CHANGCHAICOMPANY,LIMITED
INTERIMREPORT2018
August2018
PartIImportantNotes,TableofContentsandDefinitions
TheBoardofDirectors(orthe“Board”),theSupervisoryCommitteeaswellasthedirectors,
supervisorsandseniormanagementofChangchaiCompany,Limited(hereinafterreferredtoasthe
“Company”)herebyguaranteethefactuality,accuracyandcompletenessofthecontentsofthis
Reportanditssummary,andshallbejointlyandseverallyliableforanymisrepresentations,
misleadingstatementsormaterialomissionstherein.
ShiXinkun,theCompany’slegalrepresentative,ZhangXin,theCompany’sGeneralManager,
andJiangHe,headoftheCompany’sfinancialdepartment(equivalenttofinancialmanager)hereby
guaranteethattheFinancialStatementscarriedinthisReportarefactual,accurateandcomplete.
AlltheCompany’sdirectorshaveattendedtheBoardmeetingforthereviewofthisReportand
itssummary.
Anyplansforthefutureandotherforward-lookingstatementsmentionedinthisReportandits
summaryshallNOTbeconsideredasabsolutepromisesoftheCompanytoinvestors.Investorsand
otherstakeholdersshallbesufficientlyawareoftheriskandshalldifferentiatebetween
plans/forecastsandpromises.
TheCompanyhasnointerimdividendplan,eitherintheformofcashorstock.
ThisReportanditssummaryhavebeenpreparedinbothChineseandEnglish.Shouldtherebe
anydiscrepanciesormisunderstandingsbetweenthetwoversions,theChineseversionsshall
prevail.
TableofContents
PartIImportantNotes,TableofContentsandDefinitions ...... 2
PartIICorporateInformationandKeyFinancialInformation ...... 5
PartIIIBusinessSummary ...... 8
PartIVOperatingPerformanceDiscussionandAnalysis ...... 11
PartVSignificantEvents ...... 17
PartVIShareChangesandShareholderInformation ...... 25
PartVIIPreferredShares ...... 30
PartVIIIDirectors,SupervisorsandSeniorManagement ...... 31
PartIXCorporateBonds ...... 32
PartXFinancialReport ...... 33
PartXIDocumentsAvailableforReference ...... 135
Definitions
| Term | Definition |
| “Changchai”,the“Company”or“we” | ChangchaiCompany,Limitedanditsconsolidatedsubsidiaries,exceptwherethecontextotherwiserequires |
| ChangchaiBenniu | ChangzhouChangchaiBenniuDieselEngineFittingsCo.,Ltd. |
| ChangchaiWanzhou | ChangchaiWanzhouDieselEngineCo.,Ltd. |
| HoushengInvestment | ChangzhouHoushengInvestmentCo.,Ltd. |
| HoushengAgriculturalEquipment | ChangzhouChangchaiHoushengAgriculturalEquipmentCo.,Ltd. |
| ChangchaiRobin | ChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd. |
| RMB,RMB’0,000 | ExpressedintheChinesecurrencyofRenminbi,expressedintenthousandRenminbi |
| The“ReportingPeriod”or“CurrentPeriod” | Theperiodfrom1January2018to30June2018 |
PartIICorporateInformationandKeyFinancialInformation
ICorporateInformation
| Stockname | ChangchaiA,ChangchaiB | Stockcode | 000570,200570 |
| Stockexchangeforstocklisting | ShenzhenStockExchange | ||
| CompanynameinChinese | 常柴股份有限公司 | ||
| Abbr.(ifany) | 苏常柴 | ||
| CompanynameinEnglish(ifany) | CHANGCHAICOMPANY,LIMITED | ||
| Abbr.(ifany) | CHANGCHAICO.,LTD. | ||
| Legalrepresentative | ShiXinkun | ||
IIContactInformation
| BoardSecretary | SecuritiesRepresentative | |
| Name | HeJianjiang | |
| Address | 123HuaideMiddleRoad,Changzhou,Jiangsu,China | |
| Tel. | （86）519-68683155 | |
| Fax | （86）519-86630954 | |
| Emailaddress | cchjj@changchai.com |
IIIOtherInformation
1.ContactInformationoftheCompany
Indicatebytickmarkwhetheranychangeoccurredtotheregisteredaddress,officeaddressandtheirzipcodes,
websiteaddressandemailaddressoftheCompanyintheReportingPeriod.
□Applicable√Notapplicable
NochangeoccurredtothesaidinformationintheReportingPeriod,whichcanbefoundinthe2017Annual
Report.
2.MediaforInformationDisclosureandPlacewherethisReportisKept
Indicatebytickmarkwhetheranychangeoccurredtotheinformationdisclosuremediaandtheplaceforkeeping
theCompany’speriodicreportsintheReportingPeriod.
□Applicable√Notapplicable
ThenewspapersdesignatedbytheCompanyforinformationdisclosure,thewebsitedesignatedbytheCSRCfor
disclosingtheCompany’speriodicreportsandtheplaceforkeepingsuchreportsdidnotchangeintheReporting
Period.Thesaidinformationcanbefoundinthe2017AnnualReport.
IVKeyFinancialInformation
Indicatebytickmarkwhetherthereisanyretrospectivelyrestateddatuminthetablebelow.□Yes√No
| H12018 | H12017 | Change(%) | |
| Operatingrevenue(RMB) | 1,186,760,892.26 | 1,308,106,180.92 | -9.28% |
| Netprofitattributabletothelistedcompany’sshareholders(RMB) | 18,638,557.66 | 39,679,158.13 | -53.03% |
| Netprofitattributabletothelistedcompany’sshareholdersbeforeexceptionalitems(RMB) | 17,262,823.25 | 20,774,047.49 | -16.90% |
| Netcashgeneratedfrom/usedinoperatingactivities(RMB) | -5,608,853.15 | 64,379,323.31 | - |
| Basicearningspershare(RMB/share) | 0.03 | 0.07 | -57.14% |
| Dilutedearningspershare(RMB/share) | 0.03 | 0.07 | -57.14% |
| Weightedaveragereturnonnetassets(%) | 0.86% | 1.71% | -0.85% |
| 30June2018 | 31December2017 | Change(%) | |
| Totalassets(RMB) | 3,694,504,040.78 | 3,722,905,285.05 | -0.76% |
| Netassetsattributabletothelistedcompany’sshareholders(RMB) | 2,122,495,960.74 | 2,246,896,857.86 | -5.54% |
VAccountingDataDifferencesunderChineseAccountingStandards(CAS)andInternationalFinancialReportingStandards(IFRS)andForeignAccountingStandards
1.NetProfitandNetAssetDifferencesunderCASandIFRS
□Applicable√Notapplicable
NosuchdifferencesfortheReportingPeriod.
2.NetProfitandNetAssetDifferencesunderCASandForeignAccountingStandards□Applicable√Notapplicable
NosuchdifferencesfortheReportingPeriod.
XIExceptionalGainsandLosses
√Applicable□Notapplicable
Unit:RMB
| Item | ReportingPeriod | Note |
| Gainorlossondisposalofnon-currentassets(inclusiveofimpairmentallowancewrite-offs) | -512,440.14 | |
| Governmentsubsidieschargedtocurrentprofitorloss(exclusiveofgovernmentsubsidiesgivenintheCompany’sordinarycourseofbusinessatfixedquotasoramountsaspergovernment’suniformstandards) | 129,600.00 | |
| Capitaloccupationchargesonnon-financialenterprisesthatarechargedtocurrentprofitorloss | 573,182.00 | |
| Gainorlossonfair-valuechangesintradingfinancialassetsandliabilities&investmentincomefromdisposaloftradingfinancialassetsandliabilitiesandavailable-for-salefinancialassets(exclusiveofeffectiveportionofhedgesthatariseintheCompany’sordinarycourseofbusiness) | 355,091.68 | |
| Othergainsandlossesthatmeetdefinitionofexceptionalgain/loss | 1,114,871.58 | |
| Less:Incometaxeffects | 284,570.71 | |
| Total | 1,375,734.41 | -- |
ExplanationofwhytheCompanyclassifiesagain/lossitemasexceptionalaccordingtothedefinitionintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic—ExceptionalGain/LossItems,orreclassifiesanyexceptionalitemlistedinthesaidexplanatoryannouncementasrecurrent:
□Applicable√NotapplicableNosuchcasesfortheReportingPeriod.
PartIIIBusinessSummary
ICoreBusinessScopeoftheCompanyinReportingPeriod
IstheCompanysubjecttoanydisclosurerequirementsforspecialindustries?
No.
Asamanufacturer,wespecializeinthemanufactureandsaleofdieselengines,dieselenginefittingsand
castings,gasolineengines,gasolineenginefittings,rotovators,walkingtractors,moldsandjigsaswellasthe
assemblyandsaleofdieselengineandgasolineenginesupportingsets.
Wemainlymanufactureandsellsmallandmedium-sizedsingle-cylinderandmulti-cylinderdieselengines
underthebrandof“Changchai”,whichareoftenusedintractors,combine-harvesters,lightcommercialvehicles,
agricultureequipment,small-sizedengineeringmachinery,generatorsets,shipmachines,etc.
IIMaterialChangesinMajorAssets
1.MaterialChangesinMajorAssets
| Majorassets | Reasonformaterialchanges |
| Accountsreceivable | TheendingamountstoodatRMB809,459,781.25,up106.49%fromthebeginningamount,primarilydrivenbytheCompany’smovetoproperlyallowcustomers’buyingoncreditinorderformoremarkets,andbyahigherpercentageofmulti-cylinderdieselenginesintotalsales(multi-cylinderdieselenginecustomersareusuallygivenlongerpaymentdaysfortheyaremostlysupportingmanufacturers) |
| Otherreceivables | TheendingamountstoodatRMB19,703,915.37,up240.02%fromthebeginningamount,primarilydrivenbyariseincurrentreceivablesofHoushengInvestmenttoXuzhouHuadongFoundryFactoryCo.,Ltd.intheReportingPeriod |
| Inventories | TheendingamountstoodatRMB406,509,269.60,down20.02%fromthebeginningamount,primarilydrivenbytheCompany’smovetoadjustitsmanufacturingplansinatimelymanneraccordingtomarketchangesandtoreduceinventoryfunds |
| Othercurrentassets | TheendingamountstoodatRMB19,718,137.84,down53.65%fromthebeginningamount,primarilydrivenbyadeclineinoverpaidVAToftheReportingPeriod |
2.MajorAssetsOverseas□Applicable√Notapplicable
IIICoreCompetitivenessAnalysis
IstheCompanysubjecttoanydisclosurerequirementsforspecialindustries?
No.
1.AdvantagesinBrand
Changchaiisanationalindustrialenterprisewithahistoryofoveronehundredyears.Itisoneoftheearliest
professionalmanufacturersofinternalcombustionenginesinChina.Thebrand"Changchai"istheearliest
domestictrademarkofproductiongoodsknownasChina'swell-knowntrademarks.Thedieselengineof
"Changchai"brandisChina'sbrand-nameproduct.TheenterprisehasbeencertifiedbyISO9000qualitysystem,
ISO14001environmentalmanagementsystem,ISO/TS16949automotiveproductqualitymanagementsystem,
andaccessedtothenationalexport-freeenterprisequalification.Changchaiwashonorablyrankedamong“the
TopOneHundredChineseEnterprisesinEngineeringIndustry”and“ChinaPacesetterEnterpriseofIndustrial
Industry”forseveraltimes,andwasawardedthehonorarytitleof“State-levelEnterpriseofObservingContracts
andKeepingPromise”,“China'sAgriculturalMachineryPartsandComponentsLeadingEnterprises”,“China's
AgriculturalMachineryAAACreditEnterprise”,“JiangsuIndependentIndustriesBrandTop50”,“Quality
ManagementExcellenceAwardofJiangsuProvince”,“MayorQualityAwardofChangzhouCity”,alsoour
companywonasthe10usersmostsatisfiedleadingbrandsin“JingGeng”competitioninthelastfiveyears.In
2017,theCompany’s4G33productwontheQualityNewProductAwardattheChina(Jiangsu)International
AgriculturalMachineryFair,andtheCompanywonthethirdprizeintheChangzhouEntrepreneurship&
InnovationContestorganizedbythelocalgovernment.Besides,theCompanywastitleda“Top100Innovative
EnterprisesofJiangsuProvince”andwontheChinaQualitySincerityEnterpriseAward.In2018,theCompany
wonthe“2017ChinaAgriculturalMachinery—Top50+ExcellentComponentSupplierAward”.Formanyyears,
intheprocessofachievingsteadyeconomicdevelopmentoftheenterprise,wedevelopedinasoundmannerand
cultivatedthe“Changchai”brand,afamoussmalldieselenginebrandofChinawithindependentintellectual
propertyrights
2.AdvantagesinTechnology
TheCompanyhasastate-leveltechnologycenterandpost-doctoralresearchstation,andaresearchcenterof
smallandmedium-powerinternalcombustionengineengineeringandtechnologyinJiangsuProvince.Currently,
itismainlyengagedinproductionofsmallandmedium-powersingle-cylinderandmulti-cylinderdieselengine.It
hasacompleteproductrange,awidepowerlevelcoverage,ahighreputationandintellectualpropertyrightsfor
itsmainproducts.Its4G33TCdieselenginehasbeenincludedintheprovincialcatalogofkeynewtechnologies
andproductstobepromoted.Its4G33TCand3M78dieselengineshavebeenrecognizedas“high-techproducts”
attheprovinciallevel.Its4G33multi-cylinderdieselengineshavewontheAnnualInnovativeProductAwardin
theagriculturalmachineryindustry.Andits3M78lightenginewontheNewProprietaryProductGoldenAward
forEquipmentManufacturingSectorattheprovinciallevel.Currently,theCompanyhasatotalof136patents
grantedbyauthoritiesathomeandabroad,including13inventionpatents.
3.AdvantagesinMarketing
Changchaihasbuiltupasalesservicenetworkcoveringthewholecountry,with11salesbusinessunits,30
salesservicecenters,over1,000servicestationsand600designatedmaintenancestations.Withaperfectdiesel
salesservicenetworksystem,theCompanyisabletoprovidehighquality,efficientandtimelyservicesfor
customers.In2017,theCompanypassedthecustoms’high-levelenterprisecertification,providingmore
assuranceandconvenienceforittoexpandexportsales.
PartIVOperatingPerformanceDiscussionandAnalysis
IOverview
Forthefirsthalfof2018,theCompanysold315.5thousanddieselenginesandrelatedgeneratorsets,aswell
as68.6thousandgasolineenginesandrelatedgeneratorsetsforRMB1,187million,representingnetprofitof
RMB18.9079million(ayear-on-yeardeclineof52.79%).Duringtheperiod,theCompany’soperationswasin
faceofquitemanydifficultiescausedbythecontinueddeepchangeinthedomesticagriculturalmachinerymarket,
includingrisingdieselenginemanufacturingcostsresultedfromincreasinglystringentemissionregulations,as
wellaseffectsofenhancedenvironmentsupervisiononcertaincomponentsuppliers.Nonetheless,despiteall
thesechallenges,theCompanystillmanagedtoachievegoodoperatingresultsamidasharpgrowthdeclineacross
theindustry,thankstothemanagement’sswiftmovestochangeoperationalstrategyalongwiththeentirestaff’s
hardwork.
Firstly,theCompanyhasbecomealargersupplysourceforitsmajordomesticcustomersandthedomestic
marketsofthree-wheelers,mid-and-largetractorsandharvestersinspiteofsharpweakeningacrossthesemarkets.
Meanwhile,itsunitsalesinoverseasemergingmarketssawarise,generatingrevenueofUS$27.77millionduring
theReportingPeriod.
Secondly,theCompanyhaslauncheda4G33V16dieselengineforautomotiveuseprojectunderChina’s
MotorVehicleEmissionStandardsVI,andthetechnologyroadmaphasbeendetermined,withtherelatedproject
designandtheoreticalcomputationwellunderway.Additionally,threetechnologyroadmapsandtheprototypes
basedontwoofthesetechnologyroadmapshavebeencompletedfortheCompany’s4G33V16dieselenginefor
non-roadvehiclesprojectunderChina’sMotorVehicleEmissionStandardsIV,withtheharvestercarryingtestin
progress.
Inall,thefirsthalfof2018sawabiggermarketshareoftheCompany’ssingle-cylinderengines,aswellas
majorbreakthroughsmadebyitscompetitive4G33Engineinmarketsegmentsformid-and-largetractors,crawler
riceharvester,etc.Inthesecondhalfoftheyear,inordertofulfillitsannualtargets,theCompanywillcontinueto
benchmarkitselfagainstthebestoperationsintheindustryandtrytonarrowthegapwiththemonquality-related
losscontrol,productionsafetyandenvironmentalprotection,costandexpensereduction,productioncapacity
utilization,talentdevelopment,etc.
IIAnalysisofCoreBusinesses
See“IOverview”above.
Year-on-yearchangesinkeyfinancialdata:
Unit:RMB
| H12018 | H12017 | Change(%) | Mainreasonforchange | |
| Operatingrevenue | 1,186,760,892.26 | 1,308,106,180.92 | -9.28% | |
| Costofsales | 1,034,354,908.99 | 1,141,392,321.88 | -9.38% | |
| Sellingexpense | 52,228,075.86 | 55,815,356.13 | -6.43% | |
| Administrativeexpense | 62,434,487.46 | 73,398,067.51 | -14.94% | |
| Financecosts | -132,337.12 | 333,451.36 | - | Mainlybecausethatexchangegainsandlossesroseinthereportingperiod |
| Incometaxexpense | 4,352,526.65 | 5,670,998.75 | -23.25% | |
| R&Dexpense | 34,066,872.15 | 34,348,304.81 | -0.82% | |
| Netcashgeneratedfrom/usedinoperatingactivities | -5,608,853.15 | 64,379,323.31 | -- | Mainlybecausethatexchangegainsandaccountsreceivablesroseinthereportingperiod |
| Netcashgeneratedfrom/usedininvestingactivities | -29,078,866.20 | -53,774,916.26 | - | Incaseofthesubsidiaryacquisitioninthesameperiodoflastyear. |
| Netcashgeneratedfrom/usedinfinancingactivities | -8,263,008.91 | -4,410,070.41 | - | Incasethatdebtpaymentsincreasedinthereportingperiod. |
| Netincreaseincashandcashequivalents | -42,950,728.26 | 6,194,336.64 | - | Accountsreceivableincreasedduringthereportingperiod,andthenetcashflowofoperatingactivitiesdecreasedsignificantly |
MaterialchangestotheprofitstructureorsourcesoftheCompanyintheReportingPeriod:
□Applicable√NotapplicableNosuchchangesintheReportingPeriod.Breakdownofcorebusinesses:
Unit:RMB
| Operatingrevenue | Costofsales | Grossprofitmargin | YoYchangeinoperatingrevenue(%) | YoYchangeincostofsales(%) | YoYchangeingrossprofitmargin(%) | |
| Byoperatingdivision | ||||||
| Internalcombustionengine | 1,170,216,312.13 | 1,021,184,769.09 | 12.74% | -9.84% | -10.01% | 0.17% |
| Byproductcategory | ||||||
| Dieselengine | 1,107,401,975.48 | 965,220,321.41 | 12.84% | -14.68% | -14.94% | 0.27% |
| Gasolineengine | 62,814,336.65 | 55,964,447.68 | 10.90% | - | - | - |
| Byoperatingsegment | ||||||
| Domestic | 992,724,179.13 | 848,431,676.04 | 14.54% | -13.57% | -14.20% | 0.63% |
| Overseas | 177,492,133.00 | 172,753,093.05 | 2.67% | 15.85% | 15.50% | 0.41% |
IIIAnalysisofNon-CoreBusinesses
□Applicable√Notapplicable
IVAnalysisofAssetsandLiabilities
1.MaterialChangesinAssetComposition
Unit:RMB
| 30June2018 | 30June2017 | Changeinpercentage(%) | Reasonformaterialchange | |||
| Amount | As%oftotalassets | Amount | As%oftotalassets | |||
| Monetaryassets | 708,692,252.73 | 18.58% | TheendingamountstoodatRMB445,858,926.17,a37.09%declinefromayearago,forinordertoexpandthemarket,creditsalesincreasedandcapitalwithdrawaldecreased.Also,theoperatingincomedecreasedduringthereportingperiod. | |||
| Accountsreceivable | 745,551,114.30 | 19.55% | ||||
| Inventories | 448,832,816.34 | 11.77% | ||||
| Investmentproperty | 53,968,518.83 | 1.41% | ||||
| Long-termequity | 0.00 | 0.00% | ||||
| investments | |||||
| Fixedassets | 587,331,046.88 | 15.40% | |||
| Constructioninprogress | 69,532,401.98 | 1.82% | |||
| Short-termborrowings | 23,000,000.00 | 0.60% | |||
| Long-termborrowings | 0.00 | 0.00% | Riseinlong-termborrowingsoftheCompanyastheparent |
2.AssetsandLiabilitiesatFairValue√Applicable□Notapplicable
Unit:RMB
| Item | Beginningamount | Gain/lossonfair-valuechangesinReportingPeriod | Cumulativefair-valuechangeschargedtoequity | ImpairmentallowanceforReportingPeriod | PurchasedinReportingPeriod | SoldinReportingPeriod | Endingamount |
| Financialassets | |||||||
| Available-for-salefinancialassets | 685,837,500.00 | -148,468,500.00 | 388,870,325.00 | 537,369,000.00 | |||
| Subtotaloffinancialassets | 685,837,500.00 | -148,468,500.00 | 388,870,325.00 | 537,369,000.00 | |||
| Totalofabove | 685,837,500.00 | -148,468,500.00 | 388,870,325.00 | 537,369,000.00 | |||
| Financialliabilities | 0.00 | 0.00 |
SignificantchangesinthemeasurementattributesofthemainassetsintheReportingPeriod:
□Yes√No
3.RestrictedAssetRightsasofEndofReportingPeriod
| Item | Endingcarryingvalue | Reasons |
| Monetaryfunds | 163,546,000.00 | Cashdepositsofbankacceptancebill |
| Houseconstructions | 12,255,901.93 | Pledgeforbankloans |
| Landuseright | 18,676,590.92 | Pledgeforbankloans |
| Total | 194,478,492.85 |
VInvestmentsMade
1.TotalInvestmentsMade□Applicable√Notapplicable2.SignificantEquityInvestmentsMadeinReportingPeriod□Applicable√Notapplicable3.SignificantNon-EquityInvestmentsOngoingintheReportingPeriod□Applicable√Notapplicable4.FinancialInvestments(1)SecuritiesInvestments□Applicable√Notapplicable
NosuchcasesintheReportingPeriod.(2)InvestmentsinDerivativeFinancialInstruments□Applicable√Notapplicable
NosuchcasesintheReportingPeriod.
VISaleofMajorAssetsandEquityInterests
1.SaleofMajorAssets□Applicable√Notapplicable
NosuchcasesintheReportingPeriod.2.SaleofMajorEquityInterests□Applicable√NotapplicableVIIMainControlledandJointStockCompanies√Applicable□Notapplicable
Mainsubsidiariesandstock-participatingcompaniesthathaveaninfluenceonthenetprofitoftheCompanyover10%
Unit:RMB
| Company | Compan | Main | Registered | Total | Net | Operating | Operatin | Net |
| name | yvariety | business | capital | assets | assets | revenues | gprofit | profit |
| ChangchaiBenniu | Subsidiary | Productionofdieselengineaccessories | 55,063,000.00 | 173,090,757.34 | 90,943,730.98 | 98,950,239.52 | -530,385.96 | -284,052.73 |
| ChangchaiWanzhou | Subsidiary | Dieselengineassembly | 85,000,000.00 | 138,885,758.78 | 115,958,535.07 | 27,436,185.91 | 709,812.99 | 603,341.04 |
| HoushengInvestment | Subsidiary | Externalinvestmentandconsulting | 30,000,000.00 | 37,000,059.53 | 36,139,912.80 | 476,699.03 | 638,553.01 | 460,546.22 |
| HoushengAgriculturalEquipment | Subsidiary | agriculturalmachineryproductofricetransplanteretc. | 10,000,000.00 | 35,143,062.92 | 7,970,762.43 | 11,787,889.35 | 560,296.88 | 560,296.88 |
| ChangchaiRobin | Subsidiary | Gasolineenginesassembly | 37,250,000.00 | 90,136,078.85 | 73,149,824.15 | 62,814,336.65 | 4,027,828.33 | 3,091,890.16 |
SubsidiariesobtainedordisposedintheReportingPeriod:
□Applicable√Notapplicable
VIIIStructuredBodiesControlledbytheCompany
□Applicable√Notapplicable
IXPerformanceForecastforJanuary-September2018
WarningofpossiblelossorconsiderableYoYchangeintheaccumulativenetprofitmadeduringthe
period-beginningtotheendofthenextreportingperiod,aswellasthereasons:
□Applicable√Notapplicable
XRisksFacingtheCompanyandCountermeasures
1.Marketrisk
ThemainbusinessoftheCompanyissinglewiththeproductionandsalesofthesingle-cylinderleading
productsdeclininggreatly,andthecurrentagriculturalmachineryindustryisinaperiodofdeepadjustment,
whichmakesthemarketsalesmoredifficult.
Countermeasures:Intermsofmainbusiness,theCompanyshallfocusonintelligenceandtheinternetof
thingswhilestrengtheningtheexistingcompetitiveproducts.Intermsofmarketing,theCompanyshallfurther
strengthentheconstructionofsalesteam,improvetheproducttechnicalknowledgeandsalescommunication
skillsofthemarketingteam,andspeedupthemarketingofnewproducts.
2.Procurementrisk
Theseverepressureonsafetyandenvironmentalprotectionhasledtothehighercostsofpartsmanufacturing,
moredemandsforpriceadjustmentbysuppliers,andtheincreasedinstabilityofsuppliers.Therearesomerisksin
theprocurementandsupplyofparts.
Countermeasures:TheCompanyshallhighlypayattentiontotheoperatingrisksofsuppliers,thesuppliers’
dynamicwithrelativelyhighsupplyofparts,andthesuppliers’dynamicwithlittleenthusiasmforcooperationor
whosebusinessisbeingadjusted,andformulatetargeteddisposalplans.
3.Qualityrisk
WiththeswitchofStateIIIelectroniccontrolmodels,therequirementsonthequalityindexoftherelevant
partsofelectroniccontroldieselenginesandthematchingqualityofthewholeengineareincreasinglyhigh.
Countermeasures:Takingthequalityasthecenter,theCompanyshall,basedonfullparticipation,givefull
playtotheadvantagesofcomparativelyperfectqualitymanagementsystemandqualitymanagementteamwith
goodquality.Closelyfocusingonthemarketdemandsandtheexistingproblems,theCompanyshallfurthercarry
outtheresponsibilityandstrengthensupervision,andstrengthencomprehensivelythequalitymanagementinthe
respectsofqualityplanning,qualitycontrol,qualityassurance,andqualityimprovement,andetc.
PartVSignificantEvents
IAnnualandExtraordinaryGeneralMeetingConvenedduringtheReportingPeriod
1.GeneralMeetingConvenedduringtheReportingPeriod
| Meeting | Type | Investorparticipationratio | Conveneddate | Disclosuredate | Indextodisclosedinformation |
| The2017AnnualGeneralMeeting | AnnualGeneralMeeting | 31.18% | 17May2018 | 18May2018 | 2018-014 |
2.ExtraordinaryGeneralMeetingConvenedatRequestofPreferenceShareholderswithResumedVotingRights□Applicable√Notapplicable
IIInterimDividendPlanfortheReportingPeriod
□Applicable√NotapplicableTheCompanyhasnointerimdividendplan.
IIICommitmentsoftheCompany’sActualController,Shareholders,ConnectedPartiesandAcquirer,aswellastheCompanyandOtherCommitmentMakers,FulfilledintheReportingPeriodorstillOngoingatPeriod-End
√Applicable□Notapplicable
| Commitment | Commitmentmaker | Typeofcommitment | Contents | Dateofcommitmentmaking | Periodofcommitment | Fulfillment |
| Othercommitmentsmadetominorityshareholders | ChangchaiCompany,Limited | bonus | RewardsPlanforShareholdersinNextThreeYears(2017-2019):Underthepremiseofpositivedistributiveprofit(remainingafter-taxprofitsaftermakingupforthelossandextractingforthecommonreserves)inthisyearorhalfyearandabundantmoneyflowandnoinfluenceonthefollowing-upgoingconcernaftercashbonus,theprofitsallocatedbycasheveryyearshouldn’tbelowerthan10%oftheallocableprofitsfromtheCompanyastheparent.Meanwhile,theaccumulatedallocableprofitsbycashinthearbitrarycontinuousthreeaccountingyearsshouldnotbelowerthan30%oftheannualaverageallocableprofitsinthosethreeyears. | 11May2017 | Year2017-2019 | Implementinginanormalway |
| Fulfilledontime | Yes | |||||
| Specificreasonsforfailingtofulfill | N/A | |||||
IVEngagementandDisengagementofCPAsFirm
Hastheinterimfinancialreportbeenaudited?□Yes√NoThisinterimReportisunaudited.
VExplanationsGivenbyBoardofDirectorsandSupervisoryCommitteeRegarding“ModifiedAuditor’sReport”IssuedbyCPAsFirmfortheReportingPeriod
□Applicable√Notapplicable
VIExplanationsGivenbyBoardofDirectorsRegarding“ModifiedAuditor’sReport”IssuedforLastYear
□Applicable√Notapplicable
VIIBankruptcyandRestructuring
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
VIIILegalMatters
Significantlawsuitsorarbitrations:
√Applicable□Notapplicable
commitmentsontimeandplansfornextstep(ifany)
Basicinformationof
thelawsuit(arbitration)
| Basicinformationofthelawsuit(arbitration) | Amountinvolvedinthelawsuit(arbitration)(RMB’0,000) | Formingtheestimatedliabilitiesornot | Progressofthelawsuit(arbitration) | Trialresultandinfluenceofthelawsuit(arbitration) | Enforcementonthejudgmentofthelawsuit(arbitration) | Disclosuredate | Disclosureindex |
| AboutthelawsuitcaseofShandongHongliGroupCo.,Ltd.,theaccusedcompanyowedaccumulativelyRMB14.36milliontotheCompany.The | 1,436 | No | Judgedforthesecondtrial | N/A | Underthecompulsoryexecutionbythecourtandintheprocessofliquidationand |
| CompanysuedtoChangzhouIntermediatePeople’sCourtin2001andsuedforcompulsoryexecutioninApril2002.Currently,thedefendanthasstartedthebankruptcyprocedure. | bankruptcy |
Otherlegalmatters:
□Applicable√Notapplicable
IXPunishmentsandRectifications
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
XCreditConditionsoftheCompanyaswellasitsControllingShareholderandActualController
□Applicable√Notapplicable
XIEquityIncentivePlans,EmployeeStockOwnershipPlansorOtherIncentiveMeasuresforEmployees
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
XIISignificantConnectedTransactions
1.ConnectedTransactionsRelevanttoRoutineOperations□Applicable√Notapplicable
NosuchcasesintheReportingPeriod.2.ConnectedTransactionsRegardingPurchaseorSalesofAssetsorEquityInterests□Applicable√Notapplicable
NosuchcasesintheReportingPeriod.
3.ConnectedTransactionsRegardingJointInvestmentsinThirdParties□Applicable√Notapplicable
NosuchcasesintheReportingPeriod.4.CreditsandLiabilitieswithConnectedParties□Applicable√Notapplicable
NosuchcasesintheReportingPeriod.5.OtherSignificantConnectedTransactions□Applicable√Notapplicable
NosuchcasesintheReportingPeriod.
XIII.ParticularsabouttheNon-operatingOccupationofFundsbytheControllingShareholderandOtherConnectedPartiesoftheCompany
□Applicable√NotapplicableTheCompanywasnotinvolvedinthenon-operatingoccupationoffundsbythecontrollingshareholderandotherconnectedpartiesduringtheReportingPeriod.
