深圳市深宝实业股份有限公司 2017 年半年度报告全文
深圳市深宝实业股份有限公司
SHENZHEN SHENBAO INDUSTRIAL CO.,LTD.
SEMI-ANNUAL REPORT 2017
August 2017
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Section I. Important Notice, Contents and Paraphrase
Board of Directors, Supervisory Committee, all directors, supervisors and senior
executives of Shenzhen Shenbao Industrial Co., Ltd.(hereinafter referred to as
the Company) hereby confirm that there are no any fictitious statements,
misleading statements, or important omissions carried in this report, and shall
take all responsibilities, individual and/or joint, for the reality, accuracy and
completion of the whole contents.
Chairman of the Company Zheng Yuxi, General Manager Yan Zesong, Chief
Financial Officer Wang Zhiping and Financial Management Department
Manager Xu Qiming hereby confirm that the Financial Report of Semi-Annual
Report 2017 is authentic, accurate and complete.
All Directors are attended the Board Meeting for deliberation of this Report.
Concerning the forward-looking statements with future planning involved in the
annual report, they do not constitute a substantial commitment for investors,
Securities Times, China Securities Journal, Hong Kong Commercial Daily and
Juchao Website (www.cninfo.com.cn) are the media appointed by the Company
for information disclosure, all information of the Company disclosed in the
above mentioned media should prevail. Investors are advised to exercise caution
of investment risks.
The Company has analyzed the risk factors that the Company may exist and its
countermeasures in the report, investors are advised to pay attention to read
“Risks and Countermeasures” in the report of Section IV-Discussion and
Analysis of the Operation.
The Company plans not to distributed cash dividend, bonus and no capitalizing
of common reserves either.
This report has been prepared in Chinese and English version respectively. In
the event of difference in interpretation between the two versions, Chinese
report shall prevail.
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Contents
Section I. Important Notice, Contents and Paraphrase .......................................... 2
Section II Company Profile and Main Financial Indexes ....................................... 5
Section III Summary of Company Business ............................................................. 9
Section IV Discussion and Analysis of the Operation ............................................ 11
Section V. Important Events ..................................................................................... 21
Section VI. Changes in Shares and Particulars about Shareholders ................... 28
Section VII. Preferred Stock ..................................................................................... 33
Section VIII. Particulars about Directors, Supervisor and Senior Executives ... 34
Section IX Corporate Bonds..................................................................................... 36
Section X. Financial Report...................................................................................... 37
Section XI. Documents available for Reference ................................................... 162
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Paraphrase
Items Refers to Contents
Shenshenbao/Shenbao Company/ Listed
Refers to Shenzhen Shenbao Industrial Co., Ltd.
Company /the Company/
Shenbao Huacheng Refers to Shenzhen Shenbao Huacheng Science and Technology Co.,Ltd
Wuyuan Ju Fang Yong Refers to Wuyuan Ju Fang Yong Tea Industry Co., Ltd.
Hangzhou Ju Fang Yong Refers to Hangzhou Ju Fang Yong Holding Co., Ltd.
Shenbao Technology Center Refers to Shenzhen Shenbao Technology Center Co., Ltd.
Huizhou Shenbao Science & Technology Refers to Huizhou Shenbao Science & Technology Co., Ltd.
Shenzhen Shenbao Sanjing Food & Beverage Development Co.,
Shenbao Sanjing Refers to
Ltd
Shenbao Industrial & Trading Refers to Shenzhen Shenbao Industrial & Trading Co., Ltd.
Shenbao Properties Refers to Shenzhen Shenbao Properties Management Co., Ltd.
Shenshenbao Investment Refers to Shenzhen Shenshenbao Investment Co., Ltd.
Yunnan Supply Chain Refers to Yunnan Shenbao Pu’er Tea Supply Chain Management Co., Ltd
Fuhaitang Ecological Refers to Fuhaitang Tea Ecological Technology Co., Ltd.
Chunshi Network Refers to Hangzhou Chunshi Network Technology Co., Ltd.
Ju Fang Yong Commerce Refers to Hangzhou Ju Fang Yong Commerce Co., Ltd.
Shenzhen Shenshenbao Tea Culture Business Management Co.,
Shenshenbao Tea Culture Refers to
Ltd.
Pu’er Tea Exchange Center Refers to Yunnan Pu’er Tea Exchange Center Co., Ltd.
Huizhou Shenbao Food Refers to Huizhou Shenbao Food Co., Ltd.
Shenbao Rock Tea Refers to Mount Wuyi Shenbao Rock Tea Co., Ltd.
Agricultural Products Refers to Shenzhen Agricultural Products Co., Ltd
Shenzhen Investment Holding Refers to Shenzhen Investment Holding Co., Ltd
Shenzhen Municipal People’s Government State-owned Assets
Shenzhen SASAC Refers to
Supervision & Administration Commission
CSRC Refers to China Securities Regulation Commission
SSE Refers to Shenzhen Stock Exchange
Dahua Certified Public Accountants (Special General
Dahua CPA Refers to
Partnership)
Article of Association Refers to Article of Association of Shenzhen Shenbao Industrial Co., Ltd
RMB/10 thousand Yuan Refers to CNY/ten thousand Yuan
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Section II Company Profile and Main Financial Indexes
I. Company profile
SHENSHENBAO-A,
Short form for share Stock code 000019, 200019
SHENSHENBAO-B
Listing stock exchange Shenzhen Stock Exchange
Chinese name of the
深圳市深宝实业股份有限公司
Company
Abbr. of Chinese name of
the Company (if 深宝
applicable)
English name of the
SHENZHEN SHENBAO INDUSTRIAL CO.,LTD.
Company(if applicable)
Abbr. of English name of
the Company(if SBSY
applicable)
Legal Representative Zheng Yuxi
II. Person/Way to contact
Secretary of the Board Rep. of security affairs
Name Li Yiyan Huang Bingxia
8/F, Tower-B, Building 4, Software 8/F, Tower-B, Building 4, Software
Industry Base, Science & Industry Base, Science &
Contact add.
Technology Park (South), Xuefu Technology Park (South), Xuefu
Road, Nanshan District, Shenzhen Road, Nanshan District, Shenzhen
Tel. 0755-82027522 0755-82027522
Fax. 0755-82027522 0755-82027522
E-mail lyy@sbsy.com.cn huangbx@sbsy.com.cn
III. Others
1. Way of contact
Whether registrations address, offices address and codes as well as website and email of the Company changed in
reporting period or not
□ Applicable √ Not applicable
Registrations address, offices address and codes as well as website and email of the Company has no change in
reporting period, found more details in Annual Report 2016
深圳市深宝实业股份有限公司 2017 年半年度报告全文
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
The newspaper appointed for information disclosure, website for semi-annual report publish appointed by CSRC
and preparation place for semi-annual report have no change in reporting period, found more details in Annual
Report 2016
IV. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data
□Yes √No
Same period of last
Current period Changes over last year
year
Operating revenue (RMB) 138,158,382.95 149,155,529.71 -7.37%
Net profit attributable to
shareholders of the listed -17,759,776.83 -15,099,180.63 -17.62%
Company(RMB)
Net profit attributable to
shareholders of the listed
Company after deducting -19,357,560.01 -20,333,457.37 4.80%
non-recurring gains and
losses(RMB)
Net cash flow arising from
-50,432,648.15 31,597,947.36 -259.61%
operating activities(RMB)
Basic earnings per share
-0.0357 -0.0304 -17.43%
(RMB/Share)
Diluted earnings per share
-0.0357 -0.0304 -17.43%
(RMB/Share)
Weighted average ROE -1.74% -1.63% -0.11%
End of current period End of last year Changes over end of last year
Total assets (RMB) 1,121,549,159.24 1,178,543,725.30 -4.84%
Net assets attributable to
shareholder of listed 991,427,598.24 1,031,768,388.87 -3.91%
Company(RMB)
V. Difference of the accounting data under accounting rules in and out of China
1. Difference of the net profit and net assets disclosed in financial report, under both IAS
(International Accounting Standards) and Chinese GAAP (Generally Accepted Accounting
Principles)
√ Applicable □ Not applicable
In RMB
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Net profit attributable to shareholders of Net assets attributable to shareholders of
listed Company listed Company
Current period Last period Period-end Period-begin
Chinese GAAP -17,759,776.83 -15,099,180.63 991,427,598.24 1,031,768,388.87
Items and amount adjusted by IAS
Adjustment for other
payable fund of stock 1,067,000.00 1,067,000.00
market regulation
IAS -17,759,776.83 -15,099,180.63 992,494,598.24 1,032,835,388.87
2. Difference of the net profit and net assets disclosed in financial report, under both foreign
accounting rules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company has no above mentioned condition occurred in the period
3. Explanation on differences of the data under accounting standards in and out of China
□ Applicable √ Not applicable
VI. Items and amounts of extraordinary profit (gains)/loss
√ Applicable □ Not applicable
In RMB
Item Amount Note
Gains/losses from the disposal of non-current asset (including the
-21,015.26
write-off that accrued for impairment of assets)
Governmental subsidy reckoned into current gains/losses (not
including the subsidy enjoyed in quota or ration according to
1,002,062.22
national standards, which are closely relevant to enterprise’s
business)
Profit and loss of assets delegation on others’ investment or
1,252,661.10
management
Gains and losses from change of fair values of held-for-transaction
financial assets and financial liabilities except for the effective
hedge business related to normal business of the Company, and -990,762.24
investment income from disposal of transactional financial assets
and liabilities and financial assets available for sale
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Other non-operating income and expenditure except for the
370,612.55
aforementioned items
Less: impact on income tax 11,131.51
Impact on minority shareholders’ equity (post-tax) 4,643.68
Total 1,597,783.18 --
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for Companies
Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according to
the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their
Securities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable √ Not applicable
In reporting period, the Company has no particular about items defined as recurring profit (gain)/loss according to the lists of
extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to
the Public --- Extraordinary Profit/loss
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Section III Summary of Company Business
I. Main businesses of the Company in the reporting period
Does the Company need to comply with disclosure requirements of the special industry?
□Yes √ No
The Company focuses on tea industry development, established relatively complete industrial chain involving tea
cultivation, purified tea, tea extract, boutique tea sales, tea cultural experience, e-commerce, tea trading platform
and tea finance. Its main business comprises tea refining and fine tea sales, tea-life experience, tea e-commerce,
food and beverage, research and development. The Company has formed direction of \"health technology\" based
on plant extraction technology, \"industrial services\" based on core business ranging from tea trading center
finance, electronic trading, modern logistics, \"life experience\" based on core business of Tea bank\Fuhai Tong
Fashion- Tea consumption. Main products are \"Golden Eagle\" instant tea powder, juice ect series; \"Jufangyong\",
\"Gutan\", \"Fuhai Tong\" ect series; \"Mitsui\" oyster sauce, chicken, seafood sauce and other condiments; \"Shenbao\"
chrysanthemum tea, lemon tea, herbal tea and other drinks.
II. Major changes in main assets
1. Major changes in main assets
Major assets Note of major changes
Equity assets No major Change
Fixed assets No major Change
Intangible assets No major Change
Construction in progress No major Change
Decrease of the monetary fund in the period: 1. cash paid for purchasing
financing products increased from a year earlier; 2. income tax for last year
Monetary fund are paid in the period; 3. major margin received at same period of last year
while there are no such amounted occurred in the period; 4. cash bonus paid
in the period; and 5. cash received from sales of goods declined.
Increase of other current assets: balance of financing products at period-end
Other current assets
increased from a year earlier.
2. Main overseas assets
□ Applicable √ Not applicable
III. Core Competitiveness Analysis
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Does the Company need to comply with disclosure requirements of the special industry?
□Yes √ No
During the reporting period, core competence wasn’t significantly changed. The Company has established
relatively complete industrial chain involving tea cultivation, purified tea, tea extract, boutique tea sales, tea
cultural experience, e-commerce, tea trading platform and tea finance, forming a good industrial base; relying
strong R & D capabilities, leading edge technology, two state-level high-tech enterprises, a quality control system
recognized by large international food and beverage companies, the Company brought a group of high-quality
large domestic and foreign clients. The Company will continue to innovate institutional mechanisms, innovative
ideas, innovative products to enhance synergies and core competitiveness of the tea industry chain.
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Section IV Discussion and Analysis of the Operation
I. Introduction
During the reporting period, the company spared no efforts to implement various management measures, strived
to consolidate the industrial base and enhance the industrial value, combined with the existing industrial layout
and market development trends, initially determined the strategic direction of health industry, and focused on the
existing business development planning to adjust and comb the business model, improved the strategic orientation,
further promoted the scientific and technological innovation, and vigorously expanded the main business, and
enhanced the profitability and core competitiveness of the enterprise.
As the core driving force for the scientific research and industry development, the company's technology center
determined the “development of healthy and functional tea and deep processing products” project in the first half
of the year, and continued to strengthen the development of application products, put forth efforts to open the
production and research and efficiency channels, accelerated the transformation of scientific research
achievements, and provided reviving function for the development of industrial chain, in the first half of 2017, it
totally researched and developed 21 new tea products which were approved by the customer, and completed the
applications for 8 government projects. All business sectors developed smoothly, the deep processing division
spared no efforts to expand export business and orders were basically stable, and achieved outstanding results in
reducing consumption and increasing efficiency, optimizing supply chain and strictly controlling costs;
Hangzhou Ju Fang Yong continued to expand commercial channels and innovate products, took Longjing tea and
small gift business as channels for brand interaction and cooperation with outstanding platforms and resources in
the industry by “offline store drainage and online precipitation” so as to promote the brand awareness and
gradually increase the performance; In April 2017, Hangzhou Ju Fang Yong set up Hangzhou Fu Hai Tang
Restaurant Management Co., Ltd. to operate the fast drink business of Fu Hai Tang, increased the species richness
and diversification of store products by developing light food and fruit tea products, increase the units per
transaction, promoted the performance enhancing, and tried out to open the chain system to expand customers at
the same time, and has consulted and completed the cooperation matters with some customers at present; In July
2017, Teabank became the company's wholly-owned brand after confirming the stock right assigning, and the
business model of Shenbao Teabank has preliminarily established. During the reporting period, the company
continued to integrate resources for various industrial service platforms and broaden the enterprise's sustainable
development space, at present, it has completed the integration of all e-commerce platforms of Shenbao, gathered
and centralized the scattered network flow of all business sectors by online exhibition sales and marketing of tea
and derivatives, and promoted the value conversion. In the first half of the year, the company initially completed
the brand integration work, set up Shenbao Teabank for the collection and operating of fine tea business, the
relevant work at earlier stage has been completed at present, and the company has implemented the product
development and production plan of the first batch of retail tea for external sales.
In the first half of 2017, the company achieved total operating income of RMB 138,158,382.95, a decrease of
深圳市深宝实业股份有限公司 2017 年半年度报告全文
7.37% over the same period last year; achieved operating profits of RMB -21,509,006.38, an increase of 16.66%
over the same period last year; and achieved net profits attributable to shareholders of listed companies of RMB
-17,759,776.83, a decrease of 17.62% over the same period last year. The main reasons for the changes in net
profits attributable to shareholders of listed companies were that the operating income in the current period
decreased compared with the same period of last year, the company received settlement payment in the same
period of last year but didn’t in the current period, and the non-operating income decreased compared with the
same period of last year.
II. Main business analysis
See the “I-Introduction” in “Discussion and Analysis of the Operation”
Y-o-y changes of main financial data
In RMB
Same period of last Y-o-y
Current period Reasons for changes
year increase/decrease
Operation revenue 138,158,382.95 149,155,529.71 -7.37%
Operation cost 104,400,839.32 116,893,235.04 -10.69%
Sales expenses 21,174,407.31 20,601,283.18 2.78%
Management
33,082,783.76 34,369,699.17 -3.74%
expenses
Interest revenue in the Period increased from
Financial expenses -1,533,397.02 213,297.58 -818.90%
a year earlier
Income tax expense 36,586.58 -501,745.09 107.29%
R&D investment 1,162,154.46 1,442,268.22 -19.42%
Reasons for declined: 1. cash received from
good sales declined; 2. received major
Net cash flow
margins at same period of last year while no
arising from -50,432,648.15 31,597,947.36 -259.61%
such amount occurred in the period; and 3.
operation activities
income tax for last year are paid in this
period
Net cash flow
Cash paid for purchasing financial products
arising from -84,671,733.66 -33,549,430.36 -152.38%
increased over that of last year
investment activities
Net cash flow
arising from -17,904,646.76 -790,774.97 -2,164.19% Cash dividend paid in the period
financing activities
Net increase of cash
-153,076,370.04 -2,614,834.69 -5,754.15%
and cash equivalent
Monetary fund 205,487,872.79 358,564,242.83 -42.69% Decrease of the monetary fund in the period:
深圳市深宝实业股份有限公司 2017 年半年度报告全文
1. cash paid for purchasing financing
products increased from a year earlier; 2.
income tax for last year are paid in the
period; 3. major margin received at same
period of last year while there are no such
amounted occurred in the period; 4. cash
bonus paid in the period; and 5. cash
received from sales of goods declined.
Transactional Price of the stock held by the Company
2,260,176.36 3,250,938.60 -30.48%
financial assets drops
Account paid in
14,278,408.17 6,321,827.64 125.86% Inventory purchasing increased in the period
advance
Increase of other current assets: balance of
Other current assets 91,856,403.28 11,299,954.58 712.89% financing products at period-end increased
from a year earlier.
Short-term loans 10,000,000.00 5,000,000.00 100.00% New loans in the period
Purchasing of the raw materials in the period
Account payable 22,645,209.79 15,782,288.29 43.48%
increased
Performance-related pay for last year are
Wages payable 9,383,764.84 16,279,706.84 -42.36%
distributed in this period
Final settlement and payment of enterprise
Taxes payable 5,242,645.48 26,345,138.53 -80.10%
income taxes in this period
Bonus shares and dividend are paid to the
Retained profit 72,736,795.31 158,239,612.94 -54.03%
shareholders in this period
Associated company has deficit in this
Investment income 1,093,417.06 -898,654.15 221.67%
period
Received a compensation at same period of
Non-operational
1,024,229.54 6,218,417.29 -83.53% last year while no such account occurred in
revenue
this period
Major changes on profit composition or profit resources in reporting period
□ Applicable √ Not applicable
No major changes on profit composition or profit resources occurred in reporting period
Composition of main business
In RMB
Increase or Increase or Increase or
Gross profit decrease of decrease of decrease of gross
Operating revenue Operating cost
ratio operating revenue operating cost profit ratio over
over same period over same period same period of
深圳市深宝实业股份有限公司 2017 年半年度报告全文
of last year of last year last year
According to industries
Industry 121,219,608.71 96,382,162.58 20.49% -14.57% -16.35% 1.69%
Trading 13,664,854.16 6,571,143.93 51.91% 308.63% 315.41% -0.79%
According to products
Soft drink 15,227,181.14 10,502,335.78 31.03% 25.90% 5.98% 12.96%
Tea products 116,212,886.82 90,319,654.20 22.28% -9.72% -13.28% 3.19%
According to region
Exportation 7,027,084.57 4,869,073.53 30.71% -21.25% -26.58% 5.04%
South China 32,299,897.84 23,237,196.36 28.06% -31.72% -28.84% -2.91%
East China 67,445,554.63 50,063,223.58 25.77% -2.97% -15.81% 11.32%
Central
11,676,328.24 9,490,593.18 18.72% 21.67% 20.71% 0.65%
China
III. Analysis of the non-main business
□Applicable √Not applicable
IV. Assets and liability
1. Major changes of assets composition
In RMB
End of current period End of period of last year
Ratio
Ratio in Ratio in Notes of major changes
Amount Amount changes
total assets total assets
Decrease of the monetary
fund in the period: 1. cash
paid for purchasing
financing products
increased from a year
earlier; 2. income tax for
last year are paid in the
Monetary fund 205,487,872.79 18.32% 358,564,242.83 30.42% -12.10% period; 3. major margin
received at same period of
last year while there are no
such amounted occurred in
the period; 4. cash bonus
paid in the period; and 5.
cash received from sales of
goods declined.
Account 72,042,632.44 6.42% 62,582,867.63 5.31% 1.11%
深圳市深宝实业股份有限公司 2017 年半年度报告全文
receivable
Inventory 149,475,307.29 13.33% 140,951,059.39 11.96% 1.37%
Investment
18,637,070.20 1.66% 18,872,865.36 1.60% 0.06%
property
Long-term equity
5,707,237.59 0.51% 5,866,481.63 0.50% 0.01%
investment
Fix assets 323,793,293.30 28.87% 333,013,767.86 28.26% 0.61%
Construction in
54,574.34 0.00% 54,574.34 0.00% 0.00%
process
Short-term loans 10,000,000.00 0.89% 5,000,000.00 0.42% 0.47%
2. Assets and liability measured by fair value
√ Applicable □ Not applicable
In RMB
Amount
Changes of fair Accumulative Devaluation Amount
of
Amount at the value changes of fair of of sale in Amount in the
Items purchase
beginning period gains/losses in value reckoned into withdrawing the end of period
in the
this period equity in the period period
period
Financial assets
1. Financial assets
measured by fair
value and whose
change is recorded
3,250,938.60 -990,762.24 1,179,110.27 2,260,176.36
in current gains and
losses (excluding
derivative financial
assets)
Aforementioned
3,250,938.60 -990,762.24 1,179,110.27 2,260,176.36
total
Financial liabilities 0.00 0.00
Whether there have major changes on measurement attributes for main assets of the Company in report period or
not
□ Yes √No
3. The assets rights restricted till end of the period
Nil
深圳市深宝实业股份有限公司 2017 年半年度报告全文
V. Investment analysis
1. Overall situation
√ Applicable □ Not applicable
Investment in reporting period (Yuan) Investment in the same period of last year (Yuan) Range
5,500,000.00 6,375,000.00 -13.73%
2. The major equity investment obtained in the reporting period
□ Applicable √ Not applicable
3. The major non-equity investment carrying in the reporting period
□ Applicable √ Not applicable
4. Financial assets investment
(1) Securities investment
√ Applicable □ Not applicable
Changes in
Variety Short Book value fair value Cumulative Current Curren Profit and
Code of Initial Accounting
of form of at the of the fair value purchas t sales loss in the Book value Accounting Capital
securitie investmen measuremen at the end of
securitie securitie beginning of current changes in e amoun Reporting the period subject Source
s t cost t model
s s the period profit and equity amount t Period
loss
Domesti Shares repaid
Transactiona
c and Measured by 3,250,938.6 -990,762.2 1,179,110.2 -990,762.2 2,260,176.3 from debt
000017 CBC-A -- 0.00 0.00 l financial
overseas fair value 0 4 7 4 6 reorganizatio
assets
stock n
深圳市深宝实业股份有限公司 2017 年半年度报告全文
3,250,938.6 -990,762.2 1,179,110.2 -990,762.2 2,260,176.3
Total -- -- 0.00 0.00 -- --
0 4 7 4
Disclosure date of securities
investment approval of the Not applicable
Board
Disclosure date of securities
investment approval of the
Not applicable
Shareholder Meeting (if
applicable)
(2) Derivative investment
□ Applicable √ Not applicable
The Company has no derivatives investment in the Period
VI. Sales of major assets and equity
1. Sales of major assets
□ Applicable √ Not applicable
The Company had no sales of major assets in the reporting period.
2. Sales of major equity
□ Applicable √ Not applicable
VII. Analysis of main holding Company and stock-jointly companies
√ Applicable □ Not applicable
Particular about main subsidiaries and stock-jointly companies net profit over 10%
深圳市深宝实业股份有限公司 2017 年半年度报告全文
In RMB
Operating Operating
Company name Type Main business Industry Register capital Total assets Net Assets Net profit
revenue profit
Shenshenbao Investment
Subsidiary Comprehensive 50,000,000.00 36,998,930.33 26,622,668.95 3,052,329.52 -5,113,614.15 -5,103,523.76
Investment management
Production,
Hangzhou Ju
Subsidiary wholesale and Comprehensive 175,000,000.00 215,811,936.19 172,868,023.66 18,205,800.03 -3,407,994.18 -3,078,384.14
Fang Yong
retail business
Pu’er Tea Providing
Exchange Subsidiary service for tea Comprehensive 50,000,000.00 49,833,620.07 44,872,486.35 556,614.78 -2,089,534.90 -2,089,534.90
Center trading
Particular about subsidiaries obtained or disposed in report period
□Applicable √ Not applicable
Explanation on main holding/stock-jointly enterprise
1. Shenzhen Shenshenbao Investment Co., Ltd., the company’s wholly-owned subsidiary, business scope: investing and developing enterprises (declare specific
items separately); exchange, promotion and consultation services of tea knowledge and tea culture, tea art training; marketing of tea set, tea table, and root carving;
online trade, domestic trade (excluding monopoly and special control products); operating import and export business (excluding restricted items), with registered
capital of RMB 50,000,000. Up to the end of the reporting period, the total assets of Shenshenbao Investment amounted to RMB 36,998,930.33, the net assets were
RMB 26,622,668.95, and the equity attributable to shareholders of the parent company was RMB 31,286,738.96. During the reporting period, the operating income
was RMB 3,052,329.52, net profit was RMB -5,103,523.76, and the net profit attributable to the parent company was RMB -3,474,202.65.
2. Hangzhou Ju Fang Yong Holding Co., Ltd., a wholly owned subsidiary. Business scope: sell both retail and wholesale: wholesale, retail of the prepackaged food
and bulk food (pre-approval items should be operated within validity period ): tea set; acquisitions: tea business sales required (limited to the acquisition of the
original producer of primary industry directly); Services: Tea business investment and asset management, technology development, cultivation, breeding, technical
consulting, technical services, transfer of results, the other all legitimate projects without approval, subsidiaries’ business scope included. Register capital was RMB
175 million. Ended as this period-end, the total assets of Ju Fang Yong is RMB 215,811,936.19, and net assets amounting to RMB172,868,023.66, interest
attributable to shareholders of parent Company is RMB173,243,655.13; in the reporting period, Ju Fang Yong realized operation income, net profit and net profit
深圳市深宝实业股份有限公司 2017 年半年度报告全文
attributable to parent Company as RMB 18,205,800.03, RMB-3,078,384.14 and RMB -2,830,739.34 respectively.
3. Yunnan Pu'er Tea Exchange Center Co., Ltd., the company’s holding subsidiary, business scope: providing places, facilities and intermediaries, brokers, auctions,
finance, and advisory services for spot transactions and related financial services of tea and its agricultural and sideline products, industrial raw materials bulk
commodity, etc; other relevant project investment and management; meetings and exhibition services (projects need to be approved according to law, operating
activities can only be carried out after being approved by relevant departments ), with registered capital of RMB 50,000,000. Up to the end of the reporting period,
the total assets of Pu'er Tea Exchange amounted to RMB 49,833,620.07, the net assets were RMB 44,872,486.35, and the equity attributable to shareholders of parent
company was RMB 44,872,486.35; during the reporting period, the operating income was RMB 556,614.78, net profit was RMB -2,089,534.90, and the net profit
attributable to the parent company was RMB -2,089,534.90.
VIII. Structured vehicle controlled by the Company
□ Applicable √ Not applicable
IX. Prediction of business performance from January – September 2017
Estimation on accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the warning of its material change
compared with the corresponding period of the last year and explanation on reason
□ Applicable √ Not applicable
X. Risks and countermeasures
1. In recent years, the domestic beverage market growth has continued to slow down, subject to the decline in customer market, increase in the company’s costs, and
intensifying industrial competition and other reasons, the profits have slightly decreased; the company's business sectors in the market just cut a striking figure, the
recognition is limited, and the expected return has been relatively slow. In the second half of 2017, the company will increase the efforts to upgrading of existing
products, speed up the establishment of product databases, continue to adjust the product structure, product type, sales channels, and strive to improve the earnings.
2. The business structure transformation and upgrading face challenges, the enterprise operating costs continue to increase, the profit margins are squeezed, and the
scale profit margins need to be improved. In the second half of 2017, the company will continue to enhance the core strength of scientific research, promote the
深圳市深宝实业股份有限公司 2017 年半年度报告全文
product upgrading and innovation to enhance market competitiveness, and increase the overall profit margins.
3. In recent years, \"internet +\", sharing economy, and experience economy have risen, the development environment and consumer trends have been changing, the
company's business structure and talent structure have been relatively single, the team construction has lagged behind and talent team has lacked, resulting in
insufficient innovation ability and strain capacity when the company facing competition of new areas in the new business cultivation, which increased the cycle and
costs of business transformation. In the second half of 2017, the company will continue to introduce foreign professionals, cultivate internal directed talents,
strengthen the talent echelon construction, break through the upward development channels for staff, create career development opportunities, and complete the
company's employer brand building at the same time, and strengthen corporate culture propaganda.
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Section V. Important Events
I. Annual General Meeting and extraordinary shareholders general meeting held in this
period
1. AGM in the period
Investor
Sessions Type participation Opening date Disclosure date Disclosure index
(%)
Resolution Notice of AGM 2016 of
Annual
AGM of Shenzhen Shenbao Industrial Co., Ltd.
general 0.03% 2017-05-15 2017-05-16
2016 (Notice No.: 2017-13) released on Juchao
meeting
website dated 16 May 2017
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √ Not applicable
II. Profit distribution plan and capitalizing of common reserves plan for the Period
□ Applicable √ Not applicable
The Company plans not to carried out distribution of cash dividend, bonus shares and share converted from capital
reserve either for the half year
III. Commitments completed in Period and those without completed till end of the Period from actual
controller, shareholders, related parties, purchaser and companies etc.
□Applicable √ Not applicable
There are no commitments completed in Period and those without completed till end of the Period from actual
controller, shareholders, related parties, purchaser and companies etc.
