CHANGCHAICOMPANY,LIMITED
INTERIMREPORT2019
August2019
PartIImportantNotes,TableofContentsandDefinitions
TheBoardofDirectors(orthe“Board”),theSupervisoryCommitteeaswellasthedirectors,supervisorsandseniormanagementofChangchaiCompany,Limited(hereinafterreferredtoasthe“Company”)herebyguaranteethefactuality,accuracyandcompletenessofthecontentsofthisReportanditssummary,andshallbejointlyandseverallyliableforanymisrepresentations,misleadingstatementsormaterialomissionstherein.ShiXinkun,theCompany’slegalrepresentative,ZhangXin,theCompany’sGeneralManager,andJiangHe,headoftheCompany’sfinancialdepartment(equivalenttofinancialmanager)herebyguaranteethattheFinancialStatementscarriedinthisReportarefactual,accurateandcomplete.AlltheCompany’sdirectorshaveattendedtheBoardmeetingforthereviewofthisReportanditssummary.Anyplansforthefutureandotherforward-lookingstatementsmentionedinthisReportanditssummaryshallNOTbeconsideredasabsolutepromisesoftheCompanytoinvestors.Investorsandotherstakeholdersshallbesufficientlyawareoftheriskandshalldifferentiatebetweenplans/forecastsandpromises.TheCompanyhasnointerimdividendplan,eitherintheformofcashorstock.ThisReportanditssummaryhavebeenpreparedinbothChineseandEnglish.Shouldtherebeanydiscrepanciesormisunderstandingsbetweenthetwoversions,theChineseversionsshallprevail.
TableofContents
PartIImportantNotes,TableofContentsandDefinitions ...... 2
PartIICorporateInformationandKeyFinancialInformation ...... 5
PartIIIBusinessSummary ...... 8
PartIVOperatingPerformanceDiscussionandAnalysis ...... 11
PartVSignificantEvents ...... 21
PartVIShareChangesandShareholderInformation ...... 29
PartVIIPreferredShares ...... 34
PartVIIIDirectors,Supervisors,SeniorManagementandStaff ...... 35
PartIXCorporateBonds ...... 36
PartXFinancialStatements ...... 37
PartXIDocumentsAvailableforReference ...... 151
Definitions
Term | Definition |
“Changchai”,the“Company”or“we” | ChangchaiCompany,Limitedanditsconsolidatedsubsidiaries,exceptwherethecontextotherwiserequires |
ChangchaiBenniu | ChangzhouChangchaiBenniuDieselEngineFittingsCo.,Ltd. |
ChangchaiWanzhou | ChangchaiWanzhouDieselEngineCo.,Ltd. |
HoushengInvestment | ChangzhouHoushengInvestmentCo.,Ltd. |
HoushengAgriculturalEquipment | ChangzhouChangchaiHoushengAgriculturalEquipmentCo.,Ltd. |
ChangchaiRobin | ChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd. |
ChangchaiMachinery | JiangsuChangchaiMachineryCo.,Ltd. |
RMB,RMB’0,000 | ExpressedintheChinesecurrencyofRenminbi,expressedintenthousandRenminbi |
The“ReportingPeriod”or“CurrentPeriod” | Theperiodfrom1January2019to30June2019 |
PartIICorporateInformationandKeyFinancialInformation
ICorporateInformation
Stockname | Changchai,Changchai-B | Stockcode | 000570,200570 |
Stockexchangeforstocklisting | ShenzhenStockExchange | ||
CompanynameinChinese | 常柴股份有限公司 | ||
Abbr.(ifany) | 苏常柴 | ||
CompanynameinEnglish(ifany) | CHANGCHAICOMPANY,LIMITED | ||
Abbr.(ifany) | CHANGCHAICO.,LTD. | ||
Legalrepresentative | ShiXinkun |
IIContactInformation
BoardSecretary | SecuritiesRepresentative | |
Name | HeJianjiang | |
Address | 123HuaideMiddleRoad,Changzhou,Jiangsu,China | |
Tel. | (86)519-68683155 | |
Fax | (86)519-86630954 | |
Emailaddress | cchjj@changchai.com |
IIIOtherInformation
1.ContactInformationoftheCompanyIndicatebytickmarkwhetheranychangeoccurredtotheregisteredaddress,officeaddressandtheirzipcodes,websiteaddressandemailaddressoftheCompanyintheReportingPeriod.
□Applicable√NotapplicableNochangeoccurredtothesaidinformationintheReportingPeriod,whichcanbefoundinthe2018AnnualReport.
2.MediaforInformationDisclosureandPlacewherethisReportisKeptIndicatebytickmarkwhetheranychangeoccurredtotheinformationdisclosuremediaandtheplaceforkeeping
theCompany’speriodicreportsintheReportingPeriod.
□Applicable√NotapplicableThenewspapersdesignatedbytheCompanyforinformationdisclosure,thewebsitedesignatedbytheCSRCfordisclosingtheCompany’speriodicreportsandtheplaceforkeepingsuchreportsdidnotchangeintheReportingPeriod.Thesaidinformationcanbefoundinthe2018AnnualReport.
IVKeyFinancialInformation
Indicatebytickmarkwhetherthereisanyretrospectivelyrestateddatuminthetablebelow.
□Yes√No
H12019 | H12018 | Change(%) | |
Operatingrevenue(RMB) | 1,115,829,845.59 | 1,186,760,892.26 | -5.98% |
Netprofitattributabletothelistedcompany’sshareholders(RMB) | 19,058,025.07 | 18,638,557.66 | 2.25% |
Netprofitattributabletothelistedcompany’sshareholdersbeforeexceptionalgainsandlosses(RMB) | 14,227,155.59 | 17,262,823.25 | -17.59% |
Netcashgeneratedfrom/usedinoperatingactivities(RMB) | -154,227,704.77 | -5,608,853.15 | - |
Basicearningspershare(RMB/share) | 0.0339 | 0.0332 | 2.11% |
Dilutedearningspershare(RMB/share) | 0.0339 | 0.0332 | 2.11% |
Weightedaveragereturnonequity(%) | 0.97% | 0.86% | 0.11% |
30June2019 | 31December2018 | Change(%) | |
Totalassets(RMB) | 3,640,229,950.93 | 3,542,019,195.75 | 2.77% |
Equityattributabletothelistedcompany’sshareholders(RMB) | 2,135,662,393.66 | 2,043,308,026.74 | 4.52% |
VAccountingDataDifferencesunderChineseAccountingStandards(CAS)andInternationalFinancialReportingStandards(IFRS)andForeignAccountingStandards
1.NetProfitandNetAssetDifferencesunderCASandIFRS
□Applicable√NotapplicableNosuchdifferencesfortheReportingPeriod.
2.NetProfitandNetAssetDifferencesunderCASandForeignAccountingStandards
□Applicable√NotapplicableNosuchdifferencesfortheReportingPeriod.
XIExceptionalGainsandLosses
√Applicable□Notapplicable
Unit:RMB
Item | ReportingPeriod | Note |
Gainorlossondisposalofnon-currentassets(inclusiveofimpairmentallowancewrite-offs) | 988,535.95 | |
Governmentsubsidieschargedtocurrentprofitorloss(exclusiveofgovernmentsubsidiesgivenintheCompany’sordinarycourseofbusinessatfixedquotasoramountsasperthegovernment’suniformstandards) | 129,300.00 | |
Gainorlossonfair-valuechangesintradingandderivativefinancialassetsandliabilities&incomefromdisposaloftradingandderivativefinancialassetsandliabilitiesandotherinvestmentsindebtobligations(exclusiveoftheeffectiveportionofhedgesthatariseintheCompany’sordinarycourseofbusiness) | 179,073.85 | |
Reversedportionsofimpairmentallowancesforloanbymandatewhicharetestedindividuallyforimpairment | 4,000,000.00 | |
Non-operatingincomeandexpenseotherthantheabove | 349,093.41 | |
Less:Incometaxeffects | 822,508.89 | |
Non-controllinginterestseffects(netoftax) | -7,375.16 | |
Total | 4,830,869.48 | -- |
ExplanationofwhytheCompanyreclassifiesasrecurrentanexceptionalgain/lossitemdefinedorlistedintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic—ExceptionalGain/LossItems:
□Applicable√NotapplicableNosuchcasesfortheReportingPeriod.
