.42 |
| Warehouse management expense | 5,316,033.23 | 9,393,363.80 |
| Others | 2,321,878.37 | 5,904,412.06 |
| Total | 375,964,501.30 | 650,794,185.74 |
Other information:
Selling expense declined 42.23% in 2020 compared to 2019, primarily driven by decreases inthe remuneration of sales staff and advertising expense as a result of the disposal of “Gold MantisHome” subsidiaries in the current period.
64. Administrative Expense
Unit: RMB
| Item | Current period | Last year |
| Employee remunerations | 372,598,225.30 | 554,760,128.43 |
| Depreciation and amortization | 96,738,585.25 | 96,803,408.08 |
| Office expense | 54,265,803.69 | 96,067,570.13 |
| Rental expense | 35,355,434.42 | 101,104,062.39 |
| Professional service charges | 17,910,468.81 | 17,579,509.98 |
| Travel expense | 7,375,073.69 | 21,627,518.85 |
| Expense related to announcements disclosed as a listed company | 4,912,248.79 | 3,506,486.74 |
| Business entertainment expense | 3,775,927.56 | 5,309,900.30 |
| Share-based payments | 3,579,199.92 | 83,287,700.04 |
| Others | 8,335,121.04 | 21,739,085.55 |
| Total | 604,846,088.47 | 1,001,785,370.49 |
Other information:
Administrative expense declined 39.62% in 2020 compared to 2019, primarily driven bydecreases in salaries of management personnel and rental expense as a result of the disposal of“Gold Mantis Home” subsidiaries, as well as a decrease in share-based payments due to the exerciseconditions for the second equity incentive plan not being satisfied, in the current period.
65. R&D Expense
Unit: RMB
| Item | Current period | Last year |
| Employee remunerations | 495,211,608.31 | 449,251,541.77 |
| Material expense | 405,454,506.46 | 360,167,890.71 |
| Depreciation and amortization | 13,029,926.57 | 8,838,063.56 |
| Other expense | 42,086,292.84 | 61,608,627.46 |
| Total | 955,782,334.18 | 879,866,123.50 |
Other information:
66. Finance Costs
Unit: RMB
| Item | Current period | Last year |
| Interest expense | 145,524,591.79 | 142,341,566.80 |
| Less: Interest income | 41,474,553.83 | 26,670,537.36 |
| Net interest expense | 104,050,037.96 | 115,671,029.44 |
| Exchange loss | 12,175,656.00 | 17,055,789.03 |
| Less: Exchange gain | 1,746,689.18 | 8,837,316.53 |
| Net exchange loss | 10,428,966.82 | 8,218,472.50 |
| Bank service charges | 16,687,064.12 | 10,997,277.41 |
| Total | 131,166,068.90 | 134,886,779.35 |
Other information:
67. Other Income
Unit: RMB
| Source of other income | Current period | Last year |
| I Government grants recognized in other income | 51,537,845.33 | 18,708,430.13 |
| Of which: Government grants related to deferred income (related to income) | 120,000.00 | |
| Government grants directly recognized in profit or loss (related to income) | 51,537,845.33 | 18,588,430.13 |
| II Other items related to routine operations and recognized in other income | 3,146,250.49 | 951,654.81 |
| Of which: income of service charges for individual income tax withholding and payment | 2,705,907.39 | 726,275.35 |
| Over-deduction in the calculation of the taxable amount with respect to the input tax | 440,343.10 | 225,379.46 |
| Total | 54,684,095.82 | 19,660,084.94 |
68. Return on Investment
Unit: RMB
| Item | Current period | Last year |
| Return on long-term equity investments measured using the equity method | -9,556,696.62 | -6,162,676.00 |
| Income from the disposal of long-term equity investments | 17,214,943.35 | -24,693,657.12 |
| Income from the disposal of held-for-trading financial assets | 35,183,316.32 | 40,843,523.94 |
| Income derived during the period of holding other non-current financial assets | 887,120.46 | 4,367,000.00 |
| Interest expense on discounted receivables financing | -6,080,300.20 | -4,929,353.47 |
| Income from the disposal of other non-current financial assets | 23,774,839.16 | |
| Total | 37,648,383.31 | 33,199,676.51 |
Other information:
69. Net Gain on Exposure Hedges
Unit: RMB
| Item | Current period | Last year |
Other information:
70. Gain on Changes in Fair Value
Unit: RMB
| Source of gain on changes in fair value | Current period | Last year |
| Held-for-trading financial assets | -723,913.69 | 4,210,654.74 |
| Other non-current financial assets | -64,000,000.00 | |
| Total | -723,913.69 | -59,789,345.26 |
Other information:
Gain on changes in fair value rose significantly in 2020 compared to 2019, primarily driven bya larger loss on changes in the fair value of other non-current financial assets in last year.
71. Credit Impairment Loss
Unit: RMB
| Item | Current period | Last year |
| Loss on uncollectible other receivables | -3,601,882.53 | -8,043,363.13 |
| Loss on uncollectible long-term receivables | -902,874.64 | -14,531,680.93 |
| Loss on uncollectible notes receivable | -136,199,708.59 | -44,096,551.18 |
| Loss on uncollectible accounts receivable | -311,064,791.60 | -138,107,794.47 |
| Loss on uncollectible current portion of | -585,904.50 | -316,988.07 |
| non-current assets | ||
| Total | -452,355,161.86 | -205,096,377.78 |
Other information:
Credit impairment loss declined significantly in 2020 compared to 2019, primarily driven by alarger amount of impairment allowances for financial assets.
72. Asset Impairment Loss
Unit: RMB
| Item | Current period | Last year |
| II Inventory valuation loss and loss on impairments of contract performance costs | -370,047.03 | -3,651.14 |
| XII Loss on impairments of contract assets | 66,443,131.80 | |
| Total | 66,073,084.77 | -3,651.14 |
Other information:
Asset impairment loss rose significantly in 2020 compared to 2019, primarily driven by adecrease in the loss on impairments of contract assets according to the new accounting standardsgoverning revenue.
73. Asset Disposal Income
Unit: RMB
| Source of asset disposal income | Current period | Last year |
| Gains or losses on the disposal of fixed assets, construction in progress, productive living assets and intangible assets that are not classified as assets held for sale: | 114,042.29 | -1,219,850.07 |
| Of which: gains on the disposal of fixed assets | -86,876.56 | -1,068,083.07 |
| Gains on the disposal of intangible assets | 200,918.85 | -151,767.00 |
| Total | 114,042.29 | -1,219,850.07 |
74. Non-operating Income
Unit: RMB
| Item | Current period | Last year | Amount recognized in |
| exceptional gains and losses | |||
| Compensation income | 2,668,000.00 | ||
| Others | 285,660.49 | 2,282,546.95 | 285,660.49 |
| Total | 285,660.49 | 4,950,546.95 | 285,660.49 |
Government grants recognized in profit or loss:
Unit: RMB
| Government grant | Giver | Reason | Nature | Whether the grant turned the current profit to loss or otherwise | Special grant or not | Amount in the current period | Amount in last year | Related to assets/income |
Other information:
(1) Non-operating income declined 94.23% in 2020 compared to 2019, primarily driven by alarger amount of current accounts that required no payment for a long term being cleared in lastyear.
75. Non-operating Expense
Unit: RMB
| Item | Current period | Last year | Amount recognized in exceptional gains and losses |
| Donations | 3,020,000.00 | 3,002,930.00 | 3,020,000.00 |
| Loss on the retirement of fixed assets | 627,978.98 | 593,033.19 | 627,978.98 |
| Others | 650,761.35 | 937,487.15 | 650,761.35 |
| Total | 4,298,740.33 | 4,533,450.34 | 4,298,740.33 |
Other information:
76. Income Tax Expense
(1) Income Tax Expense
Unit: RMB
| Item | Current period | Last year |
| Current income tax expense | 392,581,912.71 | 487,731,992.41 |
| Deferred income tax expense | -22,908,080.83 | -53,345,670.94 |
| Total | 369,673,831.88 | 434,386,321.47 |
(2) Reconciliation between Accounting Profit and Income Tax Expense
Unit: RMB
| Item | Current period |
| Gross profit | 2,710,282,604.54 |
| Income tax expense based on the statutory/applicable tax rates | 406,542,390.68 |
| Effects of different tax rates of subsidiaries | 10,153,600.55 |
| Effects of adjustments to income tax of the prior period | 412,552.31 |
| Effects of non-deductible costs, expenses and losses | 32,723,291.07 |
| Effects of deductible temporary differences or losses on which deferred income tax assets are unrecognized in the current period | 19,370,957.52 |
| Over-deduction in the calculation of the taxable amount in relation to R&D expense | -99,528,960.25 |
| Income tax expense | 369,673,831.88 |
Other information:
77. Other comprehensive income
See Note “VII 57. Other Comprehensive Income”.
78. Items of the Cash Flow Statement
(1) Cash Generated from Other Operating Activities
Unit: RMB
| Item | Current period | Last year |
| Government grants | 54,243,752.72 | 19,314,705.48 |
| Security deposits | 38,639,283.63 | 12,164,458.38 |
| Current accounts | 272,932,984.67 | |
| Others | 285,660.49 | 4,950,546.95 |
| Total | 93,168,696.84 | 309,362,695.48 |
Notes:
(2) Cash Used in Other Operating Activities
Unit: RMB
| Item | Current period | Last year |
| Current accounts | 300,985,139.99 | |
| Office expense | 69,442,085.16 | 115,941,811.42 |
| Rental expense | 47,373,492.25 | 115,178,096.50 |
| Advertising expense | 21,122,989.52 | 79,284,371.75 |
| Professional service charges | 17,910,468.81 | 17,579,509.98 |
| Travel expense | 14,784,651.46 | 47,152,635.52 |
| Engineering and maintenance expense | 13,474,157.01 | 5,375,199.45 |
| Business entertainment expense | 8,499,569.38 | 19,223,312.72 |
| Warehouse management expense | 5,316,033.23 | 9,393,363.80 |
| Others | 32,422,342.72 | 55,501,534.83 |
| Total | 531,330,929.53 | 464,629,835.97 |
Notes:
(3) Cash Generated from Other Investing Activities
Unit: RMB
| Item | Current period | Last year |
| Interest income | 40,803,606.39 | 28,232,114.75 |
| Total | 40,803,606.39 | 28,232,114.75 |
Notes:
(4) Cash Used in Other Investing Activities
Unit: RMB
| Item | Current period | Last year |
Notes:
(5) Cash Generated from Other Financing Activities
Unit: RMB
| Item | Current period | Last year |
| Frozen bank deposits | 8,947,438.58 | |
| Total | 8,947,438.58 |
Notes:
(6) Cash Used in Other Financing Activities
Unit: RMB
| Item | Current period | Last year |
| Frozen bank deposits | 25,511,610.47 |
| Total | 25,511,610.47 |
Notes:
79. Supplementary Information to the Cash Flow Statement
(1) Supplementary Information to the Cash Flow Statement
Unit: RMB
| Supplementary information | Current period | Last year |
| 1. Reconciliation of net profit to net cash generated from/used in investing activities: | -- | -- |
| Net profit | 2,340,608,772.66 | 2,260,704,564.72 |
| Add: Asset impairment allowances | 386,282,077.09 | 205,100,028.92 |
| Depreciation of fixed assets, depletion of oil and gas assets, and depreciation of productive living assets | 58,820,036.99 | 60,985,956.45 |
| Depreciation of right-of-use assets | ||
| Amortization of intangible assets | 9,996,064.73 | 11,453,586.40 |
| Amortization of long-term prepaid expense | 60,823,876.16 | 78,668,662.21 |
| Loss on the disposal of fixed assets, intangible assets and other long-term assets (“-” for gain) | -114,042.29 | 1,219,850.07 |
| Loss on the retirement of fixed assets (“-” for gain) | 627,978.98 | 593,033.19 |
| Loss on changes in fair value (“-” for gain) | 723,913.69 | 59,789,345.26 |
| Finance costs (“-” for income) | 114,479,004.78 | 123,889,501.94 |
| Loss on investment (“-” for income) | -37,648,383.31 | -33,199,676.51 |
| Decrease in deferred income tax assets (“-” for increase) | -24,140,360.89 | -54,169,370.60 |
| Increase in deferred income tax liabilities (“-” for decrease) | 1,232,280.06 | -355,064.07 |
| Decrease in inventories (“-” for increase) | 47,132,200.21 | 66,478,131.93 |
| Decrease in operating receivables (“-” for increase) | -5,414,546,457.53 | -5,098,334,086.39 |
| Increase in operating payables | 4,229,259,080.91 | 3,989,107,819.15 |
| (“-” for decrease) | ||
| Others | 3,579,199.92 | 83,287,700.04 |
| Net cash generated from/used in operating activities | 1,777,115,242.16 | 1,755,219,982.71 |
| 2. Significant investing and financing activities that involve no cash proceeds or payments: | -- | -- |
| Conversion of debt to capital | ||
| Current portion of convertible corporate bonds | ||
| Fixed assets leased in in finance leases | ||
| 3. Net changes in cash and cash equivalents: | -- | -- |
| Closing balance of cash | 6,354,809,671.18 | 6,051,660,327.62 |
| Less: Opening balance of cash | 6,051,660,327.62 | 3,069,373,348.80 |
| Add: Closing balance of cash equivalents | ||
| Less: Opening balance of cash equivalents | ||
| Net increase in cash and cash equivalents | 303,149,343.56 | 2,982,286,978.82 |
(2) Net Cash Payments for the Acquisition of Subsidiaries in the Current Period
Unit: RMB
| Amount | |
| Of which: | -- |
| Of which: | -- |
| Of which: | -- |
Other information:
(3) Net Cash Proceeds from the Disposal of Subsidiaries in the Current Period
Unit: RMB
| Amount | |
| Cash or cash equivalents received in the current period from the disposal of subsidiaries in the current period | 18,588,895.83 |
| Of which: | -- |
| Of which: | -- |
| Of which: | -- |
| Net cash proceeds from the disposal of subsidiaries | 18,588,895.83 |
Other information:
(4) Breakdown of Cash and Cash Equivalents
Unit: RMB
| Item | Closing balance | Opening balance |
| I Cash | 6,354,809,671.18 | 6,051,660,327.62 |
| Of which: Cash on hand | 1,518,895.79 | 2,317,047.77 |
| Bank deposits that can be readily drawn on demand | 5,254,913,683.74 | 5,072,367,997.44 |
| Other monetary assets that can be readily drawn on demand | 1,098,377,091.65 | 976,975,282.41 |
| III Cash and cash equivalents, end of the period | 6,354,809,671.18 | 6,051,660,327.62 |
Other information:
Cash and cash equivalents at the period-end excluded frozen bank deposits ofRMB16,564,171.89 and the accrued interest of RMB1,258,002.65, and cash and cash equivalents atthe period-begin excluded frozen bank deposits of RMB25,511,610.47 and the accrued interest ofRMB587,055.21.