IV. Appointment and non-reappointment (dismissal) of CPA
Whether the financial report has been audited or not
□Yes √No
The financial report has not been audited
深圳市深宝实业股份有限公司 2017 年半年度报告全文
V. Explanation from Board of Directors and Supervisory Committee for “Qualified Opinion”
that issued by CPA
□ Applicable √ Not applicable
VI. Explanation from the BOD for “Qualified Opinion” of last year
□ Applicable √ Not applicable
VII. Bankruptcy reorganization
□ Applicable √ Not applicable
No bankruptcy reorganization for the Company in end of this period
VIII. Lawsuits
Significant lawsuits and arbitrations
□ Applicable √ Not applicable
No significant lawsuits and arbitrations occurred in the reporting period
Other lawsuits
√Applicable □Not applicable
Amount Resulted
involved an Disclo Disclos
Trial result and Execution of
Lawsuits (arbitrations) (in 10 accrual Progress sure ure
influence judgment
thousand liability date index
Yuan) (Y/N)
Shenzhen Shenbao Industrial Co., Ltd.
The first instance
(hereinafter referred to as “Shenbao
judgment has been
Company”) received the Civil Complaint
issued, the court
from Shenzhen Agricultural Products
ruled to reject the
Financing Guarantee Co., Ltd. In second The verdict
appeal of
(hereinafter referred to as “Guarantee instance has not yet
500 N Guarantee - -
Company”) in July 2016, Case No.: procedure come into
Company that
(2016)Y0304MC15008, required without trial yet effect
Shenbao
Changzhou Shenbao Tea Warehousing
Company should
E-commerce Co., Ltd., a shareholding
undertake joint
enterprise of Shenbao Company, to repay
liability
the loan principal and interest, penalty
深圳市深宝实业股份有限公司 2017 年半年度报告全文
interest and compensation, with a total of
RMB 8,690,240.31, the shareholder
Shenbao Company undertook joint
liability for the (loan principal)
borrowings of RMB 5,000,000.00.
After holding a hearing, Shenbao
Company received the written judgment
of first instance in June 2017, the court
ruled to reject the appeal of Guarantee
Company that Shenbao Company should
undertake joint liability. Guarantee
Company refused to accept the judgment
of the first instance and appealed to
Shenzhen Intermediate People's Court,
and it is now in the second instance, but
not yet holds a court.
IX. Penalty and rectification
□ Applicable √ Not applicable
No penalty and rectification for the Company in reporting period.
X. Integrity of the Company and its controlling shareholders and actual controllers
√ Applicable □ Not applicable
During the reporting period, the Company and its controlling shareholder, actual controller always obeyed final
judgment in the court case, relatively large amount of debt overdue and other non-compliance.
XI. Implementation of the Company’s stock incentive plan, employee stock ownership plan or
other employee incentives
□ Applicable √ Not applicable
During the reporting period, the Company has no stock incentive plan, employee stock ownership plan or other
employee incentives that have not been implemented.
XII. Major related transaction
1. Related transaction with routine operation concerned
□ Applicable √ Not applicable
No related transaction occurred in the period with routine operation concerned
深圳市深宝实业股份有限公司 2017 年半年度报告全文
2. Assets or equity acquisition, and sales of assets and equity
□ Applicable √ Not applicable
No related transaction concerning the asses or equity acquisition and sold at period-end
3. Related transaction of foreign investment
□ Applicable √ Not applicable
No related transaction of foreign investment occurred at period-end
4. Related credits and liabilities
□ Applicable √ Not applicable
No related credits and liabilities occurred in period
5. Other major related transaction
□ Applicable √ Not applicable
No other major related transaction in the Period
XIII. Non-operational fund occupation from controlling shareholders and its related party
□ Applicable √ Not applicable
No non-operational fund occupation from controlling shareholders and its related party in period.
XIV. Significant contract and implementations
1. Trusteeship, contract and leasing
(1) Trusteeship
□ Applicable √ Not applicable
No trusteeship for the Company in reporting period
(2) Contract
□ Applicable √ Not applicable
No contract for the Company in reporting period
深圳市深宝实业股份有限公司 2017 年半年度报告全文
(3) Leasing
□ Applicable √ Not applicable
No leasing in the Period
2. Major Guarantee
√ Applicable □ Not applicable
(1) Guarantee
In 10 thousand Yuan
External Guarantee (not including guarantees to subsidiaries)
Related
Actual date of Complete Guarante
Name of the Announce
Guarantee happening (Date Actual Guarantee Guarantee implemen e for
Company ment
limit of signing guarantee limit type term tation or related
guaranteed disclosure
agreement) not party
date
Guarantee between the Company and subsidiary
Related Complet
Guarante
Name of the Announcem Actual date of Actual e
Guarantee Guarantee Guarantee e for
Company ent happening (Date of guarantee impleme
limit type term related
guaranteed disclosure signing agreement) limit ntation
party
date or not
Shenzhen Shenbao
Joint
Huacheng Science
2016-04-26 3,000 2016-07-26 3,000 liability 1 year N Y
and Technology
guaranty
Co.,Ltd
Total amount of actual
Total amount of approving
occurred guarantee for
guarantee for subsidiaries in 0 3,000
subsidiaries in report
report period (B1)
period (B2)
Total balance of actual
Total amount of approved
guarantee for subsidiaries
guarantee for subsidiaries at the 3,000 3,000
at the end of reporting
end of reporting period (B3)
period (B4)
Guarantee between the subsidiaries
Related
Actual date of Complete Guarante
Name of the Announce
Guarantee happening (Date Actual Guarantee implemen e for
Company ment Guarantee type
limit of signing guarantee limit term tation or related
guaranteed disclosure
agreement) not party
date
Total amount of guarantee of the Company( total of three abovementioned guarantee)
Total amount of approving Total amount of actual occurred
guarantee in report period 0 guarantee in report period 3,000
(A1+B1+C1) (A2+B2+C3)
Total amount of approved Total balance of actual guarantee
guarantee at the end of report 3,000 at the end of report period 3,000
period (A3+B3+C2) (A4+B4+C4)
The proportion of the total amount of actually guarantee in the 3.03%
深圳市深宝实业股份有限公司 2017 年半年度报告全文
net assets of the Company(that is A4+ B4+C4)
Including:
Amount of guarantee for shareholders, actual controller and its
related parties(D)
The debts guarantee amount provided for the guaranteed
parties whose assets-liability ratio exceed 70% directly or
indirectly(E)
Proportion of total amount of guarantee in net assets of the
Company exceed 50%(F)
Total amount of the aforesaid three guarantees(D+E+F)
Explanations on possibly bearing joint and several liquidating
Not applicable
responsibilities for undue guarantees (if applicable)
Explanations on external guarantee against regulated
Not applicable
procedures (if applicable)
Explanation on compound guarantee
N/A
(2) Illegal external guarantee
□ Applicable √ Not applicable
No illegal external guarantee in the period
3. Other material contracts
□ Applicable √ Not applicable
No other material contracts for the Company in reporting period
XV. Social responsibility
1. Execution of social responsibility of targeted poverty alleviation
The Company has no targeted poverty alleviation in the period and no follow-up poverty alleviation plan either
temporary
2. Major environment protection
The listed Company and its subsidiary whether belongs to the key sewage units released from environmental
protection department
□ Y √N
深圳市深宝实业股份有限公司 2017 年半年度报告全文
XVI. Other major events
□Applicable √Not applicable
There are n other major events need to explain in the period
XVII. Major event of the subsidiaries
□ Applicable √ Not applicable
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Section VI. Changes in Shares and Particulars about Shareholders
I. Changes in Shares
1. Changes in shares
In Share
Before the Change Increase/Decrease in the Change (+, -) After the Change
New Capitalization
Bonus
A mount Proportion shares of public Others Subtotal A mount Proportion
shares
issued reserve
I. Restricted shares 26,425,861 5.85% 2,642,584 2,642,584 29,068,445 5.85%
1. State-owned shares 0 0.00% 0 0 0 0.00%
2. State-owned
12,210,713 2.70% 1,221,071 1,221,071 13,431,784 2.70%
corporate shares
3. Other domestic
14,166,661 3.14% 1,416,664 1,416,664 15,583,325 3.14%
shares
Including: Domestic
13,986,211 3.10% 1,398,621 1,398,621 15,384,832 3.10%
legal person’s shares
Domestic
180,450 0.04% 18,043 18,043 198,493 0.04%
nature person’s shares
4. Foreign shares 48,487 0.01% 4,849 4,849 53,336 0.01%
Including: Foreign
0 0.00% 0 0 0 0.00%
corporate shares
overseas
48,487 0.01% 4,849 4,849 53,336 0.01%
nature person’s share
II. Un-restricted
425,194,415 94.15% 42,519,443 42,519,443 467,713,858 94.15%
shares
1. RMB common
378,149,615 83.73% 37,814,963 37,814,963 415,964,578 83.73%
shares
2. Domestically listed
47,044,800 10.42% 4,704,480 4,704,480 51,749,280 10.42%
foreign shares
3. Foreign listed
0 0.00% 0 0 0 0.00%
foreign shares
4. Other 0 0.00% 0 0 0 0.00%
III. Total shares 451,620,276 100.00% 45,162,027 45,162,027 496,782,303 100.00%
Reasons for share changed
√ Applicable □ Not applicable
In June 2017, the Company implemente an equity allocation scheme for year fo 2016, based on total share captial
451,620,276 shares of the Company dated 31 December 2016, distributed 0.50 Yuan (tax included) in cash for
each 10 shares held by shareholders, and 1 share for bonus (tax included), no capitalizing from common reserves.
Found more in the Notice released on juchao website (www.cninfo.com.cn) dated 22 June 2017.
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Approval of share changed
√ Applicable □ Not applicable
The equity allocation scheme for year of 2016 was deliberated and approved by 9th session of 9th BOD held on
21 April 2017 and AGM of 2016 held on 15 May 2017
Ownership transfer of share changed
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to
common shareholders of Company in latest year and period
√ Applicable □ Not applicable
In reporting period, after equity allocate for year of 2016, the basic EPS for 2016 and fist half year of 2017, based
on new share capital 496,782,303 shares, counted as 0.1945 Yuan/Share and -0.0357 Yuan/Share respectively; net
assets value per share counted as 2.08 Yuan/Share and v Yuan/Share respectively
Other information necessary to disclose or need to disclosed under requirement from security regulators
□ Applicable √ Not applicable
2. Changes of restricted shares
√ Applicable □ Not applicable
In Share
Number of Number of Number of Number of
Shareholders shares shares new shares shares Restriction
Released date
’ name restricted at released in restricted in restricted at reasons
Period-begin the Year the Year Period-end
Executives Shares unlock every year takes 25% of the total
Zheng Yuxi 45,000 0 4,500 49,500
locked shares shares holding
Executives Shares unlock every year takes 25% of the total
Lin Hong 28,125 0 2,812 30,937
locked shares shares holding
Executives Shares unlock every year takes 25% of the total
Yan Zesong 48,487 0 4,849 53,336
locked shares shares holding
Executives Shares unlock every year takes 25% of the total
Li Fang 27,113 0 2,711 29,824
locked shares shares holding
Executives Shares unlock every year takes 25% of the total
Li Yiyan 28,125 0 2,812 30,937
locked shares shares holding
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Yao Executives Shares unlock every year takes 25% of the total
30,262 0 3,026 33,288
Xiaopeng locked shares shares holding
Wang Executives Shares unlock every year takes 25% of the total
19,125 0 1,912 21,037
Zhiping locked shares shares holding
Executives Shares unlock every year takes 25% of the total
Fan Zhiqing 2,700 0 270 2,970
locked shares shares holding
Total 228,937 0 22,892 251,829 -- --
II. Securities issuance and listing
□ Applicable √ Not applicable
III. Amount of shareholders and particulars about shares holding
In Share
Total preference shareholders with
Total common stock
voting rights recovered at end of
shareholders in reporting 76,987
reporting period (if applicable) (found
period-end
in note8)
Particulars about shares held above 5% by common shareholders or top ten common shareholders
Number of
Total common Amount of
share
Proportion shares hold at Changes in Amount of restricted un-restricted
Full name of Nature of pledged/frozen
of shares
Shareholders shareholder the end of report report period common shares held common shares
held
State of
period held Amount
share
Shenzhen
Agricultural Other 19.09% 94,832,294 8,621,118 15,384,832 79,447,462
Products Co., Ltd
Shenzhen
State-owned
Investment 16.00% 79,484,302 7,225,845 13,431,784 66,052,518
legal person
Holding Co., Ltd
Domestic
Sun Huiming 0.69% 3,403,262 139,487 0 3,403,262
nature person
Xiamen
International Trust
Co., Ltd. – Xinjin
Other 0.37% 1,831,291 1,831,291 0 1,831,291
No.7 Security
Investment Trust
Fund Plan
Domestic
Hu Xiangzhu 0.35% 1,760,000 1,509,850 0 1,760,000
nature person
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Central Huijin
Asset State-owned
0.30% 1,472,625 133,875 0 1,472,625
Management Co., legal person
Ltd.
Domestic
Li Qian 0.29% 1,432,378 80,076 0 1,432,378
nature person
Domestic
Zhang Yue 0.28% 1,390,807 1,390,807 0 1,390,807
nature person
Domestic
Xu Yanhui 0.22% 1,072,500 97,500 0 1,072,500
nature person
Domestic
Ye Xiuxia 0.20% 1,000,230 140,230 0 1,000,230
nature person
Strategy investors or general
corporation comes top 10
common shareholders due to N/A
rights issue (if applicable) (see
note 3)
Shenzhen SASAC directly holds 28.76% equity interests of Agricultural Products, indirectly holds
Explanation on associated 5.24% equity interests of Agricultural Products and directly holds 100% equity interests of Shenzhen
relationship among the aforesaid Investment Holding; the Company was not aware of any related relationship between other
shareholders shareholders above, and whether they belonged to parties acting in concert as defined by the
Acquisition Management Method of Listed Company.
Particular about top ten common shareholders with un-restrict shares held
Type of shares
Shareholders’ name Amount of un-restrict common shares held at Period-end
Type Amount
Shenzhen Agricultural Products RMB common
79,447,462 79,447,462
Co., Ltd shares
Shenzhen Investment Holding Co., RMB common
66,052,518 66,052,518
Ltd shares
Domestically listed
Sun Huiming 3,403,262 3,403,262
foreign shares
Xiamen International Trust Co.,
RMB common
Ltd. – Xinjin No.7 Security 1,831,291 1,831,291
shares
Investment Trust Fund Plan
RMB common
Hu Xiangzhu 1,760,000 1,760,000
shares
Central Huijin Asset Management RMB common
1,472,625 1,472,625
Co., Ltd. shares
Li Qian 1,432,378 RMB common 1,432,378
深圳市深宝实业股份有限公司 2017 年半年度报告全文
shares
RMB common
Zhang Yue 1,390,807 1,390,807
shares
RMB common
Xu Yanhui 1,072,500 1,072,500
shares
RMB common
Ye Xiuxia 1,000,230 1,000,230
shares
Expiation on associated relationship
Shenzhen SASAC directly holds 28.76% equity interests of Agricultural Products, indirectly holds
or consistent actors within the top
5.24% equity interests of Agricultural Products and directly holds 100% equity interests of
10 un-restrict shareholders and
Shenzhen Investment Holding; the Company was not aware of any related relationship between
between top 10 un-restrict
other shareholders above, and whether they belonged to parties acting in concert as defined by the
shareholders and top 10
Acquisition Management Method of Listed Company.
shareholders
Explanation on top 10 shareholders
involving margin business (if N/A
applicable) (see note 4)
Whether top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held have a buy-back
agreement dealing in reporting period
□ Yes √ No
The top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held of the Company have no
buy-back agreement dealing in reporting period.
IV. Change of controlling shareholder or actual controller
Changes of controlling shareholders in reporting period
□ Applicable √ Not applicable
The Company had no changes of controlling shareholders in reporting period
Changes of actual controller in reporting period
□ Applicable √ Not applicable
The Company had no changes of actual controller in reporting period
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Section VII. Preferred Stock
□ Applicable √ Not applicable
The Company had no preferred stock in the Period.
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Section VIII. Particulars about Directors, Supervisor and Senior
Executives
I. Changes of shares held by directors, supervisors and senior executives
√Applicable □ Not applicable
Increasing Number of Number of Number of
Decreasing
Shares held shares restricted restricted restricted
shares held
Post-holding at held in Shares held at shares granted shares shares
Title in this
Name status period-begin this period-end(Share) at granted in granted at
period
(Share) period period-begin this period period-end
(Share)
(Share) (share) (share) (share)
Party
Zheng Currently in
Secretary, 60,000 6,000 0 66,000 0 0
Yuxi office
Chairman
Fan Independent Currently in
3,600 360 0 3,960 0 0
Zhiqing director office
Yan Currently in
Director, GM 64,649 6,465 0 71,114 0 0
Zesong office
Director、
Deputy GM, Currently in
Li Yiyan 37,500 3,750 0 41,250 0 0
Secretary of office
the Board
Chairman of
Currently in
Lin Hong supervisory 37,500 3,750 0 41,250 0 0
office
committee
Deputy party
secretary, Currently in
Li Fang 36,151 3,615 0 39,766 0 0
SCID, Deputy office
GM
Yao Currently in
Deputy GM 40,350 4,035 0 44,385 0 0
Xiaopeng office
Wang Currently in
CFO 25,500 2,550 0 28,050 0 0
Zhiping office
Total -- -- 305,250 30,525 0 335,775 0 0
*Shares held by directors, supervisors and senior executives changed mainly due to the implementation of equity
allocation plan for year of 2016 in this period
深圳市深宝实业股份有限公司 2017 年半年度报告全文
II. Changes of directors, supervisors and senior executives
□ Applicable √ Not applicable
Directors, supervisors and senior executives of the Company has no changed in the period, found more in Annual
Report 2016
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Section IX Corporate Bonds
Whether the Company has a corporation bonds that issuance publicly and listed on stock exchange and without
due on the date when semi-annual report approved for released or fail to cash in full on due
□Y √N
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Section X. Financial Report
I. Audit reports
Whether the semi-annual report was audited or not
□ Yes √ No
The financial report of this semi-annual report was unaudited
II. Financial statements
Units in Notes of Financial Statements is RMB
1. Consolidated Balance Sheet
Prepared by Shenzhen Shenbao Industrial Co., Ltd.
2017-06-30
In RMB
Items Ending balance Opening balance
Current assets:
Monetary fund 205,487,872.79 358,564,242.83
Settlement provisions
Capital lent
Financial assets measured by fair
value and with variation reckoned into 2,260,176.36 3,250,938.60
current gains/losses
Derivative financial assets
Notes receivable
Account receivable 72,042,632.44 62,582,867.63
Account paid in advance 14,278,408.17 6,321,827.64
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance
receivable
Interest receivable
Dividends receivable
Other receivables 26,491,781.90 22,643,449.94
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Purchase restituted finance asset
Inventory 149,475,307.29 140,951,059.39
Divided into assets held for sale
Non-current assets due within one
year
Other current assets 91,856,403.28 11,299,954.58
Total current assets 561,892,582.23 605,614,340.61
Non-current assets:
Loans and payments on behalf
Available-for-sale financial assets 57,500.00 57,500.00
Held-to-maturity investments
Long-term receivables
Long-term equity investment 5,707,237.59 5,866,481.63
Investment property 18,637,070.20 18,872,865.36
Fix assets 323,793,293.30 333,013,767.86
Construction in process 54,574.34 54,574.34
Project materials
Disposal of fixed assets
Productive biological assets 421,617.46 426,463.64
Oil and natural gas assets
Intangible assets 192,152,459.54 195,678,353.58
Research and development costs 1,162,154.46
Goodwill 673,940.32 673,940.32
Long-term deferred expenses 11,972,290.55 13,312,189.59
Deferred income tax assets 5,024,439.25 4,973,248.37
Other non-current assets
Total non-current assets 559,656,577.01 572,929,384.69
Total assets 1,121,549,159.24 1,178,543,725.30
Current liabilities:
Short-term loans 10,000,000.00 5,000,000.00
Loan from central bank
Absorbing deposit and interbank
deposit
Capital borrowed
Financial liability measured by fair
深圳市深宝实业股份有限公司 2017 年半年度报告全文
value and with variation reckoned into
current gains/losses
Derivative financial liability
Notes payable
Accounts payable 22,645,209.79 15,782,288.29
Accounts received in advance 3,722,669.37 2,379,824.13
Selling financial asset of
repurchase
Commission charge and
commission payable
Wage payable 9,383,764.84 16,279,706.84
Taxes payable 5,242,645.48 26,345,138.53
Interest payable
Dividend payable 2,909,182.74 2,909,182.74
Other accounts payable 47,944,982.29 46,119,690.25
Reinsurance payables
Insurance contract reserve
Security trading of agency
Security sales of agency
Divided into liability held for sale
Non-current liabilities due within
one year
Other current liabilities
Total current liabilities 101,848,454.51 114,815,830.78
Non-current liabilities:
Long-term loans
Bonds payable
Including: preferred stock
Perpetual capital
securities
Long-term account payable
Long-term wages payable
Special accounts payable
Accrual liabilities
Deferred income 11,752,035.29 12,335,552.15
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Deferred income tax liabilities 1,368,153.83 1,653,779.51
Other non-current liabilities
Total non-current liabilities 13,120,189.12 13,989,331.66
Total liabilities 114,968,643.63 128,805,162.44
Owners’ equity:
Share capital 496,782,303.00 451,620,276.00
Other equity instrument
Including: preferred stock
Perpetual capital
securities
Capital reserve 367,172,017.79 367,172,017.79
Less: Inventory shares
Other comprehensive income
Reasonable reserve
Surplus reserve 54,736,482.14 54,736,482.14
Provision of general risk
Retained profit 72,736,795.31 158,239,612.94
Total owners’ equity attributable to
991,427,598.24 1,031,768,388.87
parent company
Minority interests 15,152,917.37 17,970,173.99
Total owners’ equity 1,006,580,515.61 1,049,738,562.86
Total liabilities and owner’s equity 1,121,549,159.24 1,178,543,725.30
Legal Representative: Zheng Yuxi
Person in charge of accounting works: Wang Zhiping
Person in charge of accounting institute: Xu Qiming
2. Balance Sheet of Parent Company
Prepared by Shenzhen Shenbao Industrial Co., Ltd.
2017-06-30
In RMB
Items Ending balance Opening balance
Current assets:
Monetary fund 194,464,298.57 305,477,853.97
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Financial assets measured by fair
value and with variation reckoned into 2,260,176.36 3,250,938.60
current gains/losses
Derivative financial assets
Notes receivable
Account receivable 26,791,498.16 40,123,423.12
Account paid in advance
Interest receivable
Dividends receivable
Other receivables 224,226,099.33 212,821,890.56
Inventory 7,371,538.85 7,784,904.36
Divided into assets held for sale
Non-current assets due within one
year
Other current assets 90,001,308.37 9,895,236.82
Total current assets 545,114,919.64 579,354,247.43
Non-current assets:
Available-for-sale financial assets
Held-to-maturity investments
Long-term receivables
Long-term equity investment 921,964,954.57 916,622,212.24
Investment property 18,637,070.20 18,872,865.36
Fix assets 33,117,013.12 33,686,897.31
Construction in process
Project materials
Disposal of fixed assets
Productive biological assets 421,617.46 426,463.64
Oil and natural gas assets
Intangible assets 7,454,875.72 7,742,703.23
Research and development costs
Goodwill
Long-term deferred expenses 730,194.84 837,768.34
Deferred income tax assets 3,339,641.09 3,288,450.21
Other non-current assets
Total non-current assets 985,665,367.00 981,477,360.33
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Total assets 1,530,780,286.64 1,560,831,607.76
Current liabilities:
Short-term loans 10,000,000.00 5,000,000.00
Financial liability measured by fair
value and with variation reckoned into
current gains/losses
Derivative financial liability
Notes payable
Accounts payable 36,651,251.29 47,165,259.53
Accounts received in advance 31,539.00 495,004.08
Wage payable 3,768,185.23 9,641,601.54
Taxes payable 2,712,081.31 15,711,497.39
Interest payable
Dividend payable 2,909,182.74 2,909,182.74
Other accounts payable 330,829,346.65 306,770,480.94
Divided into liability held for sale
Non-current liabilities due within
one year
Other current liabilities
Total current liabilities 386,901,586.22 387,693,026.22
Non-current liabilities:
Long-term loans
Bonds payable
Including: preferred stock
Perpetual capital
securities
Long-term account payable
Long-term wages payable
Special accounts payable
Accrual liabilities
Deferred income 47,793.88 48,348.52
Deferred income tax liabilities 294,777.57 542,468.13
Other non-current liabilities
Total non-current liabilities 342,571.45 590,816.65
Total liabilities 387,244,157.67 388,283,842.87
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Owners’ equity:
Share capital 496,782,303.00 451,620,276.00
Other equity instrument
Including: preferred stock
Perpetual capital
securities
Capital reserve 382,444,482.45 382,444,482.45
Less: Inventory shares
Other comprehensive income
Reasonable reserve
Surplus reserve 54,736,482.14 54,736,482.14
Retained profit 209,572,861.38 283,746,524.30
Total owners’ equity 1,143,536,128.97 1,172,547,764.89
Total liabilities and owner’s equity 1,530,780,286.64 1,560,831,607.76
Legal Representative: Zheng Yuxi
Person in charge of accounting works: Wang Zhiping
Person in charge of accounting institute: Xu Qiming
3. Consolidated Profit Statement
Prepared by Shenzhen Shenbao Industrial Co., Ltd.
Semi-annual 2017
In RMB
Item Amount in this period Amount in last period
I. Total operating income 138,158,382.95 149,155,529.71
Including: Operating income 138,158,382.95 149,155,529.71
Interest income
Insurance gained
Commission charge and
commission income
II. Total operating cost 159,770,044.15 173,217,380.85
Including: Operating cost 104,400,839.32 116,893,235.04
Interest expense
Commission charge and
深圳市深宝实业股份有限公司 2017 年半年度报告全文
commission expense
Cash surrender value
Net amount of expense of
compensation
Net amount of withdrawal of
insurance contract reserve
Bonus expense of guarantee
slip
Reinsurance expense
Operating tax and extras 2,454,733.49 945,881.40
Sales expenses 21,174,407.31 20,601,283.18
Administration expenses 33,082,783.76 34,369,699.17
Financial expenses -1,533,397.02 213,297.58
Losses of devaluation of
190,677.29 193,984.48
asset
Add: Changing income of fair
-990,762.24 -848,856.19
value(Loss is listed with “-”)
Investment income (Loss is
1,093,417.06 -898,654.15
listed with “-”)
Including: Investment income
-159,244.04 -2,144,995.21
on affiliated company and joint venture
Exchange income (Loss is
listed with “-”)
Other income
III. Operating profit (Loss is listed with
-21,509,006.38 -25,809,361.48
“-”)
Add: Non-operating income 1,024,229.54 6,218,417.29
Including: Disposal gains of
12,532.09 1,609.60
non-current asset
Less: Non-operating expense 55,670.03 371,090.74
Including: Disposal loss of
33,547.35 8,020.41
non-current asset
IV. Total Profit (Loss is listed with “-”) -20,540,446.87 -19,962,034.93
Less: Income tax expense 36,586.58 -501,745.09
V. Net profit (Net loss is listed with “-”) -20,577,033.45 -19,460,289.84
Net profit attributable to owner’s of
-17,759,776.83 -15,099,180.63
parent company
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Minority shareholders’ gains and
-2,817,256.62 -4,361,109.21
losses
VI. Net after-tax of other comprehensive
income
Net after-tax of other comprehensive
income attributable to owners of parent
company
(I) Other comprehensive income
items which will not be reclassified
subsequently to profit of loss
1. Changes as a result of
re-measurement of net defined benefit
plan liability or asset
2. Share of the other
comprehensive income of the investee
accounted for using equity method which
will not be reclassified subsequently to
profit and loss
(II) Other comprehensive income
items which will be reclassified
subsequently to profit or loss
1. Share of the other
comprehensive income of the investee
accounted for using equity method which
will be reclassified subsequently to profit
or loss
2. Gains or losses arising
from changes in fair value of
available-for-sale financial assets
3. Gains or losses arising
from reclassification of held-to-maturity
investment as available-for-sale financial
assets
4. The effect hedging portion
of gains or losses arising from cash flow
hedging instruments
5. Translation differences
arising on translation of foreign currency
financial statements
6.Other
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Net after-tax of other comprehensive
income attributable to minority
shareholders
VII. Total comprehensive income -20,577,033.45 -19,460,289.84
Total comprehensive income
-17,759,776.83 -15,099,180.63
attributable to owners of parent Company
Total comprehensive income
-2,817,256.62 -4,361,109.21
attributable to minority shareholders
VIII. Earnings per share:
(i) Basic earnings per share -0.0357 -0.0304
(ii) Diluted earnings per share -0.0357 -0.0304
Enterprise combine under the same control in the Period, the combined party realized net profit of 0 Yuan before combination, and
realized 0 Yuan at last period for combined party.
Legal Representative: Zheng Yuxi
Person in charge of accounting works: Wang Zhiping
Person in charge of accounting institute: Xu Qiming
4. Profit Statement of Parent Company
Prepared by Shenzhen Shenbao Industrial Co., Ltd.