PartIIIBusinessSummary
IPrincipalActivityoftheCompanyintheReportingPeriod
IstheCompanysubjecttoanyindustry-specificdisclosurerequirements?No.Asamanufacturer,wespecializeinthemanufactureandsaleofdieselengines,dieselenginefittingsandcastings,gasolineengines,gasolineenginefittings,rotovators,walkingtractors,moldsandjigsaswellastheassemblyandsaleofdieselengineandgasolineenginesupportingsets.Wemainlymanufactureandsellsmallandmedium-sizedsingle-cylinderandmulti-cylinderdieselenginesunderthebrandof“Changchai”,whichareoftenusedintractors,combine-harvesters,lightcommercialvehicles,agricultureequipment,small-sizedengineeringmachinery,generatorsets,shipmachines,etc.
IISignificantChangesinMajorAssets
1.SignificantChangesinMajorAssets
Majorassets | Mainreasonforsignificantchanges |
Othercurrentassets | Theendingamountwasdownby17,988,799.29(or52.36%)fromthebeginningamount,primarilydrivenbyadeclineinoverpaidVAT. |
Accountsreceivable | TheendingamountwasupbyRMB364,413,521.17(or96.19%)fromthebeginningamount,primarilydrivenbytheCompany’smovetoproperlyallowcustomers’buyingoncreditinorderformoremarkets,andthefactthatmulti-cylinderdieselenginecustomersareusuallygivenlongerpaymentdaysfortheyaremostlysupportingmanufacturers. |
Advancesfromcustomers | TheendingamountwasupbyRMB24,309,044.71(or70.46%)fromthebeginningamount,primarilydrivenbyariseinadvancesfromcustomers. |
2.MajorAssetsOverseas
□Applicable√NotapplicableIIICoreCompetitivenessAnalysisIstheCompanysubjecttoanyindustry-specificdisclosurerequirements?No.
1.AdvantagesinBrand
Changchaiisanationalindustrialenterprisewithahistoryofoveronehundredyears.ItisoneoftheearliestprofessionalmanufacturersofinternalcombustionenginesinChina.Thebrand"Changchai"istheearliestdomestictrademarkofproductiongoodsknownasChina'swell-knowntrademarks.Thedieselengineof"Changchai"brandisChina'sbrand-nameproduct.TheenterprisehasbeencertifiedbyISO9001andIATF16949qualitysystems,ISO14001environmentalmanagementsystem,ISO/TS16949automotiveproductqualitymanagementsystem,andaccessedtothenationalexport-freeenterprisequalification.Changchaiwashonorablyrankedamong“theTopOneHundredChineseEnterprisesinEngineeringIndustry”and“ChinaPacesetterEnterpriseofIndustrialIndustry”forseveraltimes,andwasawardedthehonorarytitleof“State-levelEnterpriseofObservingContractsandKeepingPromise”,“China'sAgriculturalMachineryPartsandComponentsLeadingEnterprises”,“China'sAgriculturalMachineryAAACreditEnterprise”,“QualityManagementExcellenceAwardofJiangsuProvince”and“MayorQualityAwardofChangzhouCity”.TheCompanyhasbeenamongthe“JiangsuIndependentIndustriesBrandTop50”forfouryearsinarow.Also,ithasbeenamongthe10users’mostsatisfiedleadingbrandsin“JingGeng”competitionformanyyears.In2019,theCompanyonceagainwasgiventhetitleof“Top50IndustrialBrandsofJiangsuProvince”,amongothers.Formanyyears,intheprocessofachievingsteadyeconomicdevelopmentoftheenterprise,wedevelopedinasoundmannerandcultivatedthe“Changchai”brand,afamoussmalldieselenginebrandofChinawithindependentintellectualpropertyrights.
2.AdvantagesinTechnologyTheCompanyhasastate-leveltechnologycenterandpost-doctoralresearchstation,andaresearchcenterofsmallandmedium-powerinternalcombustionengineengineeringandtechnologyinJiangsuProvince.Currently,itismainlyengagedinproductionofsmallandmedium-powersingle-cylinderandmulti-cylinderdieselengine.Ithasacompleteproductrange,awidepowerlevelcoverage,ahighreputationandintellectualpropertyrightsforitsmainproducts.Its4G33TCdieselenginehasbeenincludedintheprovincialcatalogofkeynewtechnologiesandproductstobepromoted.Its4G33TCand3M78dieselengineshavebeenrecognizedas“high-techproducts”attheprovinciallevel.Its4G33multi-cylinderdieselengineshavewontheAnnualInnovativeProductAwardintheagriculturalmachineryindustry.Andits3M78lightenginewontheNewProprietaryProductGoldenAwardforEquipmentManufacturingSectorattheprovinciallevel.DuringtheReportingPeriod,theCompanyfiledfor1patentandwasgranted5patents.Currently,theCompanyhasatotalof144patentsgrantedbyauthoritiesathomeandabroad,including14inventionpatents.
3.AdvantagesinMarketingChangchaihasbuiltupasalesservicenetworkcoveringthewholecountry,with5salesbusinessunits,27sales
servicecenters,over900servicestationsand750designatedmaintenancestations.Inaddition,inordertomeettheNationalEmissionStandardIVforNon-RoadVehiclesandprovidebetterafter-salesserviceforcustomers,aservicemonitoringplatformwithChangchaicharacteristicshasbeenputinplace.Withaperfectdieselsalesservicenetworksystem,theCompanyisabletoprovidehighquality,efficientandtimelyservicesforcustomers.