80. Notes to Changes in Owners’ Equity
Items and adjusted amounts in “others” with respect to adjustments to the closing balance of last year:
81. Assets with Restricted Ownership or Rights-of-Use
Unit: RMB
| Item | Closing carrying amount | Reason for restriction |
| Monetary assets | 16,564,171.89 | Frozen by court of law |
| Notes receivable | 1,300,000.00 | Put in pledge for notes issuing |
| Notes receivable | 1,901,286,639.74 | Un-derecognized endorsed or discounted commercial notes |
| Accounts receivable | 103,990,224.42 | Un-derecognized factored accounts receivable |
| Receivables financing | 82,472,805.60 | Put in pledge for notes issuing |
| Total | 2,105,613,841.65 | -- |
Other information:
82. Monetary Items Denominated in Foreign Currencies
(1) Monetary Items Denominated in Foreign Currencies
Unit: RMB
| Item | Closing balance in foreign currency | Exchange rate | Closing balance in RMB |
| Monetary assets | -- | -- | 570,578,604.38 |
| Of which: USD | 63,547,161.55 | 6.5249 | 414,638,874.40 |
| EUR | 173,860.01 | 8.0250 | 1,395,226.58 |
| HKD | 25,362,615.36 | 0.8416 | 21,345,177.09 |
| INR | 373,768,605.55 | 0.0894 | 33,414,913.34 |
| NZD | 4,471,148.69 | 4.9314 | 22,049,022.65 |
| GBP | 2,321,106.77 | 8.8903 | 20,635,335.52 |
| Peso | 89,067,923.52 | 0.1358 | 12,095,424.01 |
| VDN | 31,765,596,549.00 | 0.0003 | 9,529,678.96 |
| LKR | 247,525,314.57 | 0.0352 | 8,712,891.07 |
| AED | 4,605,039.24 | 1.7777 | 8,186,378.26 |
| PHP | 52,743,149.87 | 0.1358 | 7,162,519.75 |
| JPY | 80,333,391.84 | 0.0632 | 5,077,070.36 |
| IDR | 6,677,112,867.20 | 0.0005 | 3,338,556.43 |
| MYR | 873,339.57 | 1.6230 | 1,417,430.12 |
| KRW | 147,006,638.94 | 0.0060 | 882,039.83 |
| THB | 2,287,637.73 | 0.2179 | 498,476.26 |
| RUB | 1,518,752.75 | 0.0877 | 133,194.62 |
| AUD | 10,783.13 | 5.0163 | 54,091.42 |
| YTL | 7,199.02 | 0.8837 | 6,361.77 |
| CHF | 802.90 | 7.4006 | 5,941.94 |
| Accounts receivable | -- | -- | 510,490,705.59 |
| Of which: USD | 45,864,791.43 | 6.5249 | 299,263,177.60 |
| EUR | |||
| HKD | 182,121,049.60 | 0.8416 | 153,273,075.34 |
| Peso | 160,377,255.27 | 0.1358 | 21,779,231.27 |
| AED | 2,414,009.70 | 1.7777 | 4,291,385.04 |
| SGD | 752,025.06 | 4.9314 | 3,708,536.38 |
| VDN | 93,917,666,532.70 | 0.0003 | 28,175,299.96 |
| Long-term borrowings | -- | -- | |
| Of which: USD | |||
| EUR | |||
| HKD | |||
| Other receivables | 43,708,590.49 | ||
| Of which: AED | 809,690.22 | 1.7777 | 1,439,386.30 |
| HKD | 16,062,828.77 | 0.8416 | 13,518,476.69 |
| USD | 4,352,996.00 | 6.5249 | 28,402,863.60 |
| LKR | 4,102,902.55 | 0.03517 | 144,299.08 |
| SGD | 24,300.00 | 4.9314 | 119,833.02 |
| VDN | 279,106,000.00 | 0.0003 | 83,731.80 |
| Accounts payable | 213,950,991.90 | ||
| Of which: Peso | 110,668,483.80 | 0.1358 | 15,028,780.10 |
| AED | 130,880.25 | 1.7777 | 232,665.82 |
| HKD | 145,438,796.60 | 0.8416 | 122,401,291.22 |
| USD | 8,747,400.00 | 6.5249 | 57,075,910.26 |
| VDN | 64,041,148,331.28 | 0.0003 | 19,212,344.50 |
| Other payables | 167,771,375.72 | ||
| Of which: Peso | 133,428.29 | 0.1358 | 18,119.56 |
| AED | 4,266,766.23 | 1.7777 | 7,585,030.33 |
| HKD | 103,820,984.18 | 0.8416 | 87,375,740.29 |
| USD | 10,333,887.31 | 6.5249 | 67,427,581.31 |
| LKR | 280,079.39 | 0.03517 | 9,850.39 |
| SGD | 17,943.02 | 4.9314 | 88,484.21 |
| VDN | 17,555,232,091.71 | 0.0003 | 5,266,569.63 |
| Short-term borrowings | 195,747,000.00 | ||
| Of which: USD | 30,000,000.00 | 6.5249 | 195,747,000.00 |
Other information:
(2) Overseas Business Entities (for substantial overseas business entities, the following information shall bedisclosed: principal place of business, functional currency and basis for the choice, change of functionalcurrency and reasons)
√ Applicable □ Not applicable
| Serial No. | Overseas business entities | Principal place of business | Functional currency |
| 1 | Singapore Gold Mantis Pte. Ltd. | Singapore | SGD |
| 2 | HBA Holdings Pte. Ltd. | Singapore | USD |
| 3 | Gold Mantis (International) Construction Decoration Limited | Hong Kong, China | HKD |
| 4 | Russia Gold Mantis Construction Decoration Co., Ltd. | Russia | RUB |
| 5 | JTL Fit Out Middle East L.L.C. | Dubai | AED |
| 6 | Gold Mantis Construction Decoration (CNMI), LLC | Northern Mariana Islands | USD |
| 7 | Gold Mantis Building Decoration (Cambodia) Co., Ltd. | Cambodia | USD |
| 8 | Gold Mantis International Development Pte. Ltd. | Singapore | SGD |
| 9 | Gold Mantis (Vietnam) Construction Company Limited | Vietnam | VDN |
| 10 | Gold Mantis (HK) Construction Decoration Limited | Hong Kong, China | HKD |
| 11 | Gold Mantis (Lanka) Construction (Private) Limited | Sri Lanka | LKR |
| 12 | Sierra Gold Mantis Joint Venture (Private) Limited | Sri Lanka | LKR |
| 13 | GMI Construction Corp. | The Phillipines | PHP |
| 14 | M+ Design Associates Pte. Ltd. | Singapore | SGD |
| 15 | GMI International Inc. | The Phillipines | PHP |
83. Hedges
Hedged items by type and the relevant hedging instruments, as well as the qualitative and quantitative information of the hedgedrisks:
84. Government Grants
(1) Basic Information of Government Grants
Unit: RMB
| Type | Amount | Recognized in | Amount recognized in profit or loss |
| Pandemic-related subsidies | 38,451,162.89 | Other income | 38,451,162.89 |
| Employment stability subsidies | 5,231,811.57 | Other income | 3,404,599.39 |
| Rebates of individual income tax | 3,432,182.74 | Other income | 2,705,907.39 |
| Anti-pandemic training subsidies | 2,611,500.00 | Other income | 2,611,500.00 |
| Policy support funds for the service industry | 2,750,000.00 | Other income | 2,500,000.00 |
| Rewards for excellent enterprises | 1,040,000.00 | Other income | 740,000.00 |
| Internship subsidies | 2,319,104.00 | Other income | 646,258.00 |
| R&D subsidies | 10,198,348.06 | Other income | 600,000.00 |
| Rewards for superior national enterprises for demonstration in relation to intellectual properties | 1,396,500.00 | Other income | 596,500.00 |
| Over-deduction in the calculation of the taxable amount with respect to value added tax | 665,722.56 | Other income | 440,343.10 |
| Subsidies for the development of the cultural industry | 420,000.00 | Other income | 420,000.00 |
| Cultural and sports guiding funds | 900,000.00 | Other income | 400,000.00 |
| Comprehensive rewards for high-quality development | 700,000.00 | Other income | 300,000.00 |
| Rewards for talent projects | 750,821.50 | Other income | 247,500.00 |
| Patent subsidies | 452,470.00 | Other income | 229,470.00 |
| Training subsidies | 52,000.00 | Other income | 52,000.00 |
| Energy conservation and emission reduction guiding funds | 1,500,000.00 | Other income | |
| The second batch of rewards of 2018 of the Publicity Department | 580,000.00 | Other income | |
| Internship base subsidies | 176,312.00 | Other income | |
| Others | 596,245.44 | Other income | 338,855.05 |
| Total | 74,224,180.76 | 54,684,095.82 |
(2) Government Grants Returned
□ Applicable √ Not applicable
Other information:
Note: HBA, a majority-owned subsidiary of the Company’s subsidiary Singapore Gold Mantisreceived pandemic-related government grants in the total amount of RMB38,451,162.89 in 2020.
85. Other
VIII Changes in the Scope of the Consolidated Financial Statements
1. Business Combinations Not Involving Entities under Common Control
(1) Business Combinations Not Involving Entities under Common Control in the Current Period
Unit: RMB
| Acquiree | Time of obtaining the equity interests | Cost | Equity-holding percentage | Way of obtaining the equity interests | Date of acquisition | Basis for the determination of the acquisition date | Revenue of the acquiree from the date of acquisition to the period-end | Net profit of the acquiree from the date of acquisition to the period-end |
Other information:
(2) Cost of Acquisition and Goodwill
Unit: RMB
| Cost of acquisition |
Method for the determination of the fair value of the cost of acquisition, contingent consideration and changes:
Primary reasons for goodwill of a large amount:
Other information:
(3) Identifiable Assets and Liabilities of Acquirees on the Date of Acquisition
Unit: RMB
| Fair value at the date of acquisition | Carrying amount at the date of acquisition | |
Method for the determination of the fair value of the identifiable assets and liabilities:
Contingent liabilities of acquirees in business combinations borne by the Company:
Other information:
(4) Gains or Losses Arising from the Remeasurement at Fair Value of Equity Interests Held before theDates of AcquisitionIndicate whether there were business combinations which were achieved by stages and of which control was obtained in the
Reporting Period.
□ Yes √ No
(5) Inability to Reasonably Determine the Acquisition Consideration or the Fair Value of Acquirees’Identifiable Assets and Liabilities at Acquisition Dates or the Period-ends of the Combinations
(6) Other information:
2. Business Combinations Involving Entities under Common Control
(1) Business Combinations Involving Entities under Common Control in the Current Period
Unit: RMB
| Acquiree | Equity percentage obtained in the business combination | Basis for constituting a business combination involving entities under common control | Date of acquisition | Basis for the determination of the acquisition date | Revenue of the acquiree from the period-begin of the combination to the acquisition date | Net profit of the acquiree from the period-begin of the combination to the acquisition date | Revenue of the acquiree in the comparative period | Net profit of the acquiree in the comparative period |
Other information:
(2) Cost of Acquisition
Unit: RMB
| Cost of acquisition |
Contingent considerations and changes:
Other information:
(3) Carrying Amounts of Acquirees’ Assets and Liabilities at Dates of Acquisition
Unit: RMB
| Date of acquisition | End of last year | |
Contingent liabilities of acquirees in business combinations borne by the Company:
Other information:
3. Counter-purchases
Basic transaction information, basis for the constitution of a counter-purchase, assets retained by the Company, whether the liabilities
constitute business and why, determination of the cost of combination, adjustments to equities and computing when treating thetransaction as an equity transaction:
4. Disposal of Subsidiaries
Indicate whether there was any transaction where the Company ceased to control the subsidiary in a single disposal of its investmentin the subsidiary.