Semi-annual 2017
In RMB
Item Amount in this period Amount in last period
I. Operating income 49,271,727.89 65,133,125.18
Less: Operating cost 45,987,989.13 59,896,259.51
Operating tax and extras 37,532.38 139,061.20
Sales expenses 1,562,377.52 1,653,570.46
Administration expenses 9,942,760.18 11,125,199.86
Financial expenses -1,563,751.20 214,502.26
Losses of devaluation of asset 194,763.50 199,473.50
Add: Changing income of fair
-990,762.24 -848,856.19
value(Loss is listed with “-”)
Investment income (Loss is
1,095,403.43 100,367.90
listed with “-”)
Including: Investment income -157,257.67 -564,801.46
深圳市深宝实业股份有限公司 2017 年半年度报告全文
on affiliated company and joint venture
II. Operating profit (Loss is listed
with “-”)
Add: Non-operating income -6,785,302.43 -8,843,429.90
Including: Disposal gains of
66,060.72 4,103,837.74
non-current asset
Less: Non-operating expense 12,532.09
Including: Disposal loss of
10,261.85
non-current asset
Other income 10,261.85
III. Total Profit (Loss is listed with
-6,729,503.56 -4,739,592.16
“-”)
Less: Income tax expense -298,881.44 -715,569.21
IV. Net profit (Net loss is listed with
-6,430,622.12 -4,024,022.95
“-”)
V. Net after-tax of other comprehensive
income
(I) Other comprehensive income
items which will not be reclassified
subsequently to profit of loss
1. Changes as a result of
re-measurement of net defined benefit
plan liability or asset
2. Share of the other
comprehensive income of the investee
accounted for using equity method
which will not be reclassified
subsequently to profit and loss
(II) Other comprehensive income
items which will be reclassified
subsequently to profit or loss
1. Share of the other
comprehensive income of the investee
accounted for using equity method
which will be reclassified subsequently
to profit or loss
2. Gains or losses arising
from changes in fair value of
available-for-sale financial assets
深圳市深宝实业股份有限公司 2017 年半年度报告全文
3. Gains or losses arising
from reclassification of held-to-maturity
investment as available-for-sale
financial assets
4. The effect hedging
portion of gains or losses arising from
cash flow hedging instruments
5. Translation differences
arising on translation of foreign
currency financial statements
6.Other
VI. Total comprehensive income -6,430,622.12 -4,024,022.95
VII. Earnings per share:
(i) Basic earnings per share
(ii) Diluted earnings per share
Legal Representative: Zheng Yuxi
Person in charge of accounting works: Wang Zhiping
Person in charge of accounting institute: Xu Qiming
5. Consolidated Cash Flow Statement
Prepared by Shenzhen Shenbao Industrial Co., Ltd.
Semi-annual 2017
In RMB
Item Amount in this period Amount in last period
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor 146,109,487.53 180,368,265.08
services
Net increase of customer deposit
and interbank deposit
Net increase of loan from central
bank
Net increase of capital borrowed
from other financial institution
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Cash received from original
insurance contract fee
Net cash received from reinsurance
business
Net increase of insured savings
and investment
Net increase of amount from
disposal financial assets that measured
by fair value and with variation
reckoned into current gains/losses
Cash received from interest,
commission charge and commission
Net increase of capital borrowed
Net increase of returned business
capital
Write-back of tax received 582,422.91 182,087.90
Other cash received concerning
6,348,302.37 31,164,007.17
operating activities
Subtotal of cash inflow arising from
153,040,212.81 211,714,360.15
operating activities
Cash paid for purchasing
commodities and receiving labor 110,998,020.02 105,153,288.36
service
Net increase of customer loans and
advances
Net increase of deposits in central
bank and interbank
Cash paid for original insurance
contract compensation
Cash paid for interest, commission
charge and commission
Cash paid for bonus of guarantee
slip
Cash paid to/for staff and workers 38,799,120.95 38,530,123.70
Taxes paid 33,095,652.63 13,663,894.12
Other cash paid concerning
20,580,067.36 22,769,106.61
operating activities
Subtotal of cash outflow arising from 203,472,860.96 180,116,412.79
深圳市深宝实业股份有限公司 2017 年半年度报告全文
operating activities
Net cash flows arising from operating
-50,432,648.15 31,597,947.36
activities
II. Cash flows arising from investing
activities:
Cash received from recovering
189,350,000.00 113,825,000.00
investment
Cash received from investment
1,252,661.10
income
Net cash received from disposal of
fixed, intangible and other long-term 31,780.00 13,245.00
assets
Net cash received from disposal
-919,992.72
of subsidiaries and other units
Other cash received concerning
665,169.36
investing activities
Subtotal of cash inflow from investing
190,634,441.10 113,583,421.64
activities
Cash paid for purchasing fixed,
5,306,174.76 13,638,864.72
intangible and other long-term assets
Cash paid for investment 270,000,000.00 134,648,200.00
Net increase of mortgaged loans
Net cash received from
-1,154,212.72
subsidiaries and other units
Other cash paid concerning
investing activities
Subtotal of cash outflow from investing
275,306,174.76 147,132,852.00
activities
Net cash flows arising from investing
-84,671,733.66 -33,549,430.36
activities
III. Cash flows arising from financing
activities
Cash received from absorbing
investment
Including: Cash received from
absorbing minority shareholders’
investment by subsidiaries
Cash received from loans 10,000,000.00 50,000,000.00
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Cash received from issuing bonds
Other cash received concerning
79.19
financing activities
Subtotal of cash inflow from financing
10,000,000.00 50,000,079.19
activities
Cash paid for settling debts 5,000,000.00 50,000,000.00
Cash paid for dividend and profit
22,904,646.76 790,854.16
distributing or interest paying
Including: Dividend and profit of
minority shareholder paid by
subsidiaries
Other cash paid concerning
financing activities
Subtotal of cash outflow from financing
27,904,646.76 50,790,854.16
activities
Net cash flows arising from financing
-17,904,646.76 -790,774.97
activities
IV. Influence on cash and cash
equivalents due to fluctuation in -67,341.47 127,423.28
exchange rate
V. Net increase of cash and cash
-153,076,370.04 -2,614,834.69
equivalents
Add: Balance of cash and cash
358,564,242.83 147,513,887.15
equivalents at the period -begin
VI. Balance of cash and cash
205,487,872.79 144,899,052.46
equivalents at the period -end
Legal Representative: Zheng Yuxi
Person in charge of accounting works: Wang Zhiping
Person in charge of accounting institute: Xu Qiming
6. Cash Flow Statement of Parent Company
Prepared by Shenzhen Shenbao Industrial Co., Ltd.
Semi-annual 2017
In RMB
Item Amount in this period Amount in last period
深圳市深宝实业股份有限公司 2017 年半年度报告全文
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor 70,267,796.87 82,209,684.08
services
Write-back of tax received 433,663.93 27,140.22
Other cash received concerning
34,066,372.91 42,175,322.72
operating activities
Subtotal of cash inflow arising from
104,767,833.71 124,412,147.02
operating activities
Cash paid for purchasing
commodities and receiving labor 63,220,288.40 57,018,521.50
service
Cash paid to/for staff and workers 13,078,753.60 10,874,944.58
Taxes paid 15,149,260.25 4,566,555.47
Other cash paid concerning
21,420,055.12 11,571,284.84
operating activities
Subtotal of cash outflow arising from
112,868,357.37 84,031,306.39
operating activities
Net cash flows arising from operating
-8,100,523.66 40,380,840.63
activities
II. Cash flows arising from investing
activities:
Cash received from recovering
189,350,000.00 110,000,000.00
investment
Cash received from investment
1,252,661.10
income
Net cash received from disposal of
fixed, intangible and other long-term 31,000.00
assets
Net cash received from disposal
of subsidiaries and other units
Other cash received concerning
665,169.36
investing activities
Subtotal of cash inflow from investing
190,633,661.10 110,665,169.36
activities
Cash paid for purchasing fixed,
133,049.80 1,546,631.28
intangible and other long-term assets
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Cash paid for investment 275,500,000.00 137,000,000.00
Net cash received from
subsidiaries and other units
Other cash paid concerning
investing activities
Subtotal of cash outflow from investing
275,633,049.80 138,546,631.28
activities
Net cash flows arising from investing
-84,999,388.70 -27,881,461.92
activities
III. Cash flows arising from financing
activities
Cash received from absorbing
investment
Cash received from loans 10,000,000.00 50,000,000.00
Cash received from issuing bonds
Other cash received concerning
79.19
financing activities
Subtotal of cash inflow from financing
10,000,000.00 50,000,079.19
activities
Cash paid for settling debts 5,000,000.00 50,000,000.00
Cash paid for dividend and profit
22,904,646.76 790,854.16
distributing or interest paying
Other cash paid concerning
financing activities
Subtotal of cash outflow from financing
27,904,646.76 50,790,854.16
activities
Net cash flows arising from financing
-17,904,646.76 -790,774.97
activities
IV. Influence on cash and cash
equivalents due to fluctuation in -8,996.28 2,590.75
exchange rate
V. Net increase of cash and cash
-111,013,555.40 11,711,194.49
equivalents
Add: Balance of cash and cash
305,477,853.97 116,074,656.42
equivalents at the period -begin
VI. Balance of cash and cash
194,464,298.57 127,785,850.91
equivalents at the period -end
Legal Representative: Zheng Yuxi
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Person in charge of accounting works: Wang Zhiping
Person in charge of accounting institute: Xu Qiming
深圳市深宝实业股份有限公司 2017 年半年度报告全文
7. Statement of Changes in Owners’ Equity (Consolidated)
Prepared by Shenzhen Shenbao Industrial Co., Ltd.
Semi-annual 2017
In RMB
Amount in this period
Owners’ equity attributable to parent company
Other equity instrument Provision
Items Less: Other Minority Total owners’
Perpetual Reasonable Surplus of
Share capital Preferred Capital reserve Inventory comprehensive Retained profit interests equity
capital Other reserve reserve general
stock shares income
securities risk
I. Balance at
the end of the 451,620,276.00 367,172,017.79 54,736,482.14 158,239,612.94 17,970,173.99 1,049,738,562.86
last year
Add:
Changes of
accounting
policy
Error
correction of
the last period
Enterprise
combine under
the same
control
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Other
II. Balance at
the beginning 451,620,276.00 367,172,017.79 54,736,482.14 158,239,612.94 17,970,173.99 1,049,738,562.86
of this year
III. Increase/
Decrease in
this year 45,162,027.00 -85,502,817.63 -2,817,256.62 -43,158,047.25
(Decrease is
listed with “-”)
(i) Total
comprehensive -17,759,776.83 -2,817,256.62 -20,577,033.45
income
(ii) Owners’
devoted and
decreased
capital
1.Common
shares
invested by
shareholders
2. Capital
invested by
holders of
other equity
instruments
3. Amount
reckoned into
深圳市深宝实业股份有限公司 2017 年半年度报告全文
owners equity
with
share-based
payment
4.Other
(III) Profit
45,162,027.00 -67,743,040.80 -22,581,013.80
distribution
1. Withdrawal
of surplus
reserves
2. Withdrawal
of general risk
provisions
3. Distribution
for owners (or 45,162,027.00 -67,743,040.80 -22,581,013.80
shareholders)
4.Other
(IV) Carrying
forward
internal
owners’ equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
深圳市深宝实业股份有限公司 2017 年半年度报告全文
conversed to
capital (share
capital)
3. Remedying
loss with
surplus reserve
4.Other
(V)
Reasonable
reserve
1. Withdrawal
in the report
period
2. Usage in the
report period
(VI)Others
IV. Balance at
the end of the 496,782,303.00 367,172,017.79 54,736,482.14 72,736,795.31 15,152,917.37 1,006,580,515.61
report period
Legal Representative: Zheng Yuxi
Person in charge of accounting works: Wang Zhiping
Person in charge of accounting institute: Xu Qiming
In RMB
Items Amount in last period
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Owners’ equity attributable to parent company
Other equity instrument Provision
Less: Other Minority Total owners’
Perpetual Reasonable Surplus of
Share capital Preferred Capital reserve Inventory comprehensive Retained profit interests equity
capital Other reserve reserve general
stock shares income
securities risk
I. Balance at
the end of the 301,080,184.00 518,186,660.59 49,670,863.23 66,684,572.93 21,515,728.34 957,138,009.09
last year
Add:
Changes of
accounting
policy
Error
correction of
the last period
Enterprise
combine under
the same
control
Other
II. Balance at
the beginning 301,080,184.00 518,186,660.59 49,670,863.23 66,684,572.93 21,515,728.34 957,138,009.09
of this year
III. Increase/ 150,540,092.00 -151,014,642.80 5,065,618.91 91,555,040.01 -3,545,554.35 92,600,553.77
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Decrease in
this year
(Decrease is
listed with “-”)
(i) Total
comprehensive 96,620,658.92 -6,475,132.84 90,145,526.08
income
(ii) Owners’
devoted and
2,929,578.49 2,929,578.49
decreased
capital
1.Common
shares
11,250,000.00 11,250,000.00
invested by
shareholders
2. Capital
invested by
holders of
other equity
instruments
3. Amount
reckoned into
owners equity
with
share-based
payment
4.Other -8,320,421.51 -8,320,421.51
(III) Profit 5,065,618.91 -5,065,618.91
深圳市深宝实业股份有限公司 2017 年半年度报告全文
distribution
1. Withdrawal
of surplus 5,065,618.91 -5,065,618.91
reserves
2. Withdrawal
of general risk
provisions
3. Distribution
for owners (or
shareholders)
4.Other
(IV) Carrying
forward
150,540,092.00 -151,014,642.80 -474,550.80
internal
owners’ equity
1. Capital
reserves
conversed to 150,540,092.00 -150,540,092.00
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with
surplus reserve
深圳市深宝实业股份有限公司 2017 年半年度报告全文
4.Other -474,550.80 -474,550.80
(V)
Reasonable
reserve
1. Withdrawal
in the report
period
2. Usage in the
report period
(VI)Others
IV. Balance at
the end of the 451,620,276.00 367,172,017.79 54,736,482.14 158,239,612.94 17,970,173.99 1,049,738,562.86
report period
Legal Representative: Zheng Yuxi
Person in charge of accounting works: Wang Zhiping
Person in charge of accounting institute: Xu Qiming
8. Statement of Changes in Owners’ Equity (Parent Company)
Prepared by Shenzhen Shenbao Industrial Co., Ltd
Semi-annual 2017
In RMB
Amount in this period
Items
Share capital Other equity instrument Capital reserve Less: Other Reasonable Surplus reserve Retained profit Total owners’
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Perpetual Inventory comprehensive reserve equity
Preferred
capital Other shares income
stock
securities
I. Balance at the end of
451,620,276.00 382,444,482.45 54,736,482.14 283,746,524.30 1,172,547,764.89
the last year
Add: Changes of
accounting policy
Error
correction of the last
period
Other
II. Balance at the
451,620,276.00 382,444,482.45 54,736,482.14 283,746,524.30 1,172,547,764.89
beginning of this year
III. Increase/ Decrease in
this year (Decrease is 45,162,027.00 -74,173,662.92 -29,011,635.92
listed with “-”)
(i) Total comprehensive
-6,430,622.12 -6,430,622.12
income
(ii) Owners’ devoted and
decreased capital
1.Common shares
invested by shareholders
2. Capital invested by
holders of other equity
instruments
3. Amount reckoned into
owners equity with
深圳市深宝实业股份有限公司 2017 年半年度报告全文
share-based payment
4.Other
(III) Profit distribution 45,162,027.00 -67,743,040.80 -22,581,013.80
1. Withdrawal of surplus
reserves
2. Distribution for
45,162,027.00 -67,743,040.80 -22,581,013.80
owners (or shareholders)
3．Other
(IV) Carrying forward
internal owners’ equity
1. Capital reserves
conversed to capital
(share capital)
2. Surplus reserves
conversed to capital
(share capital)
3. Remedying loss with
surplus reserve
4.Other
(V) Reasonable reserve
1. Withdrawal in the
report period
2. Usage in the report
period
(VI)Others
IV. Balance at the end of 496,782,303.00 382,444,482.45 54,736,482.14 209,572,861.38 1,143,536,128.97
深圳市深宝实业股份有限公司 2017 年半年度报告全文
the report period
Legal Representative: Zheng Yuxi
Person in charge of accounting works: Wang Zhiping
Person in charge of accounting institute: Xu Qiming
In RMB
Amount in last period
Other equity instrument
Less: Other
Items Perpetual Reasonable Total owners’
Share capital Preferred Capital reserve Inventory comprehensive Surplus reserve Retained profit
capital Other reserve equity
stock shares income
securities
I. Balance at the end of
301,080,184.00 532,984,495.26 49,670,863.23 238,155,954.14 1,121,891,496.63
the last year
Add: Changes of
accounting policy
Error
correction of the last
period
Other
II. Balance at the
301,080,184.00 532,984,495.26 49,670,863.23 238,155,954.14 1,121,891,496.63
beginning of this year
III. Increase/ Decrease in
this year (Decrease is 150,540,092.00 -150,540,012.81 5,065,618.91 45,590,570.16 50,656,268.26
listed with “-”)
(i) Total comprehensive 50,656,189.07 50,656,189.07
深圳市深宝实业股份有限公司 2017 年半年度报告全文
income
(ii) Owners’ devoted and
decreased capital
1.Common shares
invested by shareholders
2. Capital invested by
holders of other equity
instruments
3. Amount reckoned into
owners equity with
share-based payment
4.Other
(III) Profit distribution 5,065,618.91 -5,065,618.91
1. Withdrawal of surplus
5,065,618.91 -5,065,618.91
reserves
2. Distribution for
owners (or shareholders)
3．Other
(IV) Carrying forward
150,540,092.00 -150,540,012.81 79.19
internal owners’ equity
1. Capital reserves
conversed to capital 150,540,092.00 -150,540,092.00
(share capital)
2. Surplus reserves
conversed to capital
(share capital)
深圳市深宝实业股份有限公司 2017 年半年度报告全文
3. Remedying loss with
surplus reserve
4.Other 79.19 79.19
(V) Reasonable reserve
1. Withdrawal in the
report period
2. Usage in the report
period
(VI)Others
IV. Balance at the end of
451,620,276.00 382,444,482.45 54,736,482.14 283,746,524.30 1,172,547,764.89
the report period
Legal Representative: Zheng Yuxi
Person in charge of accounting works: Wang Zhiping
Person in charge of accounting institute: Xu Qiming
深圳市深宝实业股份有限公司 2017 年半年度报告全文
III. Basic situation of Company
1. Company registration, organization form and headquarters address
Shenzhen Shenbao Industrial Co., Ltd. (the “Company” or “Company” for short), formerly named Shenzhen
Shenbao Canned Food Company, obtained approval (Document (1991) No.978) from Shenzhen Municipal
People’s Government to change to the present name as on 1 August 1991.Then with the approval (Document
(1991)No.126) from People’s Bank of China, the Company began to list on Shenzhen Stock Exchange.
The Company initially issued 107,312,935 shares in the stock exchange. In 1992, one bonus share was dispatched
for each 10 shares held by its shareholders, thus totally 10,731,290 shares were increased. In 1993, one bonus
share and one allotted share were dispatched for each 10 shares held by its shareholders, thus totally 20,878,845
shares were increased. Subsequently, one bonus share was dispatched for each 10 shares held by shareholders
upon the basis of total share capital as at the end of 1996, and capitalizing of capital reserves was carried out at
one to ten basis, thus totally 27,784,614 shares were increased. In 2001, based on the total share capital as at the
end of 1999, three shares were allotted for each 10 shares held by shareholders, and totally 15,215,404 shares
were allotted. The registered capital of the Company amounts to RMB181, 923,088.
On 22 June 2011, the Company privately offering 68,977,066 shares of RMB ordinary share (A share) to target
investors with issuing price of RMB 8.70 each while book value of RMB 1.00. Total monetary capital RMB
600,100,474.20 was raised. Change procedures of industrial and commerce has completed on 12 July 2011.
Register capital of the Company changed as RMB 250,900,154.00.
On 9 April 2014, the equity allocation plan was deliberated and approved by Annual General Meeting of 2013.
Based on 250,900,154 shares dated 31st December 2013, increase 2 shares by each 10 shares transferring to all
shareholders. Share capital increased to 301,080,184 shares after transferring.
On 17 May 2016, the equity allocation plan was deliberated and approved by Annual General Meeting of 2015.
Based on 301,080,184 shares dated 31st December 2015, increase 5 shares by each 10 shares transferring to all
shareholders. Share capital increased to 451,620,276 shares after transferring.
On 15 May 2017, the equity allocation plan was deliberated and approved by Annual General Meeting of 2016.
Based on 451,620,276 shares dated 31st December 2016, distributed one bonus share for each 10-share held by the
whole shareholders. Shares capital increased to 496,782,303 shares after bonus stock distributed.
Register address of the Company: 8/F, B Section, 4th Tower, Software Industrial Base, South Technology Park,
Xuefu Street, Yuehai Avenue, Nanshan District, Shenzhen, P.R. China; license No.: 91440300192180754J.
2. Business nature and major operation activities of the Company
深圳市深宝实业股份有限公司 2017 年半年度报告全文
The Company mainly engaged in the products of tea series of “Jindiao” brand including instant tea power and tea
concentrate; “Ju Fang Yong”; “Gutan” and serials of “Fu Hai Tang”; seasoning series under “Sanjing” brand
include oyster sauce, olive vegetable, and soy; beverages series under “Shenbao” brand include daisy tea, lemon
tea, and wax gourd tea.
General business scope including: production of tea, tea products, extract of tea and natural plant, canned food,
beverage and native products ( business license for the production place should apply separately); technology
development and technology service of tea, plant products, soft beverage and foods; info tech development and
supporting service; on-line trading; investment, operation, management and development of tea plantation;
investment in industrial projects (apply separately for detail projects); domestic trading(excluding special sales,
specific control and exclusive commodity); import and export business; engaged in real estate development and
operation in the land legally obtained; lease and sales of the self-owned property and property management.” (as
for the projects subject to examination and approval regulated by the state laws, administrative regulations and
state council, approval should be obtained before operation). Business in license: wholesale of prepackaged food
(excluding reheating prepackaged food) (in non-physical way).
3. Report approval for the financial statement
The statement has been approved by the Board dated 24 August 2017 for reporting.
4. Scope of consolidated financial statements
Totally 17 subsidiaries are included in consolidate financial statement, mainly including:
Shareholding Voting rights ratio
Subsidiaries Type Level
ratio (%) (%)
Shenzhen Shenbao Huacheng Technology Co., Ltd. (Shenbao Wholly-owned 100
First grade
Huacheng for short) subsidiary
Wholly-owned 100
Wuyuan Jufangyong Tea Co., Ltd. (Wuyuan Jufangyong for short) First grade
subsidiary
Shenzhen Shenbao Sanjing Food and Beverage Development Co., Wholly-owned 100
First grade
Ltd. (Shenbao Sanjing for short) subsidiary
Huizhou Shenbao Technology Co., Ltd. (Huizhou Shenbao Wholly-owned 100
First grade
Technology for short) subsidiary
Shenzhen Shenbao Property Management Co., Ltd. (Shenbao Wholly-owned 100
First grade
Property for short) subsidiary
Shenzhen Shenbao Industry and Trade Co., Ltd. (Shenbao Industry Wholly-owned 100
First grade
and Trade for short) subsidiary
Hangzhou Jufangyong Holding Co., Ltd. (Hangzhou Jufangyong Wholly-owned 100
First grade
for short) subsidiary
Shenzhen Shenbao Technology Center Co., Ltd. (Shenbao Wholly-owned 100
First grade
Technology Center for short) subsidiary
Shenzhen Shenshenbao Investment Co., Ltd. (Shenshenbao Wholly-owned First grade 100
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Investment for short) subsidiary
Yunnan Pu'er Tea Shenbao Supply Chain Management Co., Ltd. Wholly-owned 100
First grade
(hereinafter referred to as Yunnan Supply Chain) subsidiary
Wholly-owned 100
Huizhou Shenbao Food Co., Ltd. (Huizhou Shenbao Food for short) First grade
subsidiary
Yunnan Pu’er Tea Exchange Center Co., Ltd. (hereinafter referred Holding 55
First grade
to as Pu’er Tea Exchange Center) subsidiary
Wuyishan Shenbeo Rock Tea Co., Ltd. (Shenbao Rock Tea for Wholly-owned Second 100
short) subsidiary grade
Hangzhou Fuhaitang Tea Ecological Technology Co., Ltd. Wholly-owned Second 100
(Fuhaitang Ecological for short) subsidiary grade
Hangzhou Chunshi Network Technology Co., Ltd. (Chunshi Wholly-owned Second 100
Network for short) subsidiary grade
Shenzhen Shenshenbao Tea Culture Business Management Co., Holding Second 65
Ltd. (Shenshenbao Tea Culture for short) subsidiary grade
Hangzhou Jufangyong Trading Company (hereinafter referred to as Holding Second 60
Jufangyong Trading) subsidiary grade
Subsidiary excluded in consolidated financial statement
(1) Shenzhen Shenbao (Liaoyuan) Industrial Company has established for a long time without normal operation,
Industry and Commerce Bureau has canceled the business license of the company, the long-term equity
investment for the company has been accrual for impairment totally. Financial statement of the company is out of
the consolidation range.
(2) Shenzhen Baomanan Biotechnology Co., Ltd. is a subsidiary of the Company, set up by Huizhou Shenbao
Technology and Guangzhou Shen Guangsheng biotechnology limited liability company, according to the contract
signed by both parties on March 28, 2014, Huizhou Shenbao Technology does not have the right to actual control
this company, thus it is accounted by the equity method.
(3) Shenzhen Shichumingmen Restaurant Management Co., Ltd. (hereinafter referred to as \"Shichumingmen
Company\"), set up by a subsidiary of the Company Shenshenbao tea culture and Shenzhen Investment Co., Ltd. F.
according to Articles of Association, the Board of Directors to vote by one vote one person. Attendees to the
board of directors should be more than 2/3 of the whole number of directors, and all participants aaprove the
resolution thus it is effective. The Company only accounted for 3/5 of the voting rights in Shichumingmen
Company, control can not be reached, so it is accounted for by the equity method.
IV. Basis of preparation of financial statements
1. Basis of preparation
Based on continuing operation, the Company conducts recognition and measurement according to actual
occurrence of transactions and issues, pursuant to the accounting principles for enterprise-basic rules and specific
深圳市深宝实业股份有限公司 2017 年半年度报告全文
accounting principle as well as the application guidance for the accounting principles for enterprise, interpretation
to the accounting principles for enterprise and other related requirements (hereinafter referred to as Enterprise
Accounting Principles) issued by the ministry of finance, on that basis, combining the Information Disclosure
Preparation Rules for Company Public Issuing Securities No.15-General Rules for Financial Report (amended in
2014) of the CSRC for statement preparation.
2. Going concern
The Company was evaluated on continued viability of 12 months for the reporting period and found to have no
significant doubt. Accordingly, the financial statements have been prepared on the basis of going concern
assumptions.
V. Major accounting policy, accounting estimation
Specific accounting policies and estimation attention:
The financial statements prepared by the Company are in accordance to requirements of Accounting Standard for
Enterprise, which truly and completely reflect the information related to financial position, operational results and
cash flow of the Company.
1. Statement for observation of Accounting Standard for Enterprise
The financial statements prepared by the Company are in accordance to requirements of Accounting Standard for
Enterprise, which truly and completely reflect the information related to financial position, operational results and
cash flow of the Company.
2. Accounting period
Calendar year is the accounting period for the Company, that is falls to the range starting from 1 January to 31
December.
3. Operating cycle
Operating cycle of the Company was 12 months, and the operating cycle is the determining criterion for liquidity
of assets and liabilities.
4. Standard currency
The Company and its subsidiaries take RMB as the standard currency for bookkeeping.
深圳市深宝实业股份有限公司 2017 年半年度报告全文
5. Accounting treatment for business combinations under the same control and those not under the same
control
(1) If the terms, conditions, and economic impact of each transaction involved in business combination
achieved in stages fall within one or more of the following situations, such transactions will be accounted for
as a package deal
1) Such transactions are entered into simultaneously or in the case of considering the impact of each other;
2) Such transactions as a whole in order to reach a complete business results;
3) The occurrence of a transaction subject to that of at least one other transaction;
4) One transaction alone is not economic, but otherwise when considered with other transactions.
(2) Business combination under the same control
The assets and liabilities the Company acquired in a business combination shall be measured in accordance with
book value of assets, liabilities (including the ultimate controlling party of goodwill acquired by the merging
parties and the formation of) stated in combined financial report of the ultimate controlling party on the merger
date. The net book value of assets and the payment of the merger consideration in the merger book value (or
nominal value of shares issued) shall be adjusted in the share premium of reserve capital. the share premium in
capital reserve is not enough for deducting, retained earnings .
If the capital reserve is not sufficient to absorb the difference, any excess shall be adjusted against retained
earnings. In case there is existence of contingent consideration which needs to confirm projected liabilities or
assets, then the difference between the projected liabilities or assets and settlement amount for consequent
contingent consideration is utilized to adjust capital reserve (capital premium or equity premium); in case of
insufficient capital reserve, adjust retained earnings.
As for business combination realized through numbers of transactions, and if these transactions belong to a bundle
of transactions, then each of them shall be accounted as a transaction to acquire controlling right; and if not belong
to a bundle of transactions, then the difference between the initial investment cost of the long term equity
investment as of the date on which the Company obtains controlling right and the carrying value of the long term
equity investment prior to combination plus the carrying value of the new consideration paid for further
acquisition of shares as of the combination date shall be used to adjust capital reserve; in case of insufficient
capital reserve, adjust retained earnings. For equity investment held prior to the combination date, the other
comprehensive income recognized due to calculation by equity method or based on recognition and measurement
principles for financial instruments would not be accounted for temporarily until the Company disposes of this
investment on the same basis as the investee directly disposes of relevant assets or liabilities; other changes of
owners’ equity in the net assets of investee as recognized under equity method, except for net profit or loss, other
comprehensive income and profit distribution, shall not be accounted for until being transferred to current profit
or loss when this investment is disposed of.
