Shenzhen China Bicycle Company (Holdings) Limited
Semi-Annual Financial Report 2024
August 2024
Financial ReportI. Audit reportWhether the semi annual report is audited
□Yes ?No
The company's semi annual financial report has not been auditedII. Financial StatementStatement in Financial Notes are carried Unit: RMB/CNY
1. Consolidated Balance Sheet
Prepared by Shenzhen China Bicycle Company (Holdings) Limited
June 30, 2024
Unit: RMB/CNY
| Item | 2024-6-30 | 2024-1-1 |
| Current assets: | ||
| Monetary fund | 25,165,558.37 | 54,148,674.40 |
| Settlement provisions | ||
| Capital lent | ||
| Trading financial assets | ||
| Derivative financial assets | ||
| Note receivable | ||
| Account receivable | 234,545,442.91 | 196,293,133.00 |
| Receivable financing | ||
| Accounts paid in advance | 3,806,346.43 | 3,821,181.16 |
| Insurance receivable | ||
| Reinsurance receivables | ||
| Contract reserve of reinsurance receivable | ||
| Other account receivable | 697,860.12 | 12,868,327.03 |
| Including: Interest receivable | ||
| Dividend receivable | ||
| Buying back the sale of financial assets | ||
| Inventory | 88,113,620.75 | 81,916,039.14 |
| Including：Data resources | ||
| Contractual assets | ||
| Assets held for sale | ||
| Non-current asset due within one year | ||
| Other current assets | 5,650,306.39 | 11,216,095.44 |
| Total current assets | 357,979,134.97 | 360,263,450.17 |
| Non-current assets: | ||
| Loans and payments on behalf | ||
| Debt investment |
| Other debt investment | ||
| Long-term account receivable | ||
| Long-term equity investment | 30,000.00 | |
| Investment in other equity instrument | ||
| Other non-current financial assets | ||
| Investment real estate | ||
| Fix assets | 2,229,476.84 | 2,288,610.10 |
| Construction in progress | ||
| Productive biological asset | ||
| Oil and gas asset | ||
| Right-of-use assets | 1,388,912.22 | 1,816,269.83 |
| Intangible assets | ||
| Including：Data resources | ||
| Expense on Research and Development | ||
| Including：Data resources | ||
| Goodwill | ||
| Long-term expenses to be apportioned | ||
| Deferred income tax asset | 4,748,543.50 | 4,909,164.22 |
| Other non-current asset | 400,000.00 | |
| Total non-current asset | 8,396,932.56 | 9,414,044.15 |
| Total assets | 366,376,067.53 | 369,677,494.32 |
| Current liabilities: | ||
| Short-term loans | ||
| Loan from central bank | ||
| Capital borrowed | ||
| Trading financial liability | ||
| Derivative financial liability | ||
| Note payable | ||
| Account payable | 4,649,649.09 | 6,213,665.02 |
| Accounts received in advance | ||
| Contract liability | 527,792.26 | 633,114.64 |
| Selling financial asset of repurchase | ||
| Absorbing deposit and interbank deposit | ||
| Security trading of agency | ||
| Security sales of agency | ||
| Wage payable | 1,032,093.43 | 1,149,151.81 |
| Taxes payable | 884,008.39 | 11,297,756.46 |
| Other account payable | 33,107,549.28 | 39,034,314.13 |
| Including: Interest payable | ||
| Dividend payable | ||
| Commission charge and commission payable | ||
| Reinsurance payable | ||
| Liability held for sale | ||
| Non-current liabilities due within one year | 873,605.52 | 847,403.05 |
| Other current liabilities | 68,612.99 | 82,304.90 |
| Total current liabilities | 41,143,310.96 | 59,257,710.01 |
| Non-current liabilities: | ||
| Insurance contract reserve | ||
| Long-term loans | ||
| Bonds payable | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Lease liability | 573,573.50 | 1,018,630.12 |
| Long-term account payable | ||
| Long-term wages payable | ||
| Accrual liability | ||
| Deferred income | ||
| Deferred income tax liabilities | ||
| Other non-current liabilities | ||
| Total non-current liabilities | 573,573.50 | 1,018,630.12 |
| Total liabilities | 41,716,884.46 | 60,276,340.13 |
| Owner’s equity: | ||
| Share capital | 689,184,933.00 | 689,184,933.00 |
| Other equity instrument | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Capital public reserve | 779,554,450.36 | 779,554,450.36 |
| Less: Inventory shares | ||
| Other comprehensive income | ||
| Reasonable reserve | ||
| Surplus public reserve | 32,673,227.01 | 32,673,227.01 |
| Provision of general risk | ||
| Retained profit | -1,186,933,721.52 | -1,192,651,364.21 |
| Total owner’ s equity attributable to parent company | 314,478,888.85 | 308,761,246.16 |
| Minority interests | 10,180,294.22 | 639,908.03 |
| Total owner’ s equity | 324,659,183.07 | 309,401,154.19 |
| Total liabilities and owner’ s equity | 366,376,067.53 | 369,677,494.32 |
Legal Representative: Wang ShenghongPerson in charge of Accounting Works: Sun LonglongPerson in charge of Accounting Institution: She Hanxing
2. Balance Sheet of Parent Company
I n RMB
| Item | 2024-6-30 | 2024-1-1 |
| Current assets: | ||
| Monetary fund | 14,317,442.17 | 13,378,843.17 |
| Trading financial assets | ||
| Derivative financial assets | ||
| Note receivable | ||
| Account receivable | 82,213,794.19 | 185,121,769.23 |
| Receivable financing | ||
| Accounts paid in advance | 42,920.72 | 10,066,139.77 |
| Other account receivable | 86,984,000.02 | 17,300,576.60 |
| Including: Interest receivable | ||
| Dividend receivable | ||
| Inventory | 39,057,209.04 | 58,463,627.32 |
| Including：Data resources | ||
| Contractual assets | ||
| Assets held for sale | ||
| Non-current asset due within one year | ||
| Other current assets | 383,849.27 | |
| Total current assets | 222,999,215.41 | 284,330,956.09 |
| Non-current assets: | ||
| Debt investment | ||
| Other debt investment | ||
| Long-term account receivable | ||
| Long-term equity investment | 125,760,379.73 | 120,510,379.73 |
| Investment in other equity instrument | ||
| Other non-current financial assets | ||
| Investment real estate | ||
| Fix assets | 1,975,914.75 | 2,052,548.31 |
| Construction in progress | ||
| Productive biological asset | ||
| Oil and gas asset | ||
| Right-of-use assets | ||
| Intangible assets | ||
| Including：Data resources | ||
| Expense on Research and Development | ||
| Including：Data resources | ||
| Goodwill | ||
| Long-term expenses to be apportioned | ||
| Deferred income tax asset | 4,514,826.56 | 4,587,566.82 |
| Other non-current asset | 400,000.00 | |
| Total non-current asset | 132,251,121.04 | 127,550,494.86 |
| Total assets | 355,250,336.45 | 411,881,450.95 |
| Current liabilities: | ||
| Short-term loans | ||
| Trading financial liability | ||
| Derivative financial liability | ||
| Note payable | ||
| Account payable | 79,023.79 | 2,660,407.22 |
| Accounts received in advance | 10,000,000.00 | |
| Contract liability | ||
| Wage payable | 509,163.43 | 381,092.87 |
| Taxes payable | 558,089.47 | 10,988,473.35 |
| Other account payable | 28,940,855.09 | 86,300,406.58 |
| Including: Interest payable | ||
| Dividend payable | ||
| Liability held for sale | ||
| Non-current liabilities due within one year |
| Other current liabilities | ||
| Total current liabilities | 40,087,131.78 | 100,330,380.02 |
| Non-current liabilities: | ||
| Long-term loans | ||
| Bonds payable | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Lease liability | ||
| Long-term account payable | ||
| Long-term wages payable | ||
| Accrual liability | ||
| Deferred income | ||
| Deferred income tax liabilities | ||
| Other non-current liabilities | ||
| Total non-current liabilities | ||
| Total liabilities | 40,087,131.78 | 100,330,380.02 |
| Owner’s equity: | ||
| Share capital | 689,184,933.00 | 689,184,933.00 |
| Other equity instrument | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Capital public reserve | 790,922,522.71 | 790,922,522.71 |
| Less: Inventory shares | ||
| Other comprehensive income | ||
| Reasonable reserve | ||
| Surplus public reserve | 32,673,227.01 | 32,673,227.01 |
| Retained profit | -1,197,617,478.05 | -1,201,229,611.79 |
| Total owner’ s equity | 315,163,204.67 | 311,551,070.93 |
| Total liabilities and owner’ s equity | 355,250,336.45 | 411,881,450.95 |
3. Consolidated Profit Statement
Unit: RMB/CNY
| Item | Semi-annual of 2024 | Semi-annual of 2023 |
| I. Total operation revenue | 213,499,597.25 | 292,999,162.50 |
| Including: Operation revenue | 213,499,597.25 | 292,999,162.50 |
| Interest income | ||
| Insurance gained | ||
| Commission charge and commission income | ||
| II. Total operation cost | 207,306,438.18 | 285,545,357.24 |
| Including: Operation cost | 200,995,029.52 | 278,484,152.74 |
| Interest expense | ||
| Commission charge and commission expense | ||
| Cash surrender value | ||
| Net amount of expense of compensation | ||
| Net amount of withdrawal of insurance contract reserve |
| Bonus expense of guarantee slip | ||
| Reinsurance expense | ||
| Tax and surcharge | 151,502.35 | 129,697.74 |
| Sales expenses | 1,778,393.48 | 2,522,214.01 |
| Administration expenses | 3,928,458.71 | 4,130,652.80 |
| R&D expenses | 454,213.62 | 336,970.90 |
| Finance expenses | -1,159.50 | -58,330.95 |
| Including: Interest expenses | 25,397.71 | |
| Interest income | 60,794.91 | 70,100.25 |
| Add: Other income | 2,092.35 | |
| Investment income (Loss is listed with “-”) | ||
| Including: Investment income on affiliated company and joint venture | ||
| The termination of income recognition for financial assets measured by amortized cost | ||
| Exchange income (Loss is listed with “-”) | ||
| Net exposure hedging income (Loss is listed with “-”) | ||
| Income from change of fair value (Loss is listed with “-”) | ||
| Loss of credit impairment (Loss is listed with “-”) | 254,919.43 | 328,289.79 |
| Impairment loss on assets(Loss is listed with “-”) | 8,123.50 | |
| Income from assets disposal (Loss is listed with “-”) | ||
| III. Operation profit (Loss is listed with “-”) | 6,456,202.00 | 7,784,187.40 |
| Add: Non-operating income | 1,240,262.87 | 1,253,150.81 |
| Less: Non-operating expense | 60,128.00 | 1,462,822.69 |
| IV. Total profit (Loss is listed with “-”) | 7,636,336.87 | 7,574,515.52 |
| Less: Income tax expenses | 2,128,307.99 | 1,637,455.56 |
| V. Net profit (Net loss is listed with “-”) | 5,508,028.88 | 5,937,059.96 |
| (i) Classify by business continuity | ||
| 1.Continuous operating net profit (net loss listed with ‘-”) | 5,508,028.88 | 5,937,059.96 |
| 2.Termination of net profit (net loss listed with ‘-”) | ||
| (ii) Classify by ownership | ||
| 1.Net profit attributable to shareholders of parent company (net loss listed with ‘-”) | 5,717,642.69 | 4,862,298.90 |
| 2.Minority shareholders’ gains and losses (net loss listed with ‘-”) | -209,613.81 | 1,074,761.06 |
| VI. Net other comprehensive income after taxation | ||
| Net other comprehensive income attributable to owners of parent company after taxation | ||
| (i) Other comprehensive income items which will not be reclassified subsequently to profit of loss | ||
| 1.Changes of the defined benefit plans that re-measured | ||
| 2.Other comprehensive income under equity method that cannot be transfer to |
| gain/loss | ||
| 3.Change of fair value of investment in other equity instrument | ||
| 4.Fair value change of enterprise's credit risk | ||
| 5. Other | ||
| (ii) Other comprehensive income items which will be reclassified subsequently to profit or loss | ||
| 1.Other comprehensive income under equity method that can transfer to gain/loss | ||
| 2.Change of fair value of other debt investment | ||
| 3.Amount of financial assets re-classify to other comprehensive income | ||
| 4.Credit impairment provision for other debt investment | ||
| 5.Cash flow hedging reserve | ||
| 6.Translation differences arising on translation of foreign currency financial statements | ||
| 7.Other | ||
| Net other comprehensive income attributable to minority shareholders after taxation | ||
| VII. Total comprehensive income | 5,508,028.88 | 5,937,059.96 |
| Total comprehensive income attributable to owners of parent Company | 5,717,642.69 | 4,862,298.90 |
| Total comprehensive income attributable to minority shareholders | -209,613.81 | 1,074,761.06 |
| VIII. Earnings per share: | ||
| (i)Basic EPS | 0.0083 | 0.0071 |
| (ii)Diluted EPS | 0.0083 | 0.0071 |
As for the enterprise combined under the same control, net profit of 0.00Yuan achieved by the merged partybefore combination while 0.00 Yuan achieved last period.Legal Representative: Wang ShenghongPerson in charge of Accounting Works: Sun LonglongPerson in charge of Accounting Institution: She Hanxing
4. Profit Statement of Parent Company
Unit: RMB/CNY
| Item | Semi-annual of2024 | Semi-annual of2023 |
| I. Operation revenue | 42,842,025.55 | 26,202,365.96 |
| Less: Operation cost | 37,134,145.84 | 23,417,894.55 |
| Tax and surcharge | 31,409.40 | 31,208.15 |
| Sales expenses | 42,828.78 | 120,346.23 |
| Administration expenses | 1,986,875.83 | 2,129,147.35 |
| R&D expenses | 224,047.20 | |
| Finance expenses | 957.31 | -39,733.30 |
| Including: Interest expenses | ||
| Interest income | 5,696.20 | 43,606.56 |
| Add: Other income | 2,085.77 | |
| Investment income (Loss is listed with “-”) |
| Including:Investment income on affiliated company and joint venture | ||
| The termination of income recognition for financial assets measured by amortized cost(Loss is listed with “-”) | ||
| Net exposure hedging income (Loss is listed with “-”) | ||
| Income from change of fair value (Loss is listed with “-”) | ||
| Loss of credit impairment (Loss is listed with “-”) | 290,961.03 | 648,901.39 |
| Impairment loss on assets(Loss is listed with “-”) | ||
| Income from assets disposal (Loss is listed with “-”) | ||
| II. Operation profit(Loss is listed with “-”) | 3,712,722.22 | 1,194,490.14 |
| Add: Non-operating income | 1,200,994.87 | 1,253,150.81 |
| Less: Non-operating expense | 56,908.19 | 1,452,347.65 |
| III. Total profit (Total losses are listed with “-”) | 4,856,808.90 | 995,293.30 |
| Less: Income tax expenses | 1,244,675.16 | 82,966.60 |
| IV. Net profit (Net loss is listed with “-”) | 3,612,133.74 | 912,326.70 |
| (i)Continuous operating net profit (net loss listed with ‘-”) | 3,612,133.74 | 912,326.70 |
| (ii)Termination of net profit (net loss listed with ‘-”) | ||
| V. Net other comprehensive income after taxation | ||
| (i) Other comprehensive income items which will not be reclassified subsequently to profit of loss | ||
| 1.Changes of the defined benefit plans that re-measured | ||
| 2.Other comprehensive income under equity method that cannot be transfer to gain/loss | ||
| 3.Change of fair value of investment in other equity instrument | ||
| 4.Fair value change of enterprise's credit risk | ||
| 5. Other | ||
| (ii) Other comprehensive income items which will be reclassified subsequently to profit or loss | ||
| 1.Other comprehensive income under equity method that can transfer to gain/loss | ||
| 2.Change of fair value of other debt investment | ||
| 3.Amount of financial assets re-classify to other comprehensive income | ||
| 4.Credit impairment provision for other debt investment | ||
| 5.Cash flow hedging reserve | ||
| 6.Translation differences arising on translation of foreign currency financial statements | ||
| 7.Other | ||
| VI. Total comprehensive income | 3,612,133.74 | 912,326.70 |
| VII. Earnings per share: | ||
| (i)Basic EPS |
| (ii)Diluted EPS |
5. Consolidated Cash Flow Statement
Unit: RMB/CNY
| Item | Semi-annual of2024 | Semi-annual of2023 |
| I. Cash flows arising from operating activities: | ||
| Cash received from selling commodities and providing labor services | 208,540,289.21 | 428,649,719.53 |
| Net increase of customer deposit and interbank deposit | ||
| Net increase of loan from central bank | ||
| Net increase of capital borrowed from other financial institution | ||
| Cash received from original insurance contract fee | ||
| Net cash received from reinsurance business | ||
| Net increase of insured savings and investment | ||
| Cash received from interest, commission charge and commission | ||
| Net increase of capital borrowed | ||
| Net increase of capital from repurchase business | ||
| Net cash received by agents in sale and purchase of securities | ||
| Write-back of tax received | ||
| Other cash received concerning operating activities | 12,931,342.09 | 13,328,115.67 |
| Subtotal of cash in-flow arising from operation activity | 221,471,631.30 | 441,977,835.20 |
| Cash paid for purchasing commodities and receiving labor service | 257,584,685.85 | 464,456,329.67 |
| Net increase of customer loans and advances | ||
| Net increase of deposits in central bank and interbank | ||
| Cash paid for original insurance contract compensation | ||
| Net increase of capital lent | ||
| Cash paid for interest, handling charge and commission | ||
| Cash paid for bonus of guarantee slip | ||
| Cash paid to/for staff | 4,191,369.89 | 3,788,625.70 |
| Taxes paid | 6,814,606.57 | 3,747,529.15 |
| Other cash paid concerning operating activities | 4,209,777.81 | 5,349,724.34 |
| Subtotal of cash out-flow arising from operation activity | 272,800,440.12 | 477,342,208.86 |
| Net cash flow arising from operating activities | -51,328,808.82 | -35,364,373.66 |
| II. Cash flows arising from investing activities: | ||
| Cash received from recovering investment | ||
| Cash received from investment income | ||
| Net cash received from disposal of fixed, |
| intangible and other long-term assets | ||
| Net cash received from disposal of subsidiaries and other units | ||
| Other cash received concerning investing activities | ||
| Subtotal of cash in-flow arising from investment activity | ||
| Cash paid for purchasing fixed, intangible and other long-term assets | 38,793.99 | |
| Cash paid for investment | 30,000.00 | |
| Net increase of mortgaged loans | ||
| Net cash received from subsidiaries and other units obtained | ||
| Other cash paid concerning investing activities | ||
| Subtotal of cash out-flow arising from investment activity | 68,793.99 | |
| Net cash flow arising from investment activities | -68,793.99 | |
| III. Cash flows arising from financing activities: | ||
| Cash received from absorbing investment | 9,750,000.00 | |
| Including: Cash received from absorbing minority shareholders’ investment by subsidiaries | ||
| Cash received from loans | ||
| Other cash received concerning financing activities | 12,098,051.76 | |
| Subtotal of cash in-flow arising from financing activity | 21,848,051.76 | |
| Cash paid for settling debts | ||
| Cash paid for dividend and profit distributing or interest paying | ||
| Including: Dividend and profit of minority shareholder paid by subsidiaries | ||
| Other cash paid concerning financing activities | ||
| Subtotal of cash out-flow arising from financing activity | ||
| Net cash flow arising from financing activities | 21,848,051.76 | |
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | ||
| V. Net increase of cash and cash equivalent | -29,549,551.05 | -35,364,373.66 |
| Add: Balance of cash and cash equivalents at the period -begin | 54,148,674.40 | 50,922,869.35 |
| VI. Balance of cash and cash equivalents at the period -end | 24,599,123.35 | 15,558,495.69 |
6. Cash Flow Statement of Parent Company
Unit: RMB/CNY
| Item | Semi-annual of2024 | Semi-annual of2023 |
| I. Cash flows arising from operating activities: | ||
| Cash received from selling commodities and providing labor services | 159,622,320.49 | 238,002,296.41 |
| Write-back of tax received | ||
| Other cash received concerning operating activities | 32,892,557.22 | 89,429,332.20 |
| Subtotal of cash inflow arising from | 192,514,877.71 | 327,431,628.61 |
| operating activities | ||
| Cash paid for purchasing commodities and receiving labor service | 22,193,155.15 | 128,040,000.00 |
| Cash paid to/for staff and workers | 2,061,971.12 | 648,889.48 |
| Taxes paid | 5,466,087.76 | 1,447,813.31 |
| Other cash paid concerning operating activities | 169,094,699.79 | 155,328,861.74 |
| Subtotal of cash outflow arising from operating activities | 198,815,913.82 | 285,465,564.53 |
| Net cash flow arising from operating activities | -6,301,036.11 | 41,966,064.08 |
| II. Cash flows arising from investing activities: | ||
| Cash received from recovering investment | ||
| Cash received from investment income | ||
| Net cash received from disposal of fixed, intangible and other long-term assets | ||
| Net cash received from disposal of subsidiaries and other units | ||
| Other cash received concerning investing activities | ||
| Subtotal of cash inflow from investing activities | ||
| Cash paid for purchasing fixed, intangible and other long-term assets | ||
| Cash paid for investment | 5,250,000.00 | 75,000,000.00 |
| Net cash received from subsidiaries and other units obtained | ||
| Other cash paid concerning investing activities | ||
| Subtotal of cash outflow from investing activities | 5,250,000.00 | 75,000,000.00 |
| Net cash flow arising from investment activities | -5,250,000.00 | -75,000,000.00 |
| III. Cash flows arising from financing activities: | ||
| Cash received from absorbing investment | ||
| Cash received from loans | ||
| Other cash received concerning financing activities | 12,098,051.76 | |
| Subtotal of cash inflow from financing activities | 12,098,051.76 | |
| Cash paid for settling debts | ||
| Cash paid for dividend and profit distributing or interest paying | ||
| Other cash paid concerning financing activities | ||
| Subtotal of cash outflow from financing activities | ||
| Net cash flow arising from financing activities | 12,098,051.76 | |
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | ||
| V. Net increase of cash and cash equivalents | 547,015.65 | -33,033,935.92 |
| Add: Balance of cash and cash equivalents at the period -begin | 13,378,843.17 | 40,403,702.70 |
| VI. Balance of cash and cash equivalents at the period -end | 13,925,858.82 | 7,369,766.78 |
7. Statement of Changes in Owners’ Equity (Consolidated)
Current Amount
Unit: RMB/CNY
| Item | Semi-annual of 2024 | ||||||||||||||
| Owners’ equity attributable to the parent Company | Minority interests | Total owner’ s equity | |||||||||||||
| Share capital | Other equity instrument | Capital public reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus public reserve | Provision of general risk | Retained profit | Other | Subtotal | |||||
| Preferred stock | Perpetual capital securities | Other | |||||||||||||
| I. The ending balance of the previous year | 689,184,933.00 | 779,554,450.36 | 32,673,227.01 | -1,192,651,364.21 | 308,761,246.16 | 639,908.03 | 309,401,154.19 | ||||||||
| Add: Changes of accounting policy | |||||||||||||||
| Error correction of the last period | |||||||||||||||
| Other | |||||||||||||||
| II. The beginning balance of the current year | 689,184,933.00 | 779,554,450.36 | 32,673,227.01 | -1,192,651,364.21 | 308,761,246.16 | 639,908.03 | 309,401,154.19 | ||||||||
| III. Increase/ Decrease in the period (Decrease is listed with “-”) | 5,717,642.69 | 5,717,642.69 | 9,540,386.19 | 15,258,028.88 | |||||||||||
| (i) Total comprehensi | 5,717,642.69 | 5,717,642.69 | -209,613.81 | 5,508,028.88 | |||||||||||
| ve income | |||||||||||||||
| (ii) Owners’ devoted and decreased capital | 9,750,000.00 | 9,750,000.00 | |||||||||||||
| 1.Common shares invested by shareholders | 9,750,000.00 | 9,750,000.00 | |||||||||||||
| 2. Capital invested by holders of other equity instruments | |||||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | |||||||||||||||
| 4. Other | |||||||||||||||
| (iii) Profit distribution | |||||||||||||||
| 1. Withdrawal of surplus reserves | |||||||||||||||
| 2. Withdrawal of general risk provisions | |||||||||||||||
| 3. Distribution for owners (or shareholders) | |||||||||||||||
| 4. Other | |||||||||||||||
| (iv) Carrying forward internal owners’ |
| equity | |||||||||||||||
| 1. Capital reserves conversed to capital (share capital) | |||||||||||||||
| 2. Surplus reserves conversed to capital (share capital) | |||||||||||||||
| 3. Remedying loss with surplus reserve | |||||||||||||||
| 4. Carry-over retained earnings from the defined benefit plans | |||||||||||||||
| 5. Carry-over retained earnings from other comprehensive income | |||||||||||||||
| 6. Other | |||||||||||||||
| (v) Reasonable reserve | |||||||||||||||
| 1. Withdrawal in the report period | |||||||||||||||
| 2. Usage in the report period |
| (vi) Others | |||||||||||||||
| IV. Balance at the end of the period | 689,184,933.00 | 779,554,450.36 | 32,673,227.01 | -1,186,933,721.52 | 314,478,888.85 | 10,180,294.22 | 324,659,183.07 |
Amount of the previous period
Unit: RMB/CNY
| Item | Semi-annual of2023 | ||||||||||||||
| Owners’ equity attributable to the parent Company | Minority interests | Total owner’ s equity | |||||||||||||
| Share capital | Other equity instrument | Capital public reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus public reserve | Provision of general risk | Retained profit | Other | Subtotal | |||||
| Preferred stock | Perpetual capital securities | Other | |||||||||||||
| I. The ending balance of the previous year | 689,184,933.00 | 778,824,470.95 | 32,673,227.01 | -1,210,553,312.45 | 290,129,318.51 | 14,718,231.05 | 304,847,549.56 | ||||||||
| Add: Changes of accounting policy | |||||||||||||||
| Error correction of the last period | |||||||||||||||
| Other | |||||||||||||||
| II. The beginning balance of the current year | 689,184,933.00 | 778,824,470.95 | 32,673,227.01 | -1,210,553,312.45 | 290,129,318.51 | 14,718,231.05 | 304,847,549.56 | ||||||||
| III. Increase/ Decrease in the | 4,862,298.90 | 4,862,298.90 | 1,074,761.06 | 5,937,059.96 | |||||||||||
| period (Decrease is listed with “-”) | |||||||||||||||
| (i) Total comprehensive income | 4,862,298.90 | 4,862,298.90 | 1,074,761.06 | 5,937,059.96 | |||||||||||
| (ii) Owners’ devoted and decreased capital | |||||||||||||||
| 1.Common shares invested by shareholders | |||||||||||||||
| 2. Capital invested by holders of other equity instruments | |||||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | |||||||||||||||
| 4. Other | |||||||||||||||
| (iii) Profit distribution | |||||||||||||||
| 1. Withdrawal of surplus reserves | |||||||||||||||
| 2. |
| Withdrawal of general risk provisions | |||||||||||||||
| 3. Distribution for owners (or shareholders) | |||||||||||||||
| 4. Other | |||||||||||||||
| (iv) Carrying forward internal owners’ equity | |||||||||||||||
| 1. Capital reserves conversed to capital (share capital) | |||||||||||||||
| 2. Surplus reserves conversed to capital (share capital) | |||||||||||||||
| 3. Remedying loss with surplus reserve | |||||||||||||||
| 4. Carry-over retained earnings from the defined benefit plans | |||||||||||||||
| 5. Carry- |
| over retained earnings from other comprehensive income | |||||||||||||||
| 6. Other | |||||||||||||||
| (v) Reasonable reserve | |||||||||||||||
| 1. Withdrawal in the report period | |||||||||||||||
| 2. Usage in the report period | |||||||||||||||
| (vi) Others | |||||||||||||||
| IV. Balance at the end of the period | 689,184,933.00 | 778,824,470.95 | 32,673,227.01 | -1,205,691,013.55 | 294,991,617.41 | 15,792,992.11 | 310,784,609.52 |
8. Statement of Changes in Owners’ Equity (Parent Company)
Current Amount
Unit: RMB/CNY
| Item | Semi-annual of 2024 | |||||||||||
| Share capital | Other equity instrument | Capital public reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus public reserve | Retained profit | Other | Total owner’ s equity | |||
| Preferred stock | Perpetual capital securities | Other | ||||||||||
| I. The ending balance of the previous year | 689,184,933.00 | 790,922,522.71 | 32,673,227.01 | -1,201,229,611.79 | 311,551,070.93 | |||||||
| Add: Changes of accounting policy | ||||||||||||
| Error correction of the last period | ||||||||||||
| Other | ||||||||||||
| II. The beginning balance of the current year | 689,184,933.00 | 790,922,522.71 | 32,673,227.01 | -1,201,229,611.79 | 311,551,070.93 | |||||||
| III. Increase/ Decrease in the period (Decrease is listed with “-”) | 3,612,133.74 | 3,612,133.74 | ||||||||||
| (i) Total comprehensive income | 3,612,133.74 | 3,612,133.74 | ||||||||||
| (ii) Owners’ devoted and decreased capital | ||||||||||||
| 1.Common shares invested by shareholders | ||||||||||||
| 2. Capital invested by holders of other equity instruments | ||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | ||||||||||||
| 4. Other | ||||||||||||
| (iii) Profit distribution | ||||||||||||
| 1. Withdrawal |
| of surplus reserves | ||||||||||||
| 2. Distribution for owners (or shareholders) | ||||||||||||
| 3. Other | ||||||||||||
| (iv) Carrying forward internal owners’ equity | ||||||||||||
| 1. Capital reserves conversed to capital (share capital) | ||||||||||||
| 2. Surplus reserves conversed to capital (share capital) | ||||||||||||
| 3. Remedying loss with surplus reserve | ||||||||||||
| 4. Carry-over retained earnings from the defined benefit plans | ||||||||||||
| 5. Carry-over retained earnings from other comprehensive income | ||||||||||||
| 6. Other | ||||||||||||
| (v) Reasonable reserve | ||||||||||||
| 1. Withdrawal in the report period | ||||||||||||
| 2. Usage in the report |
| period | ||||||||||||
| (vi) Others | ||||||||||||
| IV. Balance at the end of the period | 689,184,933.00 | 790,922,522.71 | 32,673,227.01 | -1,197,617,478.05 | 315,163,204.67 |
Amount of the previous period
Unit: RMB/CNY
| Item | Semi-annual of2023 | |||||||||||
| Share capital | Other equity instrument | Capital public reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus public reserve | Retained profit | Other | Total owner’ s equity | |||
| Preferred stock | Perpetual capital securities | Other | ||||||||||
| I. The ending balance of the previous year | 689,184,933.00 | 778,824,470.95 | 32,673,227.01 | -1,215,381,715.79 | 285,300,915.17 | |||||||
| Add: Changes of accounting policy | ||||||||||||
| Error correction of the last period | ||||||||||||
| Other | ||||||||||||
| II. The beginning balance of the current year | 689,184,933.00 | 778,824,470.95 | 32,673,227.01 | -1,215,381,715.79 | 285,300,915.17 | |||||||
| III. Increase/ Decrease in the period (Decrease is listed with “-”) | 912,326.70 | 912,326.70 | ||||||||||
| (i) Total comprehensive income | 912,326.70 | 912,326.70 | ||||||||||
| (ii) Owners’ devoted and decreased capital | ||||||||||||
| 1.Common shares invested by shareholders | ||||||||||||
| 2. Capital invested by holders of other equity instruments | ||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | ||||||||||||
| 4. Other | ||||||||||||
| (iii) Profit distribution | ||||||||||||
| 1. Withdrawal of surplus reserves | ||||||||||||
| 2. Distribution for owners (or shareholders) | ||||||||||||
| 3. Other | ||||||||||||
| (iv) Carrying forward internal owners’ equity | ||||||||||||
| 1. Capital reserves conversed to capital (share capital) | ||||||||||||
| 2. Surplus reserves conversed to capital (share capital) | ||||||||||||
| 3. Remedying loss with surplus reserve | ||||||||||||
| 4. Carry-over |
| retained earnings from the defined benefit plans | ||||||||||||
| 5. Carry-over retained earnings from other comprehensive income | ||||||||||||
| 6. Other | ||||||||||||
| (v) Reasonable reserve | ||||||||||||
| 1. Withdrawal in the report period | ||||||||||||
| 2. Usage in the report period | ||||||||||||
| (vi) Others | ||||||||||||
| IV. Balance at the end of the period | 689,184,933.00 | 778,824,470.95 | 32,673,227.01 | -1,214,469,389.09 | 286,213,241.87 |
III. Basic information
1. Company Profile
According to the Approval Document SFBF (1991) No. 888 issued by the People’s Government of Shenzhen,Shenzhen China Bicycle Company (Holdings) Co., Ltd. (hereinafter referred to as the CBC) was reincorporated asthe company limited by shares in November 1991. On 28 December 1991, upon the Approval DocumentSRYFZ(1991) No. 119 issued by Shenzhen Special Economic Zone Branch of the People’s Bank of China, theCompany got listed on Shenzhen Stock Exchange. Registered of the Company amounted as 689,184,933.00 Yuan.Legal representative: Wang ShenghongLocation: No. 3008, Buxin Road, Luohu District, ShenzhenOffice address: 8/F Shuibei Jinzuo Building, No.89 Beili North Road, Cuizhu Street, Luohu District, ShenzhenCertificate for Uniform Social Credit Code: 914403006188304524。
2. Business nature and main operation activities
Main business activities: Research & development of the bicycles, electric bicycles, electric motorcycles,motorcycles, electric tricycles, electric four-wheeler, children's bicycles, exercise bikes, sports equipment,mechanical products, toys, electric toys, electronic products, new energy equipment and storage equipment(lithium batteries, batteries, etc.), household appliances and spare parts, and electronic components; wholesale,retail, import and export and related supporting business of above-mentioned products (excluding commoditiessubject to state trade management, handling the application according to the relevant national regulations forcommodities involving quotas, license management and other special provisions and management,); fine chemicalproducts (excluding dangerous goods), wholesale and retail of carbon fiber composite materials; technologydevelopment of computer software, transfer of self-developed technological achievements, and providing relevanttechnical information consultation; own property leasing; property management. (The above projects do notinvolve special administrative measures for the implementation access of national regulations, and those involvingrestricted projects and pre-existing administrative licenses must obtain the pre-existing administrative licensingdocuments before operation.) Purchase and sale of gold products, platinum jewelry, palladium jewelry, K-goldjewelry, silver jewelry, inlaid jewelry, jewelry, jade ware, gem-and-jade products, clocks and watches, preciousmetal materials, diamonds, jadeite, crafts (except ivory and its products), calligraphy and painting, collection(except for antiques, cultural relics, and items prohibited by national laws and administrative regulations).Main products or services currently offered are: Gold jewelry, EMMELLE bicycles and electrical bicycles,lithium battery material.