√ Yes □ No
Unit: RMB
| Subsidiary | Equity disposal price | Equity percentage disposed of | Way of disposal | Time of cease of control | Basis for the determination of the time of cease of control | Difference between the disposal price and the share of net assets of the subsidiary in the consolidated financial statements corresponding to the disposed investment | Remaining equity percentage on the date of cease of control | Carrying amount of the remaining equity-holdings on the date of cease of control | Fair value of the remaining equity-holdings on the date of cease of control | Gain/loss on remeasurement of the remaining equity-holdings at fair value | Method for the determination of the fair value of the remaining equity-holdings on the date of cease of control and major assumptions | Amount transferred from other comprehensive income related to the previous equity investment in the subsidiary to return on investment |
| NantongGold Mantis Home E-commerce Co., Ltd. | 697,500.00 | 70.00% | Equity transfer | 31 January 2020 | Earlier of de-registration and over 50% payment of the transfer price | -541,970.34 | 0.00% |
| AnkangGold Mantis Home E-commerce Co., Ltd. | 428,800.00 | 60.00% | Equity transfer | 31 January 2020 | Earlier of de-registration and over 50% payment of the transfer price | -24,343.97 | 0.00% | |||||
| Baoji Gold Mantis Home E-commerce Co., Ltd. | 577,700.00 | 51.00% | Equity transfer | 31 January 2020 | Earlier of de-registration and over 50% payment of the transfer price | -373,770.44 | 0.00% | |||||
| QingdaoGold Mantis Home E-commerce Co., Ltd. | 1.00 | 77.50% | Equity transfer | 31 January 2020 | Earlier of de-registration and over 50% payment of the transfer price | -2,632,648.22 | 0.00% | |||||
| Leshan Gold Mantis Home E-commerce Co., Ltd. | 0.00 | 51.00% | Equity transfer | 28 February 2020 | Earlier of de-registration and over 50% payment of the transfer price | -567,785.36 | 0.00% | |||||
| TaizhouGold Mantis | 0.00 | 75.00% | Equity transfer | 28 February 2020 | Earlier of de-regist | 2,167,355.98 | 0.00% |
| Home E-commerce Co., Ltd. | ration and over 50% payment of the transfer price | |||||||||||
| NanjingGold Mantis Home Decoration E-commerce Co., Ltd. | 1.00 | 70.00% | Equity transfer | 31 March 2020 | Earlier of de-registration and over 50% payment of the transfer price | -743,751.67 | 0.00% | |||||
| Zhengzhou Gold Mantis Home E-commerce Co., Ltd. | 910,900.00 | 88.00% | Equity transfer | 31 March 2020 | Earlier of de-registration and over 50% payment of the transfer price | -717,208.07 | 0.00% | |||||
| Jining Gold Mantis Home E-commerce Co., Ltd. | 300,000.00 | 51.00% | Equity transfer | 31 March 2020 | Earlier of de-registration and over 50% payment of the transfer price | -116,852.86 | 0.00% | |||||
| Changshu Gold Mantis Home E-commerce Co., | 1,728,930.00 | 70.00% | Equity transfer | 30 April 2020 | Earlier of de-registration and over 50% | 835,947.90 | 0.00% |
| Ltd. | payment of the transfer price | |||||||||||
| KunshanGold Mantis Home E-commerce Co., Ltd. | 2,259,600.00 | 70.00% | Equity transfer | 30 April 2020 | Earlier of de-registration and over 50% payment of the transfer price | -803,156.54 | 0.00% | |||||
| Yancheng Gold Mantis Home E-commerce Co., Ltd. | 1.00 | 70.00% | Equity transfer | 30 April 2020 | Earlier of de-registration and over 50% payment of the transfer price | -333,103.62 | 0.00% | |||||
| Jinhua Gold Mantis Home E-commerce Co., Ltd. | 1.00 | 51.00% | Equity transfer | 30 April 2020 | Earlier of de-registration and over 50% payment of the transfer price | 119,525.82 | 0.00% | |||||
| Linyi Gold Mantis Home E-commerce Co., Ltd. | 550,000.00 | 55.00% | Equity transfer | 30 April 2020 | Earlier of de-registration and over 50% payment of the transfer | -111,127.44 | 0.00% |
| price | ||||||||||||
| Langfang Gold Mantis Home E-commerce Co., Ltd. | 712,100.00 | 51.00% | Equity transfer | 30 April 2020 | Earlier of de-registration and over 50% payment of the transfer price | -134,856.15 | 0.00% | |||||
| HandanGold Mantis Home E-commerce Co., Ltd. | 1.00 | 51.00% | Equity transfer | 30 April 2020 | Earlier of de-registration and over 50% payment of the transfer price | 359,811.95 | 0.00% | |||||
| Suqian Gold Mantis Home E-commerce Co., Ltd. | 1.00 | 80.00% | Equity transfer | 30 April 2020 | Earlier of de-registration and over 50% payment of the transfer price | 930,402.25 | 0.00% | |||||
| Zhuhai Gold Mantis Home E-commerce Co., Ltd. | 316,569.00 | 51.00% | Equity transfer | 30 April 2020 | Earlier of de-registration and over 50% payment of the transfer price | 50,556.88 | 0.00% | |||||
| Taixing Gold | 1.00 | 70.00% | Equity transfer | 30 April 2020 | Earlier of | 81,251.21 | 0.00% |
| Mantis Home E-commerce Co., Ltd. | de-registration and over 50% payment of the transfer price | |||||||||||
| LanzhouGold Mantis Home E-commerce Co., Ltd. | 1,092,450.00 | 70.00% | Equity transfer | 30 April 2020 | Earlier of de-registration and over 50% payment of the transfer price | -32,443.92 | 0.00% | |||||
| HuaihuaGold Mantis Home E-commerce Co., Ltd. | 1.00 | 51.00% | Equity transfer | 30 April 2020 | Earlier of de-registration and over 50% payment of the transfer price | -106,338.92 | 0.00% | |||||
| XinxiangGold Mantis Home E-commerce Co., Ltd. | 555,000.00 | 51.00% | Equity transfer | 30 April 2020 | Earlier of de-registration and over 50% payment of the transfer price | 552,558.78 | 0.00% | |||||
| Siyang Gold Mantis Home E-comm | 923,900.00 | 51.00% | Equity transfer | 30 April 2020 | Earlier of de-registration and over | -97,997.46 | 0.00% |
| erce Co., Ltd. | 50% payment of the transfer price | |||||||||||
| Shenzhen Gold Mantis Home Decoration Co., Ltd. | 1,452,600.00 | 51.00% | Equity transfer | 30 April 2020 | Earlier of de-registration and over 50% payment of the transfer price | 660,330.82 | 0.00% | |||||
| ShanghaiQingchan Space Decoration Design and Engineering Co., Ltd. | 1,000,000.00 | 70.00% | Equity transfer | 31 May 2020 | Earlier of de-registration and over 50% payment of the transfer price | 988,376.19 | 0.00% | |||||
| Wuxi Gold Mantis Home E-commerce Co., Ltd. | 3,410,700.00 | 70.00% | Equity transfer | 31 May 2020 | Earlier of de-registration and over 50% payment of the transfer price | 481,572.27 | 0.00% | |||||
| Zhongshan Gold Mantis Home E-commerce Co., Ltd. | 2,308,370.65 | 70.00% | Equity transfer | 31 May 2020 | Earlier of de-registration and over 50% payment of the | 377,432.16 | 0.00% |
| transfer price | ||||||||||||
| BinzhouGold Mantis Home E-commerce Co., Ltd. | 918,600.00 | 51.00% | Equity transfer | 31 May 2020 | Earlier of de-registration and over 50% payment of the transfer price | 303,257.22 | 0.00% | |||||
| Yangzhong Gold Mantis Home E-commerce Co., Ltd. | 1,044,738.66 | 51.00% | Equity transfer | 31 May 2020 | Earlier of de-registration and over 50% payment of the transfer price | 411,995.01 | 0.00% | |||||
| Suzhou Gold Mantis Home E-commerce Co., Ltd. | 1,200,000.00 | 78.00% | Equity transfer | 31 May 2020 | Earlier of de-registration and over 50% payment of the transfer price | 334,344.24 | 0.00% | |||||
| Changzhou Gold Mantis Home E-commerce Co., Ltd. | 2,093,500.00 | 70.00% | Equity transfer | 31 May 2020 | Earlier of de-registration and over 50% payment of the transfer price | 92,537.62 | 0.00% | |||||
| Ningguo | 1.00 | 100.00% | Equity | 31 May | Earlier | 1,344,23 | 0.00% |
| Gold Mantis Home E-commerce Co., Ltd. | transfer | 2020 | of de-registration and over 50% payment of the transfer price | 1.44 | ||||||||
| Yibin Gold Mantis Home E-commerce Co., Ltd. | 0.00 | 51.00% | Equity transfer | 31 May 2020 | Earlier of de-registration and over 50% payment of the transfer price | -522,515.68 | 0.00% | |||||
| ShanghaiGold Mantis Home E-commerce Co., Ltd. | 1,100,000.00 | 98.72% | Equity transfer | 30 June 2020 | Earlier of de-registration and over 50% payment of the transfer price | 2,230,780.65 | 0.00% | |||||
| XuzhouGold Mantis Home E-commerce Co., Ltd. | 1,156,900.00 | 70.00% | Equity transfer | 30 June 2020 | Earlier of de-registration and over 50% payment of the transfer price | 3,081,067.84 | 0.00% | |||||
| Wuhu Gold Mantis Home | 750,000.00 | 51.00% | Equity transfer | 30 June 2020 | Earlier of de-registration | 544,176.57 | 0.00% |
| E-commerce Co., Ltd. | and over 50% payment of the transfer price | |||||||||||
| Gold Mantis Home (Shanghai) Decoration Co., Ltd. | 1.00 | 100.00% | Equity transfer | 30 June 2020 | Earlier of de-registration and over 50% payment of the transfer price | 664,376.19 | 0.00% | |||||
| DanyangGold Mantis Home E-commerce Co., Ltd. | 1,530,000.00 | 51.00% | Equity transfer | 30 June 2020 | Earlier of de-registration and over 50% payment of the transfer price | 774,640.67 | 0.00% | |||||
| Ma’anshan Gold Mantis Home E-commerce Co., Ltd. | 0.00 | 0.00% | Equity transfer | 30 June 2020 | Earlier of de-registration and over 50% payment of the transfer price | 1,776,282.05 | 0.00% | |||||
| Lianyungang Gold Mantis Home E-commerce Co., | 2,760,500.00 | 80.00% | Equity transfer | 30 June 2020 | Earlier of de-registration and over 50% payment | 792,026.05 | 0.00% |
| Ltd. | of the transfer price | |||||||||||
| Yiwu Gold Mantis Home E-commerce Co., Ltd. | 1,700,000.00 | 51.00% | Equity transfer | 30 June 2020 | Earlier of de-registration and over 50% payment of the transfer price | 44,146.83 | 0.00% | |||||
| Zhuji Gold Mantis Home E-commerce Co., Ltd. | 95,000.00 | 51.00% | Equity transfer | 30 June 2020 | Earlier of de-registration and over 50% payment of the transfer price | 191,964.33 | 0.00% | |||||
| Qujing Gold Mantis Home E-commerce Co., Ltd. | 1.00 | 51.00% | Equity transfer | 30 June 2020 | Earlier of de-registration and over 50% payment of the transfer price | 97,461.70 | 0.00% | |||||
| HuainanGold Mantis Home Decoration Engineering Co., Ltd. | 450,000.00 | 70.00% | Equity transfer | 30 June 2020 | Earlier of de-registration and over 50% payment of the transfer price | -444,407.55 | 0.00% |
| WuzhouGold Mantis Home E-commerce Co., Ltd. | 428,000.00 | 51.00% | Equity transfer | 30 June 2020 | Earlier of de-registration and over 50% payment of the transfer price | -396.05 | 0.00% | |||||
| Jinan Gold Mantis Home E-commerce Co., Ltd. | 1,042,000.00 | 70.00% | Equity transfer | 31 July 2020 | Earlier of de-registration and over 50% payment of the transfer price | -703,366.79 | 0.00% | |||||
| SanmingGold Mantis Home E-commerce Co., Ltd. | 258,600.00 | 70.00% | Equity transfer | 31 August 2020 | Earlier of de-registration and over 50% payment of the transfer price | -577,613.43 | 0.00% | |||||
| Xi’an Gold Mantis Home E-commerce Co., Ltd. | 388,300.00 | 80.00% | Equity transfer | 31 August 2020 | Earlier of de-registration and over 50% payment of the transfer price | -1,916,093.27 | 0.00% | |||||
| Hefei Gold Mantis | 0.00 | 100.00% | De-registration | 31 December 2020 | Time of de-registration | 459,496.35 | 0.00% |
| Home E-commerce Co., Ltd. | ||||||||||||
| BaodingGold Mantis Home E-commerce Co., Ltd. | 0.00 | 51.00% | De-registration | 31 December 2020 | Time of de-registration | -1,692,854.00 | 0.00% | |||||
| LiuzhouGold Mantis Home E-commerce Co., Ltd. | 0.00 | 100.00% | De-registration | 31 December 2020 | Time of de-registration | -6,418.10 | 0.00% | |||||
| Suzhou Miaoyu Construction Materials Co., Ltd. | 0.00 | 100.00% | De-registration | 30 November 2020 | Time of de-registration | 0.00 | 0.00% |
Other information:
1. Disposal of Subsidiaries
In the current period, Home Decoration E-commerce, a subsidiary of Gold MantisPrefabricated Construction Technology, transferred or de-registered 51 “Gold Mantis Home”subsidiaries, and Gold Mantis Curtain Wall, a subsidiary of the Company, de-registered SuzhouMiaoyu Construction Materials Co., Ltd. These transferred or de-registered entities were thereforeexcluded from the consolidated financial statements of the current period.Indicate whether there was any disposal of the investment in a subsidiary which was carried out by stages and where control over thesubsidiary ceased in the Reporting Period.
□ Yes √ No
5. Changes in the Scope of the Consoldiated Financial Statements due to Other Reasons
Changes in the scope of the consoldiated financial statements due to other reasons (incorporation, liquidation, etc.):
In the current period, Gold Mantis International, a subsidiary of the Company, incorporatedJining Gold Mantis Construction Engineering Co., Ltd., and Gold Mantis Landscape, a subsidiaryof the Company, incorporated Hangzhou Gold Mantis Landscape Co., Ltd. These newlyincorporated entities were added to the consolidated financial statements of the current period.
6. Other
IX Interests in Other Entities
1. Interests in Subsidiaries
(1) Composition of the Group
| Subsidiary | Principal place of business | Place of registration | Nature of business | The Company’s interest | How the subsidiary was obtained | |
| Direct | Indirect | |||||
| Suzhou Meiruide Construction Decoration Co., Ltd. | Suzhou City, Jiangsu Province, China | Suzhou City, Jiangsu Province, China | Construction decoration | 100.00% | Business combination involving entities under common control | |
| Suzhou Meiruide Construction Materials Co., Ltd. | Suzhou City, Jiangsu Province, China | Suzhou City, Jiangsu Province, China | Construction decoration | 100.00% | Incorporation with capital contribution | |
| Suzhou Industrial Park Gold Mantis Furniture Design and Manufacturing Co., Ltd. | Suzhou City, Jiangsu Province, China | Suzhou City, Jiangsu Province, China | Furniture design and manufacturing | 100.00% | Business combination involving entities under common control | |
| Suzhou Gold Mantis Curtain Wall Co., Ltd. | Suzhou City, Jiangsu Province, China | Suzhou City, Jiangsu Province, China | Curtain wall production | 100.00% | Business combination not involving entities under common control | |
| Qidong Gold Mantis Curtain Wall Co., Ltd. | Qidong City, Jiangsu Province, China | Qidong City, Jiangsu Province, China | Curtain wall production | 100.00% | Incorporation with capital contribution | |
| Suzhou Gold Mantis Landscape Co., Ltd. | Suzhou City, Jiangsu Province, China | Suzhou City, Jiangsu Province, China | Landscaping | 100.00% | Incorporation with capital contribution | |
| Jiangsu Gold Mantis Horticultural Co., | Suzhou City, Jiangsu Province, China | Suzhou City, Jiangsu Province, China | Landscaping | 100.00% | Incorporation with capital contribution | |
| Ltd. | ||||||
| Datong Gold Mantis Landscape Co., Ltd. | Datong City, Shanxi Province, China | Datong City, Shanxi Province, China | Landscaping | 100.00% | Incorporation with capital contribution | |
| Jining Economic Development Zone Gold Mantis Landscape Engineering Co., Ltd. | Jining City, Shandong Province, China | Jining City, Shandong Province, China | Landscaping | 100.00% | Incorporation with capital contribution | |
| Suzhou Gold Mantis Construction Investment Co., Ltd. | Suzhou City, Jiangsu Province, China | Suzhou City, Jiangsu Province, China | Investment management | 100.00% | Incorporation with capital contribution | |
| Liaoning Gold Mantis Construction Decoration Co., Ltd. | Shenyang City, Liaoning Province, China | Shenyang City, Liaoning Province, China | Construction decoration | 100.00% | Incorporation with capital contribution | |
| Singapore Gold Mantis Pte. Ltd. | Singapore | Singapore | Construction decoration | 100.00% | Incorporation with capital contribution | |
| HBA Holdings Pte. Ltd. *1 | Singapore | Singapore | Construction design | 86.62% | Business combination not involving entities under common control | |
| Gold Mantis (International) Construction Decoration Limited | Hong Kong | Hong Kong | Construction decoration | 100.00% | Incorporation with capital contribution | |
| Russia Gold Mantis Construction Decoration Co., Ltd. | Russia | Russia | Construction decoration | 100.00% | Incorporation with capital contribution | |
| JTL Fit Out Middle East L.L.C. | Dubai | Dubai | Construction decoration | 100.00% | Incorporation with capital contribution |
| Gold Mantis Construction Decoration (CNMI), LLC | Northern Mariana Islands | Northern Mariana Islands | Construction decoration | 100.00% | Incorporation with capital contribution | |
| Gold Mantis Building Decoration (Cambodia) Co., Ltd. | Cambodia | Cambodia | Construction decoration | 100.00% | Incorporation with capital contribution | |
| Gold Mantis International Development Pte. Ltd. | Singapore | Singapore | Construction decoration | 100.00% | Incorporation with capital contribution | |
| Gold Mantis (Vietnam) Construction Company Limited | Vietnam | Vietnam | Construction decoration | 100.00% | Incorporation with capital contribution | |
| Gold Mantis (HK) Construction Decoration Limited | Hong Kong, China | Hong Kong, China | Construction decoration | 100.00% | Incorporation with capital contribution | |
| Gold Mantis (Lanka) Construction (Private) Limited | Sri Lanka | Sri Lanka | Construction decoration | 100.00% | Incorporation with capital contribution | |
| Gold Mantis Prefabricated Construction Technology (Suzhou) Co., Ltd. | Suzhou City, Jiangsu Province, China | Suzhou City, Jiangsu Province, China | E-commerce | 70.00% | Incorporation with capital contribution | |
| Gold Mantis Refined Decoration & Technology (Suzhou) Co., Ltd. | Suzhou City, Jiangsu Province, China | Suzhou City, Jiangsu Province, China | Construction decoration | 100.00% | Incorporation with capital contribution | |