PartIVOperatingPerformanceDiscussionandAnalysisIOverview
Thefirsthalfof2019sawatroughoftheagriculturalmachinerymarket,whichisexpectedtocontinue.Duringthisperiod,theCompanysold361,100unitsofdieselengines,gasolineenginesandrelatedgeneratorsets,including69,300unitsofgasolineengines,generatingtotalsalesrevenueofRMB1,115,829,845.59,adropof
5.98%year-on-year.IntheReportingPeriod,theCompanystrengthenedproductadvantages,acceleratedmarketexpansion,andpushedforwardproductplanningstepbystep.Also,itattachedimportancetoservicemanagementtoincreaseserviceefficiency,andenhancedinternalmanagementforbettercostefficiency.Throughtheseefforts,ithasachievedthefollowingresults:
ProductR&Dandinnovation:TheCompanycontinuedtodrivetheR&Dandreserveofdieselenginefornon-roadvehiclesprojectunderChina’sMotorVehicleEmissionStandardsIVanddieselengineforautomotiveuseprojectunderChina’sMotorVehicleEmissionStandardsVI.Thedevelopmentandapplicationoftheremotemonitoringplatformenteredthestageofsoftwaredeployment,andtheplatformprovidedfavorablesupporttothereductionintheCompany’sservicecostsof“threeguarantees”.Qualitymanagement:Inlightoftheadjustmenttoitsorganizationalstructure,theCompanyreviseditssystemdocuments,whichpassedtheinternalauditinApril2019.InJune,theCompanypassedtheexternalauditofitsISO9001andIATF16949qualitymanagementsystemsbyCASCandthespotcheckbyChinaNationalAccreditationServiceforConformityAssessment.Marketingmanagement:TheCompanysolidifiedtheexistingadvantagesandenlargedtheshareofsuperiorproducts.Itkeptimprovingservicecapabilitiesbybuildinggoodcooperativepartnershipwithcustomersandsuppliers,adaptingtomarketchangesforopportunitiestoexpandthemarketandpromotingnewareasofsupportingproducts.Asaresult,customersatisfactionkeptrising.Internalmanagement:TheCompanyreinforcedtheconstructionofinternalcontrolsystemandthesupervisionofkeyprojects.Bydeepeningthemedium-termspecialaudit,itimprovedriskpreventionandcontrolabilityandthequalityofinternalauditwork.Astimelymeasuresaretakentosolveproblems,operationalefficiencyoftheCompanyisimproved.Market:Intraditionalagriculturesector,facingincreasingmarketcompetition,theCompanyestablishedasales
policyofstabilizingthemarketsharesofitstwomainenginefactorieswhiledevelopingnewmarketsandnewfieldswithtargetedmarketinginkeyregions,whichledtosomeachievements.Althoughthetotalmarketofsinglecylinderengineindustryfellsubstantially,declineintheCompany’ssalesofsinglecylinderengineswaslowerthantheindustrialaverage.Changchaimaintaineditsindustrialtoppositionintermsofitsmarketshareofsinglecylinderengines.Innon-roadsector,anincreasewasseenintheCompany’smarketshareofmulti-cylinderenginesintractors,harvesters,cornharvesters,withadvantagedfieldsbeingfurtherstrengthened.Furthermore,inlightofthecontinuousdeclineinagriculturesector,theCompanycontinuedtoexpandnon-agriculturemarketbystrivingtodevelopmarketsharesinsuchsupportingmarketsascoastal,projectinfrastructureandsmallprojectmachinery,inadditiontostabilizingitsmarketshareofconstructionmachineryandprospectingmachinery.Outboundinvestment:InFebruary2019,theCompanyfoundedJiangsuChangchaiMachineryCo.,Ltd.,awhollyownedsubsidiaryoftheCompany,whichengagesinproductionprojectsoflightenginesandcastings.Asaresult,thenumberoftheCompany’smajority-ownedsubsidiarieshasincreasedtosix.IIAnalysisofCoreBusinessesSee“IOverview”above.Year-on-yearchangesinkeyfinancialdata:
Unit:RMB
H12019 | H12018 | Change(%) | Mainreasonforchange | |
Operatingrevenue | 1,115,829,845.59 | 1,186,760,892.26 | -5.98% | |
Costofsales | 970,438,847.36 | 1,034,354,908.99 | -6.18% | |
Sellingexpense | 58,258,398.98 | 52,228,075.86 | 11.55% | |
Administrativeexpense | 34,102,694.86 | 28,367,615.31 | 20.22% | |
Financecosts | -1,780,811.62 | -132,337.12 | - | |
Incometaxexpense | -2,998,475.83 | 4,352,526.65 | - | Thisismainlybecausethecompanyreceived6,700,210.88yuanofcorporateincometaxrefundin2018inJune2019. |
R&dspending | 30,064,283.46 | 34,066,872.15 | -11.75% | |
Netcashgenerated | -154,227,704.77 | -5,608,853.15 | - | Thisismainlydue |
from/usedinoperatingactivities | totheincreaseofaccountsreceiveableinthecurrentreportingperiod. | |||
Netcashgeneratedfrom/usedininvestingactivities | -16,253,804.42 | -29,078,866.20 | - | |
Netcashgeneratedfrom/usedinfinancingactivities | -22,977,861.20 | -8,263,008.91 | - | |
Netincreaseincashandcashequivalents | -193,459,370.39 | -42,950,728.26 | - |
MaterialchangestotheprofitstructureorsourcesoftheCompanyintheReportingPeriod:
□Applicable√NotapplicableNosuchchangesintheReportingPeriod.Breakdownofcorebusinesses:
Unit:RMB
Operatingrevenue | Costofsales | Grossprofitmargin | YoYchangeinoperatingrevenue(%) | YoYchangeincostofsales(%) | YoYchangeingrossprofitmargin(%) | |
Byoperatingdivision | ||||||
Internalcombustionengines | 1,099,044,681.77 | 958,911,511.17 | 12.75% | -6.08% | -6.10% | 0.01% |
Byproductcategory | ||||||
Dieselengines | 1,030,299,707.19 | 901,543,063.26 | 12.50% | -6.96% | -6.6% | -2.64% |
Gasolineengines | 68,744,974.58 | 57,368,447.91 | 16.55% | 9.44% | 2.5% | 5.65% |
Byoperatingsegment | ||||||
Domestic | 946,082,606.49 | 810,225,144.20 | 14.36% | -4.70% | -4.50% | -0.18% |
Overseas | 152,962,075.28 | 148,686,366.97 | 2.80% | -13.82% | -13.93% | 0.13% |
IIIAnalysisofNon-CoreBusinesses
□Applicable√Notapplicable
IVAnalysisofAssetsandLiabilities
1.MaterialChangesinAssetComposition
Unit:RMB
30June2019 | 30June2018 | Changeinpercentage(%) | Reasonformaterialchange | |||
Amount | As%oftotalassets | Amount | As%oftotalassets | |||
Monetarycapital | 628,482,778.12 | 17.26% | 445,858,926.17 | 12.07% | 5.19% | |
Accountsreceivable | 743,272,680.28 | 20.42% | 809,459,781.25 | 21.91% | -1.49% | |
Inventories | 480,107,549.12 | 13.19% | 406,509,269.60 | 11.00% | 2.19% | |
Investmentproperty | 49,551,837.23 | 1.36% | 51,760,178.03 | 1.40% | -0.04% | |
Long-termequityinvestments | 0.00 | 0.00% | 0.00 | 0.00% | 0.00% | |
Fixedassets | 473,064,733.73 | 13.00% | 525,895,299.42 | 14.23% | -1.23% | |
Constructioninprogress | 80,277,379.05 | 2.21% | 86,375,849.20 | 2.34% | -0.13% | |
Short-termborrowings | 22,000,000.00 | 0.60% | 28,700,000.00 | 0.78% | -0.18% | |
Long-termborrowings | 0.00% | 21,500,000.00 | 0.58% | -0.58% | ||
Non-currentliabilitiesduewithinoneyear | 18,500,000.00 | 0.51% | 0.00 | 0.00 | - | Thisismainlyduetothetransferoflong-termborrowingsof18.5millionyuanintonon-currentliabilitiesduewithinoneyearduringthereportingperiod |
2.AssetsandLiabilitiesatFairValue
√Applicable□Notapplicable
Unit:RMB
Item | Beginningamount | Gain/lossonfair-valuechangesintheReportingPeriod | Cumulativefair-valuechangeschargedtoequity | ImpairmentallowancefortheReportingPeriod | PurchasedintheReportingPeriod | SoldintheReportingPeriod | Endingamount |
Financialassets | |||||||
Otherinvestmentinequityinstruments | 370,940,000.00 | 351,736,375.00 | 473,682,000.00 | ||||
Totalofabove | 370,940,000.00 | 351,736,375.00 | 473,682,000.00 | ||||
Financialliabilities | 0.00 | 0.00 | 0.00 | 0.00 |
SignificantchangestothemeasurementattributesofthemajorassetsintheReportingPeriod:
□Yes√No
3.RestrictedAssetRightsasofEndofReportingPeriod
Item | Endingcarryingvalue | Reasonsforrestriction |
Monetarycapital | 134,862,508.92 | Cashdepositsofbankacceptancebill |
Housebuilding | 2,936,446.13 | Pledgeforbankloans |
Landuseright | 995,328.00 | Pledgeforbankloans |
Machineryequipment | 48,181,935.62 | Pledgeforbankloans |
Total | 186,976,218.67 |
VInvestmentsMade
1.TotalInvestmentAmount
√Applicable□Notapplicable
Investmentduringreportingperiod(RMB) | Investmentinthesameperiodoflastyear(RMB) | Change |
10,000,000.00 | 0.00 | - |
2.MajorEquityInvestmentsMadeintheReportingPeriod
√Applicable□Notapplicable
Nameofinvestedcompany | Themainbusiness | Investmentway | Investmentamount | stake | Sourcesoffunding | partner | Investmenthorizon | Theproducttype | Progressasofbalancesheetdate | Expectedearnings | Currentinvestmentprofitandloss | Whetherornotit | Dateofdisclosure(ifany) | Disclosureindex(ifany) |
Jiangsuchangchaimachineryco.LTD | Internalcombustionengineandsupportingunits,etc | Setup | 10,000,000.00 | 100.00% | ownfunds | no | long-term | Dieselenginefittings | Industrialandcommercialregistrationhasbeencompleted | 0.00 | -94,337.74 | no | February26,2019 | 2019-004 |
Total | -- | -- | 10,000,000.00 | -- | -- | -- | -- | -- | -- | 0.00 | -94,337.74 | -- | -- | -- |
3.MajorNon-EquityInvestmentsOngoingintheReportingPeriod
□Applicable√Notapplicable
4.FinancialInvestments
(1)SecuritiesInvestments
□Applicable√Notapplicable
NosuchcasesintheReportingPeriod.