3.Actual controller of the Company
Actual controller of the Company is Wang Shenghong, The controlling shareholder is Wansheng IndustrialHolding (Shenzhen) Co., Ltd.,who held or controlled 20% shares of the Company.
4. Release of the financial report
The Financial Report was approved to report at the 14
th Session of 11
th
BOD of CBC on August 23, 2024.
IV. Compilation Basis of Financial Statement
1. Compilation Basis
On the basis of going concern, the Company recognizes and measures according to the actual transactionsand events, the Accounting Standards for Business Enterprises-Basic Standards and other specific accountingstandards, application guidelines, standard interpretation and other relevant provisions (hereinafter referred to asthe Accounting Standards for Business Enterprises), and on this basis, it compiles the financial statements incombination with the provisions of the No.15 Rules on Information Disclosure and Compilation of CompaniesOffering Securities to the Public - General Provisions on Financial Reports (revised in 2023) issued by ChinaSecurities Regulatory Commission.
2. Going concern
The Company has the ability to continue to operate for at least 12 months from the end of this reporting period,and there is no major issue affecting its ability to continue to operate.V. Main accounting policy and Accounting EstimateTips for specific accounting policy and estimate:
Nil
1. Declaration on compliance with accounting standards for business enterprise
The financial statements prepared by the Company meet the requirements of the Accounting Standards forBusiness Enterprises, and truly and completely reflect the Company's financial status, operating results, changesin owners' equity and cash flow and other relevant information.
2. Accounting period
Calendar year is the accounting period for the CBC, which is starting from 1 January to 31 December.
3. Business cycles
The Company takes 12 months as a business cycle.
4. Book-keeping currency
The CBC takes RMB as the standard currency for bookkeeping.
5.Determination method and selection basis of importance standard
?Applicable □Not applicable
| Item | Criterion of importance |
| Material receivables with bad debt provision accrued individually | Commercial acceptance bills receivable, accounts receivable and other receivables with a single amount exceeding RMB 5 million (inclusive) |
| Material amount recovered or reversed from bad debt provision of receivables in the current period | The single amount exceeds RMB 5 million (inclusive) |
| Write-off of Important material receivables in the current period | The single amount exceeds RMB 5 million (inclusive) |
| Material prepayments with an age of more than one year | The single amount exceeds RMB 5 million (inclusive) |
| Material accounts payable with an age of over 1 year | The single amount exceeds RMB 5 million (inclusive) |
| Material contractual liabilities with an age of more than 1 year | The single amount exceeds RMB 5 million (inclusive) |
| Material other payables with an age of more than 1 year | The single amount exceeds RMB 5 million (inclusive) |
| Material construction in progress | Construction in progress with a single amount exceeding RMB 5 million (inclusive) |
| Material commitments | Commitments involving an amount of more than 10% of the total profit and more than RMB 5 million (inclusive) |
| Material contingencies | Contingencies involving an amount of more than 10% of the total profit and more than RMB 5 million (inclusive) |
| Material matters after the balance sheet date | Matters after the balance sheet date involving an amount exceeding 10% of the total profit and exceeding RMB 5 million (inclusive) |
6. Accounting treatment for business combinations under the same control and those not under the samecontrol
1. Business merger under the same control: The assets and liabilities acquired by the Company in businessmerger are measured according to the book value of the assets and liabilities of the merged party (including thegoodwill formed by the acquisition of the merged party by the ultimate controlling party) in the consolidatedfinancial statements of the ultimate controlling party on the date of merger. For the difference between the bookvalue of the net assets obtained in the merger and the book value of the merger consideration paid (or the totalface value of the issued shares), adjust the capital premium or share capital premium in the capital reserve. Ifthe capital premium or share capital premium in the capital reserve is insufficient to offset, adjust the retainedincome.
2. Business merger not under the same control: The assets paid, liabilities incurred or assumed by the Companyas the consideration for business merger are measured at fair value on the date of purchase, and the differencebetween fair value and book value is included in the current profits and losses. The Company recognizes thedifference between the merger cost and the fair value share of the net identifiable assets of the acquiree obtainedin the merger as goodwill; For the difference between the merger cost and the fair value share of the netidentifiable assets of the acquiree (which is larger than the merger cost), it reviews the fair values of the assetsand liabilities obtained in the merger, the non-cash assets as the merger consideration or the equity securitiesissued, and the review results show that the determination of the fair values of the determined identifiable assetsand liabilities is appropriate. The difference between the business merger cost and the fair value share of the netidentifiable assets of the acquiree (which is larger than the business merger cost) is included in the non-operating income in the current merger period.The business merger not under the same control is realized step by step through multiple transactions, andthe merger cost is the sum of the consideration paid on the date of purchase and the fair value of the equity ofthe acquiree held before the date of purchase; The equity of the purchased party held before the date of purchaseshall be re-measured according to the fair value on the date of purchase, and the difference between the fairvalue and its book value shall be included in the current investment income. Other comprehensive income of thelong-term equity investment of the acquiree held before the date of purchase under the accounting by equitymethod shall be subject to accounting treatment on the same basis as the direct disposal of relevant assets orliabilities by the investee. Changes in other shareholders' equity except net profits and losses, othercomprehensive income and profit distribution shall be converted into current profits and losses on the date ofpurchase. For other equity instrument investments of the acquiree held before the date of purchase, the changesin fair value of the equity instrument investments accumulated in other comprehensive income before the dateof purchase are transferred to retained profits and losses.
3. Disposal of related expenses in business merger: Intermediary expenses such as audit, legal services,evaluation and consultation and other related management expenses incurred for business merger are includedin current profits and losses when incurred; The transaction costs of equity securities or debt securities issued asthe merger consideration are included in the initial recognition amount of equity securities or debt securities.
7. Criteria for control and preparation method of consolidated financial statements
1. Criteria for control and preparation scope of consolidated statements
Control means that the investor has the power over the investee, enjoys variable returns by participating inthe related activities of the investee, and has the ability to influence the amount of returns by using the powerover the investee. As for whether to control the investee, the Company's criterion factors include:
(1) Have the power over the investee and the ability to lead the related activities of the investee;
(2) Be entitled to variable returns to the investee;
(3) Have the ability to use the power over the investee to influence its return amount.
Unless there is conclusive evidence that the Company cannot lead the related activities of the investee, theCompany has the power over the investee if:
(1) It holds more than half of the voting rights of the investee;
(2) It holds half or less of the voting rights of the investee, but controls more than half of the voting rightsthrough agreements with other voting rights holders.
If the Company holds half or less of the voting rights of the investee, but after comprehensiveconsideration of the following facts and circumstances, it is judged that the voting rights held are sufficient tolead the relevant activities of the investee, it is deemed that the Company has power over the investee:
(1) The size of the voting rights held relative to the voting rights held by other investors, and the degree ofdispersion of the voting rights held by other investors;
(2) The potential voting rights of the investee held by other investors, such as convertible corporate bondsand executable warrants;
(3) Other contractual rights;
(4) Other relevant facts and circumstances such as the past voting rights of the investee.
The Company evaluates the variability of returns based on the nature of contractual arrangements ratherthan the legal form of returns.
If the Company exercises the decision-making power as the main responsible person, or if other partieshave the decision-making power and other parties exercise the decision-making power as the agents of theCompany, it shows that the Company controls the investee.
Once the changes in relevant facts and circumstances lead to changes in the relevant factors involved inthe definition of control, the Company will re-evaluate.
The scope of consolidation of the consolidated financial statements is determined on the basis of control,including not only subsidiaries determined by voting rights (or similar rights) themselves or in combinationwith other arrangements, but also structured entities determined by one or more contractual arrangements.
2. Merger procedure
The consolidated financial statements are based on the financial statements of the Company and itssubsidiaries, and are prepared according to other relevant information.
The Company unifies the accounting policies and accounting periods adopted by its subsidiaries, so thatthe accounting policies and accounting periods adopted by its subsidiaries are consistent with those adopted bythe Company. When preparing consolidated financial statements, it follows the principle of materiality to offset
the internal exchanges, internal transactions and equity investment projects between the parent company and thesubsidiaries, and between the subsidiaries.
The equity and profit and loss attributable to minority shareholders of the subsidiaries are listed separatelyunder the item of the owners' equity in the consolidated balance sheet and under the item of net profit in theconsolidated income statement. The current loss shared by minority shareholders of a subsidiary exceeds thebalance formed by minority shareholders' share in the initial owners' equity of the subsidiary, thus offsettingminority shareholders' equity.
(1) Increase of subsidiaries and businesses
During the reporting period, when preparing the consolidated balance sheet due to the business mergerunder the same control and the subsidiaries and businesses increased, the opening balance of the consolidatedbalance sheet is adjusted; When preparing the income statement, the income, expenses and profits of thesubsidiary and business merger from the beginning of the current period to the end of the reporting period areincluded in the consolidated income statement; When the cash flow statement is consolidated, the cash flows ofthe subsidiary and the business combination from the beginning of the current period to the end of the reportingperiod are included in the consolidated cash flow statement; At the same time, the relevant items of thecomparative statements shall be adjusted, as if the merged reporting entity had existed since the ultimatecontrolling party started to control.
During the reporting period, when preparing the consolidated balance sheet for subsidiaries and businessesincreased due to business merger not under the same control or other means, the opening balance of theconsolidated balance sheet will not be adjusted. When preparing the income statement, the income, expensesand profits of the subsidiary and the business from the date of purchase to the end of the reporting period shallbe included in the consolidated income statement. When preparing the cash flow statement, the cash flow of thesubsidiary from the date of purchase to the end of the reporting period shall be included in the consolidated cashflow statement.
The Company prepares consolidated financial statements based on the amount of identifiable assets,liabilities and contingent liabilities determined on the basis of the fair value on the date of purchase reflected inthe individual financial statements of subsidiaries at the current balance sheet date. The difference between themerger cost and the fair value share of the net identifiable assets of the acquiree obtained in the merger shall berecognized as goodwill. The difference between the merger cost and the fair value share of the net identifiableassets of the acquiree obtained in the merger shall be included in the current profits and losses after review.
If the business merger not under the same control is realized step by step through multiple transactions, inthe consolidated financial statements, the equity of the acquiree held before the date of purchase shall be re-measured according to the fair value of the equity on the date of purchase, and the difference between the fairvalue and its book value shall be included in the current investment income. Other comprehensive income of thelong-term equity investment of the acquiree held before the date of purchase under the accounting by equitymethod shall be subject to accounting treatment on the same basis as the direct disposal of relevant assets orliabilities by the investee. Changes in other shareholders' equity except net profits and losses, othercomprehensive income and profit distribution shall be converted into current profits and losses on the date ofpurchase. For other equity instrument investments of the acquiree held before the date of purchase, the changesin fair value of the equity instrument investments accumulated in other comprehensive income before the dateof purchase are transferred to retained profits and losses.
(2) Disposal of subsidiaries and businesses
A. General disposal methods
During the reporting period, if the Company disposes of its subsidiaries and businesses, the income,expenses and profits of the subsidiaries and businesses from the beginning to the disposal date will be includedin the consolidated income statement; The cash flow of the subsidiaries and businesses from the beginning tothe disposal date will be included in the consolidated cash flow statement.If the Company loses control of its original subsidiaries due to the disposal of some equity investments,the remaining equity shall be re-measured according to its fair value on the date of loss of control in theconsolidated financial statements. The sum of the consideration obtained from the disposal of the equity and thefair value of the remaining equity, minus the difference between the share of the net assets that should becontinuously calculated by the original subsidiary from the date of purchase or the date of merger according tothe original shareholding ratio, is included in the current investment income when the control right is lost, andthe goodwill is also offset. Other comprehensive income related to the original subsidiary's equity investmentshall be subject to accounting treatment on the same basis as the subsidiary's direct disposal of relevant assets orliabilities when it loses control. Shareholders' equity recognized due to changes in other shareholders' equityrelated to the original subsidiary except net profit and loss, other comprehensive income and profit distributionshall be converted into current profits and losses when it loses control.B. Dispose of equity step by step until loss of controlIf the enterprise disposes of its equity investment in a subsidiary step by step through multiple transactionsuntil it loses control, if the transaction of disposing of its equity investment in a subsidiary until the loss ofcontrol is a package transaction, it shall treat each transaction as a transaction of disposing of the subsidiary andloss of control; However, the difference between the price of each disposal before the loss of control and theshare of the subsidiary's net assets corresponding to the disposal investment shall be recognized as othercomprehensive income in the consolidated financial statements, and transferred to the current profits and losseswhen the control is lost.
The terms, conditions and economic impact of various transactions dealing with equity investment insubsidiaries meet one or more of the following conditions, which usually indicates that multiple transactionsshall be subject to accounting treatment as a package transaction:
(A) These transactions are concluded at the same time or under the consideration of mutual impact;
(B) These transactions as a whole can achieve a complete commercial result;
(C) The occurrence of one transaction depends on the occurrence of at least one other transaction;
(D) A transaction is uneconomical when considered alone, but it is economical when considered togetherwith other transactions.
(3) Purchase of minority shares of the subsidiaries
The Company shall adjust the capital premium or share capital premium in the capital reserve in theconsolidated balance sheet for the difference between the newly acquired long-term equity investment due tothe purchase of minority shares and the share of net identifiable assets that should be continuously calculated bythe subsidiaries from the date of purchase (or date of merger) according to the new shareholding ratio. If thecapital premium or share capital premium in the capital reserve is insufficient to offset, the retained incomeshall be adjusted.
(4) Partial disposal of equity investment in subsidiaries without loss of control
For the difference between the disposal price obtained from the partial disposal of the long-term equityinvestment in the subsidiary and the share of the net assets of the subsidiary that is continuously calculated fromthe date of purchase or the date of merger corresponding to the disposal of the long-term equity investment,adjust the capital premium or share capital premium in the capital reserve in the consolidated balance sheet. If
the capital premium or share capital premium in the capital reserve is insufficient to offset, adjust the retainedincome.
8. Classification of joint venture arrangement and accounting treatment for joint controlA joint venture arrangement refers to an arrangement controlled jointly by two or more participants. Jointventure arrangements are divided into joint operation and joint ventures.
1. Joint operation refers to the joint venture arrangement in which the Company is entitled to the assetsrelated to the arrangement and undertakes the liabilities related to the arrangement. The Company recognizesthe following items related to the share of interests in joint operation:
(1) Recognize the assets held separately, and recognize the assets held jointly according to their shares;
(2) Recognize the liabilities undertaken separately, and recognize the liabilities jointly undertakenaccording to their shares;
(3) Recognize the income generated from the sale of its share of joint operation output;
(4) Recognize the income generated by the sale of output in the joint operation according to its share;
(5) Recognize the expenses incurred separately, and recognize the expenses incurred in joint operationaccording to their shares.
2. Joint venture refers to a joint venture arrangement in which the Company has rights only to the netassets of the arrangement. The Company shall carry out accounting treatment for the investment of the jointventure in accordance with the provisions on accounting by equity method for long-term equity investment.
9. Recognition of cash and cash equivalents
When preparing the cash flow statement, the Company will recognize the cash on hand and the depositsthat can be used for payment at any time as cash. An investment with short term (usually due within threemonths from the date of purchase), strong liquidity, easy conversion into known cash and little risk of valuechange will be determined as a cash equivalent. Restricted bank deposits will not be regarded as cash and cashequivalents in the cash flow statement.
10. Foreign currency transaction and financial statement conversion
1. Foreign currency business
When foreign currency business occurs, the amount of foreign currency is converted into RMB forrecording according to the spot exchange rate on the date of transaction, and foreign currency monetary itemsand foreign currency non-monetary items are treated in the following ways at the end of the period:
(1) Foreign currency monetary items are converted at the spot exchange rate on the balance sheet date.Exchange differences arising from the difference between the spot exchange rate on the balance sheet date andthe initial recognition or the spot exchange rate on the previous balance sheet date are included in the currentprofits and losses.
(2) Foreign currency non-monetary items measured at historical cost are still converted at the spotexchange rate on the date of transaction, and the amount of their recording currency will not be changed.
(3) Foreign currency non-monetary items measured at fair value shall be converted at the spot exchangerate on the fair value determination date, and the resulting exchange gains and losses shall be included in thecurrent profits and losses or other comprehensive income.
(4) Foreign currency exchange gains and losses, except the exchange gains and losses arising fromforeign currency special borrowing related to the purchase, construction or production of assets eligible for
capitalization, are included in the cost of assets eligible for capitalization before the assets reach the scheduledserviceable or saleable state, and the rest are included in the current profits and losses.
2. Conversion in foreign currency financial statements
(1) Assets and liabilities in the balance sheet are converted at the spot exchange rate on the balance sheetdate; Except for the "undistributed profit", other items of owners' equity are converted at the spot exchange rateat the time of occurrence.
(2) The income and expenses in the income statement are converted at the approximate exchange rate ofthe spot exchange rate on the date of transaction.
(3) The conversion difference of foreign currency financial statements generated according to the aboveconversion is included in other comprehensive income. When disposing of overseas operations, the conversiondifference of foreign currency financial statements related to the overseas operations shall be transferred fromthe owners' equity to the current profits and losses.
(4) The cash flow statement is converted by the approximate exchange rate of the spot exchange rate onthe date of cash flow occurrence. As a reconciliation item, the influence of exchange rate changes on cash islisted separately in the cash flow statement.
11. Financial instruments
When the Company becomes a party to the financial instrument contract, it recognizes a financial asset orfinancial liability related to it.
1. Classification, recognition basis and measurement method of financial assets
According to the business model of financial assets under management and the contractual cash flowcharacteristics of financial assets, the Company divides financial assets into three categories: financial assetsmeasured by amortized cost, financial assets measured by fair value with its changes included in othercomprehensive income, and financial assets measured by fair value with its changes included in current profitsand losses.
Financial assets are measured at fair value upon initial recognition. For financial assets measured at fairvalue with its changes included in the current profits and losses, relevant transaction costs are directly includedin the current profits and losses; For financial assets of other types, relevant transaction costs are included in theinitial recognition amount. If the accounts receivable initially recognized by the Company do not containsignificant financing components as defined in the Accounting Standards for Business Enterprises No.14-Income, or the financing components in contracts with a duration of no more than one year are not consideredaccording to the provisions of Accounting Standards for Business Enterprises No.14-Income, the initialmeasurement shall be made according to the transaction price of the consideration expected to be charged.
(1) Financial assets measured in amortized cost
The Company's business model of managing such financial assets is to collect contract cash flow, and thecash flow generated on a specific date is only for the payment of principal and interest based on the unpaidprincipal amount. For such financial assets, the Company adopts the effective interest rate method forsubsequent measurement according to amortized cost, and the gains or losses arising from amortization orimpairment are included in the current profits and losses.
(2) Financial assets measured at fair value with changes included in other comprehensive income
The Company's business model of managing such financial assets is to collect contract cash flow and sellit, and the cash flow generated on a specific date is only for the payment of principal and interest based on theunpaid principal amount. Such financial assets are measured at fair value with changes included in other
comprehensive income, but impairment losses or gains, exchange gains and losses and interest incomecalculated according to the effective interest rate method are included in current profits and losses.For the investment in non-transactional equity instruments, the Company can irrevocably designate it as afinancial asset measured at fair value with changes included in other comprehensive income at the initialrecognition. The designation is made on the basis of a single investment, and the relevant investment conformsto the definition of equity instrument from the issuer's point of view. The Company includes the relevantdividend income of such financial assets in the current profits and losses, and the changes in fair value in othercomprehensive income. When the financial asset is derecognized, the accumulated gains or losses previouslyincluded in other comprehensive income will be transferred from other comprehensive income to retainedincome and will not be included in the current profits and losses.
(3) Financial assets measured at fair value with changes included in the current profits and lossesExcept for the above financial assets measured in amortized cost and the financial assets measured at fairvalue with changes included in other comprehensive income, the Company classifies all other financial assets asfinancial assets measured at fair value with changes included in current profits and losses. In addition, at thetime of initial recognition, in order to eliminate or significantly reduce the accounting mismatch, the Companydesignated some financial assets as the financial assets measured at fair value with changes included in thecurrent profits and losses. Such financial assets are subsequently measured at fair value, with changes in fairvalue included in current profits and losses.
2. Classification, recognition basis and measurement method of financial liabilitiesThe Company's financial liabilities are classified into financial liabilities measured at fair value withchanges included in current profits and losses and other financial liabilities at initial recognition. For financialliabilities measured at fair value with changes included in the current profits and losses, the related transactioncosts are directly included in the current profits and losses, and the related transaction costs of other financialliabilities are included in their initial recognition amount.
(1) Financial liabilities measured at fair value with changes included in the current profits and lossesFinancial liabilities measured at fair value with changes included in current profits and losses includetransactional financial liabilities (including derivatives belonging to financial liabilities) and financial liabilitiesdesignated as measured at fair value with changes included in current profits and losses.Transactional financial liabilities (including derivatives belonging to financial liabilities) are subsequentlymeasured at fair value, and changes in fair value are included in current profits and losses, except those relatedto hedging accounting.For financial liabilities that are designated as being measured at fair value with changes included incurrent profits and losses at the time of initial recognition, the changes in fair value caused by changes in theCompany's own credit risk are included in other comprehensive income, and when the liability is derecognized,the accumulated changes in its fair value caused by changes in its own credit risk included in othercomprehensive income are transferred to retained income. Other changes in fair value are included in currentprofits and losses. If the accounting mismatch in profit and loss will be caused or enlarged by handling theimpact of the changes in credit risk of these financial liabilities in the above way, the Company will include allthe gains or losses of the financial liabilities (including the amount affected by the changes in the enterprise'scredit risk) in the current profits and losses.
(2) Other financial liabilities
Other financial liabilities, except those caused by the transfer of financial assets and financial guaranteecontracts that do not meet the conditions for derecognition or continue to be involved in the transferred financial
assets, are classified as financial liabilities measured in amortized cost and subsequently measured in amortizedcost. The gains or losses arising from derecognition or amortization are included in the current profits and losses.
3. Methods for determining the fair value of financial assets and financial liabilitiesThe fair value of financial instruments with an active market shall be determined by the quotation in theactive market. The fair value of financial instruments without active market shall be determined by valuationtechnology. At the time of valuation, the Company adopts the valuation technology that is applicable in thecurrent situation and supported by sufficient available data and other information, selects the input values thatare consistent with the characteristics of assets or liabilities considered by market participants in the transactionof relevant assets or liabilities, and gives priority to the relevant observable input values. Unobservable inputvalues can only be used if the relevant observable input values are unavailable or impracticable.
4. Recognition basis and measurement method for transfer of financial assets
Recognition for transfer of financial assets
| Circumstances | Recognition results |
| Almost all risks and rewards in the ownership of financial assets are transferred | The financial assets are derecognized (new assets/liabilities are recognized) |
Almost all risks andrewards in the ownership offinancial assets are neithertransferred nor retained
| Almost all risks and rewards in the ownership of financial assets are neither transferred nor retained | The control of financial assets is given up | |
| The control of financial assets is not given up | The relevant assets and liabilities is recognized according to the extent of continuing involvement in the transferred financial assets | |
| Almost all risks and rewards in the ownership of financial assets are retained | Continue to recognize the financial assets and recognize the received consideration as financial liabilities | |
The Company divides the transfer of financial assets into the overall transfer and partial transfer offinancial assets.
(1) If the overall transfer of financial assets meets the conditions for derecognition, the difference betweenthe following two amounts shall be included in the current profits and losses: the book value of the transferredfinancial assets on the derecognition date; The sum of the consideration received for the transfer of financialassets and the cumulative amount of changes in fair value that were originally directly included in othercomprehensive income (the financial assets involved in the transfer are those classified as financial assetsmeasured at fair value with changes included in other comprehensive income in Article 18 of AccountingStandards for Business Enterprises No.22-Recognition and Measurement of Financial Instruments).
(2) If a part of the financial assets is transferred, and the transferred part as a whole meets the conditionsfor derecognition, the book value of the whole financial assets before the transfer shall be allocated between thederecognition part and the continued recognition part (in this case, the retained service assets shall be regardedas part of continued recognition of financial asset) according to their respective relative fair values on the dateof transfer, and the difference between the following two amounts shall be included in the current profits andlosses: the book value of the derecognition part on the derecognition date; The sum of the considerationreceived for the derecognition part (including all new assets acquired minus all new liabilities assumed) and thecorresponding derecognition amount in the accumulated amount of changes in fair value originally included inother comprehensive income (the financial assets involved in partial transfer are those classified as financialassets measured at fair value with changes included in other comprehensive income in Article 18 of AccountingStandards for Business Enterprises No.22-Recognition and Measurement of Financial Instruments).
If the transfer of financial assets does not meet the conditions for derecognition, the whole transferredfinancial assets shall be continuously recognized, and the received consideration shall be recognized as afinancial liability.
5. Conditions for derecognition of financial liabilities
If the current obligations of financial liabilities(or part of them) have been discharged, the financialliabilities (or part of them) shall be derecognized. If the following conditions exist:
(1) If the Company transfers the assets used to pay financial liabilities to an institution or establishes atrust, and the obligation of debt payment still exists, it shall not derecognize the financial liabilities.
(2) The Company (the borrower) and the lender sign an agreement to replace the original financialliabilities (or part of them) by taking on new financial liabilities, and the contractual terms are essentiallydifferent. The Company shall derecognize the original financial liabilities (or part of them) and recognize a newfinancial liability at the same time.
If the financial liabilities (or part of them) are derecognized, the Company will record the differencebetween the book value and the consideration paid (including the transferred non-cash assets or liabilities) intothe current profits and losses.
6. Impairment of financial assets
(1) Recognition method of impairment provision
The Company conducts impairment accounting treatment on financial assets (including receivables)measured in amortized cost, debt instrument investment and lease receivables measured at fair value withchanges included in other comprehensive income on the basis of expected credit losses, and recognizes the lossprovisions. In addition, for contract assets, loan commitments and financial guarantee contracts, impairmentprovisions are also accrued and impairment losses are recognized in accordance with the accounting policiesdescribed in this section.
Expected credit loss refers to the weighted mean of credit loss of financial instruments weighted by therisk of default. Credit loss refers to the difference between all contracted cash flows that the Companydiscounted at the original actual interest rate and all cash flows that it is expected to receive, that is, the presentvalue of all cash shortages.