| Gold Mantis Home Decoration E-commerce (Suzhou) Co., | Suzhou City, Jiangsu Province, China | Suzhou City, Jiangsu Province, China | E-commerce | 90.00% | Incorporation with capital contribution |
| Ltd.*2 | ||||||
| Gold Mantis Supply Chain Management (Suzhou) Co., Ltd. | Suzhou City, Jiangsu Province, China | Suzhou City, Jiangsu Province, China | E-commerce | 100.00% | Incorporation with capital contribution | |
| Suzhou Jijia Materials Co., Ltd. | Suzhou City, Jiangsu Province, China | Suzhou City, Jiangsu Province, China | Construction decoration | 100.00% | Incorporation with capital contribution | |
| Gold Mantis North China (Beijing) Construction Decoration Engineering Co., Ltd. | Beijing | Beijing | Construction decoration | 100.00% | Incorporation with capital contribution | |
| Gold Mantis Art Co., Ltd. | Suzhou City, Jiangsu Province, China | Suzhou City, Jiangsu Province, China | Construction decoration | 100.00% | Incorporation with capital contribution | |
| Suzhou Jinpu No. 9 Cultural Industrial Development Co., Ltd. | Suzhou City, Jiangsu Province, China | Suzhou City, Jiangsu Province, China | Operational services | 100.00% | Incorporation with capital contribution | |
| Xi’an Hi-tech Zone Jinchuang Commercial Operation Management and Development Co., Ltd. | Xi’an City, Shaanxi Province, China | Xi’an City, Shaanxi Province, China | PPP project management | 90.00% | Incorporation with capital contribution | |
| Gold Mantis Municipal Engineering Construction (Guizhou) Co., Ltd. | Duyun City, Guizhou Province, China | Duyun City, Guizhou Province, China | Construction decoration | 100.00% | Business combination not involving entities under common control | |
| Suzhou Industrial Park Jindejin Construction Engineering Co., Ltd. | Suzhou City, Jiangsu Province, China | Suzhou City, Jiangsu Province, China | Construction decoration | 100.00% | Business combination not involving entities under common control |
| Sierra Gold Mantis Joint Venture (Private) Limited | Sri Lanka | Sri Lanka | Construction decoration | 50.00% | Incorporation with capital contribution | |
| GMI Construction Corp. | The Phillipines | The Phillipines | Construction decoration | 100.00% | Incorporation with capital contribution | |
| M+ Design Associates Pte. Ltd. | Singapore | Singapore | Construction design | 63.00% | Incorporation with capital contribution | |
| Gold Mantis East China Construction Decoration Co., Ltd. | Suzhou City, Jiangsu Province, China | Suzhou City, Jiangsu Province, China | Construction decoration | 100.00% | Incorporation with capital contribution | |
| Suzhou Huali Jinshi Construction Decoration Co., Ltd. | Suzhou City, Jiangsu Province, China | Suzhou City, Jiangsu Province, China | Construction decoration | 60.00% | Incorporation with capital contribution | |
| Shuicheng Ruitong Construction and Development Co., Ltd. | Liupanshui City, Guizhou Province, China | Liupanshui City, Guizhou Province, China | PPP project management | 90.00% | Incorporation with capital contribution | |
| Archi-Feeling Design (SuZhou) Co., Ltd. | Suzhou City, Jiangsu Province, China | Suzhou City, Jiangsu Province, China | Construction design | 70.00% | Business combination not involving entities under common control | |
| GMI International Inc. | The Phillipines | The Phillipines | Construction decoration | 100.00% | Incorporation with capital contribution | |
| Suzhou Miaoyu Construction Materials Co., Ltd. | Suzhou City, Jiangsu Province, China | Suzhou City, Jiangsu Province, China | Construction decoration | 100.00% | Incorporation with capital contribution | |
| Jining Gold Mantis Construction Engineering Co., | Jining City, Shandong Province, China | Jining City, Shandong Province, China | Construction decoration | 100.00% | Incorporation with capital contribution |
| Ltd. | ||||||
| Hangzhou Gold Mantis Landscape Co., Ltd. | Hangzhou City, Zhejiang Province, China | Hangzhou City, Zhejiang Province, China | Landscaping | 100.00% | Incorporation with capital contribution |
Reason for holding different equity percentage and voting right percentage in a subsidiary:
Reason for holding half or below of voting rights but still controlling the investee, and holding over half of voting rights but notcontrolling the investee:
Basis for control over substantial structured entities included in the consolidated financial statements:
Basis for determining whether the Company was an agent or consignor:
Other information:
Note*1：HBA incorporated 24 subsidiaries.*2：Home Decoration E-commerce incorproated 44 “Gold Mantis Home” subsidiaries.Notes to the indirect interests: The Company indirectly held 100% interest in MeiruideMaterials through Meiruide; 100% interest in Qidong Curtain Wall through Gold Mantis CurtainWall; 100% interest in Gold Mantis Horticultural, Datong Gold Mantis, Jining Gold Mantis, andHangzhou Gold Mantis, respectively, through Gold Mantis Landscape; an 86.62% interest in HBAthrough Singapore Gold Mantis; 100% interest in Russia Gold Mantis, JTL Fit Out Middle East,Saipan Gold Mantis, Cambodia Gold Mantis, International Development, Gold Mantis (Vietnam) ,Gold Mantis (HK) , Gold Mantis (Lanka) , GMI Construction, GMI Construction Decoration, andJining Gold Mantis Engineering, respectively, as well as a 63% interest in M+, through GoldMantis International; and a 90% interest in Home Decoration E-commerce, 100% interest inRefined Decoration & Technology, and 100% interest in Gold Mantis Supply Chain, throughPrefabricated Construction Technology.
(2) Principal Non-wholly-owned Subsidiaries
Unit: RMB
| Subsidiary | Minority interests | Net profit or loss attributable to minority interests in the current period | Declared dividends for minority interests in the current period | Closing balance of non-controlling interests |
| HBA | 13.38% | 16,769,841.20 | 63,969,033.00 | |
| Prefabricated Construction Technology | 30.00% | -52,544,952.12 | 29,682,153.76 | |
| Total | -35,775,110.92 | 93,651,186.76 |
Reason for minority shareholder holding different equity percentage and voting right percentage in a subsidiary:
Other information:
(3) Key Financial Information of Principal Non-wholly-owned Subsidiaries
Unit: RMB
| Subsidiary | Closing 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 | |
| HBA | 788,568,960.29 | 68,854,845.32 | 857,423,805.61 | 384,812,502.40 | 3,314,649.20 | 388,127,151.60 | 872,439,325.94 | 80,574,924.92 | 953,014,250.86 | 471,423,691.20 | 1,890,550.20 | 473,314,241.40 |
| Prefabricated Construction Technology | 2,208,852,750.36 | 21,302,545.84 | 2,230,155,296.20 | 1,973,082,143.59 | 73,663.56 | 1,973,155,807.15 | 2,064,024,385.12 | 153,684,599.18 | 2,217,708,984.30 | 1,931,939,354.80 | 292,240.10 | 1,932,231,594.90 |
Unit: RMB
| Subsidiary | Current period | Last year | ||||||
| Operating revenue | Net profit | Total comprehensive income | Net cash generated from/used in operating activities | Operating revenue | Net profit | Total comprehensive income | Net cash generated from/used in operating activities | |
| HBA | 803,827,849.60 | 88,202,658.23 | 88,202,658.23 | 86,735,560.00 | 988,120,444.50 | 48,311,808.92 | 48,311,808.92 | 51,400,723.50 |
| Prefabricated Construction Technology | 2,808,722,617.48 | -13,401,119.37 | -13,401,119.37 | -20,135,768.74 | 3,999,212,784.16 | -99,456,739.20 | -99,456,739.20 | 82,094,350.06 |
Other information:
(4) Major Restrictions with Respect to Use of the Group’s Assets and Repayment of the Group’s Liabilities
(5) Financial or Other Support Provided for Structured Entities Included in the Consolidated FinancialStatementsOther information:
2. Transactions Where Changes Occurred to the Company’s Interests in Subsidiaries but the Company stillControlled the Subsidiaries
(1) Changes in Interests in Subsidiaries
(2) Effects of the Transactions on Non-controlling Interests and Equity Attributable to Owners of theCompany as the Parent
Unit: RMB
Other information:
3. Interests in Joint Ventures and Associates
(1) Principal Joint Ventures and Associates
| Joint venture or associate | Principal place of business | Place of registration | Nature of business | The Company’s interest | Accounting treatment of investment in the joint venture or associate | |
| Direct | Indirect | |||||
Reason for holding different equity percentage and voting right percentage in a joint venture or associate:
Reason for holding below 20% voting rights but having a significant influence, or holding 20% or above voting rights but not havinga significant influence:
(2) Key Financial Information of Principal Joint Ventures
Unit: RMB
| Closing balance/current period | Opening balance/last year | |
Other information:
(3) Key Financial Information of Principal Associates
Unit: RMB
| Closing balance/current period | Opening balance/last year | |
Other information:
(4) Aggregate Financial Information of Insignificant Joint Ventures and Associates
Unit: RMB
| Closing balance/current period | Opening balance/last year | |
| Joint ventures: | -- | -- |
| Total amounts based on ownership percentages: | -- | -- |
| Associates: | -- | -- |
| Total carrying amount of investments | 225,124.06 | 22,838,423.66 |
| Total amounts based on ownership percentages: | -- | -- |
| --Net profit | -9,556,696.62 | -6,162,676.00 |
| --Total comprehensive income | -9,556,696.62 | -6,162,676.00 |
Other information:
(5) Major Restriction on Joint Ventures or Associates’ Ability to Transfer Funds to the Company
(6) Excess Losses on Joint Ventures or Associates
Unit: RMB
| Joint venture or associate | Cumulative previous losses unrecognized | Losses unrecognized (or share of net profit) in the current period | Cumulative unrecognized losses at the period-end |
Other information:
(7) Unrecognized Commitments Associated with Investments in Joint Ventures
(8) Contingent Liabilities Associated with Investments in Joint Ventures or Associates
4. Principal Joint Operations
| Joint operation | Principal place of business | Place of registration | Nature of business | The Company’s interest/share of profit/loss | |
| Direct | Indirect | ||||
Reason for holding different equity percentage/share of profit/loss and voting right percentage in a joint operation:
Basis for the classification as a joint operation when the joint operation was an independent entity:
Other information:
5. Interests in Structured Entities Not Included in the Consolidated Financial StatementsNotes:
6. Other
X Risks Associated with Financial Instruments
1. Qualitative Information
The Company's risks associated with financial instruments originate from various financialassets and financial liabilities recognized by the Company in the course of operation, includingcredit risk, liquidity risk and market risk.The Company's management is in charge of developing management objectives and policiesfor the Company's risks associate with financial instruments. The management is in charge ofroutine risk management through functional departments. The Company's internal audit departmentis in charge of carrying out routine supervision over the implementation of risk managementpolicies and procedures of the Company, as well as reporting relevant findings to the AuditCommittee of the Company in a timely manner.
The Company's overall objective for risk management is to develop risk management policiesto minimize risks associated with financial instruments without unduly affecting thecompetitiveness and strain capacity of the Company.
2. Credit Risk
Credit risk refers to the financial loss that one party to a financial instrument will cause to theother party by failing to fulfill its obligations. The Company's credit risk arises mainly frommonetary assets, notes receivable, accounts receivable, other receivables and long-term receivables,and the credit risk of such financial assets is due to counterparty default, with the maximumexposure being equal to the carrying amount of these instruments.
The Company's monetary assets are mainly deposited in commercial banks and other financialinstitutions because the Company believes these commercial banks have high credit standing andasset status and low credit risk.
The Company developed relevant policies to control the credit risk exposure for notesreceivable, accounts receivable, other receivables, and long-term receivables. The Companyassessed the credit qualifications of customers and set up corresponding credit periods based on thefinancial condition of customers, the possibility of obtaining guarantees from third parties, creditrecords and other factors such as the current market situation. The Company regularly monitors thecredit records of customers. For customers with bad credit records, the Company adoptedcorresponding methods, such as written pressing for payment, shortening credit period, andcanceling credit period, so as to ensure the Company's overall credit risk is controllable.
(1) Standards for judging significant increases in credit risk
On each balance sheet date, the Company assessed whether the credit risk of relevant financialinstruments had increased significantly since the initial recognition. When determining whetherthere were significant increases in credit risk since the initial recognition, the Company consideredthat reasonable and well-grounded information can be obtained without unnecessary additional costor effort, including qualitative and quantitative analyses based on the Company's historical data,external credit risk ratings, and forward-looking information. Based on individual financial
instruments or portfolios of financial instruments with similar credit risk characteristics, theCompany determined the changes in default risk during the expected duration of financialinstruments by comparing the risk of default of financial instruments on the balance sheet date andthe risk of default on the initial recognition date.When one or more of the following qualitative and quantitative standards was triggered, theCompany believed that the credit risk of financial instruments had increased significantly.Quantitative standards mainly refer to that the probability of default for the remaining duration onthe reporting date increases by more than a certain percentage from the initial recognition.Qualitative standards refer to the major adverse changes in the operation or financial status of theprincipal debtors and the list of early warning customers.
(2) Definition of assets with incurred credit impairment
To determine whether credit impairment occurred, the Company adopted the definitionstandard consistent with the internal credit risk management objectives for relevant financialinstruments, with consideration also given to qualitative and quantitative indicators.The following factors are taken into account by the Company when assessing whether a debtorsuffers from credit impairment: the issuer or debtor has significant financial difficulties; the debtorbreaches the contract, such as default or being overdue in the payment of interest or principal; foreconomic or contractual reasons related to the debtor, the creditor gives the debtor concessions thathe would not make under any other circumstance; the debtor is likely to go bankrupt or undergoother financial reorganization; the financial difficulty of the issuer or debtor leads to thedisappearance of the active market for the financial asset; the purchase or generation of a financialasset at a substantial discount that reflects the fact that a credit loss has occurred.The credit impairment of financial assets might be the result of a combination of events, notnecessarily due to a single identifiable event.
(3) Parameters for measuring expected credit loss
According to whether there was a significant increase in credit risk or whether creditimpairment occurred, the Company measured the provisions for the impairment of different assetsat the expected credit loss for 12 months or the entire duration. The key parameters for measuringexpected credit loss included default probability, loss given default and exposure at default. TheCompany established models for default probability, loss given default and exposure at default afterconsidering the quantitative analysis of historical statistical data (such as counterparty rating,guarantee method, collateral category, and repayment method), and forward-looking information.
The relevant definitions are as follows:
Default probability refers to the possibility that a debtor cannot fulfill its payment obligationsin the next 12 months or throughout the remaining duration.
Loss given default refers to the Company's expectation for the extent of losses arising fromexposure to default risk. The loss given default varies depending on the counterparty type, themethod and priority of recourse, and different collaterals. The loss given default is the percentage ofrisk exposure loss at default and is calculated on the basis of the next 12 months or the entireduration.
Exposure at default refers to the amount payable by the Company in the event of default in thenext 12 months or over the entire duration. Forward-looking information is involved in both theassessment of significant increases in the credit risk of forward-looking information and thecalculation of expected credit loss. The Company identified the key economic indicators thataffected the credit risk and expected credit loss of various business types through historical dataanalysis.The quantitative data on credit exposure arising from accounts receivable, other receivablesand long-term receivables of the Company are detailed in Section XII. VII. (5) (8) and (16).