XIV.SignificantContractsandExecution
1.Entrustment,ContractingandLeasing(1)Entrustment□Applicable√Notapplicable
NosuchcasesintheReportingPeriod.(2)Contracting□Applicable√Notapplicable
NosuchcasesintheReportingPeriod.(3)Leasing□Applicable√Notapplicable
NosuchcasesintheReportingPeriod.2.SignificantGuarantees√Applicable□Notapplicable
(1)Guarantees
Unit:RMB’0,000
| GuaranteesprovidedbytheCompanyforexternalparties(excludingthoseforsubsidiaries) | ||||||||
| Guaranteedparty | Disclosuredateoftheguaranteelineannouncement | Lineofguarantee | Actualoccurrencedate(dateofagreementsigning) | Actualguaranteeamount | Typeofguarantee | Termofguarantee | Dueornot | Guaranteeforaconnectedpartyornot |
| GuaranteesprovidedbytheCompanyforsubsidiaries | ||||||||
| Guaranteedparty | Disclosuredateoftheguaranteelineannouncement | Lineofguarantee | Actualoccurrencedate(dateofagreementsigning) | Actualguaranteeamount | Typeofguarantee | Termofguarantee | Dueornot | Guaranteeforaconnectedpartyornot |
| ChangzhouChangchaiHoushengAgriculturalEquipmentCo.,Ltd. | 29November2017 | 2,000 | 2,000 | Joint-liability | No | No | No | |
| TotalguaranteelineforsubsidiariesapprovedduringtheReportingPeriod(B1) | 2,000 | TotalactualguaranteeamountforsubsidiariesduringtheReportingPeriod(B2) | 2,000 | |||||
| TotalapprovedguaranteelineforsubsidiariesattheendoftheReportingPeriod(B3) | 2,000 | TotalactualguaranteebalanceforsubsidiariesattheendoftheReportingPeriod(B4) | 2,000 | |||||
| Guaranteesbetweensubsidiaries | ||||||||
| Guaranteedparty | Disclosuredateoftheguaranteelineannouncement | Lineofguarantee | Actualoccurrencedate(dateofagreementsigning) | Actualguaranteeamount | Typeofguarantee | Termofguarantee | Dueornot | Guaranteeforaconnectedpartyornot |
| Totalguaranteeamount(totaloftheabove-mentionedthreekindsofguarantees) | |||
| TotalguaranteelineapprovedduringtheReportingPeriod(A1+B1+C1) | 2,000 | TotalactualguaranteeamountduringtheReportingPeriod(A2+B2+C2) | 2,000 |
| TotalapprovedguaranteelineattheendoftheReportingPeriod(A3+B3+C3) | 2,000 | TotalactualguaranteebalanceattheendoftheReportingPeriod(A4+B4+C4) | 2,000 |
| Proportionofthetotalactualguaranteeamount(A4+B4+C4)innetassetsoftheCompany | 0.94% | ||
| Ofwhich: | |||
| Amountofguaranteesprovidedforshareholders,theactualcontrollerandtheirconnectedparties(D) | 0 | ||
| Amountofdebtguaranteesprovideddirectlyorindirectlyforentitieswithaliability-to-assetratioover70%(E) | 0 | ||
| Portionofthetotalguaranteeamountinexcessof50%ofnetassets(F) | 0 | ||
| Totalamountofthethreekindsofguaranteesabove(D+E+F) | 0 | ||
| JointresponsibilitiespossiblyborneintheReportingPeriodforundueguarantees(ifany) | N/A | ||
| Provisionofexternalguaranteesinbreachoftheprescribedprocedures(ifany) | N/A | ||
(2)IllegalProvisionofGuaranteesforExternalParties□Applicable√Notapplicable
NosuchcasesintheReportingPeriod.3.OtherSignificantContracts□Applicable√Notapplicable
NosuchcasesintheReportingPeriod.
XV.SocialResponsibilities
1.SignificantEnvironmentProtectionIndicatebytickmarkwhethertheCompanyoranyofitssubsidiariesisaheavilypollutingbusinessidentifiedby
theenvironmentalprotectionauthoritiesofChinaNo
TheCompanyanditssubsidiariesarenottheheavilypollutingbusinessidentifiedbytheenvironmental
protectionauthoritiesofChinaduringtheReportingPeriod.TheCompanyattachesgreatimportancetothework
ofenvironmentalprotection,andrequiresthesubsidiariestobuildcorrespondingenvironmentalprotection
facilitiesaccordingtotheactualsituationofproductionandoperation,strictlycontrollingthepollutants,like
“wastegas,wastewater,andwasteresidue”generatedfromtheproductionprocess.
2.TargetedMeasuresTakentoHelpPeopleLiftThemselvesOutofPovertyTherewerenosuchcasesintheReportingPeriod,andalsonosubsequentplans.
XVI.OtherSignificantEvents
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
XVII.SignificantEventsofSubsidiaries
□Applicable√Notapplicable
PartVIShareChangesandShareholderInformation
I.ChangesinShares
1.ChangesinShares
Unit:share
| Beforethechange | Increase/decrease(+/-) | Afterthechange | |||||||
| Amount | Proportion | Newlyissueshare | Bonusshares | CapitalizedCapitalreserves | Others | Subtotal | Amount | Proportion | |
| I.Restrictedshares | 0 | 0.00% | 0 | 0.00% | |||||
| 1.Sharesheldbythestate | 0 | 0.00% | 0 | 0.00% | |||||
| 2.Sharesheldbystate-ownLegal-person | 0 | 0.00% | 0 | 0.00% | |||||
| 3.Sharesheldbyotherdomesticinvestors | 0 | 0.00% | 0 | 0.00% | |||||
| Amongwhich:sharesheldbydomesticlegalperson | 0 | 0.00% | 0 | 0.00% | |||||
| Sharesheldbydomesticnaturalperson | 0 | 0.00% | 0 | 0.00% | |||||
| 4.Overseashareholdings | 0 | 0.00% | 0 | 0.00% | |||||
| Amongwhich:sharesheldbyoversealegalperson | 0 | 0.00% | 0 | 0.00% | |||||
| Sharesheldbyoverseanaturalperson | 0 | 0.00% | 0 | 0.00% | |||||
| II.Sharesnotsubjecttotradingmoratorium | 561,374,326 | 100.00% | 561,374,326 | 100.00% | |||||
| 1.RMBordinaryshares | 411,374,326 | 73.28% | 411,374,326 | 73.28% | |||||
| 2.Domesticallylistedforeignshares | 150,000,000 | 26.72% | 150,000,000 | 26.72% | |||||
| 3.Oversealistedforeignshares | 0 | 0.00% | 0 | 0.00% | |||||
| 4.Other | 0 | 0.00% | 0 | 0.00% | |
| III.Totalshares | 561,374,326 | 100.00% | 561,374,326 | 100.00% |
Reasonforthechangeinshares□Applicable√NotapplicableApprovalofthechangeinshares□Applicable√NotapplicableTransferofshareownership□Applicable√NotapplicableEffectsofthechangeinsharesonthebasicEPS,dilutedEPS,netassetspershareattributabletoordinaryshareholdersoftheCompanyandotherfinancialindexesoverthelastyearandlastperiod□Applicable√NotapplicableOthercontentsthattheCompanyconsiderednecessaryorwererequiredbythesecuritiesregulatoryauthoritiestodisclose□Applicable√Notapplicable
2.ChangesinRestrictedShares□Applicable√Notapplicable
II.IssuanceandListingofSecurities
□Applicable√Notapplicable
III.TotalNumberofShareholdersandTheirShareholding
Unit:share
| TotalnumberofshareholdersattheReportingPeriod | 50,159 | Totalnumberofpreferredstockholderwithvoterightrestored(ifany)(seeNote8) | 0 | |||||||||
| Shareholdingofordinaryshareholdersholdingmorethan5%sharesorthetop10ofordinaryshareholders | ||||||||||||
| Nameofshareholder | Natureofshareholder | Holdingpercentage(%) | NumberofshareholdingattheendoftheReportingPeriod | IncreaseanddecreaseofsharesduringReportingPeriod | Numberofsharesheldsubjecttotradingmoratorium | Numberofsharesheldsubjecttotradingmoratorium | Pledgedorfrozenshares | |||||
| Statusofshares | Amount | |||||||||||
| State-ownedAssetsSupervisionandAdministration | State-ownedlegalperson | 30.43% | 170,845,236 | 170,845,236 | ||||||||
| CommissionofChangzhouMunicipalPeople’sGovernment | ||||||||
| KGIAsiaLimited | Foreignlegalperson | 0.57% | 3,189,845 | 3,189,845 | ||||
| ZhangRuirong | Domesticnaturalperson | 0.32% | 1,789,800 | 1,789,800 | ||||
| WanPeizhong | Domesticnaturalperson | 0.29% | 1,645,800 | 1,645,800 | ||||
| HuangGuoliang | Domesticnaturalperson | 0.27% | 1,528,891 | 1,528,891 | ||||
| HuWenyong | Domesticnaturalperson | 0.27% | 1,515,066 | 1,515,066 | ||||
| LiSuinan | Domesticnaturalperson | 0.24% | 1,356,000 | 1,356,000 | ||||
| LiangNianyou | Domesticnaturalperson | 0.24% | 1,348,452 | 1,348,452 | ||||
| VanguardTotalInternationalStockIndexFund | Foreignlegalperson | 0.24% | 1,344,607 | 1,344,607 | ||||
| XiongShunbao | Domesticnaturalperson | 0.23% | 1,282,251 | 1,282,251 | ||||
| Strategicinvestorsorthegenerallegalpersonduetotheplacementofnewsharesbecomethetop10shareholders(ifany)(seeNote3) | Naught | |||||||
| Explanationonconnectedrelationshipor/andpersons | Itisunknownwhetherthereisanyconnectedpartyoracting-in-concertpartyasdefinedintheMeasuresfortheAdministrationofDisclosureofShareholderEquityChangesofListedCompaniesamongthetop10tradableshareholdersorthetop10unrestrictedtradableshareholders. | |||||||
| Particularsaboutsharesheldbytop10ordinaryshareholdersnotsubjecttotradingmoratorium | ||||||||
| Nameofshareholder | Numberofsharesheldnotsubjecttotradingmoratoriumattheendoftheperiod | Typeofshare | ||||||
| Typeofshare | Amount | |||||||
| State-ownedAssetsSupervisionandAdministrationCommission | 170,845,236 | RMBordinaryshares | ||||||
| ofChangzhouMunicipalPeople’sGovernment | |||
| KGIAsiaLimited | 3,189,845 | Domesticallylistedforeignshares | |
| ZhangRuirong | 1,789,800 | RMBordinaryshares | |
| WanPeizhong | 1,645,800 | RMBordinaryshares | |
| HuangGuoliang | 1,528,891 | Domesticallylistedforeignshares | |
| HuWenyong | 1,515,066 | Domesticallylistedforeignshares | |
| LiSuinan | 1,356,000 | Domesticallylistedforeignshares | |
| LiangNianyou | 1,348,452 | RMBordinaryshares | |
| VanguardTotalInternationalStockIndexFund | 1,344,607 | Domesticallylistedforeignshares | |
| XiongShunbao | 1,282,251 | RMBordinaryshares | |
| Explanationonconnectedrelationshipamongthetoptenshareholdersoftradablesharenotsubjecttotradingmoratorium,aswellasamongthetoptenshareholdersoftradablesharenotsubjecttotradingmoratoriumandtoptenshareholders,orexplanationonacting-in-concert | Itisunknownwhetherthereisanyconnectedpartyoracting-in-concertpartyasdefinedintheMeasuresfortheAdministrationofDisclosureofShareholderEquityChangesofListedCompaniesamongthetop10tradableshareholdersorthetop10unrestrictedtradableshareholders. | ||
| Particularaboutshareholderparticipateinthesecuritieslendingandborrowingbusiness(ifany)(seeNote4) | ShareholderXiongShunbaoholds1,282,251sharesoftheCompanythroughtheclientaccountofcollateralsecuritiesinGuolianSecuritiesCo.,Ltd.formargintrading,accountingforastakeof0.23%. | ||
DidanyoftheCompany’stop10ordinaryshareholdersortop10non-restrictedordinaryshareholdersconductanyagreedbuy-backintheReportingPeriod?□Yes√NoTherewasnoshareholderofacompanyconductthetransactionofrepurchaseundertheagreementduringtheReportingPeriod.
IV.ChangeoftheControllingShareholderortheActualController
ChangeofthecontrollingshareholderduringtheReportingPeriod.□Applicable√NotapplicableThecontrollingshareholderdidnotchangeduringtheReportingPeriod.ChangeoftheactualcontrollerduringtheReportingPeriod□Applicable√NotapplicableTheactualcontrollerdidnotchangeduringtheReportingPeriod.
V.ExplanationsforFreeofChargeforTransferringControllingShareholders’State-owned
Equities
State-ownedAssetsSupervisionandAdministrationCommissionofChangzhouMunicipalPeople’s
Government,TheCompany’scontrollingshareholder,signedtheAgreementofFreeofChargeforTransferring
SharesofChangchaiCompany,LimitedwithChangzhouInvestmentGroupCo.,Ltdon16August2018.
State-ownedAssetsSupervisionandAdministrationCommissionofChangzhouMunicipalPeople’sGovernment
plannedtotransfertheholding170,845,236sharesofChangchaiCompany,LimitedwithnochargetoChangzhou
InvestmentGroupCo.,Ltd,whichwasapprovedbyChangzhouMunicipalPeople’sGovernment.Itstillneedsto
beapprovedbyJiangsuProvincialPeople’sGovernmentState-ownedAssetsSupervisionandAdministration
Commission,andneedsCSRCtoagreetoexemptChangzhouInvestmentGroupCo.,Ltdfromtheobligationto
purchasetheholdingsharesoftheCompanybyfreetransfer,whichisuncertain.Pleasepayattentiontothe
investmentrisk.Fordetails,seeReminderofFreeofChargeforTransferringControllingShareholders’
State-ownedEquities(No.2018-015)andAnnouncementontheProgressofFreeofChargeforTransferring
ControllingShareholders’State-ownedEquities(No.2018-020)disclosedon1June2018and17August2018.
Afterthistransfer,ChangzhouInvestmentGroupCo.,LtdwillbethecontrollingshareholderoftheCompany
withnochangesintheactualcontrolleroftheCompany.
PartVIIPreferredShares
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
PartVIIIDirectors,SupervisorsandSeniorManagement
I.ChangesinShareholdingofDirectors,SupervisorsandSeniorManagementStaff
□Applicable√NotapplicableTherewasnochangeinshareholdingofDirectors,Supervisors,SeniorManagementStaffsandEmployees,fordetails,pleasereferto2017AnnualReport
II.ParticularsaboutChangesofDirectors,SupervisorsandSeniorExecutives
□Applicable√NotapplicableTherewasnochangeinDirectors,Supervisors,SeniorManagementStaffsandEmployees,fordetails,pleasereferto2017AnnualReport
PartIXCorporateBonds
Arethereanycorporatebondspubliclyofferedandlistedonthestockexchange,whichwereunduebeforetheapprovaldateofthisReportorwereduebutcouldnotberedeemedinfull?No
PartXFinancialReport
I.AuditReport
Hasthisinterimreportbeenaudited?□Yes√NoTheinterimfinancialreporthasnotbeenaudited.
II.FinancialStatements
Currencyunitforthestatementsinthenotestothesefinancialstatements:RMB1.ConsolidatedBalanceSheetPreparedbyChangchaiCompany,Limited
30June2018
Unit:RMB
| Item | 30June2018 | 31December2017 |
| Currentassets: | ||
| Monetaryassets | 445,858,926.17 | 430,305,367.71 |
| Settlementreserve | ||
| Interbankloansgranted | ||
| Financialassetsatfairvaluethroughprofitorloss | ||
| Derivativefinancialassets | ||
| Notesreceivable | 556,766,558.95 | 716,404,345.57 |
| Accountsreceivable | 809,459,781.25 | 392,010,953.55 |
| Prepayments | 21,406,189.77 | 17,781,007.77 |
| Premiumsreceivable | ||
| Reinsurancereceivables | ||
| Receivablereinsurancecontractreserve | ||
| Interestreceivable | ||
| Dividendsreceivable | ||
| Otherreceivables | 19,703,915.37 | 5,794,971.22 |
| Financialassetspurchasedunderresaleagreements | ||
| Inventories | 406,509,269.60 | 508,246,807.48 |
| Assetsclassifiedasheldforsale |
| Currentportionofnon-currentassets | ||
| Othercurrentassets | 19,718,137.84 | 42,540,184.05 |
| Totalcurrentassets | 2,279,422,778.95 | 2,113,083,637.35 |
| Non-currentassets: | ||
| Loansandadvancestocustomers | ||
| Available-for-salefinancialassets | 645,256,487.16 | 793,522,639.04 |
| Held-to-maturityinvestments | ||
| Long-termreceivables | ||
| Long-termequityinvestments | ||
| Investmentproperty | 51,760,178.03 | 52,864,348.43 |
| Fixedassets | 525,895,299.42 | 560,049,970.50 |
| Constructioninprogress | 86,375,849.20 | 94,581,989.06 |
| Engineeringmaterials | ||
| Proceedsfromdisposaloffixedassets | ||
| Productivelivingassets | ||
| Oilandgasassets | ||
| Intangibleassets | 104,786,494.21 | 107,795,746.86 |
| R&Dexpense | ||
| Goodwill | ||
| Long-termprepaidexpense | ||
| Deferredincometaxassets | 1,006,953.81 | 1,006,953.81 |
| Othernon-currentassets | ||
| Totalnon-currentassets | 1,415,081,261.83 | 1,609,821,647.70 |
| Totalassets | 3,694,504,040.78 | 3,722,905,285.05 |
| Currentliabilities: | ||
| Short-termborrowings | 28,700,000.00 | 24,900,000.00 |
| Borrowingsfromcentralbank | ||
| Customerdepositsanddepositsfrombanksandotherfinancialinstitutions | ||
| Interbankloansobtained | ||
| Financialliabilitiesatfairvaluethroughprofitorloss | ||
| Derivativefinancialliabilities | ||
| Notespayable | 531,820,000.00 | 347,070,500.00 |
| Accountspayable | 550,059,148.32 | 616,228,500.18 |
| Advancesfromcustomers | 46,605,126.00 | 40,153,984.91 |
| Financialassetssoldunderrepurchaseagreements | ||
| Handlingchargesandcommissionspayable | ||
| Payrollpayable | 25,246,667.17 | 51,247,112.66 |
| Taxespayable | 2,603,909.98 | 4,017,920.78 |
| Interestpayable | ||
| Dividendspayable | 3,891,433.83 | 3,891,433.83 |
| Otherpayables | 207,820,806.39 | 192,094,243.08 |
| Reinsurancepayables | ||
| Insurancecontractreserve | ||
| Payablesforactingtradingofsecurities | ||
| Payablesforunderwritingofsecurities | ||
| Liabilitiesdirectlyassociatedwithassetsclassifiedasheldforsale | ||
| Currentportionofnon-currentliabilities | ||
| Othercurrentliabilities | 2,886,117.93 | 2,028,937.59 |
| Totalcurrentliabilities | 1,399,633,209.62 | 1,281,632,633.03 |
| Non-currentliabilities: | ||
| Long-termborrowings | 21,500,000.00 | 21,500,000.00 |
| Bondspayable | ||
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Long-termpayables | ||
| Long-termpayrollpayable | ||
| Specificpayables | ||
| Provisions | ||
| Deferredincome | 60,992,858.46 | 60,992,858.46 |
| Deferredincometaxliabilities | 70,139,504.39 | 92,409,779.39 |
| Othernon-currentliabilities | ||
| Totalnon-currentliabilities | 152,632,362.85 | 174,902,637.85 |
| Totalliabilities | 1,552,265,572.47 | 1,456,535,270.88 |
| Owners’equity: | ||
| Sharecapital | 561,374,326.00 | 561,374,326.00 |
| Otherequityinstruments | ||
| Including:Preferredshares | ||
| Perpetualbonds |
| Capitalreserves | 164,328,665.43 | 164,328,665.43 |
| Less:Treasuryshares | ||
| Othercomprehensiveincome | 388,870,325.00 | 515,068,550.00 |
| Specificreserve | 13,289,059.21 | 13,289,059.21 |
| Surplusreserves | 313,705,210.16 | 313,705,210.16 |
| Generalreserve | ||
| Retainedprofits | 680,928,374.94 | 679,131,047.06 |
| TotalequityattributabletoownersoftheCompanyastheparent | 2,122,495,960.74 | 2,246,896,857.86 |
| Non-controllinginterests | 19,742,507.57 | 19,473,156.31 |
| Totalowners’equity | 2,142,238,468.31 | 2,266,370,014.17 |
| Totalliabilitiesandowners’equity | 3,694,504,040.78 | 3,722,905,285.05 |
Legalrepresentative:ShiXinkunGeneralManager:ZhangXinHeadoftheaccountingdepartment:JiangHe
2.BalanceSheetoftheCompanyastheParent
Unit:RMB
| Item | 30June2018 | 31December2017 |
| Currentassets: | ||
| Monetaryassets | 411,629,994.62 | 366,907,287.64 |
| Financialassetsatfairvaluethroughprofitorloss | ||
| Derivativefinancialassets | ||
| Notesreceivable | 536,623,558.95 | 711,474,345.57 |
| Accountsreceivable | 722,699,465.14 | 319,887,051.70 |
| Prepayments | 5,420,658.51 | 9,815,561.98 |
| Interestreceivable | ||
| Dividendsreceivable | ||
| Otherreceivables | 8,853,702.55 | 11,798,211.40 |
| Inventories | 275,613,625.66 | 376,814,388.82 |
| Assetsclassifiedasheldforsale | ||
| Currentportionofnon-currentassets | ||
| Othercurrentassets | 20,692,057.15 | |
| Totalcurrentassets | 1,960,841,005.43 | 1,817,388,904.26 |
| Non-currentassets: | ||
| Available-for-salefinancialassets | 637,369,000.00 | 785,837,500.00 |
| Held-to-maturityinvestments | ||
| Long-termreceivables | ||
| Long-termequityinvestments | 231,752,730.03 | 231,752,730.03 |
| Investmentproperty | 51,760,178.03 | 52,864,348.43 |
| Fixedassets | 424,524,204.16 | 453,155,359.47 |
| Constructioninprogress | 86,029,057.82 | 93,681,793.26 |
| Engineeringmaterials | ||
| Proceedsfromdisposaloffixedassets | ||
| Productivelivingassets | ||
| Oilandgasassets | ||
| Intangibleassets | 73,665,189.30 | 75,623,219.49 |
| R&Dexpense |
| Goodwill | ||
| Long-termprepaidexpense | ||
| Deferredincometaxassets | 934,554.06 | 934,554.06 |
| Othernon-currentassets | ||
| Totalnon-currentassets | 1,506,034,913.40 | 1,693,849,504.74 |
| Totalassets | 3,466,875,918.83 | 3,511,238,409.00 |
| Currentliabilities: | ||
| Short-termborrowings | 10,000,000.00 | |
| Financialliabilitiesatfairvaluethroughprofitorloss | ||
| Derivativefinancialliabilities | ||
| Notespayable | 511,820,000.00 | 323,030,500.00 |
| Accountspayable | 471,350,041.11 | 560,214,489.22 |
| Advancesfromcustomers | 43,623,913.22 | 38,382,261.14 |
| Payrollpayable | 20,877,039.64 | 41,401,495.39 |
| Taxespayable | 867,665.59 | 1,373,036.64 |
| Interestpayable | ||
| Dividendspayable | 3,243,179.97 | 3,243,179.97 |
| Otherpayables | 194,073,184.35 | 182,738,709.26 |
| Liabilitiesdirectlyassociatedwithassetsclassifiedasheldforsale | ||
| Currentportionofnon-currentliabilities | ||
| Othercurrentliabilities | ||
| Totalcurrentliabilities | 1,255,855,023.88 | 1,150,383,671.62 |
| Non-currentliabilities: | ||
| Long-termborrowings | 19,500,000.00 | 19,500,000.00 |
| Bondspayable | ||
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Long-termpayables | ||
| Long-termpayrollpayable | ||
| Specificpayables | ||
| Provisions | ||
| Deferredincome | 60,992,858.46 | 60,992,858.46 |
| Deferredincometaxliabilities | 68,624,175.00 | 90,894,450.00 |
| Othernon-currentliabilities |
| Totalnon-currentliabilities | 149,117,033.46 | 171,387,308.46 |
| Totalliabilities | 1,404,972,057.34 | 1,321,770,980.08 |
| Owners’equity: | ||
| Sharecapital | 561,374,326.00 | 561,374,326.00 |
| Otherequityinstruments | ||
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Capitalreserves | 183,071,147.70 | 183,071,147.70 |
| Less:Treasuryshares | ||
| Othercomprehensiveincome | 388,870,325.00 | 515,068,550.00 |
| Specificreserve | 13,289,059.21 | 13,289,059.21 |
| Surplusreserves | 313,705,210.16 | 313,705,210.16 |
| Retainedprofits | 601,593,793.42 | 602,959,135.85 |
| Totalowners’equity | 2,061,903,861.49 | 2,189,467,428.92 |
| Totalliabilitiesandowners’equity | 3,466,875,918.83 | 3,511,238,409.00 |
Legalrepresentative:ShiXinkunGeneralManager:ZhangXinHeadoftheaccountingdepartment:JiangHe
3.ConsolidatedIncomeStatement
Unit:RMB
| Item | H12018 | H12017 |
| 1.Revenue | 1,186,760,892.26 | 1,308,106,180.92 |
| Including:Operatingrevenue | 1,186,760,892.26 | 1,308,106,180.92 |
| Interestincome | ||
| Premiumincome | ||
| Handlingchargeandcommissionincome | ||
| 2.Operatingcostsandexpenses | 1,164,582,065.19 | 1,287,121,365.15 |
| Including:Costofsales | 1,034,354,908.99 | 1,141,392,321.88 |
| Interestexpense | ||
| Handlingchargeandcommissionexpense | ||
| Surrenders | ||
| Netclaimspaid | ||
| Netamountprovidedasinsurancecontractreserve | ||
| Expenditureonpolicydividends | ||
| Reinsurancepremiumexpense | ||
| Taxesandsurtaxes | 5,739,473.26 | 7,032,129.00 |
| Sellingexpense | 52,228,075.86 | 55,815,356.13 |
| Administrativeexpense | 62,434,487.46 | 73,398,067.51 |
| Financecosts | -132,337.12 | 333,451.36 |
| Assetimpairmentloss | 9,957,456.74 | 9,150,039.27 |
| Add:Gainonchangesinfairvalue(“-”forloss) | 0.00 | 0.00 |
| Investmentincome(“-”forloss) | 376,091.68 | 9,358,126.62 |
| Including:Shareofprofitorlossofjointventuresandassociates | ||
| Foreignexchangegain(“-”forloss) | ||
| Assetdisposalincome(“-”forloss) | ||
| Otherincome | 129,600.00 | |
| 3.Operatingprofit(“-”forloss) | 22,684,518.75 | 30,342,942.39 |
| Add:Non-operatingincome | 2,103,083.03 | 21,773,323.41 |
| Less:Non-operatingexpense | 1,527,166.21 | 6,394,655.18 |
| 4.Profitbeforetaxation(“-”forloss) | 23,260,435.57 | 45,721,610.62 |
| Less:Incometaxexpense | 4,352,526.65 | 5,670,998.75 |
| 5.Netprofit(“-”fornetloss) | 18,907,908.92 | 40,050,611.87 |
| 5.1Netprofitfromcontinuingoperations(“-”fornetloss) | 18,907,908.92 | 40,050,611.87 |
| 5.2Netprofitfromdiscontinuedoperations(“-”fornetloss) | 0.00 | 0.00 |
| NetprofitattributabletoownersoftheCompanyastheparent | 18,638,557.66 | 39,679,158.13 |
| Netprofitattributabletonon-controllinginterests | 269,351.26 | 371,453.74 |
| 6.Othercomprehensiveincome,netoftax | -126,198,225.00 | -41,635,125.00 |
| AttributabletoownersoftheCompanyastheparent | -126,198,225.00 | -41,635,125.00 |
| 6.1Itemsthatwillnotbereclassifiedtoprofitorloss | ||
| 6.1.1Changesinnetliabilitiesorassetscausedbyremeasurementsondefinedbenefitpensionschemes | ||
| 6.1.2Shareofothercomprehensiveincomeofinvesteesthatwillnotbereclassifiedtoprofitorlossunderequitymethod | ||
| 6.2Itemsthatmaysubsequentlybereclassifiedtoprofitorloss | -126,198,225.00 | -41,635,125.00 |
| 6.2.1Shareofothercomprehensiveincomeofinvesteesthatwillbereclassifiedtoprofitorlossunderequitymethod | ||
| 6.2.2Gain/Lossonchangesinfairvalueofavailable-for-salefinancialassets | -126,198,225.00 | -41,635,125.00 |
| 6.2.3Gain/Lossarisingfromreclassificationofheld-to-maturityinvestmentstoavailable-for-salefinancialassets | ||
| 6.2.4Effectivegain/lossoncashflowhedges | ||
| 6.2.5Differencesarisingfromtranslationofforeigncurrency-denominatedfinancialstatements | ||
| 6.2.6Other | ||
| Attributabletonon-controllinginterests | ||
| 7.Totalcomprehensiveincome | -107,290,316.08 | -1,584,513.13 |
| AttributabletoownersoftheCompanyastheparent | -107,559,667.34 | -1,955,966.87 |
| Attributabletonon-controllinginterests | 269,351.26 | 371,453.74 |
| 8.Earningspershare | ||
| 8.1Basicearningspershare | 0.03 | 0.07 |
| 8.2Dilutedearningspershare | 0.03 | 0.07 |
Legalrepresentative:ShiXinkunGeneralManager:ZhangXinHeadoftheaccountingdepartment:JiangHe
4.IncomeStatementoftheCompanyastheParent
Unit:RMB
| Item | H12018 | H12017 |
| 1.Operatingrevenue | 1,121,335,123.15 | 1,229,307,547.12 |
| Less:Costofsales | 991,077,844.49 | 1,086,749,833.96 |
| Taxesandsurtaxes | 4,388,116.03 | 6,052,840.56 |
| Sellingexpense | 46,378,981.86 | 50,307,968.65 |
| Administrativeexpense | 53,358,362.23 | 64,535,374.12 |
| Financecosts | -1,920,963.99 | -636,200.84 |
| Assetimpairmentloss | 9,924,969.03 | 9,150,039.27 |
| Add:Gainonchangesinfairvalue(“-”forloss) | 0.00 | |
| Investmentincome(“-”forloss) | 21,000.00 | 6,952,750.99 |
| Including:Shareofprofitorlossofjointventuresandassociates | ||
| Assetdisposalincome(“-”forloss) | ||
| Otherincome | 129,600.00 | |
| 2.Operatingprofit(“-”forloss) | 18,278,413.50 | 20,100,442.39 |
| Add:Non-operatingincome | 1,760,229.91 | 567,356.20 |
| Less:Non-operatingexpense | 1,525,338.21 | 6,192,349.28 |
| 3.Profitbeforetaxation(“-”forloss) | 18,513,305.20 | 14,475,449.31 |
| Less:Incometaxexpense | 3,037,417.85 | 3,873,394.83 |
| 4.Netprofit(“-”fornetloss) | 15,475,887.35 | 10,602,054.48 |
| 4.1Netprofitfromcontinuingoperations(“-”fornetloss) | 15,475,887.35 | 10,602,054.48 |
| 4.2Netprofitfromdiscontinuedoperations(“-”fornetloss) | 0.00 | 0.00 |
| 5.Othercomprehensiveincome,netoftax | -126,198,225.00 | -41,635,125.00 |
| 5.1Itemsthatwillnotbereclassifiedtoprofitorloss | ||
| 5.1.1Changesinnetliabilitiesorassetscausedbyremeasurementsondefinedbenefitpensionschemes | ||
| 5.1.2Shareofothercomprehensiveincomeofinvesteesthatwillnotbereclassifiedintoprofitorlossunderequitymethod | ||
| 5.2Itemsthatmaysubsequentlybereclassifiedtoprofitorloss | -126,198,225.00 | -41,635,125.00 |
| 5.2.1Shareofothercomprehensiveincomeofinvesteesthatwillbereclassifiedintoprofitorlossunderequitymethod | ||
| 5.2.2Gain/Lossonchangesinfairvalueofavailable-for-salefinancialassets | -126,198,225.00 | -41,635,125.00 |
| 5.2.3Gain/Lossarisingfromreclassificationofheld-to-maturityinvestmentstoavailable-for-salefinancialassets | ||