(2)InvestmentsinDerivativeFinancialInstruments
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.VISaleofMajorAssetsandEquityInterests
1.SaleofMajorAssets
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
2.SaleofMajorEquityInterests
□Applicable√NotapplicableVIIMainControlledandJointStockCompanies
√Applicable□NotapplicableMainsubsidiariesandjointstockcompanieswithanover10%influenceontheCompany’snetprofit
Unit:RMB
Name | RelationshipwiththeCompany | Principalactivity | Registeredcapital | Totalassets | Netassets | Operatingrevenue | Operatingprofit | Netprofit |
ChangchaiBenniu | Subsidiary | Productionofdieselengineaccessories | 55,063,000.00 | 167,463,298.36 | 88,092,596.77 | 82,967,069.94 | -1,910,681.66 | -1,687,454.30 |
ChangchaiWanzhou | Subsidiary | Dieselengineassembly | 85,000,000.00 | 139,319,910.91 | 116,731,410.22 | 23,600,857.49 | 334,830.50 | 257,014.16 |
HoushengInvestment | Subsidiary | Externalinvestmentandconsulting | 40,000,000.00 | 47,362,830.35 | 46,587,114.76 | 273,786.40 | 189,266.31 | 170,512.15 |
Housheng | Subsidiar | agricultur | 10,000,0 | 34,370,5 | 803,456. | 6,815,42 | -643,24 | -570,014.5 |
AgriculturalEquipment | y | almachineryproductofricetransplanteretc. | 00.00 | 57.22 | 64 | 3.91 | 5.33 | 7 |
ChangchaiRobin | Subsidiary | Gasolineenginesassembly | 37,250,000.00 | 97,572,124.79 | 80,992,921.04 | 68,744,974.58 | 4,558,034.06 | 3,428,638.44 |
ChangchaiMachinery | Subsidiary | Internalcombustionengineandaccessoriesthereof | 300,000,000.00 | 9,907,374.87 | 9,905,662.26 | 0.00 | -94,337.74 | -94,337.74 |
SubsidiariesobtainedordisposedintheReportingPeriod:
√Applicable□Notapplicable
Subsidiary | HowsubsidiarywasobtainedordisposedintheReportingPeriod | Effectsonoveralloperationsandoperatingperformance |
JiangsuChangchaiMachineryCo.,Ltd. | Set-up | Itconformstothelong-termdevelopmentplanningoftheCompanyaswellastheinterestsofallshareholdersandtheCompany.ItisestimatedthatnomaterialeffectsontheCompany’sfinancialconditionandoperatingperformancewillbegenerated. |
Informationaboutmajormajority-andminority-ownedsubsidiaries:
(1)Onthe15
th
Meetingofthe8
th
BoardofDirectorsoftheCompanyheldon27November2018,theProposalonIncreasingCapitalofWholly-OwnedSubsidiarieswasconsideredandapproved.TheproposalplannedtoincreasethecapitalofChangzhouHoushengInvestmentCo.,Ltd.(hereinafterreferredtoas“HoushengInvestment”),awholly-ownedsubsidiaryoftheCompany,withaself-ownedfundofRMB10million.Afterthecapitalincrease,HoushengInvestment’sregisteredcapitalwouldincreasefromRMB30milliontoRMB40million.On14February2019,HoushengInvestmentcompletedtheproceduresofchangeinbusinessregistrationforthecapitalincreaseandobtainedthenewBusinessLicenseissuedbyChangzhouAdministrationforIndustry&Commerce.Formoredetails,pleaserefertotheAnnouncementonIncreasingCapitalofWholly-OwnedSubsidiaries(AnnouncementNo.:2018-034)andtheAnnouncementontheProgressofIncreasingCapitalofWholly-OwnedSubsidiaries(AnnouncementNo.2019-002)publishedonSecuritiesTimes,HongKongTaKungPaoandwww.cninfo.com.cnon29November2018andon15February2019.
(2)On26December2018,theCompanyofficiallyenteredintotheInvestmentAgreementwiththeHi-TechZoneofChangzhou.Accordingtotheagreement,theCompanywouldcontributeacapitalofRMB300milliontoestablishawholly-ownedsubsidiarytoengageinproductionprojectsoflightenginesandcastings.TheCompany
convenedanon-scheduledmeetingoftheBoardofDirectorson25February2019,wheretheProposalonEstablishingaWholly-OwnedSubsidiarytoImplementProductionProjectsofLightEnginesandCastingswasapproved.Businessregistrationproceduresforthewholly-ownedsubsidiarywerecompletedon6March2019,withtheobtainmentoftheBusinessLicenseissuedbythebureauofadministrativeapprovaloftheNationalHi-TechIndustryDevelopmentZone(XinbeiDistrict)ofChangzhou.Formoredetails,pleaserefertotheAnnouncementonOutboundInvestmentandProposaltoEstablishaWholly-OwnedSubsidiary(AnnouncementNo.2019-004)andtheAnnouncementontheProgressoftheOutboundInvestmentandProposaltoEstablishaWholly-OwnedSubsidiary(AnnouncementNo.2019-005)publishedonSecuritiesTimes,TaKungPaoandwww.cninfo.com.cnon26February2019andon7March2019.
VIIIStructuredBodiesControlledbytheCompany
□Applicable√NotapplicableIXPerformanceForecastforJanuary-September2019WarningofpossiblelossorconsiderableYoYchangeintheaccumulativenetprofitmadeduringtheperiod-beginningtotheendofthenextreportingperiod,aswellasthereasons:
□Applicable√Notapplicable
XRisksFacingtheCompanyandCountermeasures
1.MarketriskTheCompany’smainbusinesslacksdiversity,facesincreasingpressurefromemissionupgradingandthereplacementofnewenergyindustry,andischallengedbyevenbiggerdifficultiesinmarketingonthecurrentbackdropofdeepadjustmenttoagriculturalmachineryindustry.Countermeasures:Intermsofmainbusiness,theCompanyshouldmakeitscurrentadvantagedproductsstronger,expandsupportingfieldsanddevelopnewmarkets;itshouldworkhardontechnicalupgradingandR&D,andtakeadvantageoftheopportunitybroughtbyChina’sMotorVehicleEmissionStandardsIVtoovertakeatthecorner,rapidlymakeplansinadvanceandinvolveinnewindustries,inanefforttotranslatetechnologyedgesintoproductandcompetitiveedges.Intermsofmarketing,theCompanyshouldstrengthenthedevelopmentoftheT-Boxagriculturalmachinerymonitoringplatformandfurtherreduceservicecostsandincreaseserviceefficiencywhilemaintainingtheoriginalsalesteamandnetwork.