3. Liquidity Risk
Liquidity risk refers to the risk of capital shortage in an enterprise when fulfilling itsobligations to make settlements by delivering cash or other financial assets. The Company's policiesare designed to ensure there is adequate cash to repay debts as they fall due. Liquidity risk is underthe centralized control of the Company's Finance Department, and the Audit Department is incharge of supervision. The Finance Department monitors the cash balance and makes a rollingforecast of cash flows in the next 12 months, so as to ensure the Company has sufficient funds torepay its debts under all reasonable predictions.
As of 31 December 2020, the maturities of the Company’s financial liabilities are as follows:
| Item | 31 December 2020 | |||
| Within 1 year | 1-2 years | 2-3 years | Over 3 years | |
| Short-term borrowings | 714,363,172.85 | — | — | — |
| Notes payable | 4,871,222,687.68 | — | — | — |
| Accounts payable | 17,046,906,908.50 | — | — | — |
| Other payables | 288,908,436.62 | — | — | — |
| Current portion of non-current liabilities | 51,083,934.28 | — | — | — |
| Long-term borrowings | — | 81,000,000.00 | 83,000,000.00 | 672,918,353.34 |
| Total | 22,972,485,139.93 | 81,000,000.00 | 83,000,000.00 | 672,918,353.34 |
4. Market Risk
The market risk of a financial instrument refers to the risk of fluctuations in the fair value orfuture cash flows of the financial instrument arising from changes in market prices, includingexchange rate risk, interest rate risk and other price risks.
(1) Exchange rate risk
Exchange rate risk refers to the risk of fluctuations in the fair value or future cash flows offinancial instruments arising from changes in foreign exchange rates. The foreign exchange riskfaced by the Company is mainly from financial assets and financial liabilities denominated inforeign currencies. For presentation reasons, the amount of risk exposure was shown in Renminbi,the spot exchange rate on the balance sheet date was adopted for conversion, and the translationdifference in foreign currency statements was not included. The exchange risk exposure data ofeach foreign currency asset-liability item are detailed in Section XII. VII. (82).
(2) Interest rate risk
Interest rate risk refers to the risk of fluctuations in the fair value or future cash flows offinancial instruments arising from changes in market interest rates. The interest rate risk faced bythe Company is from bank loans. As of 31 December 2020, the balance of the Company's bankloans was RMB1,402,135,800.00, most of which bore interest at a fixed rate, so the Company'sinterest risk was low.
(3) Other price risks
None.
XI Disclosure of Fair Value
1. The Closing Fair Value of Assets and Liabilities Measured at Fair Value
Unit: RMB
| Item | Closing fair value | |||
| Level 1 fair value measurement | Level 2 fair value measurement | Level 3 fair value measurement | Total | |
| I. Continuous Fair Value Measurement | -- | -- | -- | -- |
| (I) Held-for-trading financial assets | 2,172,086,741.05 | 2,172,086,741.05 | ||
| 1. Financial assets at fair value through profit and loss of the current period | 2,172,086,741.05 | 2,172,086,741.05 | ||
| (1) Debt instrument investments | 2,172,086,741.05 | 2,172,086,741.05 | ||
| (II) Receivables financing | 275,822,920.18 | 275,822,920.18 | ||
| (III) Other non-current financial assets | 512,022,000.00 | 512,022,000.00 | ||
| Total assets continuously measured at fair value | 2,959,931,661.23 | 2,959,931,661.23 | ||
| II. Non-continuous Fair Value Measurement | -- | -- | -- | -- |
2. Basis for determining the market price of continuous and non-continuous Level 1 fair valuemeasurement items
3. Continuous and non-continuous Level 2 fair value measurement items, valuation techniques used, andthe qualitative and quantitative information of important parameters
4. Continuous and non-continuous Level 3 fair value measurement items, valuation techniques used, andthe qualitative and quantitative information of important parameters
5. Continuous and non-continuous Level 3 fair value measurement items, information on the adjustmentbetween the opening and closing book value, and sensitivity analysis of unobservable parametersFor wealth management products at the end of the reporting period, the future cash flows werepredicted as the fair value according to the type of financial products and their yield rate.The carrying value of receivables financing was close to the fair value due to their shortremaining periods, so the face amount served as the fair value.
Other non-current financial assets were equity investments in unlisted enterprises that theCompany planned to hold for the long term, and the initial investment cost served as the fair value.
6. If a continuous fair value measurement item was converted between levels for the current period, thereasons for such conversion and the policies for determining the conversion point
7. Valuation technique changes incurred in the current period and the reasons for such changes
8. The fair value of financial assets and financial liabilities not measured at fair value
9. Other Information
For financial instruments traded in an active market, the Company determined their fair valuebased on their quotations in the active market; for financial instruments not traded in an activemarket, the Company determined their fair value with valuation techniques. The valuation modelsused were mainly those of comparable companies in the market. The input values for valuationtechniques primarily included risk-free interest rate, benchmark interest rate, exchange rate, creditpoint difference, liquidity premium, and discount for lack of liquidity.
XII Related Parties and Related-party Transactions
1. Particulars about the Controlling Shareholder
| Controlling shareholder | Place of registration | Nature of business | Registered capital | Controlling shareholder’s shareholding | Controlling shareholder’s voting right percentage in |
| percentage in the Company | the Company | ||||
| Suzhou Gold Mantis Enterprise (Group) Co., Ltd. | Suzhou Industrial Park | Industrial investment | RMB215 million | 24.33% | 24.33% |
Notes to the controlling shareholder:
Suzhou Gold Mantis Holding Co., Ltd. is the ultimate controller of the Company, and Mr. Zhu Xingliang is the actual controller ofthe Company.Other information:
2. Subsidiaries of the Company
See Note “IX Interests in Other Entities” in Part XII.
3. Joint Ventures and Associates of the Company
See the Notes to the Financial Statements for the Company’s principal joint ventures and associates.Other joint ventures or associates that were involved in related-party transactions with the Company in the current period, or thatwere involved in related-party transactions with the Company in prior periods with balances lasting into the current period:
| Joint venture or associate | Relationship with the Company |
| Delos Residential Solution (HK) Limited | Gold Mantis International holds a 45.78% interest in it. |
| Macao Gold Mantis Construction Decoration Co., Limited | Gold Mantis International holds a 45.00% interest in it. |
| Zhejiang Tianyu Commercial Operation Management Co., Ltd. | The Company and Refined Decoration & Technology held 35.00% and 15% interests, respectively, in it before October 2020. |
Other information:
4. Other Related Parties
| Other related parties | Relationship with the Company |
| Suzhou LJT Intelligent Technology Co., Ltd. | The Company’s subsidiary |
| Virtues Professional Training School of Suzhou Industrial Park | The Company’s subsidiary |
| Suzhou Virtues Construction Professional Training School | The Company’s subsidiary |
| Suzhou Gold Mantis Professional Training School | The Company’s subsidiary |
| Suzhou Gold Mantis Investment Co., Ltd. | The Company’s subsidiary |
| Suzhou Jinhu Property Development Co., Ltd. | The Company’s subsidiary |
| Suzhou Gold Mantis 3D Software Co., Ltd. | The Company’s subsidiary |
| Suzhou Huizhu Information Technology Co., Ltd. | Subsidiary of Suzhou Gold Mantis 3D Software Co., Ltd. |
| Suzhou BLM Technology Co., Ltd. | Subsidiary of Suzhou LJT Intelligent Technology Co., Ltd. |
| Suzhou Gold Mantis Yihe Technology Co., Ltd. | Subsidiary of Suzhou LJT Intelligent Technology Co., Ltd. |
| Suzhou Jinduoyun Information Technology Co., Ltd. | Subsidiary of Suzhou LJT Intelligent Technology Co., Ltd. |
| Jiangsu Dongyi Software Technology Co., Ltd. | Subsidiary of Suzhou Gold Mantis Yihe Technology Co., Ltd. |
| Suzhou Jinnuo Commercial Factoring Co., Ltd. | Subsidiary of Suzhou Nuojin Investment Co., Ltd. |
| Suzhou Nuojin Finance Lease Co., Ltd. | Subsidiary of Suzhou Nuojin Investment Co., Ltd. |
| Suzhou Gold Mantis Culture Development Co., Ltd. | Minority-owned subsidiary of the controlling shareholder |
| Delos (Suzhou) Well Technology Ltd. | Subsidiary of Delos Residential Solutions (HK) Limited |
| Suzhou Gold Mantis Charity Foundation | The Company’s senior management being director of the non-corporate organization |
| Suzhou Gold Gain Investment Co., Ltd. | Under control of the same actual controller |
| Suzhou Jinbai Hotel Management Co., Ltd. | Subsidiary of Suzhou Jinhu Property Development Co., Ltd. |
Other information:
5. Related-party Transactions
(1) Related-party Transactions Involving Purchase and Sale of Goods, as well as Receipt and Rendering ofServicesPurchases of goods/receipt of services:
Unit: RMB
| Related party | Contents of transaction | Amount in the current period | Approved transaction line | Over the transaction line or not | Amount in last year |
| Suzhou Gold Mantis 3D Software Co., Ltd. | Software and technical services | 1,381,383.97 | 1,381,383.97 | Not | 3,378,233.02 |
| Suzhou Huizhu Information Technology Co., Ltd. | Technical services | 274,801.88 | 274,801.88 | Not | 1,699,921.03 |
| Suzhou Gold Mantis Investment Co., Ltd. | Consulting services | 288,226.17 | 288,226.17 | Not | 471,698.11 |
| Delos (Suzhou) Well Technology Ltd. | Materials | 1,621,386.16 | 1,621,386.16 | Not | 983,599.75 |
| Suzhou BLM Technology Co., Ltd. | Equipment and materials | 929,356.41 | 929,356.41 | Not | 113,534.85 |
| Suzhou LJT | Design charges | 7,547,969.20 | 7,547,969.20 | Not | -36,603.66 |
| Intelligent Technology Co., Ltd.* | and materials | ||||
| Total | 12,043,123.79 | 12,043,123.79 | Not | 6,610,383.10 |
Sale of goods/rendering of services:
Unit: RMB
| Related party | Contents of transaction | Amount in the current period | Amount in last year |
| Suzhou Jinhu Property Development Co., Ltd. | Decoration curtain wall engineering and design | 52,969,607.31 | 142,704,259.15 |
| Suzhou Jinbai Hotel Management Co., Ltd. | Decoration engineering | 15,440,691.47 | 142,338,041.03 |
| Zhejiang Tianyu Commercial Operation Management Co., Ltd. | Decoration engineering and design | 1,125,479.28 | 10,609,411.15 |
| Suzhou LJT Intelligent Technology Co., Ltd. | Decoration engineering and equipment | -482,110.08 | 2,489,321.77 |
| Delos (Suzhou) Well Technology Ltd. | Decoration engineering | 110,145.63 | |
| Suzhou Gold Mantis Culture Development Co., Ltd. | Landscaping and property services | 446,519.56 | |
| Total | 69,610,333.17 | 298,141,033.10 |
Notes to related-party transactions involving purchase and sale of goods, as well as receipt and rendering of services:
Note*：The transaction amount was negative primarily due to adjustments in the audit andsettlement.
(2) Management Entrustment and Contracting between the Company and Related PartiesThe Company as the trustee of management/contractor:
Unit: RMB
| Trustor/contractor | Trustee/contractee | Type of asset | Start date | End date | Basis for income determination | Income recognized in the current period |
Notes:
The Company as the trustor of management/contractee:
Unit: RMB
| Trustor/contractor | Trustee/contractee | Type of asset | Start date | End date | Basis for the determination of charges | Charges recognized in the current period |
Notes:
(3) Leases between the Company and Related Parties
The Company as the lessor:
Unit: RMB
| Lessee | Type of the leased asset | Rental income recognized in the current period | Rental income recognized last year |
| Suzhou Gold Mantis Enterprise (Group) Co., Ltd. | Building space | 189,000.00 | 189,000.00 |
| Suzhou Gold Mantis Investment Co., Ltd. | Building space | 42,000.00 | 42,000.00 |
| Suzhou BLM Technology Co., Ltd. | Building space | 10,500.00 | 10,500.00 |
| Suzhou Jinhu Property Development Co., Ltd. | Building space | 42,000.00 | 42,000.00 |
| Suzhou Jinduoyun Information Technology Co., Ltd. | Building space | 10,500.00 | 10,500.00 |
| Jiangsu Dongyi Software Technology Co., Ltd. | Building space | 10,500.00 | 10,500.00 |
| Suzhou Gold Mantis 3D Software Co., Ltd. | Building space | 84,000.00 | 84,000.00 |
| Suzhou Huizhu Information Technology Co., Ltd. | Building space | 84,000.00 | 84,000.00 |
| Suzhou LJT Intelligent Technology Co., Ltd. | Building space | 1,078,600.00 | 1,078,600.00 |
| Suzhou Gold Mantis Yihe Technology Co., Ltd. | Building space | 210,000.00 | 210,000.00 |
| Suzhou Jinnuo Commercial Factoring Co., Ltd. | Building space | 12,600.00 | 12,600.00 |
| Suzhou Gold Mantis Charity Foundation | Building space | 10,500.00 | 10,500.00 |
| Suzhou Nuojin Investment Co., Ltd. | Building space | 21,000.00 | 21,000.00 |
| Gold Gain Investment Limited | Building space | 3,800.00 | 3,800.00 |
| Suzhou Jinbai Hotel Management Co., Ltd. | Building space | 2,800.00 | 7,000.00 |
| Delos (Suzhou) Well Technology Ltd. | Building space | 12,600.00 | 25,200.00 |
| Suzhou Gold Mantis Culture Development Co., Ltd. | Building space | 1,115,300.00 | 1,216,700.00 |
The Company as the lessee:
Unit: RMB
| Lessor | Type of the leased asset | Rental expense recognized in the current period | Rental expense recognized last year |
Notes:
(4) Guarantees Provided between the Company and Related Parties
The Company as the guarantee provider:
Unit: RMB
| Guaranteed party | Amount of guarantee | Start date | End date | Liability executed or not |
| Refined Decoration & Technology | 40,500,000.00 | 17 May 2019 | 16 May 2022 | Not |
| Refined Decoration & Technology | 15,000,000.00 | 1 June 2020 | 31 May 2021 | Not |
| Refined Decoration & Technology | 300,000,000.00 | 26 October 2020 | 26 October 2021 | Not |
| Refined Decoration & Technology | 80,000,000.00 | 9 December 2020 | 9 December 2021 | Not |
| Refined Decoration & Technology | 100,000,000.00 | 14 December 2020 | 13 December 2021 | Not |
| Gold Mantis Landscape | 50,000,000.00 | 18 June 2019 | 17 June 2020 | Not |
| Gold Mantis Landscape | 150,000,000.00 | 4 July 2019 | 4 July 2020 | Not |
| Gold Mantis Landscape | 60,000,000.00 | 22 April 2020 | 21 April 2021 | Not |
| Gold Mantis Landscape | 80,000,000.00 | 23 September 2020 | 23 September 2021 | Not |
| Gold Mantis Curtain Wall | 200,000,000.00 | 31 May 2018 | 30 May 2019 | Not |
| Gold Mantis Curtain Wall | 372,000,000.00 | 15 August 2019 | 14 August 2020 | Not |
| Gold Mantis Curtain Wall | 100,000,000.00 | 11 December 2019 | 11 December 2020 | Not |
| Gold Mantis Curtain Wall | 100,000,000.00 | 18 May 2020 | 18 May 2021 | Not |
| Gold Mantis Curtain Wall | 200,000,000.00 | 5 June 2020 | 13 May 2021 | Not |
| Gold Mantis Curtain | 50,000,000.00 | 18 June 2020 | 18 June 2021 | Not |
| Wall | ||||
| Gold Mantis Curtain Wall | 372,000,000.00 | 24 August 2020 | 23 August 2021 | Not |
| Gold Mantis Curtain Wall | 60,000,000.00 | 4 November 2020 | 25 August 2021 | Not |
| Gold Mantis Curtain Wall | 80,000,000.00 | 23 September 2020 | 23 September 2021 | Not |
| Gold Mantis Curtain Wall | 170,000,000.00 | 1 December 2020 | 1 December 2021 | Not |
| Gold Mantis Curtain Wall | 150,000,000.00 | 10 December 2020 | 9 December 2021 | Not |
| Meiruide | 250,000,000.00 | 26 October 2018 | 25 November 2019 | Not |
| Meiruide | 200,000,000.00 | 13 May 2019 | 15 April 2020 | Not |
| Meiruide | 100,000,000.00 | 28 May 2019 | 27 May 2020 | Not |
| Meiruide | 100,000,000.00 | 8 January 2020 | 8 January 2021 | Not |
| Meiruide | 100,000,000.00 | 17 March 2020 | 17 March 2021 | Not |
| Meiruide | 200,000,000.00 | 18 May 2020 | 18 May 2021 | Not |
| Meiruide | 200,000,000.00 | 5 June 2020 | 13 May 2021 | Not |
| Meiruide | 100,000,000.00 | 11 June 2020 | 11 June 2021 | Not |
| Meiruide | 250,000,000.00 | 10 August 2020 | 9 August 2021 | Not |
| Meiruide | 100,000,000.00 | 23 September 2020 | 23 September 2021 | Not |
| Meiruide | 200,000,000.00 | 24 September 2020 | 24 September 2021 | Not |
| Meiruide | 400,000,000.00 | 26 October 2020 | 26 October 2021 | Not |
| Gold Mantis Supply Chain | 50,000,000.00 | 27 August 2019 | 27 August 2020 | Not |
| Gold Mantis Supply Chain | 100,000,000.00 | 24 September 2019 | 24 September 2020 | Not |
| Gold Mantis Supply Chain | 30,000,000.00 | 8 April 2020 | 7 April 2021 | Not |
| Gold Mantis Supply Chain | 60,000,000.00 | 5 June 2020 | 13 May 2021 | Not |
| Gold Mantis Supply Chain | 50,000,000.00 | 26 May 2020 | 25 May 2021 | Not |
| Jijia Materials | 60,000,000.00 | 5 June 2020 | 13 May 2021 | Not |
| Gold Mantis East China | 10,000,000.00 | 3 July 2020 | 3 July 2021 | Not |
| Singapore Gold Mantis | 82,669,200.00 | 28 August 2020 | 28 August 2021 | Not |
| Singapore Gold Mantis | 122,617,800.00 | 26 September 2020 | 25 September 2021 | Not |
| Not | ||||
| Not |
The Company as the guaranteed party:
Unit: RMB
| Guarantee provider | Amount of guarantee | Start date | End date | Liability executed or not |
| Suzhou Gold Mantis Enterprise (Group) Co., Ltd. | 345,000,000.00 | 20 June 2019 | 19 June 2033 | Not |
Notes to guarantees provided between the Company and related parties:
On 20 June 2019, the Company's subsidiary Shuicheng Ruitong obtained a long-term pledgedloan with a term of 168 months from Shuicheng County Sub-branch of Agricultural DevelopmentBank of China. This loan was pledged with the income from feasibility gap subsidies receivable byShuicheng Ruitong under the PPP Project (Phase II) Contract for Comprehensive Improvement ofRural Human Settlements in Shuicheng County and was guaranteed by Suzhou Gold MantisEnterprise (Group) Co., Ltd.