| 5.2.4Effectivegain/lossoncashflowhedges | ||
| 5.2.5Differencesarisingfromtranslationofforeigncurrency-denominatedfinancialstatements | ||
| 5.2.6Other | ||
| 6.Totalcomprehensiveincome | -110,722,337.65 | -31,033,070.52 |
| 7.Earningspershare | ||
| 7.1Basicearningspershare | ||
| 7.2Dilutedearningspershare |
Legalrepresentative:ShiXinkunGeneralManager:ZhangXinHeadoftheaccountingdepartment:JiangHe
5.ConsolidatedCashFlowStatement
Unit:RMB
| Item | H12018 | H12017 |
| 1.Cashflowsfromoperatingactivities: | ||
| Proceedsfromsaleofcommoditiesandrenderingofservices | 1,052,665,606.90 | 1,325,350,610.18 |
| Netincreaseincustomerdepositsanddepositsfrombanksandotherfinancialinstitutions | ||
| Netincreaseinloansfromcentralbank | ||
| Netincreaseinloansfromotherfinancialinstitutions | ||
| Premiumsreceivedonoriginalinsurancecontracts | ||
| Netproceedsfromreinsurance | ||
| Netincreaseindepositsandinvestmentsofpolicyholders | ||
| Netincreaseinproceedsfromdisposaloffinancialassetsatfairvaluethroughprofitorloss | ||
| Interest,handlingchargesandcommissionsreceived | ||
| Netincreaseininterbankloansobtained | ||
| Netincreaseinproceedsfromrepurchasetransactions | ||
| Taxrebates | 20,142,964.09 | 21,145,032.94 |
| Cashgeneratedfromotheroperatingactivities | 6,122,580.97 | 5,501,291.34 |
| Subtotalofcashgeneratedfromoperatingactivities | 1,078,931,151.96 | 1,351,996,934.46 |
| Paymentsforcommoditiesandservices | 861,702,539.28 | 1,033,701,551.38 |
| Netincreaseinloansandadvancestocustomers | ||
| Netincreaseindepositsincentralbankandininterbankloansgranted | ||
| Paymentsforclaimsonoriginalinsurancecontracts | ||
| Interest,handlingchargesandcommissionspaid | ||
| Policydividendspaid | ||
| Cashpaidtoandforemployees | 171,524,903.87 | 185,470,230.57 |
| Taxespaid | 14,854,230.49 | 19,440,382.39 |
| Cashusedinotheroperatingactivities | 36,458,331.47 | 49,005,446.81 |
| Subtotalofcashusedinoperatingactivities | 1,084,540,005.11 | 1,287,617,611.15 |
| Netcashgeneratedfrom/usedinoperatingactivities | -5,608,853.15 | 64,379,323.31 |
| 2.Cashflowsfrominvestingactivities: | ||
| Proceedsfromdisinvestments | 13,534,013.89 | 9,000,000.00 |
| Investmentincome | 376,091.68 | 7,143,077.40 |
| Netproceedsfromdisposaloffixedassets,intangibleassetsandotherlong-livedassets | 125,474.80 | 501,236.14 |
| Netproceedsfromdisposalofsubsidiariesorotherbusinessunits | 0.00 | 0.00 |
| Cashgeneratedfromotherinvestingactivities | ||
| Subtotalofcashgeneratedfrominvestingactivities | 14,035,580.37 | 16,644,313.54 |
| Paymentsforacquisitionoffixedassets,intangibleassetsandotherlong-livedassets | 18,849,002.37 | 48,464,630.47 |
| Paymentsforinvestments | 3,000,000.00 | |
| Netincreaseinpledgedloansgranted | ||
| Netpaymentsforacquisitionofsubsidiariesandotherbusinessunits | 1,854,599.33 | |
| Cashusedinotherinvestingactivities | 24,265,444.20 | 17,100,000.00 |
| Subtotalofcashusedininvestingactivities | 43,114,446.57 | 70,419,229.80 |
| Netcashgeneratedfrom/usedininvestingactivities | -29,078,866.20 | -53,774,916.26 |
| 3.Cashflowsfromfinancingactivities: | ||
| Capitalcontributionsreceived | ||
| Including:Capitalcontributionsbynon-controllingintereststosubsidiaries | ||
| Increaseinborrowingsobtained | 17,000,000.00 | 18,000,000.00 |
| Netproceedsfromissuanceofbonds | ||
| Cashgeneratedfromotherfinancingactivities | ||
| Subtotalofcashgeneratedfromfinancingactivities | 17,000,000.00 | 18,000,000.00 |
| Repaymentofborrowings | 7,000,000.00 | 5,000,000.00 |
| Paymentsforinterestanddividends | 18,263,008.91 | 17,410,070.41 |
| Including:Dividendspaidbysubsidiariestonon-controllinginterests | ||
| Cashusedinotherfinancingactivities | ||
| Subtotalofcashusedinfinancingactivities | 25,263,008.91 | 22,410,070.41 |
| Netcashgeneratedfrom/usedinfinancingactivities | -8,263,008.91 | -4,410,070.41 |
| 4.Effectofforeignexchangeratechangesoncashandcashequivalents | ||
| 5.Netincreaseincashandcashequivalents | -42,950,728.26 | 6,194,336.64 |
| Add:Cashandcashequivalents,beginningoftheperiod | 325,263,654.43 | 583,278,129.09 |
| 6.Cashandcashequivalents,endoftheperiod | 282,312,926.17 | 589,472,465.73 |
Legalrepresentative:ShiXinkunGeneralManager:ZhangXinHeadoftheaccountingdepartment:JiangHe
6.CashFlowStatementoftheCompanyastheParent
Unit:RMB
| Item | H12018 | H12017 |
| 1.Cashflowsfromoperatingactivities: | ||
| Proceedsfromsaleofcommoditiesandrenderingofservices | 978,362,086.38 | 1,287,943,005.80 |
| Taxrebates | 14,838,384.91 | 21,145,032.94 |
| Cashgeneratedfromotheroperatingactivities | 5,251,560.76 | 4,003,051.69 |
| Subtotalofcashgeneratedfromoperatingactivities | 998,452,032.05 | 1,313,091,090.43 |
| Paymentsforcommoditiesandservices | 801,461,497.18 | 1,012,243,538.73 |
| Cashpaidtoandforemployees | 143,561,299.80 | 160,430,190.27 |
| Taxespaid | 10,023,890.64 | 17,376,389.94 |
| Cashusedinotheroperatingactivities | 32,113,861.57 | 45,213,130.50 |
| Subtotalofcashusedinoperatingactivities | 987,160,549.19 | 1,235,263,249.44 |
| Netcashgeneratedfrom/usedinoperatingactivities | 11,291,482.86 | 77,827,840.99 |
| 2.Cashflowsfrominvestingactivities: | ||
| Proceedsfromdisinvestments | ||
| Investmentincome | 21,000.00 | 6,952,750.09 |
| Netproceedsfromdisposaloffixedassets,intangibleassetsandotherlong-livedassets | 102,774.58 | 83,115.01 |
| Netproceedsfromdisposalofsubsidiariesorotherbusinessunits | ||
| Cashgeneratedfromotherinvestingactivities | ||
| Subtotalofcashgeneratedfrominvestingactivities | 123,774.58 | 7,035,865.10 |
| Paymentsforacquisitionoffixedassets,intangibleassetsandotherlong-livedassets | 17,662,045.01 | 48,311,909.08 |
| Paymentsforinvestments | 0.00 | 0.00 |
| Netpaymentsforacquisitionofsubsidiariesandotherbusinessunits | 26,516,925.27 | |
| Cashusedinotherinvestingactivities | 0.00 | |
| Subtotalofcashusedininvestingactivities | 17,662,045.01 | 74,828,834.35 |
| Netcashgeneratedfrom/usedininvestingactivities | -17,538,270.43 | -67,792,969.25 |
| 3.Cashflowsfromfinancingactivities: | ||
| Capitalcontributionsreceived | ||
| Increaseinborrowingsobtained | 10,000,000.00 | |
| Netproceedsfromissuanceofbonds | ||
| Cashgeneratedfromotherfinancingactivities |
| Subtotalofcashgeneratedfromfinancingactivities | 10,000,000.00 | |
| Repaymentofborrowings | ||
| Paymentsforinterestanddividends | 17,733,682.52 | 16,841,229.78 |
| Cashusedinotherfinancingactivities | 0.00 | 0.00 |
| Sub-totalofcashusedinfinancingactivities | 17,733,682.52 | 16,841,229.78 |
| Netcashgeneratedfrom/usedinfinancingactivities | -7,733,682.52 | -16,841,229.78 |
| 4.Effectofforeignexchangeratechangesoncashandcashequivalents | ||
| 5.Netincreaseincashandcashequivalents | -13,980,470.09 | -6,806,358.04 |
| Add:Cashandcashequivalents,beginningoftheperiod | 272,064,464.71 | 558,159,090.01 |
| 6.Cashandcashequivalents,endoftheperiod | 258,083,994.62 | 551,352,731.97 |
Legalrepresentative:ShiXinkunGeneralManager:ZhangXinHeadoftheaccountingdepartment:JiangHe
7.ConsolidatedStatementsofChangesinOwners’EquityH12018
Unit:RMB
| Item | H12018 | ||||||||||||
| EquityattributabletoownersoftheCompanyastheparent | Non-controllinginterests | Totalowners’equity | |||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasuryshares | Othercomprehensiveincome | Specificreserve | Surplusreserves | Generalreserve | Retainedprofits | |||||
| Preferredshares | Perpetualbonds | Other | |||||||||||
| 1.Balancesasofendofprioryear | 561,374,326.00 | 164,328,665.43 | 515,068,550.00 | 13,289,059.21 | 313,705,210.16 | 679,131,047.06 | 19,473,156.31 | 2,266,370,014.17 | |||||
| Add:Adjustmentsforchangedaccountingpolicies | |||||||||||||
| Adjustmentsforcorrectionsofpreviouserrors | |||||||||||||
| Adjustmentsforbusinesscombinationsinvolvingenterprisesundercommoncontrol | |||||||||||||
| Otheradjustments | |||||||||||||
| 2.Balancesasofbeginningoftheyear | 561,374,326.00 | 164,328,665.43 | 515,068,550.00 | 13,289,059.21 | 313,705,210.16 | 679,131,047.06 | 19,473,156.31 | 2,266,370,014.17 | |||||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | -126,198,225.00 | 1,797,327.88 | 269,351.26 | -124,131,545.86 | |||||||||
| 3.1Totalcomprehensiveincome | -126,198,225.00 | 18,638,557.66 | 269,351.26 | -107,290,316.08 | |||||||||
| 3.2Capitalincreasedandreduced | |||||||||||||
| byowners | ||||
| 3.2.1Ordinarysharesincreasedbyshareholders | ||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | ||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | ||||
| 3.2.4Other | ||||
| 3.3Profitdistribution | -16,841,229.78 | -16,841,229.78 | ||
| 3.3.1Appropriationtosurplusreserves | ||||
| 3.3.2Appropriationtogeneralreserve | ||||
| 3.3.3Appropriationtoowners(orshareholders) | -16,841,229.78 | -16,841,229.78 | ||
| 3.3.4Other | ||||
| 3.4Carryforwardswithinowners’equity | ||||
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | ||||
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | ||||
| 3.4.3Surplusreservesusedtomakeuplosses | ||||
| 3.4.4Other | ||||
| 3.5Specificreserve | ||||
| 3.5.1Withdrawnfortheperiod |
| 3.5.2Usedduringtheperiod | |||||||||||
| 3.6Other | |||||||||||
| 4.Balancesasofendoftheperiod | 561,374,326.00 | 164,328,665.43 | 388,870,325.00 | 13,289,059.21 | 313,705,210.16 | 680,928,374.94 | 19,742,507.57 | 2,142,238,468.31 |
Legalrepresentative:ShiXinkunGeneralManager:ZhangXinHeadoftheaccountingdepartment:JiangHe
H12017
Unit:RMB
| Item | H12017 | ||||||||||||
| EquityattributabletoownersoftheCompanyastheparent | Non-controllinginterests | Totalowners’equity | |||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasuryshares | Othercomprehensiveincome | Specificreserve | Surplusreserves | Generalreserve | Retainedprofits | |||||
| Preferredshares | Perpetualbonds | Other | |||||||||||
| 1.Balancesasofendofprioryear | 561,374,326.00 | 164,328,665.43 | 623,048,300.00 | 11,715,417.22 | 311,880,248.88 | 651,365,935.39 | 18,767,226.57 | 2,342,480,119.49 | |||||
| Add:Adjustmentsforchangedaccountingpolicies | |||||||||||||
| Adjustmentsforcorrectionsofpreviouserrors | |||||||||||||
| Adjustmentsforbusinesscombinationsinvolvingenterprisesundercommoncontrol | |||||||||||||
| Otheradjustments | |||||||||||||
| 2.Balancesasofbeginningoftheyear | 561,374,326.00 | 164,328,665.43 | 623,048,300.00 | 11,715,417.22 | 311,880,248.88 | 651,365,935.39 | 18,767,226.57 | 2,342,480,119.49 | |||||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | -107,979,750.00 | 1,573,641.99 | 1,824,961.28 | 27,765,111.67 | 705,929.74 | -76,110,105.32 | |||||||
| 3.1Totalcomprehensiveincome | -107,979,750.00 | 46,431,302.73 | 705,929.74 | -60,842,517.53 | |||||||||
| 3.2Capitalincreasedandreducedbyowners | |||||||||||||
| 3.2.1Ordinarysharesincreased | |||||||||||||
| byshareholders | |||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | |||||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | |||||||
| 3.2.4Other | |||||||
| 3.3Profitdistribution | 1,824,961.28 | -18,666,191.06 | -16,841,229.78 | ||||
| 3.3.1Appropriationtosurplusreserves | 1,824,961.28 | -1,824,961.28 | |||||
| 3.3.2Appropriationtogeneralreserve | |||||||
| 3.3.3Appropriationtoowners(orshareholders) | -16,841,229.78 | -16,841,229.78 | |||||
| 3.3.4Other | |||||||
| 3.4Carryforwardswithinowners’equity | |||||||
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | |||||||
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | |||||||
| 3.4.3Surplusreservesusedtomakeuplosses | |||||||
| 3.4.4Other | |||||||
| 3.5Specificreserve | 1,573,641.99 | 1,573,641.99 | |||||
| 3.5.1Withdrawnfortheperiod | 4,161,424. | 4,161,42 |
| 06 | 4.06 | ||||||||||
| 3.5.2Usedduringtheperiod | 2,587,782.07 | 2,587,782.07 | |||||||||
| 3.6Other | |||||||||||
| 4.Balancesasofendoftheperiod | 561,374,326.00 | 164,328,665.43 | 515,068,550.00 | 13,289,059.21 | 313,705,210.16 | 679,131,047.06 | 19,473,156.31 | 2,266,370,014.17 |
Legalrepresentative:ShiXinkunGeneralManager:ZhangXinHeadoftheaccountingdepartment:JiangHe
8.StatementsofChangesinOwners’EquityoftheCompanyastheParentH12018
Unit:RMB
| Item | H12018 | ||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasuryshares | Othercomprehensiveincome | Specificreserve | Surplusreserves | Retainedprofits | Totalowners’equity | |||
| Preferredshares | Perpetualbonds | Other | |||||||||
| 1.Balancesasofendofprioryear | 561,374,326.00 | 183,071,147.70 | 515,068,550.00 | 13,289,059.21 | 313,705,210.16 | 602,959,135.85 | 2,189,467,428.92 | ||||
| Add:Adjustmentsforchangedaccountingpolicies | |||||||||||
| Adjustmentsforcorrectionsofpreviouserrors | |||||||||||
| Otheradjustments | |||||||||||
| 2.Balancesasofbeginningoftheyear | 561,374,326.00 | 183,071,147.70 | 515,068,550.00 | 13,289,059.21 | 313,705,210.16 | 602,959,135.85 | 2,189,467,428.92 | ||||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | -126,198,225.00 | -1,365,342.43 | -127,563,567.43 | ||||||||
| 3.1Totalcomprehensiveincome | -126,198,225.00 | 15,475,887.35 | -110,722,337.65 | ||||||||
| 3.2Capitalincreasedandreducedbyowners | |||||||||||
| 3.2.1Ordinarysharesincreasedbyshareholders | |||||||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | |||||||||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | |||||||||
| 3.2.4Other | |||||||||
| 3.3Profitdistribution | -16,841,229.78 | -16,841,229.78 | |||||||
| 3.3.1Appropriationtosurplusreserves | |||||||||
| 3.3.2Appropriationtoowners(orshareholders) | -16,841,229.78 | -16,841,229.78 | |||||||
| 3.3.3Other | |||||||||
| 3.4Carryforwardswithinowners’equity | |||||||||
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | |||||||||
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | |||||||||
| 3.4.3Surplusreservesusedtomakeuplosses | |||||||||
| 3.4.4Other | |||||||||
| 3.5Specificreserve | |||||||||
| 3.5.1Withdrawnfortheperiod | |||||||||
| 3.5.2Usedduringtheperiod | |||||||||
| 3.6Other | |||||||||
| 4.Balancesasofendoftheperiod | 561,374,326.00 | 183,071,147.70 | 388,870,325.00 | 13,289,059.21 | 313,705,210.16 | 601,593,793.42 | 2,061,903,861.49 |
Legalrepresentative:ShiXinkunGeneralManager:ZhangXinHeadoftheaccountingdepartment:JiangH
H12017
Unit:RMB
| Item | H12017 | ||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasuryshares | Othercomprehensiveincome | Specificreserve | Surplusreserves | Retainedprofits | Totalowners’equity | |||
| Preferredshares | Perpetualbonds | Other | |||||||||
| 1.Balancesasofendofprioryear | 561,374,326.00 | 183,071,147.70 | 623,048,300.00 | 11,715,417.22 | 311,880,248.88 | 603,375,714.13 | 2,294,465,153.93 | ||||
| Add:Adjustmentsforchangedaccountingpolicies | |||||||||||
| Adjustmentsforcorrectionsofpreviouserrors | |||||||||||
| Otheradjustments | |||||||||||
| 2.Balancesasofbeginningoftheyear | 561,374,326.00 | 183,071,147.70 | 623,048,300.00 | 11,715,417.22 | 311,880,248.88 | 603,375,714.13 | 2,294,465,153.93 | ||||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | -107,979,750.00 | 1,573,641.99 | 1,824,961.28 | -416,578.28 | -104,997,725.01 | ||||||
| 3.1Totalcomprehensiveincome | -107,979,750.00 | 18,249,612.78 | -89,730,137.22 | ||||||||
| 3.2Capitalincreasedandreducedbyowners | |||||||||||
| 3.2.1Ordinarysharesincreasedbyshareholders | |||||||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | |||||||||||
| 3.2.3Share-basedpayments | |||||||||||
| includedinowners’equity | |||||||||
| 3.2.4Other | |||||||||
| 3.3Profitdistribution | 1,824,961.28 | -18,666,191.06 | -16,841,229.78 | ||||||
| 3.3.1Appropriationtosurplusreserves | 1,824,961.28 | -1,824,961.28 | |||||||
| 3.3.2Appropriationtoowners(orshareholders) | -16,841,229.78 | -16,841,229.78 | |||||||
| 3.3.3Other | |||||||||
| 3.4Carryforwardswithinowners’equity | |||||||||
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | |||||||||
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | |||||||||
| 3.4.3Surplusreservesusedtomakeuplosses | |||||||||
| 3.4.4Other | |||||||||
| 3.5Specificreserve | 1,573,641.99 | 1,573,641.99 | |||||||
| 3.5.1Withdrawnfortheperiod | 4,161,424.06 | 4,161,424.06 | |||||||
| 3.5.2Usedduringtheperiod | 2,587,782.07 | 2,587,782.07 | |||||||
| 3.6Other | |||||||||
| 4.Balancesasofendoftheperiod | 561,374,326.00 | 183,071,147.70 | 515,068,550.00 | 13,289,059.21 | 313,705,210.16 | 602,959,135.85 | 2,189,467,428.92 |
Legalrepresentative:ShiXinkunGeneralManager:ZhangXinHeadoftheaccountingdepartment:JiangHe
III.CompanyProfile
ChangchaiCompany,Limited(hereinafterreferredtoas“theCompany”)wasfoundedon5May1994,which
isacompanylimitedbysharespromotedsolelybyChangzhouDieselEnginePlantthroughtheapprovalbythe
StateCommissionforRestructuringtheEconomicSystemswithdocumentTGS[1993]No.9on15January1993
bywayofpublicofferingofshares.WiththeapprovedofthePeople’sGovernmentofJiangsuProvinceSZF
[1993]No.67,aswellasreexaminedandapprovedbyChinaSecuritiesRegulatoryCommission(“CSRC”)
throughdocumentZJFSZ(1994)No.9,theCompanyinitiallyissuedAsharestothepublicfrom15March1994
to30March1994.AsapprovedbytheShenzhenStockExchangethroughdocumentSZSFZ(1994)No.15,such
tradablesharesofthepublicgotlistingon1July1994atShenzhenStockExchangewith“SuChangchaiA”for
shortofstock,aswellas“0570”asstockcode(presentstockcodeis“000570”).
In1996,withtherecommendationoftheOfficeofthePeople’sGovernmentofJiangsuProvinceSZBH
[1996]No.13,aswellasfirstreviewbyShenzhenMunicipalSecuritiesAdministrationOfficethroughSZBZ
[1996]No.24,andapprovaloftheStateCouncilSecuritiesCommissionZWF[1996]No.27,theCompany
issued100millionBsharestoqualifiedinvestorson27August1996to30August1996,gettinglistedon13
September1996.
On9June2006,theCompanyheldashareholders’generalmeetingrelatedtoAsharesmarkettoexamine
andapprovesharemergerreformplan,andperformedthesharemergerreformon19June2006.
Asexaminedandapprovedatthe2
nd
ExtraordinaryGeneralMeetingof2009inSeptember2009,basedon
thetotalsharecapitalof374,249,551sharesasat30June2009,theCompanyimplementedtheprofitdistribution
plan,i.e.todistribute5bonussharesandcashofRMB0.80forevery10shares,withregisteredcapitalincreased
byRMB187,124,775.00,aswellasregisteredcapitalofRMB561,374,326.00afterchange.Asat31December
2015,thetotalsharecapitaloftheCompanyis561,374,326.00shares,aswellasregisteredcapitalof
RMB561,374,326.00,whichverifiedbyJiangsuGongzhengTianyeCertifiedPublicAccountantsCompany
LimitedwithissuingCapitalVerificationReportSGC[2010]No.B002.Andtheunifiedsocialcreditcodeofthe
enterprisebusinesslicenseoftheCompanyis91320400134792410W.
TheCompany’sregisteredaddressissituatedatNo.123HuaideMiddleRoad,Changzhou,Jiangsu,aswell
asitsheadofficelocatedatNo.123HuaideMiddleRoad,Changzhou,Jiangsu.
TheCompanybelongstomanufacturingwithbusinessscopeincludingmanufacturingandsaleofdiesel
engine,dieselenginespartandcasting,grainharvestingmachine,rotarycultivators,walkingtractor,mouldand
fixtures,assemblingandsaleofdieselgeneratingsetandpumpingunit.TheCompanymainlyengagedinthe
productionandsalesofsmallandmedium-sizedsinglecylindersandmulti-cylinderdieselenginewiththelabelof
ChangchaiBrand.ThedieselengineproducedandsoldbytheCompanyweremainlyusedintractors,combine
harvestmodels,lightcommercialvehicle,farmequipment,small-sizedconstructionmachinery,generatingsets
andshipbornemachineryandequipment,etc.TheCompany’smainbusinessremainedunchangedinthe
ReportingPeriod.
TheCompanyestablishedtheShareholders’GeneralMeeting,theBoardofDirectorsandtheSupervisory
Committee,Corporateoffice,FinancialDepartment,PoliticalDepartment,InvestmentandDevelopment
Department,EnterpriseManagementDepartment,HumanRecoursesDepartment,ProductionDepartment,
ProcurementDepartment,SalesCompany,MarketDepartment,ChiefEngineerOffice,TechnologyCenter,QA
Department,FoundryBranch,MachineProcessingBranch,Single-cylinderEnginebranch,Multi-cylinderEngine
BranchandOverseasBusinessDepartmentintheCompany.
ThefinancialreporthasbeenapprovedtobeissuedbytheBoardofDirectorson22August2018.
TheconsolidatedscopeoftheCompanyoftheReportingPeriodincludestheCompanyastheparentand5
subsidiarieswithnochangescomparedwithlastperiod.ForthedetailsoftheconsolidatedscopeoftheReporting
Periodandthechangessituation,pleaserefertothechangesoftheconsolidatedscopeofthenotestothefinancial
reportandthenotestotheequitiesamongotherentities.
IV.BasisforPreparationoftheFinancialReport1.BasisforPreparation
Withthegoing-concernassumptionasthebasisandbasedontransactionsandothereventsthatactually
occurred,theGrouppreparedfinancialstatementsinaccordancewithTheAccountingStandardsforBusiness
Enterprises—BasicStandardissuedbytheMinistryofFinancewithDecreeNo.33andrevisedwithDecreeNo.
76,the42specificaccountingstandards,theApplicationGuidanceofAccountingStandardsforBusiness
Enterprises,theInterpretationofAccountingStandardsforBusinessEnterprisesandotherregulationsissuedand
revisedfrom15February2006onwards(hereinafterjointlyreferredtoas“theAccountingStandardsforBusiness
Enterprises”,“ChinaAccountingStandards”or“CAS”),aswellastheRulesforPreparationConventionof
DisclosureofPublicOfferingCompaniesNo.15–GeneralRegulationsforFinancialReporting(revisedin2014)
byChinaSecuritiesRegulatoryCommission.
InaccordancewithrelevantprovisionsoftheAccountingStandardsforBusinessEnterprises,theGroup
adoptedtheaccrualbasisinaccounting.Exceptforsomefinancialinstruments,whereimpairmentoccurredonan
asset,animpairmentreservewaswithdrawnaccordinglypursuanttorelevantrequirements.
2.Continuation
TheCompanycomprehensivelyevaluatedtheinformationacquiredrecentlythattherewouldbenosuch
factorsinthe12monthsfromtheendoftheReportingPeriodthatwouldobviouslyinfluencethecontinuation
capabilityoftheCompanyandpredictedthattheoperatingactivitieswouldcontinueinthefuture12monthsof
theCompany.Thefinancialstatementcompiledbaseonthecontinuousoperation.
V.ImportantAccountingPoliciesandEstimations
Notificationofspecificaccountingpoliciesandaccountingestimations:
TheCompanyandeachsubsidiaryaccordingtotheactualproductionandoperationcharacteristicsandin
accordwiththeregulationsoftherelevantASBE,formulatedcertainspecificaccountingpoliciesandaccounting
estimations,whichmainlyreflectedinthewithdrawalmethodofthebaddebtprovisionoftheaccountsreceivable
(NotesIII,11),themeasurementoftheinventory(NotesIII,12)andthedepreciationofthefixedassets(NotesIII,
16)etc.Asforthedetailsofthesignificantaccountingjudgmentandtheestimationsmadebythemanagement
layer,pleaserefertoNotesIII,30“Importantaccountingjudgmentandestimations”.
1.StatementofCompliancewiththeAccountingStandardsforBusinessEnterprises
ThefinancialstatementspreparedbytheGroupareincompliancewithincompliancewiththeAccounting
StandardsforBusinessEnterprises,whichfactuallyandcompletelypresenttheCompany’sandtheGroup’s
financialpositions,businessresultsandcashflowsandotherrelevantinformation.
2.FiscalPeriod
Thefiscalperiodsaredividedintofiscalyearandmetaphase,thefiscalyearisfromJanuary1toDecember
31andasthemetaphaseincludedmonthly,quarterlyandsemi-yearlyperiods.
3.OperatingCycle
AnormaloperatingcyclereferstoaperiodfromtheGrouppurchasingassetsforprocessingtorealizingcash
orcashequivalents.AnoperatingcyclefortheGroupis12months,whichisalsotheclassificationcriterionfor
theliquidityofitsassetsandliabilities.
4.CurrencyUsedinBookkeeping
RenminbiisfunctionalcurrencyoftheCompany.
5.AccountingMethodsforBusinessCombinationsundertheSameControlandBusinessCombinationsnotundertheSameControl
(1)Businesscombinationsunderthesamecontrol:
Abusinesscombinationunderthesamecontrolisabusinesscombinationinwhichallofthecombining
enterprisesareultimatelycontrolledbythesamepartyorthesamepartiesbothbeforeandafterthebusiness
combinationandonwhichthecontrolisnottemporary.
Forthemergerofenterprisesunderthesamecontrol,iftheconsiderationofthemergingenterpriseisthatit
makespaymentincash,transfersnon-cashassetsorbearitsdebts,itshall,onthedateofmerger,regardtheshare
ofthebookvalueoftheowner'sequityofthemergedenterpriseastheinitialcostofthelong-termequity
investment.Thedifferencebetweentheinitialcostofthelong-termequityinvestmentandthepaymentincash,
non-cashassetstransferredaswellasthebookvalueofthedebtsbornebythemergingpartyshalloffsetagainst
thecapitalreserve.Ifthecapitalreserveisinsufficienttodilute,theretainedearningsshallbeadjusted.
Iftheconsiderationofthemergingenterpriseisthatitissuesequitysecurities,itshall,onthedateofmerger,
regardtheshareofthebookvalueoftheowner'sequityofthemergedenterpriseastheinitialcostofthe
long-termequityinvestment.Thetotalfacevalueofthestocksissuedshallberegardedasthecapitalstock,while
thedifferencebetweentheinitialcostofthelong-termequityinvestmentandtotalfacevalueofthesharesissued
shalloffsetagainstthecapitalreserve.Ifthecapitalreserveisinsufficienttodilute,theretainedearningsshallbe
adjusted.
Alldirectcostsforthebusinesscombination,includingexpensesforaudit,evaluatingandlegalservicesshall
berecordedintotheprofitsandlossesatthecurrentperiod.Theexpensessuchasthehandlingchargesand
commissionetc,premiumincomeofdeductingtheequitysecurities,andasforthepremiumincomewas
insufficienttodilute,theretainedearningsshallbewrittendown.
Owningtothereasonssuchastheadditionalinvestment,fortheequityinvestmentheldbeforeacquiringthe
controlrightofthecombinedparties,theconfirmedrelevantgainsandlosses,othercomprehensiveincomeand
thechangesofothernetassetssincethedateoftheearlieronebetweenthedatewhenacquiringtheoriginalequity
rightandthedatewhenthecombinepartiesandcombinedoneswereunderthesamecontroltothecombination
date,shouldberespectivelywrittendownandcomparedwiththebeginningbalanceofretainedearningsorthe
currentgainsandlossesduringthestatementperiod.
(2)Businesscombinationsnotunderthesamecontrol
Abusinesscombinationnotunderthesamecontrolisabusinesscombinationinwhichthecombining
enterprisesarenotultimatelycontrolledbythesamepartyorthesamepartiesbothbeforeandafterthebusiness
combination.