Except for the purchased or originated financial assets with credit impairment, the Company evaluateswhether the credit risk of relevant financial assets has increased significantly since the initial recognition oneach balance sheet date. If the credit risk has not increased significantly since the initial recognition. it is in thefirst stage, and the Company will measure the loss provision according to the amount equivalent to the expectedcredit loss of the financial asset in the next 12 months; If the credit risk has increased significantly since theinitial recognition but with no credit impairment, it is in the second stage, and the Company will measure theloss provision according to the amount equivalent to the expected credit loss of the financial asset during thewhole duration; If the financial asset has suffered credit impairment since its initial recognition, it is in the thirdstage, and the Company will measure the loss provision according to the amount equivalent to the expectedcredit loss of the financial asset in the whole duration. When evaluating the expected credit loss, the Companyconsiders the reasonable and well-founded information, including forward-looking information, about pastevents, current situation and future economic situation prediction that can be obtained on the balance sheet datewithout unnecessary extra cost or effort.
The expected credit loss in the next 12 months refers to the expected credit loss caused by financial assetdefault events that may occur within 12 months after the balance sheet date (if the expected duration of financialassets is less than 12 months, within the expected duration), which is a part of the expected credit loss in thewhole duration.
For financial instruments with low credit risk on the balance sheet date, the Company assumes that thecredit risk has not increased significantly since the initial recognition, and chooses to measure the loss provisionaccording to the expected credit loss in the next 12 months.
For the financial assets in the first and second stages and with low credit risk, the Company calculates theinterest income according to the book balance without deducting the impairment provision and the actualinterest rate. For the financial assets in the third stage, the interest income shall be calculated according to thebook balance minus the amortized cost and the actual interest rate after the impairment provision has beenaccrued.
(2) Financial asset with impairment
When the Company anticipates that one or more events that have an adverse effect on the future cash flowof a financial asset occur, the financial asset becomes a financial asset with credit impairment. Evidence ofcredit impairment of financial assets includes the following observable information:
A. The issuer or the debtor has major financial difficulties;
B. The debtor has breached the contract, such as default or overdue payment of interest or principal;
C. The creditor makes concessions to the debtor that it will not make under any other circumstances due toeconomic or contractual considerations related to its financial difficulties;
D. The debtor is likely to go bankrupt or carry out other financial restructuring;
E. The financial difficulties of the issuer or debtor lead to the disappearance of the active market of thefinancial asset;
F. A financial asset is purchased or originated at a large discount, which reflects the fact that credit losshas occurred.
Credit impairment of financial assets may be caused by the joint action of multiple events, not necessarilyby an event that can be identified separately.
(3) Financial assets with credit impairment purchased or originated
For the purchased or originated financial assets with credit impairment, the Company only recognizes thecumulative change of expected credit loss in the whole duration after initial recognition as loss provision on thebalance sheet date. On each balance sheet date, the change amount of expected credit loss during the wholeduration is included in the current profits and losses as impairment loss or gain. Even if the expected credit lossdetermined on the balance sheet date is less than the amount of the expected credit loss reflected by theestimated cash flow at the time of initial recognition, the favorable change of expected credit loss will berecognized as impairment gain.
(4) Criteria for judging significant increase in credit risk
If the default probability of a financial asset in the estimated duration determined on the balance sheet dateis significantly higher than that in the estimated duration determined at the initial recognition, it indicates thatthe credit risk of the financial asset is significantly increased. Except in special circumstances, the Companyuses the change of default risk in the next 12 months as a reasonable estimate of the change in default risk in thewhole duration to determine whether the credit risk has increased significantly since the initial recognition.
(5) Method of evaluating the expected credit loss of financial assets
The Company evaluates the expected credit loss of financial assets based on individual and combineditems. It individually evaluates the credit risk of financial assets with significantly different credit risks, such as:
receivables from related parties; accounts receivable from government agencies and units; and receivables withobvious signs that the debtor is likely to be unable to fulfill the repayment obligations.
Except for financial assets whose credit risks are individually evaluated, the Company divides financialassets into different groups based on common risk characteristics, and evaluates the credit risks on the basis ofcombination.
(6) Accounting treatment method for impairment of financial assets
The Company calculates the expected credit losses of various financial assets on the balance sheet date,and the resulting increase or reversal amount of loss provision is included in the current profits and losses asimpairment losses or gains.
If the Company actually suffers from credit losses, and the relevant financial assets are determined to beirrecoverable and approved for write-off, the book balance of the financial assets will be directly written down.If the financial assets written down are recovered later, they will be included in the current profits and losses ofrecovery as the reversal of impairment losses.
7. Financial guarantee contract
A financial guarantee contract refers to a contract in which the issuer pays a certain amount to the contractholder who has suffered losses when the debtor fails to repay the debt according to the original or revised termsof the debt instrument at maturity. The financial guarantee contract shall be measured at fair value upon initialrecognition. For the financial guarantee contract for a financial liability not designated as being measured at fairvalue with changes included into the current profits and losses, after the initial recognition, subsequentmeasurement shall be made according to the higher of the expected credit loss provision amount determined onthe balance sheet date and the balance of the initial recognition amount after deducting the accumulatedamortization amount determined according to the income recognition principle.
8. Offset of financial assets and financial liabilities
Financial assets and financial liabilities are listed separately in the balance sheet without mutual offset.However, if the following conditions are met at the same time, the net amount after mutual offset shall be listedin the balance sheet:
(1) The Company has the legal right to offset the recognized financial assets and financial liabilities, andsuch legal right is now enforceable;
(2) The Company plans to settle accounts by netting, or realize the financial assets and pay off thefinancial liabilities at the same time.
9. Equity instruments
Equity instruments refer to contracts that can prove that the Company has residual interests in assets afterdeducting all liabilities. The issuance (including refinancing), repurchase, sale or cancellation of equityinstruments by the Company are treated as changes in equity. The Company does not recognize changes in thefair value of equity instruments. Transaction costs related to equity transactions are deducted from equity.
Various distributions (excluding stock dividends) made by the Company to holders of equity instrumentsare used as profit distribution to reduce the owners' equity. The stock dividends distributed do not affect thetotal owners' equity.
12. Note receivable
The Company measures the loss provision for notes receivable according to the expected credit lossamount of the whole duration.
Except for the notes receivable whose credit risk is evaluated individually, the Company divides the notesreceivable into different portfolios based on the credit risk of their acceptors as a common risk characteristic,and calculates the expected credit loss on the basis of the portfolios. The basis for determining the portfolios isas follows:
| Portfolio name | Basis for determining the portfolio |
| Bank acceptance bill | Management evaluation has low credit risk and the expected credit loss is generally not recognized |
| Commercial acceptance bill | Same as "Accounts Receivable" portfolio |
The Company individually tests the impairment of the notes receivable with objective evidence and othernotes that are suitable for individual evaluation, recognizes the expected credit loss, and calculates theindividual impairment provision.
13. Account receivable
The CBC adopts the simplified model of expected credit loss for accounts receivables specified in “AccountingStandards for Business Enterprises No.14 - Revenue” and without containing significant financing components(including the case that the financing components in contracts that do not exceed one year are not consideredaccording to the standards), that is, always measures their loss provisions according to the amount of expectedcredit loss during the entire duration, and the resulting increased or reversed amount of the loss provision isincluded in the current profit and loss as an impairment loss or gain.
Based on common risk characteristics, the Company divides accounts receivable into different groupsaccording to common credit risk characteristics such as customer categories:
| Portfolio name | Basis for determining the portfolio |
| Individual identification portfolio | Commercial acceptance bills receivable, accounts receivable and other receivables with significant single amount (receivables with an ending balance of more than RMB 5 million (including RMB 5 million)), or accounts receivable with insignificant individual amount but high risk |
| Aging portfolio | Taking the aging of receivables as the credit risk characteristic |
| Related-party portfolio receivable | Receivables from related parties |
(1) Individual identification portfolio: For receivables with an ending balance of more than RMB 5million (including RMB 5 million), or accounts receivable with insignificant individual amount but high risk,impairment test shall be conducted separately for each customer. Impairment test shall be conducted separatelyfor accounts receivable with objective evidence indicating impairment and other accounts receivable applicableto individual evaluation (such as accounts receivable in dispute with the other party or involving litigation andarbitration; accounts receivable with obvious signs that the debtor is likely to be unable to fulfill the repaymentobligations, etc.), to recognize expected credit loss and calculate individual impairment provision.
(2) Aging portfolio: For accounts receivable that have not been impaired after individual testing or whoseindividual amount is not significant but with low risk, the Company evaluates the expected credit loss of variousaccounts receivable based on the actual loss rate of the same or similar accounts receivable portfolio withsimilar credit risk characteristics in previous years.
(3) Associated portfolio: Unless there is conclusive evidence indicating an impairment, the accountsreceivable formed between related parties shall not be accrued for bad debt provision.
14. Receivable financing
Receivable financing reflects notes receivable and accounts receivable that are measured at fair value on thebalance sheet date with changes included in other comprehensive income. For the accounting treatment method,please refer to the related treatment of the financial assets measured at fair value with changes included in othercomprehensive income classified in Item (XI) Financial Instrument of this accounting policy.
15. Other account receivable
Determination method and accounting treatment of the expected credit loss of other account receivable
For other receivables, the expected credit loss is determined according to historical data and forward-looking information. Based on whether the credit risk of other receivables has increased significantly since theinitial recognition, the Company adopts the amount equivalent to the expected credit loss in the next 12 monthsor the whole duration to measure the impairment loss. For specific accounting treatment methods, please referto Item (XIII) Accounts Receivable of this accounting policy.
16. Contractual assets
Contract assets refer to the right that the Company has transferred the goods to customers and has the rightto receive consideration, and such right depends on other factors besides the passage of time.
17. Inventory
The Company shall comply with the disclosure requirement of jewelry-related industries in the “ShenzhenStock Exchange Self-Regulatory Guidelines for Listed Companies No. 3- Industry Disclosure”
(1) Classification of inventory
The CBC classifies the inventory into raw materials, goods in process, goods on hand, wrap page, low valueconsumables, materials for consigned processing and goods sold, etc.
(2) Valuation of inventories
Inventories are initially measured at cost upon acquisition, which includes procurement costs, processing costsand other costs. Cost of the inventory issued is carried forward on the basis of a combination of the weightedaverage method and specific identification when inventories are issued.
(3)Inventory system
Perpetual inventory system is adopted.
(4) Amortization method of low-value consumables and packaging materials
"One-time amortization method" is adopted for accounting.
(5) Provision for inventory impairment
When a comprehensive count of inventories is done at the end of the period, provision for inventory impairment isallocated or adjusted using the lower of the cost of inventory and the net realizable value. The net realizable valueof stock in inventory (including finished products, goods in stock and materials for sale) that can be sold directlyis determined using the estimated saleable price of such inventory deducted by the cost of sales and relevanttaxation over the course of ordinary production and operation. The net realizable value of material in inventorythat requires processing is determined using the estimated saleable price of the finished product deducted by thecost to completion, estimated cost of sales and relevant taxation over the course of ordinary production and
operation. The net realizable value of inventory held for performance of sales contract or labor service contract isdetermined based on the contractual price; in case the amount of inventory held exceeds the contractual amount,the net realizable value of the excess portion of inventory is calculated using the normal saleable price.Provision for impairment is made according to individual items of inventories at the end of the period; however,for inventories with large quantity and low unit price, the provision is made by categories; inventories of productsthat are produced and sold in the same region or with the same or similar purpose or usage and are difficult to bemeasured separately are combined for provision for impairment.If the factors causing a previous write-off of inventory value has disappeared, the amount written-off is reversedand the amount provided for inventory impairment is reversed and recognized in profit or loss for the period.During the reporting period, the specific methods and implementation of the Company's inventoryimpairment measurement are as follows:
(1) Inventory impairment method
The issuer's inventory mainly includes raw materials, inventory goods and materials commissioned forprocessing. The ending inventory of the Company is measured according to the lower of cost and net realizablevalue. When the net realizable value is lower than the cost, the inventory depreciation provision is accrued.
①Specific methods for measuring the impairment of raw materials
Raw materials mainly include gold and diamond raw materials. The closing net realizable value of goldraw materials is determined according to the closing price of spot gold trading announced by Shanghai GoldExchange at the end of the period. For the part with the book cost higher than the closing net realizable value,inventory depreciation provision is accrued; Diamond raw materials are used for processing finished diamondinlaid products, but the finished diamond inlaid products are with great difference. At the end of the year, theCompany will comprehensively judge whether there are signs of impairment based on the price fluctuation ofdiamonds in that year, processing rates and pricing policies, and if there are signs of impairment, it will measurethe impairment one by one.
② Specific methods for measuring the impairment of inventory goods
Inventory goods mainly include finished gold products, finished K-gold products and finished inlaidproducts. The depreciation of finished gold products and finished K-gold products shall be measured one by one,and the closing net realizable value shall be determined by referring to the sales outbound price at the end of theperiod after deducting the relevant sales expenses and taxes. For finished products whose closing book cost ishigher than the net realizable value, the inventory depreciation provision shall be accrued. The finished inlaidproducts are quite different. At the end of the period, the Company will comprehensively judge whether thereare signs of impairment according to the price fluctuation of diamonds in that year and the pricing policy. Ifthere are signs of impairment, the impairment will be measured one by one.
③ Specific methods for measuring the impairment of materials commissioned for processing
Materials commissioned for processing mainly include gold and diamond raw materials, which are similarin nature to raw materials, so the measurement method is consistent with that of raw materials.
18. Assets held for sale
1. Basis for classification as non-current assets held for sale or disposal group
If the book value of an non-current asset is recovered mainly through sales (including the exchange ofnon-monetary assets with commercial substance) rather than continuous use or disposal group, the Companywill classify it as held for sale. The specific standard is to meet the following conditions at the same time:
(1) According to the practice of sales of such assets or disposal groups in similar transactions, they can besold immediately under the current situation;
(2) The Company has made a resolution on a sale plan and obtained a firm purchase commitment. It isexpected that the sale will be completed within one year (if the relevant regulations require the approval of therelevant authority or regulatory department of the Company before the sale, such approval has been obtained).If the control right of the subsidiary is lost due to the sale of the investment in the subsidiary, regardless ofwhether part of the equity investment is retained after the sale and the conditions for classification of the held-for-sale category are met, the investment in the subsidiary as a whole will be classified as held-for-sale categoryin the individual financial statements of the parent company, and all assets and liabilities of the subsidiary willbe classified as held-for-sale category in the consolidated financial statements.
2. Accounting treatment of non-current assets or disposal groups held for sale
When the Company initially measures or re-measures the non-current assets or disposal groups held forsale on the balance sheet date, if the book value is higher than the net amount of fair value minus the saleexpenses, the book value will be written down to the net amount of fair value minus the sale expenses, and thewritten-down amount will be recognized as asset impairment loss and included in the current profits and losses,and impairment provision of assets held for sale will be accrued at the same time. If the net amount of the fairvalue of non-current assets held for sale on the subsequent balance sheet date is increased after deducting thesale expenses, the previously written-down amount will be restored and reversed within the amount of assetimpairment loss recognized after being classified as held for sale, and the reversed amount will be included inthe current profits and losses. Assets impairment losses recognized before being classified as held for sale shallnot be reversed.
For the amount of asset impairment loss recognized by the disposal group held for sale, the book value ofgoodwill in the disposal group shall be deducted first, and then the book value of non-current assets in thedisposal group shall be deducted proportionally according to the proportion of the book value of non-currentassets in the disposal group. For the subsequent reversal amount of asset impairment losses recognized by thedisposal group held for sale, the book value will be increased in proportion according to the proportion of thebook value of non-current assets except goodwill in the disposal group.
Non-current assets held for sale or non-current assets in disposal group are not depreciated or amortized,and interest and other expenses of liabilities in disposal group held for sale continue to be recognized.
When the Company derecognizes the non-current assets held for sale or disposal groups, the unrecognizedgains or losses will be included in the current profits and losses.
When non-current assets or disposal groups are no longer classified as held for sale because they nolonger meet the classification conditions of held for sale, or non-current assets are removed from the disposalgroups held for sale, the measurement shall be based on the lower of the following two amounts:
(1) For the book value before being classified as held for sale, the adjusted amount based on depreciation,amortization or impairment that should have been recognized if it is not classified as held for sale;
(2) Recoverable amount.
3. Determination standard and presentation method of discontinued operation
Discontinued operations refers to a component that meets any of the following conditions and can bedistinguished separately and has been disposed of by the Company or classified as a component held for sale:
(1) This component represents an independent main business or a single main business area;
(2) This component is part of an associated plan to dispose of an independent main business or a separatemain business area;
(3) This component is a subsidiary acquired exclusively for resale.
For the discontinued operation listed in the current period, the Company separately lists the profit and lossof continuing operation and the profit and loss of discontinued operation in the current income statement, and
re-lists the information originally listed as the profit and loss of continuing operation as the profit and loss ofdiscontinued operation in comparable accounting period in the income statement of the comparative period.
19. Debt investment
For debt investment, the Company determines the expected credit loss on each balance sheet dateaccording to the types of counterparties and risk exposures and in consideration of historical default andindustry forward-looking information or various external actual and expected economic information. For thedetermination method and accounting treatment method of expected credit loss, please refer to the provisions ofItem (XI) Financial Instruments of this accounting policy.
20. Other debt investment
For Other debt investment, the Company determines the expected credit loss on each balance sheet dateaccording to the types of counterparties and risk exposures and in consideration of historical default andindustry forward-looking information or various external actual and expected economic information. For thedetermination method and accounting treatment method of expected credit loss, please refer to the provisions ofItem (XI) Financial Instruments of this accounting policy.
21. Long-term account receivable
The Company's long-term receivables include receivable financial lease and other long-term receivables.
For the receivable financial lease formed by the transactions regulated in Accounting Standards forBusiness Enterprises No.21-Lease, the loss provision shall be measured according to the amount equivalent tothe expected credit loss during the whole duration.
For other long-term receivables, the Company determines the expected credit loss on each balance sheetdate according to the types of counterparties and risk exposures and in consideration of historical default andreasonable forward-looking information or various external actual and expected economic information.
Based on whether the credit risk has increased significantly since the initial recognition, the Companyadopts the amount equivalent to the expected credit loss in the next 12 months or the whole duration to measurethe impairment loss of long-term receivables. Except for the long-term receivables whose credit risk isevaluated individually, they are divided into different portfolios based on their credit risk characteristics:
| Portfolio name | Basis for determining the portfolio |
| Normal long-term receivables | This portfolio is a long-term receivable with no overdue risk |
| Overdue long-term receivables | This portfolio is a long-term receivable with high overdue risk |
| …… |
22. Long-term equity investment
1. Basis for determining joint control and significant influence on the investee
Joint control refers to the common control of an arrangement according to the relevant agreement, and thatthe related activities of the arrangement must be unanimously agreed by the participants who share the controlrights before making decisions. When judging whether there is joint control, firstly, it is judged whether all
participants or a group of participants collectively control the arrangement. If all participants or a group ofparticipants must act in concert to decide the related activities of an arrangement, it is considered that allparticipants or a group of participants collectively control the arrangement. Secondly, it is judged whether thedecision of the related activities of the arrangement must be unanimously agreed by the participants whocollectively control the arrangement, and joint control can only be formed if and only if the decision of therelated activities requires the unanimous consent of the participants who collectively control the arrangement. Ifthere are two or more participants who can collectively control an arrangement, it does not constitute jointcontrol. When judging whether there is joint control, the protective rights enjoyed are not considered.Significant influence refers to that the investor has the right to participate in the decision-making of thefinancial and operating policies of the investee, but it cannot control or jointly control the formulation of thesepolicies with other parties. When determining whether a significant influence can be exerted on the investee,consider the influence of the investor's direct or indirect holding of the voting shares of the investee and thepotential voting rights held by the investor and other parties in the current period after it is assumed to beconverted into the equity of the investee, including the influence of the current convertible warrants, stockoptions and convertible corporate bonds issued by the investee. When foreign investment meets the followingconditions, it is generally determined that it has a significant impact on the investing unit: ① It is represented inthe Board of Directors or similar authority of the investee; ② It participates in the formulation of the financialand business policies of the investee; ③ Important transactions with the investee occur; ④ Managementpersonnel are sent to the investee; ⑤ Key technical data is provided to the investee. When directly or indirectlyowning more than 20% but less than 50% of the voting shares of the investee, it is generally considered to havea significant impact on the investee.
2. Determination of initial investment cost
(1) Long-term equity investment formed by business merger
A. In the case of business merger under the same control, if cash payment, transfer of non-cash assets ortaking on debts and issuance of equity securities are adopted as the merger consideration, the initial investmentcost of long-term equity investment shall be the share of the book value of the owners' equity of the mergedparty in the consolidated financial statements of the final controlling party on the date of merger. If the investeeunder the same control can be controlled due to additional investment and other reasons, the initial investmentcost of long-term equity investment shall be determined according to the share of the net assets of the mergedparty in the book value of the consolidated financial statements of the final controlling party on the date ofmerger. For the difference between the initial investment cost of the long-term equity investment on the date ofmerger and the book value of the long-term equity investment before the merger plus the book value of thenewly paid consideration for the shares on the date of merger, adjust the capital premium or share capitalpremium. If the capital premium or share capital premium is insufficient to offset, the retained income will beoffset.B. For the business merger not under the same control, the merger cost shall be determined as the initialinvestment cost of long-term equity investment on the date of purchase in accordance with the relevantprovisions of the Accounting Standards for Business Enterprises No.20-Business Merger. If the investees notunder the same control can be controlled due to additional investment and other reasons, the sum of the bookvalue of the original equity investment plus the new investment cost shall be taken as the initial investment costcalculated by the cost method.
(2) In addition to the long-term equity investment formed by business merger, the initial investment costof long-term equity investment obtained by other means shall be determined in accordance with the followingprovisions:
A. For long-term equity investment obtained by paying cash, the initial investment cost shall be the actualpurchase price. The initial investment cost includes expenses, taxes and other necessary expenses directlyrelated to obtaining long-term equity investment.B. For long-term equity investment obtained by issuing equity securities, the initial investment cost shallbe the fair value of issuing equity securities.
C. For long-term equity investment obtained by exchange of non-monetary assets, the initial investmentcost shall be determined in accordance with the Accounting Standards for Business Enterprises No.7-Exchangeof Non-monetary Assets.
D. For long-term equity investment obtained by debt restructuring, its initial investment cost shall bedetermined in accordance with the Accounting Standards for Business Enterprises No.12-Debt Restructuring.
3. Subsequent measurement and profit and loss recognition method
(1) Accounting by cost method: Long-term equity investment that can be controlled by the investee shallbe accounted by cost method. When accounting by cost method, the cost of long-term equity investment isadjusted by adding or recovering investment. For the long-term equity investment accounted by the cost method,except for the declared but undistributed cash dividends or profits included in the price or consideration actuallypaid at the time of investment, the Company shall recognize the investment income according to the cashdividends or profits declared by the investee, and no longer distinguish whether it belongs to the net profitrealized by the investee before and after the investment.
(2) Accounting by equity method: For the long-term equity investment jointly controlled or significantlyinfluenced by the investee, except for the equity investment in the associated enterprise, part of it is indirectlyheld by venture capital institutions, mutual funds, trust companies or similar entities including investment withinsurance funds, regardless of whether the above entities have a significant influence on this part of theinvestment, the Company to measure this part of the indirectly held investment at fair value with its changesincluded in profits and losses in accordance with the relevant provisions of Accounting Standards for BusinessEnterprises No.22-Recognition and Measurement of Financial Instruments, and adopts the equity method foraccounting. When accounting by equity method, after the Company obtains the long-term equity investment,the investment income and other comprehensive income are recognized respectively according to the share ofthe net profit and loss and other comprehensive income realized by the investee, and the book value of the long-term equity investment is adjusted; The Company shall calculate its share according to the profit or cashdividend declared by the investee, and correspondingly reduce the book value of long-term equity investment;The Company shall adjust the book value of the long-term equity investment and include it in the owners' equityfor other changes in the owners' equity of the investee except the net profit and loss, other comprehensiveincome and profit distribution. The Company recognizes the net loss of the investee to the extent that the bookvalue of the long-term equity investment and other long-term rights and interests that substantially constitute thenet investment of the investee are written down to zero, unless the Company has the obligation to bearadditional losses. If the investee realizes the net profit in the future, the Company will resume the recognition ofthe income share after the income share makes up for the unrecognized loss share. When recognizing the shareof the net profit and loss of the investee, the Company will adjust the net profit of the investee based on the fairvalue of the identifiable assets of the investee at the time of investment, and offset the gains and losses ofinternal transactions between the Company and associated enterprises and joint ventures, and recognize theinvestment profit and loss on this basis. The internal transaction losses between the Company and the investeeshall be recognized in full if they belong to asset impairment losses according to the Accounting Standards forBusiness Enterprises No.8-Asset Impairment. If the accounting policies and accounting periods adopted by theinvestee are inconsistent with those of the Company, the financial statements of the investee shall be adjusted
according to the accounting policies and accounting periods of the Company, so as to recognize the investmentprofits and losses.Long-term equity investments in associated enterprises and joint ventures held before the first executiondate, if there is any debit difference of equity investments related to the investment, shall be amortized by theoriginal remaining term straight-line method, and the amortized amount shall be included in the current profitsand losses.
(3) When disposing of long-term equity investment, the difference between its book value and the actualpurchase price is included in the current profits and losses. If the long-term equity investment accounted byequity method is included in the owners' equity due to other changes in the owners' equity of the investee exceptthe net profit and loss, the part originally included in the owners' equity will be transferred to the current profitsand losses in proportion when disposing of the investment, except for other comprehensive income arising fromthe investee's re-measurement of the changes in defined benefit plan net liabilities or net assets.
23. Investment real estate
Investment real estate refers to real estate held to earn rent or capital appreciation, or both. It includesleased land use rights, land use rights held and ready to be transferred after appreciation, and leased buildings.When the Company can obtain rental income or value-added income related to investment real estate and thecost of investment real estate can be measured reliably, the Company will initially measure it according to theactual expenditure of purchase or construction.
The Company adopts the cost model to measure the investment real estate on the balance sheet date.Under the cost model, the Company measures the investment real estate and makes depreciation or amortizationin accordance with the provisions of Item (23) Fixed Assets and Item (26) Intangible Assets of this accountingpolicy. When the investment real estate is disposed of, or permanently withdrawn from use, and it is notexpected to obtain economic benefits from its disposal, the recognition of the investment real estate shall beterminated. When the Company sells, transfers, scraps or damages the investment real estate, the amount ofdisposal income after deducting its book value and relevant taxes shall be included in the current profits andlosses.
24. Fixed assets
(1) Recognition conditions
Fixed assets refer to tangible assets with a service life of more than one fiscal year, which are held forproducing goods, providing labor services, leasing or managing.
(2) Depreciation methods
| Category | Method | Years of depreciation | Scrap value rate | Yearly depreciation rate |
| Houses and buildings | Straight-line depreciation | 20 | 0.1 | 0.045 |
| Machinery equipment | Straight-line depreciation | 10 | 0.1 | 0.09 |
| Transportation equipment | Straight-line depreciation | 5 | 0.1 | 0.18 |
| Electronic equipment and others | Straight-line depreciation | 5 | 0.1 | 0.18 |
At the end of each year, the company rechecks the service life, estimated net salvage and depreciation methodof fixed assets.
25. Construction in progress
The construction in progress is measured according to the actual cost, which includes all necessary projectexpenditures incurred during the construction period, borrowing costs that should be capitalized before theproject reaches the scheduled serviceable state, and other related expenses.
Construction in progress is carried forward to fixed assets when it reaches the scheduled serviceable state.The criteria for scheduled serviceable state shall meet one of the following conditions:
(1) The physical construction (including installation) or production of fixed assets has been completely orsubstantially completed;
(2) It has been put into trial production or trial operation, and the results show that the assets can normallyproduce qualified products, or the trial operation results show that it can operate or operate properly;
(3) The amount of expenditure that continues to occur on fixed assets purchased, constructed or producedis very small or almost none;
(4) The fixed assets purchased, constructed or produced have reached the design or contract requirements,or are basically in line with the design or contract requirements.
26. Borrowing expenses
1. Recognition principle of capitalization of borrowing costs
Borrowing costs include interest incurred by borrowing, amortization of discount or premium andauxiliary expenses, as well as exchange difference incurred by borrowing in foreign currency. If the borrowingcosts incurred by the Company can be directly attributed to the purchase, construction or production of assetsthat meet the capitalization conditions, they shall be capitalized and included in the cost of relevant assets;Other borrowing costs shall be recognized as expenses when incurred according to the amount incurred, andincluded in the current profits and losses.
Assets eligible for capitalization include fixed assets, investment real estate, inventory and other assetsthat need to go through a long period of purchase, construction or production activities to reach thepredetermined serviceable or saleable state.
Borrowing costs shall be capitalized when the following conditions are met at the same time:
(1) Asset expenditure has occurred, including the expenditure occurred in the form of paying cash,transferring non-cash assets or undertaking interest-bearing debts for purchasing, constructing or producingassets that meet capitalization conditions;
(2) Borrowing costs have been incurred;
(3) The purchase, construction or production activities necessary to make the assets reach the expectedserviceable or saleable state have started.
2. Period of capitalization of borrowing costs
Borrowing expenses incurred for purchasing, constructing or producing assets that meet the capitalizationconditions, if they meet the above capitalization conditions and occur before the assets reach the predeterminedserviceable or saleable state, shall be included in the cost of the assets; If the purchase, construction orproduction activities of the assets are abnormally interrupted for more than 3 months, the capitalization ofborrowing costs shall be suspended and recognized as current expenses until the purchase, construction orproduction activities of the assets resume; When the purchased, constructed or produced assets reach the
predetermined serviceable or saleable state, the capitalization of their borrowing costs will be stopped.Borrowing costs incurred after reaching the intended serviceable or saleable state are directly included infinancial expenses in the current period.
3. Calculation method of capitalized amount of borrowing costs
During the capitalization period, the capitalization amount of interest (including amortization of discountor premium) in each accounting period shall be determined in accordance with the following provisions:
(1) Where a special borrowing is borrowed for the purpose of purchasing, constructing or producing assetsthat meet the capitalization conditions, it shall be determined by the actual interest expenses incurred in thecurrent period of the special borrowing, minus the interest income obtained by depositing unused borrowingfunds in the bank or the investment income obtained by temporary investment.
(2) If the general borrowing is occupied for the purpose of purchasing, constructing or producing assetsthat meet the capitalization conditions, the interest amount that should be capitalized on the general loan shallbe calculated and determined according to the weighted mean of the accumulated asset expenditure exceedingthe special borrowing portion multiplied by the capitalization rate of the occupied general borrowing.