深圳市深宝实业股份有限公司 2017 年半年度报告全文
(3) Business combination not under the same control
Assets paid and liabilities taken for business combination on the acquisition date shall be measured at fair value.
The difference between the fair value and book value is recognized in profit or loss.
Goodwill is realized by the Company as for the difference between the combination cost and the fair value of the
recognizable net assets of the acquiree acquired by acquirer in such business combination. In case that the above
cost is less than the above fair value even with re-review, then the difference shall be recorded in current gains
and losses.
As for the business combination not under the same control realized through several exchange transactions step by
step, part of the package deal, than carrying accounting treatment on transactions with controlling rights obtained
through vary transactions; as for non-package: for equity investment held prior to combination date which is
calculated under equity method, the sum between carrying value of the equity investment prior to acquisition date
and cost of additional investment made on the acquisition date is deemed to be the initial investment cost of this
investment. Other comprehensive income recognized for equity investment held prior to combination date under
equity method shall be accounted for when the Company disposes of this investment on the same basis as the
investee directly disposes of relevant assets or liabilities. In case that equity investment held prior to combination
date is calculated based on recognition and measurement principles for financial instruments, then the fair value of
this equity investment as of combination date plus new investment cost shall be deemed as initial investment cost.
The difference between fair value and carrying value of the originally held equity interests and the accumulated
fair value movements as originally recorded in other comprehensive income shall be all transferred to investment
income of the period in which the combination date falls.
(4) Expenses related to the merger
Audit, legal, consulting services, and other intermediary costs and other expenses directly related to the business
combination, shall be included in current profit or loss in the event; any transaction fee for issuing equity
securities for business combination which can be directly attributable to the equity transaction shall be deducted
from equity.
6. Methods for preparation of consolidated financial statements
1. Merger scope
The consolidation scope of the consolidated financial statements of the Company is fixed on the basis of control,
and all subsidiaries have been consolidated.
2. Merger procedure
The Company edits the consolidated financial statements based on its own financial statements and the
subsidiaries’, as well as other relevant information. The consolidated financial statements hold the enterprise
group as a whole accounting entity. It is recognized in accordance with relevant Accounting Standards,
深圳市深宝实业股份有限公司 2017 年半年度报告全文
measurement and presentation requirements. Uniform accounting policies reflect the overall financial position of
the Group's business, operating results and cash flow.
The accounting policies and accounting period adopted by the subsidiaries taken into account of the consolidation
scope are in line with the Company. If it is not the same as the Company, necessary adjustments will be made
when preparing consolidated financial statements according to the accounting policy and accounting period of the
Company.
Internal transactions between the Company and its subsidiaries and between subsidiaries to each other shall put
impact on the consolidated balance sheet, consolidated income statement, consolidated cash flow statement, the
consolidated shareholders' equity. The impact shall be offset when combing financial statements. If it is not the
same when you stand Enterprise Group and the angle of the Company or its subsidiaries as the accounting entity
identified on the same transaction, the business point of view shall be adjusted to the Group's transactions.
Subsidiary's equity, current net profits or losses and current comprehensive income belonging to minority
shareholders shall be listed respectively under item of owners’ equity in the consolidated balance sheet, item of
net profit in profit sheet and item of total comprehensive income. Current loss minority shareholders of a
subsidiary exceed the minority shareholders in the subsidiary's opening owners' equity share and the formation of
balance, offset against minority interests.
For the subsidiaries acquired through business combination under common control, its assets and liabilities
(including goodwill formed from ultimate controlling party acquiring the subsidiary to) shall be adjusted based on
the book value in the financial statements of the ultimate controlling party.
For the subsidiaries acquired through business combination under uncommon control, financial statements shall
be adjusted based on the fair value of the identifiable net assets on acquiring date.
1) Increase of subsidiary or business
During the reporting period, the merger of the enterprises under the same control results in additional subsidiaries
or business, then adjust the opening amount of consolidated balance sheet; income, expenses and profit of the
subsidiaries or business from beginning to the end of the reporting shall be included in the consolidated profit
statement; cash flows of the subsidiaries or business from beginning to the end of reporting period shall be
included into the consolidated cash flow statement. And relevant comparative items of comparable statement shall
be adjusted since reporting entity is controlled by the ultimate controller.
If additional investment and other reasons can lead investee to be controlled under the same control, all parties
shall be adjusted at the beginning when the ultimate controlling party starts control. Equity investments made
before obtaining controlling right, relevant gains and losses and other comprehensive income as well as other
深圳市深宝实业股份有限公司 2017 年半年度报告全文
changes in net assets confirmed during the latter date between point obtaining original equity and merger and
mergeree under the same control day to the combined day, shall be offset against the retained earnings or profit or
loss of the comparative reporting period.
During the reporting period, opening amount of consolidated balance sheet shall not be adjusted since enterprise
under different control combine or increase holding of subsidiary or business; the income, expense and profit of
the subsidiaries or business from the acquisition date to the end of reporting period shall be included in the
consolidated profit statement; while cash flows shall be included into the consolidated cash flow statement.
Equity held from investee before acquisition date shall be measured at fair value of acquisition date if additional
investment and other reasons can lead investee to be controlled under the same control. Difference between the
fair value and the book value is recognized as investment income. other comprehensive income and other owners'
equity except for net profit or loss, other comprehensive income and the distribution of profits related to equity
held from investee before acquisition date, as well as relevant other comprehensive income associated with all
other by changes in equity shall be included in current investment income, except for other comprehensive income
arising from change of net assets or net liabilities redefined by investee.
2) Disposal of subsidiaries or business
A. The general approach
During the reporting period, the Company carry out disposal of subsidiaries or business, revenue, expense and
profit of the subsidiary or business included in the consolidated profit statement from the beginning to the disposal
date; while the cash flow into cash flow table.
If losing controlling right to investee due to disposal of partial equity, the remaining equity after the disposal shall
be re-measured at fair value at the date when control is lost. Price of equity disposal plus fair value of the
remaining equity, then subtracting net assets held from the former subsidiary from the acquisition date or
combination date initially measured in accordance with original stake and goodwill, the difference shall be
included in investment income of the period losing controlling right. other comprehensive income and other
owners' equity except for net profit or loss, other comprehensive income and the distribution of profits related to
equity held from investee before acquisition date, as well as relevant other comprehensive income associated with
all other by changes in equity shall be included in current investment income, except for other comprehensive
income arising from change of net assets or net liabilities redefined by investee.
B. Step disposal of subsidiaries
As multiple transactions over disposal of the subsidiary's equity lead to loss of controlling right, if the terms of the
transaction, situation and economic impact subject to one or above of the following conditions, usually it indicates
repeated transactions should be accounted for as a package deal:
a. These transactions are made considering at the same time or in the case of mutual impact;
深圳市深宝实业股份有限公司 2017 年半年度报告全文
b. These transactions only reach a complete business results when as a whole;
c. A transaction occurs depending on the occurrence of at least one other transaction;
d. Single transaction is not economical, but considered together with other transactions it is economical.
If disposal of equity in subsidiaries lead the loss of control and the transactions can be seen as a package deal, the
Company will take accounting treatment of the transaction; however, before the loss of control the difference
between the disposal price and the corresponding net assets of the subsidiary, recognized as other comprehensive
income in the consolidated financial statements, into current profit and loss at current period when losing
controlling right.
If disposal of equity in subsidiaries lead the loss of control and the transactions doesn’t form a package deal,
equity held from subsidiary shall be accounted in accordance with relevant rules before losing controlling right,
while in accordance with general accounting treatment when losing controlling right.
3) Purchase of a minority stake in the subsidiary
Long-term equity investment of the Company for the purchase of minority interests in accordance with the newly
acquired stake in the new calculation shall be entitled to the difference between the net assets from the acquisition
date (or combination date) initially measured between the consolidated balance sheet adjustment capital balance
of the share premium in the capital reserve share premium insufficient, any excess is adjusted to retained earnings.
4) Disposal of equity in subsidiary without losing control
Disposal price and disposal of long-term equity investment without a loss of control due to partial disposal of
subsidiaries and long-term equity investment made between the relative net assets from the purchase date or the
date of merger were initially measured at the difference between the subsidiary shall enjoy, the consolidated
balance sheet adjustment in the balance of the share premium, capital balance of the share premium insufficient,
any excess is adjusted to retained earnings.
7. Classification of joint venture arrangement and accounting for joint operations
(1) Classification of joint venture arrangement
The Company classifies joint venture arrangement into joint operations and joint ventures based on the structure,
legal form, agreed terms of the arrangement and other related facts and conditions.
Joint venture arrangement not concluded through separate entity is classified as joint operation; and those
concluded through separate entity are generally classified as joint ventures. However, joint venture arrangement
which meets any of the following conditions as proven by obvious evidence and satisfies relevant laws and rules
is grouped as joint operation:
1) The legal form of the arrangement shows that parties to the arrangement are entitled to and assume rights and
obligations in respect of the relevant assets and liabilities.
深圳市深宝实业股份有限公司 2017 年半年度报告全文
2) It is agreed by the terms of the arrangement that parties to the arrangement are entitled to and assume rights and
obligations in respect of the relevant assets and liabilities.
3) Other related facts and conditions show that parties to the arrangement are entitled to and assume rights and
obligations in respect of the relevant assets and liabilities. For instance, joint parties are entitled to almost all the
output related to joint venture arrangement and settlement of the liabilities under the arrangement continues to rely
on supports from the joint parties.
(2) Accounting for joint operations
The Company recognizes its proportion of interests in joint operation as related to the Company, and accounts for
under relevant business accounting principles:
1) To recognize separately-held assets and jointly-held assets under its proportion;
2) To recognize separately-assumed liabilities and jointly-assumed liabilities under its proportion;
3) To recognize revenue from disposal of the output which the Company is entitled to under the proportion;
4) To recognize revenue from disposal of the output under the proportion;
5) To recognize separately occurred expenses, and to recognize expenses occurred for joint operations under its
proportion.
For injection to or disposal of assets of joint operations (other than those assets constituting business operation),
gain or loss arising from the transaction is only recognized to the extent it is attributable to other parties to the
joint operation before the joint operation is sold to any third party. In case those assets injected or disposed satisfy
the condition for asset impairment loss under Business Accounting Principle No.8-Assets Impairment, the
Company recognizes this loss in full.
For acquisition of assets from joint operations (other than those assets constituting business operation), gain or
loss arising from the transaction is only recognized to the extent it is attributable to other parties to the joint
operation before the relevant assets are sold to any third party. In case that the acquired assets satisfy the condition
for asset impairment loss under Business Accounting Principle No.8-Assets Impairment, the Company recognizes
relevant loss according to the proportion it assumes.
The Company exercises no common control over joint operations. If the Company is entitled to relevant assets of
the joint operation and assure relevant liabilities, it shall be accounted for under the above principle, otherwise it
would be accounted for under the relevant business accounting principles.
8. Recognition standards for cash and cash equivalents
When preparing cash flow statement, the Company recognized the stock cash and deposits available for payment
at any time as cash, and investments featuring with the following four characters at the same time as cash
equivalents: short term (expire within 3 months commencing from purchase day), active liquidity, easy to convert
to already-known cash, and small value change risks.
深圳市深宝实业股份有限公司 2017 年半年度报告全文
9. Foreign currency business and conversion of foreign currency statement
For the foreign currency business, the Company converts the foreign currency into RMB for book-keeping based
on spot exchange rate at date of trading occurred.
On balance sheet date, balance of foreign currency monetary items shall be converted based on the spot rate as at
the balance sheet date, and the arising exchange difference shall be recorded in current gains and losses other than
those arising from the special foreign currency borrowings related to purchasing assets qualifying for
capitalization which is treated under the principle of borrowing expense capitalization. As for the foreign currency
non-monetary items measured in historical cost, conversion is still conducted with the spot rate as at the
transaction date, without any change to its functional currency. As for the foreign currency non-monetary items
measured in fair value, conversion is conducted with the spot rate as at the date for determination of fair value,
and the arising exchange difference shall be recorded in current gains and losses or capital reserve.
As for the foreign currency non-monetary items measured in fair value, conversion is conducted with the spot rate
as at the date for determination of fair value, and the arising exchange difference shall be recorded in current gains
and losses or capital reserve.
10. Financial instruments
Financial instruments include financial assets, financial liabilities and equities instruments.
1. Categories of financial instruments
According to the contract terms of the financial instrument issued and economic substance reflects by such
instrument, not only in form of law, combine with purposes held for financial assets and liabilities, the Company
categorizes financial assets and liability into different types: financial assets (or financial liabilities) at fair value
through current gains and losses; accounts receivable; financial assets available for sale; other financial liabilities,
etc.
2. Recognition and measurement for financial instrument
(1) Financial assets or liabilities at fair value through profit or loss
Financial assets or liabilities at fair value through profit or loss include transactional financial assets or financial
liabilities and financial assets or liabilities directly designated at fair value through profit or loss.
Transactional financial assets or financial liabilities refer to those meeting any of the following conditions:
1) Purpose for holding the assets or liabilities are to disposal, repurchase or redemption in a short time;
2) Constitute part of the identifiable financial instrument group for central management, and there is objective
evidence proving that the Company manages this group in a short-time-return way recently;
3) Belong to derivative financial instrument, other than those derivatives designated as effective hedge
instruments, belonging to financial guarantee contracts and those linked to equity instrument investment which is
深圳市深宝实业股份有限公司 2017 年半年度报告全文
not quoted in an active market and whose fair cannot be measured reliably and the settlement of which is
conditional upon delivery of the equity instrument.
Subject to satisfaction of any of the following conditions, financial assets or liabilities can be designated as
financial assets or liabilities at fair value through profit or loss upon initial measurement:
1) The designation can eliminate or substantially eliminate the inconsistencies between profit and loss from the
financial assets arising from different measurement basis;
2) The portfolio of financial assets and liabilities in which the financial asset belongs to are designated as
measured at fair value in the risk management report or investment strategic report handed in to key management
personnel;
3) Hybrid instruments which contains one or more embedded derivatives, unless the containing of embedded
derivatives does not have substantial effect on the cash flows of the hybrid instruments, or the embedded
derivatives obviously should not be separated from relevant hybrid instruments;
4) Hybrid instruments which contains embedded derivatives that should split, but cannot be measured separately
when acquired or on the subsequent balance sheet date.
The Company initially measures financial assets or liabilities at fair value through profit or loss at their fair values
when acquiring the assets or liabilities (after deducting cash dividend already declared but not paid or bond
interests which is due for interest payment but not received), and the relevant transaction fee is included in current
profit or loss. Interest or cash dividend acquired during the holding period shall be recognized as investment
income, and movement of fair value at the end of period is included in current profit or loss. Upon disposal, the
difference between its fair value and initial accounting amount shall be recognized as investment income, with
corresponding adjustment to gains and losses from movement of fair value.
(2) Account receivables
Account receivable refers to the non-derivative financial assets without price in active market and with amount to
be fixed or to be determined.
The contract price charged to the buyers shall be recognized as initial value for those account receivables which
mainly comprise the receivable creditor’s right caused by the sale of goods and providing of labor service to
external customers by the Company, and receivables in other companies excluding debt instruments priced in
active markets, includes but not limited to trade receivables, notes receivables, account paid in advance and other
receivables. If characterized as of financing nature, the initial recognition shall be priced at the present value.
Upon disposal, the difference between the sale value and the book value of the receivables shall be accounted into
current profit or loss on its recovery or disposal.
(3) Held-to-maturity investment
深圳市深宝实业股份有限公司 2017 年半年度报告全文
The non-derivative financial assets with maturity date, fix return amount or amount able to determined, and the
Company held with specific intention and ability.
The Company takes the sum of fair value (after deducting bond interests which is due for interest payment but not
received) and related transaction fee as initial recognition amount in respect of held-to-maturity investment upon
acquisition of the investment. During the holding period, the Company recognizes interest income at amortized
cost and effective interest rate which is included in investment income. The effective interest rate is determined
upon acquisition of the investment and remains unchanged for the expected continuous period or appropriate
shorter period. Difference between sale price and carrying value of the investment is included in investment
income.
If held-to-maturity investment is disposed or reclassified as other types of financial asset, and the relevant amount
is relatively bigger than the total amount of our all held-to-maturity investments prior to disposal or
reclassification, the remaining held-to-maturity investments shall be reclassified as available-for-sale financial
assets immediately following such disposal or reclassification. On the reclassification date, difference between the
carrying value and fair value of the investment is included in other comprehensive income and is transferred out
into current profit or loss when the available-for-sale financial assets experience impairment or derecognition.
However, the followings are exceptions:
1) The date of disposal or reclassification is approaching to the date of expiration or redemption of the investment
(such as three months prior to expiration), and change of market rate has no material influences over the fair value
of the investment.
2) Company has already recovered nearly all initial principal under the repayment means as agreed in contract.
3) Disposal or reclassification is arising from separate matters which are out of our control, which are expected
not to occur repeatedly and which are difficult to predict reasonably.
(4) Available-for-sale financial assets
Available-for-sale financial assets are non-derivative financial assets that are designated as available-for-sale upon
initial recognition and financial assets other than other categories of financial assets.
The Company initially measures available-for-sale financial assets at the sum between their fair values when
acquiring the assets or liabilities (after deducting cash dividend already declared but not paid or bond interests
which is due for interest payment but not received) and the relevant transaction fee. Interest or cash dividend
acquired during the holding period shall be recognized as investment income. Gains or losses arising from
movement of fair value is directly included in other comprehensive income except for impairment loss and
exchange difference arising from foreign currency monetary financial assets. When disposing available-for-sale
financial assets, the Company includes the difference between the acquired price and carrying value of the
financial assets into investment profit or loss. Meanwhile, accumulated fair value movement attributable to the
disposed part which is originally directly included in other comprehensive income is transferred out and included
深圳市深宝实业股份有限公司 2017 年半年度报告全文
investment profit or loss.
For equity instrument investment which is not quoted in an active market and whose fair value cannot be reliably
measured, and derivative financial assets which are linked to the equity instrument and whose settlement is
conditional upon delivery of the equity instrument, they are stated at cost by the Company.
(5) Other financial liabilities
Initial recognition amount is determined at the sum of fair value and relevant transaction fee. Subsequent
measurement is conducted at amortized cost.
3. Confirmation evidence and measurement methods for transfer of financial assets
When transfer of financial assets occurs, the Company shall stop recognition of such financial assets if all risks
and remunerations related to ownership of such financial assets have almost been transferred to the receiver; while
shall continue to recognize such financial assets if all risks and remunerations related to ownership of such
financial assets have almost been retained.
When judging whether or not the aforesaid terminal recognition condition for financial assets is arrived at for
transfer of financial assets, the Company generally adopts the principle that substance overweighs format. The
Company divides such transfer into entire transfer and part transfer. As for the entire transfer meeting condition
for discontinued recognition, balance between the following two items is recorded in current gains and losses:
(1) Carrying value of financial assets in transfer;
(2) Aggregate of the consideration received from transfer and accumulative movements of fair value originally
recorded in owners’ equity directly (applicable when financial assets involved in transfer belong to financial assets
available for sale).
As for the part transfer meeting condition for discontinued recognition, entire carrying value of financial assets in
transfer is shared by discontinued recognition part and continued recognition part, in light of their respective fair
value. Balance between the following two items is recorded in current gains and losses:
(1) Carrying value of discontinued recognition part;
(2) Aggregate of the consideration of discontinued recognition part and amount of such part attributable to
accumulative movements of fair value originally recorded in owners’ equity directly (applicable when financial
assets involved in transfer belong to financial assets available for sale).
Financial assets are still subject to recognition if transfer of such assets doesn’t satisfy the condition for
discontinued recognition. And consideration received is recognized as financial liability.
4. De-recognition condition for financial liability
As for the financial liabilities with its whole or part present obligations released, the company shall de-realize
深圳市深宝实业股份有限公司 2017 年半年度报告全文
such financial liabilities or part of it. if the company enters into agreement with its creditor to substitute for the
existing financial liabilities by means of assuming new financial liabilities, then the company shall de-realize the
existing financial liabilities and realize the new financial liabilities provided that the contract clauses of the new
and the existing financial liabilities are different in substance.
If the company makes substantial amendment to the whole or part contract clauses of the existing financial
liabilities, it shall de-realize the existing financial liabilities or part of it. Meanwhile, the financial liabilities with
amendment to its clauses shall be realized as new financial liabilities.
In case of derecognizing of financial liabilities in whole or part, the difference between the carrying value of such
de-realized financial liabilities and consideration paid (including the non-cash assets exchanged or new financial
liabilities assumed) shall be recorded in current gains and losses.
In case that the company repurchases part of financial liabilities, based on the comparative fair value of the
continuing recognition part and the derecognizing part, the company shall allocate the carrying value of the
financial liabilities in whole on the repurchase date. Difference between the carrying value allocated to the
derecognizing part and the consideration paid (including the non-cash assets exchanged or new financial liabilities
assumed) shall be recorded in current gains and losses.
5. Determination method for fair value of financial assets and financial liabilities
As for the financial assets or financial liabilities with an active market, the fair value is determined by the offer of
the active market; the offer of the active market includes the offers of underlying assets or liabilities easily and
regularly obtained from the exchange, the dealer, the broker, the industry group, the pricing institution or the
regulatory body, which can represent the market transactions actually and frequently occur on the basis of fair
trade.
The initial acquisition or financial assets or financial liabilities assumed, market transaction price to determine the
fair value basis.
There is no active market for a financial asset or financial liability, the valuation techniques to determine its fair
value. At the time of valuation, the Company adopted applicable in the present case and there is enough available
data and other information technology to support valuation, assets or liabilities of feature selection and market
participants in the trading of the underlying asset or liability considered consistent input value and priority as the
relevant observable inputs. Where relevant observable inputs can not get or do not get as far as practicable, the use
of unobservable inputs.
6. Provision of impairment reserve for impairment of financial assets (excluding account receivables)
The company reviews the carrying value of the financial assets (excluding those measured by fair value and the
深圳市深宝实业股份有限公司 2017 年半年度报告全文
change thereof is recorded in current gains and losses) on the balance sheet date, if there is objective evidence
showing impairment of the financial assets, it shall provide impairment reserve.
Objective evidence that a financial asset is impaired includes the following observable events:
(1) Significant financial difficulty of the issuer or obligor;
(2) A breach of contract by the borrower, such as a default or delinquency in interest or principal payments;
(3) The creditor, for economic or legal reasons relating to the borrower’s financial difficulty, granting a
concession to the borrower;
(4) It becoming probable that the borrower will enter bankruptcy or other financial reorganizations;
(5) The disappearance of an active market for that financial asset because of financial difficulties of the issuer;
(6) Observable data indicating that there is a measurable decrease in the estimated future cash flows from a group
of financial assets since the initial recognition of those assets, although the decrease cannot yet be identified with
the individual financial assets in the group, including: adverse changes in the payment status of borrowers in the
group, an increase in the unemployment rate in the country or geographical area of the borrowers, a decrease in
property prices for mortgages in the relevant area, or adverse changes in industry conditions that affect the
borrowers in the group;
(7) Significant adverse changes in the technological, market, economic or legal environment in which the issuer
operates, indicating that the cost of the investment in the equity instrument may not be recovered by the investor;
(8) A significant or prolonged decline in the fair value of an investment in an equity instrument below its cost;
Details for impairment of financial assets are set out below:
(1) Impairment provision for available-for-sale financial assets
The Group has separately tested various available-for-sale equity instruments at the balance sheet date. It will be
defined as impairment if the fair value is lower than the initial investment cost by more than 50% (including 50%)
or the low state has lasted for no less than 1 year. While the lower proportion is between 20% and 50%, the Group
will take other factors such as price fluctuation into consideration to estimate whether the equity instrument has
impaired or not.
Initial segment of the \"cost\" of the sale of equity instruments in accordance with available cost less any principal
repayment and amortization, impairment loss has been included in determining profit or loss; The fair value of the
available-for-sale equity instrument investment without an active market is determined by the present value
determined on the basis of the current market return similar to financial assets versus the future discounted cash;
the fair value of available-for-sale equity instrument investment with offers in the active market is determined by
the closing price of the stock exchange at the end of the period, unless this available-for-sale equity instrument
investment has a restricted stock trade period.For the presence of restricted investments in equity instruments
available for sale, according to the end of the closing price of the stock exchange market participants by deducting
the risk equity instrument within a specified period cannot be sold on the open market and the requirements to
obtain compensation.
深圳市深宝实业股份有限公司 2017 年半年度报告全文
When an available-for-sale financial asset is impaired, the cumulative loss arising from decline in fair value that
had been recognized in other comprehensive income is reclassified to the profit or loss even though the financial
asset has not been derecognized. The amount of the cumulative loss that is removed from equity is the difference
between the acquisition cost (net of any principal repayment and amortization) and current fair value, less any
impairment loss on that financial asset previously recognized in profit or loss.
If there are objective evidences showing that the value of available-for-sale debt instrument is recovered and it
relates to the matters happened after the impairment loss recognition, the impairment loss recognized shall be
reversed and accounted in current profit or loss. Impairment losses recognized for equity instrument investments
classified as available-for-sale are reversed through equity. However, impairment loss occurred by equity
instrument investment which is not quoted in an active market and whose fair value cannot be measured reliably
and derivative financial assets which are linked to the equity instrument and whose settlement is conditional upon
delivery of the equity instrument, shall not be reversed.
(2) Impairment provision for held-to-maturity investment
For held-to-maturity investment, if there is object evidence showing the investment is impaired, then impairment
loss is determined based on the difference between its fair value and present value of predicted future cash flow.
After provision, if there is evidence showing its value has been restored, the originally recognized impairment loss
can be reversed and included in current profit or loss, provided that the reversed carrying value shall not exceed
the amortized cost of the financial asset as at reversal date assuming no impairment provision had been made.
7. Offset of financial assets and financial liabilities
Financial assets and financial liabilities are stated in balance sheet separately without inner-offset. However, the
net amount after inner offset is stated in balance sheet date when the following conditions are all met:
(1) The Company has legal right to offset recognized amount and the right is enforceable;
(2) The Company plans to settle on a net basis, or simultaneously realize the financial assets and settle the
financial liabilities.
11. Account receivable
(1) Account receivable with single significant amount and withdrawal single item bad debt provision
Amount occupied 10 percent (including 10 percent) of the
Account with single significant amount
balance of account receivable.
Conducted impairment testing separately, balance between the
Withdrawal method for bad debt provision of account receivable present value of future cash flow and its carrying value, bad debt
with single significant amount provision withdrawal and reckoned into current gains/losses. For
those without impairment being found after test, collected into
深圳市深宝实业股份有限公司 2017 年半年度报告全文
relevant combination for accrual.
(2) Accounts receivable whose bad debts provision was accrued by combination based on credit risk
characteristics portfolio
Combination Bad debt provision accrual
Party composition within the scope of consolidation related Other method
Aging of accounts group Age analysis method
Group with bad debt provision accrual by aging:
√ Applicable □ Not applicable
Age Accrual ratio Accrual ratio for other receivable
Within one year (one year included) 0.00% 0.00%
1－2 years 5.00% 5.00%
2－3 years 10.00% 10.00%
Over 3 years 15.00% 15.00%
3－4 years 15.00% 15.00%
4－5 years 15.00% 15.00%
Over 5 years 15.00% 15.00%
In combination, withdrawal proportion of bad debt provision based on balance proportion
□ Applicable √ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods:
□ Applicable √ Not applicable
(3) Account receivable with minor single amount but with withdrawal bad debt provision for single item
There is objective evidence that the Company will not be able to
Reasons for provision of bad debt reserve
recover the money under the original terms of receivables.
Withdrawn according to the difference between present value of
Provision method of bad debt reserve
expected future cash flows and the book value of the receivables.
12. Inventories
Whether the company needs to comply with the disclosure requirements of the particular industry
No
(1) Classification
Inventory means finished goods and merchandise that are ready for sale, work-in-progress, or material used in the
process of production or provision of service in the ordinary course of business. Inventory includes merchandise
in warehouse, delivered goods, work- in-progress, raw materials, subcontracted materials, packages, etc.
(2) Valuation method
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Inventory carried initial measured by cost, including purchasing cost, processing cost and other costs. The
inventory in transit was valued by weighted average method.
(3) Recognized standards of the net realizable value for inventory and withdrawal method on provision of
inventory
After inventory at period-end, the inventories are accounted depending on which is lower between the cost and the
net realizable value or adjusted the provision of inventory. The net realizable value of inventory products and
sellable materials, in normal business production, is measured as the residual value after deducting the estimated
sales expense and related taxes and fees from the estimated selling price; the net realizable value of an item of
inventories subject to further processing, in normal business production, is measured as the residual value after
deducting the sum of the estimated costs of completion, sales expense and related taxes and fees from the
estimated selling price of the sellable item. The net realizable value of the quantity of inventories held to satisfy
firm sales or service contracts is based on the contract price. If the sales contracts are for less than the inventory
quantities held, the net realizable value of the excess is based on general selling prices.
An impairment allowance, if any, is generally individually recognized for each type of inventories at period-end
except: For an individual impairment allowance, if any, is recognized for the whole category of inventories of low
value and large quantities; and for an individual impairment allowance, if any, is recognized for a group of
inventories, which are held for the production and sales of products of a single territory and for identical or similar
usages or purposes, and which are indistinguishable from other types of inventories within the group.
If the previous factors resulting in deduction of inventories values disappear, then such deduction of value shall be
reversed back from the original provision of inventory depreciation reserve, and turns to current gains and losses.
(4) Inventory system
Inventory system is the perpetual inventory system.