Thecombinationcostsoftheacquirerandtheidentifiablenetassetsobtainedbytheacquirerinabusiness
combinationshallbemeasuredatthefairvalues.Theacquirershallrecognizethepositivebalancebetweenthe
combinationcostsandthefairvalueoftheidentifiablenetassetsitobtainsformstheacquireeasbusiness
reputation.Thedirectrelevantexpensesoccurredfromtheenterprisecombinationshouldbeincludedinthe
currentgainsandlosseswhenoccurred.Thecombinationcostsoftheacquirerandtheidentifiablenetassets
obtainedbyitinthecombinationshallbemeasuredaccordingtotheirfairvaluesattheacquiringdate.The
differencebetweenthefairvalueoftheassetspaidoutbytheCompanyanditsbookvalueshouldbeincludedin
thecurrentgainsandlosses.Thepurchasedatereferstothedatethatthepurchaseracquiresthecontrolrightofthe
acquiree.
Forthebusinesscombinationsnotunderthesamecontrolrealizedthroughstepbystepmultipletransaction,
asfortheequityintereststhattheGroupholdsintheacquireebeforetheacquiringdate,theyshallbere-measured
accordingtotheirfairvaluesattheacquiringdate;thepositivedifferencebetweentheirfairvaluesandcarrying
amountsshallberecordedintotheinvestmentgainsfortheperiodincludingtheacquiringdate.Theequityholed
bytheacquireewhichinvolvedwiththeothercomprehensiveincomeandtheotherowners’equitieschanges
exceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionandotherrelated
comprehensivegainsandotherowners’equitieswhichinrelationtotheequityintereststhattheGroupholdsin
theacquireebeforetheacquiringdateshouldbetransferredintothecurrentinvestmentincomeontheacquiring
date,exceptfortheothercomprehensiveincomeoccurredfromthere-measurementofthenetprofitsofthe
definedbenefitplansorthechangesofthenetassetsoftheinvestees.
6.MethodsforPreparingConsolidatedFinancialStatements
TheCompanyconfirmstheconsolidatedscopebasedonthecontrolandincludesthesubsidiarieswithactual
controlrightintotheconsolidatedfinancialstatement.
TheconsolidatedfinancialstatementoftheCompanyiscompiledaccordingtotheregulationsofNo.33of
ASBE-ConsolidatedFinancialStatementandtherelevantregulationsandasforthewholesignificant
come-and-gobalance,investment,transactionandtheunrealizedprofitsshouldbewrittenoffwhencompilingthe
consolidatedfinancialstatement.Theportionofasubsidiary’sshareholders’equityandtheportionofa
subsidiary’snetprofitsandlossesfortheperiodnotheldbytheGrouparerecognizedasminorityinterestsand
minorityshareholderprofitsandlossesrespectivelyandpresentedseparatelyundershareholders’equityandnet
profitsintheconsolidationfinancialstatements.Theportionofasubsidiary’snetprofitsandlossesfortheperiod
thatbelongtominorityinterestsispresentedastheitemof“minorityshareholderprofitsandlosses”underthe
biggeritemofnetprofitsintheconsolidatedfinancialstatements.Wherethelossofasubsidiarysharedby
minorityshareholdersexceedstheportionenjoyedbyminorityshareholdersinthesubsidiary’sopeningowners’
equity,minorityinterestsareoffset.
TheaccountingpolicyoraccountingperiodofeachsubsidiaryisdifferentfromwhichoftheCompany,
whichshallbeadjustedastheCompany;orsubsidiariesshallpreparefinancialstatementagainrequiredbythe
Companywhenpreparingtheconsolidatedfinancialstatements.
Asfortheaddedsubsidiarycompanynotcontrolledbythesameenterprisepreparingtheconsolidated
financialstatement,shalladjustindividualfinancialstatementbasedonthefairvalueoftheidentifiablenetassets
ontheacquisitiondate;asfortheaddedsubsidiarycompaniescontrolledbythesameenterprisepreparingthe
financialstatement,shallnotadjustthefinancialstatementofthesubsidiaries,namelysurvivedbyintegrationas
participatingintheconsolidationwhenthefinalcontrolpartystartsimplementingcontrolandshouldadjustthe
period-beginamountoftheconsolidatedbalancesheetandatthesametimeadjusttherelevantitemsofthe
comparedstatement.
Asforthedisposedsubsidiaries,theoperationresultandthecashflowshouldbeincludedintheconsolidated
incomestatementandtheconsolidatedcashflowbeforethedisposingdate;thedisposedsubsidiariesofthe
currentperiod,shouldnotbeadjustedtheperiod-beginamountoftheconsolidatedbalancesheet.
WheretheGrouplossescontrolonitsoriginalsubsidiariesduetodisposalofsomeequityinvestmentsor
otherreasons,theresidualequityinterestsarere-measuredaccordingtothefairvalueonthedatewhensuch
controlceases.Thesummationoftheconsiderationobtainedfromthedisposalofequityinterestsandthefair
valueoftheresidualequityinterests,minustheportionintheoriginalsubsidiary’snetassetsmeasuredona
continuousbasisfromtheacquisitiondatethatisenjoyablebytheGroupaccordingtotheoriginalshareholding
percentageinthesubsidiary,isrecordedininvestmentgainsfortheperiodwhentheGroup’scontrolonthe
subsidiaryceases.Othercomprehensiveincomesinrelationtotheequityinvestmentandtheotherowners’
equitieschangesexceptforthenetgainsandlosses,othercomprehensiveincomeandprofitsdistributioninthe
originalsubsidiaryaretreatedonthesameaccountingbasisastheacquireedirectlydisposestherelevantassetsor
liabilities(thatis,exceptforthechangesinthenetliabilitiesorassetswithadefinedbenefitplanresultedfrom
re-measurementoftheoriginalsubsidiary,therestshallallbetransferredintocurrentinvestmentgains)when
suchcontrolceases.Andsubsequentmeasurementisconductedontheresidualequityinterestsaccordingtothe
No.2AccountingStandardforBusinessEnterprises-Long-termEquityInvestmentsortheNo.22Accounting
StandardforBusinessEnterprises-RecognitionandMeasurementofFinancialInstruments.
Forthedisposalofequityinvestmentbelongstoapackagedeal,shouldbeconsideredasatransactionand
conductaccountingtreatment.However,Beforelosingcontrol,everydisposalcostandcorrespondingnetassets
balanceofsubsidiaryofdisposalinvestmentareconfirmedasothercomprehensiveincomeinconsolidated
financialstatements,whichtogethertransferredintothecurrentprofitsandlossesinthelossofcontrol,whenthe
Grouplosingcontrolonitssubsidiary.
Forthedisposaloftheequityinvestmentnotbelongstoapackagedeal,shouldbeexecutedaccounting
treatmentaccordingtotherelevantpoliciesofpartlydisposingtheequityinvestmentofthesubsidiariesunderthe
situationnotlosethecontrolrightbeforelosingthecontrolright;whenlosingthecontrolright,theformershould
beexecutedaccountingtreatmentaccordingtothegeneraldisposingmethodofthedisposalofthesubsidiaries.
7.ClassificationofJointArrangementsandAccountingTreatmentofJointOperations
TheGroupclassifiesjointarrangementsintojointoperationsandjointventures.
AjointoperationreferstoajointarrangementwheretheGroupisthejointoperationspartyofthejoint
arrangementandenjoysassetsandhastobearliabilitiesrelatedtothearrangement.TheCompanyconfirmsthe
followingitemsrelatedtotheinterestsshareamongthejointoperationsandexecutesaccountingtreatment
accordingtotheregulationsoftherelevantASBE:
(1)Recognizestheassetsthatitholdsandbearsinthejointoperationandrecognizesthejointly-heldassets
accordingtotheGroup’sstakeinthejointoperation;
(2)Recognizestheliabilitiesthatitholdsandbearsinthejointoperationandrecognizesthejointly-held
liabilitiesaccordingtotheGroup’sstakeinthejointoperation;
(3)RecognizestheincomefromsaleoftheGroup’sshareintheoutputofthejointoperation
(4)Recognizestheincomefromsaleofthejointoperation’soutputsaccordingtotheGroup’sstakeinit
(5)RecognizestheexpensesolelyincurredtotheGroupandtheexpenseincurredtothejointoperation
accordingtotheGroup’sstakeinit.
8.RecognitionStandardforCashandCashEquivalents
IntheGroup’sunderstanding,cashandcashequivalentsincludecashonhand,anydepositthatcanbeused
forcover,andshort-term(usuallyduewithin3monthssincethedayofpurchase)andhighcirculatinginvestments,
whichareeasilyconvertibleintoknownamountofcashandwhoserisksinchangeofvalueareminimal.
9.ForeignCurrencyBusinessesandTranslationofForeignCurrencyFinancialStatements
(1)Foreigncurrencybusiness
Concerningtheforeign-currencytransactionsthatoccurred,theforeigncurrencyshallbeconvertedintothe
recordingcurrencyaccordingtothemiddlepriceofthemarketexchangeratedisclosedbythePeople’sBankof
Chinaonthedateofthetransaction.Amongthesaidtransactionsthatoccurred,thoseinvolvingforeignexchanges
shallbeconvertedaccordingtotheexchangeratesadoptedintheactualtransactions.
Onthebalancesheetdate,theforeign-currencymonetaryassetsandthebalanceoftheliabilityaccountshall
beconvertedintotherecodingcurrencyaccordingtothemiddlepriceofthemarketexchangeratesdisclosedby
thePeople’sBankofChinaontheBalanceSheetDate.Thedifferencebetweentherecording-currencyamount
convertedaccordingtotheexchangerateontheBalanceSheetDateandtheoriginalbookrecording-currency
amountshallberecognizedasgains/lossesfromforeignexchange.Andtheexchangegain/losscausedbythe
foreign-currencyborrowingsrelatedtopurchasingfixedassetsshallbehandledaccordingtotheprincipleof
capitalizingborrowingexpenses;theexchangegain/lossincurredintheestablishmentperiodshallberecorded
intotheestablishmentexpense;othersshallberecordedintothefinancialexpensesforthecurrentperiod.
Onthebalancesheetdate,theforeign-currencynon-monetaryitemsmeasuredbyhistoricalcostshallbe
convertedaccordingtothemiddlepriceofthemarketexchangedisclosedbythePeople’sBankofChinaonthe
dateofthetransaction,withnochangesintheoriginalrecording-currencyamount;whiletheforeign-currency
non-monetaryitemsmeasuredbyfairvalueshallbeconvertedaccordingtothemiddlepriceofthemarket
exchangedisclosedbythePeople’sBankofChinaonthedatewhenthefairvalueisrecognized,andtheexchange
gain/losscausedthereofshallberecognizedasthegain/lossfromfairvaluechangesandrecordedintothe
gain/lossofthecurrentperiod.
(2)Translationofforeigncurrency
Theassetsandliabilitiesitemsamongthebalancesheetoftheforeignoperationshallbetranslatedataspot
exchangerateonthebalancesheetdate.Amongtheowner’sequityitems,exceptfortheitemsas“undistributed
profits”,otheritemsshallbetranslatedatthespotexchangerateatthetimewhentheyareincurred.Andthe
revenuesandexpensesitemsamongthebalancesheetoftheforeignoperationshallbetranslatedatthe
approximateexchangerateofthetransactiondate.Thedifferencecausedfromtheabovetransactionoftheforeign
currencystatementshouldbelistedintheothercomprehensiveincomeamongtheowners’equities.
10.FinancialInstruments
(1)CategoryoffinancialinstrumentsTheCompanyclassifiesthefinancialassetsintofourkindssuchastradingfinancialassets,available-for-salefinancialassets,accountsreceivableandheld-to-maturityinvestmentaccordingtotheinvestmentpurposeandtheeconomynature.
TheCompanyclassifiesthefinancialliabilitiesintotwokindssuchasthefinancialliabilitiesmeasuredbyfairvaluewiththechangesincludedinthecurrentgainsandlossesandtheotherfinancialliabilitiesmeasuredbyamortizedcostaccordingtotheeconomynature.
(2)RecognitionbasisandmeasurementmethodsoffinancialinstrumentsThetradingfinancialassetsshouldbemeasuredbyfairvaluewiththechangesoffairvalueincludedinthecurrentgainsandlosses;theavailable-for-salefinancialassetsshouldbemeasuredbyfairvaluewiththechangesoffairvalueincludedintheowners’equities;andtheaccountsreceivableandtheheld-to-maturityinvestmentshouldbemeasuredbyamortizedcost.
(3)RecognitionbasisandmeasurementmethodsoffinancialinstrumentstransformationTheCompanytransfersordeliversafinancialassettoapartyotherthantheissuerofthefinancialassetandthetransformationofthefinancialassetscouldbewholeofthefinancialassetsorapartofit,whichincludingtwomethods:
Theenterprisetransferstherighttoanotherpartyforreceivingthecashflowofthefinancialasset;Theenterprisetransfersthefinancialassettoanotherparty,butmaintainstherighttoreceivethecashflowofthefinancialassetandundertakestheobligationtopaythecashflowitreceivestothefinalrecipient.
WheretheCompanyhastransferredapartornearlyalloftherisksandrewardsrelatedtotheownershipofthefinancialassettothetransferee,itshallstoprecognizingthefinancialassetandthedifferencebetweentheconsiderationreceivedandthebookvalueofthetransferredfinancialassetsshouldberecognizedasgainsandlossesandatthesametimetransferstheaccumulativegainsorlossesfromtherecognizedfinancialassetsamongtheoriginalowners’equitiesinthegainsandlosses;ifitretainednearlyalloftherisksandrewardsrelatedtotheownershipofthefinancialasset,itshallcontinuetorecognizethewholeorpartofthefinancialassetsandtheconsiderationreceivedberecognizedasfinancialliabilities.
WheretheCompanyneithertransfersnorretainsnearlyalloftherisksandrewardsrelatedtotheownershipofafinancialasset,anditdoesnotceaseitscontrolonthesaidfinancialasset,itrecognizestherelevantfinancialassetandliabilityaccordinglyaccordingtotheextentofitscontinuousinvolvementinthetransferredfinancialasset.
(4)De-recognitionconditionsoffinancialliabilitiesOnlywhentheprevailingobligationsofafinancialliabilityarerelievedinallorinpartmaytherecognitionofthefinancialliabilitybeterminatedinallorpartly.
(5)RecognitionmethodsofthefairvalueofmainfinancialassetsandfinancialliabilitiesAsforthefinancialassetsheldbytheCompanyorthefinancialliabilitiesplanstoundertake,ifthereexistsactivemarket,shouldadoptthecurrentofferingpriceintheactivemarket,andasforthefinancialassetsplanstobepurchasedbytheCompanyorthefinancialliabilitiesundertook,shouldadoptthecurrentofferingintheactivemarket,andifthereisnocurrentofferingpriceoraskingprice,shouldadoptthemarketquotationoftherecenttransactionsortheadjustedmarketquotationoftherecenttransactions,exceptforthereisdefiniteevidenceindicatethemarketquotationisnotthefairvalue.
Wherethereisnoactivemarketforafinancialinstrument,theenterpriseconcernedshalladoptvalueappraisaltechniques,includingthepricesadoptedbytheparties,whoarefamiliarwiththecondition,inthelatestmarkettransactionupontheirownfreewill,thecurrentfairvalueobtainedbyreferringtootherfinancial
instrumentsofthesameessentialnatureetc.
(6)Impairmenttestmethodandwithdrawalmethodsofimpairmentprovisionoffinancialassets(excludingaccountsreceivable)
TheCompanyshallcarryoutaninspection,onthebalancesheetday,onthecarryingamountofthefinancialassetsotherthanthosemeasuredattheirfairvaluesandofwhichthevariationisrecordedintotheprofitsandlossesofthecurrentperiod.Wherethereisanyobjectiveevidenceprovingthatsuchfinancialassethasbeenimpaired,animpairmentprovisionshallbemade.Forthefinancialassetswithsignificantsingleamount,ifthereisobjectiveevidenceindicatestheoccurredimpairment,shouldrecognizetheimpairmentlossesandshouldincludewhichinthecurrentgainsandlosses.Asforthefinancialassetswithinsignificantsingleamountbutnotoccurimpairment,theCompanyshouldexecutetheimpairmenttestbycreditgroupsaccordingtothecreditdegreeofthecustomersandtheactualsituationofthehappenofthebaddebtsovertheyearsforrecognizingtheimpairmentlosses.
Theexpression“objectiveevidenceprovingthatthefinancialassethasbeenimpaired”referstotheactuallyincurredeventswhich,afterthefinancialassetisinitiallyrecognized,haveanimpactonthepredictedfuturecashflowofthesaidfinancialassetthatcanbereliablymeasuredbytheenterprise.
Theobjectiveevidencesthatcanprovetheimpairmentofafinancialassetshallinclude:
Aseriousfinancialdifficultyoccurstotheissuerordebtor;Thedebtorbreachesanyofthecontractualstipulations,forexample,failstopayordelaysthepaymentofinterestsortheprincipal,etc.;
Thecreditormakesanyconcessiontothedebtorwhoisinfinancialdifficultiesduetoeconomicorlegalfactors,etc.;
Thedebtorwillprobablybecomebankruptorcarryoutotherfinancialreorganizations;Thefinancialassetcannolongercontinuetobetradedintheactivemarketduetoseriousfinancialdifficultiesoftheissuer;
Itisimpossibletoidentifywhetherthecashflowofacertainassetwithinacertaincombinationoffinancialassetshasdecreasedornot.Butaftermakinganoverallappraisalaccordingtothepublicdataavailable,itisfoundthatthepredictedfuturecashflowofthesaidcombinationoffinancialassetshasindeeddecreasedsinceitwasinitiallyrecognizedandsuchdecreasecanbemeasured,forexample,theabilityofthedebtorofthesaidcombinationoffinancialassetsworsensgradually,theunemploymentrateofthecountryorregionwherethedebtorissituatedincreases,thepricesoftheregionwheretheguarantyissituatedareobviouslydropping,ortheindustrialsectorconcernedisinslump,etc.;
Anyseriouslydisadvantageouschangehasoccurredtotechnical,market,economicorlegalenvironment,etc.whereinthedebtoroperatesitsbusiness,whichmakestheinvestorofanequityinstrumentunabletotakebackitsinvestment;
Wherethefairvalueoftheequityinstrumentinvestmentdropssignificantlyornotcontemporarily;Otherobjectiveevidencesshowingtheimpairmentofthefinancialasset.Whereafinancialassetmeasuredonthebasisofpost-amortizationcostsisimpaired,thecarryingamountofthesaidfinancialassetshallbecalculatedbythedifferencebetweenthebookvalueandthecurrentvalueofthepredictedfuturecashflowoftheimpairmentlosses.
Whereanyfinancialassetmeasuredonthebasisofpost-amortizationcostsisrecognizedashavingsufferedfromanyimpairmentloss,ifthereisanyobjectiveevidenceprovingthatthevalueofthesaidfinancialassethasbeenrestored,anditisobjectivelyrelatedtotheeventsthatoccuraftersuchlossisrecognized,theimpairment-relatedlossesasoriginallyrecognizedshallbereversedandberecordedintotheprofitsandlossesofthecurrentperiod.
Whereasellablefinancialassetisimpaired,eveniftherecognitionofthefinancialassethasnotbeenterminated,theaccumulativelossesarisingfromthedecreaseofthefairvalueoftheowner’sequitywhichisdirectlyincludedshallbetransferredoutandrecordedintotheprofitsandlossesofthecurrentperiod..Theaccumulativelossesaretheinitialcostafterdeductingtheprincipal,theamortizationamount,fairvalueofcurrentperiodandbalanceafteroriginallyrecordedintoimpairmentlossofprofitsorlosses.Aftertherecognitionofimpairmentlosses,ifthereisanyobjectiveevidenceindicatedthatthevalueoffinancialassetsisresumedandobjectivelyrelatedtotheeventsaftertherecognitionofimpairmentlosses,transfertheimpairmentlossesoriginallyrecognized,transfertheimpairmentlossesofavailableforsaleequityinstrumentinvestmentandrecognizedasothercomprehensiveincome,andtransfertheimpairmentlossesofavailableforsaleliabilityinstrumentsandrecordintocurrentprofitsorlosses.
11.Receivables(1)AccountsReceivablewithSignificantSingleAmountforwhichtheBadDebtProvisionisMade
Individually
| Recognitioncriteriaofaccountsreceivablewithindividualandsignificantamount | SignificantsingleamountsreferstotheaccountsreceivableofthesingleamountmorethanRMB1million(RMB1millioninclude)(includingaccountsreceivableandotheraccountsreceivable) |
| Withdrawalmethodofthebaddebtprovisionoftheaccountsreceivablewithsignificantsingleamounts | TheCompanymakesanindependentimpairmenttestontheaccountsreceivablewithsignificantsingleamount,andprovisionforbaddebtsshallwithdrawnonthebasisofthebalancebetweenthecurrentvaluesofthepredictedfuturecashflowlowerthanbookvalue.Uponindependentimpairmenttest,theaccountsreceivablewithsignificantsingleamountshasnotbeenimpaired,itshallbewithdrawnbaddebtprovisionbasedonendingbalancebyadoptingaginganalysismethod. |
(2)AccountsReceivablewhichtheBadDebtProvisioniswithdrawnbyCreditRiskCharacteristics
| Groupname | Withdrawalmethodofbaddebtprovision |
| theageoftheaccountsreceivableisdividedbythegroupsofcreditrisk | aginganalysismethod |
Inthegroups,thoseadoptingaginganalysismethodtowithdrawbaddebtprovision:
√Applicable□Notapplicable
| Aging | Withdrawalproportionofaccountreceivables | Withdrawalproportionofotheraccountreceivables |
| Within1year(including1year) | 2.00% | 2.00% |
| 1to2years | 5.00% | 5.00% |
| 2to3years | 15.00% | 15.00% |
| 3to4years | 30.00% | 30.00% |
| 4to5years | 60.00% | 60.00% |
| Over5years | 100.00% | 100.00% |
Inthegroups,thoseadoptingbalancepercentagemethodtowithdrawbaddebtprovision□Applicable√NotapplicableInthegroups,thoseadoptingothermethodstowithdrawbaddebtprovision:
□Applicable√Notapplicable(3)AccountsReceivablewithanInsignificantSingleAmountbutforwhichtheBadDebtProvisionisMadeIndependently
| Reasonofindividuallywithdrawingbaddebtprovision | InsignificantsingleamountsreferstotheaccountsreceivableofthesingleamountlowerthanRMB1million(RMB1millionnotinclude)(includingaccountsreceivableandotheraccountsreceivable). |
| Withdrawalmethodforbaddebtprovision | Asforanaccountreceivablewithaninsignificantsingleamountandwhichcannotshowitsriskfeaturewhenwithdrawingabad-betprovisionforitonthegroupbasis,thebad-debtprovisionfortheaccountreceivableshallbewithdrawnbasedonthedifferenceoftheexpectedpresentvalueofthefuturecashflowsoftheaccountreceivablethatlessthanitscarryingamount.TheCompanyshallwithdrawthebad-debtprovisionforsuchanaccountreceivablebycombiningtheagingmethodandindividualjudgmentbasedonthedebtorentity’sactualfinancialposition,cashflowsandotherrelevantinformation. |
12.InventoryIstheCompanysubjecttoanydisclosurerequirementsforspecialindustries?
No
(1)CategoryofInventory
Inventoryreferstotheheld-for-salefinishedproductsorcommodities,goodsinprocess,materialsconsumed
intheproductionprocessortheprocessprovidingthelaborserviceetc.Inventoryismainlyincludingtheraw
materials,lowpricedandeasilywornarticles,unfinishedproducts,inventoriesandworkinprocess–outsourced
etc.
(2)Pricingmethod
Purchasingandstorageofthevariousinventoriesshouldbevaluedaccordingtotheplanedcostandthe
dispatchbecalculatedaccordingtotheweightedaveragemethod;carriedforwardthecostofthefinishedproducts
accordingtotheactualcostofthecurrentperiodandthesalescostaccordingtotheweightedaveragemethod.
(3)Determinationbasisofthenetrealizablevalueofinventoryandwithdrawalmethodoftheprovisionfor
fallingpriceofinventory
Atthebalancesheetdate,inventoriesaremeasuredatthelowerofthecostsandnetrealizablevalue.When
alltheinventoriesarecheckedroundly,forthosewhichweredestroyed,outdatedinallorinpart,soldataloss,
etc,theCompanyshallestimatetheirrecoverablepartofitscostandwithdrawaltheinventoryfallingprice
reserveattheyear-end.Wherethecostofthesingleinventoryitemishigherthanthenetrealizablevalue,the
inventoryfallingpricereserveshallbewithdrawnandrecordedintoprofitsandlossesofthecurrentperiod.Of
which:inthenormalproductionandoperatingprocess,asforthecommoditiesinventorydirectlyforsalessuchas
thefinishedproducts,commoditiesandthematerialsforsales,shouldrecognizethenetrealizablevalueaccording
totheamountoftheestimatedsellingpriceoftheinventoryminusestheestimatedsellingexpensesandthe
relevanttaxes;asforthematerialsinventoryneedstobeprocessedinthenormalproductionandoperatingprocess,
shouldrecognizeitsnetrealizablevalueaccordingtotheamountoftheestimatedsellingpriceofthefinished
productsminusesthecostpredictstobeoccurwhentheproductioncompletesandtheestimatedsellingexpenses
aswellastherelevanttaxes;onthebalancesheetdate,forthesameinventorywithonepartagreedbythe
contractpriceandotherpartsnotbythecontractprice,shouldberespectivelyrecognizedthenetrealizablevalue.
Foritemsofinventoriesrelatingtoaproductlinethatareproducedandmarketedinthesamegeographicalarea,
havethesameorsimilarendusersorpurposes,andcannotbepracticablyevaluatedseparatelyfromotheritemsin
thatproductlineprovisionfordeclineinvalueisdeterminedonanaggregatebasis;forlargequantityandlow
valueitemsofinventories,provisionfordeclineinvalueismadebasedoncategoriesofinventories.
(4)Theperpetualinventorysystemismaintainedforstocksystem.
(5)Amortizationmethodoflow-valueconsumablesandpackages
Onetimeamortizationmethodisadoptedforlow-valueconsumablesandpackages.
13.AssetsHeldforSaleTheCompanyrecognizesthecomponents(orthenon-currentassets)whichmeetwiththefollowingconditionsas
assetsheldforsale:
(1)Thecomponentsmustbeimmediatelysoldonlyaccordingtotheusualtermsofsellingthiskindofcomponentsunderthecurrentconditions;(2)TheCompanyhadmadesolutionsondisposingthecomponents(orthenon-currentassets),forexample,theCompanyshouldgaintheapprovalfromtheshareholdersaccordingtotheregulationsandhadacquiredtheapprovedfromtheAnnualGeneralMeetingortherelevantauthorityinstitutions;(3)TheCompanyhadsignedtheirrevocabletransformationagreementwiththetransferee;(4)Thetransformationshouldbecompletedwithin1year.
14.Long-termEquityInvestments
(1)Judgmentstandardofjointcontrolandsignificantinfluences
Jointcontrol,referstothecontroljointlyownedaccordingtotherelevantagreementonanarrangementby
theCompanyandtherelevantactivitiesofthearrangementshouldbedecidedonlyaftertheparticipantswhich
sharethecontrolrightmakeconsensus.SignificantinfluencereferstothepoweroftheGroupwhichcould
anticipateinthefinanceandtheoperationpolicesoftheinvestees,butcouldnotcontrolorjointlycontrolthe
formulationofthepolicieswiththeotherparties.
(2)Recognitionforinitialinvestmentcost
Theinitialinvestmentcostofthelong-termequityinvestmentshallberecognizedbyadoptingthefollowing
waysinaccordancewithdifferentmethodsofacquisition:
①Asforthoseformsunderthesamecontroloftheenterprisecombine,ifthecombinepartytakesthecash
payment,non-cashassetstransformation,liabilitiesassumptionorequitysecuritiesissuanceasthecombination
consideration,shouldtakethesharesofthebookvaluebytheultimatecontrolpartyintheconsolidatefinancial
statementoftheowners’equitiesofthecombinersacquiredonthemergerdateastheinitialinvestmentcost.The
differencebetweentheinitialinvestmentcostandthebookvalueofthepaidcombinationconsiderationorthe
totalamountoftheissuedsharesofthelong-termequityinvestmentshouldbeadjustedthecapitalreserve;Ifthe
capitalreserveisinsufficienttodilute,theretainedearningsshallbeadjusted.Toincludeeachdirectrelevant
expenseoccurredwhenexecutingtheenterprisemergerintothecurrentgainsandlosses;whilethehandling
chargesandcommissionoccursfromtheissuingtheequitysecuritiesorthebondsfortheenterprisemerger
shouldbeincludedintheinitialmeasurementamountoftheshareholders’equitiesortheliabilities.
②Asforlong-termequityinvestmentacquiredthroughthemergerofenterprisesnotunderthesamecontrol,
itsinitialinvestmentcostshallregardasthecombinationcostcalculatedbythefairvalueoftheassets,equity
instrumentissuedandliabilitiesincurredorundertakenonthepurchasedateaddingthedirectcostrelatedwiththe
acquisition.Theidentifiableassetsofthecombinedpartyandtheliabilities(includingcontingentliability)
undertakenonthecombiningdateshallbemeasuredatthefairvaluewithoutconsideringtheamountofminority
interest.Theacquirershallrecognizethepositivebalancebetweenthecombinationcostsandthefairvalueofthe
identifiablenetassetsitobtainsfromtheacquireeasbusinessreputation.Theacquirershallrecordthenegative
balancebetweenthecombinationcostsandthefairvalueoftheidentifiablenetassetsitobtainsfromtheacquiree
intotheconsolidatedincomestatementdirectly.Theagentexpenseandotherrelevantmanagementexpensessuch
astheaudit,legalserviceandevaluationconsultationoccursfromtheenterprisemerger,shouldbeincludedinthe
currentgainsandlosseswhenoccur;whilethehandlingchargesandcommissionoccursfromtheissuingthe
equitysecuritiesorthebondsfortheenterprisemergershouldbeincludedintheinitialmeasurementamountof
theshareholders’equitiesortheliabilities.
③Long-terminvestmentobtainedbyothermeans
Theinitialcostofalong-termequityinvestmentobtainedbymakingpaymentincashshallbethepurchase
costwhichisactuallypaid.
Theinitialcostofalong-termequityinvestmentobtainedonthebasisofissuingequitysecuritiesshallbethe
fairvalueoftheequitysecuritiesissued.
Theinitialcostofalong-termequityinvestmentofaninvestorshallbethevaluestipulatedintheinvestment
contractoragreement,theunfairvaluestipulatedinthecontractoragreementshallbemeasuredatfairvalue.
Asforlong-terminvestmentobtainedbytheexchangeofnon-monetaryassets,whereitiscommercialin
nature,thefairvalueoftheassetssurrenderedshallberecognizedastheinitialcostofthelong-termequity
investmentreceived;whereitisnotcommercialinnature,thebookvalueoftheassetssurrenderedshallbe
recognizedastheinitialcostofthelong-termequityinvestmentreceived.
Theinitialcostofalong-termequityinvestmentobtainedbyrecombinationofliabilitiesshallberecognized
atfairvalueoflong-termequityinvestment.
(3)Subsequentmeasurementandrecognitionofprofitsandlosses
①Aninvestmentinthesubsidiarycompanyshallbemeasuredbyemployingthecostmethod
WheretheCompanyhold,andisabletodoequityinvestmentwithcontroloveraninvestedentity,the
investedentityshallbeitssubsidiarycompany.WheretheCompanyholdsthesharesofanentityover50%,or,
whiletheCompanyholdsthesharesofanentitybelow50%,buthasarealcontroltothesaidentity,thenthesaid
entityshallbeitssubsidiarycompany.
②Aninvestmentinthejointenterpriseorassociatedenterpriseshallbemeasuredbyemployingtheequity
method
WheretheCompanyhold,andisabletodoequityinvestmentwithjointcontrolwithotherpartiesoveran
investedentity,theinvestedentityshallbeitsjointenterprise.WheretheCompanyhold,andisabletohave
equityinvestmentwithsignificantinfluencesonaninvestedentity,theinvestedentityshallbeitsassociated
entity.