27. Biological assets
Nil
28. Oil and gas asset
Nil
29. Intangible assets
(1) Service life and its determination basis, estimation, amortization method or review procedure
1. Service life and its determination basis, estimation, amortization method or review procedure
Intangible assets are measured at actual cost. The cost of outsourced intangible assets includes thepurchase price, relevant taxes, and other expenses directly attributable to making the assets reach the intendeduse. If intangible assets are purchased by installment, and the purchase price of intangible assets exceeds thenormal credit conditions and actually with financing nature, the cost of intangible assets is the present value ofthe purchase price. The cost of intangible assets invested by investors shall be determined according to the valueagreed in the investment contract or agreement. If the value agreed in the investment contract or agreement isunfair, it shall be recorded according to the fair value of intangible assets. For intangible assets obtained byexchange of non-monetary assets, the initial investment cost shall be determined in accordance with theAccounting Standards for Business Enterprises No.7-Exchange of Non-monetary Assets. For intangible assetsobtained by debt restructuring, its initial investment cost shall be determined in accordance with the AccountingStandards for Business Enterprises No.12-Debt Restructuring. For intangible assets acquired by merger ofenterprises under the same control, their entry value shall be determined according to the book value of themerged party; For intangible assets acquired by merger of enterprises not under the same control, their entryvalue shall be determined at the fair value.
The Company analyzes and judges the service life of intangible assets when acquiring them, and dividesthem into intangible assets with limited service life and intangible assets with uncertain service life. Intangibleassets with limited service life shall be amortized within the expected service life by adopting the amortization
method that can reflect the expected realization mode of economic benefits related to such assets from the timewhen the intangible assets are available for use; If the expected realization mode cannot be reliably determined,straight-line amortization method shall be adopted.
Amortization method, service life, determination basis and residual rate of various intangible assets withlimited service life:
| Category | Amortization method | Service life (year) | Determination basis | Residual rate (%) |
| Land use right | Straight-line method | 40-50 years | Statutory term/registration term of land use certificate | 0.00 |
| Trademark right | Straight-line method | 10 years | Statutory term | 0.00 |
| Software | Straight-line method | 2-10 years | Benefit period/contract period | 0.00 |
| Patent | Straight-line method | 5-10 years | Benefit period/contract period | 0.00 |
| Non-patent technology | Straight-line method | 5-10 years | Benefit period/contract period | 0.00 |
| Industrial property rights and proprietary technology | Straight-line method | 10 years | Benefit period/contract period | 0.00 |
| Others | Straight-line method | 5-10 years | Benefit period/contract period | 0.00 |
At the end of each year, the Company reviews the service life and amortization method of intangibleassets with limited service life. If the service life and amortization method of intangible assets are different fromthose previously estimated, the amortization period and amortization method shall be changed.
The Company regards intangible assets with unpredictable future economic benefits as intangible assetswith uncertain service life, and does not amortize intangible assets with uncertain service life. The Companyreviews the service life of intangible assets with uncertain service life in each accounting period. If there isevidence that the service life of intangible assets is limited, its service life shall be estimate and treatment shallbe carried out according to the above provisions.
Please refer to Item (27) Impairment of Long-term Assets in this accounting policy for details on theimpairment test method and accrual method for impairment provision of intangible assets.
(2) Collection scope of R&D expenditure and related accounting treatment methods
R&D expenditure is directly related to R&D activities of the enterprise, including R&D employeecompensation, direct input expenses, depreciation expenses and long-term deferred expenses, design expenses,equipment debugging expenses, intangible assets amortization expenses, commissioned external R&D expenses,and other expenses. The collection and calculation of R&D expenditure is based on the fact that relevantresources are actually invested in R&D activities. R&D expenditure includes expensed R&D expenditure andcapitalized development expenditure.
The division standard of research stage expenditure and development stage expenditure of R&D projects:
Research stage expenditure refers to the expenditure incurred by original planned investigation for acquiringand understanding new scientific or technical knowledge; Development stage expenditure refers to theexpenditure incurred by applying research results or other knowledge to a plan or design to produce new orsubstantially improved materials, devices and products before commercial production or use.
Expenditures of intangible assets developed by the Company itself during the research stage of R&Dprojects are included in the current profits and losses when incurred. Expenditure in the development stage of
the development project can only be recognized as intangible assets if the following conditions are met at thesame time:
(1) It is technically feasible to complete the intangible assets so that they can be used or sold;
(2) It has the intention to complete the intangible assets and use or sell them;
(3) For the ways in which intangible assets generate economic benefits, including the ability to prove thatthe products produced by using the intangible assets exist in the market or the intangible assets themselves existin the market, if the intangible assets will be used internally, their usefulness shall be proved;
(4) It has sufficient technical, financial and other resources to support the development of the intangibleassets, and has the ability to use or sell the intangible assets;
(5) Expenditure attributable to the development stage of the intangible assets can be reliably measured.
The expenditure in the development stage that has been expensed in the previous period is no longeradjusted.
30. Impairment of long-term assets
Long-term assets such as long-term equity investment, investment real estate measured by cost model,fixed assets, construction in progress, intangible assets and right-to-use assets, which show signs of impairmenton the balance sheet date, shall be tested for impairment. If the impairment test results show that the recoverableamount of the asset is lower than its book value, the impairment provision shall be accrued according to thedifference and included in the impairment loss. The recoverable amount is the higher of the net amount of theasset fair value after deducting the disposal expenses and the present value of the expected future cash flow ofthe asset. The asset impairment provision is calculated and recognized on the basis of individual assets. If it isdifficult to estimate the recoverable amount of individual assets, the recoverable amount of the asset group shallbe determined by the asset group to which the asset belongs. Asset group is the smallest asset portfolio that cangenerate cash inflow independently.
Goodwill shall be tested for impairment at least at the end of each year. The Company conducts goodwillimpairment test, and the book value of goodwill formed by business merger is allocated to relevant asset groupsaccording to reasonable methods from the date of purchase; If it is difficult to allocate to the relevant assetgroup, allocate it to the relevant asset group portfolio. When allocating the book value of goodwill to therelevant asset group or asset group portfolio, it shall be allocated according to the proportion of the fair value ofeach asset group or asset group portfolio to the total fair value of the relevant asset group or asset groupportfolio. If it is difficult to reliably measure the fair value, it shall be apportioned according to the proportion ofthe book value of each asset group or asset group portfolio to the total book value of the relevant asset group orasset group portfolio. When carrying out impairment test on relevant asset groups or asset group portfoliocontaining goodwill, if there are signs of impairment on asset groups or asset group portfolio related to goodwill,first carry out impairment test on asset groups or asset group portfolio that do not contain goodwill, calculatethe recoverable amount, and compare it with the relevant book value to recognize the corresponding impairmentloss. Then carry out impairment test on the asset group or asset group portfolio containing goodwill, andcompare the book value of these relevant asset groups or asset group portfolio (including the book value of theallocated goodwill) with its recoverable amount. If the recoverable amount of the relevant asset group or assetgroup portfolio is lower than its book value, recognize the impairment loss of goodwill.Once the above-mentioned asset impairment losses are recognized, they will not be reversed in futureaccounting periods.
31. Long-term expenses to be apportioned
Long-term deferred expenses refer to the expenses that have been incurred by the Company but should beborne by the current period and subsequent periods with an amortization period of more than 1 year, includingthe improvement expenses of fixed assets rented by operating lease. Long-term deferred expenses shall beamortized evenly during the benefit period of relevant projects.
| Category | Amortization years |
| Decoration and maintenance fee | 3-6 years |
32. Contractual liability
Contractual liabilities reflect the Company's obligation to transfer goods to customers for received orreceivable consideration from customers. If the customer has paid the contract consideration or the Companyhas obtained the unconditional right to receive the contract consideration before the Company transfers thegoods to the customer, the contractual liabilities shall be recognized according to the amount received orreceivable when the customer actually issues the payment or the payment is due, whichever is earlier.
Contract assets and contractual liabilities under the same contract are listed on a net basis, and contractassets and contractual liabilities under different contracts are not offset.
33. Employee compensation
(1) Accounting treatment for short-term compensation
Short-term salary refers to the employee's salary that the Company needs to pay in full within 12 monthsafter the end of the annual report period when employees provide relevant services, except post-employmentbenefits and dismissal benefits. During the accounting period when employees provide services, the Companyrecognizes the actual short-term salary as a liability, and includes it into relevant asset costs and expensesaccording to the beneficiaries of employees' services.
(2) Accounting treatment for post-employment benefit
Post-employment benefits refer to various forms of remuneration and benefits provided by the Companyafter employees retire or terminate labor relations with the Company in order to obtain services provided byemployees, except short-term remuneration and dismissal benefits. Post-employment benefit plans includedefined contribution plan and defined benefit plans. Defined contribution plan refers to the post-employmentbenefit plan in which the Company will not undertake further payment obligations after paying a fixed fee foran independent fund; Defined benefit plan refers to the post-employment benefit plan except the definedcontribution plan.
(1) Defined contribution plan
Defined contribution plan includes basic old-age insurance and unemployment insurance. During theaccounting period when employees provide services for the Company, the amount payable shall be calculatedaccording to the local payment base and proportion, recognized as liabilities, and included in the current profitsand losses or related asset costs.
During the accounting period when employees provide services, the amount payable calculated accordingto the defined contribution plan is recognized as a liability and included in the current profits and losses orrelated asset costs.
(2) Defined benefit plan
According to the formula determined by the expected cumulative benefit unit method, the Companyattributes the benefit obligations generated by defined benefit plan to the period when employees providedservices, and includes them in the current profits and losses or related asset costs. The employee compensationcost caused by defined benefit plan of the Company includes the following components:
A. Service costs, including current service costs, past service costs and settlement gains or losses. Currentservice costs refer to the increase in the present value of defined benefit plan obligations caused by employees'provision of services in the current period; Past service costs refer to the increase or decrease of the presentvalue of defined benefit plan obligations related to employee service in the previous period caused by therevision of the defined benefit plan.
B. Net interest of net liabilities or net assets in defined benefit plan, including the interest income ofplanned assets, the interest expense of defined benefit plan obligations and the interest affected by the assetceiling.
C. Changes arising from re-measurement of net liabilities or net assets in defined benefit plan.
Unless other accounting standards require or allow employee benefit costs to be included in the asset costs,the Company will include the above items A and B in the current profits and losses, and include Item C in othercomprehensive income which will not be transferred back to profit or loss in subsequent accounting periods, butthese amounts recognized in other comprehensive income can be transferred within the scope of equity.
(3) Accounting for retirement benefits
Dismissal benefits refer to the compensation provided to employees by the Company for terminating thelabor relationship with employees before the expiration of their labor contracts or for encouraging employees tovoluntarily accept layoffs. If the Company provides dismissal benefits to employees, the employeecompensation liabilities arising from the dismissal benefits shall be recognized at the earlier of the followingtwo dates, and included in the current profits and losses: when the Company cannot unilaterally withdraw thedismissal benefits provided by the plan to terminate labor relations or the proposal to cut back; When theCompany recognizes the costs or expenses related to the reorganization involving the payment of dismissalbenefits.
(4) Accounting for other long-term employee benefits
Other long-term employee benefits refer to all employee compensation except short-term salary, post-employment benefits and dismissal benefits, including long-term paid absences, long-term disability benefitsand long-term profit sharing plans. Other long-term employee benefits provided by the Company to employees,if they meet the requirements of the defined contribution plan, shall be handled in accordance with the relevantprovisions of the defined contribution plan; For other long-term employee benefits other than the above, the netliabilities or net assets of other long-term employee benefits shall be recognized and measured according to therelevant regulations of the defined benefit plan. At the end of the reporting period, the Company attributed thebenefit obligations arising from other long-term employee benefits to the period when employees providedservices, and included them in the current profits and losses or related asset costs.
34. Accrual liability
If the Company's obligation related to contingencies meet the following conditions at the same time, itwill be recognized as a liability: (1) This obligation is the current obligation undertaken by the Company; (2)The performance of this obligation may lead to the outflow of economic benefits; (3) The amount of theobligation can be measured reliably.
All or part of the expenditures required for the estimated liabilities are expected to be compensated by thethird party or other parties, and the compensation amount is recognized as an asset separately when it isbasically determined that it can be received, and the recognized compensation amount does not exceed the bookvalue of the recognized liabilities. The estimated liabilities are initially measured according to the best estimateof the expenditure required to perform the relevant current obligations, with the factors related to contingencies,such as risks, uncertainties and time value of money, comprehensively considered. If the time value of moneyhas a significant impact, the best estimate shall be determined by discounting the relevant future cash outflows.
On the balance sheet date, the Company reviews the book value of the estimated liabilities. If there isconclusive evidence that the book value cannot truly reflect the current best estimate, such book value will beadjusted according to the current best estimate.
35. Share-based payment
1. Types of share-based payment
Share-based payment of the Company is divided into cash-settled share-based payment and equity-settledshare-based payment.
Equity-settled share-based payment shall be measured at the fair value of equity instruments granted toemployees. If it is exercisable immediately after the grant, it will be included in the relevant costs or expensesaccording to the fair value of the equity instrument on the grant date, and the capital reserve will be increasedaccordingly. If it is exercisable only after the service within the waiting period is completed or the specifiedperformance conditions are met, on each balance sheet date within the waiting period, the service obtained inthe current period shall be included in the relevant costs or expenses and capital reserve based on the bestestimate of the number of exercisable equity instruments and according to the fair value on the grant date of theequity instruments. After the vesting date, the recognized related costs or expenses and the total owners' equitywill not be adjusted.
Cash-settled share-based payment shall be measured at fair value of liabilities calculated and determinedbased on shares or other equity instruments undertaken by the Company. If it is exercisable immediately afterthe grant, it will be included in the relevant costs or expenses at the fair value of the liabilities undertaken by theCompany on the grant date, and the liabilities will be increased accordingly. For cash-settled share-basedpayment exercisable after the service in the waiting period is completed or the specified performance conditionsare met, the service obtained in the current period shall be included in the costs or expenses and correspondingliabilities on each balance sheet date during the waiting period based on the best estimate of the vestingsituation and according to the fair value of the liabilities undertaken by the Company. On each balance sheetdate and settlement date before the settlement of related liabilities, the fair value of liabilities is re-measured,and its changes are included in the current profits and losses.
2. Accounting treatment related to implementation, modification and termination of share-based paymentplan
No matter how the terms and conditions of the granted equity instruments are modified, or even the grantof the equity instruments is cancelled or the equity instruments are settled, the Company shall at least recognizethat the corresponding services obtained are measured according to the fair value of the granted equityinstruments on the grant date, unless the vesting conditions of the equity instruments (except market conditions)cannot be met.If the Company cancels the granted equity instruments or settles the granted equity instruments within thewaiting period (except those cancelled due to failure to meet the conditions of vesting conditions), the treatmentis as follows:
(1) The cancellation or settlement will be treated as accelerated vesting, and the amount that should havebeen recognized in the remaining waiting period will be recognized immediately.
(2) All the money paid to employees at the time of cancellation or settlement shall be treated as therepurchase of equity, and the part paid for repurchase that is higher than the fair value of the equity instrumenton the repurchase date shall be included in the current expenses.
(3) If a new equity instrument is granted to employees, and it is determined that the new equityinstrument granted is used to replace the cancelled equity instrument on the grant date of the new equityinstrument, the Company shall handle the granted alternative equity instrument in the same way as themodification of the terms and conditions of the original equity instrument.
36. Other financial instruments including preferred stock and perpetual bonds
37. Revenue
Disclosure of accounting policies adopted in income recognition and measurement according to business types
The Company has fulfilled its contractual obligations, that is, to recognize the income when the customerobtains the control right of relevant goods. Performance obligation refers to the commitment to transfer clearlydistinguishable goods to customers in the contract. The Company evaluates the contract on the contract startdate to identify each individual performance obligation contained in the contract. If the following conditions aremet at the same time, it is clearly distinguishable goods:
(1) Customers can benefit from the goods itself or from the use of the goods along with other easilyavailable resources;
(2) The commitment to transfer the goods to customers can be distinguished separately from othercommitments in the contract.
The following situations usually indicate that the commitment to transfer the goods to customers cannotbe distinguished separately from other commitments in the contract:
(1) Significant services need to be provided to integrate the goods and other goods promised in thecontract into the combined output agreed in the contract and transfer it to customers;
(2) The goods will make major modifications or customizations to other goods promised in the contract;
(3) The goods are highly correlated with other goods promised in the contract.
The transaction price is the amount of consideration that the Company is expected to receive fortransferring the goods to customers, excluding the payment collected on behalf of third parties and the paymentthat the Company is expected to return to customers. When determining the transaction price of the contract, ifthere is a variable consideration, the Company will determine the best estimate of the variable considerationaccording to the expected value or the most likely amount, and include it in the transaction price at an amountnot exceeding the amount that is unlikely to be significantly reversed when the relevant uncertainty is
eliminated. If there is a significant financing component in the contract, the Company will determine thetransaction price according to the amount payable in cash when the customer obtains the goods control right,and the difference between the transaction price and the contract consideration will be amortized by theeffective interest rate method during the contract period. If the interval between the customer obtaining thegoods control right and the customer paying the price is less than one year, the Company will not consider thefinancing component. When the consideration that the Company has the right to collect from the customer dueto the transfer of goods is in the form of non-cash, the Company will determine the transaction price accordingto the fair value of the non-cash consideration on the contract start date. If the fair value of the non-cashconsideration cannot be reasonably estimated, the Company will indirectly determine the transaction price withreference to the individual selling price of the goods it promised to transfer to customers. For the payment thatthe Company expects to return to customers, except for obtaining other clearly distinguishable goods fromcustomers, the consideration payable shall be used to offset the transaction price. If the consideration payable tocustomers exceeds the fair value of clearly distinguishable goods obtained from customers, the excess amountshall be used as the consideration payable to customers to offset the transaction price. If the fair value of clearlydistinguishable goods obtained from customers cannot be reasonably estimated, the Company will fully offsetthe transaction price from the consideration payable to customers. When carrying out accounting treatment onthe transaction price offset by the consideration payable to customers, the Company will offset the currentincome at the later time of recognizing the relevant income and paying (or promising to pay) the customerconsideration.If the contract contains two or more performance obligations, the Company will allocate the transactionprice to each individual performance obligation according to the relative proportion of the individual sellingprice of the goods promised by each individual performance obligation on the contract start date, and measurethe income according to the transaction price allocated to each individual performance obligation. In case ofsubsequent changes in the transaction price, the Company will allocate the subsequent changes to theperformance obligations in the contract according to the basis adopted on the contract start date. The transactionprice will not be re-allocated due to the change of individual selling price after the contract start date.
If any of the following conditions is met, the Company will perform its obligations within a certain periodof time; Otherwise, it is a fulfillment of performance obligation at a certain time point:
(1) Customers gain and consume the economic benefits brought by the Company's performance at thesame time;
(2) Customers can control the goods under construction during the performance of the Company;
(3) The goods produced during the performance of the Company have irreplaceable uses, and theCompany has the right to collect payment for the accumulated part of the performance completed so far duringthe whole contract period.
For the performance obligations performed in a certain period of time, the Company shall recognize theincome according to the performance progress during that period, except that the performance progress cannotbe reasonably determined. The Company determines the performance progress of provided services accordingto the input method. When the performance progress cannot be reasonably recognized, if the cost alreadyincurred by the Company is expected to be compensated, the revenue will be recognized according to the costamount already incurred until the performance progress can be reasonably recognized.
For the performance obligations fulfilled at a certain time point, the Company recognizes the incomewhen the customer obtains the control right of relevant goods. When judging whether the customer has obtainedthe control of the goods, the Company will consider the following signs:
(1) The Company is entitled to the right of real time payment collection for the goods, that is, thecustomer has the real time payment collection obligation for the goods;
(2) The Company has transferred the legal ownership of the goods to the customer, that is, the customerhas the legal ownership of the goods;
(3) The Company has transferred the goods in kind to the customer, that is, the customer has occupied thegoods in kind;
(4) The Company has transferred the main risks and rewards on the ownership of the goods to thecustomer, that is, the customer has obtained the main risks and rewards on the ownership of the goods;
(5) The customer has accepted the goods.
According to whether the Company has control over the goods or services before transferring them tocustomers, the Company judges whether it is the main responsible person or the agent when engaging intransactions. If the Company can control the goods or services before transferring them to customers, theCompany is the main responsible person, and the income is recognized according to the total considerationreceived or receivable; Otherwise, the Company is an agent, and will recognize the income according to theexpected amount of commission or handling fee, which is determined according to the net amount of the totalconsideration received or receivable after deducting the price payable to other interested parties, or according tothe established commission amount or proportion.
The situations in which the Company can control the goods before transferring them to customers includethe following:
(1) The enterprise transfers the control right of goods or other assets to the customer after it obtains it froma third party;
(2) The enterprise can lead the third party to provide services to customers on behalf of the enterprise;
(3) After the enterprise obtains the control right of the goods from the third party, it integrates the goodswith other goods into a combined output and transfers it to the customer by providing significant services.
When judging whether it has control over the goods before transferring them to customers, the Companycomprehensively considers all relevant facts and circumstances, including:
(1) The enterprise bears the main responsibility for transferring goods to customers;
(2) The enterprise bears the inventory risk of the goods before or after their transfer;
(3) The enterprise has the right to decide the prices of the goods for trade independently;
(4) Other relevant facts and circumstances.
Different income recognition methods and measurement methods involved in different business models adoptedby similar businesses
The Company's commodity sales mainly include circulation sales, shopping mall joint operation andproprietary e-commerce, and the recognition methods of sales revenuethese three ways are as follows:
(1) Circulation sales refers to that the Company recognizes the sales revenue when the goods are deliveredto the customer and the authorized representative or the first carrier recognized by the customer at thedesignated place, and the customer and the authorized representative or the first carrier have signed for it, andthe Company has received the payment or obtained delivery documents.
(2) The shopping mall joint operation is the Company cooperates with the shopping mall to carry out joint salesin the form of counters in the shopping mall, and according to the agreement signed with the shopping mall, theshopping mall collects the payment when the Company's counters sell goods to customers, and the Companyand the shopping mall carry out sales settlement. The shopping mall pays the Company after reconciling withthe Company at the agreed settlement time (generally the next month) and deducting the income and related
expenses enjoyed by the shopping mall. The Company recognizes the sales revenue after deducting thededuction profit belonging to the shopping mall according to the full amount of the completed transaction ofactual sales in the month.
(3) Proprietary e-commerce refers to that the Company retails through third-party e-commerce platforms(such as Tmall and JD.COM), and recognizes the sales revenue when the customer signs for the goods andobtains the payment or payment right.
38.Contract cost
Contract costs include incremental costs incurred in obtaining contract and contract performance costs.
The incremental costs incurred to obtain the contract refer to the costs that the Company would not haveincurred if the contract had not been obtained (e.g., sales commission, etc.). If the cost is expected to berecovered, the Company recognizes it as an asset for the costs of acquiring the contract. Expenses incurred bythe Company in obtaining the contract, other than the incremental costs that are expected to be recovered, areincluded in profit or loss for the current period when incurred.
If the costs incurred for the performance of the contract are not subject to the scope of the relevantstandards such as inventory, fixed assets or intangible assets, and the following conditions are met at the sametime, the Company recognizes them as an asset for contract performance costs:
(1) the cost is directly related to a current or an anticipated contract, including direct labor, direct materials,
manufacturing expenses (or similar expenses), costs expressly borne by the customer and other costs
incurred solely as a result of the contract;
(2) the cost increases the resources that the enterprise will use to fulfill its performance obligations in thefuture;
(3) the cost is expected to be recovered.
The asset as recognized by the cost of acquiring the contract and the asset as recognized by the cost ofperformance of the contract are amortized on the same basis as the revenue recognition of the goods or servicesrelated to the assets, and are included in profit or loss for the current period.
If the carrying amount of an asset related to the contract cost is higher than the following two differences,the Company shall make an impairment provision for the excess and recognize it as an asset impairment loss:
(1) The residual consideration that the enterprise is expected to receive as a result of the transfer ofcommodities related to the asset;
(2) An estimate of the costs to be incurred for the transfer of the relevant goods.
If the factors of impairment in the previous period change subsequently, so that the difference by (1)minus (2) is higher than the carrying amount of the asset, the original provision for impairment of the asset shallbe reversed and included in the profit or loss for the current period, but the carrying amount of the reversedasset shall not exceed the carrying amount of the asset on the reversal date assuming that no provision forimpairment is made.
39. Government subsidies
1. Types of government subsidies
Government subsidies refer to the monetary assets or non-monetary assets obtained by the company fromthe government free of charge, including government subsidies related to assets and government subsidiesrelated to income.Asset-related government subsidies refer to government subsidies obtained by a company for theacquisition, construction or other formation of long-term assets.Income-related government subsidies refer to government subsidies other than asset-related governmentsubsidies.
2. The principle and timing of recognition of government subsidies
Recognition principle of government subsidies:
(1) The company is able to meet the conditions attached by the government subsidy;
(2) The company is able to receive government subsidies.
The government subsidy can only be recognized if the above conditions are met at the same time.
3. Measurement of government subsidies
(1) If the government subsidy is a monetary asset, the company shall measure it according to the amountreceived or receivable;
(2) If the government subsidy is a non-monetary asset, the company shall measure it at fair value, and ifthe fair value cannot be reliably obtained, it shall be measured at the notional amount (the notional amount isRMB 1).
4. Accounting treatment of government subsidies
(1) Asset-related government subsidies are written off the carrying amount of the underlying assets orrecognized as deferred income upon acquisition. If it is recognized as deferred income, it shall be included inprofit or loss in installments in accordance with a reasonable and systematic method during the useful life of therelevant asset. Government subsidies measured in notional amounts are directly included in profit or loss for thecurrent period.
(2) Government subsidies related to income shall be handled as follows:
A. If it is used to compensate the company for the relevant costs, expenses or losses in subsequent periods,it shall be recognized as deferred income at the time of acquisition, and shall be included in the profit or loss forthe current period or offset the relevant costs during the period when the relevant costs, expenses or losses arerecognized.
B. If it is used to compensate for the relevant costs, expenses or losses incurred by the company, it shall bedirectly included in the current profit or loss or offset the relevant costs when acquired.
(3) For government subsidies that are included in both the asset-related part and the income-related part, ifthey can be distinguished, they shall be accounted for separately in different parts, and if it is difficult todistinguish, they shall be classified as income-related government subsidies as a whole.
(4) Government subsidies related to the company's routine operations shall be included in other income oroffset related costs and expenses according to the economic business substance. Government subsidiesunrelated to the company's routine activities are included in non-operating income and expenditure. If thefinance department directly allocates the discount funds to the company, the company will offset the relevantborrowing costs with the corresponding discount.
(5) If the confirmed government subsidy needs to be returned, it shall be handled according to thefollowing circumstances:
A. If the carrying amount of the relevant asset is reduced at the time of initial recognition, the carryingamount of the asset shall be adjusted.B. If there is relevant deferred income, the carrying amount of the relevant deferred income shall be writtenoff, and the excess part shall be included in the profit or loss for the current period.C. If it belongs to other circumstances, it shall be directly included in the profit or loss for the current period.
40. Deferred tax assets/deferred tax liabilities
When the company acquires assets and liabilities, it determines its tax base. If there is a temporarydifference between the carrying amount of assets and liabilities and their tax base, the deferred tax assets ordeferred tax liabilities arising from them shall be recognized in accordance with the regulations.
1. Recognition of deferred tax assets
(1) The company recognizes deferred tax assets arising from deductible temporary differences to theextent that it is likely to obtain taxable income that can be used to offset deductible temporary differences.However, deferred tax assets arising from the initial recognition of assets or liabilities are not recognized intransactions that (1) is not a business combination, and (2) the transaction does not affect either accountingprofits or taxable income (or deductible losses) at the time of the transaction.
(2) The Company recognizes the corresponding deferred tax assets for deductible temporary differencesrelated to investments in subsidiaries, associates and joint ventures that meet the following conditions at thesame time: (1) the temporary differences are likely to be reversed in the foreseeable future, and (2) the taxableincome used to offset the deductible temporary differences is likely to be obtained in the future.
(3) For deductible losses and tax credits that can be carried forward to subsequent years in accordancewith the provisions of the tax law, they shall be treated as deductible temporary differences, and thecorresponding deferred tax assets shall be recognized to the extent that the future taxable income that is likely tobe used to offset the deductible losses and tax credits.
2. Recognition of deferred tax liabilities
(1) The company recognizes all deferred tax liabilities arising from taxable temporary differences, exceptfor the deferred income tax liabilities arising from the following transactions: (1) the initial recognition ofgoodwill, and (2) the initial recognition of assets or liabilities arising from transactions that satisfy both thefollowing characteristics: the transaction is not a business combination, and the transaction does not affect eitherthe accounting profit or the taxable income (or deductible loss) at the time of the transaction.
(2) The Company recognizes the corresponding deferred tax liabilities for taxable temporary differencesrelated to investments in subsidiaries, associates and joint ventures, but other than those with the followingconditions are met at the same time: (1) the investment enterprise can control the time for the reversal of thetemporary difference, and (2) the temporary difference is likely not to be reversed in the foreseeable future.
3. Presentation of net offsets of deferred tax assets and deferred tax liabilities
When the company has the legal right to settle on a net basis and intends to settle on a net basis or acquireassets and settle liabilities at the same time, the company's current income tax assets and current income taxliabilities are presented on a net basis after offset.
When there is a legal right to settle the current income tax assets and current income tax liabilities on a netbasis, and the deferred tax assets and deferred tax liabilities are related to the income tax levied by the same taxcollection and administration department on the same taxpayer or levied by the same tax collection andadministration department to different tax subjects, but in each period of reversal of deferred tax assets andliabilities of material nature in the future, the taxpayer involved intends to settle the current income tax assetsand liabilities on a net basis or acquire the assets and settle liabilities at the same time, the deferred tax assetsand deferred tax liabilities of the Company are presented on a net basis after offset.
41. Leasing
(1) Accounting treatment as a lessee lease
(1) Right-of-use assets
On the commencement date of the lease term, the Company, as the lessee, recognizes the right to use theleased asset during the lease term as right-of-use asset, except for short-term leases and leases of low-valueassets.
Right-of-use assets are initially measured at cost, which includes:
A. Initial measurement amount of the lease liability;
B. If there is a lease incentive for the lease payment paid on or before the start date of the lease term, therelevant amount of the lease incentive already enjoyed shall be deducted;
C. Initial direct costs incurred;
D. Costs expected to be incurred to dismantle and remove the leased asset, restore the site on which theleased asset is located, or restore the leased asset to the condition agreed in the lease terms, except for theproduction of inventory.