2.ProcurementriskTheseverepressureonsafetyandenvironmentalprotectionhasledtothehighercostsofpartsmanufacturing,moredemandsforpriceadjustmentbysuppliers,andtheincreasedinstabilityofsuppliers.Therearesomerisksintheprocurementandsupplyofparts.
Countermeasures:TheCompanyshallhighlypayattentiontotheoperatingrisksofsuppliers,thesuppliers’dynamicwithrelativelyhighsupplyofparts,andthesuppliers’dynamicwithlittleenthusiasmforcooperationorwhosebusinessisbeingadjusted,formulatetargeteddisposalplans,andtakethequalitycostasonefactortochoosesuppliers.
3.QualityriskProductinnovationandupgradingandtheexpansioninsupportingfieldsareraisingincreasinglyhigherrequirementsforthequalityindicatorsofrelatedpartsandforthequalityofwholemachinematching.Countermeasures:TheCompanyshouldcontinuetofocusonquality,baseontheengagementofallemployees,raisetheawarenessforqualityassurance,beefupmutualinspectionofparts,intensifyon-the-spotappraisalofpartsqualitytoeliminateunqualifiedproducts,reinforceinspectionabilitiesandspotauditswithafocusonsuppliersofaverageorpoorqualityproducts,andgivefullplaytotheCompany’scomprehensivequalitymanagementsystemandexcellentqualitymanagementteam.
PartVSignificantEvents
IAnnualandExtraordinaryGeneralMeetingConvenedduringtheReportingPeriod
1.GeneralMeetingConvenedduringtheReportingPeriod
Meeting | Type | Investorparticipationratio | Conveneddate | Disclosuredate | Indextodisclosedinformation |
The2018AnnualGeneralMeeting | AnnualGeneralMeeting | 30.83% | 16May2019 | 17May2019 | 2019-019 |
2.ExtraordinaryGeneralMeetingConvenedatRequestofPreferenceShareholderswithResumedVotingRights
□Applicable√Notapplicable
IIInterimDividendPlanfortheReportingPeriod
□Applicable√NotapplicableTheCompanyhasnointerimdividendplan.IIICommitmentsoftheCompany’sActualController,Shareholders,ConnectedPartiesandAcquirer,aswellastheCompanyandOtherCommitmentMakers,FulfilledintheReportingPeriodorstillOngoingatPeriod-End
√Applicable□Notapplicable
Commitment | Promisor | Typeofcommitment | Detailsofcommitment | Dateofcommitmentmaking | Termofcommitment | Fulfillment |
Othercommitmentsmadetominorityshareholders | ChangchaiCompany,Limited | bonus | RewardsPlanforShareholdersinNextThreeYears(2017-2019)Underthepremiseofpositivedistributiveprofit(remainingafter-taxprofitsaftermakingup | 11May2017 | Year2017-2019 | Ongoing |
forthelossandextractingforthecommonreserves)inthisyearorhalfyearandabundantmoneyflowandnoinfluenceonthefollowing-upgoingconcernaftercashbonus,theprofitsallocatedbycasheveryyearshouldn’tbelowerthan10%oftheallocableprofitsfromparentcompany.Meanwhile,theaccumulatedallocableprofitsbycashinthearbitrarycontinuousthreeaccountingyearsshouldnotbelowerthan30%oftheannualaverageallocableprofitsinthosethreeyears. | |||
Fulfilledontime | Yes | ||
Specificreasonsforfailingtofulfillcommitmentsontimeandplansfornextstep(ifany) | N/A |
IVEngagementandDisengagementofCPAsFirm
HastheInterimfinancialreportbeenaudited?
□Yes√NoThisInterimReportisunaudited.VExplanationsGivenbyBoardofDirectorsandSupervisoryCommitteeRegarding“ModifiedAuditor’sReport”IssuedbyCPAsFirmfortheReportingPeriod
□Applicable√Notapplicable
VIExplanationsGivenbyBoardofDirectorsRegarding“ModifiedAuditor’sReport”IssuedforLastYear
□Applicable√Notapplicable
VIIBankruptcyandRestructuring
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.VIIILegalMattersSignificantlawsuitsorarbitrations:
√Applicable□Notapplicable
Generalinformation | Involvedamount(RMB’0,000) | Provision | Progress | Decisionsandeffects | Executionofdecisions | Disclosuredate | Indextodisclosedinformation |
AboutthelawsuitcaseofShandongHongliGroupCo.,Ltd.,theaccusedcompanyowedaccumulativelyRMB14.36milliontotheCompany.TheCompanysuedtoChangzhouIntermediatePeople’sCourtin2001andsuedforcompulsoryexecutioninApril,2002.Currently,thedefendanthasstartedthebankruptcyprocedure. | 1,436 | No | Judgedforthesecondtrial | N/A | Underthecompulsoryexecutionbythecourtandintheprocessofliquidationandbankruptcy |
Otherlegalmatters:
□Applicable√Notapplicable
IXPunishmentsandRectifications
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
XCreditConditionsoftheCompanyaswellasitsControllingShareholderandActualController
□Applicable√Notapplicable
XIEquityIncentivePlans,EmployeeStockOwnershipPlansorOtherIncentiveMeasuresforEmployees
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XIIMajorRelated-PartyTransactions
1.ContinuingRelated-PartyTransactions
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
2.Related-PartyTransactionsRegardingPurchaseorSalesofAssetsorEquityInterests
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
3.RelatedTransactionsRegardingJointInvestmentsinThirdParties
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
4.CreditsandLiabilitieswithRelatedParties
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
5.OtherMajorRelated-PartyTransactions
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
XIIIOccupationoftheCompany’sCapitalbytheControllingShareholderorItsRelatedPartiesforNon-OperatingPurposes
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XIVMajorContractsandExecutionthereof
1.Entrustment,ContractingandLeases
(1)Entrustment
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
(2)Contracting
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
(3)Leases
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
2.MajorGuarantees
√Applicable□Notapplicable
(1)Guarantees
Unit:RMB'0,000
GuaranteesprovidedbytheCompanyforexternalparties(exclusiveofthoseforsubsidiaries) | ||||||||
Obligor | Disclosuredateoftheguaranteelineannouncement | Lineofguarantee | Actualoccurrencedate(Agreementsigningdate) | Actualguaranteeamount | Typeofguarantee | Termofguarantee | Havingexpiredornot | Guaranteeforarelatedpartyornot |
GuaranteesprovidedbytheCompanyforitssubsidiaries | ||||||||
Obligor | Disclosuredate | Lineofguarant | Actualoccurrence | Actualguarantee | Typeofguarantee | Termofguarantee | Having | Guarantee |
oftheguaranteelineannouncement | ee | date(Agreementsigningdate) | amount | expiredornot | forarelatedpartyornot | |||