AftertheCompanyacquiredthelong-termequityinvestment,shouldrespectivelyrecognizeinvestment
incomeandothercomprehensiveincomeaccordingtothenetgainsandlossesaswellastheportionofother
comprehensiveincomewhichshouldbeenjoyedorbeshared,andatthesametimeadjustthebookvalueofthe
long-termequityinvestment;correspondingreducethebookvalueofthelong-termequityinvestmentaccording
toprofitswhichbedeclaredtodistributebytheinvesteesortheportionofthecalculationofcashdividendswhich
shouldbeenjoyed;fortheotherchangesexceptforthenetgainsandlosses,othercomprehensiveincomeandthe
owners’equityexceptfortheprofitsdistributionoftheinvestees,shouldadjustthebookvalueofthelong-term
equityinvestmentaswellasincludeintheowners’equity.
Theinvestingenterpriseshall,onthegroundofthefairvalueofallidentifiableassetsoftheinvestedentity
whenitobtainstheinvestment,recognizetheattributableshareofthenetprofitsandlossesoftheinvestedentity
afteritadjuststhenetprofitsoftheinvestedentity.
IftheaccountingpolicyadoptedbytheinvesteesisnotaccordwiththatoftheGroup,shouldbeadjusted
accordingtotheaccountingpoliciesoftheGroupandthefinancialstatementoftheinvesteesduringthe
accountingperiodandaccordingwhichtorecognizetheinvestmentincomeaswellasothercomprehensive
income.
ForthetransactionhappenedbetweentheCompanyandassociatedenterprisesaswellasjointventures,ifthe
assetslaunchedorsoldnotformintobusiness,theportionoftheunrealizedgainsandlossesoftheinternal
transaction,whichbelongstotheGroupaccordingtothecalculationoftheenjoyedproportion,shouldrecognize
theinvestmentgainsandlossesonthebasis.Butthelossesoftheunrealizedinternaltransactionhappened
betweentheCompanyandtheinvesteeswhichbelongstotheimpairmentlossesofthetransferredassets,should
notbeneutralized.
TheCompanyshallrecognizethenetlossesoftheinvestedenterpriseaccordingtothefollowingsequence:
firstofall,towritedownthebookvalueofthelong-termequityinvestment.Secondly,ifthebookvalueofthe
long-termequityinvestmentisinsufficientforwrittendown,shouldbecontinuedtorecognizedtheinvestment
losseslimitedtothebookvalueofotherlong-termequitywhichformsofthenetinvestmentoftheinvesteesand
towrittendownthebookvalueofthelong-termaccountsreceivableetc.Lastly,throughtheabovehandling,for
thoseshouldstillundertaketheadditionalobligationsaccordingtotheinvestmentcontractsortheagreements,it
shallberecognizedastheestimatedliabilitiesinaccordancewiththeestimateddutiesandthenrecordedinto
investmentlossesatcurrentperiod.Iftheinvestedentityrealizesanynetprofitslater,theGroupshall,afterthe
amountofitsattributableshareofprofitsoffsetsagainstitsattributableshareoftheun-recognizedlosses,resume
recognizingitsattributableshareofprofits.
Inthepreparationforthefinancialstatements,thebalanceexistedbetweenthelong-termequityinvestment
increasedbyacquiringsharesofminorityinterestandtheattributablenetassetsonthesubsidiarycalculatedby
theincreasedsharesheldsincethepurchasedate(orcombinationdate),thecapitalreservesshallbeadjusted,if
thecapitalreservesarenotsufficienttooffset,theretainedprofitsshallbeadjusted;theCompanydisposedpartof
thelong-termequityinvestmentonsubsidiarieswithoutlosingitscontrollingrightonthem,thebalancebetween
thedisposedpriceandattributablenetassetsofsubsidiariesbydisposingthelong-termequityinvestmentshallbe
recordedintoowners’equity.
Forotherwaysondisposaloflong-termequityinvestment,thebalancebetweenthebookvalueofthe
disposedequityanditsactualpaymentgainedshallberecordedintocurrentprofitsandlosses.
Forthelong-termequityinvestmentmeasuredbyadoptingequitymethod,iftheremainedequityafter
disposalstilladoptstheequitymethodformeasurement,theothercomprehensiveincomeoriginallyrecordedinto
owners’equityshouldadoptthesamebasisoftheaccountingdisposaloftherelevantassetsorliabilitiesdirectly
disposedbytheinvesteesaccordingtothecorrespondingproportion.Theowners’equityrecognizedowningtothe
changesoftheotherowners’equityexceptforthenetgainsandlosses,othercomprehensiveincomeandthe
profitsdistributionoftheinvestees,shouldbetransferredintothecurrentgainsandlossesaccordingtothe
proportion.
Forthelong-termequityinvestmentwhichadoptsthecostmethodofmeasurement,iftheremainedequity
stilladoptthecostmethod,theothercomprehensiveincomerecognizedowningtoadoptingtheequitymethodfor
measurementortherecognitionandmeasurementstandardsoffinancialinstrumentbeforeacquiringthecontrolof
theinvestees,shouldadoptthesamebasisoftheaccountingdisposaloftherelevantassetsorliabilitiesdirectly
disposedbytheinvesteesandshouldbecarriedforwardintothecurrentgainsandlossesaccordingtothe
proportion;thechangesoftheotherowners’equityexceptforthenetgainsandlosses,othercomprehensive
incomeandtheprofitsdistributionamongthenetassetsoftheinvesteeswhichrecognizedbyadoptingtheequity
methodformeasurement,shouldbecarriedforwardintothecurrentgainsandlossesaccordingtotheproportion.
ForthosetheCompanylostthecontroloftheinvesteesbydisposingpartoftheequityinvestmentaswellas
theremainedequityafterdisposalcouldexecutejointcontrolorsignificantinfluencesontheinvestees,should
changetomeasurebyequitymethodwhencompilingtheindividualfinancialstatementandshouldadjustthe
measurementoftheremainedequitytoequitymethodasadoptedsincethetimeacquired;iftheremainedequity
afterdisposalcouldnotexecutejointcontrolorsignificantinfluencesontheinvestees,shouldchangethe
accountingdisposalaccordingtotherelevantregulationsoftherecognitionandmeasurementstandardsof
financialinstrument,anditsdifferencebetweenthefairvalueandbookvalueonthedatelosethecontrolright
shouldbeincludedinthecurrentgainsandlosses.Fortheothercomprehensiveincomerecognizedbyadopting
equitymethodformeasurementortherecognitionandmeasurementstandardsoffinancialinstrumentbeforethe
Groupacquiredthecontroloftheinvestees,shouldexecutetheaccountingdisposalbyadoptingthesamebasisof
theaccountingdisposaloftherelevantassetsorliabilitiesdirectlydisposedbytheinvesteeswhenlosethecontrol
ofthem,whilethechangesoftheotherowners’equityexceptforthenetgainsandlosses,othercomprehensive
incomeandtheprofitsdistributionamongthenetassetsoftheinvesteeswhichrecognizedbyadoptingtheequity
methodformeasurement,shouldbecarriedforwardintothecurrentgainsandlossesaccordingtotheproportion.
Ofwhich,forthedisposedremainedequitywhichadoptedtheequitymethodformeasurement,theother
comprehensiveincomeandtheotherowners’equityshouldbecarriedforwardaccordingtotheproportion;forthe
disposedremainedequitywhichchangedtoexecutetheaccountingdisposalaccordingtotherecognitionand
measurementstandardsoffinancialinstrument,theothercomprehensiveincomeandtheotherowners’equity
shouldbecarriedforwardinfullamount.
ForthosetheCompanylostthecontroloftheinvesteesbydisposingpartoftheequityinvestment,the
disposedremainedequityshouldchangetocalculateaccordingtotherecognitionandmeasurementstandardsof
financialinstrument,anddifferencebetweenthefairvalueandbookvalueonthedatelosethecontrolrightshould
beincludedinthecurrentgainsandlosses.Fortheothercomprehensiveincomerecognizedfromtheoriginal
equityinvestmentbyadoptingtheequitymethod,shouldexecutetheaccountingdisposalbyadoptingthesame
basisoftheaccountingdisposaloftherelevantassetsorliabilitiesdirectlydisposedbytheinvesteeswhen
terminatetheequitymethodformeasurement,whilefortheowners’equityrecognizedowningtothechangesof
theotherowner’sequityexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofits
distributionoftheinvestees,shouldbetransferredintothecurrentinvestmentincomewithfullamountwhen
terminateadoptingtheequitymethod.
15.InvestmentRealEstate
Measurementmodeofinvestmentrealestate:
Measurementofcostmethod
Depreciationoramortizationmethod
Theinvestmentrealestateshallbemeasuredatitscost.Ofwhich,thecostofaninvestmentrealestateby
acquisitionconsistsoftheacquisitionprice,relevanttaxes,andotherexpensedirectlyrelegatedtotheasset;the
costofaself-builtinvestmentrealestatecomposesofthenecessaryexpensesforbuildingtheassettothehoped
conditionforuse.Theinvestmentrealestateinvestedbyinvestorsshallberecordedatthevaluestipulatedinthe
investmentcontractsoragreements,buttheunfairvalueappointedinthecontractoragreementshallbeentered
intotheaccountbookatthefairvalue.
Asforwithdrawalbasisofprovisionforimpairmentofinvestmentrealestates,pleaserefertowithdrawal
methodforprovisionforimpairmentoffixedassets.
16.FixedAssets(1)RecognitionConditions
Fixedassetsreferstothetangibleassetsthatsimultaneouslypossessthefeaturesasfollows:(a)theyareheld
forthesakeofproducingcommodities,renderinglaborservice,rentingorbusinessmanagement;and(b)their
usefullifeisinexcessofonefiscalyear.Thefixedassetsareonlyrecognizedwhentherelevanteconomic
benefitsprobablyflowintheCompanyanditscostcouldbereliablemeasured.
(2)DepreciationMethod
| Categoryoffixedassets | Method | Usefullife | Expectednetsalvagevalue | Annualdeprecation |
| Housingandbuilding | Averagemethodofusefullife | 20-40 | 2.50-5 | |
| Machineryequipment | Averagemethodofusefullife | 6-15 | 6.67-16.67 | |
| Transportationequipment | Averagemethodofusefullife | 5-10 | 10-20 | |
| Electronicequipment | Averagemethodofusefullife | |||
| Otherequipment | Averagemethodofusefullife | 5-10 | 10-20 |
(3)RecognitionBasis,PricingandDepreciationMethodofFixedAssetsbyFinanceLease
TheCompanyrecognizesthosemeetwiththefollowingoneorcertainstandardsasthefixedassetsby
financelease:①Theleasingcontracthadagreedthat(ormadethereasonablejudgmentaccordingtotherelevant
conditionsontheleasestartingdate)whentheleasetermexpires,theownershipofleasingthefixedassetscould
betransferredtotheCompany;②TheCompanyownsthechoosingrightforpurchasingandleasingthefixed
assets,withthesetpurchasepricewhichisestimatedfarlowerthanthefairvalueofthefixedassetsbyfinance
leasewhenexecutingthechoosingright,sotheCompanycouldexecutethechoosingrightreasonablyonthelease
startingdate;③Eveniftheownershipofthefixedassetsnotbetransferred,theleaseperiodisof75%orabove
oftheusefullifeoftheleasefixedassets;④Thecurrentvalueoftheminimumleasepaymentonthelease
startingdateoftheCompanyisequalto90%oraboveofthefairvalueoftheleasefixedassetsonthelease
startingdate;thecurrentvalueoftheminimumleasereceiptsontheleasestartingdateoftheleaserisequalto
90%oraboveofthefairvalueoftheleasefixedassetsontheleasestartingdate;⑤Thenatureoftheleaseassets
isspecialthatonlytheCompanycoulduseitifnotexecutelargetransformation.Thefixedassetsbyfinancelease
shouldtaketheloweronebetweenthefairvalueoftheleasingassetsandthecurrentvalueoftheminimumlease
paymentontheleasestartingdateastheentryvalue.Asfortheminimumleasepaymentwhichberegardedasthe
entryvalueofthelong-termaccountspayable,itsdifferenceshouldberegardedastheunrecognizedfinancing
expense.Fortheinitialdirectexpensesoccurintheleasenegotiationsandthesigningprocessofthelease
contractsthatattributetothehandlingexpenses,counselfees,travelexpensesandstamptaxesoftheleaseitems,
shouldbeincludedinthecharter-inassetsvalue.Theunrecognizedfinancingexpensesshouldbeamortizedby
adoptingtheactualinterestrateduringtheperiodoftheleaseterm.Thefixedassetsbyfinanceleaseshalladopt
thesamedepreciationpolicyforself-ownedfixedassets.Ifitisreasonabletobecertainthatthelesseewillobtain
theownershipoftheleasedassetwhentheleasetermexpires,theleasedassetshallbefullydepreciatedoverits
usefullife.Ifitisnotreasonabletobecertainthatthelesseewillobtaintheownershipoftheleasedassetatthe
expiryoftheleaseterm,theleasedassetshallbefullydepreciatedovertheshorteroneoftheleasetermorits
usefullife.
17.ConstructioninProgress
(1)Valuationoftheprogressinconstruction
Constructioninprogressshallbemeasuredatactualcost.Self-operatingprojectsshallbemeasuredatdirect
materials,directwagesanddirectconstructionfees;constructioncontractshallbemeasuredatprojectprice
payable;projectcostforplantengineeringshallberecognizedatvalueofequipmentsinstalled,costofinstallation,
trailrunofprojects.Costsofconstructioninprocessalsoincludeborrowingcostsandexchangegainsandlosses,
whichshouldbecapitalized.
(2)Standardizationonconstructioninprocesstransferredintofixedassetsandtimepoint
Theconstructioninprocess,ofwhichthefixedassetsreachtothepredictedconditionforuse,shallcarry
forwardfixedassetsonschedule.Theonethathasnotauditedthefinalaccountingshallrecognizethecostand
makedepreciationinlinewithvaluationvalue.Theconstructioninprocessshalladjusttheoriginalvaluation
valueatitshistoricalcostbutnotadjustthedepreciationthathasbeenmadeafterauditingthefinalaccounting.
18.BorrowingCosts
(1)Recognitionprincipleofcapitalizationofborrowingcosts
Theborrowingcostsshallincludetheinterestonborrowings,amortizationofdiscountsorpremiumson
borrowings,ancillaryexpenses,andexchangebalanceonforeigncurrencyborrowings.Wheretheborrowing
costsoccurredbelongtospecificallyborrowedloanorgeneralborrowingusedfortheacquisitionandconstruction
ofinvestmentrealestatesandinventoriesoveroneyear(includingoneyear)shallbecapitalized,andrecordinto
relevantassetscost.Otherborrowingcostsshallberecognizedasexpensesonthebasisoftheactualamount
incurred,andshallberecordedintothecurrentprofitsandlosses.Theborrowingcostsshallnotbecapitalized
unlesstheysimultaneouslymeetthefollowingthreerequirements:(1)Theassetdisbursementshavealready
incurred;(2)Theborrowingcostshavealreadyincurred;and(3)Theacquisitionandconstructionorproduction
activitieswhicharenecessarytopreparetheassetforitsintendeduseorsalehavealreadystarted.
(2)Theperiodofcapitalizationofborrowingcosts
Theborrowingcostsarisingfromacquisitionandconstructionoffixedassets,investmentrealestatesand
inventories,iftheymeettheabove-mentionedcapitalizationconditions,thecapitalizationoftheborrowingcosts
shallbemeasuredintoassetcostbeforesuchassetsreachtotheintendeduseorsale,Whereacquisitionand
constructionoffixedassets,investmentrealestatesandinventoriesisinterruptedabnormallyandtheinterruption
periodlastsformorethan3months,thecapitalizationoftheborrowingcostsshallbesuspended,andrecorded
intothecurrentexpense,tilltheacquisitionandconstructionoftheassetsrestarts.Whenthequalifiedassetis
readyfortheintendeduseorsale,thecapitalizationoftheborrowingcostsshallbeceased,theborrowingcosts
occurredlatershallbeincludedintothefinancialexpensedirectlyatthecurrentperiod.
(3)Measurementmethodofcapitalizationamountofborrowingcosts
Asforspecificallyborrowedloansfortheacquisitionandconstructionorproductionofassetseligiblefor
capitalization,theto-be-capitalizedamountofinterestsshallbedeterminedinlightoftheactualcostincurredof
thespeciallyborrowedloanatthepresentperiodminustheincomeofinterestsearnedontheunusedborrowing
loansasadepositinthebankorasatemporaryinvestment.
Whereageneralborrowingisusedfortheacquisitionandconstructionorproductionofassetseligiblefor
capitalization,theenterpriseshallcalculateanddeterminetheto-be-capitalizedamountofinterestsonthegeneral
borrowingbymultiplyingtheweightedaverageassetdisbursementofthepartoftheaccumulativeasset
disbursementsminusthegeneralborrowingbythecapitalizationrateofthegeneralborrowingused.The
capitalizationrateshallbecalculatedanddeterminedinlightoftheweightedaverageinterestrateofthegeneral
borrowing.
19.IntangibleAssets(1)PricingMethod,ServiceLife,andImpairmentTest
(1)Pricingmethodofintangibleassets
Intangibleassetspurchasedshouldtaketheactualpaymentandtherelevantotherexpensesastheactualcost.
Fortheintangibleassetsinvestedbytheinvestorsshouldberecognizedtheactualcostaccordingtothevalue
oftheinvestmentcontractsoragreements,however,forthevalueofthecontractsoragreementsisnotfair,the
actualcostshouldberecognizedaccordingtothefairvalue.
Fortheintangibleassetsacquiresfromtheexchangeofthenon-currencyassets,ifownthecommercial
nature,shouldberecordedaccordingtothefairvalueoftheswap-outassets;forthosenotownthecommercial
nature,shouldberecordedaccordingtothebookvalueoftheswap-outassets.
Fortheintangibleassetsacquiresfromthedebtsreorganizationshouldberecognizedbythefairvalue.
(2)Amortizationmethodandtermofintangibleassets
Asfortheintangibleassetswithlimitedservicelife,whichareamortizedbystraight-linemethodwhenitis
availableforusewithintheserviceperiod,shallberecordedintothecurrentprofitsandlosses.TheCompany
shall,atleastattheendofeachyear,checktheservicelifeandtheamortizationmethodofintangibleassetswith
limitedservicelife.Whentheservicelifeandtheamortizationmethodofintangibleassetsaredifferentfromthose
before,theyearsandmethodoftheamortizationshallbechanged.
Intangibleassetswithuncertainservicelifemaynotbeamortized.However,theCompanyshallcheckthe
servicelifeofintangibleassetswithuncertainservicelifeduringeachaccountingperiod.Wherethereare
evidencestoprovetheintangibleassetshavelimitedservicelife,itshallbeestimatedofitsservicelife,andbe
amortizedaccordingtotheabovemethodmentioned.
TherightstouselandoftheCompanyshallbeamortizedaccordingtotherestservicelife.
(2)AccountingPolicesofInternalR&DExpenses
Theinternalresearchanddevelopmentprojectsofanenterpriseshallbeclassifiedintoresearchphaseand
developmentphase:theterm“research”referstothecreativeandplannedinvestigationtoacquireandunderstand
newscientificortechnologicalknowledge;theterm“development”referstotheapplicationofresearch
achievementsandotherknowledgetoacertainplanordesign,priortothecommercialproductionoruse,soasto
produceanynewmaterial,deviceorproduct,orsubstantiallyimprovedmaterial,deviceandproduct.
TheCompanycollectstheexpensesofthecorrespondingphasesaccordingtotheabovestandardof
classifyingtheresearchphaseandthedevelopmentphase.Theresearchexpendituresforitsinternalresearchand
developmentprojectsofanenterpriseshallberecordedintotheprofitorlossforthecurrentperiod.The
developmentexpendituresforitsinternalresearchanddevelopmentprojectsofanenterprisemaybecapitalized
whentheysatisfythefollowingconditionssimultaneously:itisfeasibletechnicallytofinishintangibleassetsfor
useorsale;itisintendedtofinishanduseorselltheintangibleassets;theusefulnessofmethodsforintangible
assetstogenerateeconomicbenefitsshallbeproved,includingbeingabletoprovethatthereisapotentialmarket
fortheproductsmanufacturedbyapplyingtheintangibleassetsorthereisapotentialmarketfortheintangible
assetsitselfortheintangibleassetswillbeusedinternally;itisabletofinishthedevelopmentoftheintangible
assets,andabletouseorselltheintangibleassets,withthesupportofsufficienttechnologies,financialresources
andotherresources;thedevelopmentexpendituresoftheintangibleassetscanbereliablymeasured.
20.ImpairmentofLong-termAssets
Fornon-currentfinancialAssetsoffixedAssets,projectsunderconstruction,intangibleAssetswithlimited
servicelife,investingrealestatewithcostmodel,long-termequityinvestmentofsubsidiaries,cooperative
enterprisesandjointventures,theGroupshouldjudgewhetherdecreaseinvalueexistsonthedateofbalance
sheet.Recoverableamountsshouldbetestedfordecreaseinvalueifitexists.OtherintangibleAssetsofreputation
anduncertainservicelifeandothernon-accessibleintangibleassetsshouldbetestedfordecreaseinvalueno
matterwhetheritexists.
Iftherecoverableamountislessthanbookvalueinimpairmenttestresults,theprovisionforimpairmentof
differencesshouldincludeinimpairmentloss.Recoverableamountswouldbethehigherofnetvalueofassetfair
valuedeductingdisposalchargesorpresentvalueofpredictedcashflow.Assetfairvalueshouldbedetermined
accordingtonegotiatedsalespriceoffairtrade.Ifnosalesagreementexistsbutwithassetactivemarket,fair
valueshouldbedeterminedaccordingtotheBuyer’spriceoftheasset.Ifnosalesagreementorassetactive
marketexists,assetfairvaluecouldbeacquiredonthebasisofbestinformationavailable.Disposalexpenses
includelegalfees,taxes,cartageorotherdirectexpensesofmerchantableAssetsrelatedtoassetdisposal.Present
valueofpredictedassetcashflowshouldbedeterminedbytheproperdiscountrateaccordingtoAssetsinservice
andpredictedcashflowoffinaldisposal.Assetdepreciationreservesshouldbecalculatedonthebasisofsingle
Assets.IfitisdifficulttopredicttherecoverableamountsforsingleAssets,recoverableamountsshouldbe
determinedaccordingtothebelongingassetgroup.Assetgroupistheminimumassetcombinationproducingcash
flowindependently.
Inimpairmenttest,bookvalueofthebusinessreputationinfinancialreportshouldbesharedtobeneficial
assetgroupandassetgroupcombinationincollaborationofbusinessmerger.Itisshowninthetestthatif
recoverableamountsofsharedbusinessreputationassetgrouporassetgroupcombinationarelowerthanbook
value,itshoulddeterminetheimpairmentloss.Impairmentlossamountshouldfirstlybedeductedandsharedto
thebookvalueofbusinessreputationofassetgrouporassetgroupcombination,thendeductbookvalueofall
assetsaccordingtoproportionsofotherbookvalueofaboveassetsinassetgrouporassetgroupcombination
exceptbusinessreputation.
Aftertheassetimpairmentlossisdetermined,recoverablevalueamountswouldnotbereturnedinfuture.
21.AmortizationMethodofLong-termDeferredExpenses
Long-termdeferredexpansesoftheCompanyshallberecordedinlightoftheactualexpenditure,and
amortizedaveragelywithinbenefitperiod.Incaseofnobenefitinthefutureaccountingperiod,theamortized
valueofsuchprojectthatfailstobeamortizedshallbetransferredintotheprofitsandlossesofthecurrentperiod.
22.Payroll(1)AccountingTreatmentofShort-termCompensation
Short-termcompensationmainlyincludingsalary,bonus,allowancesandsubsidies,employeeservicesand
benefits,medicalinsurancepremiums,birthinsurancepremium,industrialinjuryinsurancepremium,housing
fund,laborunionexpenditureandpersonneleducationfund,non-monetarybenefitsetc.Theshort-term
compensationactuallyhappenedduringtheaccountingperiodwhentheactivestaffofferingtheserviceforthe
Groupshouldberecognizedasliabilitiesandisincludedinthecurrentgainsandlossesorrelevantassetscost.Of
whichthenon-monetarybenefitsshouldbemeasuredaccordingtothefairvalue.
(2)AccountingTreatmentoftheWelfareafterDemission
TheCompanyclassifiesthewelfareplansafterdemissionintodefinedcontributionplansanddefinedbenefit
plans.Welfareplansafterdemissionreferstotheagreementonthewelfareafterdemissionreachesbetweenthe
Companyandtheemployees,ortheregulationsormethodsformulatedbytheCompanyforprovidingthewelfare
afterdemissionfortheemployees.Ofwhich,definedcontributionplansreferstothewelfareplansafterdemission
thattheCompanynomoreundertakethefurtherpaymentobligationsafterthepaymentofthefixedexpensesfor
theindependentfunds;definedbenefitplans,referstothewelfareplansafterdemissionexceptforthedefined
contributionplans.
Definedcontributionplans
DuringtheaccountingperiodthattheCompanyprovidingtheservicefortheemployees,theCompany
shouldrecognizetheliabilitiesaccordingtothedepositedamountcalculatedbydefinedcontributionplans,and
shouldbeincludedinthecurrentgainsandlossesortherelevantassetscost.
(3)AccountingTreatmentoftheDemissionWelfare
TheCompanyshouldrecognizethepayrollpaymentliabilitiesoccurfromthedemissionwelfareaccordingto
theearlierdatebetweenthefollowingtwoconditionsandincludewhichinthecurrentgainsandlosseswhen
providingthedemissionwelfarefortheemployees:theCompanycouldnotunilaterallywithdrawthedemission
welfareowningtotherelieveplansofthelaborrelationshiporreduction;whentheCompanyrecognizingthe
costsorexpensesrelatedtothereorganizationinvolveswiththedemissionwelfarepayments.
(4)AccountingTreatmentoftheWelfareofOtherLong-termStaffs
TheCompanyprovidingemployeeswithdemissionwelfareshallconfirmemployeebenefitsliabilitiesinthe
earlieroneofthefollowingtimes,andrecordedasthecurrentprofitorloss:thetimewhentheCompanycannot
unilaterallywithdrawlayoffproposalterminationbenefitsprovidedduetoterminationofemployment;thetime
whentheCompanyensuresthecostsrelatedtothepaymentforterminationbenefitsrelatedtotherestructuring.
23.EstimatedLiabilities
(1)Criteriaofestimatedliabilities
Onlyiftheobligationpertinenttoacontingenciesshallberecognizedasanestimateddebtswhenthe
followingconditionsaresatisfiedsimultaneously:
①ThatobligationisacurrentobligationoftheCompany;
②ItislikelytocauseanyeconomicbenefittoflowoutoftheCompanyasaresultofperformanceofthe
obligation;
③Theamountoftheobligationcanbemeasuredinareliableway.
(2)Measurementofestimatedliabilities
TheCompanyshallmeasuretheestimateddebtsinaccordancewiththebestestimateofthenecessary
expensesfortheperformanceofthecurrentobligation.
TheCompanyshallcheckthebookvalueoftheestimateddebtsontheBalanceSheetDate.Ifthereisany
conclusiveevidenceprovingthatthesaidbookvaluecan’ttrulyreflectthecurrentbestestimate,theCompany
shall,subjecttochange,makeadjustmenttocarryingvaluetoreflectthecurrentbestestimate.
24.Revenue
IstheCompanysubjecttoanydisclosurerequirementsforspecialindustries?
No
(1)Recognitionofrevenuefromsaleofgoods:therevenuefromsellingshallberecognizedbythefollowing
conditions:Thesignificantrisksandrewardsofownershipofthegoodshavebeentransferredtothebuyerbythe
Company;theCompanyretainsneithercontinuousmanagementrightthatusuallykeepsrelationwiththe
ownershipnoreffectivecontroloverthesoldgoods;therelevantamountofrevenuecanbemeasuredinareliable
way;therelevantrevenueandcostsofsellinggoodscanbemeasuredinareliableway.Theamountoftherevenue
fromsellingshallascertaintherevenueincurredbysellinggoodsinaccordancewiththereceivedorreceivable
pricestipulatedinthecontractoragreementsignedbetweentheenterpriseandthebuyer,unlessthereceivedor
receivableamountasstipulatedinthecontractoragreementisunfair.
(2)Recognitionofrevenuefromprovidinglaborservices:Whenthetotalrevenueandcostsfromproviding
laborcanbemeasuredinareliableway;therelevanteconomicbenefitsarelikelytoflowintotheenterprise;the
scheduleofcompletionunderthetransactioncanbemeasuredinareliableway,therevenuefromprovidinglabor
shallberecognized.IftheCompanycanreliablyestimatetheoutcomeofatransactionconcerningthelabor
servicesitprovides,itshallrecognizetherevenuefromprovidingservicesemployingthe
percentage-of-completionmethodonthedateofthebalancesheet,otherwisetherevenuefromtheprovidingof
laborservicesshallberecognizedinaccordancewiththeamountofthecostoflaborservicesincurredand
expectedtobecompensated.TheCompanyrecognizedthecompletionprocessofthetransactionconcerningthe
laborservicesaccordingtotheproportionoftheoccurredcostoftheestimatedtotalcost.Thetotalamountofthe
revenuefromprovidingservicesshouldberecognizedaccordingtothecontractpricereceivedorreceivablefrom
theacceptingofthelaborservicesortheagreementpriceexceptforthoseunfairprices.
(3)Recognitionoftherevenuefromtransferringuserightsofassets:Whentherelevanteconomicbenefits
arelikelytoflowintotheenterprisesandtheamountofrevenuescanbemeasuredinareliableway,therevenue
fromabalienatingtherighttouseassetsshallberecognized.Theamountofinterestrevenueshouldbemeasured
andconfirmedinaccordancewiththelengthoftimeforwhichtheenterprise'scashisusedbyothersandthe
actualinterestrate；theamountofroyaltyrevenueshouldbemeasuredandconfirmedinaccordancewiththe
periodandmethodofchargingasstipulatedintherelevantcontractoragreement；asfortherentalrevenue:the
amountoftherentalrevenuefromtheoperationleaseshouldberecognizedaccordingtothestraight-linemethod
duringeachperiodoftheleasetermoraccruedintothecurrentgainsandlossesifrentalactualoccurred.
25.GovernmentSubsidies(1)JudgmentBasisandAccountingTreatmentofGovernmentSubsidiesRelatedtoAssets
Agovernmentsubsidymeansthemonetaryornon-monetaryassetsobtainedfreebyanenterprisefromthe
government.Governmentsubsidiesconsistofthegovernmentsubsidiespertinenttoassetsandgovernment
subsidiespertinenttoincomeaccordingtotherelevantgovernmentdocuments.
Forthosethegovernmentdocumentsnotdefinitestipulatetheassistanceobject,thejudgmentbasisofthe
Companyclassifiesthegovernmentsubsidiespertinenttoassetsandgovernmentsubsidiespertinenttoincomeis:
whetherareusedforpurchasingorconstructingorforformingthelong-termassetsbyothermethods.
Thegovernmentsubsidiesshouldberecognizedonlywhenmeetwiththeattachedconditionsofthe
governmentsubsidiesaswellascouldbeacquired.
Ifthegovernmentsubsidiesarethemonetaryassets,shouldbemeasuredaccordingtothereceivedor
receivableamount;andforthegovernmentsubsidiesarethenon-monetaryassets,shouldbemeasuredbyfair
value.
Thegovernmentsubsidiespertinenttoassetsshallberecognizedasdeferredincome,andincludedinthe
currentgainsandlossesoroffsetthebookvalueofrelatedassetswithintheusefullivesoftherelevantassetswith
areasonableandsystematicmethod.
(2)JudgmentBasisandAccountingTreatmentofGovernmentSubsidiesPertinenttoIncomes
Governmentsubsidiesusedtocompensatetherelevantcosts,expensesorlossesoftheCompanyinthe
subsequentperiodshallberecognizedasdeferredincome,andshallbeincludedinthecurrentprofitandloss
duringtheperiodofconfirmingtherelevantcosts,expensesorlosses;thoseusedtocompensatetherelevantcosts,
expensesorlossesoftheCompanyalreadyhappenedshallbeincludedinthecurrentgainsandlossesorusedto
offsetrelevantcostsdirectly.