(5) Loans between the Company and Related Parties
Unit: RMB
| Related party | Amount of loan | Start date | End date | Note |
| Loans from related parties | ||||
| Loans to related parties | ||||
(6) Asset Transfers and Debt Restructuring Involving Related Parties
Unit: RMB
| Related party | Contents of transaction | Current period | Last year |
(7) Remuneration of Key Management
Unit: RMB
| Item | Current period | Last year |
| Accrued remuneration of key management | 9,851,500.00 | 8,622,600.00 |
(8) Other Related-party Transactions
① In 2020, the Company as well as its subsidiaries including Meiruide, Gold Mantis CurtainWall, Gold Mantis Landscape, Refined Decoration & Technology, Gold Mantis Art, JindejinConstruction and Huali Jinshi paid Suzhou Virtues Construction Professional Training School
training fees of RMB1,707,800 in total; the Company as well as its subsidiaries including Meiruide,Gold Mantis Curtain Wall and Gold Mantis Landscape paid Virtues Professional Training School ofSuzhou Industrial Park training fees of RMB188,800 in total.
② In December 2020, the Company donated RMB3 million to Suzhou Gold Mantis CharityFoundation.
6. Amounts Receivable from or Payable to Related Parties
(1) Amounts Receivable from Related Parties
Unit: RMB
| Item | Related party | Closing balance | Opening balance | ||
| Gross amount | Allowances for doubtful accounts | Gross amount | Allowances for doubtful accounts | ||
| Accounts receivable | Suzhou Jinbai Hotel Management Co., Ltd. | 38,096,160.80 | 1,904,808.04 | 49,816,293.87 | 2,490,814.69 |
| Contract assets | Suzhou Jinbai Hotel Management Co., Ltd. | 4,792,905.47 | 239,645.27 | ||
| Accounts receivable | Suzhou Jinhu Property Development Co., Ltd. | 32,390,086.28 | 1,619,504.31 | 17,847,500.40 | 892,375.02 |
| Contract assets | Suzhou Jinhu Property Development Co., Ltd. | 23,633,878.71 | 1,181,693.94 | ||
| Accounts receivable | Zhejiang Tianyu Commercial Operation Management Co., Ltd. | 6,891,246.53 | 344,562.33 | 6,790,500.00 | 339,525.00 |
| Contract assets | Zhejiang Tianyu Commercial Operation Management Co., Ltd. | 576,025.87 | 28,801.29 | ||
| Accounts receivable | Suzhou LJT Intelligent | 11,155.00 | 557.75 | 1,182,100.00 | 59,105.00 |
| Technology Co., Ltd. | |||||
| Contract assets | Suzhou LJT Intelligent Technology Co., Ltd. | 59,445.00 | 2,972.25 | ||
| Accounts receivable | Delos (Suzhou) Well Technology Ltd. | 31,702.05 | 9,510.62 | 241,739.00 | 24,173.90 |
| Accounts receivable | Suzhou Gold Mantis Culture Development Co., Ltd. | 110,005.79 | 5,500.29 | 983,833.91 | 49,191.70 |
| Contract assets | Suzhou Gold Mantis Culture Development Co., Ltd. | 901,898.18 | 45,094.91 |
(2) Amounts Payable to Related Parties
Unit: RMB
| Item | Related party | Closing balance | Opening balance |
| Accounts payable | Suzhou Huizhu Information Technology Co., Ltd. | 311,660.00 | 465,770.00 |
| Accounts payable | Suzhou BLM Technology Co., Ltd. | 881,695.91 | 259,507.25 |
| Accounts payable | Delos (Suzhou) Well Technology Ltd. | 216,686.60 | 210,488.43 |
| Accounts payable | Suzhou Gold Mantis 3D Software Co., Ltd. | 180,000.00 | 200,000.00 |
| Accounts payable | Suzhou LJT Intelligent Technology Co., Ltd. | 7,996,178.00 | 14,178.00 |
| Other payables | Delos (Suzhou) Well Technology Ltd. | 23,040.00 | |
| Other payables | Suzhou Gold Mantis Culture Development Co., Ltd. | 20,000.00 |
7. Commitments Involving Related Parties
8. Other
XIII Share-based Payments
1. The Overall Situation of Share-Based Payments
√ Applicable □ Not applicable
Unit: RMB
| Total amount of various equity instruments granted by the Company during the current period | 0.00 |
| Total amount of various equity instruments exercised by the Company during the current period | 0.00 |
| Total amount of various equity instruments invalidated during the current period of the Company | 1,050,000.00 |
| The scope of exercise prices of other equity instruments issued by the Company at the end of the reporting period and the remaining term of contracts | RMB3.99 per share, the remaining term of contracts was 23 months; RMB4.01 per share, the remaining term of contracts was 36 months; |
Other information:
2. Equity-settled Share-based Payments
√ Applicable □ Not applicable
Unit: RMB
| Methods for determining the fair value of equity instruments on the grant date | First grant: * Grant of the reserved portion: The closing price of the Company's stock on the grant date |
| Basis for determining the number of feasible right equity instruments | To be determined by the number of actually exercised rights |
| Equity-settled share-based payments were included in the cumulative amount of capital reserves | 86,866,866.67 |
| Total expenses recognized in equity-settled share-based payments for the current period | 3,579,166.67 |
Other information:
Note*: For incentive objects who are not Board Members or officers of the Company, the fairvalue of restricted shares is equal to the closing price on the grant date; for the fair value ofrestricted shares granted to Board Members and officers, the Company uses the Black-Scholesmodel (B-S model) as the pricing model to determine the fair value of the restricted shares afterdeducting the cost of restrictive factors.
In accordance with the Proposal on the Company's 2018 Restricted Share Incentive Scheme(Draft) and Its Summary deliberated and approved at the 1st Extraordinary General Meeting of theCompany of 2018 and the resolution of the 13th Extraordinary Meeting of the 5th Board ofDirectors, the Company granted a total of 33.10 million restricted shares to 32 restricted shareincentive objects, including Wang Hanlin, Cao Liming and Shi Guoping, and the issue price wasRMB3.99 per share. The share incentive scheme was divided into three phases and the restrictedshares were unlocked proportionally. When confirming the share-based payment expenses,accounting treatment was performed by regarding it as three independent share-based paymentschemes.
In accordance with the Proposal on the Company's 2018 Restricted Share Incentive Scheme(Draft) and Its Summary deliberated and approved at the Company's 1st Extraordinary GeneralMeeting of 2018 and the resolution of the 1st Extraordinary Meeting of the 6th Board of Directorsof 2019, the Company granted 8.00 million reserved restricted shares to 14 restricted shareincentive objects, including Wang Zhenlong and Gao Hongqiang, and the issue price was RMB4.01per share. The share incentive scheme was divided into three phases and the restricted shares wereunlocked proportionally. When confirming the share-based payment expenses, accounting treatmentwas performed by regarding it as three independent share-based payment schemes.
The phasing and unlocking conditions of the share incentive scheme are as follows:
| Lifting restriction period | Lifting restriction time | Performance appraisal objectives | Proportion of the number of restricted shares lifted in restricted shares granted for the first time |
| 1st lifting restriction period | From the first trading day 12 months after the completion date of the first grant of partial restricted shares to the day of the last trading day within 24 months after the completion date of the first grant of partial restricted shares | The Company should meet one of the following two conditions: 1. Based on the operating revenue in 2018, the growth rate of the operating revenue in 2019 shall be not less than 20%; 2. Based on the net profit in 2018, the growth rate of the net profit in 2019 shall be not less than 15%. | 30% |
| 2nd lifting restriction period | From the first trading day 24 months after the completion date of the first grant of partial restricted shares to the day of the last trading day within 36 months after the completion date of the first grant of partial restricted shares | The Company should meet one of the following two conditions: 1. Based on the operating revenue in 2018, the growth rate of the operating revenue in 2019 shall be not less than 40%; 2. Based on the net profit in 2018, the growth rate of the net profit in 2019 shall be not less than 30%. | 30% |
| 3rd lifting restriction period | From the first trading day 36 months after the completion date of the first grant of partial restricted shares to the day of the last trading day within 48 months after the completion date of the first grant of partial restricted shares | The Company should meet one of the following two conditions: 1. Based on the operating revenue in 2018, the growth rate of the operating revenue in 2019 shall be not less than 60%; 2. Based on the net profit in 2018, the growth rate of the net profit in 2019 shall be not less than 45%. | 40% |
Based on the grant date of restricted shares and the best estimate of restricted shares at the endof the year, the Company's exercise expenses in relevant years were estimated as follows:
(Unit: RMB'0,000)
| Item | 2020 | 2021 | 2022 | Total |
| Expenses of the first grant of share incentive | -744.08 | 1,571.25 | - | 827.17 |
| Expenses of the grant of reserved share incentive | 1,102.00 | 371.2 | 340.27 | 1,813.47 |
| Total | 357.92 | 1,942.45 | 340.27 | 2,640.64 |
In May 2020, in accordance with the resolution of the 2019 Annual General Meeting and theProposal on Repurchase and Cancellation of Some Restricted Shares deliberated and approved at the5th Meeting of the 6th Board of Directors of 2020, Yang Peng and Xie Jinjun, the original incentiveobjects, had left the Company and did not meet the incentive conditions, so the Company repurchasedand canceled 1,050,000.00 restricted shares granted to them but not yet unlocked according to therelevant provisions of the Company's share incentive scheme.
In May 2020, in accordance with the resolution of the 2019 Annual General Meeting and theProposal on the Achievement of Lifting the Restriction Conditions in the First Lifting RestrictionPeriod for the First Grant Portion of the 2018 Restricted Share Incentive Scheme, the number ofrestricted shares that can be applied to unlock this time was 9,615,000.00, and the listing and tradingdate of the restricted shares during the current period was 9 June 2020.
3. Cash-settled Share-based Payments
□ Applicable √ Not applicable
4. Modification and Termination of Share-based Payments
5. Other Information
XIV Commitments and Contingencies
1. Significant Commitments
Significant valid commitments on the balance sheet date:
(1) Guarantee Letters Issued as of 31 December 2020
| Type | Amount |
| Performance bonds | 1,017,697,981.45 |
| Advance payment guarantees | 400,105,438.93 |
| Bid security forms | 31,375,000.00 |
| Quality guarantees | 9,430,618.17 |
| Guarantees for payment of salaries | 10,972,882.92 |
| Total | 1,469,581,921.47 |
(2) As of 31 December 2020, save as disclosed above, there were no significant commitmentsthat require to be disclosed.
2. Contingencies
(1) Significant Valid Contingencies on the Balance Sheet Date
2. Contingencies
(1) Contingent Liabilities Arising from the Provision of Debt Guarantees for Other Entities and theFinancial Effects
See XII (5) in Part XII for guarantees between the Company and its subsidiaries as of 31December 2020.
(2) As of 31 December 2020, save as disclosed above, there were no significant contingencies thatrequire to be disclosed.
(2) The Company shall make it clear if it has no significant contingencies that require to be disclosed.There were no significant contingencies that require to be disclosed.