ChangzhouChangchaiHoushengAgriculturalEquipmentCo.,Ltd. | 29November2018 | 2,000 | 29November2018 | 2,000 | Jointliability | 1year | No | No |
TotalapprovedlineforsuchguaranteesintheReportingPeriod(B1) | 2,000 | TotalactualamountofsuchguaranteesintheReportingPeriod(B2) | 2,000 | |||||
TotalapprovedlineforsuchguaranteesattheendoftheReportingPeriod(B3) | 2,000 | TotalactualbalanceofsuchguaranteesattheendoftheReportingPeriod(B4) | 2,000 | |||||
Guaranteesprovidedbetweensubsidiaries | ||||||||
Obligor | Disclosuredateoftheguaranteelineannouncement | Lineofguarantee | Actualoccurrencedate(Agreementsigningdate) | Actualguaranteeamount | Typeofguarantee | Termofguarantee | Havingexpiredornot | Guaranteeforarelatedpartyornot |
Totalguaranteeamount(totalofthethreekindsofguaranteesabove) | ||||||||
TotalguaranteelineapprovedintheReportingPeriod(A1+B1+C1) | 2,000 | TotalactualguaranteeamountintheReportingPeriod(A2+B2+C2) | 2,000 | |||||
TotalapprovedguaranteelineattheendoftheReportingPeriod(A3+B3+C3) | 2,000 | TotalactualguaranteebalanceattheendoftheReportingPeriod(A4+B4+C4) | 2,000 | |||||
Totalactualguaranteeamount(A4+B4+C4)as%oftheCompany’snetassets | 0.94% | |||||||
Ofwhich: | ||||||||
Balanceofguaranteesprovidedforshareholders,actualcontrollerandtheirrelatedparties(D) | 0 | |||||||
Balanceofdebtguaranteesprovideddirectlyorindirectlyforobligorswithanover70%debt/asset | 2,000 |
ratio(E) | |
Amountbywhichthetotalguaranteeamountexceeds50%oftheCompany’snetassets(F) | 0 |
Totalofthethreeamountsabove(D+E+F) | 2,000 |
Explanationonpossibilitytobearjointliabilityduetoundueguarantees(ifany) | N/A |
Explanationontheexternalguaranteesinviolationofstipulatedprocedures(ifany) | N/A |
Compoundguarantees
(2)IrregularitiesinProvisionofGuarantees
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
3.OtherMajorContracts
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XVCorporateSocialResponsibility(CSR)
1.SignificantEnvironmentProtectionIndicatebytickmarkwhethertheCompanyoranyofitssubsidiariesisaheavilypollutingbusinessidentifiedbytheenvironmentalprotectionauthoritiesofChinaNoTheCompanyanditssubsidiariesarenotthemajorpolluteridentifiedbytheenvironmentalprotectionauthoritiesofChinaduringtheReportingPeriod.TheCompanyattachesgreatimportancetotheworkofenvironmentalprotection,andrequiresthesubsidiariestobuildcorrespondingenvironmentalprotectionfacilitiesaccordingtotheactualsituationofproductionandoperation,strictlycontrollingthepollutants,like“wastegas,wastewater,andwasteresidue”generatedfromtheproductionprocess.
2.MeasuresTakenforTargetedPovertyAlleviationTheCompanydidnottakeanytargetedmeasurestohelppeopleliftthemselvesoutofpovertyduringtheReportingPeriod,alsonosubsequentplans.
XVIOtherSignificantEvents
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
XVIISignificantEventsofSubsidiaries
□Applicable√Notapplicable
PartVIShareChangesandShareholderInformationI.ShareChanges
1.ShareChanges
Unit:share
Before | Increase/decreaseintheReportingPeriod(+/-) | After | |||||||
Shares | Percentage(%) | Newissues | Sharesasdividendconvertedfromprofit | Sharesasdividendconvertedfromcapitalreserves | Other | Subtotal | Shares | Percentage(%) | |
I.Restrictedshares | 0 | 0.00% | 0 | 0.00% | |||||
1.SharesheldbyState | 0 | 0.00% | 0 | 0.00% | |||||
2.Sharesheldbystate-ownedlegalperson | 0 | 0.00% | 0 | 0.00% | |||||
3.Sharesheldbyotherdomesticinvestors | 0 | 0.00% | 0 | 0.00% | |||||
Amongwhich:Sharesheldbydomesticlegalperson | 0 | 0.00% | 0 | 0.00% | |||||
Sharesheldbydomesticnaturalperson | 0 | 0.00% | 0 | 0.00% | |||||
4.Sharesheldbyforeigninvestors | 0 | 0.00% | 0 | 0.00% | |||||
Amongwhich:Sharesheldbyforeignlegalperson | 0 | 0.00% | 0 | 0.00% | |||||
Share | 0 | 0.00% | 0 | 0.00% |
sheldbyforeignnaturalperson | |||||
II.Unrestrictedshares | 561,374,326 | 100.00% | 561,374,326 | 100.00% | |
1.RMBcommonshares | 411,374,326 | 73.28% | 411,374,326 | 73.28% | |
2.Domesticallylistedforeignshares | 150,000,000 | 26.72% | 150,000,000 | 26.72% | |
3.Overseaslistedforeignshares | 0 | 0.00% | 0 | 0.00% | |
4.Others | 0 | 0.00% | 0 | 0.00% | |
III.Totalshares | 561,374,326 | 100.00% | 561,374,326 | 100.00% |
Reasonsforsharechanges:
□Applicable√NotapplicableApprovalofsharechanges:
□Applicable√NotapplicableTransferofshareownership:
□Applicable√NotapplicableProgressonanysharerepurchases:
□Applicable√NotapplicableProgressonreducingtherepurchasedsharesbymeansofcentralizedbidding:
□Applicable√NotapplicableEffectsofsharechangesonthebasicanddilutedearningspershare,equitypershareattributabletotheCompany’sordinaryshareholdersandotherfinancialindicatorsoftheprioryearandtheprioraccountingperiod,respectively:
□Applicable√NotapplicableOtherinformationthattheCompanyconsidersnecessaryorisrequiredbythesecuritiesregulatortobedisclosed:
□Applicable√Notapplicable
2.ChangesinRestrictedShares
□Applicable√NotapplicableII.IssuanceandListingofSecurities
□Applicable√NotapplicableIII.TotalNumberofShareholdersandTheirShareholdings
Unit:share
Totalnumberofordinaryshareholdersattheperiod-end | 55,742 | Totalnumberofpreferenceshareholderswithresumedvotingrightsattheperiod-end(ifany)(seenote8) | 0 | |||||||
5%orgreaterordinaryshareholdersorthetop10ordinaryshareholders | ||||||||||
Nameofshareholder | Natureofshareholder | Shareholdingpercentage(%) | Totalsharesheldattheperiod-end | Increase/decreaseduringtheReportingPeriod | Numberofrestrictedsharesheld | Numberofnon-restrictedsharesheld | Pledgedorfrozenshares | |||
Status | Number | |||||||||
ChangzhouInvestmentGroupCo.,Ltd | State-ownedlegalperson | 30.43% | 170,845,236 | 170,845,236 | ||||||
KGIAsiaLimited | Foreignlegalperson | 0.57% | 3,189,845 | 3,189,845 | ||||||
HuangGuoliang | Domesticnaturalperson | 0.27% | 1,528,891 | 1,528,891 | ||||||
HuWenyong | Domesticnaturalperson | 0.27% | 1,528,066 | 1,528,066 | ||||||
LiSuinan | Domesticnaturalperson | 0.27% | 1,507,800 | 1,507,800 | ||||||
TaoXiaofang | Domesticnaturalperson | 0.22% | 1,228,000 | 1,228,000 | ||||||
XueHong | Domesticnaturalperson | 0.22% | 1,220,000 | 1,220,000 | ||||||