(5) Amortization of low-value consumables and packaging materials
1) Adopt five-five amortization for low-value consumables;
2) Adopt one-off writing off process for packaging materials
13. Long-term equity investment
(1) Recognition of investment cost
1) As for the long-term equity investment formed from business combination under the same control, accounting
policy found in (V) Accounting method for business combination (not) under the same control of Note IV
2) Long-term equity investment obtained by other means
深圳市深宝实业股份有限公司 2017 年半年度报告全文
For long-term equity investments obtained through payment with cash, then the actual payment shall be viewed as
initial investment cost. Initial investment cost including the expenses, taxes and other necessary costs that directly
concerned with the long-term equity investment that acquired.
For long-term equity investments obtained through issuance of equity securities, then the fair value of such
securities shall be viewed as initial investment cost; for transaction expenses from issuing or own equity
instrument acquired, it can be deducted from the equity when such expenses attributable directly to equity
transaction.
Under the precedent condition that non-monetray assets exchanges are featured with commercial nature and fair
values of exchange-in or exchange-out assets can be reliably measured, long-term equity investment exchange-in
through non-monetary assets exchange shall be recognized with initial investment cost on the basis of the fair
value of the assets exchange-out, unless there is obvious evidence showing that fair value of exchange-in assets is
more reliable; as for non-monetary assets exchanges not satisfying such precedent condition, initial investment
cost of exchange-in long-term equity investment falls to the carrying value of exchange-out assets and relevant
taxes payable.
For long-term equity investments obtained through debt reorganization, its initial investment cost is recognized
based on fair value.
(2) Subsequent measurement and recognition of gains and losses
1) Cost method
The long-term equity investment control by invested entity shall counted by cost method, and pricing on initial
investment cost, cost of the long-term equity investment shall be adjusted while additional investment or
dis-investment.
Other than payment actually paid for obtaining investment or cash dividend or profit included in consideration
which has been declared while not granted yet, the Company recognizes investment income according to its share
in the cash dividend or profit declared for grant by the invested unit.
2) Equity method
The Company calculates long term equity investment in associates and joint ventures under equity method. For
certain equity investments in associates indirectly held through risk investment institutions, joint funds, trust
companies or similar entities including investment linked insurance fund, the Company measures the investment
at fair value through profit or loss.
Where the initial investment cost of a long-term equity investment exceeds the Group’s share of the fair value of
the investee’s identifiable net assets at the time of acquisition, no adjustment is made to the initial investment cost.
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Where the initial investment cost is less than the Group’s share of the fair value of the investee’s identifiable net
assets at the time of acquisition, the difference is recognized in profit or loss for the period.
Return on investments and other comprehensive income is recognized respectively by shares of net gains and
losses realized by the invested company and other comprehensive income after acquisition of long-term equity,
and book value of such investment is adjusted accordingly. Profit or cash dividends pro rata distributed by the
invested company are to minus book value of the relative long-term investment. Book value of long-term
investment is adjusted when changes occur other than net gains and losses, other comprehensive income and
profit distribution of the invested company, and is to reported in owners’ equity accordingly.
The Company should recognized net profit of invested unit after adjustment, based on fair value of vary
identifiable assets of invested unit while obtained investment, while recognized net profit or net losses of invested
units that should be enjoy by investment enterprise. the un-realized transaction gains/losses attributable to
investment enterprise, internally occurred between the Company, affiliated units and joint-ventures should
calculated by proportion of shares-holding which should be offset, than recognized investment gains/losses.
When the Company is confirmed to share losses of the invested units, the following order shall prevail for
disposal: first of all, offset carrying value of long-term equity investment. Second, for long-term equity investment
whose carrying value is not enough for offset, investment loss should be continued to recognize within the limit of
carrying value of other long-term equity which substantially forms net investment to invested units, to offset
carrying value of long-term items receivable. At last, after the aforesaid treatment, if enterprise still bears
additional duties according to investment contract or agreement, projected liabilities are recognized in accordance
to the obligations which are expected to undertake, and then recorded in current gains and losses.
In the event that the invested unit realizes profit in later periods, the Company will adopt disposal adversed to the
above order after deduction the unrecognized share of loss, i.e. write off the carrying value of the recognized
projected liabilities, recover carrying value of long-term equity which substantially forms net investment to
invested unit and long-term equity investment, and recognize investment income at the same time.
(3) Transfer of calculation for long term equity investment
1) Measure at fair value transfer to equity method
For the equity investment originally held by the Company in which it has no control, common control or
significant influence over the investee and which is accounted for under recognition and measurement principle as
financial assets, in case that the Company becomes able to exercise significant influence or common control upon
the investee due to additional investment while no control is reached, the sum of fair value of the originally held
equity investment as determined under Business Accounting Principles No.22- Recognition and Measurement
Principle as Financial Assets plus cost of the new investment shall be deemed as the initial investment cost upon
calculation under equity method.
深圳市深宝实业股份有限公司 2017 年半年度报告全文
If the originally held equity investment is classified as available for sale financial assets, the difference between its
fair value and carrying value and the accumulated fair value movement which is originally included in other
comprehensive income shall be transferred to current period gains and losses under equity method.
In case that the initial investment cost under equity method is lesser than share of fair value of the investee’s net
identifiable assets as of the date when additional investment is made as calculated based on the latest shareholding
proportion upon additional investment, carrying value of the long term equity investment shall be adjusted against
such difference which is included in current period non-operating income.
2) Measure at fair value or calculation under equity method transfer to calculation under cost method
For the equity investment originally held by the Company in which it has no control, common control or
significant influence over the investee and which is accounted for under recognition and measurement principle as
financial instrument, or for long term equity investment originally held in associates or joint ventures, in case that
the Company becomes able to exercise control over investee not under common control due to additional
investment, the sum of fair value of the originally held equity investment plus cost of the new investment shall be
deemed as the initial investment cost upon calculation under cost method when preparing separate financial
statement.
For other comprehensive income as recognized under equity method in respect of equity investment held prior to
acquisition date, when the Company disposes this investment, the aforesaid income shall be accounted for on the
same basis as the investee would otherwise adopt when it directly disposes relevant assets or liabilities.
For equity investment held prior to acquisition date which is accounted for under Business Accounting Principles
No.22- Recognition and Measurement of Financial Assets, the accumulated fair value movement which originally
included in other comprehensive income shall be transferred to current period gains and losses upon calculation
under cost method.
3) Calculation under equity method transfer to fair value measurement
In case that the Company lost common control or significant influence upon investee due to disposal of part equity
investment, the remaining equity investment shall be calculated under Business Accounting Principles No.22-
Recognition and Measurement of Financial Assets, and the difference between its fair value and carrying value as
of the date when the Company lost common control or significant influence shall be included in current period
gains and losses.
For other comprehensive income as recognized under equity method in respect of the original equity investment,
when the Company ceases calculation under equity method, the aforesaid income shall be accounted for on the
same basis as the investee would otherwise adopt when it directly disposes relevant assets or liabilities.
深圳市深宝实业股份有限公司 2017 年半年度报告全文
4) Cost method transfer to equity method
In case that the Company lost control upon investee due to disposal of part equity investment, and if the remaining
equity investment can exercise common control or significant influence over the investee, equity method shall be
adopted when preparing separate financial statement, and the remaining equity investment shall be adjusted as if it
had been stated under equity method since the acquisition.
5) Cost method transfer to fair value measure
In case that the Company lost control upon investee due to disposal of part equity investment, and if the remaining
equity investment cannot exercise common control or significant influence over the investee, Business Accounting
Principles No.22- Recognition and Measurement of Financial Assets shall be adopted for accounting treatment
when preparing separate financial statement, and the fair value and carrying value as of the date when control is
lost shall be included in current period gains and losses.
(4) Disposal of long term equity investment
Difference between carrying value and actual acquisition price in respect of disposal of long term equity
investment shall be included in current period gains and losses. For long term equity investment under equity
method, the Company shall adopt the same basis as the investee directly disposes relevant assets or liabilities
when disposing this investment, and account for the part originally included in other comprehensive income under
appropriate proportion.
If the terms, conditions and economic impact of each transaction involved in the disposal by steps of investment
in subsidiaries fall into one or more of the following situations, such transactions will be accounted for as a
package deal:
1) Such transactions are entered into simultaneously or in the case of considering the impact of each other;
2) Such transactions as a whole in order to reach complete commercial results;
3) The occurrence of one transaction is subject to that of at least one other transaction;
4) A transaction alone is not economic, but otherwise when considered with other transactions.
Enterprises that lose control of their original subsidiaries due to the disposal of partial equity investment or
otherwise, and therefore disqualify a package deal, should prepare the relevant accounting treatment in
differentiation with individual financial statements and consolidated financial statement:
A. In separate financial statement, as for disposal of equity interest, difference between carrying value and actual
acquisition price shall be included in current period gains and losses. In case that the remaining equity interests
can exercise common control or significant influence over investee, it shall be stated under equity method in stead,
and shall be adjusted as if the remaining equity interests had been stated under equity method since the acquisition.
In case that the remaining equity interests cannot exercise common control or significant influence over investee,
it shall be accounted for under Business Accounting Principles No.22- Recognition and Measurement Principle of
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Financial Instruments, and the difference between its fair value and carrying value as of the date then the
Company lost control shall be included in current period gains and losses.
B. In consolidated financial statement, for those transactions occurred before lost of control in subsidiaries, the
difference between disposal price and share of net assets of subsidiaries since purchase date or combination date
shall be used to adjust capital reserve (equity premium), and if capital reserve is insufficient to offset, then it shall
adjust retained earnings; when the Company lost control in a subsidiary, the remaining equity interests would be
re-measured at the fair value as of the control-lost date. The sum of consideration gained from the disposal of
equity and the fair value of remaining equity minus the share of net assets of original subsidiaries since the day of
purchase and based on its original shareholding ratio is credited into investment gain for the current period, and
off-set the goodwill at the same time. Other comprehensive income in relation to equity investments of original
subsidiaries should be transferred to investment gain for the period at the time of loss of control.
Each transaction involved in the disposal of equity investments of subsidiaries until loss of control falls into a
package deal, carrying accounting treatment on transaction of losing control rights and disposing the company,
and should be accounted for accordingly in differentiation with individual financial statements and consolidated
financial statements:
A. In consolidated financial statements, difference between each payment from disposal of an equity and the book
value of such long-term equity investment before the loss of control should be recognized as other comprehensive
income and at the time of loss of control, transferred to profit or loss for the current period.
B. In consolidated financial statements, difference between each payment from disposal of a subsidiary and the
share of its net assets through investment before the loss of control should be recognized as other comprehensive
income and at the time of loss of control, transferred to profit or loss for the current period.
(5) Criteria for common control and significant influence
Where the Company jointly controls an arrangement with other participators under agreed terms, and decisions
which materially affect return of such arrangement can only exist when other participators unanimously agree on
the decisions, the Company is deemed to jointly control this arrangement with other participators, and the
arrangement belongs to joint venture arrangement.
In case of a joint venture arrangement concluded through separate entity, when the Company is judged to be
entitled to the net assets of the separate entity under relevant agreements, the entity shall be viewed as a joint
venture under equity method. However, when the Company is judged to be not entitled to the net assets of the
separate entity under relevant agreements, the entity shall be viewed as a joint operation, in which case, the
Company recognizes items relating to its share of interests from the joint operation and accounts for according to
relevant business accounting rules.
Significant influence refers to that investor has right to participate in making decisions relating to the financial and
深圳市深宝实业股份有限公司 2017 年半年度报告全文
operational policies of the investee, while not able to control or jointly control (with others) establishment of these
policies. The following one or more conditions are based to judge whether the Company has significant influence
over investee with consideration of all facts and situations: (1)has delegate in the board of directors or similar
authority organs of investee; (2)participate in establishing financial and operational policies of the investee;
(3)occur material transactions with the investee; (4)delegate management to the investee; (5)provide key technical
data to the investee.
14. Investment real estate
Measurement
Measured by cost
Depreciation or amortization method
Investment real estate is defined as the real estate with the purpose to earn rent or capital appreciation or both,
including the rented land use rights and the land use rights which are held and prepared for transfer after
appreciation, the rented buildings.
The investment property of the Company is accounted at its cost. Cost of investment property purchased from the
external sources includes purchase payment, related taxes and other expenditures which can be directly
attributable to such assets; Cost of investment property constructed by the Company comprise of the necessary
expenditure occurred during the construction for reaching the condition of planned use.
The Company adopts cost method for subsequent measurement of investment property. As for the investment
property measured at cost method – buildings for lease are depreciated under the policies which are the same as
fixed assets, and land use right for lease are amortized under the policies which are the same as intangible assets.
When use of investment property changes to be used by the company itself, the company shall transfer the
investment property to fixed assets or intangible assets since the change date. When use of the self-use real estate
changes for earning rental or capital appreciation, the company shall transfer the fixed assets or intangible assets
to investment property since the change date. For such transfer, the carrying value prior to the transfer is deemed
to be the value accounted after the transfer.
The company would de-realize investment property when the same is disposed or out of use forever and no
economic benefit would be obtained from such disposal. The disposal income from sale, transfer, dump or destroy
of investment property less its carrying value and related taxes is recorded in current gains and losses.
深圳市深宝实业股份有限公司 2017 年半年度报告全文
15. Fixed asset
(1) Recognition of fixed assets
Fixed assets is defined as the tangible assets which are held for the purpose of producing goods, providing
services, lease or for operation & management, and have more than one year of service life. Fixed assets should be
recognized for qualified the followed conditions at the same time:
1) It is probable that the economic benefits associated with the assets will flow into the Company;
2) The cost of the assts can be measured reliably. Among them, the cost of outsourcing fixed assets includes the
buying price, import tariff and other related taxes and fees, as well as other expenses occurred before making the
fixed assets reach the intended serviceable condition and can be directly attributable to the assets. The cost of
self-constructed fixed assets consists of the necessary expenses occurred before reaching the intended serviceable
condition by the construction of the assets. The fixed assets invested by the investors take the value stipulated by
investment contract or agreement as the entry value, but it should take the fair value as the entry value when the
value stipulated by investment contract or agreement is not fair. When the cost of purchasing fixed assets has a
delay in payment exceeding the normal credit terms and substantially possesses financing, the cost of fixed assets
is determined on the basis of the present value of the purchasing price. The balance between the actual paid cost
and the present value of purchasing price is reckoned in the current profits and losses in the credit period, except
for the capitalization.
Subsequent measurement and disposal of fixed assets 1) Depreciation of fixed assets is accrued within the
estimated useful life after deducting the estimated residual value from its entry value. For the fixed assets accrued
with provision for impairment, determine the amount of depreciation by the book value deducting the provision
for impairment and according to the useful life. The Company determines the useful life and estimated net
residual value of fixed assets according to the nature and use of fixed assets, and rechecks the useful life,
estimated net residual value, and depreciation method of fixed assets at the end of the year, and makes
corresponding adjustments if there is difference with the original estimated number.
2) The follow-up expenses of fixed assets and the follow-up expenses related to fixed assets are included in the
cost of fixed assets if they meet the requirements for recognition of fixed assets; those cannot meet the
requirements for recognition of fixed assets should be included in the current profits and losses when occur.
3) When the fixed assets are disposed, or expected not to generate economic benefits through use or disposal,
derecognize the fixed assets. The amount after deducting its book value and related taxes and dues from the
disposal income of the fixed assets sale, transfer, retirement or impairment is included in the current profits and
losses.
(2) Depreciation methods
Categories Method Years of depreciation Scrap value rate Yearly depreciation rate
Houses and buildings: Straight-line depreciation
35 5 2.71
production buildings
Houses and buildings: Straight-line depreciation 40 5 2.38
深圳市深宝实业股份有限公司 2017 年半年度报告全文
production buildings
Houses and buildings: Straight-line depreciation
9 5 10.56
makeshift
Mechanical equipment Straight-line depreciation 12 5 7.92
Transportation vehicle Straight-line depreciation 9 5 10.56
Other equipment Straight-line depreciation 6 5 15.83
(3) Recognition, measurement and depreciation of fixed assets held under finance lease
A fixed asset leased by the Company is recognized as the fixed asset held under finance lease if one or more of the
following criteria are met: (1) Upon the expiry of the lease term, the ownership is transferred to the Company. (2)
The Company has the option to purchase the asset at a predetermined price that is expected to be sufficiently
lower than the fair value at the date the option becomes exercisable and it is reasonably ascertained at the
inception of lease that the option will be exercised. (3) The lease term approximates the useful life of the relevant
asset even if the ownership is not transferred. (4) At the inception of the lease, the present value of the minimum
lease payments is substantially equivalent to the fair value of the leased asset. (5) The leased assets are of such a
specialized nature that only the Company can use them without major modification. A fixed asset held under
finance lease is initially recognized at the lower of fair value of the leased asset and the present value of the
minimum lease payments, while the amount of the minimum lease payments will be recognized as the entry value
of long-term account payable, the difference between them will be recognized as unrecognized financing costs.
The initial direct costs such as commissions, attorney’s fees, and travelling expenses, stamp duties attributable to
the leased item incurred during the process of lease negotiating and signing the leasing agreement shall be
recorded in the asset value. Unrealized finance costs will be amortized using actual interest rate method over each
period during the lease terms. The Company adopts depreciation policies for leased assets consistent with those of
self-owned fixed assets for the purpose of calculating the depreciation of a leased asset. If it is reasonable to be
certain that the lessee will obtain the ownership of the leased asset when the lease term expires, the leased asset
shall be fully depreciated over its useful life. If it is not reasonable to be certain that the lessee will obtain the
ownership of the leased asset at the expiry of the lease term, the leased asset shall be fully depreciated over the
shorter one of the lease term or its useful life.
16. Construction in process
(1) Initial measurement of constructions under progress
Self-constructed constructions under progress of the Company are carried at actual costs. Actual costs include the
necessary expenses for constructing such asset to the expected useable condition, including material costs for
project, labor cost, related taxes and fees paid, borrowing expenses to be capitalized and indirect costs to be
amortized. The constructions under progress of the Company are accounted for by project category.
(2) Standard and point of time for construction in process carrying forward to fixed assets
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Fixed asset is booked with the entire expenditures occurred in the construction in process till it arrives at predicted
state for use. For those constructions in process of fixed assets which have already arrived at the predicted state
for use, while still with absence of completion settlement, they shall be carried forward to fixed assets at the
estimated value based on engineering budget, construction cost or actual cost commencing from the date of arrival
of the predicted state for use. Meanwhile, they shall be also subject to the depreciation policies applicable to fixed
assets of the Company for provision of depreciation. Once completion settlement is made, the original temporary
estimated value shall be adjusted at the effective cost. However, the original provision of depreciation remains
unchanged.
17. Borrowing expenses
(1)Recognition of the borrowing expenses capitalization
Borrowing expenses that attributed for purchasing or construction of assets that are complying with capitalizing
conditions start to be capitalized and counted as relevant assts cost; other borrowing expenses, reckoned into
current gains and losses after expenses recognized while occurred.
Assets satisfying the conditions of capitalization are those assets of fixed, investment real estate etc. which need a
long period of time to purchase, construct, or manufacturing before becoming usable.
Capitalizing for borrowing expenses by satisfying the followed at same time:
1) Assets expense occurred, and paid as expenses in way of cash, non-cash assets transfer or debt with interest
taken for purchasing, constructing or manufacturing assets that complying with capitalizing condition;
2) Borrowing expenses have occurred;
3) Necessary activities occurred for reaching predicted usable statues or sale-able status for assets purchased,
constructed or manufactured.
(2) Period of capitalization
Capitalizing period was from the time star capitalizing until the time of suspended capitalization. The period for
borrowing expensed suspended excluded in the period.
If purchasing, construction, or manufacturing process of an asset satisfying the conditions of capitalization
reached its predicted usable status or sale-able status, capitalization suspended for borrowing expenses.
If purchasing, construction, or manufacturing process of an asset satisfying the conditions of capitalization
completed projects and usable independently for part of the projects, borrowing expenses for this kind of assts
shall suspended capitalization.
深圳市深宝实业股份有限公司 2017 年半年度报告全文
If the assets have been completed in every part, but can be reached the useful status or sale-able status while
completed entirely, the borrowing expense shall be suspended for capitalization while the assets completely
finished in whole.
(3) Period of suspended
If purchasing, construction, or manufacturing process of an asset satisfying the conditions of capitalization is
suspended abnormally for over 3 months, capitalizing of borrowing expenses shall be suspended; the suspended
assets that satisfying the conditions of capitalization meets the necessary procedure of reaching predicted usable
status or sellable status, capitalizing of borrowing expenses shall be resumed. The borrowing expenses occurred
during the period of suspended shall reckon into current gains and lossesuntil the purchasing, construction, or
manufacturing process is resumed for capitalizing.
(4) Calculation for capitalization amount
Interest expenses practically occurred at the current term of a special borrowing are capitalized after deducting of
the bank saving interest of unused borrowed fund or provisional investment gains.
Capitalization amounts of common borrowings are decided by the weighted average of exceeding part of
accumulated asset expenses over the special borrowing assets multiply the capitalizing rate of common
borrowings adopted. Capitalization rates are decided by the weighted average of common borrowings.
For those expenses with discount or premium, determined the amortizable discount or premium in every fiscal
year by effective interest method, than adjusted interest amount in every period.
18. Biological assets
Classification of biological assets
Biological assets of the Company refer to the productive biological assets. Productive biological assets included
tea tree.
Biological assets are recognized when the following three conditions are fully satisfied:
(1) An enterprise owns or controls such biological assets due to the past transactions or events；
(2) It may result in the inflow of economic benefits or service potential in relation to such biological assets;
Cost of such biological assets can be reliably measured.
Initial recognition of Biological assets
The biological assets will initially measured by cost while obtained. The cost of biological asset used for
production purchased from the outside includes the purchase price, related taxes, transportation expense,
insurance premium and other charges directly attributable to the purchase of such asset. Biological asset used for
深圳市深宝实业股份有限公司 2017 年半年度报告全文
production input by investors is stated at its entry value which is calculated based on the value as stipulated in the
investment contract or agreement plus the related taxes payable. Where value stipulated in the contract or
agreement is not fair, the actual cost is fixed at fair value.
Subsequent measurement of biological assets
(1) Follow-up expenses
The cost of consumptive biological assets constituted by the actual costs of self-cultivated and constructed
consumptive biological assets occurred before closing, and the follow-up expenses such as management and
protection occurred after closing are included in the current profits and losses.
The cost of productive biological assets constituted by the actual costs of self-cultivated and constructed
productive biological assets occurred before achieving the intended production and operation goals, and the
follow-up expenses such as management and protection occurred after achieving the intended production goals are
included in the current profits and losses.
(2) Depreciation of productive biological assets
The Company adopts the straight-line method to make depreciation on schedule for the productive biological
assets achieving the intended production and operation goals. The Company determines the useful life and
estimated net residual value based on the nature and use condition of productive biological assets and the expected
realization way of related economic benefits; rechecks the nature, use condition and depreciation methods of
productive biological assets at the end of the year, and makes corresponding adjustments if there is difference with
the original estimated number.
Biological assets of the Company refer to the tea plants. For those productive biological assts that reached its
predicted productive purpose, withdrawal depreciation by average age method. The service life was determined by
the residual terms of the residual term of land use after deducting the un-maturity period (5-year) of the tea plants
with 5 percent salvage value calculated. Reviewing the service life, predicted salvage vale and depreciation
method at year-end, if there have difference between the predicted number and original estimated number or have
major changes on way of profit earning, than adjusted the service life or predicted salvage value or depreciation
method as account estimation variation.
(3) Disposal of biological assets:
When harvesting or selling consumable biological assets, the cost of biological assets after the shift of use is
stated at the carrying amount at the time of shift of use. When sold, destroyed and inventory losses occurred, the
disposal income of biological assets net of carrying amount and related taxes shall be charged to profit or loss for
the current period.
Biological assets impairment
深圳市深宝实业股份有限公司 2017 年半年度报告全文
The company inspects the consumptive biological assets and productive biological assets at least at the end of
each year, conclusive evidence indicates that if the net realizable value of consumptive biological assets and the
recoverable amount of productive biological assets are less than the book value due to natural disasters, insect
pests, animal diseases or changes in market demand, the company accrues the provision for losses or provision for
impairment of biological assets and reckons in the current profits and losses according to the balance between the
recoverable amount and the book value.
For those that the influencing factor of the depreciation of consumptive biological assets has disappeared, recover
the write-down amount and reverse within the amount of provision for losses originally accrued, and reckon the
reversed amount in the current profits and losses. The provision for impairment of productive biological assets
shouldn’t be reversed once being accrued.
19. Intangible assets
(1) Measurement, use of life and impairment testing
An intangible asset is an identifiable non-monetary asset without physical substance owned or controlled by the
Company, including land use right, technical know-how, forest tree use right, trademark use right and software
use right.
1) Measurement of intangible assets
For those intangible assets purchased from outside, the purchase value, relevant taxes and other payments
attributable to predicted purpose obtained should recognized as cost for this assts. For those purchased amount
that paid overdue exceeded the normal credit condition, owns financing natures actually, the cost should be
recognized based on the current value while purchased.
As for the intangible assets acquired from the debtor in debt restructuring for the purpose of settlement of debt, the
fair value of the intangible assets shall be based to determine the accounting value. The difference between the
carrying value of restructured debt and the fair value of the intangible assets use for settlement of debt shall be
recorded in current gains and losses.
With the preceding conditions that non-monetary assets exchange has commerce nature and the fair value of the
assets exchanged in or out can be measured reliably, the intangible assets exchanged in through non-monetary
assets exchange are accounted at the value based on the fair value of assets exchanged out, unless there is obvious
evidence showing the fair value of assets exchanged in is more reliable; for non-monetary assets exchange not
qualifying for the preceding conditions, the carrying value of assets exchanged out and related taxes payable shall
be viewed as the cost of intangible assets exchanged in, without recognition of gains and losses.
Intangible assets obtained by means of enterprise mergered under common control, recognized book-keeping
深圳市深宝实业股份有限公司 2017 年半年度报告全文
value by the book value of mergered party; Intangible assets obtained by means of enterprise mergered under
different control, recognized book-keeping value by the its fair value.
For those cost of intangible assets development internally including: the used materials, labor cost and register
charge for development; amortization for other patent and concession used and interest expense satisfying the
capitalization condition during process of development; other directly expense before reached its predated useful
purpose.
2) Subsequent measurement
Analysis and determined the service life for intangible assts while obtained. And classified into intangible assets
with limited useful life and assets without certain service life
Intangible assets with limited useful life
Those intangible assets with limited useful life are evenly amortized on straight basis from the date when they
become useable to the end of expected useful life. Particular about the estimation on intangible assets with limited
service life:
Item Predicted useful life Basis
Amortized the actual rest of life after certificate of
Land use right Certificate of land use right
land use right obtained
Proprietary technology 20-year Actual situation of the Company
forest tree use right Service life arranged Protocol agreement
trademark use right 10-year Actual situation of the Company
software use right 5-8-year Protocol agreement
At end of report term, revising will be performed on the useful life of intangible assets with limited useful life and
the methods of amortizing; if there is a differences been found with the original estimated number, corresponding
adjustment shall prevail.
Being revised, the useful life of intangible assets and amortization method at period-end shows the same as
previous
Intangible assets without certained service life
Intangible assets for which it is impossible to predict the term during which the assets can bring in economic
benefits are viewed as intangible assets with indefinite life.
Intangible assets with indefinite life are not amortized during the holding period, and useful life is re-reviewed at
the end of each accounting period. In case that it is still determined as indefinite after such re-review, then
impairment test will be conducted continuously in every accounting period.
深圳市深宝实业股份有限公司 2017 年半年度报告全文
The Company has no such intangible assets without certained service life after review.
(2) Internal accounting policies relating to research and development expenditures
1) Detail standard for classification on research stage and exploitation stage
Research stage: stage of the investigation and research activities exercising innovative-ness for new science or
technology knowledge obtained and understanding.
Exploitation stage: stage of the activities that produced new or material advance materials, devices and products
that by research results or other knowledge adoption in certain plan or design before the commercial production or
usage.
The expenditure of the research stage in R&D project internally shall reckon into current gains and losses while
occurred.
2) Standards for capitalization satisfaction of expenditure in exploitation state
Intangible assets recognized for expenditure in exploitation stage by satisfying the followed at same time:
A. Owes feasibility in technology and completed the intangible assets for useful or for sale;
B. Owes the intention for completed the intangible assets and for sale purpose;
C. Way of profit generated including: show evidence that the products generated from the intangible assets owes a
market or owes a market for itself; if the intangible assets will use internally, than show evidence of useful-ness;
(4) Possess sufficient technique, financial resources and other resources for the development of kind of intangible
assets and has the ability for used or for sale;
(5) The expenditure attributable to the exploitation stage for intangible assets could be measured reliably.
Expenditure happened in development phase not satisfying the above conditions is included in current period
gains and losses when occurs. Development expenditure previously included in gains and losses in previous
periods will not be re-recognized as assets in later periods. Capitalized development expenditure is stated in
balance sheet as development expenditure, and is transferred to intangible assets when the project is ready for
planned use.
20. Impairment of long term assets
Long term asset is judged whether for which there is indication of impairment on balance sheet date. If there is
indication of impairment, the Company would estimate its recoverable amount based on single asset; if it is
difficult to estimate the recoverable amount of single asset, then the assets group which the single asset belongs to
is based to determine the recoverable amount of the assets group.
Recoverable amount of an asset is determined at the higher of its fair value less disposal fee and present value of
its predicted future cash flow.
深圳市深宝实业股份有限公司 2017 年半年度报告全文
If measurement of recoverable amount shows that the recoverable amount of long term asset is lower than
carrying value, and then the carrying value shall be deducted to recoverable amount, with the deducted amount
recognized as impairment loss which is included in current period gains and losses, meanwhile, asset impairment
provision shall be made accordingly. Once recognized, asset impairment loss would not be reversed in future
accounting period.