The Company adopts the cost model for the subsequent measurement of right-of-use assets, and adopts thestraight-line method for depreciation of various types of right-of-use assets.
If the Company is able to reasonably determine that the ownership of the leased assets will be acquired atthe expiration of the lease term, the depreciation shall be accrued during the remaining useful life of the leasedassets, and if it cannot be reasonably determined that the ownership of the leased assets can be acquired at theexpiration of the lease term, the depreciation shall be accrued during the period which is shorter from the leaseterm and the remaining useful life of the leased assets. If the right-of-use asset is impaired, the Company willcarry out subsequent depreciation based on the carrying amount of the right-of-use asset after deducting theimpairment loss.
When the Company remeasures lease liabilities based on the present value of the changed lease paymentsand adjusts the carrying amount of right-of-use assets accordingly, if the carrying amount of right-of-use assetshas been reduced to zero, but the lease liabilities still need to be further reduced, the remaining amount will beincluded in profit or loss for the current period.
The impairment test method and impairment provision method of right-of-use assets are detailed in(XXVII) Impairment of long-term assets of this accounting policy.
(2) Lease liabilities
At the commencement date of the lease term, the Company recognizes the present value of unpaid leasepayments as lease liabilities, excluding short-term leases and leases of low-value assets.
When calculating the present value of the lease payment, the Company, as the lessee, uses the interest rateimplicit in the lease as the discount rate, and if the interest rate implicit in the lease cannot be determined, theincremental borrowing rate of the Company is used as the discount rate.
The Company calculates the interest expense of lease liabilities for each period of the lease term at a fixedperiodic interest rate and includes them in profit or loss for the current period. Variable lease payments that arenot included in the measurement of lease liabilities are recognized in profit or loss for the current period whenthey are actually incurred.
After the commencement date of the lease term, the Company will remeasure the lease liability based onthe present value of the changed lease payment in the event of a change in the amount of the substantial fixedpayment, a change in the estimated amount payable for the residual value of the guarantee, a change in theindex or ratio used to determine the amount of the lease payment, a change in the evaluation result or actualexercise of the option to purchase, renew or terminate the option.
(3) Short-term leases and leases of low-value assets
A short-term lease is a lease with a lease period of not more than 12 months on the start date of the leaseterm and does not include an option to purchase. A lease of a low-value asset refers to a lease with a low valuewhen a single leased asset is a brand-new asset. If the Company subleases or expects to sublease the leasedassets, the original lease is not a low-value asset lease.
The Company chooses not to recognize right-of-use assets and lease liabilities for short-term leases andleases of low-value assets, and to include the relevant lease payments in profit or loss or the cost of relatedassets on a straight-line basis for each period of the lease term.
（2） Accounting treatment as a lessor's lease
On the lease commencement date, the Company divides the lease into the finance lease and the operatinglease. A financial lease refers to a lease that substantially transfers almost all of the risks and rewards associatedwith the ownership of the leased asset, regardless of whether the ownership is ultimately transferred. Operatingleases refer to leases other than financial leases. When the Company acts as a subleaselessor, it classifies thesublease based on the right-of-use assets generated from the original lease.
(1) Accounting treatment of operating leases
Lease receipts from operating leases are recognized as rental income on a straight-line basis for eachperiod of the lease term. The Company capitalizes the initial direct expenses incurred in connection with theoperating lease and apportion them to profit or loss for the current period on the same basis as the rental incomerecognition during the lease term. Variable lease payments that are not included in lease receipts are recognizedin profit or loss for the current period when they are actually incurred.
(2) Accounting treatment of financial leases
On the lease commencement date, the Company recognizes the financial lease receivables for the financiallease and terminates the recognition of the financial lease assets. When the Company initially measures thefinancial lease receivables, the net lease investment is recorded as the entry value of the financial leasereceivables. The net lease investment is the sum of the unsecured residual value and the present value of leasereceipts not yet received at the start date of the lease term discounted at the interest rate implicit in the lease.
The Company calculates and recognizes interest income for each period of the lease term at a fixedperiodic interest rate. The derecognition and impairment of financial lease receivables are described in (Xl)Financial instruments of this accounting policy.
Variable lease payments that are not included in the net measurement of lease investments are recognizedin profit or loss for the period when they are actually incurred.
42. Other important accounting policy and estimation
43. Changes of important accounting policy and estimation
(1) Changes of important accounting policy
□Applicable ?Not applicable
(2) Changes of important accounting estimation
□Applicable ?Not applicable
（3） The Company started implementing the updated accounting standards commencing from 2024and adjusted the relevant items in the financial statements at the beginning of the very year involved inthe initial implementation of the said standards
□Applicable ?Not applicable
44.Other
Nil
VI. Taxes
1. Main tax and tax rate
| Type of tax | Tax calculation evidence | Tax rate |
| Value added tax | Sales of goods, taxable labor service revenue, taxable income, intangible assets income and income from property leasing | 5%,6%,9%,13% |
| City maintenance & construction tax | VAT payable | 7% |
| Enterprise income tax | Taxable income | See below for details |
| Education Fee Surcharge | VAT payable | 3% |
| Local education fee surcharge | VAT payable | 2% |
Disclose reasons for different taxpaying body
| Taxpaying body | Income tax rate |
| Shenzhen China Bicycle Company (Holdings) Co., Ltd. | 0.25 |
| Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd | 0.25 |
| Shenzhen Xinsen Precision Manufacturing Co.,Ltd. | 0.2 |
| Shenzhen Emmelle Industrial Co., Ltd. | 0.2 |
| Shenzhen Emmelle Cloud Technology Co., Ltd. | 0.2 |
| Fujian Huaxinbao Jewelry Co., Ltd. | 0.2 |
| Shenzhen Huabao Zhenxuan Jewelry Co., Ltd. | 0.2 |
| Hainan Shenhua Industry Co., Ltd. | 0.2 |
| Tibet Jinyaya Trading Co., Ltd. | 0.2 |
| Shenzhen Yunyouxuan Jewelry Technology Co., Ltd. | 0.2 |
| Dongguan Xinsen Jewelry Co., Ltd. | 0.2 |
| Hangzhou Huabaohui Digital culture Co., Ltd. | 0.2 |
2. Tax preference
The subsidiaries/sub-subsidiaries Shenzhen Xinsen Precision Manufacturing Co., Ltd., Shenzhen EmmelleIndustry Co., Ltd., Shenzhen Emmelle Cloud Technology Co., Ltd., Fujian Huaxinbao Jewelry Co., Ltd.,Shenzhen Huabao Zhenxuan Jewelry Co., Ltd., Hainan Shenhua Industry Co., Ltd., Tibet Jinyaya Trading Co.,Ltd., Shenzhen Yunyouxuan Jewelry Technology Co., Ltd., Dongguan Xinsen Jewelry Co., Ltd. and HangzhouHuabaohui Digital Culture Co., Ltd. meet the conditions of "small enterprise with low profits". According toAnnouncement No.12 of the State Taxation Administration of the Ministry of Finance in 2023, Announcementon Relevant Tax and Fee Policies for Further Supporting the Development of Small and Micro Enterprises andIndividual Businesses, the taxable income of small enterprises with low profits is calculated at a reduced rate of25%, and the enterprise income tax is paid at a rate of 20%, which will be implemented until December 31,2027.
3.Other
NilVII. Notes to Items in the Consolidated Financial Statements
1. Monetary fund
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| Cash on hand | 33,597.75 | 13,955.25 |
| Bank deposit | 24,485,123.52 | 54,134,719.15 |
| Other monetary fund | 646,837.10 | |
| Total | 25,165,558.37 | 54,148,674.40 |
Other note：
The other monetary funds in the opening balance of RMB 566,435.02 are frozen funds in litigation.
2. Trading financial assets
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| Including: | ||
| Including: |
Other note：
3. Derivative financial assets
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
Other note：
4. Note receivable
(1) Category
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| Bank acceptance bill | 0.00 | 0.00 |
| Commercial acceptance bill | 0.00 | 0.00 |
（2） According to the bad debt provision method classification disclosure
Unit: RMB/CNY
| Category | Ending balance | Opening balance | ||||||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
| Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||
| Including: | ||||||||||
| Including: | ||||||||||
If the provision for bad debts of notes receivable is made in accordance with the general model of expectedcredit losses, please refer to the disclosure of other account receivable to disclose related information about bad-debt provisions:
□Applicable ?Not applicable
(3) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
Unit: RMB/CNY
| Category | Opening balance | Current changes | Ending balance | |||
| Accrual | Collected or reversal | Write off | Other | |||
Including important amount of bad debt provision collected or reversal in the period:
□Applicable ?Not applicable
(4) Note receivable pledged at period-end
Unit: RMB/CNY
| Item | Amount pledged at period-end |
(5) Note receivable which have endorsed and discount at period-end and has not expired on balance sheetdate
Unit: RMB/CNY
| Item | Amount derecognition at period-end | Amount not derecognition at period-end |
(6) Note receivable actually written-off in the period
Unit: RMB/CNY
| Item | Amount written off |
Including important note receivable written-off:
Unit: RMB/CNY
| Enterprise | Nature | Amount written off | Causes | Procedure | Amount cause by related transactions or not (Y/N) |
Explanation on note receivable written-off:
5. Account receivable
(1)Category
（1）Disclosure according to the aging of accountBy account age
Unit: RMB/CNY
| Aging | Balance in year-end | Balance Year-beginning |
| Within one year(one year included) | 231,237,174.94 | 193,373,233.68 |
| 1-6 months | 217,056,912.12 | 192,466,106.48 |
| 7-12 months | 14,180,262.82 | 907,127.20 |
| 1-2 years | 13,070,098.35 | 13,036,723.35 |
| 2-3 years | 11,266,027.02 | 10,764,196.13 |
| Over 3 years | 3,564,121.31 | 4,153,455.77 |
| 3-4 years | 1,264,775.39 | 1,812,809.85 |
| 4-5 years | 917,542.00 | 966,132.00 |
| Over 5 years | 1,381,803.92 | 1,374,513.92 |
| Total | 259,137,421.62 | 221,327,608.93 |
（2） According to the bad debt provision method classification disclosure
Unit: RMB/CNY
| Category | Amount in year-end | Balance Year-beginning | ||||||||
| Book Balance | Bad debt provision | Book value | Book Balance | Bad debt provision | Book value | |||||
| Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | |||
| Accrual of bad debt provision by single | 26,497,539.97 | 10.23% | 23,862,560.33 | 90.06% | 2,634,979.64 | 26,538,839.97 | 11.99% | 23,902,000.33 | 90.06% | 2,636,839.64 |
| Including： | ||||||||||
| Single identification | 26,497,539.97 | 10.23% | 23,862,560.33 | 90.06% | 2,634,979.64 | 26,538,839.97 | 11.99% | 23,902,000.33 | 90.06% | 2,636,839.64 |
| Accrual of bad debt provision by portfolio | 232,639,881.65 | 89.77% | 729,418.38 | 0.31% | 231,910,463.27 | 194,788,768.96 | 88.01% | 1,132,475.60 | 0.58% | 193,656,293.36 |
| Including： | ||||||||||
| Aging portfolio | 232,639,881.65 | 89.77% | 729,418.38 | 0.31% | 231,910,463.27 | 194,788,768.96 | 88.01% | 1,132,475.60 | 0.58% | 193,656,293.36 |
| Related Portfolio | ||||||||||
| Total | 259,137,421.62 | 100.00% | 24,591,978.71 | 9.49% | 234,545,442.91 | 221,327,608.93 | 100.00% | 25,034,475.93 | 11.31% | 196,293,133.00 |
Bad debt provision accrual on single basis: Single identification
Unit: RMB/CNY
| Name | Opening balance | Ending balance | ||||
| Book balance | Bad debt provision | Book balance | Bad debt provision | Accrual ratio | Reason for accrual | |
| Guangshui Jiaxu Energy Technology Co., Ltd. | 22,019,832.63 | 19,817,849.37 | 22,019,832.63 | 19,817,849.37 | 90.00% | Expected to be difficult to recover |
| Suzhou | 915,394.42 | 732,315.54 | 906,094.42 | 724,875.54 | 80.00% | Expected to be |
| Daming Vehicle Industry Co., Ltd. | difficult to recover | |||||
| Suzhou Jiaxin Economic Trade Co., Ltd. | 888,757.00 | 888,757.00 | 888,757.00 | 888,757.00 | 100.00% | Expected to be difficult to recover |
| Dongguan Daxiang New Energy Co., Ltd. | 626,734.00 | 626,734.00 | 594,734.00 | 594,734.00 | 100.00% | Expected to be difficult to recover |
| Ningbo Fanxing New Energy Technology Co., Ltd. | 503,555.00 | 251,777.50 | 503,555.00 | 251,777.50 | 50.00% | Expected to be difficult to recover |
| Shijiazhuang Dasong Tech. Co., Ltd | 497,064.00 | 497,064.00 | 497,064.00 | 497,064.00 | 100.00% | Expected to be difficult to recover |
| Guangdong Xinlingjia New Energy Co., Ltd. | 348,136.00 | 348,136.00 | 348,136.00 | 348,136.00 | 100.00% | Expected to be difficult to recover |
| Shanghai Siwen Electric Vehicle Co., Ltd. | 280,197.50 | 280,197.50 | 280,197.50 | 280,197.50 | 100.00% | Expected to be difficult to recover |
| Fuzhou Dayang Commercial Co., Ltd. | 147,804.28 | 147,804.28 | 147,804.28 | 147,804.28 | 100.00% | Expected to be difficult to recover |
| Tianjin Huiju Electric Vehicle Co., Ltd. | 116,840.14 | 116,840.14 | 116,840.14 | 116,840.14 | 100.00% | Expected to be difficult to recover |
| Other | 194,525.00 | 194,525.00 | 194,525.00 | 194,525.00 | 100.00% | Expected to be difficult to recover |
| Total | 26,538,839.97 | 23,902,000.33 | 26,497,539.97 | 23,862,560.33 |
Bad debt provision accrual on portfolio: Aging portfolio
Unit: RMB/CNY
| Name of the Company | Ending balance | ||
| Book balance | Bad debt provision | Accrual ratio | |
| 1-6 months | 217,056,912.12 | 222,700.44 | 0.10% |
| 7-12 months | 14,023,262.62 | 253,847.01 | 1.81% |
| Within 1 year | 231,080,174.74 | 476,547.44 | 0.21% |
| 1-2 years | 1,557,982.80 | 251,146.82 | 16.12% |
| 2-3 years | |||
| 3-4 years | 1,724.11 | 1,724.11 | 100.00% |
| Total | 232,639,881.65 | 729,418.38 | |
Explanation on portfolio basis:
If the provision for bad debts of account receivable is made in accordance with the general model of expectedcredit losses, please refer to the disclosure of other account receivable to disclose related information about bad-debt provisions:
□Applicable?Not applicable
(3) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
Unit: RMB/CNY
| Category | Opening balance | Current changes | Ending balance | |||
| Accrual | Collected or reversal | Write off | Other | |||
| Accounts receivable with individual provision for bad debts | 23,902,000.33 | 39,440.00 | 23,862,560.33 | |||
| Provision for bad debts based on a portfolio of credit risk characteristics | 1,132,475.60 | 403,057.22 | 729,418.38 | |||
| Total | 25,034,475.93 | 442,497.22 | 24,591,978.71 | |||
Including important amount of bad debt provision collected or reversal in the period:
Unit: RMB/CNY
| Name of the organization | Amount recovered or reversed | Reason for reversal | Recovery method | The basis and rationality for determining the provision ratio of original bad debt provision |
(4) Account receivables actually write-off during the reporting period
Unit: RMB/CNY
| Item | Amount written off |
Including major account receivables write-off:
Unit: RMB/CNY
| Enterprise | Nature | Amount written off | Causes | Procedure | Amount cause by related transactions or not (Y/N) |
Explanation on account receivable write-off:
（5）The top five accounts receivable and contract assets at the end of the period aggregated accordingto debtor
Unit: RMB/CNY
| Name of the organization | Ending balance of accounts receivable | Ending balance of contract assets | Ending balance of accounts receivable and contract assets | Proportion to the total ending balance of accounts receivable and contract assets | Ending balance of accounts receivable bad debt provision and contract asset impairment provision |
| Fuxhou Cangshan Dingjue Jewelry | 64,641,636.47 | 0.00 | 64,641,636.47 | 24.94% | 53,410.54 |
| Company | |||||
| Shenzhen Yunshang Jewelry Co., Ltd. | 53,804,174.39 | 0.00 | 53,804,174.39 | 20.76% | 37,662.92 |
| Fuzhou Zhuanjin Jewelry Co., Ltd. | 29,378,138.76 | 0.00 | 29,378,138.76 | 11.34% | 20,564.70 |
| Fuzhou Rongrun Jewelry Co., Ltd | 28,456,461.47 | 0.00 | 28,456,461.47 | 10.98% | 21,974.74 |
| Shenzhen Hualinglong Jewelry Culture Technology Co., Ltd | 27,777,456.95 | 0.00 | 27,777,456.95 | 10.72% | 22,009.10 |
| Total | 204,057,868.04 | 0.00 | 204,057,868.04 | 78.74% | 155,622.00 |
6. Contract assets
(1) Information of contract assets
Unit: RMB/CNY
| Item | Ending balance | Opening balance | ||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |
(2) The significant amount change in book value during the reporting period and its reason
Unit: RMB/CNY
| Item | The amount of change | Reason for change |
（3） According to the bad debt provision method classification disclosure
Unit: RMB/CNY
| Category | Amount in year-end | Balance Year-beginning | ||||||||
| Book Balance | Bad debt provision | Book value | Book Balance | Bad debt provision | Book value | |||||
| Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | |||
| Inducing | ||||||||||
| Including | ||||||||||
Provision for bad debts is made according to the general model of expected credit losses
□Applicable ?Not applicable
(4) Bad debt provision accrual, collected or reversal in the period
Unit: RMB/CNY
| Item | Accrual | Collected or reversal | Write off | Reason |
Thereinto, the important amount of bad debt provision recovered or reversed in the current period:
Unit: RMB/CNY
| Name of the organization | Amount recovered or reversed | Reason for reversal | Recovery method | The basis and rationality for determining the provision ratio of original bad debt provision |
Other note：
（5） Contract assets actually written off in the current period
Unit: RMB/CNY
| Item | Amount written off |
Including important Contract asset written-off:
Unit: RMB/CNY
| Name | Nature of amount | Write-off amount | Reason for write-off | Write-off procedures for fulfillment | Whether the payment is generated by a related party transaction |
Write-off explanation:
Other note：
7. Receivable financing
（1） Classification of receivables financing
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
（2） According to the bad debt provision method classification disclosure
Unit: RMB/CNY
| Category | Amount in year-end | Balance Year-beginning | ||||||||
| Book Balance | Bad debt provision | Book value | Book Balance | Bad debt provision | Book value | |||||
| Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | |||
| Inducing | ||||||||||
| Including | ||||||||||
Provision for bad debts is made according to the general model of expected credit losses
Unit: RMB/CNY
| Bad debt provision | Phase I | Phase II | Phase III | Total |
| Expected credit losses | Expected credit losses | Expected credit losses |
| over next 12 months | for the entire duration (without credit impairment occurred) | for the entire duration (with credit impairment occurred) | ||
| January 1, 2024 balance in the current period |
The basis for the division of each stage and the proportion of bad debt provision
Explanation of the significant changes in the book balance of receivables financing with changes in lossprovisions in the current period:
（3） Bad debt provision accrual, collected or reversal in the period
Unit: RMB/CNY
| Category | Opening balance | Current changes | Ending balance |
Thereinto, the important amount of bad debt provision recovered or reversed in the current period:
Unit: RMB/CNY
| Name of the organization | Amount recovered or reversed | Reason for reversal | Recovery method | The basis and rationality for determining the provision ratio of original bad debt provision |
Other note：
（4）Financing of accounts receivable pledged by the Company at the end of the period
Unit: RMB/CNY
| Item | Pledged amount at the end of the period |
（5）Financing of accounts receivable that have been endorsed or discounted by the Company at the endof the period and have not yet matured on the balance sheet date
Unit: RMB/CNY
| Item | The amount of derecognition at the end of the period | The amount not derecognized at the end of the period |
（6） Financing situation of accounts receivable actually written off in this period
Unit: RMB/CNY
| Item | Write-off amount |
The write off information of important accounts receivable financing thereinto
Unit: RMB/CNY
| Name | Nature of amount | Write-off amount | Reason for write-off | Write-off procedures for fulfillment | Whether the payment is generated by a related party transaction |
Write-off explanation:
(7) Changes in accounts receivable financing and fair value changes in the current period
（8）Other note
8. Other account receivable
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| Other account receivable | 697,860.12 | 12,868,327.03 |
| Total | 697,860.12 | 12,868,327.03 |
(1) Interest receivable
1) Category
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
2) Important overdue interest
Unit: RMB/CNY
| Borrower | Ending balance | Overdue time | Overdue reason | Impairment (Y/N) and judgment basis |
Other note:
3) Accrual of bad debt provision
□Applicable ?Not applicable
4） Bad debt provision accrual, collected or reversal in the period
Unit: RMB/CNY
| Category | Opening balance | Current changes | Ending balance | |||
| Accrual | Collected or reversal | Write off | Other | |||
Including important amount of bad debt provision collected or reversal in the period:
Unit: RMB/CNY
| Name of the organization | Amount recovered or reversed | Reason for reversal | Recovery method | The basis and rationality for determining the provision ratio of original bad debt provision |
Other note：
5)Interest receivable actually written off in the current period
Unit: RMB/CNY
| Item | Write-off amount |
Important Interest receivables write-offs thereinto
Unit: RMB/CNY
| Name | Nature of amount | Write-off amount | Write-off reason | Write-off procedures for fulfillment | Whether the payment is generated by a related party transaction |
Note：
Other note：
(2) Dividend receivable
1) Category
Unit: RMB/CNY
| Item (or the invested entity) | Ending balance | Opening balance |
2) Important dividend receivable with over one year aged
Unit: RMB/CNY
| Item (or the invested entity) | Ending balance | Account age | Causes of failure for collection | Impairment (Y/N) and judgment basis |
3) Accrual of bad debt provision
□Applicable ?Not applicable
4） Bad debt provision accrual, collected or reversal in the period
Unit: RMB/CNY
| Category | Opening balance | Current changes | Ending balance | |||
| Accrual | Collected or reversal | Write off | Other | |||
Including important amount of bad debt provision collected or reversal in the period:
Unit: RMB/CNY
| Name of the organization | Amount recovered or reversed | Reason for reversal | Recovery method | The basis and rationality for determining the provision ratio of original bad debt provision |
Other note：
5) Dividends receivable actually written off in the current period
Unit: RMB/CNY
| Item | Write-off amount |
Important dividend receivables write-offs thereinto
Unit: RMB/CNY
| Name | Nature of amount | Write-off amount | Write-off reason | Write-off procedures for fulfillment | Whether the payment is generated by a related party transaction |
Note：
Other note：
(3) Account receivable
1) By nature
Unit: RMB/CNY
| Nature | Ending book balance | Opening book balance |
| Performance compensation | 12,098,051.76 | |
| Deposit or margin | 524,345.30 | 461,321.30 |
| Personal loan of employees | 297,817.61 | 15,865.25 |
| Payment for equipment | 311,400.00 | 311,400.00 |
| Current account | 180,923.78 | 410,737.50 |
| Other | 0.00 | 0.00 |
| Total | 1,314,486.69 | 13,297,375.81 |
2）By account aging
Unit: RMB/CNY
| Aging | Ending book balance | Opening book balance |
| Within one year(one year included) | 565,469.81 | 12,747,197.43 |
| 1-2 years | 312,285.88 | 123,447.38 |
| 2-3 years | 10,000.00 | |
| Over 3 years | 426,731.00 | 426,731.00 |
| 3-4 years | 15,831.00 | 15,831.00 |
| 4-5 years | 0 | |
| Over 5 years | 410,900.00 | 410,900.00 |
| Total | 1,314,486.69 | 13,297,375.81 |
3) Accrual of bad debt provision
□Applicable?Not applicable
4）Bad debt provision accrual, collected or reversal in the periodAccrual of bad debt provision in the period:
Unit: RMB/CNY
| Category | Opening balance | Current changes | Ending balance | |||
| Accrual | Collected or reversal | Write off | Other | |||
| Provision for bad debts according to the combination of credit risk | 429,048.78 | 187,577.79 | 616,626.57 | |||
| Total | 429,048.78 | 187,577.79 | 616,626.57 | |||
Including important amount of bad debt provision collected or reversal in the period:
Important amount of bad debt provision switch-back or collection in the period:
Unit: RMB/CNY
| Name of the organization | Amount recovered or reversed | Reason for reversal | Recovery method | The basis and rationality for determining the provision ratio of original bad debt provision |
5） Other account receivables actually write-off during the reporting period
Unit: RMB/CNY
| Item | Amount written off |
Including major other account receivables write-off:
Unit: RMB/CNY
| Enterprise | Other Nature | Amount written off | Causes | Procedure | Amount cause by related |
transactions or not(Y/N)
Other Note on account receivable write-off:
6） Top 5 other account receivable collected by arrears party at ending balance
Unit: RMB/CNY
| Enterprise | Nature | Ending balance | Account age | Proportion in total other account receivables at period-end | Ending balance of bad bet provision |
| Shenzhen Luwei Mechatronic Equipment Co., Ltd | Payment for equipment | 300,000.00 | Within 5 years | 22.82% | 300,000.00 |
| Shenzhen Luohu Government Property Management Office | Margin or deposit | 161,349.10 | 1－2 years（Within one year(2 years included) | 12.27% | 51,809.20 |
| Chow Tai Seng Jewelry Co., Ltd. | Margin or deposit | 100,000.00 | Within one year(one year included) | 7.61% | 14,600.00 |
| Guangdong Shenzhen Luohu People’s Court | Current account | 79,473.00 | 1－2 years（Within one year(2 years included) | 6.05% | 25,518.78 |
| Hubei Guangshui People’s Court | Current account | 52,816.00 | Within one year(one year included) | 4.02% | 7,711.14 |
| Total | 693,638.10 | 52.77% | 399,639.12 |
7) Reported in other receivables due to centralized management of funds
Other note：
9. Accounts paid in advance
(1) Accounts paid in advance by ageing
Unit: RMB/CNY
| Account age | Ending balance | Opening balance | ||
| Amount | Ratio | Amount | Ratio | |
| Within one year | 1,549,358.48 | 41.00% | 3,821,181.16 | 100.00% |
| 1-2 years | 2,256,987.95 | 59.00% | ||
| Total | 3,806,346.43 | 3,821,181.16 | ||
Explanation on un-settlement in time for advance payment with over one year account age and major amounts:
Nil
(2) Top 5 advance payment at ending balance by prepayment object
| Name | Ending balance | Ratio in total advance e payment(%) |
| Shenzhen Tielbo Co., Ltd. | 2,256,987.95 | 59.3 |
| Zhouliufu Jewelry Co., Ltd. | 872,485.54 | 22.92 |
| Fujian Hengsheng Jewelry Co., ltd. | 520,000.00 | 13.66 |
| Shenzhen Thinking Jewelry Display Products Co., Ltd | 99,746.00 | 2.62 |
| Shenzhen Cuilu Gold Business | 25,377.31 | 0.67 |
| Total | 3,774,596.80 | 99.17 |
Other note
10. Inventory
Whether companies need to comply with the disclosure requirements of the real estate industryNo
(1) Category
Unit: RMB/CNY
| Item | Ending balance | Opening balance | ||||
| Book balance | Provision for inventory depreciation or contract performance cost impairment provision | Book value | Book balance | Provision for inventory depreciation or contract performance cost impairment provision | Book value | |
| Raw materials | 33,206,703.08 | 164,842.97 | 33,041,860.11 | 42,904,972.44 | 172,966.47 | 42,732,005.97 |
| Goods inventory | 47,158,698.50 | 374,193.87 | 46,784,504.63 | 36,248,964.02 | 476,356.57 | 35,772,607.45 |
| Consigned processing materials | 8,287,256.01 | 8,287,256.01 | 3,411,425.72 | 3,411,425.72 | ||
| Total | 88,652,657.59 | 539,036.84 | 88,113,620.75 | 82,565,362.18 | 649,323.04 | 81,916,039.14 |
The Company shall comply with the disclosure requirement of jewelry-related industries in the “ShenzhenStock Exchange Self-Regulatory Guidelines for Listed Companies No. 3- Industry Disclosure”
（2）Data resources recognized as inventory
Unit: RMB/CNY
| Items | Inventory of outsourced data resources | Inventory of self processed data resources | Inventory of data resources obtained by other means | Total |
(3)Provision for inventory depreciation or contract performance cost impairment provision
Unit: RMB/CNY
| Item | Opening balance | Current increased | Current decreased | Ending balance | ||
| Accrual | Other | Switch back or charge-off | Other | |||
| Raw materials | 172,966.47 | 8,123.50 | 164,842.97 | |||
| Goods inventory | 476,356.57 | 102,162.70 | 374,193.87 | |||
| Total | 649,323.04 | 110,286.20 | 539,036.84 | |||
Provision for inventory price decline that is made on a portfolio basis
Unit: RMB/CNY
| Portfolio Name | End of period | Beginning of period | ||||
| Ending balance | Provision for price decline | Proportion of provision for price decline | Opening balance | Provision for price decline | Proportion of provision for price decline | |
The standard for accruing the provision for inventory price decline by portfolio
(4) The explanation of the ending balance of the inventory contains the capitalized amount of borrowingcosts
(5) Explanation of the amortization amount of contract performance costs for the current period
11. Assets held for sale
Unit: RMB/CNY
| Item | Ending book balance | Impairment provision | Ending book value | Fair value | Expected disposal expenses | Expected disposal time |
Other note:
12. Non-current asset due within one year
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
（1） Debt investment due within one year
□Applicable ?Not applicable
（2）Other Debt investment due within one year
□Applicable ?Not applicable
13. Other current assets
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| Input tax to be deducted | 4,336,668.75 | 208,524.06 |
| Advance payment of enterprise income tax | 193,128.35 | |
| Tax amount to be received | 1,313,637.64 | 10,814,443.03 |
| Total | 5,650,306.39 | 11,216,095.44 |
Other note：
14. Debt investment
（1）Debt investment
Unit: RMB/CNY
| Item | Ending balance | Opening balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
Changes in impairment provisions for debt investments in the current period
Unit: RMB/CNY
| Item | Opening balance | Increase in thecurrent period | Decrease in the current period | Ending balance |
（2） Important debt investment
Unit: RMB/CNY
| Debt investment | Ending balance | Opening balance | ||||||
| Face value | Coupon rate | Actual rate | Due date | Face value | Coupon rate | Actual rate | Due date | |
（3） Accrual of impairment provision
Unit: RMB/CNY
| Bad debt provision | Phase I | Phase II | Phase III | Total |
| Expected credit losses over next 12 months | Expected credit losses for the entire duration (without credit impairment occurred) | Expected credit losses for the entire duration (with credit impairment occurred) | ||
| January 1, 2024 balance in the current period |
The basis for the division of each stage and the proportion of bad debt provision
(4) Information of debt investment actually written off in the current period
Unit: RMB/CNY
| Item | Write-off amount |
Information of write-off of important debt investments thereintoDebt Investment Write-off Explanation:
Change of book balance of loss provision with amount has major changes in the period
□Applicable ?Not applicable
Other note：
15. Other debt investment
（1）Other debt investment
Unit: RMB/CNY
| Item | Opening balance | Accrued interest | Change of fair value in the period | Ending balance | Cost | Cumulative changes of fair value | Cumulative loss impairment recognized in other comprehensive income | Note |
Important other debt investment