VanguardInvestmentAustraliaLtd-VanguardEmergingMarketStockIndexFund(Exchange) | Foreignlegalperson | 0.21% | 1,196,785 | 1,196,785 | ||||||
XieDeqing | Domesticnaturalperson | 0.20% | 1,140,100 | 1,140,100 |
CentralHuijinAssetManagementCo.,Ltd. | State-ownedlegalperson | 0.20% | 1,107,900 | 1,107,900 | ||||
Strategicinvestororgenerallegalpersonbecomingatop-10ordinaryshareholderduetorightsissue(ifany)(seenote3) | N/A | |||||||
Relatedoracting-in-concertpartiesamongtheshareholdersabove | Itisunknownwhetherthereisamongthetop10publicshareholdersandthetop10unrestrictedpublicshareholdersanyrelatedpartiesoracting-in-concertpartiesasdefinedintheAdministrativeMeasuresforInformationRegardingShareholdingAlteration. | |||||||
Top10unrestrictedshareholders | ||||||||
Nameofshareholder | Unrestrictedsharesheldattheperiod-end | Sharesbytype | ||||||
Type | Shares | |||||||
ChangzhouInvestmentGroupCo.,Ltd | 170,845,236 | RMBcommonshare | 170,845,236 | |||||
KGIAsiaLimited | 3,189,845 | Domesticallylistedforeignshare | 3,189,845 | |||||
HuangGuoliang | 1,528,891 | Domesticallylistedforeignshare | 1,528,891 | |||||
HuWenyong | 1,528,066 | Domesticallylistedforeignshare | 1,528,066 | |||||
LiSuinan | 1,507,800 | Domesticallylistedforeignshare | 1,507,800 | |||||
TaoXiaofang | 1,228,000 | RMBcommonshare | 1,228,000 | |||||
XueHong | 1,220,000 | Domesticallylistedforeignshare | 1,220,000 | |||||
VanguardInvestmentAustraliaLtd-VanguardEmergingMarketStockIndexFund(Exchange) | 1,196,785 | RMBcommonshare | 1,196,785 | |||||
XieDeqing | 1,140,100 | Domesticallylistedforeignshare | 1,140,100 | |||||
CentralHuijinAssetManagementCo.,Ltd. | 1,107,900 | RMBcommonshare | 1,107,900 | |||||
Relatedoracting-in-concertpartiesamongtop10unrestrictedpublicshareholders,aswellas | Itisunknownwhetherthereisamongthetop10publicshareholdersandthetop10unrestrictedpublicshareholdersanyrelatedpartiesoracting-in-concertpartiesasdefinedintheAdministrativeMeasuresfor |
betweentop10unrestrictedpublicshareholdersandtop10shareholders | InformationRegardingShareholdingAlteration. |
Top10ordinaryshareholdersinvolvedinsecuritiesmargintrading(ifany)(seenote4) | N/A |
Indicatebytickmarkwhetheranyofthetop10ordinaryshareholdersorthetop10unrestrictedordinaryshareholdersoftheCompanyconductedanypromissoryrepoduringtheReportingPeriod.
□Yea√NoNosuchcasesintheReportingPeriod.
IV.ChangeoftheControllingShareholderortheActualControllerChangeofthecontrollingshareholderintheReportingPeriod
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.ChangeoftheactualcontrollerintheReportingPeriod
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
PartVIIPreferredShares
□Applicable√NotapplicableNopreferredsharesintheReportingPeriod.
PartVIIIDirectors,Supervisors,SeniorManagementandStaff
IChangeinShareholdingsofDirectors,SupervisorsandSeniorManagement
□Applicable√NotapplicableTherewerenochangesinshareholdingsofdirectors,supervisors,andseniormanagementintheReportingPeriod.Fordetails,seeAnnualReportof2018.
IIChangesinDirectors,SupervisorsandSeniorManagement
√Applicable□Notapplicable
Name | Officetitle | Type | Date | Reason |
HeJianguang | DirectorandvicechairmanoftheBoard | Left | 28January2019 | Jobturnover |
PartIXCorporateBonds
Arethereanycorporatebondspubliclyofferedandlistedonthestockexchange,whichwereunduebeforetheapprovaldateofthisReportorwereduebutcouldnotberedeemedinfull?No
PartXFinancialStatements
I.Auditor’sReport
Whethertheinterimreporthasbeenaudited?
□Yes√NoTheinterimreportoftheCompanyhasnotbeenaudited.II.FinancialStatementsTheunitofthefinancialstatementsattached:RMB
1.ConsolidatedBalanceSheetPreparedbyChangchaiCompany,Limited
Unit:RMB
Item | 30June2019 | 31December2018 |
Currentassets: | ||
Monetarycapital | 628,482,778.12 | 800,960,036.69 |
Settlementreserve | ||
Interbankloansgranted | ||
Tradingfinancialassets | ||
Financialassetsatfairvaluethroughprofitorloss | ||
Derivativefinancialassets | ||
Notesreceivable | 445,812,473.66 | 495,370,782.47 |
Accountsreceivable | 743,272,680.28 | 378,859,159.11 |
Financingbackedbyaccountsreceivable | ||
Prepayments | 9,479,067.06 | 11,352,297.10 |
Premiumsreceivable | ||
Reinsurancereceivables | ||
Receivablereinsurancecontractreserve | ||
Otherreceivables | 10,675,479.55 | 9,244,584.42 |
Including:Interestreceivable | 0.00 | 0.00 |
Dividendsreceivable | 0.00 | 0.00 |
Financialassetspurchasedunderresaleagreements | ||
Inventories | 480,107,549.12 | 557,953,891.70 |
Contractassets | ||
Assetsclassifiedasheldforsale | ||
Currentportionofnon-currentassets | ||
Othercurrentassets | 16,368,809.68 | 34,357,608.97 |
Totalcurrentassets | 2,334,198,837.47 | 2,288,098,360.46 |
Non-currentassets: | ||
Loansandadvancestocustomers | ||
Investmentsindebtobligations | ||
Available-for-salefinancialassets | 498,851,369.49 | |
Investmentsinotherdebtobligations | ||
Held-to-maturityinvestments | ||
Long-termreceivables | ||
Long-termequityinvestments | 0.00 | |
Investmentsinotherequityinstruments | 601,731,811.25 | |
Othernon-currentfinancialassets | ||
Investmentproperty | 49,551,837.23 | 50,656,007.63 |
Fixedassets | 473,064,733.73 | 511,250,371.37 |
Constructioninprogress | 80,277,379.05 | 89,090,384.71 |
Productivelivingassets | ||
Oilandgasassets | ||
Right-of-useassets | ||
Intangibleassets | 100,425,529.49 | 103,092,879.38 |
R&Dexpense | ||
Goodwill | ||
Long-termprepaidexpense | ||
Deferredincometaxassets | 979,822.71 | 979,822.71 |
Othernon-currentassets | 0.00 | |
Totalnon-currentassets | 1,306,031,113.46 | 1,253,920,835.29 |
Totalassets | 3,640,229,950.93 | 3,542,019,195.75 |
Currentliabilities: | ||
Short-termborrowings | 22,000,000.00 | 27,000,000.00 |
Borrowingsfromcentralbank | ||
Interbankloansobtained | ||
Tradingfinancialliabilities |
Financialliabilitiesatfairvaluethroughprofitorloss | ||
Derivativefinancialliabilities | ||
Notespayable | 498,805,800.00 | 438,375,400.00 |
Accountspayable | 534,631,506.05 | 591,754,875.77 |
Advancesfromcustomers | 58,809,277.68 | 34,500,232.97 |
Financialassetssoldunderrepurchaseagreements | ||
Customerdepositsandinterbankdeposits | ||