Once an asset is recognized for impairment loss, its depreciation or amortization expense would be adjusted in
future periods, so as to systematically allocate the adjusted asset carrying value (after deduction of predicted net
residual value) during the remaining useful life.
Goodwill arising from business combination and intangible assets with indefinite useful life shall be tested
annually for impairment whether or not there is indication of impairment.
When goodwill impairment testing comes, book value of goodwill is allocated to asset group or combination
benefit from the synergies of the business combination. When conducting impairment test for relevant asset group
with inclusion of goodwill, in case that there is indication of impairment for such asset group, impairment test
would be firstly conducted in respect of the asset groups without inclusion of goodwill. Then, it shall calculate the
recoverable amount and determine the corresponding impairment loss as compared to its carrying value. Second,
asset group with inclusion of goodwill would be tested for impairment. If it is found after comparison between the
carrying value and recoverable amount of the asset group that the recoverable amount is less than carrying value,
the Company would recognize impairment loss for goodwill.
21. Long term prepaid expense
Amortization method
Long term prepaid expense represents the expense which the Company has occurred and shall be amortized in the
current and later periods with amortization period exceeding one year. Long term prepaid expense is amortized
during the beneficial period under straight line method.
22. Staff remuneration
(1) Short term remuneration
Employee remuneration refers to the various forms of remuneration or compensation given by the Company to
obtain the services provided by the employees or to terminate the labor relations. Employee remuneration includes
short-term remuneration, after-service benefits, dismissal benefits and other long-term employee benefits.
Short term remuneration refers to all the staff remuneration payable by the Company to its staff within 12 months
after the end of annual reporting period in which staff provides relevant services, other than post office benefit and
dismissal benefits. The Company recognizes short term remuneration payables as liabilities during the accounting
深圳市深宝实业股份有限公司 2017 年半年度报告全文
period during which staff provides services, and includes in cost and expense of relevant asset according to the
beneficial parties of such services.
(2) Post office benefits
Post office benefits refer to kinds of remuneration or benefits granted by the Company to staff for their provision
of service upon retirement or release of employment, other than short term remuneration and dismissal benefits.
Post benefit plan is categorized as defined withdraw plan.
Defined withdraw plan under post office benefit mainly represents participation into social basic pension
insurance and unemployment insurance operated by labor and social security authorities. During the accounting
period when employee provides services for the Company, the contribution calculated under defined withdraw
plan would be recognized as liabilities and included in current gains and losses or relevant asset cost.
Other than periodic payment of the aforesaid amounts in compliance with national standards, the Company is not
obliged to make other payment.
(3) Dismissal benefit
Dismissal benefit represents compensation paid to employees for release of employment before expiration or as
compensation for their willing of cut, Liabilities arising from dismiss benefit shall be included in current profit
and loss when the company cannot unilaterally withdraw from the termination plan or take redundancy offer and
when reorganize the payment of termination benefits related to the cost.
(4) Other long term staff benefits
Other long term staff benefits refers to all the other staff benefits except for short term remuneration, post office
benefit and dismissal benefit.
For other long term staff benefits satisfying conditions under defined withdraw plan, the contribution payables
shall be recognized as liabilities and included in current gains and losses or relevant asset cost during the
accounting period in which the staff provides services to the Company.
23. Accrual liability
1. Recognition standards for accrual liability
Responsibilities connected to contingent issues and satisfied all of the following conditions are recognized as
accrual liabilities:
The responsibility is a current responsibility undertaken by the Company;
Fulfilling of the responsibility may lead to financial benefit outflow;
The responsibility can be measured reliably for its value.
2. Measurement
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Accrual liabilities shall conduct initial measurement by best estimation of expenditures needed by fulfillment of
current responsibilities.
While determined the best estimation, take the risks, uncertainty and periodic value of currency that connected to
the contingent issues into consideration. For major influence from periodic value of currency, determined best
estimation after discount on future relevant cash out-flow.
Treatment for best estimation:
If the expenditure has a continuous range, and with similar possibility within the range, the best estimation should
determined by the middle value within the range, that is the average amount between the up and low limit.
If the expenditure has no continuous range, or has a continuous range but with different possibility within the
range, the possibility amount shall determined as the best estimation while single events involved by contingency;
if many events were involved by contingency, the best estimation shall be determined by various results and
relevant probability.
If the expenses for clearing of predictive liability is fully or partially compensated by a third party, and the
compensated amount can be definitely received, it is recognized separated as asset. Though the compensated
amount shall not greater than the book value of the predictive liability
24. Revenue
Whether the company needs to comply with the disclosure requirements of the particular industry
No
(1) Recognition of the income from commodity sales
When main risks and rewards attached to the ownership of goods have been transferred to the buyer, reserved
neither continuous management power nor effective control over the goods, incoming payment can be measured
reliably, relative financial benefit possibly inflow to the company, cost occurred or will occur can be reliably
measured, sales income of goods is recognized.
As for main sales in the Company, according to the arrival of acceptance period agreed in the contract, income
shall be recognized after the period expired
(2) Basis on use right income for transaction assets
Financial benefit attached to the contract is possibly inflow to the company; Overall income of the contract can be
measured reliably. Determined the use right income for transaction assts respectively as followed:
1) Amount of interest income: determined by the time and effective interest rate of the currency capital used by
other people.
深圳市深宝实业股份有限公司 2017 年半年度报告全文
2) Amount of income from use: determined by the charge time and calculation method agreed in the relevant
contract or agreement.
25. Government Grants
(1) Determination basis and accounting for government grants related to assets
1) Type
Governments grants of the Company refer to the monetary and non-monetary assets obtained from government
for free, and are divided into those related to assets and others related to revenues.
Government subsidies related to assets refer to those obtained by the Company and used for purchase or
construction of or otherwise to form long-term assets. Government subsidies related to revenue refer to those other
than government subsidies related to assets.
2) Recognition of government subsidies
At end of the period, if there is evidence show that the Company qualified relevant condition of fiscal supporting
polices and such supporting funds are predicted to obtained, than recognized the amount receivable as government
subsidy. After that, government subsidy shall recognize while actually received.
Government subsidies in the form of monetary assets are stated at the amount received or receivable. Government
subsidies in the form of non-monetary assets are measured at fair value; if fair value cannot be obtained, a
nominal amount (RMB1) is used. Government subsidies measured at nominal amount is recognized immediately
in profit or loss for the current period.
3) Accounting method
A. The government subsidy related to the assets should offset against the book value
of underlying assets or be confirmed as deferred income. When the government subsidy related to the assets is
confirmed as deferred income, it should be included in the profits and losses by stages within the service life of
underlying assets by reasonable and systematic methods. The government subsidy measured by nominal amount
should be directly included in the current profits and losses.
If the underlying assets are sold, transferred, scrapped or destroyed before the end of the service life, the balance
of relevant deferred income that has not been allocated should be transferred to the current profits and losses of
assets disposal.
The government subsidy related to the daily activities of the enterprise should be included in other income or
offset the relevant costs in accordance with the essence of economic business.
B. The finance directly appropriates the interest subsidy funds to the enterprises, and the enterprises should offset
the related borrowing costs with the corresponding interest subsidy.
C. If the government subsidy that has been confirmed needs to be returned, the accounting treatment should be
carried out according to below provisions in the current period in need of return:
深圳市深宝实业股份有限公司 2017 年半年度报告全文
a. For those to offset the book value of underlying assets in the initial recognition, adjust the book value of
the assets.
b. For those having related deferred income, offset the book value of relevant deferred income, and include
the excess in the current profits and losses;
c. Other circumstances should be directly included in the current profits and losses.
(2) The judgment basis and accounting treatment method of income-related governmental subsidy
The income-related government subsidy should handle accounting treatment in accordance with the following
provisions:
1) Those that are used to compensate the relevant costs or losses of the enterprise in the subsequent period are
recognized as deferred income and included in the current profits or losses or offset the relevant costs in the
period of confirming the relevant costs or losses;
2) Those that are used to compensate the occurred relevant costs or losses of the enterprise are directly included in
the current profits and losses or offset the relevant costs.
For government subsidies that contain both asset-related parts and income-related parts are necessary to
distinguish the different parts and handle the accounting treatment separately; those being difficult to be
distinguished should be classified as the income-related government subsidies as a whole.
26. Deferred income tax assets and deferred income tax liabilities
Deferred income tax assets and liabilities are measured and recognized based on the difference (temporary
difference) between the taxation bases of the assets and liabilities and their carrying value. As of the balance sheet
date, deferred income tax assets and liabilities are measured at the tax rate applicable during the period in which
the assets are recovered or liabilities are settled.
(1) Reference for recognition of deferred income tax assets
Deferred income tax asset arising from deductible temporary difference is recognized to the extent of assessable
income which is likely to acquire to offset deductible temporary difference and for which deductible losses and
tax credit for subsequent years can be carried forward. However, deferred income tax assets arising from initial
measurement of assets or liabilities in transactions with the following characteristics would not be recognized:
(1)the transaction is not business combination; (2)occurrence of the transaction would neither affect accounting
profit nor affect assessable income or deductible loss.
For deductible temporary difference relating to investment in associates, the Company would recognize deferred
income tax assets accordingly if the following conditions are met: temporary difference is likely to be reversed in
foreseeable future and it is likely to acquire assessable income against which deductible temporary difference is
utilized.
(2) Basis for determination of deferred income tax liabilities
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Assessable temporary difference which should be paid while not paid yet for the current and previous periods is
recognized as deferred income tax liabilities, excluding:
1) Temporary difference arising from initial measurement of goodwill;
2) Transaction or issue arising from non business combination, and its occurrence would neither affect accounting
profit, nor affect temporary difference arising from assessable income (or deductible loss);
3) For assessable temporary difference relating to investments in subsidiary or associate, timing for reversal of the
temporary difference can be controlled and it is likely that the difference would not be reversed in foreseeable
future.
(3) Deferred tax assets and liabilities are offset if all the following conditions are met.
1) An enterprise has the legal rights to settle the income tax assets and income tax liabilities for the current period
by net amount;
2) They relate to income taxes levied by the same tax authority on either the taxable entity has a legally
enforceable right or set off current income tax assets against current income tax liabilities, and different taxable
entities which either intend to settle the current income tax liabilities and assets on a net basis, or to realize the
assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax
liabilities or assets are expected to be settled or recovered.
27. Lease
(1) Accounting for operating lease
Accounting for operating lease
1) The rental fee paid for renting the properties by the company are amortized by the straight-line method and
reckoned in the current expenses throughout the lease term without deducting rent-free period. The initial direct
costs related to the lease transactions paid by the company are reckoned in the current expenses.
When the lessor undertakes the expenses related to the lease that should be undertaken by the company, the
company shall deduct the expenses from the total rental costs, share by the deducted rental costs during the lease
term, and reckon in the current expenses.
2) Rental obtained from assets leasing, during the whole leasing period without rent-free period excluded, shall be
amortized by straight-line method and recognized as leasing revenue. The initial direct costs paid with leasing
transaction concerned are reckoned into current expenditure; the amount is larger is capitalized when incurred,
and accounted for as profit or loss for the current period on the same basis as recognition of rental income over the
entire lease period.
When the company undertakes the expenses related to the lease that should be undertaken by the lessor, the
深圳市深宝实业股份有限公司 2017 年半年度报告全文
company shall deduct the expenses from the total rental income, and distribute by the deducted rental costs during
the lease term.
2) Accounting for financing lease
Accounting for financing lease
1) Assets lease-in by financing: On the beginning date of the lease, the entry value of leased asset shall be at the
lower of the fair value of the leased asset and the present value of minimum lease payment at the beginning date
of the lease. Minimum lease payment shall be the entry value of long-term accounts payable, with difference
recognized as unrecognized financing expenses. The Company had no financing lease.
Unrecognized financing expenses shall be reckoned in financial expenses and amortized and using effective
interest method during the leasing period.
2) Finance leased assets: on the lease commencement date, the company affirms the balance among the finance
lease receivables, the sum of unguaranteed residual value and its present value as the unrealized financing income,
and recognizes it as the rental income during the period of receiving the rent. For the initial direct costs related to
the rental transaction, the company reckons in the initial measurement of the finance lease receivables, and
reduces the amount of income confirmed in the lease term.
28. Changes of important accounting policy and estimation
(1) Changes of major accounting policies
√ Applicable □ Not applicable
Content and reasons Approval procedure Note
In accordance with the revised
Impact on financial statement: interest
“Accounting Standards for Business
expenditure from financial expenses
Enterprise No.16- Government subsidy” th th
Approved by the 11 session of 9 BOD reduced 383,100.00 Yuan, and
(Cai Kuai [2017] No.15), the financial
non-operating revenue reduced 383,100.00
expenses will reduced by discount loans,
Yuan.
and excluded in the non-operating revenue
The Ministry of Finance promulgated the Accounting Standards for Business Enterprises No. 16 - Government
Subsidies in 2017 which took effect from June 12, 2017. The Company handled the governmental subsidies
existed before January 1, 2017 by adopting prospective application, and adjusted the newly increased
governmental subsidies from January 1, 2017 to the implementation date of this Standard by this Standard.
(2) Changes of important accounting estimate
□ Applicable √ Not applicable
深圳市深宝实业股份有限公司 2017 年半年度报告全文
VI. Taxes
1. Type of tax and rate for main applicable tax
Taxes Basis Rate
Service income from goods sales and
VAT 17%, 11%, 6%, 5%, 3%
taxable sales
Urban maintenance and construction tax Turnover tax payable 5%, 7%
Corporate income tax Taxable income 25%
Educational surtax Turnover tax payable 5%
Rate of income tax for different taxpaying body:
Taxpaying body Rate of income tax
The Company 25%
Shenbao Huacheng 25%
Including: Shantou Branch of Shenbao Huacheng 25%
Wuyuan Jufangyong 25%
Shenbao Sanjing 25%
Huizhou Shenbao Technologies 25%
Huizhou Shenbao Food 25%
Shenbao Properties 25%
Shenbao Industrial Trading & Developmen 25%
Hangzhou Jufangyong 25%
Shenbao Yuxing 25%
Shenbao Technology Center 25%
Fuhaitang Tea Ecology 25%
Chunshi Network 25%
Shenshenbao Investment 25%
Shenshenbao Tea Culture 25%
Yunnan Supply Chain 25%
Jufangyong Trading 25%
Shenbao Rock Tea 25%
Pu’er Tea Exchange Center 25%
2. Tax preferential and basis
Wuyuan Jufangyong, a wholly-owned subsidiary of the Company, has been granted High-tech Enterprise
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Certification (No. GF201436000182) jointly promulgated by Jiangxi Provincial Department of Science &
Technology, Shenzhen Finance Committee, Finance Bureau of Jiangxi Province, Jiangxi Municipal Bureau of
State Taxation and Local Taxation as at the date of 8 October 2014 with a valid term of 3 years. With relevant
preferential policies adopted by the State in favor of high-tech enterprises, all qualified high-tech enterprises are
able to enjoy the lower income tax rate of 15% for collection of enterprise income tax, capable for 3 years
commencing from the year when they are deemed as qualified. Wuyuan Jufangyong has favored from this
preferential policy from 2014 to 2016. Currently, Wuyuan Ju Fang Yong still in the process of identification of
high-tech enterprise.
VII. Annotation to main items of consolidated financial statements
1. Monetary fund
In RMB
Item Closing balance Opening balance
268,174.40 207,519.80
Cash on hand
205,219,698.39 358,356,723.03
Cash in bank
205,487,872.79 358,564,242.83
Total
Other note: Nil
2. Financial assets measured by fair value and with the variation recorded into current gains/losses
In RMB
Item Closing balance Opening balance
Tradable financial assets 2,260,176.36 3,250,938.60
Equity investment 2,260,176.36 3,250,938.60
Total 2,260,176.36 3,250,938.60
Other explanation: Closing balance refers to the 258,011 shares of A-stock under the name of “CBC-A”
3. Account receivable
(1) Account receivable classified according to types
In RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Type Book
Accrual Accrual Book value
Amount Ratio Amount value Amount Ratio Amount
Ratio Ratio
Account receivable 72,932,9 890,273. 72,042,63 63,476, 893,812.5 62,582,867.
withdrawal bad debt 78.34% 1.22% 75.89% 1.41%
provision by group of 05.57 13 2.44 680.17 4
深圳市深宝实业股份有限公司 2017 年半年度报告全文
credit risk
characteristics
Account receivable
with single minor
amount but 20,164,6 20,164,6 20,164, 20,164,69
21.66% 100.00% 24.11% 100.00%
withdrawal bad debt 93.05 93.05 693.05 3.05
provision for single
item
93,097,5 21,054,9 72,042,63 83,641, 21,058,50 62,582,867.
Total 100.00% 22.62% 100.00% 25.18%
98.62 66.18 2.44 373.22 5.59
Account receivable with single significant amount and withdrawal bad debt provision separately at period end:
□Applicable √ Not applicable
Account receivable with bad debt provision withdrawal by age analysis in group:
√ Applicable □ Not applicable
In RMB
Closing balance
Age
Account receivable Bad debt reserve Accrual ratio
Subitem of within one year
Within 1 year 63,901,750.67
1-2 years 2,815,421.80 140,771.09 5.00%
2-3 years 3,657,158.32 365,715.82 10.00%
Over 3 years 2,558,574.78 383,786.22 15.00%
3-4years 132,860.76 19,929.12 15.00%
4-5 years 182,003.85 27,300.58 15.00%
5years above 2,243,710.17 336,556.52 15.00%
Total 72,932,905.57 890,273.13 1.22%
Explanation on combination determines: Nil
In combination, withdrawal proportion of bad debt provision based on balance proportion for account receivable
□ Applicable √ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods for account receivable:
Nil
(2) Bad debt provision accrual collected or switch back
Bad debt provision accrual of RMB 0; collected or switch back bad debt provision of RMB 3,539.41.
Major bad debt provision collected or switch back:
In RMB
Name Amount Method
N/A
Total
深圳市深宝实业股份有限公司 2017 年半年度报告全文
(3) Account receivable actual charge off in the Period
In RMB
Item Amount written off
Written-off for the major receivable:
In RMB
Whether the money
Nature of accounts Performance written is generated by
Name Amount written off Reason written off
receivable off procedure related party
transactions
Written-off for the receivable: Nil
(4) Top 5 receivables at ending balance by arrears party
Proportion in total
Name Closing balance receivables at closing Bad debt provision accrual
balance (%)
Customer 1 5,824,108.00 6.26 ---
Customer 2 5,404,196.60 5.80 ---
Customer 3 5,163,160.00 5.55 ---
Customer 4 4,166,420.22 4.48 ---
Customer 5 3,454,727.20 3.70 ---
Total 24,012,612.02 25.79 ---
(5) Account receivable derecognition due to financial assets transfer
Nil
(6) Assets and liabilities resulted by account receivable transfer and continues involvement
Nil
Other note: Nil
4. Account paid in advance
(1) Aging analysis
In RMB
Closing balance Opening balance
Age
Amount Ratio Amount Ratio
Within 1 year 13,117,213.53 91.87% 5,357,620.52 84.75%
1-2years 1,038,065.38 7.27% 826,840.85 13.08%
深圳市深宝实业股份有限公司 2017 年半年度报告全文
2-3years 17,182.51 0.12% 31,530.94 0.50%
Over 3 years 105,946.75 0.74% 105,835.33 1.67%
Total 14,278,408.17 -- 6,321,827.64 --
Reasons for significant repayment with over one year age without settle: Nil
(2) Top 5 accounts paid in advance at closing balance collected by objects
In RMB
Ratio in total account paid in advance
Name Closing amount
(%)
Supplier 1 4,689,624.09 32.84
Supplier 2 1,446,776.95 10.13
Supplier 3 1,120,512.82 7.85
Supplier 4 860,160.00 6.02
Supplier 5 767,728.37 5.37
Total 8,884,802.23 62.21
Other note: Nil
5. Other account receivable
(1) Other account receivable classified according to types
In RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Type Book
Accrual Accrual Book value
Amount Ratio Amount value Amount Ratio Amount
ratio ratio
Other account
receivable with
single major amount 19,745,3 8,839,24 10,906,13 19,540, 8,634,484 10,906,134.
37.10% 44.77% 39.73% 44.19%
and withdrawal bad 82.18 7.89 4.29 618.68 .39
debt provision for
single item
Other account
receivable
withdrawal bad debt 15,904,1 318,478. 15,585,64 12,066, 329,042.6 11,737,315.
29.88% 2.00% 24.53% 2.73%
provision by group of 26.04 43 7.61 358.31 6
credit risk
characteristics
Other account
receivable with
single minor amount 17,577,7 17,577,7 17,577, 17,577,79
33.02% 100.00% 35.74% 100.00%
but withdrawal bad 95.82 95.82 795.82 5.82
debt provision for
single item
53,227,3 26,735,5 26,491,78 49,184, 26,541,32 22,643,449.
Total 100.00% 50.23% 100.00% 53.96%
04.04 22.14 1.90 772.81 2.87
Other receivable with single significant amount and withdrawal bad debt provision separately at end of period:
√ Applicable □ Not applicable
深圳市深宝实业股份有限公司 2017 年半年度报告全文
In RMB
Account Closing balance
receivable(units) Account receivable Bad debt reserve Accrual ratio Reasons
Changzhou Shenbao Estimated recoverable
Chacang E-commence 19,745,382.18 8,839,247.89 44.77% amount is lower than the
Co., Ltd. book balance
Total 19,745,382.18 8,839,247.89 -- --
Other receivable with bad debt provision withdrawal by age analysis in group:
√ Applicable □ Not applicable
In RMB
Closing balance
Age
Other accounts receivable Bad debt provision Accrual ratio
Subitem of within one year
Within 1 year 12,869,383.83 0.00
1-2 years 1,273,075.20 63,653.76 5.00%
2-3 years 188,507.50 18,850.75 10.00%
Over 3 years 1,573,159.51 235,973.92 15.00%
3-4 years 748,187.20 112,228.08 15.00%
4-5 years 209,434.84 31,415.22 15.00%
5 years above 615,537.47 92,330.62 15.00%
Total 15,904,126.04 318,478.43 2.00%
Explanations on combination determine:
Nil
In combination, withdrawal proportion of bad debt provision based on balance proportion for other account
receivable:
□ Applicable √ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods for other account receivable:
□ Applicable √ Not applicable
(2) Bad debt provision accrual collected or switch back
Bad debt provision accrual was 204,763.50 Yuan; the amount collected or switches back amounting to 10,564.23
Yuan.
Major bad debt provision collected or switch back:
In RMB
Name Amount Method
Nil
深圳市深宝实业股份有限公司 2017 年半年度报告全文
(3) Other receivables actually written-off during the reporting period
In RMB
Name Amount
Other major receivables actually written-off: Nil
In RMB
Whether the money
Nature of other Performance write is generated by
Unit name Write off amount Write off reason
receivables off procedure related party
transactions
Other note: Nil
(4) Nature classification for other receivables
In RMB
Item Closing book balance Opening book balance
Margin and deposit 4,227,675.52 3,683,788.00
VAT rebates receivables 296,913.30 454,807.35
Intercourse funds and other 48,702,715.22 45,046,177.46
Total 53,227,304.04 49,184,772.81
(5) Top five units in other account receivable at closing balance
In RMB
Ratio in total other
Bad debt provision
Name Amount nature Closing balance Age account receivable at
Closing balance
closing balance
Changzhou Shenbao
Chacang Intercourse funds 19,745,382.18 1-3 years and above 37.10% 8,839,247.89
e-commerce Limited
Shichu Mingmen Intercourse funds 2,006,499.85 Within 1 year 3.77%
Hangzhou Youyu
Food Shop in Pay rent for another 1,600,000.00 Within 1 year 3.01%
Shangcheng District
Hangzhou Xiaoshan
Within 1 year and
International Airport Margin 1,343,786.53 2.52% 13,875.00
1-2 years
Co., Ltd.
Zhejiang Shishang
Qitian Culture Pay rent for another 1,000,000.00 Within 1 year 1.88%
Creativity Co., Ltd.
Total -- 25,695,668.56 -- 48.28% 8,853,122.89
深圳市深宝实业股份有限公司 2017 年半年度报告全文
(6) Account receivables related to government subsidies
In RMB
Government assistance Estimated time, amount
Unit name Closing balance Closing age
project name and basis
Nil
(7) Other receivable for termination of confirmation due to the transfer of financial assets
Nil
(8) The amount of assets and liabilities that are transferred other receivable and continued to be involved
Nil
Other note: Nil
6. Inventory
Whether the company needs to comply with the disclosure requirements of the real estate industry
No
(1) Types
In RMB
Closing balance Opening balance
Items Falling price Falling price
Book balance Book value Book balance Book value
reserves reserves
Raw materials 71,829,063.76 3,869,665.51 67,959,398.25 65,391,782.65 3,869,665.51 61,522,117.14
Goods in process 33,280,358.26 328,209.99 32,952,148.27 28,856,613.35 328,209.99 28,528,403.36
Finished goods 34,390,824.94 1,328,404.27 33,062,420.67 40,266,937.30 1,774,575.14 38,492,362.16
Goods in transit 10,260,276.65 10,260,276.65 6,509,501.82 6,509,501.82
Materials processed
5,384,608.18 5,290,502.32 94,105.86 5,341,566.56 5,290,502.32 51,064.24
on commission
Wrappage 5,796,783.35 649,825.76 5,146,957.59 6,497,436.43 649,825.76 5,847,610.67
Total 160,941,915.14 11,466,607.85 149,475,307.29 152,863,838.11 11,912,778.72 140,951,059.39
Does the Company comply with the disclosure requirement of “Information Disclosure Guidelines of Shenzhen Stock Exchange
No.4 – Listed Companies Engaged in Seed Industry and Planting Business” or not
No
(2) Inventory falling price reserves
In RMB
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Current amount increased Current amount decreased
Opening
Type Switch back/ Closing balance
balance Accrual Other Other
Written off
Raw materials 3,869,665.51 3,869,665.51
Goods in process 328,209.99 328,209.99
Finished goods 1,774,575.14 446,170.87 1,328,404.27
Work in process-outsourced 5,290,502.32 5,290,502.32
Wrappage 649,825.76 649,825.76
Total 11,912,778.72 446,170.87 11,466,607.85
(3) Explanation on inventories with capitalization of borrowing costs included at ending balance
Nil
(4) Assets unsettled formed by construction contract which has completed at period-end
In RMB
Item Amount
Other note: Nil
7. Other current assets
In RMB
Item Closing balance Opening balance
VAT input tax ready for deduction 1,856,403.28 1,949,954.58
Financial products held to maturity within
90,000,000.00 9,350,000.00
one year
Total 91,856,403.28 11,299,954.58
Other note: Nil
8. Financial assets available for sale
(1) Financial assets available for sale
In RMB
Closing balance Opening balance
Item
Depreciation Depreciation Depreciation
Book balance Book balance Book balance
reserves reserves reserves
Instrument equity
17,537,500.00 17,480,000.00 57,500.00 17,537,500.00 17,480,000.00 57,500.00
available for sale:
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Measured by cost 17,537,500.00 17,480,000.00 57,500.00 17,537,500.00 17,480,000.00 57,500.00
Total 17,537,500.00 17,480,000.00 57,500.00 17,537,500.00 17,480,000.00 57,500.00
(2) Financial assets available for sale measured by fair value at period-end
In RMB
Instrument equity Instrument debt available
Type Total
available for sale for sale
Nil
(3) Financial assets available for sale measured by cost at period-end
In RMB
Book balance Depreciation reserves Ratio of
share-holdi Current
Investee
Opening Current Current Closing Opening Current Current Closing ng in cash
unit
balance increased decreased balance balance increased decreased balance invested dividend
entity
Shenzhen
Sanjiu 2,480,000. 2,480,000. 2,480,000. 2,480,000.
Weitai 0.95%
Capsules 00 00 00
Co., Ltd.
Shenzhen
Tianji
Photoelect
ric 15,000,000 15,000,000 15,000,000 15,000,000
Technolog 3.77%
y .00 .00 .00 .00
Industrial
Co., Ltd.
*1
Beijing
Tiantan
57,500.00 57,500.00
Co., Ltd.
*2
17,537,500 17,537,500 17,480,000 17,480,000
Total --
.00 .00 .00 .00
(4) Change of financial assets depreciation for sale during reporting period
In RMB
Instrument equity Instrument debt
Type Total
available for sale available for sale
Balance of impairment
17,480,000.00 17,480,000.00
accrual at period-begin
Balance of impairment
17,480,000.00 17,480,000.00
accrual at period-end
深圳市深宝实业股份有限公司 2017 年半年度报告全文
(5) Fair value of the available-for-sale equity instrument drops significantly or not contemporarily without
depreciation reserves accrued
In RMB
Decline range of
Equity instrume Times continued
fair value Amount accrual Rasons for
nts project Investment cost Ending fair value to declined
compare with the for impairment un-accurla l
available for sale (Monthe)
cost
Other note: Nil
9. Long-term equity investment
In RMB
-,+ in the Period
Ending
Other Cash
Investme balance
Opening Additiona comprehe dividend Closing
Investee nt gains Other of
book l Capital nsive or profit Impairme book
unit recognize equity Other impairme
balance investmen reduction income announce nt accrual balance
d under change nt
t adjustmen d to
equity provision
t issued
I. Joint venture
II. Associated enterprise
Shenzhen
Shenbao
(Xinmin) 2,870,000 2,870,000 2,870,000
Foods .00 .00 .00
Co.,
Ltd*1
Changzho
u
Shenbao
Chacang 0.00 0.00
E-comme
nce Co.,
Ltd *2
Shenzhen
Shenbao
(Liaoyuan
) 57,628.53 57,628.53 57,628.53
Industrial
Co.,
Ltd.*1
Shenzhen
Shenbao
Ma Nan 1,057,570 1,055,583
-1,986.37
Bio-techn .23 .86
ology
Co., Ltd.