Forgovernmentsubsidiesthatincludebothassets-relatedandincome-relatedparts,theyshouldbe
distinguishedseparatelyforaccountingtreatment;forgovernmentsubsidiesthataredifficulttobedistinguished,
theyshouldbeclassifiedasincome-related.
GovernmentsubsidiesrelatedtothedailyactivitiesoftheCompanyshallbeincludedintootherincomeor
usedtooffsetrelevantcostsbythenatureofeconomicbusiness;thoseunrelatedshallbeincludedinto
non-operatingincome.
Thegovernmentsubsidiesrecognizedwithrelevantdeferredincomebalancebutneedtoreturnshallbeused
tooffsetthebookbalanceofrelevantdeferredincome,theexcessivepartshallbeincludedinthecurrentgains
andlossesoradjustingthebookvalueofassetsforthegovernmentsubsidiesassets-relatedthatoffsetthebook
valueofrelevantassetswhentheyareinitiallyrecognized;thosebelongtoothercasesshallbedirectlyincludedin
thecurrentgainsandlosses.
26.DeferredIncomeTaxAssetsandLiabilities
(1)Basisofrecognizingthedeferredincometaxassets
Accordingtothedifferencebetweenthebookvalueoftheassetsandliabilitiesandtheirtaxbasis,Adeferred
taxassetsshallbemeasuredinaccordwiththetaxratesthatareexpectedtoapplytotheperiodwhentheassetis
realizedortheliabilityissettled.
TherecognitionofthedeferredincometaxassetsislimitedbytheincometaxpayablethattheCompany
probablygainsfordeductingthedeductibletemporarydifferences.Atthebalancesheetdate,wherethereisstrong
evidenceshowingthatsufficienttaxableprofitwillbeavailableagainstwhichthedeductibletemporarydifference
canbeutilized,thedeferredtaxassetunrecognizedinpriorperiodshallberecognized.
TheCompanyassessesthecarryingamountofdeferredtaxassetatthebalancesheetdate.Ifit’sprobable
thatsufficienttaxableprofitwillnotbeavailableagainstwhichthedeductibletemporarydifferencecanbeutilized,
theCompanyshallwritedownthecarryingamountofdeferredtaxasset,orreversetheamountwrittendownlater
whenit’sprobablethatsufficienttaxableprofitwillbeavailable.
(2)Basisofrecognizingthedeferredincometaxliabilities
Accordingtothedifferencebetweenthebookvalueoftheassetsandliabilitiesandtheirtaxbasis,Adeferred
taxliabilitiesshallbemeasuredinaccordwiththetaxratesthatareexpectedtoapplytotheperiodwhentheasset
isrealizedortheliabilityissettled.
27.Lease(1)AccountingTreatmentofOperatingLease
Lesseeinanoperatingleaseshalltreattheleasepaymentunderanoperatingleaseasarelevantassetcostor
thecurrentprofitorlossonastraight-linebasisovertheleaseterm.Theinitialdirectcostsincurredshallbe
recognizedasthecurrentprofitorloss;Contingentrentsshallbechargedasexpensesintheperiodsinwhichthey
areincurred.
Lessorsinanoperatingleaseshallberecognizedasthecurrentprofitorlossonastraight-linebasisoverthe
leaseterm;Initialdirectcostsincurredbylessorsshallberecognizedasthecurrentprofitorloss;theinitialdirect
expensesoccurshouldbedirectlyincludedinthecurrentgainsandlossesexceptforthosewithlargeramountand
becapitalizedaswellasbeincludedinthegainsandlossesbystages.Contingentrentsshallbechargedas
expensesintheperiodsinwhichtheyareincurred.
(2)AccountingTreatmentsofFinancialLease
WhentheCompanyasthelessee,Ontheleasebeginningdate,theCompanyshallrecordtheloweroneofthe
fairvalueoftheleasedassetandthepresentvalueoftheminimumleasepaymentsontheleasebeginningdateas
theenteringvalueinanaccount,recognizetheamountoftheminimumleasepaymentsastheenteringvalueinan
accountoflong-termaccountpayable,andtreatthebalancebetweentherecordedamountoftheleasedassetand
thelong-termaccountpayableasunrecognizedfinancingchargesandtheoccurredinitialdirectexpenses,should
berecordedintheleaseassetsvalue.Duringeachleaseperiod,shouldrecognizethecurrentfinancingexpenses
byadoptingtheactualinterestrate.
WhentheCompanyastheleasorandonthebeginningdateoftheleaseterm,theCompanyshallrecognize
thesumoftheminimumleasereceiptsontheleasebeginningdateandtheinitialdirectcostsastheenteringvalue
inanaccountofthefinancingleasevaluesreceivable,andrecordtheunguaranteedresidualvalueatthesametime.
Thebalancebetweenthesumoftheminimumleasereceipts,theinitialdirectcostsandtheunguaranteedresidual
valueandthesumoftheirpresentvaluesshallberecognizedasunrealizedfinancingincome.Duringeachlease
period,shouldrecognizethecurrentfinancingrevenuesadoptingtheactualinterestrate.
28.OtherSignificantAccountingPoliciesandEstimates
(1)Operationtermination
Operationterminationreferstothecomposepartthatmeetwithoneofthefollowingconditionswhichhad
beendisposedbytheGrouporbeclassifiedtoheld-to-soldaswellascouldbeindividuallydistinguishedin
operatingandcompilingthefinancialstatement:
①Thecomposepartrepresentsanindividualmainbusinessoramainoperationarea;
②Thecomposepartisapartintendstodisposeandplananindividualmainbusinessoramainoperation
area;
③Thecomposepartisasubsidiarywhichbeacquiredonlyforresold.
(2)Hedgingaccounting
Theterm“hedging”referstooneormorehedginginstrumentswhicharedesignatedbyanenterprisefor
avoidingtherisksofforeignexchange,interestrate,commodityprice,stockprice,creditandetc.,andwhichis
expectedtomakethechangesinfairvalueorcashflowofhedginginstrument(s)tooffsetallorpartofthe
changesinthefairvalueorcashflowofthehedgeditem.
Theterm“hedginginstrument”shallrefertoaderivativeinstrumentwhichisdesignatedbyanenterprisefor
hedgingandbywhichitisexpectedthatchangesinitsfairvalueorcashflowcanoffsetthechangesinfairvalue
orcashflowofthehedgeditem.Forahedgingofforeignexchangerisk,anon-derivativefinancialassetor
non-derivativefinancialliabilitymaybeusedasahedginginstrument.
The“hedgeditem”shallrefertothefollowingitemswhichmakeanenterprisefacedtochangesinfairvalue
orcashflowandaredesignatedasthehedgedobjectives.
Thehedgingshouldbeexecutedbythehedgingaccountingmethodswhensatisfyingthefollowing
conditionsatthesametime:
①Atthecommencementofthehedging,theenterpriseshallspecifythehedgingrelationshipformally
(namelytherelationshipbetweenthehedginginstrumentandthehedgeditem)andprepareaformalwritten
documentonthehedgingrelationship,riskmanagementobjectivesandthestrategiesofhedging.
②Thehedgingexpectationishighlyefficientandmeetstheriskmanagementstrategy,whichisconfirmed
forthehedgingrelationshipbyenterpriseattheverybeginning.
③Foracashflowhedgingofforecasttransaction,theforecasttransactionshallbelikelytooccurandshall
maketheenterprisefacedtotheriskofchangesincashflow,whichwillultimatelyaffecttheprofitsandlosses.
④Theeffectivenessofhedgingcanbereliablymeasured.
⑤Thehedgingishighlyeffectiveinaccountingperiodinwhichthehedgingrelationshipisspecified.
29.ChangesinMainAccountingPoliciesandEstimates(1)ChangeinAccountingPolicies□Applicable√Notapplicable(2)ChangesinAccountingEstimates□Applicable√Notapplicable30.OtherCriticalaccountingjudgmentsandestimates
Duetotheinsideuncertaintyofoperatingactivity,theGroupneededtomakejudgments,estimatesand
assumptiononthebookvalueoftheaccountswithoutaccuratemeasurementduringtheemploymentof
accountingpolicies.Andthesejudgments,estimatesandassumptionweremadebasingonthepriorexperienceof
theseniorexecutivesoftheGroup,aswellasinconsiderationofotherfactors.Thesejudgments,estimatesand
assumptionwouldalsoaffectthereportamountofincome,costs,assetsandliabilities,aswellasthedisclosureof
contingentliabilitiesonbalancesheetdate.However,theuncertaintyoftheseestimateswaslikelytocause
significantadjustmentonthebookvalueoftheaffectedassetsandliabilities.
TheGroupwouldcheckperiodicallytheabovejudgments,estimatesandassumptiononthebasisof
continuingoperation.Forthechangesinaccountingestimatesonlyaffectedonthecurrentperiod,theinfluence
shouldberecognizedattheperiodofchangeoccurred;forthechangesinaccountingestimatesaffectedthe
currentperiodandalsothefutureperiod,theinfluenceshouldberecognizedattheperiodofchangeoccurredand
futureperiod.
Onthebalancesheetdate,theGroupneededtomakejudgments,estimatesandassumptionontheaccounts
inthefollowingimportantitems:
(1)Provisionforbaddebts
Inaccordancewiththeaccountingpoliciesofaccountsreceivable,theGroupmeasuredthelossesforbad
debtsbyadoptingallowancemethod.Theimpairmentofaccountsreceivablewasbasedontheappraisalofthe
recoverabilityofaccountsreceivable.Theimpairmentofaccountsreceivablewasdependentonthejudgmentand
estimates.Theactualamountandthedifferenceofpreviousestimateswouldaffectthebookvalueofaccounts
receivableandthewithdrawalandreversalonprovisionforbaddebtsofaccountsreceivableduringtheperiodof
estimatesbeingchanged.
(2)Provisionforfallingpriceofinventories
Inaccordancewiththeaccountingpoliciesofinventories,fortheinventoriesthatthecostsweremorethan
thenetrealizablevalueaswellasout-of-dateanddull-saleinventories,theGroupwithdrawntheprovisionfor
fallingpriceofinventoriesontheloweronebetweencostsandnetrealizablevalue.Evaluatingthefallingpriceof
inventoriesneededthemanagementlevelgainthevalidevidenceandtakefullconsiderationofthepurposeof
inventories,influenceofeventsafterbalancesheetdateandotherfactors,andthenmaderelevantjudgmentsand
estimates.Theactualamountandthedifferenceofpreviousestimateswouldaffectthebookvalueofinventories
andthewithdrawalandreversalonprovisionforbaddebtsofinventoriesduringtheperiodofestimatesbeing
changed.
(3)Held-to-maturityinvestment
TheCompanyclassifiesthenon-derivativefinancialassetswhichmeetwithconditionswithfixedor
confirmablerepaymentamountandfixedmaturitydateaswellastheCompanyownsdefiniteintentionandability
toholduntilmatureastheheld-to-maturityinvestment.Toexecutetheclassificationneedslargejudgment.Inthe
processofexecutingthejudgment,theCompanywouldassesstheintentionandabilityoftheinvestmentwhich
holduntiltheduedate.Exceptfortheparticularsituation(forexample,sellingtheinvestmentwithinsignificant
amountwhenapproachingtheduedate),iftheCompanyfailstoholdtheinvestmentuntiltheduedate,should
re-classifytheinvestmenttotheavailable-for-salefinancialassetsandwouldnomorebeclassifiedasthe
held-to-maturityinvestmentinthecurrentfiscalyearaswellastheafterwardtwocompletefiscalyears.Ifthere
exitssuchsituation,thatwouldprobablycausesignificantinfluencesonthevalueoftherelevantfinancialassets
presentedonthefinancialstatementandmayinfluencetherisksmanagementstrategiesofthefinancial
instrumentsoftheCompany.
(4)Held-to-maturityinvestmentimpairment
TheCompanyconfirmswhethertheheld-to-maturityinvestmenthasimpairmentdependsonthejudgment
fromthemanagementlayertoalargeextent.Theobjectiveevidencesoftheimpairmentsincludingtheissuers
whichoccurseriousfinancialdifficultiesthatleadthefinancialassetscouldnotcontinuetotradeintheactive
marketandtoexecutethecontractsregulations(forexample,toreturntheinterestsortheprincipalviolatesa
treaty)etc.Intheprocessofexecutingjudgment,theCompanyneedstoevaluatetheinfluencesoftheobjective
evidencesoftheimpairmentontheestimatedfuturecashflow.
(5)Theimpairmentoffinancialassetsavailableforsale
TheGroupjudgedwhetherthefinancialassetsavailableforsalewereimpairedrelyingheavilyonthe
judgmentandassumptionofthemanagementteam,soastodecidewhetherrecognizedtheimpairmentlossesin
theincomestatement.Duringtheprocessofmakingthejudgmentandassumption,theGroupneededtoappraise
thebalanceofthecostoftheinvestmentexceedingitsfairvalueandthecontinuousperiod,thefinancialstatus
andbusinessforecastinashortperiod,includingtheindustrialsituation,technicalreform,creditlevel,defaultrate
andriskofcounterparty.
(6)Provisionforimpairmentofnon-financialnon-currentassets
TheGroupmadeajudgmentonthenon-currentassetsotherthanfinancialassetswhethertheyhadany
indicationofimpairmentonthebalancesheetdate.Fortheintangibleassetswithoutfiniteservicelife,otherthan
theannualimpairmenttest,theyshouldbesubjecttotheimpairmenttestwhentherewasanyindicationof
impairment.Forothernon-currentnon-financialassets,whichshouldbesubjectedtoimpairmenttestwhenthere
wasindicationofimpairmentindicatedthatthebookvaluecan’tberecoverable.
Whenthebookvalueoftheassetsorassetsportfoliowasmorethantherecoverableamount,whichwasthe
higheronebetweenthenetamountoffairvalueafterdeductingthedisposalexpensesandthediscountedamount
oftheestimatedfuturecashflow,itmeansimpairmentincurred.
Thenetamountoffairvalueafterdeductingthedisposalexpensesshouldbefixedthepriceinthesale
agreementforsimilarassetsinthefairtransactionminustheincreasedcostsdirectlyattributabletotheassets
disposal.
Whenestimatedthediscountedvalueoffuturecashflow,theGroupneededtomakeimportantjudgmenton
theoutput,sellingprice,relevantcostsandthediscountrateforcalculatingthediscountedamount,etc.When
estimatedtherecoverableamount,theGroupwouldadoptalltheavailabledocuments,includingthepredictionfor
relevantoutput,sellingpriceandrelevantoperatingcostsarisingfromreasonableandsupportiveassumptions.
TheGroupmadetheimpairmenttestongoodwillatleastonetimeperyear,whichrequiredtopredictthe
discountedamountofthefuturecashflowoftheassetsorassetsportfoliowiththedistributedgoodwill,forwhich,
theGroupneededtopredictthefuturecashflowoftheassetsorassetsportfolio,andadopttheproperty
discountedratetodecidethediscountedamountoffuturecashflow.
(7)Depreciationandamortization
Fortheinvestmentrealestate,fixedassetsandintangibleassets,theGroupwithdrewthedepreciationand
amortizationbyadoptingthestraight-linemethodduringtheservicelifeafterfullconsiderationofthesalvage
value.TheGroupcheckedtheservicelifeperiodicallysoastodecidetheamountofdepreciationandamortization
ateachReportingPeriod.TheservicelifewasfixedbytheGroupinaccordancewiththepreviousexperienceof
thesimilarassetsandtheexpectedtechnicalupdate.Iftherewasanysignificantchangeonthepreviousestimates,
thedepreciationandamortizationexpensesshouldbeadjusted.
(8)Incometax
Duringtheroutineoperatingactivities,thereweresomeuncertaintyintheultimatetaxtreatmentand
calculationforpartsoftransactions.Someaccountsofsuchtransactioncouldbelistedaspre-taxexpenditures
onlyaftertheapprovaloftaxationauthorities.Iftherewereanydifferencesbetweentheultimateresultof
recognitionforthesetaxationmatersandtheirinitialestimates,thedifferenceswouldaffectthecurrentincometax
anddeferredincometaxattheperiodofultimaterecognition.
VITaxes1.MainTaxesandTaxRates
| Typeoftax | Taxationbasis | Taxrates |
| VAT | Payabletosalesrevenue | 10%and16%etc |
| Urbanmaintenanceandconstructiontax | Taxableturnoveramount | Taxpaidinaccordancewiththetaxregulationsoftaxunitslocation |
| Enterpriseincometax | Taxableincome | 25%or15% |
| Educationalsurtax | Taxableturnoveramount | 5% |
Notesofthedisclosuresituationofthetaxpayingbodieswithdifferententerprisesincometaxrate
| Taxpayer | Incometaxrate |
| ChangchaiCo.,Ltd. | 15% |
| ChangchaiWanzhouDieselEngineCo.,Ltd. | 15% |
| ChangzhouChangchaiBenniuDieselEngineFittingsCo.,Ltd. | 25% |
| ChangzhouHoushengInvestmentCo.,Ltd. | 25% |
| ChangzhouChangchaiHoushengAgriculturalEquipmentCo.,Ltd. | 25% |
| ChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd. | 25% |
2.TaxPreference
In2015,theCompanyhasbeenidentifiedasHigh-techEnterprises,therefore,itenjoys15-percent
preferentialrateforcorporateincometax;theCompany’scontrollingsubsidiary—ChangchaiWanzhouDiesel
EngineCo.,Ltd.,thecontrollingsubsidiarycompany,shallpaythecorporateincometaxattaxrate15%from1
January2011to31December2020inaccordancewiththeNoticeoftheMinistryofFinance,theGeneral
AdministrationofCustomsofPRCandtheNationalAdministrationofTaxationaboutthePreferentialTax
PoliciesfortheWesternDevelopment.
3.OthersVII.NotestoMainItemsofConsolidatedFinancialStatements1.MonetaryFunds
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Cashonhand | 444,203.08 | 466,356.31 |
| Bankdeposits | 281,868,723.09 | 324,781,747.27 |
| Othermonetaryfunds | 163,546,000.00 | 105,057,264.13 |
| Total | 445,858,926.17 | 430,305,367.71 |
Othernotes:
AttheendofReportingPeriod,themonetaryfundoftheCompanyusedrestrictedlywas
RMB163,546,000.00,amongwhichcashdepositofbankacceptancebillwasRMB163,546,000.00.
2.NotesReceivable(1)NotesReceivableDisclosedbyCategory
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Bank’sacceptancebill | 556,766,558.95 | 716,404,345.57 |
| Total | 556,766,558.95 | 716,404,345.57 |
(2)ThereWereNoNotesReceivablePledgedatthePeriod-end(3)NotesReceivablewhichHadEndorsedbytheCompanyorHadDiscountedandnotDueontheBalance
SheetDateatthePeriod-end
Unit:RMB
| Item | Amountofrecognitionterminationattheperiod-end | Amountofnotterminatedrecognitionattheperiod-end |
| Bank’sacceptancebill | 403,700,000.00 | |
| Total | 403,700,000.00 |
(4)ThereWereNoNotesoftheCompanyTransferredtoAccountsReceivableowningtotheFailureofPerformancebytheDraweratthePeriod-end
3.AccountsReceivable(1)AccountsReceivableDisclosedbyCategory
Unit:RMB
| Category | Endingbalance | Beginningbalance | ||||||||
| Carryingamount | Baddebtprovision | Carryingvalue | Carryingamount | Baddebtprovision | Carryingvalue | |||||
| Amount | Proportion | Amount | Withdrawalproportion | Amount | Proportion | Amount | Withdrawalproportion | |||
| Accountsreceivablewithsignificantsingleamountforwhichbaddebtprovisionseparatelyaccrued | 26,463,686.66 | 2.50% | 25,764,923.92 | 97.36% | 698,762.74 | 26,482,933.51 | 4.19% | 25,729,422.09 | 97.15% | 753,511.42 |
| Accountsreceivablewithdrawnbaddebtprovisionaccordingtocreditriskscharacteristics | 1,031,236,006.08 | 97.41% | 222,474,987.57 | 21.57% | 808,761,018.51 | 604,209,510.47 | 95.65% | 212,952,068.34 | 35.24% | 391,257,442.13 |
| Accountsreceivablewithinsignificantsingleamountforwhichbaddebtprovisionseparately | 974,986.14 | 0.09% | 974,986.14 | 100.00% | 0.00 | 974,986.14 | 0.16% | 974,986.14 | 100.00% | |
| accrued | ||||||||||
| Total | 1,058,674,678.88 | 100.00% | 249,214,897.63 | 23.54% | 809,459,781.25 | 631,667,430.12 | 100.00% | 239,656,476.57 | 37.94% | 392,010,953.55 |
Accountsreceivablewithsignificantsingleamountforwhichbaddebtprovisionseparatelyaccruedattheperiod-end√Applicable□Notapplicable
Unit:RMB
| Accountsreceivable(classifiedbyunits) | Endingbalance | |||
| Accountsreceivable | Baddebtprovision | Withdrawalproportion | Withdrawalreason | |
| Customer1 | 1,902,326.58 | 1,902,326.58 | 100.00% | Difficulttorecover |
| Customer2 | 6,215,662.64 | 6,215,662.64 | 100.00% | Difficulttorecover |
| Customer3 | 2,293,090.49 | 2,175,177.75 | 94.86% | Expectedtodifficultlyrecover |
| Customer4 | 3,279,100.00 | 3,279,100.00 | 100.00% | Expectedtodifficultlyrecover |
| Customer5 | 2,068,377.01 | 2,068,377.01 | 100.00% | Expectedtodifficultlyrecover |
| Customer6 | 5,359,381.00 | 5,359,381.00 | 100.00% | Difficulttorecover |
| Customer7 | 2,584,805.83 | 2,584,805.83 | 100.00% | Difficulttorecover |
| Customer8 | 1,599,243.11 | 1,599,243.11 | 100.00% | Difficulttorecover |
| Customer9 | 1,161,700.00 | 580,850.00 | 50.00% | Expectedtodifficultlyrecover |
| Total | 26,463,686.66 | 25,764,923.92 | -- | -- |
Inthegroups,accountsreceivableadoptedaginganalysismethodstoaccruebaddebtprovision:
√Applicable□Notapplicable
Unit:RMB
| Aging | Endingbalance | ||
| Accountsreceivable | Baddebtprovision | Withdrawalproportion | |
| Sub-itemwithin1year | |||
| Subtotalofwithin1year | 809,368,741.65 | 16,187,374.83 | 2.00% |
| 1to2years | 14,239,832.88 | 711,991.64 | 5.00% |
| 2to3years | 1,643,225.81 | 246,483.87 | 15.00% |
| 3to4years | 875,560.19 | 262,668.06 | 30.00% |
| 4to5years | 105,440.97 | 63,264.58 | 60.00% |
| Over5years | 205,003,204.58 | 205,003,204.58 | 100.00% |
| Total | 1,031,236,006.08 | 222,474,987.57 |
Notesofthebasisofrecognizingthegroup:
Inthegroups,accountsreceivableadoptedbalancepercentagemethodtowithdrawbaddebtprovision□Applicable√NotapplicableInthegroups,accountsreceivableadoptedothermethodtowithdrawbaddebtprovision
(2)BadDebtProvisionWithdrawn,ReversedorRecoveredduringtheReportingPeriod
ThewithdrawalamountofthebaddebtprovisionduringthereportingperiodwasofRMB10,137,747.23；the
amountofthereversedorrecoveredpartduringtheReportingPeriodwasofRMB579,326.17.
(3)Top5AccountsReceivableinEndingBalanceCollectedaccordingtotheArrearsParty
ThetotalTop5accountsreceivableinendingbalancecollectedaccordingtothearrearspartywas
RMB484,809,565.40,accountingfor45.79%ofthetotalendingbalanceofaccountsreceivable.Theending
balanceofbaddebtprovisionwithdrawnwasRMB18,672,083.07.
4.Prepayment(1)ListbyAging
Unit:RMB
| Aging | Endingbalance | Beginningbalance | ||
| Amount | Proportion | Amount | Proportion | |
| Within1year | 19,905,484.12 | 92.99% | 16,300,217.23 | 91.67% |
| 1to2years | 98,245.17 | 0.46% | 110,270.90 | 0.62% |
| 2to3years | 401,279.30 | 1.87% | 384,622.72 | 2.16% |
| Over3years | 1,001,181.18 | 4.68% | 985,896.92 | 5.55% |
| Total | 21,406,189.77 | -- | 17,781,007.77 | -- |
(2)Top5PrepaymentsinEndingBalanceCollectedaccordingtothePrepaymentTarget
Thetotaltop5prepaymentsinendingbalancecollectedaccordingtotheprepaymenttargetwas
RMB8,333,140.18,accountingfor38.93%oftotalendingbalanceofprepayment.
5.OtherAccountsReceivable(1)OtherAccountsReceivableDisclosedbyCategory
Unit:RMB
| Category | Endingbalance | Beginningbalance | ||||||||
| Carryingamount | Baddebtprovision | Carryingvalue | Carryingamount | Baddebtprovision | Carryingvalue | |||||
| Amount | Proportion | Amount | Withdrawalproportion | Amount | Proportion | Amount | Withdrawalproportion | |||
| Otheraccountsreceivablewithsignificantsingleamountforwhichbaddebtprovisionseparatelyaccrued | 2,853,188.02 | 5.43% | 2,853,188.02 | 100.00% | 2,853,188.02 | 7.45% | 2,853,188.02 | 100.00% | ||
| Otheraccountsreceivablewithdrawnbaddebtprovisionaccordingtocreditriskscharacteristics | 47,561,220.62 | 90.57% | 27,857,305.25 | 58.57% | 19,703,915.37 | 33,367,460.98 | 87.08% | 27,572,489.76 | 82.63% | 5,794,971.22 |
| Otheraccountsreceivablewithinsignificantsingleamountforwhichbaddebtprovisionseparatelyaccrued | 2,099,382.02 | 4.00% | 2,099,382.02 | 100.00% | 2,099,382.02 | 5.47% | 2,099,382.02 | 100.00% | ||
| Total | 52,513,790.66 | 100.00% | 32,809,875.29 | 62.48% | 19,703,915.37 | 38,320,031.02 | 100.00% | 32,525,059.80 | 84.88% | 5,794,971.22 |
Otheraccountsreceivablewithsignificantsingleamountforwhichbaddebtprovisionseparatelyaccrued:
√Applicable□Notapplicable
Unit:RMB
| Otheraccountsreceivable(classifiedbyunits) | Endingbalance | |||
| Otheraccountsreceivable | Baddebtprovision | Withdrawalproportion | Withdrawalreason | |
| ChangchaiGroupImport&ExportCompany | 2,853,188.02 | 2,853,188.02 | 100.00% | Difficulttorecover |
| Total | 2,853,188.02 | 2,853,188.02 | -- | -- |
Inthegroups,otheraccountsreceivableadoptedaginganalysismethodtoaccruebaddebtprovision:
√Applicable□Notapplicable
Unit:RMB
| Aging | Endingbalance | ||
| Otheraccountsreceivable | Baddebtprovision | Withdrawalproportion | |
| Sub-itemwithin1year | |||
| Subtotalofwithin1year | 19,255,197.17 | 385,103.94 | 2.00% |
| 1-2years | 484,560.67 | 24,228.03 | 5.00% |
| 2-3years | 115,247.00 | 17,287.05 | 15.00% |
| 3-4years | 78,455.39 | 23,536.62 | 30.00% |
| 4-5years | 551,526.97 | 330,916.18 | 60.00% |
| Over5years | 27,076,233.42 | 27,076,233.42 | 100.00% |
| Total | 47,561,220.62 | 27,857,305.25 | |
Inthegroups,otheraccountsreceivableadoptedbalancepercentagemethodtowithdrawbaddebtprovision□Applicable√NotapplicableInthegroups,otheraccountsreceivableadoptedothermethodstowithdrawbaddebtprovision:
□Applicable√Notapplicable
(2)BadDebtWithdrawn,ReversedorRecoveredduringtheReportingPeriod
ThewithdrawalamountofthebaddebtprovisionduringtheReportingPeriodwasofRMB284,815.49；the
amountofthereversedorrecoveredpartduringtheReportingPeriodwasofRMB0.00.