Changes in provision for impairment of other debt investments in the current period
Unit: RMB/CNY
| Item | Opening balance | Increase in the current period | Decrease in the current period | Ending balance |
（2） Important debt investment
Unit: RMB/CNY
| Debt investment | Ending balance | Opening balance | ||||||
| Face value | Coupon rate | Actual rate | Due date | Face value | Coupon rate | Actual rate | Due date | |
（3） Accrual of impairment provision
Unit: RMB/CNY
| Bad debt provision | Phase I | Phase II | Phase III | Total |
| Expected credit losses over next 12 months | Expected credit losses for the entire duration (without credit impairment occurred) | Expected credit losses for the entire duration (with credit impairment occurred) | ||
| January 1, 2024 balance in the current period |
The basis for the division of each stage and the proportion of bad debt provision
（4）Other debt investments actually written off during the period
Unit: RMB/CNY
| Item | Write-off amount |
Other important debt investment write-offs thereintoExplanation for write-off of other debt investments:
Change of book balance of loss provision with amount has major changes in the period
□Applicable ?Not applicable
Other note：
16. Investment in other equity instrument
Unit: RMB/CNY
| Item name | Ending balance | Opening balance | Gains recognized in other comprehensive income for the current period | Loss recognized in other comprehensive income for the current period | Accumulated gains recognized in other comprehensive income at the end of the current period | Accumulated losses recognized in other comprehensive income at the end of the current period | Dividend income recognized in the current period | Reason for designated in fair value measurement with changes recognized in other comprehensive income |
Derecognition incurred in the current period
Unit: RMB/CNY
| Item name | Accumulated gains transferred to retained earnings | Accumulated losses transferred to retained earnings | Reason for derecognition |
Itemized disclosure of investments by non-trading equity instruments for the current period
Unit: RMB/CNY
| Item name | Recognized dividend income | Accrued gains | Accrued losses | Amount of other comprehensive income transferred to retained earnings | Reason for designated in fair value measurement with changes recognized in other comprehensive income | Reason for other comprehensive income transferred to retained earnings |
Other note：
17. Long-term account receivable
(1) Long-term account receivable
Unit: RMB/CNY
| Item | Ending balance | Opening balance | Discount rate interval | ||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | ||
（2） According to the bad debt provision method classification disclosure
Unit: RMB/CNY
| Category | Amount in year-end | Balance Year-beginning | ||||||||
| Book Balance | Bad debt provision | Book value | Book Balance | Bad debt provision | Book value | |||||
| Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | |||
| Inducing | ||||||||||
| Including | ||||||||||
Provision for bad debts is made according to the general model of expected credit losses
Unit: RMB/CNY
| Bad debt provision | Phase I | Phase II | Phase II | Total |
| Expected credit losses over next 12 months | Expected credit losses for the entire duration (without credit impairment occurred) | Expected credit losses for the entire duration (with credit impairment occurred) | ||
| January 1, 2024 balance in the current period |
The basis for the division of each stage and the proportion of bad debt provision
(3) Bad debt provision accrual, collected or reversal in the period
Unit: RMB/CNY
| Category | Opening balance | Current changes | Ending balance | |||
| Accrual | Collected or reversal | Write off | Other | |||
The important amount of bad debt provisions reversed or recovered in the current period thereinto:
Unit: RMB/CNY
| Name of the organization | Amount recovered or reversed | Reason for reversal | Recovery method | The basis and rationality for determining the provision ratio of original bad debt provision |
Other note：
(4)Long-term receivables actually written off in the current period
Unit: RMB/CNY
| Item | Write-off amount |
Important long-term accounts receivable write-off status thereinto:
Unit: RMB/CNY
| Name of Organization | Amount Nature | Write-off amount | Write-off reason | Write-off procedures for fulfillment | Whether the payment is generated by a related party transaction |
Explanation of write-off of long-term receivables:
18. Long-term equity investment
Unit: RMB/CNY
| Invested enterprise | Beginning balance | Impairment provision begin- year balance | Changes in the period (+, -) | Ending balance(Book value) | Ending balance of impairment provision | |||||||
| Additional investment | Capital reduction | Investment gains recognized under equity | Other comprehensive income adjustment | Other equity change | Cash dividend or profit announced to issued | Accrual of impairment provision | Other | |||||
| I. Joint venture | ||||||||||||
| Putian Kaipu Technology Partnership( LP) | 0.00 | 30,000.00 | 30,000.00 | |||||||||
| Subtotal | 0.00 | 30,000.00 | 30,000.00 | |||||||||
| II. Associated enterprise | ||||||||||||
| Subtotal | ||||||||||||
| Total | 0.00 | 30,000.00 | 30,000.00 | |||||||||
The recoverable amount is determined on the basis of the net amount of fair value less disposal costs
□Applicable ?Not applicable
The recoverable amount is determined by the present value of the projected future cash flows
□Applicable ?Not applicable
The reason for the obvious discrepancy between the foregoing information and the information used in theimpairment test of previous years or the external informationThe reason for the obvious discrepancy between the information used in the Company's impairment test inprevious years and the actual situation in the current yearOther note
19. Other non-current financial assets
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
Other note：
20. Investment real estate
(1) Investment real estate measured at cost
□Applicable ?Not applicable
(2) Investment real estate measured at fair value
□Applicable ?Not applicable
(3) Converted to investment real estate and measured at fair value
Unit: RMB/CNY
| Item | Accounting accounts before conversion | Amount | Reason for conversion | Approval procedures | Impact on profit and loss | Impact on other comprehensive income |
（4）Investment real estate without property rights certificate
Unit: RMB/CNY
| Item | Book value | Reasons for failing to complete the property rights certificate |
Other note:
21.Fixed assets
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| Fixed assets | 2,229,476.84 | 2,288,610.10 |
| Total | 2,229,476.84 | 2,288,610.10 |
（1） Fixed assets
Unit: RMB/CNY
| Item | Houses and buildings | Machinery equipment | Means of transportation | Electronic equipment and others | Total |
| I. Original book value: | |||||
| 1.Opening balance | 2,959,824.00 | 1,310,846.99 | 958,593.21 | 254,674.84 | 5,483,939.04 |
| 2.Current increased | 10,619.47 | 28,174.52 | 38,793.99 | ||
| (1)Purchase | 10,619.47 | 28,174.52 | 38,793.99 | ||
| (2)Construction in progress transfer-in | |||||
| (3)The increase in business combination | |||||
| 3.Current decreased | |||||
| (1) Disposal or scrap | |||||
| 4.Ending balance | 2,959,824.00 | 1,321,466.46 | 958,593.21 | 282,849.36 | 5,522,733.03 |
| II. Accumulated depreciation | |||||
| 1.Opening balance | 998,940.60 | 452,513.99 | 862,386.24 | 151,882.36 | 2,465,723.19 |
| 2.Current increased | |||||
| (1)Accrual | 66,596.04 | 11,868.39 | 19,462.82 | 97,927.25 | |
| 3.Current decreased | |||||
| (1) Disposal or scrap | |||||
| 4.Ending balance | 1,065,536.64 | 464,382.38 | 862,386.24 | 171,345.18 | 2,563,650.44 |
| III. Impairment provision |
| 1.Opening balance | 729,605.75 | 729,605.75 | |||
| 2.Current increased | |||||
| (1)Accrual | |||||
| 3.Current decreased | |||||
| (1) Disposal or scrap | |||||
| 4.Ending balance | 729,605.75 | 729,605.75 | |||
| IV. Book value | |||||
| 1.Ending book value | 1,894,287.36 | 127,478.33 | 96,206.97 | 111,504.18 | 2,229,476.84 |
| 2.Opening book value | 1,960,883.40 | 128,727.25 | 96,206.97 | 102,792.48 | 2,288,610.10 |
(2) Fixed assets temporary idle
Unit: RMB/CNY
| Item | Original book value | Accumulated depreciation | Impairment provision | Book value | Note |
| Machinery equipment | 1,044,247.81 | 314,642.06 | 729,605.75 | The lithium battery equipment stored in the Guangshui Jiaxu factory is in an idle state |
(3) Fixed assets leasing-out by operational lease
Unit: RMB/CNY
| Item | Ending book value |
(4) Fixed assets without property rights certificate
Unit: RMB/CNY
| Item | Book value | Reasons for failing to complete the property rights certificate |
| Six properties in Lianxin Garden | 1,894,287.36 | The six properties of Lianxin Garden 7-20F with original value of 2,959,824.00 Yuan. The property purchasing refers to the indemnificatory housing for enterprise talent buying from Shenzhen Housing and Construction Bureau of Luohu District. According to the agreement, the enterprise shall not carrying any kind of property trading with any units or individuals except the government, and the company has no property certification on the above mentioned properties. |
Other note
(5) Information of impairment test of fixed assets
□Applicable ?Not applicable
（6） liquidation of fixed assets
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
Other note：
22. Construction in progress
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
（1）Construction in progress
Unit: RMB/CNY
| Item | Ending balance | Opening balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
（2） Changes in significant construction in progress
Unit: RMB/CNY
| Item | Budget | Opening balance | Current increased | Fixed assets transfer-in in the Period | Other decreased in the Period | Ending balance | Proportion of project investment in budget | Progress | Accumulated amount of interest capitalization | including: interest capitalized amount of the year | Interest capitalization rate of the year | Source of funds |
(3) Provision for impairment of construction in progress in the current period
Unit: RMB/CNY
| Item | Opening balance | Increase | Decrease | Ending balance | Reason |
Other note：
（4） Information of impairment test of construction in progress
□Applicable ?Not applicable
(5) Engineering materials
Unit: RMB/CNY
| Item | Ending balance | Opening balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
Other note:
23. Productive biological asset
(1) Productive biological assets measured by cost
□Applicable ?Not applicable
（2） Impairment test of productive biological assets using cost measurement mode
□Applicable ?Not applicable
（3） Productive biological assets measured by fair value
□Applicable?Not applicable
24. Oil and gas asset
□Applicable?Not applicable
25. Right-of-use assets
（1） Right-of-use assets
Unit: RMB/CNY
| Item | Houses and buildings | Total |
| I. Original book value | ||
| 1.Opening balance | 2,564,145.65 | 2,564,145.65 |
| 2.Current increased | ||
| 3.Current decreased | ||
| 4.Ending balance | ||
| II. Accumulated depreciation | ||
| 1.Opening balance | 747,875.82 | 747,875.82 |
| 2.Current increased | 427,357.61 | 427,357.61 |
| (1)Accrual | 427,357.61 | 427,357.61 |
| 3.Current decreased |
| (1) Disposal | ||
| 4.Ending balance | 1,175,233.43 | 1,175,233.43 |
| III. Impairment provision | ||
| 1.Opening balance | ||
| 2.Current increased | ||
| (1)Accrual | ||
| 3.Current decreased | ||
| (1) Disposal | ||
| 4.Ending balance | ||
| IV. Book value | ||
| 1.Ending book value | 1,388,912.22 | 1,388,912.22 |
| 2.Opening book value | 1,816,269.83 | 1,816,269.83 |
（2） Information of impairment test of right-of-use assets
□Applicable ?Not applicable
Other note：
26. Intangible assets
(1) Intangible assets
Unit: RMB/CNY
| Item | Land use right | Patent | Non-patent technology | Total | |
| I. Original book value | |||||
| 1.Opening balance | |||||
| 2.Current increased | |||||
| (1)Purchase | |||||
| (2) Internal R & D | |||||
| (3)The increase in business combination | |||||
| 3.Current decreased | |||||
| (1) Disposal | |||||
| 4.Ending balance | |||||
| II. Accumulated depreciation | |||||
| 1.Opening balance | |||||
| 2.Current increased |
| (1)Accrual | |||||
| 3.Current decreased | |||||
| (1) Disposal | |||||
| 4.Ending balance | |||||
| III. Impairment provision | |||||
| 1.Opening balance | |||||
| 2.Current increased | |||||
| (1)Accrual | |||||
| 3.Current decreased | |||||
| (1) Disposal | |||||
| 4.Ending balance | |||||
| IV. Book value | |||||
| 1.Ending book value | |||||
| 2.Opening book value |
Ratio of intangible assets resulted from internal R&D in balance of intangible assets at period-end
(2) Land use right without certificate of title completed
Unit: RMB/CNY
| Item | Book value | Reasons for failing to complete the property rights certificate |
（3） Investment real estate without certificate of ownership
Unit: RMB/CNY
| Items | Book value | Reason |
Other note
（4） Impairment test situation of intangible assets
□ Applicable √Not applicable
27. Goodwill
(1) Original book value of goodwill
Unit: RMB/CNY
| The invested | Opening | Current increased | Current decreased | Ending balance |
| entity or items | balance | Resulted by enterprise combination | Dispose | |||
| Total |
(2) Goodwill Impairment provision
Unit: RMB/CNY
| The invested entity or items | Opening balance | Current increased | Current decreased | Ending balance | ||
| Accrual | Dispose | |||||
| Total | ||||||
(3)Information about the asset group or asset group portfolio to which the goodwill belongs
| Name | The composition and basis of the asset group or portfolio to which it belongs | Affiliated business segments and basis | Whether it is consistent with previous years |
Changes in the asset group or portfolio of asset groups
| Name | Composition before the change | Composition after the change | Objective facts and basis for change |
Other note
(4) The specific method of determining the recoverable amount
The recoverable amount is determined on the basis of the net amount by fair value less disposal costs
□Applicable ?Not applicable
The recoverable amount is determined by the present value of the projected future cash flows
□Applicable ?Not applicable
The reason for the obvious discrepancy between the foregoing information and the information used in theimpairment test of previous years or the external informationThe reason for the obvious discrepancy between the information used in the Company's impairment test inprevious years and the actual situation in the current year
(5) Status of completion of performance commitment and corresponding goodwill impairmentWhen goodwill is formed, there is a performance commitment and the reporting period or the previous period inthe reporting period is within the performance commitment period
□Applicable ?Not applicable
Other note：
28. Long-term expenses to be apportioned
Unit: RMB/CNY
| Item | Opening balance | Current increased | Amortized in the Period | Other decrease | Ending balance |
Other note：
29. Deferred income tax asset /Deferred income tax liabilities
(1) Deferred income tax assets without offset
Unit: RMB/CNY
| Item | Ending balance | Opening balance | ||
| Deductible temporary difference | Deferred income tax asset | Deductible temporary difference | Deferred income tax asset | |
| Asset impairment provision | 18,935,907.20 | 4,733,976.80 | 19,586,893.46 | 4,896,723.38 |
| Lease Liabilities | 1,447,179.02 | 361,794.76 | 1,866,033.17 | 466,508.30 |
| Total | 20,383,086.22 | 5,095,771.56 | 21,452,926.63 | 5,363,231.68 |
(2) Deferred income tax liabilities without offset
Unit: RMB/CNY
| Item | Ending balance | Opening balance | ||
| Taxable temporary differences | Deferred income tax liabilities | Taxable temporary differences | Deferred income tax liabilities | |
| Right to use assets | 1,388,912.22 | 347,228.06 | 1,816,269.83 | 454,067.46 |
| Total | 1,388,912.22 | 347,228.06 | 1,816,269.83 | 454,067.46 |
(3) Deferred income tax assets and deferred income tax liabilities listed after off-set
Unit: RMB/CNY
| Item | Trade-off between the deferred income tax assets and liabilities | Ending balance of deferred income tax assets or liabilities after off-set | Trade-off between the deferred income tax assets and liabilities at period-begin | Opening balance of deferred income tax assets or liabilities after off-set |
| Deferred income tax asset | 347,228.06 | 4,748,543.50 | 454,067.46 | 4,909,164.22 |
| Deferred income tax liabilities | 347,228.06 | 454,067.46 |
(4) Details of deferred income tax assets without recognized
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| Deductable temporary difference | 7,255,560.04 | 7,255,560.04 |
| Deductable loss | 2,346,162.39 | 2,346,162.39 |
| Total | 9,601,722.43 | 9,601,722.43 |
(5) Deductible losses of un-recognized deferred income tax assets expired on the followed year
Unit: RMB/CNY
| Year | Ending amount | Opening amount | Note |
| 2024 | 1,144,129.87 | 1,144,129.87 | Deductable loss in 2019 |
| 2025 | 501,170.19 | 501,170.19 | Deductable loss in 2020 |
| 2026 | 303,928.96 | 303,928.96 | Deductable loss in 2021 |
| 2027 | 391,287.51 | 391,287.51 | Deductable loss in 2022 |
| 2028 | 5,645.86 | 5,645.86 | Deductable loss in 2023 |
| Total1 | 2,346,162.39 | 2,346,162.39 |
Other note
30. Other non-current assets
Unit: RMB/CNY
| Item | Ending balance | Opening balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Advance payment for house | 400,000.00 | 400,000.00 | ||||
| Total | 400,000.00 | 400,000.00 | ||||
Other note：
31. Assets with restricted ownership or right to use
Unit: RMB/CNY
| Item | End of period | Beginning of period | ||||||
| Book balance | Book value | Restricted type | Restricted circumstance | Book balance | Book value | Restricted type | Restricted circumstance | |
| Monetary funds | 566,435.02 | 566,435.02 | Other | Litigation frozen funds | Litigation frozen funds | |||
| Fixed assets | 2,959,824.00 | 1,894,287.36 | Other | For the talent housing purchased at a low price, Shenzhen China cannot apply for a certificate, and the disposal can only be repurchased by the government | 2,959,824.00 | 1,960,883.40 | Other | For the talent housing purchased at a low price, Shenzhen China cannot apply for a certificate, and the disposal can only be repurchased by the government |
| Total | 3,526,259.02 | 2,460,722.38 | 2,959,824.00 | 1,960,883.40 | ||||
Other note：
32. Short-term loans
(1) Category
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
Explanation on short-term loans category:
(2) Overdue outstanding short-term loans
Total 0.00 Yuan overdue outstanding short-term loans at period-end, including the followed significant amount:
Unit: RMB/CNY /
| Borrower | Ending balance | Lending rate | Overdue time | Overdue rate |
Other note:
33. Trading financial liability
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| Including: | ||
| Including: |
Other note:
34. Derivative financial liability
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
Other note:
35. Note payable
Unit: RMB/CNY
| Category | Ending balance | Opening balance |
Notes expired at period-end without paid was 0.00 Yuan.
36. Account payable
(1) Account payable
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| Within one year(one year included) | 4,649,649.09 | 5,583,501.96 |
| 1-2 years (2 years included) | 83,999.55 | |
| 2-3 years (3 years included) | 1,158.00 | |
| Over 3 years | 545,005.51 | |
| Total | 4,649,649.09 | 6,213,665.02 |
(2) Important account payable with account age over one year
Unit: RMB/CNY
| Item | Ending balance | Reasons for non-reimbursement or carry-forward |
Other note:
37.Other account payable
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| Other account payable | 33,107,549.28 | 39,034,314.13 |
| Total | 33,107,549.28 | 39,034,314.13 |
(1) Interest payable
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
Important overdue interest
Unit: RMB/CNY
| Unit | Overdue amount | Overdue reason |
Other note:
(2) Dividend Payable
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
Other explanation:including dividends payable with over one year age and disclosure un-payment reasons
（3）Other account payable
1) By nature
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| Custodian and common benefit debts | 24,807,507.61 | 25,907,507.61 |
| Warranty and guarantee money | 1,491,940.00 | 1,501,940.00 |
| Intercourse funds | 6,560,680.00 | 9,578,367.65 |
| Payment | 1,327,373.90 | |
| Collection and payment | 686,076.86 | |
| Other | 247,421.67 | 33,048.11 |
| Total | 33,107,549.28 | 39,034,314.13 |
2) Significant other payable with over one year age
Unit: RMB/CNY
| Item | Ending balance | Reasons for non-reimbursement or carry-forward |
| Custodian and common benefit debts | 24,807,507.61 | Annual settlement offset |
| Shenzhen Guocheng Energy Investment Development Co., Ltd. | 6,500,000.00 | Intercourse funds |
| Total | 31,307,507.61 |
Other note:
38. Accounts received in advance
(1) Accounts received in advance
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
(2) Account received in advance with over one year book age
Unit: RMB/CNY
| Item | Ending balance | Reasons for non-reimbursement or carry-forward |
Other note:
39. Contractual liability
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| Receipt of goods in advance | 527,792.26 | 633,114.64 |
| Total | 527,792.26 | 633,114.64 |
Contractual liability in advance with over one year book age
Unit: RMB/CNY
| Item | Ending balance | Reasons for non-reimbursement or carry-forward |
Book value has major changes in the period and causes
Unit: RMB/CNY
| Item | Amount changes | Reason for change |
40. Wage payable
(1) Wage payable
Unit: RMB/CNY
| Item | Opening balance | Current increased | Current decreased | Ending balance |
| I. Short-term compensation | 1,149,151.81 | 4,071,306.30 | 4,188,364.68 | 1,032,093.43 |
| II. Post-employment benefit-Defined contribution plan | 387,042.41 | 387,042.41 | ||
| Total | 1,149,151.81 | 4,458,348.71 | 4,575,407.09 | 1,032,093.43 |
(2) Short-term compensation
Unit: RMB/CNY
| Item | Opening balance | Current increased | Current decreased | Ending balance |
| 1. Wages, bonus, allowances and subsidy | 1,143,512.59 | 3,684,132.65 | 3,801,003.56 | 1,026,641.68 |
| 3. Social insurance | 143,619.02 | 143,619.02 | ||
| Including: Medical insurance | 121,609.84 | 121,609.84 | ||
| Work injury insurance | 8,497.85 | 8,497.85 | ||
| Maternity insurance | 13,511.33 | 13,511.33 | ||
| 4. Housing accumulation fund | 209,691.60 | 209,691.60 | ||
| 5. Labor union expenditure and personnel education expense | 5,639.22 | 33,863.03 | 34,050.50 | 5,451.75 |
| Total | 1,149,151.81 | 4,071,306.30 | 4,188,364.68 | 1,032,093.43 |
(3) Defined contribution plan
Unit: RMB/CNY
| Item | Opening balance | Current increased | Current decreased | Ending balance |
| 1. Basic endowment insurance | 369,991.47 | 369,991.47 | ||
| 2. Unemployment insurance | 17,050.94 | 17,050.94 | ||
| Total | 387,042.41 | 387,042.41 |
Other note:
41. Taxes payable
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| Value added tax | 87,394.86 | 6,575,136.32 |
| Enterprise income tax | 709,933.98 | 3,833,579.07 |
| Individual income tax | 39,608.25 | 71,356.63 |
| City maintenance & construction tax | 12,447.81 | 446,567.07 |
| Stamp tax | 25,769.67 | 52,178.40 |
| Educational surcharge | 8,853.82 | 318,938.97 |
| Total | 884,008.39 | 11,297,756.46 |
Other note:
42. Liability held for sale
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
Other note:
43. Non-current liabilities due within one year
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| Lease liabilities due within one year | 873,605.52 | 847,403.05 |
| Total | 873,605.52 | 847,403.05 |
Other note:
44. Other current liabilities
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| VAT received in advance | 68,612.99 | 82,304.90 |
| Total | 68,612.99 | 82,304.90 |
Changes of short-term bond payable:
Unit: RMB/CNY
| Bond | Face value | Interest rate | Release date | Bond period | Issuing amount | Opening balance | Issued in the Period | Accrual interest by face value | Premium/discount amortization | Paid in the Period | Ending balance | Whether default | |
| Total |
Other note:
45. Long-term loans
(1)Category
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
Explanation on category of long-term loans:
Other note: including interest rate section
46. Bonds payable
(1) Bonds payable
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
(2) Changes of bonds payable (not including the other financial instrument of preferred stock andperpetual capital securities that classify as financial liability)
| Bond | Face value | Interest rate | Release date | Bond period | Issuing amount | Opening balance | Issued in the Period | Accrual interest by face value | Premium/discount amortization | Paid in the Period | Ending balance | Whether default | |
| Total | —— | —— | |||||||||||
(3) Convertible conditions and time for shares transfer for the convertible bonds
(4) Other financial instruments classify as financial liability
Outstanding other financial instruments as preferred stock and perpetual bonds at period-endChanges of the outstanding financial instruments as preferred stock and perpetual bonds at period-end
Unit: RMB/CNY
| Outstanding financial instrument | Period-begin | Current increased | Current decreased | Period-end | ||||
| Amount | Book value | Amount | Book value | Amount | Book value | Amount | Book value | |
Basis for financial liability classification for other financial instrumentOther note:
47. Lease liability
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| Lease payment amount | 1,481,384.40 | 1,925,673.72 |
| Including：Within 1 year | 905,166.15 | 891,837.48 |
| 1-2 years | 576,218.25 | 918,592.59 |
| 2-3 years | 115,243.65 | |
| Unrecognized financing charges | -34,205.38 | -59,640.55 |
| Including：Within 1 year | -31,560.63 | -44,434.43 |
| 1-2 years | -2,644.75 | -18,290.17 |
| 2-3 years | 3,084.05 | |
| Reclassified to lease liabilities due within one year | -873,605.52 | -847,403.05 |
| Total | 573,573.50 | 1,018,630.12 |
Other note:
48. Long-term account payable
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
(1) Nature of long-term account payable
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
Other note:
(2) Special payable
Unit: RMB/CNY
| Item | Opening balance | Current increased | Current decreased | Ending balance | Causes |
Other note:
49. Long-term wages payable
(1) Long-term wages payable
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
(2) Changes of defined benefit plans
Present value of the defined benefit plans:
Unit: RMB/CNY
| Item | Current period incurred | Prior period incurred |
Scheme assets:
Unit: RMB/CNY
| Item | Current period incurred | Prior period incurred |
Net liability (assets) of the defined benefit plans
Unit: RMB/CNY
| Item | Current period incurred | Prior period incurred |
Content of defined benefit plans and relevant risks, impact on future cash flow of the Company as well as timesand uncertainty:
Major actuarial assumption and sensitivity analysis:
Other note:
50. Accrual liability
Unit: RMB/CNY
| Item | Ending balance | Opening balance | Causes |
Other explanation, including relevant important assumptions and estimation:
51. Deferred income
Unit: RMB/CNY
| Item | Opening balance | Current increased | Current decreased | Ending balance | Causes |
Other note:
52. Other non-current liabilities
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
Other note:
53. Share capital
Unit: RMB/CNY
| Opening balance | Changes in the period (+, -) | Ending balance | |||||
| New shares issued | Bonus share | Shares transferred from capital reserve | Other | Subtotal | |||
| Total shares | 689,184,933.00 | 689,184,933.00 | |||||
Other note:
54. Other equity instrument
(1) Outstanding other financial instruments as preferred stock and perpetual bonds at period-end
(2) Changes of the outstanding other financial instruments as preferred stock and perpetual bonds atperiod-end
Unit: RMB/CNY
| Outstanding financial instrument | Period-begin | Current increased | Current decreased | Period-end | ||||
| Amount | Book value | Amount | Book value | Amount | Book value | Amount | Book value | |
Changes of other equity instrument, change reasons and relevant accounting treatment basis:
Other note:
55. Capital public reserve
Unit: RMB/CNY
| Item | Opening balance | Current increased | Current decreased | Ending balance |
| Capital premium(Share capital premium) | 151,720,152.51 | 151,720,152.51 | ||
| Other capital public reserve | 627,834,297.85 | 627,834,297.85 | ||
| Including: Debt restructuring income | 482,580,588.23 | 482,580,588.23 | ||
| Other | 145,253,709.62 | 145,253,709.62 | ||
| Total | 779,554,450.36 | 779,554,450.36 |
Other note: including changes and reasons for changes
56. Inventory shares
Unit: RMB/CNY
| Item | Opening balance | Current increased | Current decreased | Ending balance |
Other note: including changes and reasons for changes
57. Other comprehensive income
Unit: RMB/CNY
| Item | Opening balance | Current period incurred | Ending balance | |||||
| Account before income tax | Less: written in other | Less: written in other | Less: Income tax | Belong to parent company after | Belong to minority shareholders | |||
| in the period | comprehensive income in previous period and carried forward to gains and losses in current period | comprehensive income in previous period and carried forward to retained earnings in current period | expense | tax | after tax |
Other note: including the active part of the hedging gains/losses of cash flow transfer to initial recognitionadjustment for the arbitraged items
58. Reasonable reserve
Unit: RMB/CNY
| Item | Opening balance | Current increased | Current decreased | Ending balance |
Other note: including changes and reasons for changes
59. Surplus public reserve
Unit: RMB/CNY
| Item | Opening balance | Current increased | Current decreased | Ending balance |
| Statutory surplus reserves | 32,673,227.01 | 32,673,227.01 | ||
| Total | 32,673,227.01 | 32,673,227.01 |
Explanation: including changes and reasons for changes
60. Retained profit
Unit: RMB/CNY
| Item | Current period | Prior period |
| Retained profit at period-end before adjustment | -1,192,651,364.21 | -1,210,553,312.45 |
| Retained profit at period-begin after adjustment | -1,192,651,364.21 | -1,210,553,312.45 |
| Add: net profit attributable to shareholders of parent company for this year | 5,717,642.69 | 4,862,298.90 |
| Retained profit at period-end | -1,186,933,721.52 | -1,205,691,013.55 |
Adjustment for retained profit at period-begin:
1) Retroactive adjustment due to the Accounting Standards for Business Enterprise and relevant new regulations,retained profit at period-begin has 0.00 Yuan affected;
2) Due to the accounting policy changes, retained profit at period-begin has 0.00 Yuan affected;
3) Due to the major accounting errors correction, retained profit at period-begin has 0.00 Yuan affected;
4) Consolidation range changed due to the same control, retained profit at period-begin has 0.00 Yuan affected;
5) Total other adjustment impacts 0.00 Yuan retained profit at period-begin
61. Operation revenue and operation cost
Unit: RMB/CNY
| Item | Current period incurred | Prior period incurred | ||
| Revenue | Cost | Revenue | Cost | |
| Main business | 211,965,555.07 | 199,846,203.64 | 290,765,045.12 | 277,274,706.74 |
| Other business | 1,534,042.18 | 1,148,825.88 | 2,234,117.38 | 1,209,446.00 |
| Total | 213,499,597.25 | 200,995,029.52 | 292,999,162.50 | 278,484,152.74 |
Breakdown of operating income and operating costs:
Unit: RMB/CNY
| Contract type | 1# Division | 2# Division | Total | |||||
| Revenue | Cost | Revenue | Cost | Revenue | Cost | Revenue | Cost | |
| Business type | 213,499,597.25 | 200,995,029.52 | 213,499,597.25 | 200,995,029.52 | ||||
| Including： | ||||||||
| Jewelry and gold | 211,387,577.70 | 199,281,641.45 | 211,387,577.70 | 199,281,641.45 | ||||
| Bicycles, electric vehicles, lithium battery materials and others | 2,112,019.55 | 1,713,388.07 | 2,112,019.55 | 1,713,388.07 | ||||
| Classification by business area | ||||||||
| Including: | ||||||||
| Market or customer type | ||||||||
| Including: | ||||||||
| Contract type | ||||||||
| Including: | ||||||||
| Classification by time of goods transfer | ||||||||
| Including: | ||||||||
| Classification by contract duration | ||||||||
| Including: | ||||||||
| Classification by sales channel | ||||||||
| Including: | ||||||||
| Total | 213,499,597.25 | 200,995,029.52 | 213,499,597.25 | 200,995,029.52 |
Information related to performance obligations:
| Item | The time to fulfill the performance obligation | Important payment terms | The nature of the goods that the company promises to transfer | Whether it is the main responsible person | The expected refunds to customers borne by the company | The types of quality assurance provided by the company and related obligations |
Other note:
Information relating to the transaction price assigned to the remaining performance obligation:
The amount of revenue corresponding to performance obligation that have been signed but have not beenfulfilled or have not been fulfilled at the end of the period was 0.00 Yuan, including 0.00 Yuan is expected to berecognized as revenue in subsequent years, 0.00 Yuan is expected to be recognized as revenue in subsequentyears, 0.00 Yuan is expected to be recognized as revenue in subsequent years. Other explanation:
Significant contract changes or significant transaction price adjustments
Unit: RMB/CNY
| Item | Accounting treatment method | The impacted amount on revenue |
Other note:
62. Tax and surcharge
Unit: RMB/CNY
| Item | Current period incurred | Prior period incurred |
| City maintenance & construction tax | 30,933.56 | 2,712.44 |
| Educational surcharge | 22,089.18 | 1,937.46 |
| Stamp tax | 98,479.61 | 125,047.84 |
| Total | 151,502.35 | 129,697.74 |
Other note:
63. Administrative expenses
Unit: RMB/CNY
| Item | Current period incurred | Prior period incurred |
| Employee remuneration | 2,813,909.20 | 2,956,105.62 |
| Daily administrative expenses | 1,114,549.51 | 1,174,547.18 |
| Total | 3,928,458.71 | 4,130,652.80 |
Other note:
64. Sales expenses
Unit: RMB/CNY
| Item | Current period incurred | Prior period incurred |
| Employee remuneration | 1,041,048.34 | 656,050.37 |
| Marketing promotion fees | 22,377.70 | 1,318,316.83 |
| Online marketing fee | 64,489.30 | 164,884.42 |
| Other | 650,478.14 | 382,962.39 |
| Total | 1,778,393.48 | 2,522,214.01 |
Other note:
65. R&D expenses
Unit: RMB/CNY
| Item | Current period incurred | Prior period incurred |
| Employee compensation and benefits | 419,172.22 | 291,150.18 |
| Other | 35,041.40 | 45,820.72 |
| Total | 454,213.62 | 336,970.90 |
Other note:
66. Finance expenses
Unit: RMB/CNY
| Item | Current period incurred | Prior period incurred |
| Interest expenses | 25,397.71 | |
| Including：Financing expenses recognized by lease liabilities | 25,397.71 | |
| Interest income | -61,836.44 | -70,100.25 |
| Commission charge etc. | 35,279.23 | 11,769.30 |
| Total | -1,159.50 | -58,330.95 |
Other note:
67. Other income
Unit: RMB/CNY
| Sources | Current period incurred | Prior period incurred |
| Personal tax withholding fee | 2,092.35 |
68. Net exposure hedge gains
Unit: RMB/CNY
| Item | Current period incurred | Prior period incurred |
Other note:
69. Income from change of fair value
Unit: RMB/CNY
| Sources | Current period incurred | Prior period incurred |
Other note:
70. Investment income
Unit: RMB/CNY
| Item | Current period incurred | Prior period incurred |
Other note:
71. Loss of credit impairment
Unit: RMB/CNY
| Item | Current period incurred | Prior period incurred |
| Bad debt loss of other account receivable | 442,497.22 | 334,376.92 |
| Bad debt losses of other accounts receivable | -187,577.79 | -6,087.13 |
| Total | 254,919.43 | 328,289.79 |
Other note:
72. Impairment loss on assets
Unit: RMB/CNY
| Item | Current period incurred | Prior period incurred |
| I. Loss of inventory falling price and loss of contract performance cost impairment | 8,123.50 | |
| Total | 8,123.50 |
Other note:
73. Income from assets disposal
Unit: RMB/CNY
| Sources | Current period incurred | Prior period incurred |
74. Non-operating income
Unit: RMB/CNY
| Item | Current period incurred | Prior period incurred | Amount reckoned in current non-recurring gains/losses |
| Other | 1,240,262.87 | 1,253,150.81 |
| Total | 1,240,262.87 | 1,253,150.81 |
Other note:
75. Non-operating expense
Unit: RMB/CNY
| Item | Current period incurred | Prior period incurred | Amount reckoned in current non-recurring gains/losses |
| Other | 60,128.00 | 1,462,822.69 | |
| Total | 60,128.00 | 1,462,822.69 |
Other note
76. Income tax expense
(1) Income tax expense
Unit: RMB/CNY
| Item | Current period incurred | Prior period incurred |
| Current income tax expense | 1,942,341.89 | 1,720,082.71 |
| Deferred income tax expense | 185,966.10 | -82,627.15 |
| Total | 2,128,307.99 | 1,637,455.56 |
(2) Adjustment on accounting profit and income tax expenses
Unit: RMB/CNY
| Item | Current period incurred |
| Total profit | 7,636,336.87 |
| Income tax measured by statutory/applicable tax rate | 1,909,084.22 |
| The impact of applying different tax rates to subsidiaries | -48,309.47 |
| Impact of adjusting the income tax of prior period | -193,732.87 |
| The impact of non-taxable income | |
| Impact on cost, expenses and losses that unable to deducted | |
| The impact of deductible losses on the use of deferred income tax assets not recognized in prior period | 517,277.91 |
| The impact of deductible temporary differences or deductible losses on deferred income tax assets not recognized in the Period | |
| Additional deductible expenses under the tax code | -56,011.80 |
| Income tax expense | 2,128,307.99 |
Other note:
77. Other comprehensive income
Refer to the Note
78.Items of Cash flow statement
（1）Cash related to operating activities
Other cash received from business operation
Unit: RMB/CNY
| Item | Current period incurred | Prior period incurred |
| Interest, rent, utilities, etc. | 1,083,672.56 | 1,149,209.40 |
| Deposits and guarantees received | 60,222.00 | |
| Government subsidy and individual tax handling fee refund | 2,217.90 | |
| Other | 11,847,669.53 | 12,116,466.37 |
| Total | 12,931,342.09 | 13,328,115.67 |
Explanation on other cash received in relation to operation activities:
Other cash paid in relation to operation activities
Unit: RMB/CNY
| Item | Current period incurred | Prior period incurred |
| Payment period expenses, operating expenses and mutual debt, etc | 3,643,342.79 | 4,947,274.36 |
| Judicial freeze | 566,435.02 | 402,449.98 |
| Total | 4,209,777.81 | 5,349,724.34 |
Explanation on other cash paid in relation to operation activities:
（2）Cash related to Investment activities
Cash receivable related to other Investment activities
Unit: RMB/CNY
| Item | Current period incurred | Prior period incurred |
Receivable for important cash related to investment activities
Unit: RMB/CNY
| Item | Current period incurred | Prior period incurred |
Explanation on other cash received from investment activities:
Cash paid related with investment activities
Unit: RMB/CNY
| Item | Current period incurred | Prior period incurred |
Payable for important cash related to investment activities
Unit: RMB/CNY
| Item | Current period incurred | Prior period incurred |
Explanation on cash paid related with investment activities
(3)Cash related to Financing activities
Other cash received in relation to financing activities
Unit: RMB/CNY
| Item | Current period incurred | Prior period incurred |
| Received the performance commitment payment from the controlling shareholder Received the private placement deposit | 12,098,051.76 | |
| Total | 12,098,051.76 |
Explanation on other cash received in relation to financing activities:
Other cash paid related with financing activities
Unit: RMB/CNY
| Item | Current period incurred | Prior period incurred |
Explanation on other cash paid related with financing activities:
Changes in various liabilities arising from fund-raising activities
□Applicable ?Not applicable
(4) Statement of cash flows on a net basis
| Item | Relevant factual circumstances | The basis for the use of net presentation | Financial impact |
(5) Major activities and financial impacts that do not involve cash receipts and expenditures in thecurrent period, but affect the financial position of the enterprise or may affect the cash flow of theenterprise in the future
79. Supplementary information to statement of cash flow
(1) Supplementary information to statement of cash flow
Unit: RMB/CNY
| Supplementary information | Current amount | Amount of the previous period |
| 1．Net profit adjusted to cash flow of operation activities: | ||
| Net profit | 5,508,028.88 | 5,937,059.96 |
| Add: Assets impairment provision | 263,042.93 | -328,289.79 |
| Depreciation of fixed assets, consumption of oil assets and depreciation of productive biology assets | 97,927.25 | 101,255.23 |
| Depreciation of right-of-use assets | 427,357.61 | 173,936.71 |
| Amortization of intangible assets | ||
| Amortization of long-term deferred expenses | ||
| Loss from disposal of fixed assets, |
| intangible assets and other long-term assets (gain is listed with “-”) | ||
| Losses on scrapping of fixed assets (gain is listed with “-”) | 12,298.94 | |
| Gain/loss of fair value changes (gain is listed with “-”) | ||
| Financial expenses (gain is listed with “-”) | 25,397.71 | -58,330.95 |
| Investment loss (gain is listed with “-”) | ||
| Decrease of deferred income tax asset (increase is listed with “-”) | 160,620.72 | |
| Increase of deferred income tax liability (decrease is listed with “-”) | ||
| Decrease of inventory (increase is listed with “-”) | -6,197,581.61 | -142,168,042.14 |
| Decrease of operating receivable accounts (increase is listed with “-”) | -32,438,650.26 | 101,511,254.79 |
| Increase of operating payable accounts (decrease is listed with “-”) | -18,140,601.52 | -388,000.06 |
| Other | -1,034,350.53 | -157,516.35 |
| Net cash flow arising from operating activities | -51,328,808.82 | -35,364,373.66 |
| 2. Material investment and financing not involved in cash flow | ||
| Conversion of debt into capital | ||
| Switching Company bonds due within one year | ||
| Financing lease of fixed assets | ||
| 3. Net change of cash and cash equivalents: | ||
| Balance of cash at period end | 24,599,123.35 | 15,558,495.69 |
| Less: Balance of cash equivalent at year-begin | 54,148,674.40 | 50,922,869.35 |
| Add: Balance at year-end of cash equivalents | ||
| Less: Balance at year-begin of cash equivalents | ||
| Net increased amount of cash and cash equivalent | -29,549,551.05 | -35,364,373.66 |
(2) Net cash paid for obtaining subsidiary in the Period
Unit: RMB/CNY
| Amount | |
| Including: | |
| Including: | |
| Including: |
Other note:
（3）Net cash received by disposing subsidiary in the Period
Unit: RMB/CNY
| Amount | |
| Including: | |
| Including: | |
| Including: |
Other note:
(4) Constitution of cash and cash equivalent
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| I. Cash | 24,599,123.35 | 54,148,674.40 |
| Including: Cash on hand | 33,597.75 | 13,955.25 |
| Bank deposit available for payment at any time | 24,485,123.52 | 54,134,719.15 |
| Other monetary funds that may be paid for at any time | 80,402.08 | |
| III. Balance of cash and cash equivalents at the period -end | 24,599,123.35 | 54,148,674.40 |
| Including: the use of restricted cash and cash equivalents by the parent company or subsidiaries within the Group |
(5) Situations where the scope of use is limited but still classified as cash and cash equivalents
Unit: RMB/CNY
| Item | Amount of the current period | Amount of the previous period | Reason for still being classified as cash and cash equivalents |
( 6) Monetary funds that do not belong to cash and cash equivalents
Unit: RMB/CNY
| Item | Amount of the current period | Amount of the previous period | Reason for not belonging to cash and cash equivalents |
| Other monetary funds | 566,435.02 | 4,179,071.81 | Litigation frozen funds |
| Total | 566,435.02 | 4,179,071.81 |
Other note:
(7) Description of other major activities
80. Notes of changes of owners’ equity
Explain the name and adjusted amount in “Other” at end of last period:
81. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: RMB/CNY
| Item | Ending foreign currency balance | Convert rate | Ending RMB balance converted |
| Monetary fund |
| Including: USD | |||
| EURO | |||
| HKD | |||
| Account receivable | |||
| Including: USD | |||
| EURO | |||
| HKD | |||
| Long-term loans | |||
| Including: USD | |||
| EURO | |||
| HKD | |||
Other note:
(2) Explanation on foreign operational entity, including as for the major foreign operational entity,disclosed main operation place, book-keeping currency and basis for selection; if the book-keepingcurrency changed, explain reasons
□Applicable ?Not applicable
82. Leasing
(1) The Company acts as the lessee
□Applicable ?Not applicable
(2) The Company acts as the lessor
Operating lease as a lessor?Applicable □Not applicable
Unit: RMB/CNY
| Item | Rental income | Thereinto: income related to variable lease payments that are not included in lease receipts |
| lease of houses | 24,153.81 | |
| Total | 24,153.81 |
Financial lease as a lessor
□Applicable ?Not applicable
Annual undiscounted lease receipts for the next five years
□Applicable ?Not applicable
Adjustment table for undiscounted lease receipts and net lease investments
(3) Recognition of financial lease sales gains and losses as a producer or distributor
□Applicable ?Not applicable
83. Data resources
84.Other
VIII. R&D expenditure
Unit: RMB/CNY
| Item | Amount incurred in the current period | Amount incurred in the previous period |
| Employee remuneration and benefits | 419,172.22 | 291,150.18 |
| Other | 35,041.40 | 45,820.72 |
| Total | 454,213.62 | 336,970.90 |
| Thereinto: expensed R&D expenditure | 454,213.62 | 336,970.90 |
1. R&D projects that meet the conditions for capitalization
Unit: RMB/CNY
| Project | Opening balance | Amount increased in the current period | Amount decreased in the current period | Ending balance | ||||
| Internal development expenditures | Others | Recognized as intangible assets | Transferred to profit or loss for the current period | |||||
| Total | ||||||||
Significant capitalized R&D projects
| Project | R&D progress | Estimated completion time | Expected way of generating economic benefits | The point at which capitalization begins | The specific basis for starting capitalization |
Provision for impairment of development expenditure
Unit: RMB/CNY
| Item | Opening balance | Increase in the current period | Decrease in the current period | Ending balance | Impairment test situation |
2.Important outsourcing projects under research
| Name of project | Expected way of generating economic benefits | Criteria and specific basis for determining capitalization or expensing |
Other note:
IX. Changes of consolidation scope
1. Enterprise combined under different control
(1) Enterprise combined under different control in the Period
Unit: RMB/CNY
| Acquiree | Time point for equity obtained | Cost of equity obtained | Ratio of equity obtained | Acquired way Equity obtained way | Purchasing date | Standard to determine the purchasing date | Income of acquiree from purchasing date to | Net profit of acquiree from purchasing date to |
| period-end | period-end |
Other note:
(2) Combination cost and goodwill
Unit: RMB/CNY
| Consolidation cost | |
| --Cash | |
| --Fair value of non-cash assets | |
| --Fair value of debts issued or assumed | |
| --Fair value of equity securities issued | |
| -- Fair value of contingent consideration | |
| --Fair value of the equity prior to the purchasing date | |
| --Other | |
| Total combination cost | |
| Less: shares of fair value of identifiable net assets acquired | |
| The amount by which the goodwill/cost of consolidation is less than the share of fair value of identifiable net assets acquired |
Determination method for fair value of the combination cost：
Contingent consideration and changes:
Main reasons for large goodwill resulted:
Other note:
(3) Identifiable assets and liability on purchasing date under the acquiree
Unit: RMB/CNY
| Fair value on purchasing date | Book value on purchasing date | |
| Assets: | ||
| Monetary fund | ||
| Account receivable | ||
| Inventory | ||
| Fixed assets | ||
| Intangible assets | ||
| Liability: | ||
| Loan | ||
| Account payable | ||
| Deferred income tax liabilities | ||
| Net assets | ||
| Less: Minority interests | ||
| Net assets acquired | ||
Determination method for fair value of the identifiable assets and liabilities:
Contingent liability of the acquiree bear during combination:
Other note:
(4) Gains or losses arising from re-measured by fair value for the equity held before purchasing dateWhether it is a business combination realized by two or more transactions of exchange and a transaction ofobtained control rights in the Period or not
□Yes?No
(5) On purchasing date or period-end of the combination, combination consideration or fair value of
identifiable assets and liability for the acquiree are un-able to confirm rationally
(6) Other Note:
2. Enterprise combine under the same control
(1) Enterprise combined under the same control in the Period
Unit: RMB/CNY
| Combined party | Equity ratio obtained in combination | Basis of combined under the same control | Combination date | Standard to determine the combination date | Income of the combined party from period-begin of combination to the combination date | Net profit of the combined party from period-begin of combination to the combination date | Income of the combined party during the comparison period | Net profit of the combined party during the comparison period |
Other note:
(2) Combination cost
Unit: RMB/CNY
| Consolidation cost | |
| --Cash | |
| -- Book value of non-cash assets | |
| - Book value of debts issued or assumed | |
| -- The face value of the equity securities issued | |
| --Contingent consideration |
Explanation on contingent consideration and its changes:
Other note:
(3) Book value of the assets and liability of the combined party on combination date
Unit: RMB/CNY
| Consolidation date | End of last period | |
| Assets: | ||
| Monetary fund | ||
| Account receivable | ||
| Inventory | ||
| Fixed assets | ||
| Intangible assets | ||
| Liability: | ||
| Loan | ||
| Account payable | ||
| Net assets | ||
| Less: Minority interests | ||
| Net assets acquired |
Contingent liability of the combined party bear during combination:
Other note:
3. Counter purchase
Basic transaction information, basis of counter purchase, whether making up business due to the assets andliability reserved by listed company and basis, determination of combination cost, amount and calculation onadjusted equity by equity transaction:
4. Subsidiary disposal
Whether lost controlling rights while dispose subsidiary on one time or not
□Yes ?No
Whether lost controlling rights in the Period while dispose subsidiary on two or more steps or not
□Yes?No
5. Other reasons for consolidation range changed
Reasons for changed on consolidation range (such as new subsidiary established, subsidiary liquidated etc.)Andrelevant information:
In the current period, four new wholly-owned subsidiaries are established, including Dongguan Xinsen Jewelry.-with a registered capital of 5 million yuan, Shenzhen Yunyouxuan Jewelry Co., Ltd..-with a registered capitalof 15 million yuan,Hangzhou Huabao Digital Culture Co Ltd.-with a registered capital of 5 million yuan, TibetJinyaya Trading Co., Ltd. .-with a registered capital of 2 million yuan,and Shenzhen China International.-with aregistered capital of HKD 10,000 yuan.
6.Other
X. Equity in other entity
1. Equity in subsidiary
(1) Constitute of enterprise group
Unit: RMB/ HKD
| Subsidiary | Registered capital | Main operation place | Registered place | Business nature | Share-holding ratio | Acquired way | |
| Directly | Indirectly | ||||||
| Shenzhen Xinsen Jewelry Gold Co., Ltd | 200,000,000.00 | Shenzhen | Shenzhen | Sales of Jewelry, diamonds and gold | 100.00% | Investment | |
| Shenzhen Xinsen Precision Manufacturing Co., Ltd. | 5,000,000.00 | Shenzhen | Shenzhen | Jewelry, diamonds, gold processing | 100.00% | Investment | |
| Shenzhen Emmelle Industrial Co., Ltd. | 5,000,000.00 | Shenzhen | Shenzhen | Distribution of bicycles and spare parts | 70.00% | Investment | |
| Shenzhen Emmelle Cloud Technology Co., Ltd. | 2,000,000.00 | Shenzhen | Shenzhen | Software and information technology service sales | 49.00% | Investment | |
| Fujian Huaxinbao Jewelry Co., Ltd. | 5,000,000.00 | Fujian Putian | Fujian Putian | Sales of Jewelry, diamonds and gold | 100.00% | Investment | |
| Shenzhen Huabao Zhenxuan Jewelry Co., Ltd. | 5,000,000.00 | Shenzhen | Shenzhen | Sales of Jewelry, diamonds and gold | 100.00% | Investment | |
| Hainan Industry Co., Ltd. | 5,000,000.00 | Haikou | Haikou | Import and export, trade, industry | 100.00% | Investment | |
| Dongguan Xinsen Jewelry Co., Ltd. | 5,000,000.00 | Dongguan | Dongguan | Jewelry, diamonds, gold processing | 100.00% | Investment | |
| Shenzhen Yunyouxuan Jewelry Technology Co., Ltd. | 15,000,000.00 | Shenzhen | Shenzhen | Sales of Jewelry, diamonds and gold | 35.00% | 0.20% | Investment |
| Hangzhou Huabaohui Digital Culture Co Ltd | 5,000,000.00 | Hangzhou | Hangzhou | Sales of Jewelry, diamonds and gold | 100.00% | Investment | |
| Tibet Jinyaya Jewelry Trading Co., Ltd. | 2,000,000.00 | Lhasa | Lhasa | Sales of Jewelry, diamonds and gold | 100.00% | Investment | |
| Shenzhen China International Co., Ltd. | 10,000.00 | HONGKANG | HONGKANG | Sales of Jewelry, diamonds and gold | 100.00% | Investment | |
Explanation on share-holding ratio in subsidiary different from ratio of voting right:
Basis for controlling the invested entity with half or below voting rights held and without controlling investedentity but with over half and over voting rights:
Controlling basis for the structuring entity included in consolidated range:
Basis on determining to be an agent or consignor:
Other note:
(2) Important non-wholly-owned subsidiary
Unit: RMB/CNY
| Subsidiary | Share-holding ratio of minority | Gains/losses attributable to minority in the Period | Dividend announced to distribute for minority in the Period | Ending equity of minority |
| Shenzhen Emmelle Industrial Co., Ltd. | 30.00% | -212,650.68 | 427,257.35 | |
| Shenzhen Yunyouxuan Jewelry Technology Co., Ltd. | 65.00% | 3,036.87 | 9,753,036.87 |
Explanation on share-holding ratio of minority different from ratio of voting right:
Other note:
(3) Main finance of the important non-wholly-owned subsidiary
Unit: RMB/CNY
| Subsidiary | Ending balance | Opening balance | ||||||||||
| Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | |
| Shenzhen Emmelle Industrial Co., Ltd. | 7,906,001.06 | 73,179.53 | 7,979,180.59 | 8,241,539.10 | 0 | 8,241,539.10 | 9,689,931.74 | 73,727.87 | 9,763,659.61 | 9,316,963.25 | 0 | 9,316,963.25 |
| Shenzhen Yunyouxuan Jewelry Technology Co., Ltd. | 15,008,500.22 | 0 | 15,008,500.22 | 3,828.12 | 0 | 3,828.12 | 0 | 0 | 0 | 0 | 0 | 0 |
Unit: RMB/CNY
| Subsidiary | Current period incurred | Prior period incurred | ||||||
| Operation revenue | Net profit | Total comprehensive income | Cash flow from operation activity | Operation revenue | Net profit | Total comprehensive income | Cash flow from operation activity | |
| Shenzhen Emmelle Industrial Co., Ltd. | 918,458.55 | -709,054.87 | -709,054.87 | -760,606.22 | 2,263,649.57 | 359,924.99 | 359,924.99 | 5,086,365.30 |
| Shenzhen Yunyouxua | 2,434,911.50 | 4,672.10 | 4,672.10 | -9,991,499.7 | 0 | 0 | 0 | 0 |
| n Jewelry Technology Co., Ltd. | 8 |
Other note:
(4) Major restriction on using corporate assets and liquidate corporate debts
(5) Financial or other supporting provided to structuring entity that included in consolidated financialstatementOther note:
2. Transaction that has owners equity shares changed in subsidiary but still with controlling rights
(1) Owners equity shares changed in subsidiary
(2) Impact on minority’s interest and owners’ equity attributable to parent company
Unit: RMB/CNY
| Purchase cost/disposal consideration | |
| --Cash | |
| --Fair value of non-cash assets | |
| Purchase cost/total disposal consideration | |
| Less: Subsidiary's share of net assets calculated based on the proportion of acquired/disposed equity | |
| Difference | |
| Including: Adjust capital public reserve | |
| Adjust surplus public reserve | |
| Adjusted retained profit |
Other note:
3. Equity in joint venture and associated enterprise
(1) Important joint venture or associated enterprise
| Joint venture or associated enterprise | Main operation place | Registered place | Business nature | Share-holding ratio | Accounting treatment | |
| Directly | Indirectly | |||||
Share-holding ratio or shares enjoyed different from voting right ratio:
Basis of the voting rights with 20% below but with major influence, or without major influence but with over 20%(20% included) voting rights hold:
(2) Main financial information of the important joint venture
Unit: RMB/CNY
| Ending balance/Current period incurred | Opening balance/Prior period incurred |
| Current assets | ||
| Including: cash and cash equivalent | ||
| Non-current assets | ||
| Total assets | ||
| Current liabilities | ||
| Non-current liabilities | ||
| Total liabilities | ||
| Minority interests | ||
| Shareholders' equity attributable to the parent company | ||
| Share of net assets calculated by shareholding ratio | ||
| Adjustment items | ||
| --Goodwill | ||
| --Unrealized profit of internal trading | ||
| --Other | ||
| Book value of equity investment in joint venture | ||
| Fair value of the equity investment of joint ventures with public offers concerned | ||
| Operation revenue | ||
| Financial expenses | ||
| Income tax expense | ||
| Net profit | ||
| Net profit of discontinuing operation | ||
| Other comprehensive income | ||
| Total comprehensive income | ||
| Dividends received from joint venture in the year |
Other note:
(3) Main financial information of the important associated enterprise
Unit: RMB/CNY
| Ending balance/Current period incurred | Opening balance/Prior period incurred | |
| Current assets | ||
| Non-current assets | ||
| Total assets | ||
| Current liabilities | ||
| Non-current liabilities | ||
| Total liabilities | ||
| Minority interests | ||
| Equity attributable to shareholder of parent company | ||
| Share of net assets measured by shareholding |
| Adjustment | ||
| --Goodwill | ||
| --Unrealized profit of internal trading | ||
| --Other | ||
| Book value of equity investment in associated enterprise | ||
| Fair value of the equity investment of associated enterprise with public offers concerned | ||
| Operation revenue | ||
| Net profit | ||
| Net profit of discontinuing operation | ||
| Other comprehensive income | ||
| Total comprehensive income | ||
| Dividends received from associated enterprise in the year |
Other note:
(4) Financial summary for un-important joint venture or associated enterprise
Unit: RMB/CNY
| Ending balance/Current period incurred | Opening balance/Prior period incurred | |
| Joint venture： | ||
| Total numbers measured by share-holding ratio | ||
| Associated enterprise： | ||
| Total numbers measured by share-holding ratio |
Other note:
(5) Assets transfer ability has major restriction from joint venture or associated enterprise
(6) Excess losses from joint venture or associated enterprise
Unit: RMB/CNY
| Joint venture or associated enterprise | Cumulative un-confirmed losses | Un-confirmed losses not recognized in the Period (or net profit enjoyed in the Period) | Cumulative un-confirmed losses at period-end |
Other note:
(7) Un-confirmed commitment with investment concerned with joint venture
(8) Contingent liability with investment concerned with joint venture or associated enterprise
4.Co-runs operation
| Name | Main operation place | Registered place | Business nature | Share-holding ratio/share enjoyed | |
| Directly | Indirectly | ||||
Share-holding ratio or shares enjoyed different from voting right ratio:
If the co-runs entity is the separate entity, basis of the co-runs classificationOther note:
5. Equity in structuring entity that excluding in the consolidated financial statement
6.Other
XI. Government subsidy
1. Government subsidies recognized according to the receivable amount at the end of the reporting period
□Applicable ?Not applicable
The reason for not receiving the estimated amount of government subsidies at the expected point in time
□Applicable ?Not applicable
2. Liabilities involving government subsidies
□Applicable ?Not applicable
3. Government subsidies included in the current profit and loss
□Applicable ?Not applicable
XII. Risks Related to Financial Instruments
1.Risks arising from financial instruments
2. Hedging
(1) The Company conducts hedging business for risk management
□Applicable ?Not applicable
(2) The Company conducts qualified hedging business and applies hedge accounting
Unit: RMB/CNY
| Item | The carrying amount associated with the hedged item and the hedging instrument | The cumulative fair value hedge adjustment of the hedged items included in the recognized carrying amount of the hedged items | Sources of hedge effectiveness and hedge ineffectiveness part | The impact of hedge accounting on the Company's financial report |
| Type of hedging risk | ||||
| Hedging category | ||||
Other note:
（3） The Company conducts hedging business for risk management and expects to achieve riskmanagement objective but does not apply hedge accounting
□Applicable ?Not applicable
3. Financial assets
(1) Classification of transfer methods
□Applicable ?Not applicable
(2) Financial assets that have been derecognized as a result of a transfer
□Applicable ?Not applicable
(3) Financial assets of continued involvement in asset transfer
□Applicable ?Not applicable
Other note:
XIII. Disclosure of fair value
1. Ending fair value of the assets and liabilities measured by fair value
Unit: RMB/CNY
| Item | Ending fair value | |||
| First-order | Second-order | Third-order | Total | |
| I. Sustaining measured by fair value | -- | -- | -- | -- |
| II. Non-sustaining measured by fair value | -- | -- | -- | -- |
2. Recognized basis for the market price sustaining and non-persistent measured by fair value on first-order
3. Valuation technique and qualitative and quantitative information on major parameters for the fairvalue measure sustaining and non-persistent on second-order
4. Valuation technique and qualitative and quantitative information on major parameters for the fairvalue measure sustaining and non-persistent on third-order
5. Adjustment information and sensitivity analysis of unobservable parameters for the fair valuemeasure sustaining and non-persistent on third-order
6. Sustaining items measured by fair value, as for the conversion between at all levels, reasons forconversion and policy for conversion time point
7. Changes of valuation technique in the Period
8. Financial assets and liability not measured by fair value
9. Other
XIV. Related party and related transactions
1. Parent company
| Parent company | Registered place | Business nature | Registered capital | Share-holding ratio on the enterprise for parent company | Voting right ratio on the enterprise |
| Wansheng Industrial Holdings (Shenzhen) Co., Ltd. | Shenzhen | General business: investment in establishment of industrial | 500 million Yuan | 20.00% | 20.00% |
Explanation on parent company of the enterpriseWansheng Industrial Holdings (Shenzhen) Co., Ltd. was established on May 10, 2016, with the businessperiod is from May 10, 2016 to no fixed term, the registered capital of the company is 500,000,000 yuan, theunified social credit code is 91440300MA5DCB5K9A, the enterprise type is a limited liability company, thelegal representative is Wang Shenghong, and the company's registered address is 1311, Beiyuehui Building, No.2115, Cuizhu Road, Cuijin Community, Cuizhu Street, Luohu District, Shenzhen.Ultimate controller of the Company: Wang ShenghongOther note:
2. Subsidiary of the Enterprise
Found more in Note X
3. Associated enterprise and joint venture
Found more in NoteOther associated enterprise and joint venture that have related transaction with the Company in the Period oroccurred in previous period
| Joint venture or associated enterprise | Relationship with the Company |
Other note:
4. Other related party
| Other related party | Relationship with the Company |
| Shenzhen Guocheng Energy Investment Development Co., Ltd. | Enterprise that holds more than 5% of the shares of Shenzhen China |
Other note
Shenzhen China Bicycle purchased the shares of minority stockholders of Shenzhen Xinsen Jewelry Gold Co.,Ltd., a subsidiary company. After the purchase, Xinsen became a wholly-owned subsidiary of Shenzhen ChinaBicycle, and the completion date was in early August 2023. According to the Listing Rules for Stocks ofShenzhen Stock Exchange, based on prudent considerations, the company determined that Fuzhou Zuanjinsenand Fuzhou Rongrun were related parties of the company within 12 months after the industrial and commercialregistration for the purchase of the shares of minority shareholders of the holding subsidiary, and the relatedtransactions occurred were related-party transactions.