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Shichu
Mingmen 0.00 0.00
*3
Guangzho
u
Shenbao 4,808,911 -157,257. 4,651,653
Mendao .40 67 .73
Tea Co.,
Ltd.
8,794,110 -159,244. 8,634,866 2,927,628
Subtotal
.16 04 .12 .53
8,794,110 -159,244. 8,634,866 2,927,628
Total
.16 04 .12 .53
Other explanation
* 1: The two companies have established for a long time but have been revoked business license now, and
have been made provision for impairment in full due to not being liquidated.
* 2: Check and calculate the long-term equity investment of Shenzhen Co., Ltd. by the equity method, due to
the serious losses of Changzhou Shenbao Tea Warehousing E-commerce Co., Ltd., the book balance of its
long-term equity investment is zero.
* 3: Check and calculate the long-term equity investment of Shenzhen Shichumingmen Restaurant
Management Co., Ltd. by the equity method, due to the serious losses of Shenzhen Shichumingmen Restaurant
Management Co., Ltd., the book balance of its long-term equity investment is zero.
10. Investment real estate
(1) Investment real estate measured at cost
√ Applicable □ Not applicable
In RMB
Item House and building Land use right Construction in process Total
I. Total original book
value
1． Opening balance 19,834,643.51 19,834,643.51
2． Current amount
increased
(1) Purchase
(2) Stock\fixed assets
\Transfer-in from
construction in process
(3) Increased by
combination
3． Current amount
decreased
深圳市深宝实业股份有限公司 2017 年半年度报告全文
(1) Disposal
(2) Other transfer-out
4． Closing balance 19,834,643.51 19,834,643.51
II. accumulated
depreciation and
accumulated
amortization
1． Opening balance 961,778.15 961,778.15
2． Current amount
235,795.16 235,795.16
increased
(1) Accrual or
235,795.16 235,795.16
amortization
3． Current amount
decreased
(1) Disposal
(2) Other transfer-out
4． Closing balance 1,197,573.31 1,197,573.31
III. impairment provision
1． Opening balance
2． Current amount
increased
(1) Accrual
3． Current amount
decreased
(1) Disposal
(2) Other transfer-out
4． Closing balance
IV. Book value Total
1. Ending book value 18,637,070.20 18,637,070.20
2.Openingbook value 18,872,865.36 18,872,865.36
(2) Investment real estate measured by fair value
□ Applicable √ Not applicable
(3) Certificate of title un-completed
In RMB
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Item Book value Reasons
Other note: Nil
11. Fixed assets
(1) Fixed assets
In RMB
Machinery Transportation
Item House & buildings Other equipment Total
equipment facilities
I. Total original book
value
1. Opening balance 256,205,988.92 233,505,726.87 7,402,854.55 15,961,444.60 513,076,014.94
2. Current amount
48,653.88 1,126,959.08 91,948.71 291,479.22 1,559,040.89
increased
(1) Purchase 48,653.88 1,126,959.08 91,948.71 291,479.22 1,559,040.89
(2) Transfer-in from
construction in
process
(3) Increased by
combination
3. Current amount
378,430.00 218,644.10 597,074.10
decreased
(1) Disposal or scrap 378,430.00 218,644.10 597,074.10
4. Closing balance 256,254,642.80 234,632,685.95 7,116,373.26 16,034,279.72 514,037,981.73
II. accumulated
depreciation
1. Opening balance 29,168,595.82 133,139,998.42 4,372,504.62 7,736,906.67 174,418,005.53
2. Current amount
3,878,822.46 5,792,745.41 298,217.57 755,419.02 10,725,204.46
increased
(1) Accrual 3,878,822.46 5,792,745.41 298,217.57 755,419.02 10,725,204.46
3. Current amount
347,724.13 195,038.98 542,763.11
decreased
(1) Disposal or scrap 347,724.13 195,038.98 542,763.11
4. Closing balance 33,047,418.28 138,932,743.83 4,322,998.06 8,297,286.71 184,600,446.88
III. impairment
provision
1. Opening balance 1,355,290.18 4,288,951.37 5,644,241.55
2. Current amount
increased
(1) Accrual
3. Current amount
decreased
深圳市深宝实业股份有限公司 2017 年半年度报告全文
(1) Disposal or scrap
4. Closing balance 1,355,290.18 4,288,951.37 5,644,241.55
IV. Book value Total
1. Ending book
221,851,934.34 91,410,990.75 2,793,375.20 7,736,993.01 323,793,293.30
value
2.Openingbook
225,682,102.92 96,076,777.08 3,030,349.93 8,224,537.93 333,013,767.86
value
(2) Temporarily idle fixed assets
In RMB
Accumulated Provision for
Item Original book value Book value Note
depreciation impairment
Nil
(3) Fixed assets acquired by financing lease
In RMB
Accumulated
Item Original book value Provision for impairment Book value
depreciation
Nil
(4) Fixed assets acquired by operating lease
In RMB
Item Ending book value
Nil
(5) Certificate of title un-completed
In RMB
Item Book value Reasons
House and building 1,744,810.75 In progress
Other note: Nil
12. Construction in process
(1) Construction in process
In RMB
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Closing balance Opening balance
Item
Depreciation Depreciation
Book balance Book value Book balance Book value
reserves reserves
Shenbao Plaza
3,842,333.64 3,842,333.64 3,842,333.64 3,842,333.64
project
Other 957,764.08 903,189.74 54,574.34 957,764.08 903,189.74 54,574.34
Total 4,800,097.72 4,745,523.38 54,574.34 4,800,097.72 4,745,523.38 54,574.34
(2) Changes of major construction in process
In RMB
Includin
Proporti g:
Accumul
Other on of amount Interest
ated
Transfer- decrease Closing project of capitaliz Capital
Opening Current
Projects Budget in fixed Progress capitaliz
balance increased
assets d in the balance investme capitaliz ation rate resources
ation of
Period nt in ation of in Period
interest
budget interest
in Period
Nil
(3) The provision for impairment of construction projects
In RMB
Item Provision amount Reason
Other note: Nil
13. Productive biological assets
(1) Productive biological assets measured by cost
√ applicable □ not applicable
In RMB
Item Plant Livestock Forestry Fisheries Total
Tea tree
I. Total original book
value
1. Opening balance 436,156.00 436,156.00
2. Current amount
increased
(1) Purchase
(2)self-cultivate
深圳市深宝实业股份有限公司 2017 年半年度报告全文
3. Current amount
decreased
(1) Disposal
(2) Other
4. Closing balance 436,156.00 436,156.00
II. accumulated
depreciation
1. Opening balance 9,692.36 9,692.36
2. Current amount
4,846.18 4,846.18
increased
(1) Accrual 4,846.18 4,846.18
3. Current amount
decreased
(1) Disposal
(2) Other
4. Closing balance 14,538.54 14,538.54
III. impairment
provision
1. Opening balance
2. Current amount
increased
(1) Accrual
3. Current amount
decreased
(1) Disposal
(2) Other
4. Closing balance
IV. Book value Total
1. Ending book
421,617.46 421,617.46
value
2.Openingbook
426,463.64 426,463.64
value
(2) Productive biological assets measured by fair value
□ Applicable √ Not applicable
深圳市深宝实业股份有限公司 2017 年半年度报告全文
14. Intangible assets
(1) Intangible assets
In RMB
Item Land using right Patent Un-patent tech Other Total
I. Total original book
value
1. Opening balance 172,549,352.87 46,260,818.89 3,690,648.83 22,871,704.98 245,372,525.57
2. Current amount
increased
Purchase
(2) internal R&D
(3) Increased by
combination
3. Current amount
decreased
(1) Disposal
4. Closing balance 172,549,352.87 46,260,818.89 3,690,648.83 22,871,704.98 245,372,525.57
II. accumulated
depreciation
1. Opening balance 25,205,877.83 20,292,151.69 1,000,768.43 3,195,374.04 49,694,171.99
2. Current amount
1,752,219.67 1,302,083.56 249,795.74 221,795.07 3,525,894.04
increased
(1) Accrual 1,752,219.67 1,302,083.56 249,795.74 221,795.07 3,525,894.04
3. Current amount
decreased
(1) Disposal
4. Closing balance 26,958,097.50 21,594,235.25 1,250,564.17 3,417,169.11 53,220,066.03
III. impairment
provision
1. Opening balance
2. Current amount
increased
(1) Accrual
3. Current amount
decreased
(1) Accrual
深圳市深宝实业股份有限公司 2017 年半年度报告全文
4. Closing balance
IV. Book value Total
1. Ending book
145,591,255.37 24,666,583.64 2,440,084.66 19,454,535.87 192,152,459.54
value
2.Openingbook
147,343,475.04 25,968,667.20 2,689,880.40 19,676,330.94 195,678,353.58
value
Ratio of the intangible assets from internal R&D in balance of intangible assets at period-end was 0.60%.
(2) Land use rights without certificate of ownership
In RMB
Reason of not complete the property
Item Book value
certificate
Forest tenure of Shenbao Rock Tea 11,966,959.82 In procedure
Other note: Nil
15. Development expense
In RMB
Opening Closing
Item Amount of current increase Amount of current decrease
balance balance
Project I 188,849.68 188,849.68
Project II 202,490.87 202,490.87
Project III 72,760.75 72,760.75
Project IV 132,428.66 132,428.66
Project V 92,785.20 92,785.20
Project VI 189,651.02 189,651.02
Project VII 102,509.15 102,509.15
Project VIII 180,679.13 180,679.13
Total 1,162,154.46 1,162,154.46
Other note: Nil
16. Goodwill
(1) Original book value of goodwill
In RMB
The invested
Opening balance Increase during the year Decreased during the year Closing balance
entity or items
Yunnan Tea
673,940.32 673,940.32
Trading Center
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Total 673,940.32 673,940.32
(2) Goodwill depreciation reserves
In RMB
The invested
Opening balance Increase during the year Decreased during the year Closing balance
entity or items
Explain process of impairment test, index and determination: Nil
Other note:
Hangzhou Ju Fang Yong, a subsidiary of the Company, invested and purchased 15.00% equity stake of Pu'er Tea
Exchange held by Yunnan Hengfengxiang Investment Co., Ltd. in May 2016. After the completion of the
purchase, the Company has control right to Pu'er Tea Exchange. The balance between the combined cost and the
fair value of net identifiable assets on consolidated date formed goodwill of RMB 673,940.32.
17. Long-term deferred expense
In RMB
Item Opening balance Current increased Current amortization Other decreased Closing balance
Decoration charge 6,976,452.89 1,258,048.03 1,641,194.86 6,593,306.06
Affiliated project of
resident area in 699,319.22 154,681.60 544,637.62
Jufangyong Wuyuan
Reform of tea park
22,666.65 7,999.99 14,666.66
in Wuyuan
Reform project of
1,680,033.10 175,000.30 380,122.39 1,474,911.01
warehouse
Lease of workshop
225,350.00 135,210.00 90,140.00
and office building
Other 3,708,367.73 24,255.99 477,994.52 3,254,629.20
Total 13,312,189.59 1,457,304.32 2,797,203.36 11,972,290.55
Other note: Nil
18. Deferred income tax assets and deferred income tax liability
(1) Deferred income tax assets without offset
In RMB
Closing balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
differences assets differences assets
Impairment provision for 19,141,605.62 4,881,746.94 19,564,737.19 4,830,556.06
深圳市深宝实业股份有限公司 2017 年半年度报告全文
assets
Deferred income 570,769.24 142,692.31 570,769.24 142,692.31
Total 19,712,374.86 5,024,439.25 20,135,506.43 4,973,248.37
(2) Deferred income tax liability without offset
In RMB
Closing balance Opening balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
differences liability differences liability
Asset evaluation
increment of enterprise
4,293,505.03 1,073,376.26 4,445,245.52 1,111,311.38
combine under different
control
Change of fair value for
the financial assets 1,179,110.27 294,777.57 2,169,872.52 542,468.13
available for sale
Total 5,472,615.30 1,368,153.83 6,615,118.04 1,653,779.51
(3) Deferred income tax assets and deferred income tax liabilities listed after off-set
In RMB
Ending balance of Trade-off between the Opening balance of
Trade-off between the
deferred income tax deferred income tax deferred income tax
Item deferred income tax
assets or liabilities after assets and liabilities at assets or liabilities after
assets and liabilities
off-set period-begin off-set
Deferred income tax
5,024,439.25 4,973,248.37
assets
Deferred income tax
1,368,153.83 1,653,779.51
liabilities
(4) Details of uncertain deferred income tax assets
In RMB
Item Closing balance Opening balance
Deductible temporary differences 70,322,131.88 70,745,263.45
Losses deductible 73,822,026.16 55,242,461.48
Total 144,144,158.04 125,987,724.93
(5) Deductible losses of un-recognized deferred income tax assets expired on the followed year
In RMB
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Year Ending amount Opening amount Note
Other note: Nil
19. Short-term loans
(1) Short-term loans
In RMB
Type Closing balance Opening balance
Guarantee loan 10,000,000.00 5,000,000.00
Total 10,000,000.00 5,000,000.00
Note:
Among the guarantee loan, the 10 million Yuan refers to the loans from Shenzhen Branch of Agricultural Bank of
China under the name of the Company, and with the joint liability guaranty from subsidairy Shenbao Huacheng.
(2) Overdue short-term loans without payment
RMB 0 short-term loans over due without paid at period-end, including follow major amount:
In RMB
Loan unit Closing balance Loan rate Overdue time Overdue interest
Other note: Nil
20. Account payables
(1) Account payables
In RMB
Item Closing balance Opening balance
Within 1 year 17,415,899.47 11,401,741.46
1-2 years 1,274,417.42 619,763.06
2-3 years 270,658.16 81,285.32
Over 3 years 3,684,234.74 3,679,498.45
Total 22,645,209.79 15,782,288.29
(2) Major accounts payable with age over 1 year
In RMB
Name Closing balance Reasons of outstanding or carry-over
Supplier 1 518,655.52 Uncertain whether need to be paid
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Supplier 2 515,892.30 Uncertain whether need to be paid
Total 1,034,547.82 --
Other note: Nil
21. Account received in advance
(1) Account received in advance
In RMB
Item Closing balance Opening balance
Within 1 year 2,923,378.98 1,582,442.08
1-2 years 22,733.11 20,824.77
2-3 years 1,175.11 1,175.11
Over 3 years 775,382.17 775,382.17
Total 3,722,669.37 2,379,824.13
(2) Important account payable with account age over one year
In RMB
Item Closing balance Reason
(3) Project settled without completed in construction at period-end
In RMB
Item Amount
Other note: Nil
22. Wages payable
(1) Wages payable
In RMB
Item Opening balance Current increased Current decreased Closing balance
I. Short-term
16,013,302.23 35,366,159.63 42,249,708.96 9,129,752.90
compensation
II. After-service
welfare-defined 266,404.61 2,732,705.21 2,745,097.88 254,011.94
contribution plans
Total 16,279,706.84 38,098,864.84 44,994,806.84 9,383,764.84
深圳市深宝实业股份有限公司 2017 年半年度报告全文
(2) Short-term remuneration
In RMB
Item Opening balance Current increased Current decreased Closing balance
1. Wage, bonus,
13,926,638.79 27,549,088.14 34,648,823.05 6,826,903.88
allowance and subsidy
2. Employees’ welfare 3,620,490.60 3,620,490.60
3. Social insurance
37,917.96 1,162,125.93 1,180,222.31 19,821.58
charges
Including: basic medical
33,867.62 1,007,384.53 1,024,472.23 16,779.92
insurance premium
Industrial injury
insurance 747.55 76,858.72 77,093.52 512.75
premiums
Maternity
insurance 3,302.79 77,882.68 78,656.55 2,528.92
premiums
4. Housing public reserve 1,987,870.74 1,987,870.74
5. Trade union fee and
2,048,745.48 1,046,584.22 812,302.26 2,283,027.44
education fee
Total 16,013,302.23 35,366,159.63 42,249,708.96 9,129,752.90
(3) Defined contribution plans
In RMB
Item Opening balance Current increased Current decreased Closing balance
1. Basic endowment
262,640.68 2,648,823.20 2,660,038.53 251,425.35
insurance premiums
2. Unemployment
3,763.93 83,882.01 85,059.35 2,586.59
insurance premiums
Total 266,404.61 2,732,705.21 2,745,097.88 254,011.94
Other note: Nil
23. Tax payable
In RMB
Item Closing balance Opening balance
VAT 1,050,206.69 875,568.98
Enterprise income tax 3,437,808.27 24,416,713.98
Personal income tax 232,918.38 549,066.33
Urban maintenance and construction tax 78,519.60 36,241.36
House property tax 172,745.19 148,805.39
Surtax for education expenses 60,267.06 26,677.72
Use tax of land 125,174.33 125,174.33
Other tax fee 85,005.96 166,890.44
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Total 5,242,645.48 26,345,138.53
Other note: Nil
24. Dividend payable
In RMB
Name Closing balance Opening balance
Other 2,909,182.74 2,909,182.74
Total 2,909,182.74 2,909,182.74
Other note, including payable dividend unpaid with over one year, disclosure reasons: Nil
25. Other account payables
(1) Listed by age
In RMB
Item Closing balance Opening balance
Deposit and margin 1,086,467.98 2,090,774.94
Engineering quality retention money and
199,541.37 17,097.62
fund of tail
Intercourse funds and other 41,120,543.75 38,588,210.38
Fund lending 5,538,429.19 5,423,607.31
Total 47,944,982.29 46,119,690.25
(2) Significant other payable with over one year age
In RMB
Item Closing balance Reasons of un-paid or carry-over
Shenzhen Nongdimei Investment
5,538,429.19 Fund lending
Management Co., Ltd.
Shenzhen Investment Management
3,510,297.20 Historical payment
Company
Total 9,048,726.39 --
Other note: Nil
26. Deferred income
In RMB
Increase during the Decreased during the
Item Opening balance Closing balance Causes
year year
Government grants 12,335,552.15 583,516.86 11,752,035.29
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Total 12,335,552.15 583,516.86 11,752,035.29 --
Items involving governance grants:
In RMB
Amount reckoned
Grants increased Assets-related/inc
Liability Opening balance into non-operating Other changes Ending balance
in the Period ome-related
revenue
(1) Subsidy for tea
seeding of New
48,348.52 554.64 47,793.88 Assets-related
Tea Garden in
Wangkou
(2) Construction
amount for 50 tons
for clearly 750,000.00 62,500.00 687,500.00 Assets-related
processing for
Mingyou tea
(3)Industrialization
project of instant 2,477,028.41 98,222.94 2,378,805.47 Assets-related
tea power
(4) Special fund
project of strategic
20,123.05 20,123.05 Assets-related
emerging industry
development
(5) Base of further
processing for tea 1,650,000.00 137,500.00 1,512,500.00 Assets-related
and nature plants
(6) Enterprise
technology center
is a municipal
R&D center.
2,395,350.11 102,012.27 2,293,337.84 Assets-related
Subsidies for
industrial
technological
advancement
(7) Subsidies for
key technology
research and 181,501.23 7,122.50 174,378.73 Assets-related
industrialization of
instant tea powder
(8) Subsidy of
Guangdong
–Agricultural 1,120.58 1,120.58 Assets-related
public relation
project
(9) Special funds 4,241,311.01 175,604.51 4,065,706.50 Assets-related
深圳市深宝实业股份有限公司 2017 年半年度报告全文
for Shenzhen
strategic emerging
industrial
development
(10) Project
grants for years
for agricultural 570,769.24 570,769.24 Assets-related
disctrict, Xihu
Zone
Total 12,335,552.15 582,962.22 554.64 11,752,035.29
Other note: Nil
27. Share capital
In RMB
Increased (decreased) in this year +,-
Opening Shares Closing
New shares
balance Bonus shares converted from Other Sub-total balance
issued
public reserve
Total shares 451,620,276.00 45,162,027.00 45,162,027.00 496,782,303.00
Other note:
On May 15, 2017, the shareholders' general meeting of the Company examined and approved the Annual Equity
Distribution Plan for 2016, took the general capital of 451,620,276 shares up to December 31, 2016 as the cardinal
number and sent bonus shares of one share per every 10 shares to all shareholders. The capital stock increased to
496,782,303 shares after sending the bonus shares.
28. Capital reserves
Item Opening balance Current increased Current decreased Closing balance
Capital premium (share
366,706,783.36 366,706,783.36
premium)
Other capital reserves 465,234.43 465,234.43
Total 367,172,017.79 367,172,017.79
Other instructions, including changes in the current period, reasons for the change: Nil
29. Surplus reserves
In RMB
Item Opening balance Current increased Current decreased Closing balance
Statutory surplus reserve 54,736,482.14 54,736,482.14
Total 54,736,482.14 54,736,482.14
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Instructions, including changes in the current period, reasons for the change: Nil
30. Retained profit
In RMB
Item This period Last period
Retained profit at the end of the previous year
158,239,612.94 66,684,572.93
before adjustment
Total retained profit at the beginning of the
158,239,612.94 66,684,572.93
previous year before adjustment
Add: net profit attributable to shareholder of
-17,759,776.83 96,620,658.92
parent company
Less: Exact Statutory surplus reserves 5,065,618.91
Dividend for common shares payable 22,581,013.80
Dividend of common shares transferred 45,162,027.00
Retained profit at the begin of the year after
72,736,795.31 158,239,612.94
adjustment
Details about adjusting the retained profits at the beginning of the period:
1) The retroactive adjustments to Accounting Standards for Business Enterprises and its relevant new regulations
affect the retained profits at the beginning of the period amounting to 0 Yuan.
2) The changes in accounting policies affect the retained profits at the beginning of the period amounting to 0
Yuan.
3) The major accounting error correction affects the retained profits at the beginning of the period amounting to 0
Yuan
4) Merge scope changes caused by the same control affect the retained profits at the beginning of the period
amounting to 0 Yuan.
5) Other adjustments affect the retained profits at the beginning of the period amounting to 0 Yuan
31. Operating income and Operating cost
In RMB
Current Period Last Period
Items
Income Cost Income Cost
Main operating 136,473,406.96 103,182,564.29 146,569,809.91 116,893,235.04
Other operating 1,684,975.99 1,218,275.03 2,585,719.80
Total 138,158,382.95 104,400,839.32 149,155,529.71 116,893,235.04
32. Tax and surcharges
In RMB
Item Current Period Last Period
City maintenance and construction tax 570,241.97 431,109.87
Educational fee and extra 437,060.65 324,406.46
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Property tax 748,577.58
Land use tax 653,330.76
Stamp tax 45,522.53
Business tax 190,365.07
Total 2,454,733.49 945,881.40
Other note: Nil
33. Sales expenses
In RMB
Item Current Period Last Period
Employee compensation and employee
8,415,437.33 8,939,930.99
costs
Rental and utilities 4,486,810.13 3,068,591.19
Depreciation and amortization expenses 1,306,854.39 1,756,086.17
Goods transport miscellaneous expenses 3,571,058.05 3,357,828.74
Sales discounts, promotion fee and
1,016,356.24 1,614,396.47
advertising expenses
Daily office expenses 1,894,181.18 1,566,521.12
Others 483,709.99 297,928.50
Total 21,174,407.31 20,601,283.18
Other note: Nil
34. Management expenses
In RMB
Item Current Period Last Period
Employee compensation and employee
18,059,573.89 17,348,437.24
costs
Rental and utilities 1,253,438.85 1,242,451.04
Depreciation and amortization expenses 6,715,698.24 7,744,370.44
Intermediary and disclosure expenses 1,408,462.38 838,287.74
Tax and fee 1,531,982.39
Daily office expenses 4,376,421.31 4,455,006.68
Others 1,269,189.09 1,209,163.64
Total 33,082,783.76 34,369,699.17
Other note: Nil
深圳市深宝实业股份有限公司 2017 年半年度报告全文
35. Financial expenses
In RMB
Category Current Period Last Period
Interest expense -57,803.94 920,938.21
Less: interest income -1,951,838.54 -791,028.37
Exchange loss 213,930.71
Others 262,314.75 158,133.30
Total -1,533,397.02 213,297.58
Other note:
Interest costs in the period amounted as 325,296.06 Yuan, discount loans amounted as 383,100.00 Yuan.