(3)OtherAccountsReceivableClassifiedbytheNatureofAccounts
Unit:RMB
| Nature | Endingcarryingamount | Beginningcarryingamount |
| Margin&cashpledge | 280,014.00 | 4,200.00 |
| Intercoursefunds | 31,019,309.05 | 21,072,102.14 |
| Pettycashandborrowingsbyemployees | 1,658,255.31 | 1,854,174.11 |
| Other | 19,556,212.30 | 15,389,554.77 |
| Total | 52,513,790.66 | 38,320,031.02 |
(4)Top5OtherAccountsReceivableinEndingBalanceCollectedaccordingtotheArrearsParty
Unit:RMB
| Nameofunits | Nature | Endingbalance | Aging | Proportiontototalendingbalanceofotheraccountsreceivable | Endingbalanceofbaddebtprovision |
| ChangzhouChangjiangCastingMaterialsCo.,Ltd. | Intercoursefunds | 5,000,000.00 | 1年以内 | 9.52% | 100,000.00 |
| XuzhouHuadongFoundryFactoryCo.,Ltd. | Intercoursefunds | 3,000,000.00 | 1年以内 | 5.71% | 60,000.00 |
| ChangzhouCompressorsFactory | Intercoursefunds | 2,940,000.00 | 5年以上 | 5.60% | 2,940,000.00 |
| ChangchaiGroupImp.&Exp.Co.,Ltd. | Intercoursefunds | 2,853,188.02 | 5年以上 | 5.43% | 2,853,188.02 |
| ChangzhouNewDistrictAccountingCentre | Intercoursefunds | 1,626,483.25 | 5年以上 | 3.10% | 1,626,483.25 |
| Total | -- | 15,419,671.27 | -- | 29.36% | 7,579,671.27 |
6.Inventory(1)CategoryofInventory
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Fallingpricereserves | Carryingvalue | Carryingamount | Fallingpricereserves | Carryingvalue | |
| Rawmaterials | 116,430,194.48 | 3,592,556.38 | 112,837,638.10 | 137,637,917.36 | 5,646,775.16 | 131,991,142.20 |
| Materialsprocessedoncommission | 12,407,471.12 | 226,851.60 | 12,180,619.52 | 17,692,442.71 | 183,111.28 | 17,509,331.43 |
| Goodsin | 121,436,739. | 17,963,201.7 | 103,473,537. | 142,366,956. | 18,705,451.9 | 123,661,504. |
| progress | 40 | 1 | 69 | 08 | 2 | 16 |
| Finishedgoods | 191,108,103.70 | 15,091,298.80 | 176,016,804.90 | 247,668,232.73 | 15,020,818.93 | 232,647,413.80 |
| Lowpricedandeasilywornarticles | 3,582,671.06 | 1,582,001.67 | 2,000,669.39 | 4,212,709.15 | 1,775,293.26 | 2,437,415.89 |
| Total | 444,965,179.76 | 38,455,910.16 | 406,509,269.60 | 549,578,258.03 | 41,331,450.55 | 508,246,807.48 |
IsitnecessaryfortheCompanytoobservethedisclosurerequirementsofGuidelinesofShenzhenStockExchangeforIndustryInformationDisclosureNo.4-ListedCompaniesEngaginginSeedIndustryandPlantingBusinessNo
(2)FallingPriceReservesofInventory
Unit:RMB
| Item | Beginningbalance | Increasedamount | Decreasedamount | Endingbalance | ||
| Withdrawal | Other | Reverseorwrite-off | Other | |||
| Rawmaterials | 5,646,775.16 | 2,054,218.78 | 3,592,556.38 | |||
| Materialsprocessedoncommission | 183,111.28 | 43,740.32 | 0.00 | 226,851.60 | ||
| Goodsinprogress | 18,705,451.92 | 742,250.21 | 17,963,201.71 | |||
| Finishedgoods | 15,020,818.93 | 70,479.87 | 0.00 | 15,091,298.80 | ||
| Lowpricedandeasilywornarticles | 1,775,293.26 | 193,291.59 | 1,582,001.67 | |||
| Total | 41,331,450.55 | 114,220.19 | 2,989,760.58 | 38,455,910.16 | ||
(3)InventorywhichEndingBalancedidn’tincludeCapitalizedBorrowingAmount(4)ThereWereNoCompletedbutUnsettledAssetsCausedbyConstructionContractsatthePeriod-end7.OtherCurrentAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| TheVATtaxcredits | 3,372,534.38 | 28,078,565.33 |
| Exportrebatesreceivable | 825,933.00 | |
| Prepaidexpense | 345,603.46 | 135,685.72 |
| Financialproductsfromsecurities | 16,000,000.00 | 13,500,000.00 |
| companies | ||
| Total | 19,718,137.84 | 42,540,184.05 |
8.Available-for-saleFinancialAssets(1)ListofAvailable-for-saleFinancialAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
| Available-for-saleequityinstruments | 646,466,487.16 | 1,210,000.00 | 645,256,487.16 | 794,732,639.04 | 1,210,000.00 | 793,522,639.04 |
| Measuredatfairvalue | 537,369,000.00 | 537,369,000.00 | 685,837,500.00 | 685,837,500.00 | ||
| Measuredatcost | 109,097,487.16 | 1,210,000.00 | 107,887,487.16 | 108,895,139.04 | 1,210,000.00 | 107,685,139.04 |
| Total | 646,466,487.16 | 1,210,000.00 | 645,256,487.16 | 794,732,639.04 | 1,210,000.00 | 793,522,639.04 |
(2)Available-for-saleFinancialAssetsatFairValueatthePeriod-end
Unit:RMB
| Category | Available-for-saleequityinstruments | Available-for-saledebtinstruments | Total |
| Costofequityinstruments/amortizedcostofdebtinstruments | 79,874,500.00 | 79,874,500.00 | |
| Fairvalue | 537,369,000.00 | 537,369,000.00 | |
| Accumulatedchangesinfairvaluerecordedintoothercomprehensiveincome | 388,870,325.00 | 388,870,325.00 |
(3)Available-for-saleFinancialAssetsMeasuredbyCostatthePeriod-end
Unit:RMB
| Investee | Carryingamount | Depreciationreserve | Shareholdingproportionamongthe | CashbonusoftheReporting | ||||||
| Period-beginning | Increase | Decrease | Period-end | Period-beginning | Increase | Decrease | Period-end | |||
| investees | Period | ||||||||
| LianceTech | 7,200,000.00 | 7,200,000.00 | 3.20% | ||||||
| ChangzhouXietongPrivateEquityFund(LimitedPartnership) | 100,000,000.00 | 100,000,000.00 | 99.01% | ||||||
| GuizhouWarmenPharmaceuticalCo.,Ltd. | 200,104.80 | 200,104.80 | |||||||
| GuizhouAndaEnergyTechnologyCo.,Ltd. | 195,297.49 | 195,297.49 | |||||||
| FUNIKUltrahardMaterialCo.,Ltd. | 63,096.08 | 63,096.08 | |||||||
| EpitopOptoelectronicCo.,Ltd. | 26,640.67 | 26,640.67 | |||||||
| HebeiSongheRecyclingResourcesCo.,Ltd. | 104,699.44 | 104,699.44 | |||||||
| HenanLantianGasCo.,Ltd. | 160,744.76 | 160,744.76 | |||||||
| Others | 1,210,000.00 | 1,210,000.00 | 1,210,000.00 | 1,210,000.00 | |||||
| Total | 108,895,139.04 | 265,444.20 | 63,096.08 | 109,097,487.16 | 1,210,000.00 | 1,210,000.00 | -- |
(4)ChangesintheImpairmentoftheAvailable-for-saleAssetsduringtheReportingPeriod
Unit:RMB
| Categoryoftheavailable-for-salefinancialassets | Available-for-saleequityinstruments | Available-for-saledebtinstruments | Total |
| Beginningbalancewithdrawnimpairment | 1,210,000.00 | 1,210,000.00 | |
| Endingbalancewithdrawnimpairment | 1,210,000.00 | 1,210,000.00 |
9.Long-termEquityInvestment
Unit:RMB
| Investee | Beginningbalance | Increase/decrease | Endingbalance | Endingbalanceofdepreciationreserves | |||||||
| Additionalinvestment | Reducedinvestment | Profitorlossrecognizedundertheequitymethod | Adjustmentofothercomprehensiveincome | Changesinotherequity | Cashbonusorprofitsannouncedtoissue | Withdrawalofdepreciationreserves | Other | ||||
| I.Jointventures | |||||||||||
| II.Associatedenterprises | |||||||||||
| BeijingTsinghuaIndustrialInvestmentManagementCo.,Ltd. | 44,182.50 | 44,182.50 | 44,182.50 | ||||||||
| Subtotal | 44,182.50 | 44,182.50 | 44,182.50 | ||||||||
| Total | 44,182.50 | 44,182.50 | 44,182.50 | ||||||||
10.InvestmentProperty(1)InvestmentPropertyAdoptedtheCostMeasurementMode√Applicable□Notapplicable
Unit:RMB
| Item | Housesand | Landuse | Construction | Total |
| buildings | right | inprogress | ||
| I.Originalcarryingvalue | ||||
| 1.Beginningbalance | 87,632,571.14 | 87,632,571.14 | ||
| 2.Increasedamountoftheperiod | ||||
| (1)Outsourcing | ||||
| (2)Transferfrominventory\fixedassets\constructioninprogress | ||||
| (3)Enterprisecombinationincrease | ||||
| 3.Decreasedamountoftheperiod | ||||
| (1)Disposal | ||||
| (2)Othertransfer | ||||
| 4.Endingbalance | 87,632,571.14 | 87,632,571.14 | ||
| II.Accumulativedepreciationandaccumulativeamortization | ||||
| 1.Beginningbalance | 34,768,222.71 | 34,768,222.71 | ||
| 2.Increasedamountoftheperiod | 1,104,170.40 | 1,104,170.40 | ||
| (1)Withdrawaloramortization | 1,104,170.40 | 1,104,170.40 | ||
| 3.Decreasedamountoftheperiod | ||||
| (1)Disposal | ||||
| (2)Othertransfer | ||||
| 4.Endingbalance | 35,872,393.11 | 35,872,393.11 | ||
| III.Depreciationreserves | ||||
| 1.Beginningbalance | ||||
| 2.Increasedamountoftheperiod | ||||
| (1)Withdrawal | ||||
| 3.Decreasedamountoftheperiod | ||||
| (1)Disposal | ||||
| (2)Othertransfer | ||||
| 4.Endingbalance | ||||
| IV.Carryingvalue | ||||
| 1.Endingcarryingvalue | 51,760,178.03 | 51,760,178.03 | ||
| 2.Beginningcarryingvalue | 52,864,348.43 | 52,864,348.43 |
(2)InvestmentPropertyAdoptedtheFairValueMeasurementCode□Applicable√notapplicable
11.FixedAssets(1)ListofFixedAssets
Unit:RMB
| Item | Housesandbuildings | Machineryequipment | Transportationequipment | Otherequipment | Total |
| I.Originalcarryingvalue | |||||
| 1.Beginningbalance | 445,235,823.37 | 910,680,568.87 | 23,363,510.00 | 44,350,166.61 | 1,423,630,068.85 |
| 2.Increasedamountoftheperiod | 1,018,882.19 | 4,804,054.41 | 0.00 | 263,361.79 | 6,086,298.39 |
| (1)Purchase | 561,488.20 | 819,633.56 | 152,360.28 | 1,533,482.04 | |
| (2)Transferfromconstructioninprogress | 457,393.99 | 3,984,420.85 | 111,001.51 | 4,552,816.35 | |
| (3)Enterprisecombinationincrease | |||||
| 3.Decreasedamountoftheperiod | 670,367.80 | 523,352.00 | 117,702.62 | 1,311,422.42 | |
| (1)DisposalorScrap | 670,367.80 | 523,352.00 | 117,702.62 | 1,311,422.42 | |
| 4.Endingbalance | 446,254,705.56 | 914,814,255.48 | 22,840,158.00 | 44,495,825.78 | 1,428,404,944.82 |
| II.Accumulativedepreciation | |||||
| 1.Beginningbalance | 249,203,618.96 | 561,623,572.09 | 17,903,567.46 | 33,355,224.84 | 862,085,983.35 |
| 2.Increasedamountoftheperiod | 8,520,481.30 | 33,605,803.64 | 1,054,969.70 | 1,945,545.86 | 45,126,800.50 |
| (1)Withdrawal | 8,520,481.30 | 33,605,803.64 | 1,054,969.70 | 1,945,545.86 | 45,126,800.50 |
| 3.Decreasedamountoftheperiod | 0.00 | 5,314,955.96 | 362,140.74 | 520,156.75 | 6,197,253.45 |
| (1)DisposalorScrap | 5,314,955.96 | 362,140.74 | 520,156.75 | 6,197,253.45 | |
| 4.Endingbalance | 257,724,100.26 | 589,914,419.77 | 18,596,396.42 | 34,780,613.95 | 901,015,530.40 |
| III.Depreciationreserves | |||||
| 1.Beginningbalance | 1,494,115.00 | 1,494,115.00 |
| 2.Increasedamountoftheperiod | |||||
| (1)Withdrawal | |||||
| 3.Decreasedamountoftheperiod | |||||
| (1)DisposalorScrap | |||||
| 4.Endingbalance | 1,494,115.00 | 1,494,115.00 | |||
| IV.Carryingvalue | |||||
| 1.Endingcarryingvalue | 188,530,605.30 | 323,405,720.71 | 4,243,761.58 | 9,715,211.83 | 525,895,299.42 |
| 2.Beginningcarryingvalue | 196,032,204.41 | 347,562,881.78 | 5,459,942.54 | 10,994,941.77 | 560,049,970.50 |
12.ConstructioninProgress(1)ListofConstructioninProgress
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
| Trialproductionworkshopprojecttechnologycenter | 16,504,456.07 | 16,504,456.07 | 14,349,461.80 | 14,349,461.80 | ||
| Castingrenovationproject | 715,097.59 | 715,097.59 | 396,000.00 | 396,000.00 | ||
| Expansioncapacityofmulti-cylinder(The2ndPeriod) | 11,858,106.49 | 11,858,106.49 | 11,217,706.49 | 11,217,706.49 | ||
| DieselEngineCylinderBodyFlexibleManufacturingLine | 22,239,955.51 | 22,239,955.51 | 20,125,955.51 | 20,125,955.51 | ||
| 35KVSubstation | 1,675,876.33 | 1,675,876.33 | 1,218,587.83 | 1,218,587.83 | ||
| Equipmenttobeinstalledandpaymentforprojects | 33,382,357.21 | 33,382,357.21 | 47,274,277.43 | 47,274,277.43 | ||
| Total | 86,375,849.20 | 86,375,849.20 | 94,581,989.06 | 94,581,989.06 |
(2)ChangesinSignificantConstructioninProgressduringtheReportingPeriod
Unit:RMB
| Item | Budget | Beginningbalance | Increasedamount | Transferredinfixedassets | Otherdecreasedamount | Endingbalance | Proportionofaccumulatedinvestmentinconstructionstobudget | Jobschedule | Accumulatedamountofinterestcapitalization | Ofwhich:amountofcapitalizedinterestsfortheReportingPeriod | CapitalizationrateofinterestsfortheReportingPeriod | Capitalresources |
| Trialproductionworkshopprojecttechnologycenter | 22,896,300.00 | 14,349,461.80 | 2,154,994.27 | 16,504,456.07 | 72.08% | unfinished | others | |||||
| Expansioncapacityofmulti-cylinder(The | 70,190,000.00 | 11,217,706.49 | 640,400.00 | 11,858,106.49 | 92.61% | unfinished | others |
| 2ndPeriod) | |||||||||
| DieselEngineCylinderBodyFlexibleManufacturingLine | 116,040,000.00 | 20,125,955.51 | 2,114,000.00 | 22,239,955.51 | 36.05% | unfinished | others | ||
| 35KVSubstation | 1,218,587.83 | 457,288.50 | 1,675,876.33 | unfinished | others | ||||
| Total | 209,126,300.00 | 46,911,711.63 | 5,366,682.77 | 52,278,394.40 | -- | -- | -- |
13.IntangibleAssets(1)ListofIntangibleAssets
Unit:RMB
| Item | Landuseright | Software | Licensefee | Total |
| I.Originalcarryingvalue | ||||
| 1.Beginningbalance | 144,770,507.85 | 10,972,366.81 | 5,488,000.00 | 161,230,874.66 |
| 2.Increasedamountoftheperiod | ||||
| (1)Purchase | ||||
| (2)InternalR&D | ||||
| (3)Businesscombinationincrease |
| 3.Decreasedamountoftheperiod | ||||
| (1)Disposal | ||||
| 4.Endingbalance | 144,770,507.85 | 10,972,366.81 | 5,488,000.00 | 161,230,874.66 |
| II.Accumulatedamortization | ||||
| 1.Beginningbalance | 45,156,044.23 | 7,821,750.27 | 457,333.30 | 53,435,127.80 |
| 2.Increasedamountoftheperiod | 1,486,425.13 | 1,158,166.61 | 364,660.91 | 3,009,252.65 |
| (1)Withdrawal | 1,486,425.13 | 1,158,166.61 | 364,660.91 | 3,009,252.65 |
| 3.Decreasedamountoftheperiod | ||||
| (1)Disposal | ||||
| 4.Endingbalance | 46,642,469.36 | 8,979,916.88 | 821,994.21 | 56,444,380.45 |
| III.Depreciationreserves | ||||
| 1.Beginningbalance | ||||
| 2.Increasedamountoftheperiod | ||||
| (1)Withdrawal | ||||
| 3.Decreasedamountoftheperiod | ||||
| (1)Disposal | ||||
| 4.Endingbalance | ||||
| IV.Carryingvalue | ||||
| 1.Endingcarryingvalue | 98,128,038.49 | 1,992,449.93 | 4,666,005.79 | 104,786,494.21 |
| 2.Beginningcarryingvalue | 99,614,463.62 | 3,150,616.54 | 5,030,666.70 | 107,795,746.86 |
ProportionofintangibleassetsgeneratedfrominternalR&Dtothebalanceofintangibleattheperiod-end:
14.DeferredIncomeTaxAssets/DeferredIncomeTaxLiabilities(1)DeferredIncomeTaxAssetsHadNotBeenOff-set
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||
| Deductibletemporarydifference | Deferredincometaxassets | Deductibletemporarydifference | Deferredincometaxassets | |
| Provisionforimpairmentofassets | 6,519,959.41 | 1,006,953.81 | 6,519,959.41 | 1,006,953.81 |
| Total | 6,519,959.41 | 1,006,953.81 | 6,519,959.41 | 1,006,953.81 |
(2)DeferredIncomeTaxLiabilitiesHadNotBeenOff-set
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||
| Deductibletemporarydifference | Deferredincometaxliabilities | Deductibletemporarydifference | Deferredincometaxliabilities | |
| Changesinfairvalueofavailable-for-salefinancialassets | 457,494,500.00 | 68,624,175.00 | 605,963,000.00 | 90,894,450.00 |
| Consolidatedassetsevaluationappreciationnotunderthesamecontroller | 6,061,317.56 | 1,515,329.39 | 6,061,317.56 | 1,515,329.39 |
| Total | 463,555,817.56 | 70,139,504.39 | 612,024,317.56 | 92,409,779.39 |
(3)ListofUnrecognizedDeferredIncomeTaxAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Baddebtprovision | 275,504,813.51 | 265,661,576.96 |
| Inventoryfallingpricereserves | 38,455,910.16 | 41,331,450.55 |
| Total | 313,960,723.67 | 306,993,027.51 |
15.OtherNon-currentAssets
Unit:RMB
| Item | Endingbalance | Endingdepreciationreserve | Beginningbalance | Beginningdepreciationreserve |
| Entrustedloans | 14,000,000.00 | 14,000,000.00 | 14,000,000.00 | 14,000,000.00 |
| Total | 14,000,000.00 | 14,000,000.00 | 14,000,000.00 | 14,000,000.00 |
16.Short-termBorrowings(1)Short-termBorrowingsDisclosedbyCategory
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Mortgageloans | 8,700,000.00 | 10,000,000.00 |
| Guaranteedloans | 10,000,000.00 | 14,900,000.00 |
| Creditloans | 10,000,000.00 | |
| Total | 28,700,000.00 | 24,900,000.00 |
(2)ThereWereNoShort-termBorrowingsOverdueandUnpaid17.NotesPayable
Unit:RMB
| Category | Endingbalance | Beginningbalance |
| Bank’sacceptancebill | 531,820,000.00 | 347,070,500.00 |
| Total | 531,820,000.00 | 347,070,500.00 |
TotalnotespayableoverduebutnotpaidattheendoftheReportingPeriodwasRMB0.00.18.AccountsPayable(1)ListofAccountsPayable
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Paymentforgoods | 550,059,148.32 | 616,228,500.18 |
| Total | 550,059,148.32 | 616,228,500.18 |
(2)ThereWereNoSignificantAccountsPayableAgingoverOneYearatthePeriod-end19.AdvancesfromCustomers(1)ListofAdvancesfromCustomers
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Paymentforgoods | 46,605,126.00 | 40,153,984.91 |
| Total | 46,605,126.00 | 40,153,984.91 |
(2)ThereWereNoSignificantAdvancesfromCustomersAgingoverOneYearatthePeriod-end20.PayrollPayable(1)ListofPayrollPayable
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| I.Short-termsalary | 51,247,112.66 | 136,192,006.05 | 162,192,451.54 | 25,246,667.17 |
| II.Post-employmentbenefit-definedcontributionplans | 20,101,194.15 | 20,101,194.15 | ||
| Total | 51,247,112.66 | 156,293,200.20 | 182,293,645.69 | 25,246,667.17 |
(2)ListofShort-termsalary
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| 1.Salary,bonus,allowance,subsidy | 42,781,111.59 | 112,245,515.00 | 137,600,268.16 | 17,426,358.43 |
| 2.Employeewelfare | 177,592.74 | 2,331,722.69 | 2,509,315.43 | |
| 3.Socialinsurance | 10,314,452.06 | 10,314,452.06 | ||
| Ofwhich:Medicalinsurancepremiums | 8,441,666.87 | 8,441,666.87 | ||
| Work-relatedinjuryinsurance | 1,130,351.92 | 1,130,351.92 | ||
| Maternityinsurance | 742,433.27 | 742,433.27 | ||
| 4.Housingfund | 9,255,406.00 | 9,255,406.00 | ||
| 5.Laborunionbudgetandemployeeeducationbudget | 8,288,408.33 | 2,044,910.30 | 2,513,009.89 | 7,820,308.74 |
| Total | 51,247,112.66 | 136,192,006.05 | 162,192,451.54 | 25,246,667.17 |
(3)ListofDefinedContributionPlans
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| 1.Basicpensionbenefits | 19,636,879.11 | 19,636,879.11 | ||
| 2.Unemploymentinsurance | 464,315.04 | 464,315.04 | ||
| Total | 20,101,194.15 | 20,101,194.15 |
21.TaxesPayable
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| VAT | 1,809,889.26 | 257,634.15 |
| Corporateincometax | 372,350.60 | 1,220,803.03 |
| Personalincometax | 186,651.65 | 397,114.88 |
| Urbanmaintenanceandconstructiontax | 850,853.05 | |
| EducationSurcharge | 14,671.54 | |
| Comprehensivefees | 235,018.47 | 1,075,134.76 |
| Propertytax | 173,200.76 | |
| Landusetax | 21,000.00 | |
| Stampduty | 7,508.61 | |
| Total | 2,603,909.98 | 4,017,920.78 |
22.DividendsPayable
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Ordinarysharedividends | 3,243,179.97 | 3,243,179.97 |
| Dividendsfornon-controllingshareholders | 648,253.86 | 648,253.86 |
| Total | 3,891,433.83 | 3,891,433.83 |
23.OtherAccountsPayable(1)OtherAccountsPayableListedbyNatureofAccount
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Margin&cashpledged | 4,342,793.03 | 3,266,453.59 |
| Unitcurrentamount | 9,924,455.03 | 10,838,311.11 |
| Personalamountpayable | 2,220,578.42 | 457,465.63 |
| Salesdiscountandthreeguarantees | 150,114,192.08 | 142,449,844.40 |
| Other | 41,218,787.83 | 35,082,168.35 |
| Total | 207,820,806.39 | 192,094,243.08 |
(2)SignificantOtherAccountsPayableAgingoverOneYearThesignificantotheraccountspayableagingoveroneyearweremainlyunsettledtemporarycreditand
accountsunpaid.
24.OtherCurrentLiabilities
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Sewagecharge | 54,000.00 | |
| Electriccharge | 2,886,117.93 | 1,974,937.59 |
| Total | 2,886,117.93 | 2,028,937.59 |
25.Long-termBorrowings(1)CategoryofLong-termBorrowings
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Mortgageloan | 2,000,000.00 | 2,000,000.00 |
| Loanoncredit | 19,500,000.00 | 19,500,000.00 |
| Total | 21,500,000.00 | 21,500,000.00 |
Notestothecategoryoflong-termborrowings:
Theloanoncreditattheperiod-endwasRMB19,500,000.00,whichwastheloanforthetechnicalinnovation
projectbytheCompanyastheparentfromChangzhouBranchofCMBCwiththedurationfrom20September
2017to19September2019.
Themortgageloanattheperiod-endwasRMB2,000,000.00,whichwastheloanbythe
subsidiary-ChangchaiWanzhoufromGaosuntangBranchofChongqingThreeGorgesBankwiththeduration
from4December2017to6November2020.
Othernotesincludinginterestraterange:
Thecreditloanattheperiod-endwasRMB19,500,000.00withtheinterestrateof4.75%.
Themortgageloanattheperiod-endwasRMB2,000,000.00withtheinterestrateof6.15%.
26.DeferredIncome
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance | Formationreasons |
| Governmentsubsidies | 60,992,858.46 | 60,992,858.46 | Governmentappropriation | ||
| Total | 60,992,858.46 | 60,992,858.46 | -- |
Itemsinvolvedingovernmentsubsidies:
Unit:RMB
| Item | Beginningbalance | Amountofnewlysubsidy | Amountaccruedinnon-operatingincome | Amountaccruedinotherincome | Amountsetoffcostexpenses | Otherchanges | Endingbalance | Relatedtotheassets/income |
| Electriccontrolofdieselengineresearchanddevelopmentandindustrializationallocations | 1,045,200.00 | 1,045,200.00 | Relatedtoassets | |||||
| Nationalmajorprojectspecialallocations | 28,770,000.00 | 28,770,000.00 | Relatedtoassets | |||||
| Removecompensation | 21,177,658.46 | 21,177,658.46 | Relatedtoassets | |||||
| Researchanddevelopmentandindustrialization | 10,000,000.00 | 10,000,000.00 | Relatedtoassets |
| allocationsofnationalIII/IVstandardhigh-poweredefficientdieselengineforagriculturaluse | ||||
| Total | 60,992,858.46 | 60,992,858.46 | -- |
27.ShareCapital
Unit:RMB
| Beginningbalance | Increase/decrease(+/-) | Endingbalance | |||||
| Newsharesissued | Bonusshares | Bonusissuefromprofit | Other | Subtotal | |||
| Thesumofshares | 561,374,326.00 | 561,374,326.00 | |||||
28.CapitalReserves
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| Capitalpremium(premiumonstock) | 143,990,690.24 | 143,990,690.24 | ||
| Othercapitalreserves | 20,337,975.19 | 20,337,975.19 | ||
| Total | 164,328,665.43 | 164,328,665.43 |
29.OtherComprehensiveIncome
Unit:RMB
| Item | Beginningbalance | ReportingPeriod | Endingbalance | ||||
| IncomebeforetaxationintheCurrentPeriod | Less:recordedinothercomprehensiveincomeinpriorperiodandtransferredinprofitorlossintheCurrentPeriod | Less:Incometaxexpense | AttributabletoownersoftheCompanyastheparentaftertax | Attributabletonon-controllinginterestsaftertax | |||
| Othercomprehensiveincomethatmaysubsequentlyreclassifiedintoprofitorloss | 515,068,550.00 | -148,468,500.00 | -22,270,275.00 | -126,198,225.00 | 388,870,325.00 | ||
| Gain/Lossonchangesinfairvalueofavailable-for-salefinancialassets | 515,068,550.00 | -148,468,500.00 | -22,270,275.00 | -126,198,225.00 | 388,870,325.00 | ||
| Totalofothercomprehensiveincome | 515,068,550.00 | -148,468,500.00 | -22,270,275.00 | -126,198,225.00 | 388,870,325.00 | ||
30.SpecificReserve
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| Safetyproductioncost | 13,289,059.21 | 13,289,059.21 | ||
| Total | 13,289,059.21 | 13,289,059.21 |
31.SurplusReserves
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| Statutorysurplusreserves | 300,548,352.26 | 300,548,352.26 | ||
| Discretionalsurplusreserves | 13,156,857.90 | 13,156,857.90 | ||
| Total | 313,705,210.16 | 313,705,210.16 |
32.RetainedProfits
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Beginningbalanceofretainedprofitsbeforeadjustments | 679,131,047.06 | 651,365,935.39 |
| Beginningbalanceofretainedprofitsafteradjustments | 679,131,047.06 | 651,365,935.39 |
| Add:NetprofitattributabletoownersoftheCompanyastheparent | 18,638,557.66 | 39,679,158.13 |
| dividendofordinarysharespayable | 16,841,229.78 | 16,841,229.78 |
| Endingretainedprofits | 680,928,374.94 | 674,203,863.74 |
33.OperatingRevenueandCostofSales
Unit:RMB
| Item | ReportingPeriod | SamePeriodoflastyear | ||
| Operatingrevenue | Costofsales | Operatingrevenue | Costofsales | |
| Mainoperations | 1,170,216,312.13 | 1,021,184,769.09 | 1,297,931,638.97 | 1,134,816,954.26 |
| Otheroperations | 16,544,580.13 | 13,170,139.90 | 10,174,541.95 | 6,575,367.62 |
| Total | 1,186,760,892.26 | 1,034,354,908.99 | 1,308,106,180.92 | 1,141,392,321.88 |
34.TaxesandSurtaxes
Unit:RMB
| Item | ReportingPeriod | SamePeriodoflastyear |
| Urbanmaintenanceandconstructiontax | 845,650.36 | 1,420,461.39 |
| Educationsurcharge | 642,651.03 | 1,010,250.20 |
| Propertytax | 2,069,927.39 | 2,185,072.01 |
| Landusetax | 1,586,101.00 | 1,632,123.85 |
| Stampduty | 513,699.80 | 553,859.70 |
| Vehicleandvesselsusagetax | 3,495.54 | |
| Othertaxes | 81,443.68 | 226,866.31 |
| Total | 5,739,473.26 | 7,032,129.00 |
35.SellingExpense
Unit:RMB
| Item | ReportingPeriod | SamePeriodoflastyear |
| Officeexpenses | 3,386,449.10 | 6,982,458.17 |
| Employee’sremuneration | 13,325,262.47 | 11,332,610.95 |
| Salespromotionalexpense | 4,262,413.37 | 5,898,980.00 |
| Threeguarantees | 23,686,879.68 | 25,519,985.07 |
| Transportfees | 2,858,745.16 | 2,928,996.14 |
| Other | 4,708,326.08 | 3,152,325.80 |
| Total | 52,228,075.86 | 55,815,356.13 |
36.AdministrativeExpense
Unit:RMB
| Item | ReportingPeriod | SamePeriodoflastyear |
| Officeexpenses | 5,654,457.09 | 8,272,173.27 |
| Employee’sremuneration | 23,558,572.26 | 30,067,256.77 |
| Depreciationandamortization | 6,697,101.23 | 7,874,255.36 |
| Researchanddevelopmentexpense | 20,545,742.67 | 20,745,380.97 |
| Transportfees | 1,056,769.14 | 1,748,122.94 |
| Repaircharge | 1,032,605.25 | 2,150,881.75 |
| Safetyexpenses | 414,850.19 | 584,333.18 |
| Other | 3,474,389.63 | 1,955,663.27 |
| Total | 62,434,487.46 | 73,398,067.51 |
37.FinanceCosts
Unit:RMB
| Item | ReportingPeriod | SamePeriodoflastyear |
| Interestexpense | 1,805,097.10 | 2,466,943.16 |
| Less:interestincome | 891,663.17 | 1,995,814.22 |
| Netgainsorlossesofforeignexchange | -1,336,510.72 | 2,245,667.55 |
| Other | 290,739.67 | -2,383,345.13 |
| Total | -132,337.12 | 333,451.36 |
38.AssetImpairmentLoss
Unit:RMB
| Item | ReportingPeriod | SamePeriodoflastyear |
| I.Baddebtloss | 9,843,236.55 | 9,120,720.94 |
| II.Inventoryfallingpriceloss | 114,220.19 | 29,318.33 |
| Total | 9,957,456.74 | 9,150,039.27 |
39.InvestmentIncome
Unit:RMB
| Item | ReportingPeriod | SamePeriodoflastyear |
| Investmentincomereceivedfromtheholdingofavailable-for-salefinancialassets | 21,000.00 | 6,952,750.99 |
| Investmentincomereceivedfromthedisposalofsecuritiescompanies’financialproducts | 355,091.68 | 190,326.41 |
| Differenceofequityarisingfromthemeasurementoffairvalue | 2,215,049.22 | |
| Total | 376,091.68 | 9,358,126.62 |
40.OtherIncome
Unit:RMB
| Resource | ReportingPeriod | SamePeriodoflastyear |
| Governmentsubsidies | 129,600.00 | |
| Total | 129,600.00 |
41.Non-operatingIncome
Unit:RMB
| Item | ReportingPeriod | SamePeriodoflastyear | Amountrecordedincurrentnon-recurringgainsandlosses |
| Totalincomegeneratedfromdisposalofnon-currentassets | 220,802.18 | 94,440.43 | 220,802.18 |
| Ofwhich:incomegeneratedfromfixedassets | 220,802.18 | 94,440.43 | 220,802.18 |
| Insuranceindemnity | 353,600.00 | ||
| Incomefrompenalty | 6,021.73 | 6,021.73 | |
| Governmentsubsidies | 532,186.81 | ||
| Incomegeneratedfromdisposalofcurrentassets | 913,253.12 | 251,402.73 | 913,253.12 |
| Other | 963,006.00 | 20,541,693.44 | 963,006.00 |
| Total | 2,103,083.03 | 21,773,323.41 | 2,103,083.03 |
Governmentsubsidiesrecordedintothecurrentgainsandlosses:
Unit:RMB
| Item | Distributionentity | Distributionreason | Nature | Whethersubsidiesinfluencethecurrentprofitsandlossesornot | Specialsubsidyornot | ReportingPeriod | Sameperiodoflastyear | Relatedtoassets/relatedincome |
| Relocationcompensation | 0.00 | 332,986.81 | Relatedtoincome | |||||
| R&Dandindustrializationofoff-roaddieselenginecontrolledbyelectricity | 0.00 | 199,200.00 | Relatedtoincome | |||||
| Total | -- | -- | -- | -- | -- | 0.00 | 532,186.81 | -- |
42.Non-operatingExpense
Unit:RMB
| Item | ReportingPeriod | SamePeriodoflastyear | Amountrecordedincurrentnon-recurringgainsandlosses |
| Totallossescausedbydisposalofnon-currentassets | 759,756.94 | 18,709.80 | 759,756.94 |
| Lossescausedbydisposaloffixedassets | 759,756.94 | 18,709.80 | 759,756.94 |
| Donations | |||
| Lossescausedbydisposalofcurrentassets | 585,214.30 | 6,124,349.29 | 585,214.30 |
| Other | 182,194.97 | 251,596.09 | 182,194.97 |
| Total | 1,527,166.21 | 6,394,655.18 | 1,527,166.21 |
43.IncomeTaxExpense(1)ListofIncomeTaxExpense
Unit:RMB
| Item | ReportingPeriod | SamePeriodoflastyear |
| Currentincometaxexpense | 4,352,526.65 | 5,670,998.75 |
| Total | 4,352,526.65 | 5,670,998.75 |
(2)AdjustmentProcessofAccountingProfitandIncomeTaxExpense
Unit:RMB
| Item | ReportingPeriod |
| Profitbeforetaxation | 23,260,435.57 |
| Currentincometaxexpenseaccountedatstatutory/applicabletaxrate | 3,489,065.34 |
| Influenceofapplyingdifferenttaxratesbysubsidiaries | 376,107.32 |
| Influenceofnotdeductablecosts,expensesandlosses | 1,012,585.21 |
| Other | -525,231.22 |
| Incometaxexpense | 4,352,526.65 |
44.CashFlowStatement(1)CashGeneratedfromOtherOperatingActivities
Unit:RMB
| Item | ReportingPeriod | SamePeriodoflastyear |
| Subsidyandappropriation | 129,600.00 | |
| Cashreceivedfromothercurrentaccount | 5,101,317.80 | 3,505,477.12 |
| Interestincome | 891,663.17 | 1,995,814.22 |
| Total | 6,122,580.97 | 5,501,291.34 |
(2)CashUsedinOtherOperatingActivities
Unit:RMB
| Item | ReportingPeriod | SamePeriodoflastyear |
| Sellingexpensepaidincash | 21,006,830.47 | 25,339,487.40 |
| Administrativeexpensepaidincash | 14,557,302.97 | 23,145,470.19 |
| Handlingcharge | 282,442.51 | 190,445.34 |
| Other | 611,755.52 | 330,043.88 |
| Total | 36,458,331.47 | 49,005,446.81 |
45.SupplementalInformationforCashFlowStatement(1)SupplementalInformationforCashFlowStatement
Unit:RMB
| Supplementalinformation | ReportingPeriod | Sameperiodoflastyear |
| 1.Reconciliationofnetprofittonetcashflowsgeneratedfromoperatingactivities | -- | -- |
| Netprofit | 18,907,908.92 | 40,050,611.87 |
| Add:Provisionforimpairmentofassets | 9,957,456.74 | 9,150,039.27 |
| Depreciationoffixedassets,oil-gasassets,andproductivelivingassets | 45,126,800.50 | 46,215,003.48 |
| Amortizationofintangibleassets | 3,009,252.65 | 2,951,641.28 |
| Lossesondisposaloffixedassets,intangibleassetsandotherlong-livedassets(gains:negative) | 521,857.30 | -65,821.39 |
| Financecosts(gains:negative) | 668,251.41 | 568,840.63 |
| Investmentloss(gains:negative) | -376,091.68 | -7,143,077.40 |
| Decreaseininventory(gains:negative) | 84,613,078.27 | 45,213,642.10 |
| Decreaseinaccountsreceivablegeneratedfromoperatingactivities(gains:negative) | -250,092,116.94 | -97,396,929.18 |
| Increaseinaccountspayableusedinoperatingactivities(decrease:negative) | 84,973,677.86 | 30,817,483.85 |
| Others | -2,918,928.18 | -5,982,111.20 |
| Netcashgeneratedfrom/usedinoperatingactivities | -5,608,853.15 | 64,379,323.31 |
| 2.Significantinvestingandfinancingactivitieswithoutinvolvementofcashreceiptsandpayments | -- | -- |
| 3.Netincrease/decreaseofcashandcashequivalent: | -- | -- |
| Endingbalanceofcash | 282,312,926.17 | 589,472,465.73 |
| Less:beginningbalanceofcash | 325,263,654.43 | 583,278,129.09 |
| Add:endingbalanceofcashequivalents | 0.00 | |
| Less:beginningbalanceofcashequivalents | 0.00 | 0.00 |
| Netincreaseincashandcashequivalents | -42,950,728.26 | 6,194,336.64 |
(2)CashandCashEquivalent
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| I.Cash | 282,312,926.17 | 325,263,654.43 |
| Ofwhich:cashonhand | 444,203.08 | 466,356.31 |
| Bankdepositsondemand | 281,868,723.09 | 324,781,747.27 |
| Othermonetaryfundondemand | 15,550.85 | |
| II.Cashequivalents | 0.00 | |
| III.Endingbalanceofcashandcashequivalents | 282,312,926.17 | 325,263,654.43 |
46.TheAssetswiththeOwnershiporUseRightRestricted
Unit:RMB
| Item | Endingcarryingvalue | Reasonforrestriction |
| Monetarycapital | 163,546,000.00 | Cashdepositsforbank’sacceptancebill |
| Housesandbuildings | 12,255,901.93 | Aspledgeforbank’sborrowings |
| Landuseright | 18,676,590.92 | Aspledgeforbank’sborrowings |
| Total | 194,478,492.85 | -- |
47.ForeignCurrencyMonetaryItems(1)ForeignCurrencyMonetaryItems
Unit:RMB
| Item | Endingforeigncurrencybalance | Exchangerate | EndingbalanceconvertedtoRMB |
| Monetarycapital | |||
| Including:USD | 2,586,982.64 | 6.6166 | 17,117,029.34 |
| HKD | 251,970.08 | 0.8431 | 212,435.97 |
| SGD | 54,427.95 | 4.8386 | 263,355.08 |
| Accountsreceivable | |||
| Including:USD | 9,138,031.84 | 6.6166 | 60,462,701.47 |
VIII.ChangesofConsolidationScope
NosuchcaseinReportingPeriod.