3. Other Information
XV Events after the Balance Sheet Date
1. Significant Non-adjustment Matters
Unit: RMB
| Item | Contents | Effects on the financial condition and operating results | Reason for inability to estimate the affected amount |
2. Profit Distribution
Unit: RMB
| Profit or dividends to be distributed | 536,671,737.80 |
| Approved and declared profit or dividends to be distributed | 536,671,737.80 |
3. Return of Sales
4. Other Events after the Balance Sheet Date
A. Incorporation, Acquisition, and De-registration of Subsidiaries after the Balance SheetDate
In January 2021, subsidiary Home Decoration E-commerce incorporated majority-ownedsubsidiary Suzhou Tangbao Technical Service Co., Ltd.During the period from January to March 2021, subsidiary Home Decoration E-commercede-registered Quzhou Gold Mantis Home E-commerce Co., Ltd. and Lishui Gold Mantis HomeE-commerce Co., Ltd.In January 2021, subsidiary Gold Mantis International de-registered Jining Gold MantisConstruction Engineering Co., Ltd.In January 2021, the Company acquired 100% interest in Home Decoration E-commerceheld by Prefabricated Construction Technology, a majority-owned subsidiary of the Company.Therefore, Home Decoration E-commerce has become a wholly-owned subsidiary of theCompany.B. Repurchase of Shares
On 31 March 2021, the Proposal on the Share Repurchase Scheme of the Company wasdeliberated and approved at the 3rd Extraordinary Meeting of the 6th Board of Directors of theCompany, which planned to repurchase the shares of the Company with its own funds in the formof call auction and use such repurchased shares to implement the share incentive or Employee StockOwnership Plan. The total amount of this repurchase was not more than RMB300.00 million(inclusive) and not less than RMB150.00 million (inclusive). The price of the repurchased shareswas not more than RMB15 per share. If calculated at the maximum amount of repurchase funds andthe ceiling on the share repurchase price, it was estimated that the number of shares to berepurchased was approximately 20,000,000, accounting for about 0.75% of the Company's currentshare capital. If calculated at the minimum amount of repurchase funds and the ceiling on the sharerepurchase price, it was estimated that the number of shares to be repurchased was approximately10,000,000, accounting for about 0.37% of the Company's current share capital. The specificnumber of repurchased shares shall be subject to the actual number of shares repurchased at theexpiration of the repurchase period.C. Other Events after the Balance Sheet DateOn 15 January 2021, the Proposal on the Achievement of Lifting the Restriction Conditions inthe First Lifting Restriction Period for the First Grant Portion of the 2018 Restricted Share Incentive
Scheme was deliberated and approved at the 2nd Extraordinary Meeting of the 6th Board of Directorsand the 2nd Extraordinary Meeting of the 6th Supervisory Committee. It was believed that the liftingrestriction conditions for the restricted shares reserved under the Company's 2018 restricted shareincentive scheme in the first lifting restriction period were achieved. It was therefore agreed that theCompany would handle matters related to lifting restrictions for eligible incentive objects inaccordance with the relevant provisions of the incentive scheme after the expiration of the firstrestriction period of reserved restricted shares. 14 incentive objects met the conditions for liftingrestrictions this time, 2.40 million restricted shares were lifted this time, accounting for 0.09% of theCompany's current share capital, and the listing and trading date of the restricted shares lifted thistime was 27 January 2021.
As of 28 April 2021, save as disclosed above, there are no other events after the balance sheetdate that require to be disclosed.
XVI Other Significant Events
1. Correction of Prior Accounting Errors
(1) Retrospective Restatement Method
Unit: RMB
| Accounting error corrected | Procedure of treatment | Affected statement items of comparative periods | Cumulative effects |
(2) Prospective Application Method
| Accounting error corrected | Procedure of approval | Reason for adopting the prospective application method |
2. Debt Restructuring
3. Asset Swaps
(1) Swaps of Non-monetary Assets
(2) Swaps of Other Assets
4. Annuity Plans
5. Discontinued Operations
Unit: RMB
| Item | Revenue | Expense | Gross profit | Income tax expense | Net profit | Net profit of discontinued operations attributable to owners of the Company as the parent |
Other information:
6. Segment Information
(1) Basis for the Determination of Reporting Segments and Accounting PoliciesFactors taken into account in the determination of reporting segments:
The Company determined reporting segments based on product segments while taking intoaccount the internal organziational structure, management requirements, the internal reportingsystem, etc.
(2) Financial Information of Reporting Segments
Unit: RMB
| Item | Construction decoration | Manufacturing | Others | Offset between segments | Total |
| Revenue of core businesses | 30,117,163,022.25 | 954,085,964.93 | 96,722,042.10 | 31,167,971,029.28 | |
| Costs of core businesses | 25,135,776,779.73 | 877,506,030.76 | 27,949,300.30 | 26,041,232,110.79 |
(3) Reasons shall be given if the Company has no reporting segments or is unable to disclose the total assets
and liabilities of the reporting segments.
(4) Other Information
(2) Core Businesses (by Product Category)
| Product category | 2020 | 2019 | ||
| Revenue of core businesses | Costs of core businesses | Revenue of core businesses | Costs of core businesses | |
| Decoration | 27,939,943,817.80 | 23,605,931,194.94 | 27,172,714,036.71 | 22,528,609,783.38 |
| Design | 1,501,558,913.30 | 928,786,610.87 | 1,823,521,929.28 | 1,055,748,002.20 |
| Curtain wall | 1,637,205,437.26 | 1,479,454,103.65 | 1,726,158,637.26 | 1,547,342,368.64 |
| Others | 89,262,860.92 | 27,060,201.33 | 70,528,086.58 | 25,421,317.32 |
| Total | 31,167,971,029.28 | 26,041,232,110.79 | 30,792,922,689.83 | 25,157,121,471.54 |
7. Other Significant Transactions and Matters that may Affect Decision-Making of Investors
8. Other Information
As of 31 December 2020, save as disclosed above, there were no other significant events thatrequire to be disclosed.
XVII Notes to Key Items of the Financial Statement of the Company as the Parent
1. Accounts Receivable
(1) Accounts Receivable by Type
Unit: RMB
| Type | Closing balance | Opening balance | ||||||||
| Gross amount | Allowance for doubtful account | Carrying amount | Gross amount | Allowance for doubtful account | Carrying amount | |||||
| Amount | Percentage | Amount | Allowance percentage | Amount | Percentage | Amount | Allowance percentage | |||
| Accounts receivable for which the allowances for doubtful accounts are established on the individual basis | 127,588,535.17 | 1.17% | 123,375,780.37 | 96.70% | 4,212,754.80 | 56,343,559.00 | 0.58% | 52,130,804.20 | 92.52% | 4,212,754.80 |
| Including: | ||||||||||
| Accounts receivable for which the allowances for doubtful accounts are established on the grouping basis | 10,808,225,625.55 | 98.83% | 1,234,383,782.06 | 11.42% | 9,573,841,843.49 | 9,680,400,290.59 | 4.20% | 1,135,176,365.99 | 11.73% | 8,545,223,924.60 |
| Including: | ||||||||||
| Group of related parties | 148,332,023.08 | 1.36% | 148,332,023.08 | 211,477,694.16 | 2.17% | 211,477,694.16 | ||||
| Group of non-related parties | 10,659,893,602.47 | 97.47% | 1,234,383,782.06 | 11.58% | 9,425,509,820.41 | 9,468,922,596.43 | 97.25% | 1,135,176,365.99 | 8,333,746,230.44 | |
| Total | 10,935,814,160.72 | 100.00% | 1,357,759,562.43 | 12.42% | 9,578,054,598.29 | 9,736,743,849.59 | 100.00% | 1,187,307,170.19 | 12.19% | 8,549,436,679.40 |
Allowances for doubtful accounts established on the individual basis: RMB123,375,780.37
Unit: RMB
| Entity | Closing balance | |||
| Gross amount | Allowance for doubtful account | Allowance percentage | Reason for allowance | |
| Kangde Composites Co., Ltd. | 24,448,081.36 | 24,448,081.36 | 100.00% | Expectedly irrecoverable |
| Chongqing Forebase Industrial Investment (Holdings) Co., Ltd. | 21,846,558.74 | 21,846,558.74 | 100.00% | Expectedly irrecoverable |
| Xiamen Shiqiao Investment Management Co., Ltd. | 21,063,774.00 | 16,851,019.20 | 80.00% | Based on expected loss |
| Jiangsu Shenghe Tourism Development Co., Ltd. | 15,988,000.49 | 15,988,000.49 | 100.00% | Expectedly irrecoverable |
| Chenzhou Jinhuang Hotel Management Co., Ltd. | 15,778,879.42 | 15,778,879.42 | 100.00% | Expectedly irrecoverable |
| Jiangsu Zhonghao Holding Group Co., Ltd. | 10,580,950.57 | 10,580,950.57 | 100.00% | Expectedly irrecoverable |
| Beijing Hanergy PV Investment Co., Ltd. | 10,286,740.59 | 10,286,740.59 | 100.00% | Expectedly irrecoverable |
| Zhengzhou Hemei Women and Children's Hospital Co., Ltd. | 7,595,550.00 | 7,595,550.00 | 100.00% | Expectedly irrecoverable |
| 96.70% | Expectedly irrecoverable | |||
| Total | 127,588,535.17 | 123,375,780.37 | -- | -- |
Allowances for doubtful accounts established on the individual basis:
Unit: RMB
| Entity | Closing balance | |||
| Gross amount | Allowance for doubtful account | Allowance percentage | Reason for allowance | |
Allowances for doubtful accounts established on the grouping basis: RMB0
Unit: RMB
| Entity | Closing balance | ||
| Gross amount | Allowance for doubtful account | Allowance percentage | |
| Xi’an Hi-tech Zone Jinchuang Commercial Operation Management and Development Co., Ltd. | 73,936,930.26 | ||
| Suzhou Jijia Materials Co., Ltd. | 42,345,975.63 | ||
| Suzhou Meiruide Construction Decoration Co., Ltd. | 11,123,010.10 | ||
| GMI Construction Corp. | 8,024,359.64 | ||
| Gold Mantis (Vietnam) Construction Company Limited | 6,781,889.75 | ||
| Gold Mantis (International) Construction Decoration Limited | 4,486,997.11 | ||
| Gold Mantis Prefabricated Construction Technology (Suzhou) Co., Ltd. | 1,279,152.47 | ||
| Suzhou Gold Mantis Landscape Co., Ltd. | 327,308.12 | ||
| Archi-Feeling Design (SuZhou) Co., Ltd. | 26,400.00 | ||
| Total | 148,332,023.08 | -- | |
Grouping basis:
No allowances for doubtful accounts were established for entities within the consolidation scope.Allowances for doubtful accounts established on the grouping basis: RMB1,234,383,782.06
Unit: RMB
| Item | Closing balance | ||
| Gross amount | Allowance for doubtful account | Allowance percentage | |
| Within 1 year | 8,369,093,195.20 | 418,454,659.76 | 5.00% |
| 1-2 years | 1,091,170,333.38 | 109,117,033.34 | 10.00% |
| 2-3 years | 465,539,333.26 | 139,661,799.98 | 30.00% |
| 3-4 years | 266,935,776.65 | 133,467,888.33 | 50.00% |
| 4-5 years | 167,362,816.66 | 133,890,253.33 | 80.00% |
| Over 5 years | 299,792,147.32 | 299,792,147.32 | 100.00% |
| Total | 10,659,893,602.47 | 1,234,383,782.06 | -- |
Grouping basis:
Accounts receivable as at 31 December 2020 for which allowances were established based onthe group of non-related parties
Allowances for doubtful accounts established on the grouping basis:
Unit: RMB
| Item | Closing balance | ||
| Gross amount | Allowance for doubtful account | Allowance percentage | |
Grouping basis:
Where allowances for doubtful accounts receivable are established using the general model of expected credit loss, please discloseallowance information as other receivables.
□ Applicable √ Not applicable
By aging:
Unit: RMB
| Aging | Gross amount |
| Within 1 year (inclusive) | 8,472,482,128.36 |
| 1-2 years | 1,126,998,559.61 |
| 2-3 years | 558,768,442.94 |
| Over 3 years | 777,565,029.81 |
| 3-4 years | 310,410,065.83 |
| 4-5 years | 167,362,816.66 |
| Over 5 years | 299,792,147.32 |
| Total | 10,935,814,160.72 |
(2) Allowances for Doubtful Accounts Established or Reversed in the Current PeriodAllowances for doubtful accounts in the current period:
Unit: RMB
| Type | Opening balance | Change in the current period | Closing balance | |||
| Established | Reversed | Written off | Others | |||
| Allowances for doubtful accounts established on the individual basis | 52,130,804.20 | 81,213,348.62 | 9,968,372.45 | 123,375,780.37 | ||
| Allowances for doubtful accounts established on the grouping basis | 1,135,176,365.99 | 108,254,809.07 | 9,047,393.00 | 1,234,383,782.06 | ||
| Total | 1,187,307,170.19 | 189,468,157.69 | 19,015,765.45 | 1,357,759,562.43 | ||
Significant reversed allowances for doubtful accounts in the current period:
Unit: RMB
| Entity | Amount reversed | Way of recovery |
(3) Accounts Receivable Written Off in the Current Period
Unit: RMB
| Item | Amount written off |
| Accounts receivable written off | 19,015,765.45 |
Significant accounts receivable written off:
Unit: RMB
| Entity | Nature of account receivable | Amount written off | Reason for write-off | Write-off procedure executed | Arising from a related-party transaction or not |
| Zhejiang Zhongqing Real Estate Co., Ltd. | Engineering payment | 9,968,372.45 | Expectedly irrecoverable | Approval procedure for write-offs | Not |
| Liaoning Bihu Hot Spring Club Management Co., Ltd. | Engineering payment | 7,047,393.00 | Expectedly irrecoverable | Approval procedure for write-offs | Not |
| Foshan International Furniture EXPO MALL | Engineering payment | 2,000,000.00 | Expectedly irrecoverable | Approval procedure for write-offs | Not |
| Total | -- | 19,015,765.45 | -- | -- | -- |
Notes:
(4) Top Five Entities with Respect to Accounts Receivable
Unit: RMB
| Entity | Closing balance of accounts receivable | As a % of the closing balance of total accounts receivable | Closing balance of allowances for doubtful accounts |
| Entity 1 | 462,637,728.73 | 4.23% | 23,131,886.44 |
| Entity 2 | 141,511,109.64 | 1.29% | 7,075,555.48 |
| Entity 3 | 135,741,214.70 | 1.24% | 6,787,060.74 |
| Entity 4 | 120,928,130.57 | 1.11% | 6,046,406.53 |
| Entity 5 | 119,712,118.87 | 1.10% | 5,985,605.94 |
| Total | 980,530,302.51 | 8.97% |
(5) Accounts Receivable Derecognized due to Transfer of Financial Assets
| Way of transfer of financial assets | Amount of accounts receivable derecognized | Gain or loss on derecognition |
| Factoring of accounts receivable | 473,441,103.31 | -23,282,185.98 |
In 2020, the Company as the parent transferred, without recourse, accounts receivable ofRMB473,441,103.31 to financial institutions, and the relevant loss stood at RMB23,282,185.98.