36. Asset impairment loss
In RMB
Item Current Period Last Period
I. Bad debt losses 190,677.29 193,984.48
Total 190,677.29 193,984.48
Other note: Nil
37. Gains /losses from change of fair value
In RMB
Source of gains from change of fair value Current Period Last Period
Financial assets measured by fair value and
with its variation reckoned into current -990,762.24 -848,856.19
gains/losses
Total -990,762.24 -848,856.19
Other note: Nil
38. Investment gains
In RMB
Item Current Period Last Period
Long-term equity investment gains recognized
-159,244.04 -2,144,995.21
under equity method
Investment income from disposal of long-term
581,171.70
equity investment
Earnings from financing products 1,252,661.10 665,169.36
Total 1,093,417.06 -898,654.15
Other note: Nil
深圳市深宝实业股份有限公司 2017 年半年度报告全文
39. Non-operating income
In RMB
Amount included in the current
Item Current Period Last Period
non-recurring profit and loss
Total income from disposal of non-current
12,532.09 1,609.60 12,532.09
assets
Including: fixed assets disposal gains 12,532.09 1,609.60 12,532.09
Government grants 618,962.22 1,876,962.20 618,962.22
Satisfaction 3,733,754.39
Compensation 325,918.95 325,918.95
Other 66,816.28 606,091.10 66,816.28
Total 1,024,229.54 6,218,417.29 1,407,329.54
Government subsidy reckoned into current gains/losses:
In RMB
Whether the
impact of
Whether Assets
Issuing subsidies on Amount of Amount of
Item Issuing cause Property type special related/Incom
subject the current this period last period
subsidies e related
profit and
loss
Deferred
income No No 582,962.22 520,462.20 Assets related
transfer-in
Subsidies
obtained
from
engaging in
specific
businesses
Award of and industries
“Three Grade encouraged
Tea Bureau
Standards” and Income
of Wuyuan Award No No 30,000.00
from supported by related
Country
Agricultural the country
Bureau (obtained by
the national
level policies
and
stipulations
according to
law)
Market Shenzhen Subsidy Subsidies No No 6,000.00 Income
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Supervision Market obtained related
Bureau - Supervisory from
Patent funded Authority engaging in
subsidies specific
businesses
and industries
encouraged
and
supported by
the country
(obtained by
the national
level policies
and
stipulations
according to
law)
Subsidies
obtained
from
engaging in
specific
Wuyuan
businesses
County
and industries
Committee
Xinjiang encouraged
Organization
excellence and Income
Department Award No No 100,000.00
funded 866 supported by related
of the
projects the country
Communist
(obtained by
Party of
the national
China
level policies
and
stipulations
according to
law)
Subsidy for
Wuyuan
national
County
commitment
Gan po 555 Committee
to safeguard
excellence Organization Income
Award certain public No No 400,000.00
projects Department related
utilities or
funded of the
socially
Communist
necessary
Party of
product
深圳市深宝实业股份有限公司 2017 年半年度报告全文
China supply
Subsidies
obtained
from
engaging in
specific
businesses
and industries
Market
Shenzhen encouraged
Supervision
Market and Income
Bureau - Subsidy No No 10,000.00
Supervisory supported by related
Patent funded
Authority the country
subsidies
(obtained by
the national
level policies
and
stipulations
according to
law)
Subsidies
obtained
from
engaging in
specific
Patent grants businesses
from and industries
Economy, Shenzhen encouraged
Trade and Market and Income
Subsidy No No 4,000.00
Information Supervisory supported by related
Commission Authority the country
of Shenzhen (obtained by
municipality the national
level policies
and
stipulations
according to
law)
Loan Subsidy for
discount of Shenzhen national
agriculture Municipal commitment Income
Subsidy No No 79,500.00
industrializati Finance to safeguard related
on for key Committee certain public
leading utilities or
深圳市深宝实业股份有限公司 2017 年半年度报告全文
enterprises socially
necessary
product
supply
Subsidy for
national
commitment
to safeguard
Tax incentive Finance
certain public Income
for tea Bureau of Award No No 63,000.00
utilities or related
industry Wuyi Mount
socially
necessary
product
supply
Subsidy for
Enterprise
national
financial aid
commitment
for
Finance to safeguard
“scale-up”
Office of certain public Income
from Subsidy No No 700,000.00
Bingjiang utilities or related
Huangzhou
District socially
Hi-Tech
necessary
Disctric
product
(Bingjiang)
supply
Total -- -- -- -- -- 618,962.22 1,876,962.20 --
Other note: Nil
40. Non-operating expenditure
In RMB
Amount reckoned into current
Item Current Period Last Period
non-recurring gains/losses
Non-current assets disposal
33,547.35 8,020.41 33,547.35
losses
Including: fixed assets disposal
33,547.35 8,020.41 33,547.35
losses
Loss of non-monetary assets
20,916.00 20,916.00
exchange
Other 1,206.68 363,070.33 1,206.68
Total 55,670.03 371,090.74 55,670.03
Other note: Nil
深圳市深宝实业股份有限公司 2017 年半年度报告全文
41. Income tax expense
(1) Statement of income tax expenses
In RMB
Item Current Period Last Period
Current income tax expenses 335,468.02 213,824.12
Deferred income tax expenses -298,881.44 -715,569.21
Total 36,586.58 -501,745.09
(2) Adjustment process of accounting profit and income tax expenses
In RMB
Item Current Period
Total profit -20,540,446.87
Income tax expenses calculated by statutory tax rate -5,135,111.72
Impact from previous income tax adjusted 156,714.09
Impact on deductible temporary differences or losses deductible
5,014,984.21
which was un-recognized as deferred income tax assets
Income tax expense 36,586.58
Other note: Nil
42. Annotation of cash flow statement
(1) Cash received with other operating activities concerned
In RMB
Item This Period Last Period
Interest income 1,723,814.05 521,408.99
Government grants 419,100.00 1,214,000.00
Intercourse funds and other 4,205,388.32 29,428,598.18
Total 6,348,302.37 31,164,007.17
Note of cash received with other operating activities concerned: Nil
(2) Cash paid with other operating activities concerned
In RMB
Item This Period Last Period
Expenses 14,640,748.15 15,943,042.18
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Intercourse funds and other 5,939,319.21 6,826,064.43
Total 20,580,067.36 22,769,106.61
Note of cash paid with other operating activities concerned: Nil
(3) Cash received with other investment activities concerned
In RMB
Item This Period Last Period
Financing income 665,169.36
Total 665,169.36
Note of cash received with other investment activities concerned: Nil
(4) Cash paid related with investment activities
In RMB
Item This Period Last Period
Note of cash paid related with investment activities: Nil
(5) Cash received with other financing activities concerned
In RMB
Item This Period Last Period
Sales of odd lots from increase by
79.19
transferring
Total 79.19
Note of cash received with other financing activities concerned: Nil
(6) Cash paid related with financing activities
In RMB
Item This Period Last Period
Note of cash paid related with financing activities: Nil
43. Supplementary information to statement of cash flow
(1) Supplementary information to statement of cash flow
In RMB
Item This Period Last Period
1.Net profit adjusted to cash flow of
-- --
operation activities:
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Net profit -20,577,033.45 -19,460,289.84
Add: Impairment provision for assets 190,677.29 193,984.48
Depreciation of fixed assets, consumption of
oil assets and depreciation of productive 10,965,845.80 10,959,250.11
biology assets
Amortization of intangible assets 3,525,894.04 3,422,961.19
Amortization of long-term deferred expenses 2,797,203.36 3,035,193.13
Loss from disposal of fixed assets, intangible
assets and other long-term assets (income is 33,547.35 8,020.41
listed with “-”)
Loss from change of fair value (income is
990,762.24 848,856.19
listed with “-“)
Financial expenses (income is listed with
539,226.77 663,430.88
“-”)
Investment loss (income is listed with “-”) -1,093,417.06 898,654.15
Decrease of deferred income tax assets
-51,190.88 -263,404.93
(increase is listed with “-”)
Increase of deferred income tax liability
-285,625.68 -490,099.40
(decrease is listed with “-”)
Decrease of inventory (increase is listed with
-8,524,247.90 11,434,920.70
“-”)
Decrease of operating receivable
-14,650,942.01 8,158,346.27
accounts(increase is listed with “-”)
Increase of operating payable
-24,293,348.02 12,188,124.02
accounts(decrease is listed with “-”)
Net cash flow arising from operating
-50,432,648.15 31,597,947.36
activities
2.Material investment and financing not
-- --
involved in cash flow:
3.Net change of cash and cash equivalents -- --
Balance of cash at period end 205,487,872.79 144,899,052.46
Less: Balance of cash at year-begin 358,564,242.83 147,513,887.15
Net increasing of cash and cash equivalents -153,076,370.04 -2,614,834.69
(2) Constitution of cash and cash equivalent
In RMB
Item Closing balance Opening balance
I. Cash 205,487,872.79 358,564,242.83
Including: Cash on hand 268,174.40 207,519.80
Bank deposit available for payment
205,219,698.39 358,356,723.03
at any time
深圳市深宝实业股份有限公司 2017 年半年度报告全文
III. Balance of cash and cash equivalent at
205,487,872.79 358,564,242.83
year-end
Other note: Nil
44. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
Ending foreign currency Ending balance of RMB
Item Exchange rate convert
balance converted
Including: USD 113,635.74 6.77440 769,813.96
HKD 98,815.33 0.86792 85,763.80
Including: USD 346,033.20 6.77440 2,344,167.31
Other note:
(2) Explanation on foreign operational entity, including as for the major foreign operational entity,
disclosed main operation place, book-keeping currency and basis for selection; if the book-keeping
currency changed, explain reasons
□ Applicable √ Not applicable
VIII. Equity in other entity
1. Equity in subsidiary
(1) Constitute of enterprise group
Main operation Share-holding ratio
Subsidiary Registered place Business nature Acquired way
place Directly Indirectly
Shenbao
Shenzhen Shenzhen Manufacturing 100.00% Establishment
Huacheng
Wuyuan
Shangrao Shangrao Manufacturing 100.00% Establishment
Jufangyong
Shenbao Sanjing Huizhou Huizhou Shenzhen Manufacturing 100.00% Establishment
Huizhou Shenbao
Huizhou Huizhou Comprehensive 100.00% Establishment
Technologies
Shenbao Property
Shenzhen Shenzhen 100.00% Establishment
Properties management
Shenbao Commerce &
Industrial Trading Huizhou Shenzhen trade 100.00% Establishment
& Development wholesale
Hangzhou Hangzhou Hangzhou Comprehensive 100.00% Establishment
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Jufangyong
Technology
Shenbao
development,
Technology Shenzhen Shenzhen 100.00% Establishment
consulting and
Center
transfer
Planting,
Fuhaitang
Hangzhou Hangzhou production and 100.00% Acquisition
Ecological
sales of tea
Commerce &
Chunshi Network Hangzhou Hangzhou trade; wholesale 100.00% Establishment
Shenshenbao Investment
Shenzhen Shenzhen 100.00% Establishment
Investment management
Shenshenbao Tea Commerce &
Shenzhen Shenzhen 65.00% Establishment
Culture trade
Jufangyong
Shenzhen Shenzhen Manufacturing 60.00% Establishment
Trading
Yunnan Supply Trading,
Pu’er Pu’er 100.00% Establishment
Chain wholesale
Huizhou Shenbao
Shenzhen Shenzhen Wholesale 100.00%
Food
Shenbao Rock
Wuyishan City Wuyishan City Manufacturing 100.00%
Tea
Pu’er Tea
Pu’er City Pu’er City Service 40.00% 15.00% Establishment
Exchange Center
Explanation on share-holding ratio in subsidiary different from ratio of voting right: Nil
Basis of the invested unit control by the Company though holds half or below voting rights; and the invested unit
without controls by the Company but with over half voting rights hold: Nil
Major structured entity included in consolidate statement: Nil
Basis of termination of agent or consigner: Nil
Other note: Nil
(2) Important non-wholly-owned subsidiary
In RMB
Share-holding ratio of Gains/losses attributable Dividend distribute for Accumulated equity of
Subsidiary
minority to minority in the Period minority in the Period minority at period-end
Shenzhen Shenbao Tea
35.00% -1,629,321.11 -4,664,070.01
Culture
Pu’er Tea Exchange
45.00% -940,290.71 20,192,618.85
Center
Explanation on holding ratio different from the voting right ratio for minority shareholders: Nil
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Other note: Nil
(3) Main finance of the important non-wholly-owned subsidiary
In RMB
Closing balance Opening balance
Subsidia Non-curr Non-curr Non-curr Non-curr
Current Total Current Total Current Total Current Total
ry ent ent ent ent
assets assets liability liability assets assets liability liability
assets liability assets liability
Shenzhe
n
6,408,56 2,792,03 9,200,59 22,526,5 22,526,5 7,991,35 3,888,99 11,880,3 20,551,0 20,551,0
Shenbao
6.36 1.73 8.09 12.36 12.36 8.34 5.58 53.92 65.05 65.05
Tea
Culture
Yunnan
Tea 37,726,7 12,106,8 49,833,6 4,961,13 4,961,13 35,223,3 12,263,3 47,486,7 524,687. 524,687.
Trading 30.55 89.52 20.07 3.72 3.72 79.95 29.01 08.96 71
Center
In RMB
Current Period Last Period
Cash flow Cash flow
Total Total
Subsidiary Operation from Operation from
Net profit comprehensi Net profit comprehensi
Income operation Income operation
ve income ve income
activity activity
Shenzhen
Shenbao Tea 3,052,329.52 -4,655,203.14 -4,655,203.14 -19,820.18 3,256,699.36 -7,695,232.77 -7,695,232.77 -892,934.59
Culture
Yunnan Tea
-31,729,663.8
Trading 556,614.78 -2,089,534.90 -2,089,534.90 1,509.43 -2,030,153.47 -2,030,153.47 -1,839,025.23
Center
Other note: Nil
2. Equity in joint venture and cooperative enterprise
(1) Financial summary for un-important joint venture or cooperative enterprise
In RMB
Closing balance /Current Period Opening balance /Last Period
Joint venture: -- --
Total numbers measured by share-holding
-- --
ratio
Cooperative enterprise: -- --
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Total book value of investments 5,707,237.59 5,866,481.63
Total numbers measured by share-holding
-- --
ratio
-- Net profit -159,244.04 -2,144,995.21
-- Total comprehensive income -159,244.04 -2,144,995.21
Other note: Nil
(2) Excess losses from joint venture or cooperative enterprise
In RMB
Un-confirmed losses not
Cumulative un-confirmed Cumulative un-confirmed
Name recognized in the Period (or net
losses losses at period-end
profit enjoyed in the Period)
Changzhou Shenbao Chacang
7,710,869.12 269,729.81 7,980,598.93
E-commence Co., Ltd
Shenzhen Shichumingmen
Restaurant Management Co., 2,533,011.85 330,991.44 2,864,003.29
Ltd.
Other note: Nil
IX. Disclosure of risks relating to financial instruments
Our business operation makes the Company exposed to various financial risks: credit risk, liquidity risk and
market risk (mainly refers to exchange risk and interest risk). The general risk management policy of the
Company is to minimize potential negative effects on our financial performance in view of the unforeseeable
financial market.
1. Credit risk
The credit risk mainly arises from monetary capital, notes receivables, trade receivables and other receivables.
The management has established adequate credit policies and continues to monitor exposure of these credit risks.
Monetary capital held by the Company is mainly deposited with financial institutions such as commercial banks.
Management believes that these banks are relatively highly rated and possess sound assets and there is low credit
risk. The Company adopts amount-limitation policy to prevent credit risk from any financial institution.
For trade receivables, other receivables and note receivables, the Company establishes relevant policies to control
exposure of credit risk. The Company appraises customers’ credit quality based on their financial position,
possibility to obtain guarantee from third parties, credit history and other factors such as prevailing market
conditions, and set corresponding credit terms. Customers’ credit history would be regularly monitored by the
Company. For those customers who have bad credit history, the Company will call collection in written form,
深圳市深宝实业股份有限公司 2017 年半年度报告全文
shorten credit term or cancel credit term to ensure its overall credit risk is under control.
Up to 30th June 2017, the top five client’s account receivable takes 18.79% in total account receivable of the
Company (2016: 35.08%)
The maximum credit risk exposure equals to the carrying value of each financial asset in balance sheet (including
derivative financial instrument). The Company has not provided any guarantee which would otherwise make the
Company exposed to credit risk.
2. Liquidity risk
Liquidity risk represents the possibility that the Company is not able to acquire sufficient fund to satisfy business
requirement, settle debt when it is due and perform other obligation of payment.
The finance department continues to monitor capital requirement for short and long term, to ensure adequate cash
reserve. In addition, it continues to monitor whether borrowing agreement is complied with, and seeks for
commitment from major financial institutions for provision of sufficient back-up fund, so as to satisfy capital
requirement in a short and long term.
3. Market risk
(1) Exchange risk
The major operation of the Company is located in the PRC, and its major operation is settled in Renminbi.
However, there is also exchange risk in respect of the recognized foreign currency assets and liabilities and future
foreign currency transactions which are mainly denominated in US dollar. Our finance department is responsible
for monitoring scale of foreign currency assets and liabilities and foreign currency transactions, to minimize its
exposure to exchange risks. In 2016 and 2015, the Company did not sign any forward exchange contract or
monetary exchange contract.
(2) Interest risk
Our interest risk mainly arises from bank borrowings. Financial liabilities at floating rate expose the Company to
cash flow interest risk, and financial liabilities at fixed rate expose the Company to fair value interest risk. The
Company determines the respective proportion of contracts at fixed rate and floating rate based on prevailing
market conditions.
Finance department continues to monitor the Company’s interest rate level. Appreciation of interest rate will
increase cost of our new interest-bearing debts and interest expenditure attributable to floating interest-bearing
debts which the Company has not cleared yet. The management would make prompt adjustment according to the
latest market conditions.
深圳市深宝实业股份有限公司 2017 年半年度报告全文
(3) Price risk
The Company purchases and sells products at market prices, therefore it is affected by fluctuation of these prices.
X. Disclosure of fair value
1. Ending fair value of the assets and liabilities measured by fair value
In RMB
Ending fair value
Items
First-order Second-order Third-order Total
I. Sustaining measured by
-- -- -- --
fair value
(I)Financial assets
measured by fair value
and with variation 2,260,176.36 2,260,176.36
reckoned into current
gains/losses
Total assets sustaining
2,260,176.36 2,260,176.36
measured by fair value
II. Non-persistent measure -- -- -- --
2. Recognized basis for the market price sustaining and non-persistent measured by fair value on
first-order
Determination baisis refers to the open market price
XI. Related party and related transactions
1. Parent company
Ratio of shareholding Ratio of voting right
Parent company Registration place Business nature Registered capital
on the Company on the Company
Development,
established, operated
Shenzhen and management the
Agricultural Shenzhen agricultural 169,696.41 19.09% 19.09%
Products Co., Ltd. wholesale market,
operates marketing
leasing business etc.
Explanation on parent company of the enterprise
Ultimate controller of the Company is Shenzhen Municipal People’s Government State-Owned Assets Supervison
and Administration Commission.
Other note: Nil
深圳市深宝实业股份有限公司 2017 年半年度报告全文
2. Subsidiary
Subsidiary of the Company found more in Note VIII-(I) equity in subsidiary
3. Cooperative enterprise and joint venture
Joint Venture of the Company found more in Note VIII-(II) equity in joint Venture
Other cooperative enterprise and joint venture that have related transaction with the Company in the Period or
occurred in previous period
Name Relationship
Other note: Nil
4. Other related party
Other related party Relationship with the Enterprise
Shenzhen Investment Management Company Former first largest shareholder of the Company
Shenzhen Investment Holding Co., Ltd. Second largest shareholder of the Company
Shenzhen Nongdimei Investment Management Co., Ltd. Minority shareholder of the Holding subsidiary
Shenzhen Shichumingmen Restaurant Management Co., Ltd. Cooperative enterprise
Changzhou Shenbao Chacang E-commence Co., Ltd Cooperative enterprise
Shenzhen Shenbao Manan Biotechnology Co., Ltd Cooperative enterprise
Guangzhou Shenbao Mendao Tea Co., Ltd. Cooperative enterprise
Other note: Nil
5. Related transaction
(1) Goods purchased and labor service received
Goods purchasing, labor service providing and receiving
In RMB
Approved transaction Whether more than
Related party Content Current Period Amount of last period
limit the transaction limit
Shenzhen
Shichumingmen
Restaurant Raw material 927.50 N 0.00
Management Co.,
Ltd.
Goods sold/labor service providing
In RMB
Related party Content Current Period Last Period
Shenzhen Investment Holding
Sales of tea 13,233.97
Co., Ltd.
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Shenzhen Agricultural Products
Sales of tea 175,626.91
Co., Ltd.
Shenzhen Shichumingmen
Restaurant Management Co., Active service income 6,442.74 2,840.10
Ltd.
Note of sale of goods/rendering of labor services/labor service offering: Nil
(2) Related lease
As a lessor for the Company:
In RMB
Lease income in recognized in Lease income in recognized last
Lessee Assets type
the Period the Period
Shenzhen Shichumingmen
Restaurant Management Co., Operating site 409,500.00 423,150.00
Ltd.
As lessee:
In RMB
Lease income in recognized in Lease income in recognized last
Lesser Assets type
the Period the Period
Explanation on related lease: Nil
(3) Related guarantee
As guarantor
In RMB
Whether the guarantee
Secured party Guarantee amount Guarantee start date Guarantee expiry date
has been fulfilled
Shenbao Huacheng 30,000,000.00 2016-7-26 2017-7-25 No
As secured party
In RMB
Whether the guarantee
Guarantor Guarantee amount Guarantee start date Guarantee expiry date
has been fulfilled
Shenbao Huacheng 5,000,000.00 2016-10-24 2017-1-28 Yes
Shenbao Huacheng 10,000,000.00 2017-1-11 2018-1-10 No
Related guarantee note: Nil
(4) Related party’s borrowed funds
In RMB
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Related party Loan amount Start date Expiry date Note
Borrowing
Shenzhen Nongdimei
Investment Management 5,250,000.00 2015-12-01 2017-12-31
Co., LTD.
Loans
(5) Other related transactions: Nil
6. Balance of intercourse funds between related parties
(1) Account receivable
In RMB
Closing balance Opening balance
Item Related party
Book balance Bad debt provision Book balance Bad debt provision
Shenzhen
Shichumingmen
Account receivable Restaurant 25,984.00 13,965.00
Management Co.,
Ltd.
Changzhou Shenbao
Other account Chacang
19,745,382.18 8,839,247.89 19,540,618.68 8,634,484.39
receivable E-commence Co.,
Ltd
Shenzhen
Shichumingmen
Other account
Restaurant 2,006,499.85 2,048,972.70
receivable
Management Co.,
Ltd.
(2) Account payable
In RMB
Item Related party Closing balance Opening balance
Shenzhen Investment
Dividend payable 2,690,970.14 2,690,970.14
Management Company
Shenzhen Investment
Other payable 3,510,297.20 3,510,297.20
Management Company
Shenzhen Nongdimei
Other payable 5,538,429.19 5,423,607.31
Investment Management
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Company
Shenzhen Shichumingmen
Account payable Restaurant Management Co., 927.50
Ltd.
XII. Commitment or contingency
1. Other
The Company did not have major committements or contingency that need to disclosured till end of 30 June2017
XIII. Events after balance sheet date
1. Other events after balance sheet date
The Company did not have events after balance sheet date that need to disclosured till end of 30 June2017
XIV. Other important events
1. Other
The Company did not have events shall be released without disclosure till end of 30 June2017
XV. Annotation to main items in financial statements of parent company
1. Account receivables
(1) Disclosed by type
In RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Type Book
Accrual Accrual Book value
Amount Ratio Amount value Amount Ratio Amount
ratio ratio
Account receivable
withdrawal bad debt
26,791,4 26,791,49 40,123, 40,123,423.
provision by group of 99.89% 99.93%
98.16 8.16 423.12
credit risk
characteristics
Account receivable
with single minor 28,453.0 28,453.0 28,453.
0.11% 100.00% 0.07% 28,453.08 100.00%
amount but 8 8
withdrawal bad debt
深圳市深宝实业股份有限公司 2017 年半年度报告全文
provision for single
item
26,819,9 28,453.0 26,791,49 40,151, 40,123,423.
Total 100.00% 100.00% 100.00% 28,453.08 0.07%
51.24 8 8.16 876.20
Account receivable with single significant amount and withdrawal bad debt provision separately at period end :
□ Applicable √ Not applicable
Account receivable provided for bad debt reserve under aging analysis method in the groups:
√ Applicable □ Not applicable
In RMB
Closing balance
Age
Account receivable Bad debt provision Accrual ratio (%)
Subitem within 1 year
Within 1 year 26,791,498.16
Total 26,791,498.16
Explanations on combination determine: Nil
In combination, withdrawal proportion of bad debt provision based on balance proportion for account receivable:
□ Applicable √ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods for account receivable: Nil
(2) Top five receivables at Period-end
Proportion in total
Name Closing balance receivables at closing Bad debt provision accrual
balance (%)
Customer 1 5,824,108.00 21.72 ---
Customer 2 5,163,160.00 19.25 ---
Customer 3 4,166,420.22 15.53 ---
Customer 4 1,895,350.00 7.07 ---
Customer 5 971,040.00 3.62 ---
Total 18,020,078.22 67.19 ---
2. Other receivables
(1) Disclosed by type
In RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Types Book
Accrual Accrual Book value
Amount Ratio Amount value Amount Ratio Amount
ratio ratio
Other account
19,115,3 8,776,24 10,339,13 18,910, 8,571,484 10,339,134.
receivable with 8.02% 45.91% 8.33% 45.33%
82.18 7.89 4.29 618.68 .39
single major amount
深圳市深宝实业股份有限公司 2017 年半年度报告全文
and withdrawal bad
debt provision for
single item
Other account
receivable
withdrawal bad debt 213,929, 42,123.0 213,886,9 202,534 202,482,75
89.69% 0.02% 89.26% 52,150.03 0.03%
provision by group of 088.07 3 65.04 ,906.30 6.27
credit risk
characteristics
Other account
receivable with
single minor amount 5,472,39 5,472,39 5,472,3 5,472,398
2.29% 100.00% 2.41% 100.00%
but withdrawal bad 8.91 8.91 98.91 .91
debt provision for
single item
238,516, 14,290,7 224,226,0 226,917 14,096,03 212,821,89
Total 100.00% 5.99% 100.00% 6.21%
869.16 69.83 99.33 ,923.89 3.33 0.56
Other receivable with single significant amount and withdrawal bad debt provision separately at end of period:
√Applicable □Not applicable
In RMB
Closing balance
Other receivables (unit)
Other receivables Provision for bad debt Accrue ratio Accrue reason
Changzhou Shenbao estimated due received
Chacang E-commence 19,115,382.18 8,776,247.89 45.91% maybe lower than book
Trading Co., Ltd balance
Total 19,115,382.18 8,776,247.89 -- --
Other receivable with bad debt provision withdrawal by age analysis in group:
√Applicable □Not applicable
In RMB
Closing balance
Age
Other receivable Bad debt provision Accrual ratio (%)
Subitem within 1 year
Subtotal within 1 year 213,593,798.96
1－2 yeas 35,600.00 1,780.00 5.00%
2－3years 91,747.70 9,174.77 10.00%
Over 3 years 207,968.41 31,195.26 15.00%
4-5 years 207,968.41 31,525.26 15.00%
Total 213,929,115.07 42,150.03 0.02%
Explanations on combination determine:
In combination, withdrawal proportion of bad debt provision based on balance proportion for other account
receivable
□ Applicable √ Not applicable
深圳市深宝实业股份有限公司 2017 年半年度报告全文
In combination, withdrawal proportion of bad debt provision based on other methods for other account receivable
□ Applicable √ Not applicable
(2) Bad debt provision accrual, collected or reversed
Accrual bad debt provision 204,763.50 Yuan; collected or reversed 10,000.00 Yuan.
Major bad debt provision collected or switch back:
In RMB
Name Amount Method
(3) Other receivables by nature
In RMB
Nature Ending book balance Opening book balance
Deposit 111,502.00 280,986.43
Tax refund for export 296,913.30
Intercourse accounts and other 238,108,453.86 226,636,937.46
Total 238,516,869.16 226,917,923.89
(4) Top five clients of other receivable at period-end
In RMB
Ratio in total ending
Ending balance of
Company Nature Ending balance Book age balance of other
bad bet provision
receivables
Huizhou Shenbao
Intercourse funds 128,835,736.38 Within 1 year 54.01%
Technologies
Shenbao Sanjing Intercourse funds 26,205,575.88 Within 1 year 10.99%
Changzhou Shenbao
Chacang E-commence Intercourse funds 19,115,382.18 1-3 years or above 8.02% 8,776,247.89
Co., Ltd
Shenbao Technology
Intercourse funds 3,500,000.00 Within 1 year 1.47%
Centre
Shenshenbao Tea
Intercourse funds 271,396.29 Within 1 year 0.11%
Culture
Total -- 177,928,090.73 -- 74.60% 8,776,247.89
3. Long-term equity investment
In RMB
Items Closing balance Opening balance
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Book balance Impairment Book value Book balance Impairment Book value
Investment for
917,313,300.84 917,313,300.84 911,813,300.84 911,813,300.84
subsidiary
Investment for
associates and 7,579,282.26 2,927,628.53 4,651,653.73 7,736,539.93 2,927,628.53 4,808,911.40
joint venture
Total 924,892,583.10 2,927,628.53 921,964,954.57 919,549,840.77 2,927,628.53 916,622,212.24
(1) Investment for subsidiary
In RMB
Impairment Closing balance
Current
Investee unit Opening balance Current increased Closing balance reserve accrual in of impairment
decreased
the Period reserve
Shenbao
2,550,000.00 2,550,000.00
Properties
Shenbao Industrial
Trading & 5,500,000.00 5,500,000.00
Development
Shenbao Sanjing 80,520,842.36 80,520,842.36
Shenbao
168,551,781.80 168,551,781.80
Huacheng
Huizhou Shenbao
60,000,000.00 60,000,000.00
Technologies
Wuyuan
280,404,134.35 280,404,134.35
Jufangyong
Hangzhou
176,906,952.42 176,906,952.42
Jufangyong
Shenbao
54,676,764.11 54,676,764.11
Technology Center
Shenzhen Shenbao
50,000,000.00 50,000,000.00
Investment
Yunnan Supply
14,500,000.00 5,500,000.00 20,000,000.00
Chain
Pu’er Trading
18,202,825.80 18,202,825.80
Center
Total 911,813,300.84 5,500,000.00 917,313,300.84
(2) Investment for associates and joint venture
In RMB
Opening Increase & decrease in this period Ending Ending
Company
balance Additiona Capital Investme Other Other Cash Impairme Other balance balance
深圳市深宝实业股份有限公司 2017 年半年度报告全文
l reduction nt gains comprehe equity dividend nt accrual of
investmen recognize nsive change or profit impairme
t d under income announce nt
equity adjustmen d to provision
t issued
I. Joint venture
II. Associated enterprise
Shenzhen
Shenbao
(Liaoyuan
57,628.53 57,628.53 57,628.53
)
Industrial
Company
Shenzhen
Shenbao
2,870,000 2,870,000 2,870,000
(Xinmin)
.00 .00 .00
Food Co.,
Ltd
Changzho
u
Shenbao
Chacang
E-comme
nce Co.,
Ltd
Guangzho
u
Shenbao 4,808,911 -157,257. 4,651,653
Mendao .40 67 .73
Tea Co.,
Ltd.
7,736,539 -157,257. 7,579,282 2,927,628
Subtotal
.93 67 .26 .53
7,736,539 -157,257. 7,579,282 2,927,628
Total
.93 67 .26 .53
4. Operating income and operating cost
In RMB
Current Period Last Period
Items
Income Cost Income Cost
Main business income 49,271,727.89 45,987,989.13 62,551,615.75 59,896,259.51
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Other business income 2,581,509.43
Total 49,271,727.89 45,987,989.13 65,133,125.18 59,896,259.51
Other note: Nil
5. Investment earnings
In RMB
Item Current Period Last Period
Investment income of long-term equity
-157,257.67 -564,801.46
based on equity
Financial products revenue 1,252,661.10 665,169.36
Total 1,095,403.43 100,367.90
XVI. Supplementary information
1. Current non-recurring gains/losses
√ Applicable □ Not applicable
In RMB
Item Amount Statement
Gains/losses from the disposal of
-21,015.26
non-current asset
Governmental subsidy calculated into
current gains and losses(while closely related
with the normal business of the Company,
1,002,062.22
excluding the fixed-amount or
fixed-proportion governmental subsidy
according to the unified national standard)
Profit and loss of assets delegation on others’
1,252,661.10
investment or management
Gains and losses from change of fair values
of held-for-transaction financial assets and
financial liabilities except for the effective
hedge business related to normal business of
-990,762.24
the Company, and investment income from
disposal of transactional financial assets and
liabilities and financial assets available for
sale
Other non-operating income and expenditure
370,612.55
except for the aforementioned items
Less: Impact on income tax 11,131.51
Affect on minority equity(after taxation) 4,643.68
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Total 1,597,783.18 --
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure
for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as
recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on
Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss,
explain reasons
□ Applicable √ Not applicable
2. ROE and earnings per share
Earnings per share
Profits during report period Weighted average ROE
Basic EPS (RMB/Share) Basic EPS (RMB/Share)
Net profits belong to common stock
-1.74% -0.0357 -0.0357
stockholders of the Company
Net profits belong to common stock
stockholders of the Company after
-1.89% -0.0390 -0.0390
deducting nonrecurring gains and
losses
3. Difference of accounting data under CAS and IAS
(1) Difference of net profit and net assets disclosed in financial report based on IAS and CAS
√ Applicable □ Not applicable
In RMB
Net profit Net assets
Current Period Last Period Closing balance Opening balance
By Chinese Accounting
-17,759,776.83 -15,099,180.63 991,427,598.24 1,031,768,388.87
Standards
Items and amount adjusted by IAS:
Other adjustment on
regulated funds payable in 1,067,000.00 1,067,000.00
share market
By International
-17,759,776.83 -15,099,180.63 992,494,598.24 1,032,835,388.87
Accounting Standards
深圳市深宝实业股份有限公司 2017 年半年度报告全文
Section XI. Documents available for Reference
The office of board in the company had the complete reference file for CSRC, Shenzhen Stock
Exchange and shareholders of the company to query, including:
1. Text of financial statement with signature and seals of legal person, person in charge of
accounting works and person in charge of accounting institution;
2. Original and official copies of all documents which have been disclosed on Securities Times,
China Securities Journal, and Hong Kong Commercial Daily in the report period;
3. Original text of 2017 Semi-Annual Report with signature of the Chairman.
Shenzhen Shenbao Industrial Co., Ltd.
Chairman: Zheng Yuxi
24 August 2017