IX.EquityinOtherEntities
1.EquityinSubsidiary(1)Subsidiaries
| Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | |||||
| ChangchaiWanzhouDieselEngineCo.,Ltd. | Chongqing | Chongqing | Industry | 60.00% | Set-up | |
| ChangzhouChangchaiBenniuDieselEngineFittingsCo.,Ltd. | ChangzhouCity | ChangzhouCity | Industry | 99.00% | 1.00% | Set-up |
| ChangzhouHoushengInvestmentCo.,Ltd. | ChangzhouCity | ChangzhouCity | Service | 100.00% | Set-up | |
| ChangzhouChangchaiHoushengAgriculturalEquipmentCo.,Ltd. | ChangzhouCity | ChangzhouCity | Industry | 70.00% | 25.00% | Set-up |
| ChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd. | ChangzhouCity | ChangzhouCity | Industry | 100.00% | Investment | |
(2)SignificantNotWholly-ownedSubsidiary
Unit:RMB
| Name | Shareholdingproportionofnon-controllinginterests | Theprofitorlossattributabletonon-controllinginterests | Declaringdividendsdistributedtonon-controllinginterests | Endingbalanceofnon-controllinginterests |
| ChangchaiWanzhouDieselEngineCo.,Ltd. | 40.00% | 241,336.42 | 19,343,969.45 | |
| ChangzhouChangchaiHoushengAgriculturalEquipmentCo.,Ltd. | 5.00% | 28,014.84 | 398,538.12 |
(3)TheMainFinancialInformationofSignificantNotWholly-ownedSubsidiary
Unit:RMB
| Name | Endingbalance | Beginningbalance | ||||||||||
| Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentliability | Totalliabilities | Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentliability | Totalliabilities | |
| ChangchaiWanzhouDieselEngineCo.,Ltd. | 50,263,472.26 | 27,197,323.56 | 77,460,795.82 | 27,100,872.20 | 2,000,000.00 | 29,100,872.20 | 51,974,844.72 | 27,420,469.36 | 79,395,314.08 | 29,638,731.50 | 2,000,000.00 | 31,638,731.50 |
| ChangzhouChangchaiHoushengAgriculturalEquipmentCo.,Ltd. | 35,496,936.27 | 659,870.33 | 36,156,806.60 | 28,186,044.17 | 28,186,044.17 | 38,597,424.23 | 346,526.83 | 38,943,951.06 | 31,533,485.51 | 31,533,485.51 | ||
Unit:RMB
| Name | ReportingPeriod | Sameperiodoflastyear | ||||||
| Operatingrevenue | Netprofit | Totalcomprehensiveincome | Cashflowsfromoperatingactivities | Operatingrevenue | Netprofit | Totalcomprehensiveincome | Cashflowsfromoperatingactivities | |
| ChangchaiWanzhouDieselEngineCo.,Ltd. | 27,534,782.67 | 603,341.04 | 603,341.04 | -817,231.49 | 32,078,103.46 | 867,855.82 | 867,855.82 | 1,475,032.87 |
| ChangzhouChangchaiHoushengAgriculturalEquipmentCo.,Ltd. | 11,788,194.43 | 560,296.88 | 560,296.88 | -6,844,681.85 | 8,689,291.61 | 486,228.32 | 486,228.32 | -10,269,003.10 |
2.EquityintheStructuredEntitynotIncludedintheScopeofConsolidatedFinancialStatementsRelatednotestostructuredentitynotincludedinthescopeofconsolidatedfinancialstatements:
On18October2017,theCompanysetupChangzhouXietongPrivateEquityFund(LimitedPartnership)
togetherwithSynergeticInnovationFundManagementCo.,Ltd.throughjointinvestment,ofwhich,RMB1
millionwasinvestedbythegeneralpartner-SynergeticInnovationFundManagementCo.,Ltd.,andRMB100
millionwasinvestedbythelimitedpartner-ChangchaiCo.,Ltd.InaccordancewiththePartnershipAgreement,
thelimitedpartnerdoesnotexecutethepartnershipaffairs.Thus,theCompanydoesnotcontrolChangzhou
XietongPrivateEquityFund(LimitedPartnership)anddidnotincludeitintothescopeofconsolidatedfinancial
statements.
X.TheRiskRelatedtoFinancialInstruments
ThegoaloftheCompany’sriskmanagementwasgainingthebalancebetweentheriskandincome,and
reducedthenegativeimpacttotheoperationperformanceoftheCompanyinthelowestlevelandmaximizedthe
interestsofshareholdersandotherequityinvestors.Baseontheriskmanagementgoal,thebasisstrategyofthe
Company’sriskmanagementwastorecognizedandanalyzeallkindsofriskthattheCompanyfaced,setup
suitableriskbottomlineandconductriskmanagement,andsupervisedtheriskstimelyandreliablyandcontrol
theriskwithinthelimitedscope.
ThemainrisksoftheCompanyduetofinancialinstrumentswerecreditrisk,liquidityriskandmarketrisk.
Themanagementlevelhadreviewedandapprovedthepoliciestomanagetherisks,whichsummarizedas
follows:
(I)CreditRisk
Creditriskwasonepartyofthecontractfailedtofulfilltheobligationsandcauseslossoffinancialassetsof
theotherparty.
ThecreditofriskoftheCompanymainlywasrelatedtoaccountreceivable,inordertocontroltherisk,the
Companyconductthefollowingmethods.
TheCompanyonlyconductsrelatedtransactionwithapprovedandreputablethirdparty,inlinewiththe
policyoftheCompany,theCompanyneedtoconductcredit-checkfortheclientsadoptingwayofcreditto
conducttransaction.Inaddition,theCompanycontinuouslymonitorsthebalanceofaccountreceivabletoensure
theCompanywouldnotfacethesignificantbaddebtrisk.
(II)LiquidityRisk
Liquidityriskisreferredtotheriskofincurringcapitalshortagewhenperformingsettlementobligationin
thewayofcashpaymentorotherfinancialassets.ThepoliciesoftheCompanyaretoensurethattherewas
sufficientcashtopaythedueliabilities.
TheliquidityriskwascentralizedcontrolledbythefinancialdepartmentoftheCompany.Thefinancial
departmentsthroughsupervisingthebalanceofthecashandsecuritiescanbeconverttocashatanytimeandthe
rollingpredictionofcashflowinfuture12monthstoensuretheCompanyhavesufficientcashtopaythe
liabilitiesunderthecaseofallreasonableprediction.
(III)MarketRisk
Marketriskisrefertoriskofthefairvalueorfuturecashflowoffinancialinstrumentchangedduetothe
changeofmarketprice,including:foreignexchangeraterisk,interestraterisk.
1.InterestRateRisk
Interestrateriskisreferstofluctuationriskofthefairvalueorfuturecashflowoffinancialinstrument
changeduetothechangeofmarketprice.
2.ForeignExchangeRisk
Foreignexchangerateriskisreferredtotheriskincurredformthechangeofexchangerate.Asforthe
Company’sexportbusiness,customerswillbegivenacertaincreditterm,iftheRMBappreciatesagainstthe
dollar,thecompany'saccountsreceivablewillincurforeigncurrencyexchangeloss.
XI.TheDisclosureofFairValue
1.EndingFairValueofAssetsandLiabilitiesatFairValue
Unit:RMB
| Item | Endingfairvalue | |||
| Fairvaluemeasurementitemsatlevel1 | Fairvaluemeasurementitemsatlevel2 | Fairvaluemeasurementitemsatlevel3 | Total | |
| I.Consistentfairvaluemeasurement | -- | -- | -- | -- |
| Including：Available-for-salefinancialassets | 537,369,000.00 | 537,369,000.00 | ||
| Equityinstrumentinvestment | 537,369,000.00 | 537,369,000.00 | ||
| Totalassetsconsistentlymeasuredbyfairvalue | 537,369,000.00 | 537,369,000.00 | ||
| II.Inconsistentfairvaluemeasurement | -- | -- | -- | -- |
2.MarketPriceRecognitionBasisforConsistentandInconsistentFairValueMeasurementItemsatLevel
XII.ConnectedPartyandConnectedTransaction
1.InformationRelatedtotheCompanyastheParentoftheCompany
| Name | Registrationplace | Natureofbusiness | Registeredcapital | ProportionofshareheldbytheCompanyastheparentagainsttheCompany(%) | ProportionofvotingrightsownedbytheCompanyastheparentagainsttheCompany(%) |
| ChangzhouGovernmentState-ownedAssetsSupervisionandAdministrationCommission | Changzhou | 30.43% | 30.43% |
Notes
TheactualcontrolleroftheCompanyisChangzhouGovernmentState-ownedAssetsSupervisionand
AdministrationCommission.Asof30June2018,itheld30.43%sharesoftheCompany(stateownedshares).
ThefinalcontrolleroftheCompanyisChangzhouGovernmentState-ownedAssetsSupervisionand
AdministrationCommission.
2.SubsidiariesoftheCompanyRefertoNoteIXEquityinOtherEntitiesfordetails.3.InformationonOtherConnectedParties
| Name | Relationship |
| SynergeticInnovationFundManagementCo.,Ltd. | ThedirectoroftheCompanyservesastheseniorexecutiveofthatcompany |
XIII.CommitmentsandContingency
1.SignificantCommitmentsSignificantcommitmentsonbalancesheetdate
Asof30June2018,therewerenosignificantcommitmentstobedisclosed.
2.Contingency(1)SignificantContingencyonBalanceSheetDateLitigationandarbitrationintheReportingPeriod:
| Nameoftheentity | Dateofaccepted | Nameofthelitigationorarbitrationinstitutions | Amountinvolved(RMB’0,000) | Notes |
| ShandongHongliGroupCo.,Ltd. | 27June2001 | ChangzhouIntermediatePeople'sCourt | 1,436.00 | Underthebankruptcyandliquidation |
| Total | 1,436.00 | |||
Notes:
AboutthelawsuitcaseofShandongHongliGroupCo.,Ltd.,theaccusedcompanyowedaccumulatively
RMB14.36milliontotheCompany.TheCompanysuedtoChangzhouIntermediatePeople’sCourtin2001and
suedforcompulsoryexecutioninApril2002.Currently,thedefendanthasstartedthebankruptcyprocedure.The
aforesaidpaymenthasarrangedforthefullprovisionforbaddebts.
XIV.OtherSignificantEvents
1.SegmentInformation(1)BasisforDeterminationofSegmentsandGoverningAccountingPolicies
DuetotheoperationscopeoftheCompanyandsubsidiariesweresimilar,theCompanyconductcommon
management,didnotdividebusinessunit,sotheCompanyonlymadesinglebranchreport.
(2)ReasonsShouldBeGivenwhentheCompanyHasnoSegment,ortheTotalAssetsandTotalLiabilitiesofVariousSegmentsCouldNotBeDisclosed
DuetotheoperationscopeoftheCompanyandsubsidiariesweresimilar,theCompanyconductcommon
management,didnotdividebusinessunit,sotheCompanyonlymadesinglebranchreport.
XV.NotesofMainItemsintheFinancialStatementsoftheCompanyastheParent
1.AccountsReceivable(1)AccountsReceivableDisclosedbyCategory
Unit:RMB
| Category | Endingbalance | Beginningbalance |
| Carryingamount | Baddebtprovision | Carryingvalue | Carryingamount | Baddebtprovision | Carryingvalue | |||||
| Amount | Proportion | Amount | Withdrawalproportion | Amount | Proportion | Amount | Withdrawalproportion | |||
| Accountsreceivablewithsignificantsingleamountforwhichbaddebtprovisionseparatelyaccrued | 35,035,845.53 | 3.68% | 30,436,502.68 | 86.87% | 4,599,342.85 | 35,274,603.67 | 6.52% | 30,401,000.85 | 86.18% | 4,873,602.82 |
| Accountsreceivablewithdrawalofbaddebtprovisionofbycreditriskscharacteristics: | 915,639,116.61 | 96.22% | 197,538,994.32 | 21.57% | 718,100,122.29 | 505,142,981.60 | 93.30% | 190,129,532.72 | 37.64% | 315,013,448.88 |
| Accountsreceivablewithinsignificantsingleamountforwhichbaddebtprovisionseparatelyaccrued | 974,986.14 | 0.10% | 974,986.14 | 100.00% | 974,986.14 | 0.18% | 974,986.14 | 100.00% | ||
| Total | 951,649,948.28 | 100.00% | 228,950,483.14 | 24.06% | 722,699,465.14 | 541,392,571.41 | 100.00% | 221,505,519.71 | 40.91% | 319,887,051.70 |
Accountsreceivablewithsinglesignificantamountforwhichbaddebtprovisionseparatelyaccruedattheendoftheperiod√Applicable□notapplicable
Unit:RMB
| Accountsreceivable(byunits) | Endingbalance | |||
| Accountsreceivable | Baddebtprovision | Withdrawalproportion | Withdrawalreason | |
| Customer1 | 1,902,326.58 | 1,902,326.58 | 100.00% | Difficulttorecover |
| Customer2 | 6,215,662.64 | 6,215,662.64 | 100.00% | Difficulttorecover |
| Customer3 | 2,293,090.49 | 2,175,177.75 | 94.86% | Expectedtodifficultlyrecover |
| Customer4 | 3,279,100.00 | 3,279,100.00 | 100.00% | Expectedtodifficultlyrecover |
| Customer5 | 2,068,377.01 | 2,068,377.01 | 100.00% | Expectedtodifficultlyrecover |
| Customer6 | 5,359,381.00 | 5,359,381.00 | 100.00% | Difficulttorecover |
| Customer7 | 2,584,805.83 | 2,584,805.83 | 100.00% | Difficulttorecover |
| Customer8 | 1,599,243.11 | 1,599,243.11 | 100.00% | Difficulttorecover |
| Customer9 | 1,161,700.00 | 580,850.00 | 50.00% | Expectedtodifficultlyrecover |
| Customer10 | 8,572,158.87 | 4,671,578.76 | 54.50% | Expectedtodifficultlyrecover |
| Total | 35,035,845.53 | 30,436,502.68 | -- | -- |
Inthegroups,accountsreceivableadoptedaginganalysismethodtowithdrawbaddebtprovision:
√Applicable□notapplicable
Unit:RMB
| Aging | Endingbalance | ||
| Accountsreceivable | Baddebtprovision | Withdrawalproportion | |
| Subentrywithin1year | |||
| Subtotalofwithin1year | 721,605,061.45 | 14,432,101.23 | 2.00% |
| 1to2years | 9,503,940.54 | 475,197.03 | 5.00% |
| 2to3years | 1,485,730.74 | 222,859.61 | 15.00% |
| 3to4years | 850,024.71 | 255,007.41 | 30.00% |
| 4to5years | 101,325.32 | 60,795.19 | 60.00% |
| Over5years | 182,093,033.85 | 182,093,033.85 | 100.00% |
| Total | 915,639,116.61 | 197,538,994.32 | |
Notestothebasisforthedeterminationofthegroups:
Inthegroups,accountsreceivableadoptedbalancepercentagemethodtowithdrawbaddebtprovision:
□Applicable√Notapplicable
(2)BadDebtProvisionWithdrawn,ReversedorRecoveredintheReportingPeriod
ThewithdrawalamountofthebaddebtprovisionduringtheReportingPeriodwasofRMB10,137,747.23;
theamountofthereversedorrecoveredpartduringtheReportingPeriodwasofRMB579,326.17.
(3)Top5AccountsReceivableinEndingBalanceCollectedaccordingtotheArrearsParty
Thetotaltop5accountsreceivableinendingbalancecollectedaccordingtothearrearspartywas
RMB484,809,565.40,accountingfor50.94%ofthetotalendingbalanceofaccountsreceivable.The
correspondingendingbalanceofbaddebtprovisionwithdrawnwasRMB18,672,083.07.
2.OtherAccountsReceivable(1)OtherAccountsReceivableDisclosedbyCategory
Unit:RMB
| Category | Endingbalance | Beginningbalance | ||||||||
| Carryingamount | Baddebtprovision | Carryingvalue | Carryingamount | Baddebtprovision | Carryingvalue | |||||
| Amount | Proportion | Amount | Withdrawalproportion | Amount | Proportion | Amount | Withdrawalproportion | |||
| Otheraccountsreceivablewithsignificantsingleamountforwhichbaddebtprovisionseparatelyaccrued | 2,853,188.02 | 7.32% | 2,853,188.02 | 100.00% | 2,853,188.02 | 6.83% | 2,853,188.02 | 100.00% | ||
| Otheraccountsreceivablewithdrawnbaddebtprovisionaccordingtocreditriskscharacteristics | 34,026,192.31 | 87.29% | 25,172,489.76 | 73.98% | 8,853,702.55 | 36,815,664.59 | 88.14% | 25,017,453.19 | 67.95% | 11,798,211.40 |
| Otheraccountsreceivablewithinsignificantsingleamountforwhichbaddebtprovisionseparatelyaccrued | 2,099,382.02 | 5.39% | 2,099,382.02 | 100.00% | 2,099,382.02 | 5.03% | 2,099,382.02 | 100.00% | ||
| Total | 38,978,762.35 | 100.00% | 30,125,059.80 | 77.29% | 8,853,702.55 | 41,768,234.63 | 100.00% | 29,970,023.23 | 71.75% | 11,798,211.40 |
Otherreceivablewithsinglesignificantamountforwhichbaddebtprovisionseparatelyaccruedattheendoftheperiod：
√Applicable□notapplicable
Unit:RMB
| Otheraccountsreceivable(unit) | Endingbalance | |||
| Otheraccountsreceivable | Baddebtprovision | Withdrawalproportion | Withdrawalreason | |
| ChangchaiGroupImp.&Exp.Co.,Ltd. | 2,853,188.02 | 2,853,188.02 | 100.00% | Difficulttorecover |
| Total | 2,853,188.02 | 2,853,188.02 | -- | -- |
Inthegroups,otheraccountsreceivableadoptedaginganalysismethodtowithdrawbaddebtprovision:
√Applicable?notapplicable
Unit:RMB
| Aging | Endingbalance | ||
| Otheraccountsreceivable | Baddebtprovision | Withdrawalproportion | |
| Subentrywithin1year | |||
| Subtotalofwithin1year | 8,235,668.29 | 164,713.37 | 2.00% |
| 1to2years | 440,089.30 | 22,004.47 | 5.00% |
| 2to3years | 114,223.10 | 17,133.47 | 15.00% |
| 3to4years | 72,458.31 | 21,737.49 | 30.00% |
| 4to5years | 542,130.85 | 325,278.51 | 60.00% |
| Over5years | 24,621,622.46 | 24,621,622.46 | 100.00% |
| Total | 34,026,192.31 | 25,172,489.76 | |
Notes:
Inthegroups,otheraccountsreceivableadoptedbalancepercentagemethodtowithdrawbaddebtprovision:
□Applicable√NotapplicableInthegroups,otheraccountsreceivableadoptedothermethodstowithdrawbaddebtprovision:
□Applicable√Notapplicable
(2)ThereWereNoBadDebtProvisionWithdrawn,ReversedorRecoveredintheReportingPeriod(3)OtherAccountReceivableClassifiedbyAccountNature
Unit:RMB
| Nature | Endingcarryingamount | Beginningcarryingamount |
| Cashdeposit&Margin | 280,014.00 | 4,200.00 |
| Intercoursefundsamongunits | 17,329,166.58 | 25,497,534.34 |
| Pettycashandborrowingsbyemployees | 8,955,031.25 | 912,133.46 |
| Other | 12,414,550.52 | 15,354,366.83 |
| Total | 38,978,762.35 | 41,768,234.63 |
(4)Top5OtherAccountsReceivableinEndingBalanceCollectedaccordingtotheArrearsParty
Unit:RMB
| Nameoftheentity | Nature | Endingbalance | Aging | Proportiontototalendingbalanceofotheraccountsreceivable | Endingbalanceofbaddebtprovision |
| ChangzhouChangchaiHoushengAgriculturalEquipmentCo.,Ltd. | Intercoursefunds | 7,156,197.71 | Within1year | 18.36% | 143,123.95 |
| ChangzhouCompressorsFactory | Intercoursefunds | 2,940,000.00 | Over5years | 7.54% | 2,940,000.00 |
| ChangchaiGroupImp.&Exp.Co.,Ltd. | Intercoursefunds | 2,853,188.02 | Over5years | 7.32% | 2,853,188.02 |
| ChangzhouNewDistrictAccountingCentre | Intercoursefunds | 1,626,483.25 | Over5years | 4.17% | 1,626,483.25 |
| ChangchaiGroupSettlementCentre | Intercoursefunds | 1,140,722.16 | Over5years | 2.93% | 1,140,722.16 |
| Total | -- | 15,716,591.14 | -- | 40.32% |
3.Long-termEquityInvestment
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreserve | Carryingvalue | Carryingamount | Depreciationreserve | Carryingvalue | |
| Investmenttosubsidiaries | 231,752,730.03 | 231,752,730.03 | 231,752,730.03 | 231,752,730.03 | ||
| Investmenttojointventuresorassociatedenterprises | 44,182.50 | 44,182.50 | 44,182.50 | 44,182.50 | ||
| Total | 231,796,912.53 | 44,182.50 | 231,752,730.03 | 231,796,912.53 | 44,182.50 | 231,752,730.03 |
(1)InvestmenttoSubsidiaries
Unit:RMB
| Investee | Beginningbalance | Increase | Decrease | Endingbalance | Depreciationreservewithdrawn | Endingbalanceofdepreciationreserve |
| ChangchaiWanzhouDieselEngineCo.,Ltd. | 51,000,000.00 | 51,000,000.00 | ||||
| ChangzhouChangchaiBenniuDieselEngineFittingsCo.,Ltd. | 96,466,500.00 | 96,466,500.00 | ||||
| ChangzhouHoushengInvestmentCo.,Ltd. | 30,000,000.00 | 30,000,000.00 | ||||
| ChangzhouChangchaiHoushengAgriculturalEquipmentCo.,Ltd. | 7,000,000.00 | 7,000,000.00 | ||||
| ChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd. | 47,286,230.03 | 47,286,230.03 | ||||
| Total | 231,752,730.03 | 231,752,730.03 | 0.00 |
(2)InvestmenttoJointVenturesorAssociatedEnterprises
Unit:RMB
| Investee | Beginningbalance | Increase/decrease | Closingbalance | Endingbalanceofimpairmentprovision | |||||||
| Additionalinvestment | Reducedinvestment | Gainsandlossesrecognizedundertheequitymethod | Adjustmentofothercomprehensiveincome | Changesinotherequity | Cashbonusorprofitsannouncedtoissue | Withdrawalofimpairmentprovision | Other | ||||
| I.Jointventures | |||||||||||
| II.Associatedenterprises | |||||||||||
| BeijingTsinghuaXingyeIndustrialInvestmentManagementCo.,Ltd. | 44,182.50 | 44,182.50 | 44,182.50 | |
| Subtotal | 44,182.50 | 44,182.50 | 44,182.50 | |
| Total | 44,182.50 | 44,182.50 | 44,182.50 |
4.OperatingRevenueandCostofSales
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear | ||
| Operatingrevenue | Costofsales | Operatingrevenue | Costofsales | |
| Mainoperations | 1,105,442,892.03 | 978,595,283.86 | 1,219,777,917.09 | 1,080,764,388.78 |
| Otheroperations | 15,892,231.12 | 12,482,560.63 | 9,529,630.03 | 5,985,445.18 |
| Total | 1,121,335,123.15 | 991,077,844.49 | 1,229,307,547.12 | 1,086,749,833.96 |
5.InvestmentIncome
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Investmentincomegeneratedfromtheholdingofavailable-for-salefinancialassets | 21,000.00 | 6,952,750.99 |
| Total | 21,000.00 | 6,952,750.99 |
XVI.SupplementaryMaterials1.ItemsandAmountsofNon-recurringProfitorLoss√Applicable□Notapplicable
Unit:RMB
| Item | Amount | Note |
| Gains/lossesonthedisposalofnon-currentassets | -512,440.14 | |
| Governmentgrantsrecognizedinthecurrentperiod,exceptforthoseacquiredintheordinarycourseofbusinessorgrantedatcertainquotas | 129,600.00 |
| oramountsaccordingtothegovernment’sunifiedstandards | ||
| Capitaloccupationchargesonnon-financialenterprisesthatarerecordedintocurrentgainsandlosses | 573,182.00 | |
| Gain/lossfromchangeoffairvalueoftransactionalassetsandliabilities,andinvestmentgainsfromdisposaloftransactionalfinancialassetsandliabilitiesandavailable-for-salefinancialassets,otherthanvalidhedgingrelatedtotheCompany’scommonbusinesses | 355,091.68 | |
| Othernon-operatingincomeandexpenseotherthantheabove | 1,114,871.58 | |
| Less:Incometaxeffects | 284,570.71 | |
| Total | 1,375,734.41 | -- |
ExplainthereasonsiftheCompanyclassifiesanitemasanextraordinarygain/lossaccordingtothedefinitionintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic—ExtraordinaryGainsandLosses,orclassifiesanyextraordinarygain/lossitemmentionedinthesaidexplanatoryannouncementasarecurrentgain/lossitem□Applicable√Notapplicable
2.ReturnonEquityandEarningsPerShare
| ProfitasofReportingPeriod | WeightedaverageROE(%) | EPS(Yuan/share) | |
| EPS-basic | EPS-diluted | ||
| NetprofitattributabletoordinaryshareholdersoftheCompany | 0.86% | 0.03 | 0.03 |
| NetprofitattributabletoordinaryshareholdersoftheCompanyafterdeductionofnon-recurringprofitandloss | 0.78% | 0.03 | 0.03 |
3.DifferencesbetweenAccountingDataunderDomesticandOverseasAccountingStandards(1)DifferencesofNetProfitandNetAssetsDisclosedinFinancialReportsPreparedunderInternational
andChineseAccountingStandards□Applicable√Notapplicable(2)DifferencesofNetProfitandNetAssetsDisclosedinFinancialReportsPreparedunderOverseasand
ChineseAccountingStandards□Applicable√Notapplicable
PartXIDocumentsAvailableforReference
(I)ThefinancialstatementssignedandsealedbytheCompany’slegalrepresentative,GeneralManagerandheadofthefinancialdepartment(accountantincharge).(II)TheoriginalsofalltheCompany’sdocumentsandannouncementswhichweredisclosedonthewebsitedesignatedbytheCSRCduringtheReportingPeriod.(III)TheInterimReportdisclosedinothersecuritiesmarkets.Theabove-mentioneddocumentsavailableforreferenceareallkeptintheSecretariatoftheBoardofDirectorsoftheCompanyandtheShenzhenStockExchange.ThisInterimReporthasbeenpreparedinbothChineseandEnglish.Shouldtherebeanydiscrepanciesormisunderstandingsbetweenthetwoversions,theChineseversionshallprevail.
TheBoardofDirectorsChangchaiCompany,Limited
24August2018