(6) Assets and Liabilities Arising from Continuing to Involve in Accounts Receivable upon TransferOther information:
2. Other Receivables
Unit: RMB
| Item | Closing balance | Opening balance |
| Dividends receivable | 40,000,000.00 | 40,000,000.00 |
| Other receivables | 295,745,131.01 | 329,029,544.53 |
| Total | 335,745,131.01 | 369,029,544.53 |
(1) Interest Receivable
1) Interest Receivable by Type
Unit: RMB
| Item | Closing balance | Opening balance |
2) Substantial Interest Overdue
| Borrower | Closing balance | Overdue time | Reason | Any impairment and basis for impairment judgment |
Other information:
3) Allowances for Doubtful Interest Receivable
□ Applicable √ Not applicable
(2) Dividends Receivable
1) Dividends Receivable by Type
Unit: RMB
| Item (or investee) | Closing balance | Opening balance |
| Suzhou Gold Mantis Landscape Co., Ltd. | 40,000,000.00 | 40,000,000.00 |
| Total | 40,000,000.00 | 40,000,000.00 |
2) Substantial Dividends Receivable Over 1 Year
Unit: RMB
| Item (or investee) | Closing balance | Aging | Reason for being outstanding | Any impairment and basis for impairment judgment |
3) Allowances for Doubtful Dividends Receivable
□ Applicable √ Not applicable
Other information:
(3) Other Receivables
1) Other Receivables by Nature
Unit: RMB
| Nature of other receivable | Closing balance | Opening balance |
| Internal current accounts | 194,097,292.19 | 227,041,086.85 |
| Security deposits | 154,539,803.28 | 153,003,005.75 |
| Others | 11,481,548.41 | 15,157,554.75 |
| Less: allowances for doubtful accounts | -64,373,512.87 | -66,172,102.82 |
| Total | 295,745,131.01 | 329,029,544.53 |
2) Allowances for Doubtful Other Receivables
Unit: RMB
| Allowances | Stage 1 | Stage 2 | Stage 3 | Total |
| 12-month expected credit loss | Lifetime expected credit loss (without credit impairment) | Lifetime expected credit loss (with credit impairment) |
| Balance as at 1 January 2020 | 66,172,102.82 | 66,172,102.82 | ||
| Balance as at 1 January 2020 in the current period | —— | —— | —— | —— |
| Established in the current period | -1,648,589.95 | -1,648,589.95 | ||
| Written off in the current period | 150,000.00 | 150,000.00 | ||
| Balance as at 31 December 2020 | 64,373,512.87 | 64,373,512.87 |
Balances with significant changes in loss allowances in the current period:
□ Applicable √ Not applicable
By aging:
Unit: RMB
| Aging | Closing balance |
| Within 1 year (inclusive) | 257,704,366.85 |
| 1-2 years | 31,799,170.69 |
| 2-3 years | 11,146,588.48 |
| Over 3 years | 59,468,517.86 |
| 3-4 years | 7,561,596.90 |
| 4-5 years | 3,888,002.92 |
| Over 5 years | 48,018,918.04 |
| Total | 360,118,643.88 |
3) Allowances for Doubtful Other Receivables Established or Reversed in the Current Period
Allowances for doubtful other receivables in the current period:
Unit: RMB
| Type | Opening balance | Change in the current period | Closing balance | |||
| Established | Reversed | Written off | Others | |||
| Established on the grouping basis | 66,172,102.82 | -1,648,589.95 | 150,000.00 | 64,373,512.87 | ||
| Total | 66,172,102.82 | -1,648,589.95 | 150,000.00 | 64,373,512.87 | ||
Significant reversed allowances in the current period:
Unit: RMB
| Entity | Amount reversed | Way of recovery |
4) Other Receivables Written off in the Current Period
Unit: RMB
| Item | Amount written off |
| Other receivables written off | 150,000.00 |
Significant other receivables written off:
Unit: RMB
| Entity | Nature of other receivable | Amount written off | Reason for write-off | Write-off procedure executed | Arising from a related-party transaction or not |
Notes:
5) Top Five Entities with Respect to Other Receivables
Unit: RMB
| Entity | Nature of other receivable | Closing balance | Aging | As a % of the closing balance of total other receivables | Closing balance of allowances for doubtful other receivables |
| Entity 1 | Internal current accounts | 160,759,691.66 | Within 1 year | 44.64% | |
| Entity 2 | Security deposit for engineering project | 39,484,676.77 | Over 5 years | 10.96% | 39,484,676.77 |
| Entity 3 | Internal current accounts | 21,594,590.98 | Within 1 year | 6.00% | |
| Entity 4 | Internal current accounts | 11,722,739.77 | 2-4 years | 3.25% | |
| Entity 5 | Security deposit for execution | 10,573,100.00 | 0-2 years | 2.94% | 1,050,859.43 |
| Total | -- | 244,134,799.18 | -- | 67.79% | 40,535,536.20 |
6) Other Receivables Associated with Government Grants
Unit: RMB
| Entity | Title of government grant | Closing balance | Closing aging | Expected time of receipt and amount to be received, as well as judgment basis |
7) Other Receivables Derecognized due to Transfer of Financial Assets
8) Assets and Liabilities Arising from Continuing to Involve in Other Receivables upon TransferOther information:
3. Long-term Equity Investments
Unit: RMB
| Item | Closing balance | Opening balance | ||||
| Gross amount | Impairment allowances | Carrying amount | Gross amount | Impairment allowances | Carrying amount | |
| Investments in subsidiaries | 2,504,132,432.26 | 2,504,132,432.26 | 2,438,659,209.93 | 2,438,659,209.93 | ||
| Investments in joint ventures and associates | 11,530,042.59 | 11,530,042.59 | ||||
| Total | 2,504,132,432.26 | 0.00 | 2,504,132,432.26 | 2,450,189,252.52 | 0.00 | 2,450,189,252.52 |
(1) Investments in Subsidiaries
Unit: RMB
| Investee | Opening balance (carrying amount) | Change in the current period | Closing balance (carrying amount) | Closing balance of impairment allowance | |||
| Additional investment | Reduced investment | Impairment allowance | Others | ||||
| Suzhou Gold Mantis Construction Investment Co., Ltd. | 500,000,000.00 | 500,000,000.00 | |||||
| Suzhou Gold Mantis Curtain Wall Co., Ltd. | 420,014,675.50 | 420,014,675.50 | |||||
| Singapore Gold Mantis Pte. Ltd. | 274,808,342.50 | 3,032,422.33 | 277,840,764.83 | ||||
| Suzhou Meiruide Construction Decoration Co., Ltd. | 244,883,165.56 | 244,883,165.56 | |||||
| Shuicheng Ruitong Construction and Development Co., Ltd. | 234,034,290.00 | 234,034,290.00 | |||||
| Gold Mantis (International) Construction Decoration Limited | 135,387,794.66 | 61,410,800.00 | 196,798,594.66 | ||||
| Gold Mantis Municipal Engineering Construction (Guizhou) Co., Ltd. | 122,000,000.00 | 122,000,000.00 | |||||
| Suzhou Industrial Park Jindejin Construction Engineering Co., Ltd. | 113,792,000.00 | 1,030,000.00 | 114,822,000.00 | ||||
| Gold Mantis E-commerce Co., Ltd. | 105,700,000.00 | 105,700,000.00 | |||||
| Suzhou Gold Mantis Landscape Co., Ltd. | 100,000,000.00 | 100,000,000.00 | |||||
| Suzhou Industrial Park Gold Mantis Furniture Design and Manufacturing Co., Ltd. | 64,583,418.38 | 64,583,418.38 | |||||
| Xi’an Hi-tech Zone Jinchuang Commercial Operation Management | 58,555,500.00 | 58,555,500.00 |
| and Development Co., Ltd. | |||||||
| Gold Mantis Art Co., Ltd. | 15,000,000.00 | 15,000,000.00 | |||||
| Liaoning Gold Mantis Construction Decoration Co., Ltd. | 10,000,000.00 | 10,000,000.00 | |||||
| Suzhou Jijia Materials Co., Ltd. | 10,000,000.00 | 10,000,000.00 | |||||
| Archi-Feeling Design (SuZhou) Co., Ltd. | 7,700,000.00 | 7,700,000.00 | |||||
| Suzhou Huali Jinshi Construction Decoration Co., Ltd. | 7,200,000.00 | 7,200,000.00 | |||||
| Gold Mantis North China (Beijing) Construction Decoration Engineering Co., Ltd. | 6,000,000.00 | 6,000,000.00 | |||||
| Gold Mantis East China Construction Decoration Co., Ltd. | 5,000,000.00 | 5,000,000.00 | |||||
| Suzhou Jinpu No. 9 Cultural Industrial Development Co., Ltd. | 4,000,000.00 | 4,000,000.00 | |||||
| Sierra Gold Mantis Joint Venture | 23.33 | 23.33 |
| (Private) Limited | |||||||
| Total | 2,438,659,209.93 | 65,473,222.33 | 2,504,132,432.26 |
(2) Investments in Joint Ventures and Associates
Unit: RMB
| Investee | Opening balance (carrying amount) | Change in the current period | Closing balance (carrying amount) | Closing balance of impairment allowance | |||||||||
| Additional investment | Reduced investment | Return on investment recognized using the equity method | Adjustment to other comprehensive income | Other equity changes | Declared cash dividends or profit | Impairment allowance | Others | ||||||
| 1. Joint ventures | |||||||||||||
| 2. Associates | |||||||||||||
| Zhejiang Tianyu Commercial Operation Management Co., Ltd. | 11,530,042.59 | 9,139,622.09 | -2,390,420.50 | 0.00 | 0.00 | ||||||||
| Subtotal | 11,530,042.59 | 9,139,622.09 | -2,390,420.50 | ||||||||||
| Total | 11,530,042.59 | 9,139,622.09 | -2,390,420.50 | ||||||||||
(3) Other Information
On 22 December 2017, the Company and its subsidiary Refined Decoration & Technologyinvested to establish Zhejiang Tianyu Commercial Operation Management Co., Ltd. jointly withZhongtian Holdings Group Co., Ltd., with a registered capital of RMB50 million. Specifically, theCompany contributed RMB17.50 million, accounting for 35.00% of the registered capital; RefinedDecoration & Technology contributed RMB7.50 million, accounting for 15.00% of the registeredcapital. Since the Company was able to exert a significant influence on Zhejiang Tianyu CommercialOperation Management Co., Ltd., the equity method was adopted for accounting.
In September 2020, the Company and its subsidiary Refined Decoration & Technologytransferred their 50% stake in Zhejiang Tianyu Commercial Operation Management Co., Ltd. toHangzhou Tianshuo Apartment Management Co., Ltd. based on the Agreement on Equity Transferand Relevant Matters signed between the Company and its subsidiary Refined Decoration &Technology and Hangzhou Tianshuo Apartment Management Co., Ltd., and the registration ofindustrial and commercial changes was completed on 29 October 2020.
4. Operating Revenue and Cost of Sales
Unit: RMB
| Item | Current period | Last year | ||
| Revenue | Costs | Revenue | Costs | |
| Core businesses | 19,445,885,694.44 | 16,079,983,238.34 | 18,377,524,760.69 | 14,954,507,348.54 |
| Other businesses | 42,556,252.10 | 6,765,516.71 | 29,910,400.52 | 4,201,238.05 |
| Total | 19,488,441,946.54 | 16,086,748,755.05 | 18,407,435,161.21 | 14,958,708,586.59 |
Revenue information:
Unit: RMB
| By contract category | Segment 1 | Segment 2 | Total | |
| Of which: | ||||
| Of which: | ||||
| Of which: | ||||
| Of which: | ||||
| Of which: | ||||
| Of which: | ||||
| Of which: |
Information related to performance obligations:
NoneInformation related to the transaction price allocated to residual performance obligations:
At the end of the Reporting Period, the amount of income corresponding to performance obligations that had been contracted but notyet performed or fully performed was RMB16,343,266,487.17, of which RMB was expected to be recognized in year , RMBwas expected to be recognized in year , and RMB was expected to be recognized in year .Other information:
(1) Top Five Customers with Respect to Operating Revenue
| Customer | Operating revenue generated from the customer | As a % of the total operating revenue |
| Customer 1 | 3,944,681,195.05 | 20.24 |
| Customer 2 | 1,108,396,916.19 | 5.69 |
| Customer 3 | 344,326,369.83 | 1.77 |
| Customer 4 | 262,020,032.31 | 1.34 |
| Customer 5 | 218,894,281.29 | 1.12 |
| Total | 5,878,318,794.67 | 30.16 |
5. Return on investment
Unit: RMB
| Item | Current period | Last year |
| Return on long-term equity investments measured using the equity method | -2,390,420.50 | -4,226,587.96 |
| Income from the disposal of long-term equity investments | 8,360,377.91 | |
| Income from the disposal of held-for-trading financial assets | 19,931,299.18 | 23,039,034.33 |
| Income derived during the period of holding other non-current financial assets | 887,120.46 | 4,367,000.00 |
| Income from the disposal of other non-current financial assets | 23,774,839.16 | |
| Return on long-term equity investments measured using the cost method | 100,000,000.00 | |
| Interest expense on discounted receivables financing | -4,770,456.83 | -2,596,842.70 |
| Total | 22,017,920.22 | 144,357,442.83 |
6. Other Information
XVIII Supplementary Information
1. Schedule of Exceptional Gains and Losses in the Current Period
√ Applicable □ Not applicable
Unit: RMB
| Item | Amount | Note |
| Gain or loss on disposal of non-current assets | 16,701,006.66 | |
| Government grants through profit or loss (exclusive of government grants given in the Company’s ordinary course of business at fixed quotas or amounts as per the | 54,243,752.72 |
| government’s uniform standards) | ||
| Capital occupation charges on non-financial enterprises that are recognized in profit or loss | 1,428,722.80 | |
| Gain or loss on fair-value changes on held-for-trading and derivative financial assets and liabilities & income from disposal of held-for-trading and derivative financial assets and liabilities and other debt investments (exclusive of the effective portion of hedges that arise in the Company’s ordinary course of business) | 35,346,523.09 | |
| Reversed portions of impairment allowances for receivables and contract assets which are tested individually for impairment | 3,356,920.55 | |
| Non-operating income and expense other than the above | -3,385,100.86 | |
| Less: Income tax effects | 19,092,692.94 | |
| Non-controlling interests effects (net of tax) | 3,965,266.47 | |
| Total | 84,633,865.55 | -- |
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the ExplanatoryAnnouncement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/LossItems:
□ Applicable √ Not applicable
2. Return on Equity (ROE) and Earnings per Share (EPS)
| Profit of the Reporting Period | Weighted average ROE | EPS | |
| Basic EPS (RMB/share) | Diluted EPS (RMB/share) | ||
| Net profit attributable to ordinary shareholders of the Company | 14.83% | 0.88 | 0.89 |
| Net profit attributable to ordinary shareholders of the Company before exceptional gains and losses | 14.30% | 0.85 | 0.86 |
3. Accounting Data Differences under China’s Accounting Standards for Business Enterprises (CAS) andInternational Financial Reporting Standards (IFRS) and Foreign Accounting Standards
(1) Net Profit and Equity under CAS and IFRS
□ Applicable √ Not applicable
(2) Net Profit and Equity under CAS and Foreign Accounting Standards
□ Applicable √ Not applicable
(3) Please explain reasons for accounting data differences under CAS and IFRS and foreign accountingstandards. Where any reconciliation is carried out on the differences of the data audited by an overseasaudit firm, the name of the overseas audit firm shall be specified.
4. Other Information
Part XIII Documents Available for Reference
1. The financial statements signed and stamped by the Company’s legal representative, Chief Financial Officerand head of the accounting department;
2. The original copy of the Independent Auditor’s Report signed and stamped by the certified public accountantsand stamped by the CPA firm;
3. All the originals of the Company’s announcements and documents that were disclosed to the public during theReporting Period on the media designated by the CSRC for information disclosure; and
4. The 2020 Annual Report carrying the signature of the Company’s legal representative.
5. The aforesaid documents are available in the Securities Department of the Company at No. 888 West RingRoad, Suzhou City, Jiangsu Province, China.
Suzhou Gold Mantis Construction Decoration Co., Ltd.
Chairman of the Board: Wang Hanlin
30 April 2021