5. Related transaction
(1) Goods purchasing, labor service providing and receiving
Goods purchasing/labor service receiving
Unit: RMB/CNY
| Related party | Transaction content | Current period incurred | Approved transaction amount | Whether more than the transaction amount | Prior period incurred |
Goods sold/labor service providing
Unit: RMB/CNY
| Related party | Transaction content | Current period incurred | Prior period incurred |
Explanation on goods purchasing, labor service providing and receiving
(2) Related trusteeship/contract and delegated administration/outsourcing
Trusteeship/contract
Unit: RMB/CNY
| Client/ contract-out party | Entrusting party/ contractor | Assets type | Starting date | Maturity date | Yield pricing basis | Income from trusteeship/contract |
Explanation on related trusteeship/contract
Delegated administration/outsourcing
Unit: RMB/CNY
| Client/ contract-out party | Entrusting party/ contractor | Assets type | Starting date | Maturity date | Pricing basis of trustee fee/outsourcing fee | Trustee fee/outsourcing fee recognized in the Period |
Explanation on related administration/outsourcing
(3) Related lease
As a lessor for the Company:
Unit: RMB/CNY
| Lessee | Assets type | Lease income recognized in the Period | Lease income recognized in prior Period |
As a lessee for the Company:
Unit: RMB/CNY
| Lessor | Assets type | rental cost for short-term leases and low-value assets leases with simplified processing (if applicable) | Variable lease payment not included in the measurement of leasing liability (if applicable) | Rental paid | Interest expenses assumed on lease liability | Right-of-use assets increased | |||||
| Current period incurred | Prior period incurred | Current period incurred | Prior period incurred | Current period incurred | Prior period incurred | Current period incurred | Prior period incurred | Current period incurred | Prior period incurred | ||
Explanation on related lease
(4) Related guarantee
As a guarantor for the Company
Unit: RMB/CNY
| Secured party | Amount guarantee | Starting date | Due date | Guarantee completed (Y/N) |
As a secured party for the Company
Unit: RMB/CNY
| Guarantor | Amount guarantee | Starting date | Due date | Guarantee completed (Y/N) |
Explanation on related guarantee
(5) Borrowed funds of related party
Unit: RMB/CNY
| Related party | Borrowed funds | Starting date | Due date | Note |
| Borrowing | ||||
| Lending | ||||
(6) Assets transfer and debt restructuring of related party
Unit: RMB/CNY
| Related party | Transaction content | Current period incurred | Prior period incurred |
(7) Remuneration of key manager
Unit: RMB/CNY
| Item | Current period incurred | Prior period incurred |
| Remuneration of key manager | 1,037,574.77 | 703,586.71 |
(8) Other related transactions
6. Receivable/payable items of related parties
(1)Receivable item
Unit: RMB/CNY
| Item | Related party | Ending balance | Opening balance | ||
| Book balance | Bad debt provision | Book balance | Bad debt provision | ||
(2) Payable item
Unit: RMB/CNY
| Item | Related party | Ending book balance | Opening book balance |
| Other account payable | Shenzhen Guosheng Energy Investment Development Co., Ltd. | 6,500,000.00 | 6,500,000.00 |
7. Commitments of related party
According to the Cooperation Agreement signed by Shenzhen China Bicycle Company (Holdings) Co.,Ltd. with Wansheng Industrial Holdings (Shenzhen) Co., Ltd. (hereinafter referred to as "Wansheng Industrial")and Shenzhen Guosheng Energy Investment and Development Co., Ltd. (hereinafter referred to as "GuoshengEnergy") on December 14, 2020, Wansheng Industrial promised that in the next three years from the next yearafter the completion of the non-public issuance of shares and the completion of the adjustment of the board of
directors and board of supervisors of the listed company by Wansheng Industrial, the net profit of the listedcompany shall not be less than RMB 30 million yuan, 35 million yuan and 40 million yuan, that is, thecumulative net profit scale is 105 million yuan. If the cumulative actual net profit of the listed company as ofany year during the performance commitment period does not reach the promised cumulative net profit,Wansheng Industrial shall compensate the listed company in cash within 10 working days after the issuance ofthe audit report of the listed company in the year during the performance commitment period. The amount ofcompensation payable for the year is calculated as follows: amount of compensation payable for the year =cumulative committed net profit as of the end of the period minus cumulative realized net profit as of the end ofthe period minus cumulative compensation amount (if any).According to the unqualified audit report with the report number of GXS Zi [2024] No.23014760012issued by Huaxing Certified Public Accountants LLP (special general partnership) on April 19, 2024, in 2023,the net profit attributable to the owners of the parent company in Shenzhen China Bicycle was RMB17,901,948.24, and the actual completion was lower than the performance commitment by RMB 30,000,000,and the completion rate of performance commitment was 59.67%, which failed to meet the performancecommitment target.According to the performance commitment, Wansheng Industrial shall pay the companyRMB 12,098,051.76 in cash for the 2023 annual performance compensation within ten working days after theissuance of the 2023 annual audit report of Shenzhen China Bicycle.On April 29, 2024, the company receivedperformance compensation of RMB 12,098,051.76 from Wansheng Industrial, and Wansheng Industrialfulfilled its performance compensation obligations in 2023 in accordance with the Cooperation Agreement.Theperformance commitment for 2024 -2025 is being fulfilled.
8.Other
NilXV. Share-based payment
1. General share-based payment
□Applicable?Not applicable
2. Share-based payment settled by equity
□Applicable?Not applicable
3. Share-based payment settled by cash
□Applicable?Not applicable
4. The current shares will pay the fee
□Applicable?Not applicable
5. Revised and termination on share-based payment
Nil
6.Other
NilXVI. Commitment or contingency
1. Important commitments
Important commitments in balance sheet dateNil
2. Contingency
(1) Contingency on balance sheet date
Nil
(2) For the important contingency not necessary to disclosed by the Company, explained reasonsThe Company has no important contingency that need to disclosed
3. Other
NilXVII. Events after balance sheet date
1. Important non-adjustment items
Unit: RMB/CNY
| Item | Content | Impact on financial status and operation results | Reasons on un-able to estimated the impact number |
2. Profit distribution
Nil
3. Sales return
Nil
4. Other events after balance sheet date
Nil
XVIII. Other important events
1. Previous accounting errors collection
(1) Retrospective restatement
Unit: RMB/CNY
| Correction content | Treatment procedures | Impact items of statement during a comparison | Cumulative impacted number |
(2) Prospective application
| Correction content | Approval procedures | Reasons for prospective application adopted |
2. Debt restructuring
Nil
3. Assets replacement
(1) Non-monetary assets change
Nil
(2) Other assets replacement
Nil
4. Pension plan
Nil
5. Discontinued operations
Unit: RMB/CNY
| Item | Revenue | Expenses | Total profit | Income tax expenses | Net profit | Discontinued operations profit attributable to owners of parent company |
Other note:
6. Segment
(1) Recognition basis and accounting policy for reportable segment
The Company determines its business segments based on its internal organizational structure,management requirements, and internal reporting system. The Company's business segments are those that meetthe following conditions at the same time:
(1) The component is capable of generating income and incurring expenses in its daily activities;
(2) Management is able to regularly evaluate the operating results of the component in order to decide onthe allocation of resources to it and evaluate its performance;
(3) Able to obtain accounting information related to the financial position, results of operations and cashflows of the component.
The Company determines the reporting segment on the basis of the industry segment.
Segment reporting information is disclosed in accordance with the accounting policy and measurementstandards adopted by each segment in reporting to management, which are consistent with those at the time ofpreparation of the financial report.
(2) Financial information for reportable segment
Unit: RMB/CNY
| Item | Gold jewelry | Bicycle lithium battery material and others | Offset between segments | Total |
| Main business income | 211,387,577.67 | 1,059,967.98 | 211,965,555.07 | |
| Main business cost | 199,281,641.45 | 661,336.47 | 199,846,203.64 |
(3)The Company has no reportable segments, or unable to disclose total assets and total liability forreportable segments, explain reasons
(4) Other note:
7. Major transaction and events makes influence on investor’s decision
Nil
8.Other
Nil
XIX. Principle notes of financial statements of parent company
1. Account receivable
（1）Disclosure according to the aging
Unit: RMB/CNY
| Aging | Balance in year-end | Balance Year-beginning |
| Within one year(one year included) | 80,714,761.15 | 183,092,316.73 |
| 1-6 months | 68,811,760.95 | 183,092,316.73 |
| 7-12 months | 11,903,000.20 | 0.00 |
| 1-2 years | 5,574,289.81 | 6,441,479.72 |
| 2-3 years | 10,762,472.02 | 10,762,472.02 |
| Over 3 years | 2,380,925.00 | 2,412,925.00 |
| 3-4 years | 1,115,247.00 | 1,115,247.00 |
| 4-5 years | 917,542.00 | 949,542.00 |
| Over 5 years | 348,136.00 | 348,136.00 |
| Total | 99,432,447.98 | 202,709,193.47 |
（2） According to the bad debt provision method classification disclosure
Unit: RMB/CNY
| Category | Amount in year-end | Balance Year-beginning | ||||||||
| Book Balance | Bad debt provision | Book value | Book Balance | Bad debt provision | Book value | |||||
| Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | |||
| Accrual of bad debt provision by single | 18,729,837.03 | 18.84% | 17,006,183.74 | 90.80% | 1,723,653.29 | 18,761,837.03 | 9.26% | 17,038,183.74 | 90.81% | 1,723,653.29 |
| Including： | ||||||||||
| Single identification | 18,729,837.03 | 18.84% | 17,006,183.74 | 90.80% | 1,723,653.29 | 18,761,837.03 | 9.26% | 17,038,183.74 | 90.81% | 1,723,653.29 |
| Accrual of bad debt provision by portfolio | 80,702,610.95 | 81.16% | 212,470.05 | 0.26% | 80,490,140.90 | 183,947,356.44 | 90.74% | 549,240.50 | 0.30% | 183,398,115.94 |
| Including： | ||||||||||
| Aging portfolio | 80,702,610.95 | 81.16% | 212,470.05 | 0.26% | 80,490,140.90 | 183,080,166.53 | 90.31% | 549,240.50 | 0.30% | 182,530,926.03 |
| Related party Portfolio | 867,189.91 | 0.43% | 867,189.91 | |||||||
| Total | 99,432,447.98 | 100.00% | 17,218,653.79 | 17.32% | 82,213,794.19 | 202,709,193.47 | 100.00% | 17,587,424.24 | 8.68% | 185,121,769.23 |
Bad debt provision accrual on single basis: Single identification
Unit: RMB/CNY
| Name | Opening balance | Ending balance | ||||
| Book balance | Bad debt provision | Book balance | Bad debt provision | Accrual ratio | Reason for accrual | |
| Guangshui Jiaxu Energy Technology Co.,Ltd | 15,937,156.89 | 14,343,441.20 | 15,937,156.89 | 14,343,441.20 | 90.00% | Expected to be difficult to recover |
| Suzhou Jiaxin Economic Trade Co., Ltd. | 888,757.00 | 888,757.00 | 888,757.00 | 888,757.00 | 100.00% | Expected to be difficult to recover |
| Suzhou Daming Vehicle Industry Co., Ltd. | 649,688.00 | 519,750.40 | 649,688.00 | 519,750.40 | 80.00% | Expected to be difficult to recover |
| Dongguan Daxiang New Energy Co., Ltd. | 626,734.00 | 626,734.00 | 594,734.00 | 594,734.00 | 100.00% | Expected to be difficult to recover |
| Guangdong Xinlingjia New Energy Co., Ltd. | 348,136.00 | 348,136.00 | 348,136.00 | 348,136.00 | 100.00% | Expected to be difficult to recover |
| Tianjin Huiju Electric Vehicle Co., Ltd. | 116,840.14 | 116,840.14 | 116,840.14 | 116,840.14 | 100.00% | Expected to be difficult to recover |
| Other | 194,525.00 | 194,525.00 | 194,525.00 | 194,525.00 | 100.00% | Expected to be difficult to recover |
| Total | 18,761,837.03 | 17,038,183.74 | 18,729,837.03 | 17,006,183.74 | ||
Bad debt provision accrual on portfolio: Aging portfolio
Unit: RMB/CNY
| Name of the Company | Ending balance | ||
| Book balance | Bad debt provision | Accrual ratio | |
| 1-6 months | 68,811,760.95 | 48,168.23 | 0.07% |
| 7-12 months | 11,746,000.00 | 140,952.00 | 1.20% |
| 1-2 years | 144,850.00 | 23,349.82 | 16.12% |
| Total | 80,702,610.95 | 212,470.05 | |
Explanation on portfolio basis:
Bad debt provision accrual on portfolio:
Unit: RMB/CNY
| Name | Ending balance | ||
| Book Balance | Bad debt provision | Proportion(%) | |
Explanation on portfolio basis:
If the provision for bad debts of account receivable is made in accordance with the general model of expectedcredit losses, please refer to the disclosure of other account receivable to disclose related information about bad-debt provisions:
□Applicable?Not applicable
Basis for division of each stage and accrual ratio for bad-debt provisionExplanation of the significant change in the book balance of accounts receivable with loss reserve in the currentperiod
(3) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
Unit: RMB/CNY
| Category | Opening balance | Current changes | Ending balance | |||
| Accrual | Collected or reversal | Write off | Other | |||
| Accounts receivable with individual provision for bad debts | 17,038,183.74 | 32,000.00 | 17,006,183.74 | |||
| Provision for bad debts based on a portfolio of credit risk characteristics | 549,240.50 | 336,770.45 | 212,470.05 | |||
| Total | 17,587,424.24 | 368,770.45 | 17,218,653.79 | |||
Including important amount of bad debt provision collected or reversal in the period:
Unit: RMB/CNY
| Name of the organization | Amount recovered or reversed | Reason for reversal | Recovery method | The basis and rationality for determining the provision ratio of original bad debt provision |
(4) Account receivables actually write-off during the reporting period
Unit: RMB/CNY
| Item | Amount written off |
Including major account receivables write-off:
Unit: RMB/CNY
| Enterprise | Nature | Amount written off | Causes | Procedure | Amount cause by related transactions or not (Y/N) |
Explanation on account receivable write-off:
(5) The top five accounts receivable and contract assets at the end of the period aggregated according todebtor
Unit: RMB/CNY
| Name of the | Ending balance of | Ending balance of | Ending balance of | Proportion to the | Ending balance of |
| organization | accounts receivable | contract assets | accounts receivable and contract assets | total ending balance of accounts receivable and contract assets | accounts receivable bad debt provision and contract asset impairment provision |
| Shenzhen Hualinglong Jewelry Culture Technology Co., Ltd | 27,427,840.85 | 0.00 | 27,427,840.85 | 27.58% | 19,199.49 |
| Fuzhou Cangshan District Dingjue Jewelry Company | 16,795,047.57 | 0.00 | 16,795,047.57 | 16.89% | 11,756.53 |
| GuangshuiJiaxu Energy Technology Co., Ltd | 15,937,156.89 | 0.00 | 15,937,156.89 | 16.03% | 14,343,441.20 |
| Shenzhen Yunshang Jewelry Co., Ltd | 13,548,308.40 | 0.00 | 13,548,308.40 | 13.63% | 9,483.82 |
| Shenzhen Yuanchi Trading Co., Ltd | 8,258,000.00 | 0.00 | 8,258,000.00 | 8.31% | 99,096.00 |
| Total | 81,966,353.71 | 0.00 | 81,966,353.71 | 82.44% | 14,482,977.04 |
2. Other account receivable
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| Other account receivable | 86,984,000.02 | 17,300,576.60 |
| Total | 86,984,000.02 | 17,300,576.60 |
(1) Interest receivable
1) Category
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
2) Important overdue interest
Unit: RMB/CNY
| Borrower | Ending balance | Overdue time | Overdue reason | Impairment (Y/N) and judgment basis |
Other note:
3) Accrual of bad debt provision
□Applicable ?Not applicable
4） Bad debt provision accrual, collected or reversal in the period
Unit: RMB/CNY
| Category | Opening balance | Current changes | Ending balance | |||
| Accrual | Collected or reversal | Write off | Other | |||
Including important amount of bad debt provision collected or reversal in the period:
Unit: RMB/CNY
| Name of the organization | Amount recovered or reversed | Reason for reversal | Recovery method | The basis and rationality for determining the provision ratio of original bad debt provision |
Other note:
5）Interest receivables actually written off in the current period
Unit: RMB/CNY
| Item | Write-off amount |
Important Interest receivables write-off status thereinto:
Unit: RMB/CNY
| Name of Organization | Amount Nature | Write-off amount | Write-off reason | Write-off procedures for fulfillment | Whether the payment is generated by a related party transaction |
Other note
(2) Dividend receivable
1) Category
Unit: RMB/CNY
| Item (or the invested entity) | Ending balance | Opening balance |
2) Important dividend receivable with over one year aged
Unit: RMB/CNY
| Item (or the invested entity) | Ending balance | Account age | Causes of failure for collection | Impairment (Y/N) and judgment basis |
3) Accrual of bad debt provision
□Applicable ?Not applicable
4） Bad debt provision accrual, collected or reversal in the period
Unit: RMB/CNY
| Category | Opening balance | Current changes | Ending balance | |||
| Accrual | Collected or reversal | Write off | Other | |||
Including important amount of bad debt provision collected or reversal in the period:
Unit: RMB/CNY
| Name of the organization | Amount recovered or reversed | Reason for reversal | Recovery method | The basis and rationality for determining the provision ratio of original bad debt provision |
Other note：
5） Dividend receivables actually written off in the current period
Unit: RMB/CNY
| Item | Write-off amount |
Important Dividend receivable write-off status thereinto:
Unit: RMB/CNY
| Name of Organization | Amount Nature | Write-off amount | Write-off reason | Write-off procedures for fulfillment | Whether the payment is generated by a related party transaction |
Other note：
（3）Other account receivable
1) By nature
Unit: RMB/CNY
| Nature | Ending book balance | Opening book balance |
| Performance compensation | 12,098,051.76 | |
| Deposit or margin | 9,609.80 | 9,609.80 |
| Personal loan of employees | 255,439.62 | |
| Payment for equipment | 11,400.00 | 11,400.00 |
| Current account | 86,621,672.80 | 5,193,843.90 |
| Other | 176,016.08 |
| Total | 87,074,138.30 | 17,312,905.46 |
2）By account aging
Unit: RMB/CNY
| Aging | Ending book balance | Opening book balance |
| Within one year(one year included) | 86,982,765.30 | 17,221,532.46 |
| 1-2 years | 79,473.00 | 79,473.00 |
| 2-3 years | 0.00 | 0.00 |
| Over 3 years | 11,900.00 | 11,900.00 |
| 3-4 years | 0.00 | 0.00 |
| 4-5 years | 0.00 | 0.00 |
| Over 5 years | 11,900.00 | 11,900.00 |
| Total | 87,074,138.30 | 17,312,905.46 |
3) According to the bad debt provision method classification disclosure
Unit: RMB/CNY
| Category | Amount in year-end | Balance Year-beginning | ||||||||
| Book Balance | Bad debt provision | Book value | Book Balance | Bad debt provision | Book value | |||||
| Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | |||
| Including： | ||||||||||
| Including： | ||||||||||
Provision for bad debts is made according to the general model of expected credit losses
Basis for division of each stage and accrual ratio for bad-debt provisionLoss provision changes in current period, change in book balance with significant amount
□ Applicable √Not applicable
4) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
Unit: RMB/CNY
| Category | Opening balance | Current changes | Ending balance | |||
| Accrual | Collected or reversal | Write off | Other | |||
| Provision for bad debts based on a portfolio of credit risk characteristics | 12,328.86 | 77,809.42 | 90,138.28 | |||
| Total | 12,328.86 | 77,809.42 | 90,138.28 | |||
Important amount of bad debt provision switch-back or collection in the period:
Unit: RMB/CNY
| Name of the | Amount recovered or | Reason for reversal | Recovery method | The basis and |
| organization | reversed | rationality for determining the provision ratio of original bad debt provision |
5) Other account receivables actually write-off during the reporting period
Unit: RMB/CNY
| Item | Amount written off |
Including major other account receivables write-off:
Unit: RMB/CNY
| Enterprise | Other Nature | Amount written off | Causes | Procedure | Amount cause by related transactions or not (Y/N) |
Other Explanation on account receivable write-off:
6) Top 5 other account receivable collected by arrears party at ending balance
Unit: RMB/CNY
| Enterprise | Nature | Ending balance | Account age | Proportion in total other account receivables at period-end | Ending balance of bad bet provision |
| Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd | Current account of subsidiary | 86,531,672.80 | Within one year(one year included) | 99.38% | |
| Employee loans | Personal loans | 200,000.00 | Within one year(one year included) | 0.23% | 29,200.00 |
| Guangdong Shenzhen Luohu Court | Other | 79,473.00 | 1-2 years (two year included) | 0.09% | 25,518.78 |
| Hubei Guangshui Court | Current account | 52,816.00 | Within one year(one year included) | 0.06% | 7711.14 |
| Fujian Huaxinbao Jewelry Co., Ltd. | Current account | 50,000.00 | Within one year(one year included) | 0.06% | |
| Total | 86,913,961.80 | 99.82& | 62,429.92 |
7） Reported in other receivables due to centralized management of funds
Other note：
3. Long-term equity investment
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Investment for subsidiary | 125,760,379.73 | 125,760,379.73 | 120,510,379.73 | 120,510,379.73 | ||
| Total | 125,760,379.73 | 125,760,379.73 | 120,510,379.73 | 120,510,379.73 |
(1) Investment for subsidiary
Unit: RMB/CNY
| The invested entity | Opening balance(Book value) | Opening balance of the impairment provision | Changes in the period (+, -) | Ending balance(Book value) | Ending balance of impairment provision | |||
| Additional investment | Capital reduction | Accrual of impairment provision | Other | |||||
| Shenzhen Emmelle Industrial Co., Ltd. | 10,379.73 | 10,379.73 | ||||||
| Shenzhen Xinsen Jewelry Gold Co., Ltd | 120,500,000.00 | 120,500,000.00 | ||||||
| Shenzhen Yunyouxuan Jewelry Technology Co., Ltd. | 5,250,000.00 | 5,250,000.00 | ||||||
| Total | 120,510,379.73 | 5,250,000.00 | 125,760,379.73 | |||||
(2) Investment for associates and joint venture
Unit: RMB/CNY
| Funded enterprise | Opening balance(Book value) | Changes in the period (+, -) | Ending balance(Book value) | Ending balance of impairment provision | |||||||
| Additional investment | Capital reduction | Investment gains recognized under equity | Other comprehensive income adjustment | Other equity change | Cash dividend or profit announced to issued | Accrual of impairment provision | Other | ||||
| I. Joint venture | |||||||||||
| II. Associated enterprise | |||||||||||
The recoverable amount is determined on the basis of the net amount of fair value less disposal costs
□Applicable ?Not applicable
The recoverable amount is determined by the present value of the projected future cash flows
□Applicable ?Not applicable
The reason for the obvious discrepancy between the foregoing information and the information used in theimpairment test of previous years or the external informationThe reason for the obvious discrepancy between the information used in the Company's impairment test in
previous years and the actual situation in the current year
（3）Other note
4. Operation revenue and operation cost
Unit: RMB/CNY
| Item | Current period incurred | Prior period incurred | ||
| Revenue | Cost | Revenue | Cost | |
| Main business | 41,648,464.52 | 36,082,094.24 | 24,987,989.13 | 22,297,957.34 |
| Other business | 1,193,561.03 | 1,052,051.60 | 1,214,376.83 | 1,119,937.21 |
| Total | 42,842,025.55 | 37,134,145.84 | 26,202,365.96 | 23,417,894.55 |
Breakdown of operating income and operating costs:
Unit: RMB/CNY
| Contract type | 1# Division | 2# Division | Total | |||||
| Revenue | Cost | Revenue | Cost | Revenue | Cost | Revenue | Cost | |
| Business type | 42,842,025.55 | 37,134,145.84 | 42,842,025.55 | 37,134,145.84 | ||||
| Including： | ||||||||
| Jewelry and gold | 41,648,464.52 | 36,082,094.24 | 41,648,464.52 | 36,082,094.24 | ||||
| Lithium battery material for bicycles and other | 1,193,561.03 | 1,052,051.60 | 1,193,561.03 | 1,052,051.60 | ||||
| Classification by business area | 42,842,025.55 | 37,134,145.84 | 42,842,025.55 | 37,134,145.84 | ||||
| Including： | ||||||||
| Domestic | 42,842,025.55 | 37,134,145.84 | 42,842,025.55 | 37,134,145.84 | ||||
| Market or customer type | ||||||||
| Including: | ||||||||
| Contract type | ||||||||
| Including: | ||||||||
| Classification by time of goods transfer | ||||||||
| Including: | ||||||||
| Classification by contract duration | ||||||||
| Including: | ||||||||
| Classification by sales channel | ||||||||
| Including: | ||||||||
| Total | 42,842,025.55 | 37,134,145.84 | 42,842,025.55 | 37,134,145.84 |
Information related to performance obligations:
| Item | The time to fulfill the performance obligation | Important payment terms | The nature of the goods that the company promises to transfer | Whether it is the main responsible person | The expected refunds to customers borne by the company | The types of quality assurance provided by the company and related obligations |
Other noteInformation relating to the transaction price assigned to the remaining performance obligation:
The amount of income corresponding to the performance obligations that have been signed at the end of thisreporting period but have not yet been fulfilled or have not done with fulfillment is 0.00 yuan, among them,yuan of revenue is expected to be recognized in year, yuan of revenue is expected to be recognized in year, andyuan of revenue is expected to be recognized in year.Significant contract changes or significant transaction price adjustments
Unit: RMB/CNY
| Item | Accounting treatment method | The impacted amount on revenue |
Other note：
5. Investment income
Unit: RMB/CNY
| Item | Current period incurred | Prior period incurred |
6. Other
XX. Supplementary Information
1. Current non-recurring gains/losses
?Applicable □Not applicable
Unit: RMB/CNY
| Item | Amount | Note |
| Switch-back of provision of impairment of account receivable which are treated with separate depreciation test | 41,300.00 | |
| Other non-operation revenue and expenditure except for the aforementioned items | 1,180,134.87 | |
| Less: Impact on income tax | 304,903.13 | |
| Amount of impact of minority interests | 29,308.22 | |
| Total | 887,223.52 | -- |
Details of other gains/losses items that meets the definition of non-recurring gains/losses:
□Applicable?Not applicable
There are no other gains/losses items that meet the definition of non-recurring gains/losses in the Company.Explain the items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/lossin Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss
□Applicable?Not applicable
2. ROE and EPS
| Profits during report period | Weighted average ROE | Earnings per share | |
| Basic EPS(RMB/Share) | Diluted EPS(RMB/Share) | ||
| Net profits belong to common stock stockholders of the Company | 1.83% | 0.0083 | 0.0083 |
| Net profits belong to common stock stockholders of the Company after deducting nonrecurring gains and losses | 1.55% | 0.007 | 0.007 |
3. Difference of the accounting data under accounting rules in and out of China
(1) Difference of the net profit and net assets disclosed in financial report, under both IAS (InternationalAccounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□Applicable?Not applicable
(2) Difference of the net profit and net assets disclosed in financial report, under both foreign accountingrules and Chinese GAAP (Generally Accepted Accounting Principles)
□Applicable?Not applicable
(3) Explain accounting difference over the accounting rules in and out of China; as for the differenceadjustment for data audited by foreign auditing organ, noted the name of such foreign organ
4. Other
Board of Directors of Shenzhen China Bicycle Company (Holdings) Limited
23 August 2024