Payablesforactingtradingofsecurities | ||
Payablesforunderwritingofsecurities | ||
Payrollpayable | 31,235,024.32 | 50,500,592.99 |
Taxespayable | 2,964,557.12 | 7,066,085.89 |
Otherpayables | 192,072,806.77 | 199,412,250.90 |
Including:Interestpayable | 0.00 | |
Dividendspayable | 3,891,433.83 | 3,891,433.83 |
Handlingchargesandcommissionspayable | ||
Reinsurancepayables | ||
Contractliabilities | ||
Liabilitiesdirectlyassociatedwithassetsclassifiedasheldforsale | ||
Currentportionofnon-currentliabilities | 18,500,000.00 | 18,500,000.00 |
Othercurrentliabilities | 2,664,523.79 | 2,082,985.18 |
Totalcurrentliabilities | 1,361,683,495.73 | 1,369,192,423.70 |
Non-currentliabilities: | ||
Insurancecontractreserve | ||
Long-termborrowings | 2,000,000.00 | |
Bondspayable | ||
Including:Preferredshares | ||
Perpetualbonds | ||
Leaseliabilities | ||
Long-termpayables | ||
Long-termpayrollpayable | ||
Provisions | ||
Deferredincome | 59,928,484.84 | 59,928,484.84 |
Deferredincometaxliabilities | 63,288,082.24 | 47,971,780.36 |
Othernon-currentliabilities | ||
Totalnon-currentliabilities | 123,216,567.08 | 109,900,265.20 |
Totalliabilities | 1,484,900,062.81 | 1,479,092,688.90 |
Owners’equity: | ||
Sharecapital | 561,374,326.00 | 561,374,326.00 |
Otherequityinstruments | ||
Including:Preferredshares | ||
Perpetualbonds | ||
Capitalreserves | 164,328,665.43 | 164,328,665.43 |
Less:Treasurystock | ||
Othercomprehensiveincome | 351,736,375.00 | 264,405,675.00 |
Specificreserve | 15,182,958.83 | 15,182,958.83 |
Surplusreserves | 320,133,050.15 | 320,133,050.15 |
Generalreserve | ||
Retainedearnings | 722,907,018.25 | 717,883,351.33 |
TotalequityattributabletoownersoftheCompanyastheparent | 2,135,662,393.66 | 2,043,308,026.74 |
Non-controllinginterests | 19,667,494.46 | 19,618,480.11 |
Totalowners’equity | 2,155,329,888.12 | 2,062,926,506.85 |
Totalliabilitiesandowners’equity | 3,640,229,950.93 | 3,542,019,195.75 |
Legalrepresentative:ShiXinkunGeneralManager:ZhangXinHeadoftheaccountingdepartment:JiangHe
2.BalanceSheetoftheCompanyastheParent
Unit:RMB
Item | 30June2019 | 31December2018 |
Currentassets: | ||
Monetarycapital | 581,281,428.17 | 759,404,219.72 |
Tradingfinancialassets | ||
Financialassetsatfairvaluethroughprofitorloss | ||
Derivativefinancialassets | ||
Notesreceivable | 437,789,558.88 | 490,519,795.91 |
Accountsreceivable | 665,339,555.79 | 300,357,283.81 |
Financingsbackedbyaccountsreceivable | ||
Prepayments | 5,409,681.35 | 4,768,038.11 |
Otherreceivables | 23,668,652.76 | 21,681,331.85 |
Including:Interestreceivable | ||
Dividendsreceivable | ||
Inventories | 346,525,723.89 | 437,423,195.46 |
Contractassets | ||
Assetsclassifiedasheldforsale | ||
Currentportionofnon-currentassets | ||
Othercurrentassets | 2,436,589.67 | 23,099,858.67 |
Totalcurrentassets | 2,062,451,190.51 | 2,037,253,723.53 |
Non-currentassets: | ||
Investmentsindebtobligations | ||
Available-for-salefinancialassets | 470,940,000.00 | |
Investmentsinotherdebtobligations | ||
Held-to-maturityinvestments | ||
Long-termreceivables | ||
Long-termequityinvestments | 251,752,730.03 | 241,752,730.03 |
Investmentsinotherequityinstruments | 573,682,000.00 | |
Othernon-currentfinancialassets | ||
Investmentproperty | 49,551,837.23 | 50,656,007.63 |
Fixedassets | 383,536,146.88 | 413,186,680.19 |
Constructioninprogress | 78,194,210.25 | 87,007,215.91 |
Productivelivingassets | ||
Oilandgasassets | ||
Right-of-useassets | ||
Intangibleassets | 71,081,380.60 | 72,184,608.63 |
R&Dexpense | ||
Goodwill | ||
Long-termprepaidexpense | ||
Deferredincometaxassets | 930,641.19 | 930,641.19 |
Othernon-currentassets | ||
Totalnon-currentassets | 1,408,728,946.18 | 1,336,657,883.58 |
Totalassets | 3,471,180,136.69 | 3,373,911,607.11 |
Currentliabilities: | ||
Short-termborrowings | 5,000,000.00 | 10,000,000.00 |
Tradingfinancialliabilities | ||
Financialliabilitiesatfairvaluethroughprofitorloss | ||
Derivativefinancialliabilities | ||
Notespayable | 484,035,800.00 | 425,995,400.00 |
Accountspayable | 500,784,658.07 | 561,555,397.44 |
Advancesfromcustomers | 57,107,885.83 | 32,072,387.55 |
Contractliabilities | ||
Payrollpayable | 24,268,608.35 | 43,597,759.22 |
Taxespayable | 988,338.92 | 2,443,767.89 |
Otherpayables | 178,675,594.58 | 185,022,961.56 |
Including:Interestpayable | ||
Dividendspayable | 3,243,179.97 | 3,243,179.97 |
Liabilitiesdirectlyassociatedwithassetsclassifiedasheldforsale | ||
Currentportionofnon-currentliabilities | 18,500,000.00 | 18,500,000.00 |
Othercurrentliabilities | ||
Totalcurrentliabilities | 1,269,360,885.75 | 1,279,187,673.66 |
Non-currentliabilities: | ||
Long-termborrowings | ||
Bondspayable | ||
Including:Preferredshares | ||
Perpetualbonds | ||
Leaseliabilities | ||
Long-termpayables | ||
Long-termpayrollpayable | ||
Provisions | ||
Deferredincome | 59,928,484.84 | 59,928,484.84 |
Deferredincometaxliabilities | 62,071,125.00 | 46,659,825.00 |
Othernon-currentliabilities | ||
Totalnon-currentliabilities | 121,999,609.84 | 106,588,309.84 |
Totalliabilities | 1,391,360,495.59 | 1,385,775,983.50 |
Owners’equity: |
Sharecapital | 561,374,326.00 | 561,374,326.00 |
Otherequityinstruments | ||
Including:Preferredshares | ||
Perpetualbonds | ||
Capitalreserves | 183,071,147.70 | 183,071,147.70 |
Less:Treasurystock | ||
Othercomprehensiveincome | 351,736,375.00 | 264,405,675.00 |
Specificreserve | 15,182,958.83 | 15,182,958.83 |
Surplusreserves | 320,133,050.15 | 320,133,050.15 |
Retainedearnings | 648,321,783.42 | 643,968,465.93 |
Totalowners’equity | 2,079,819,641.10 | 1,988,135,623.61 |
Totalliabilitiesandowners’equity | 3,471,180,136.69 | 3,373,911,607.11 |
Legalrepresentative:ShiXinkunGeneralManager:ZhangXinHeadoftheaccountingdepartment:JiangHe
3.ConsolidatedIncomeStatement
Unit:RMB
Item | H12019 | H12018 |
1.Revenue | 1,115,829,845.59 | 1,186,760,892.26 |
Including:Operatingrevenue | 1,115,829,845.59 | 1,186,760,892.26 |
Interestincome | ||
Premiumincome | ||
Handlingchargeandcommissionincome | ||
2.Costsandexpenses | 1,096,080,768.77 | 1,164,582,065.19 |
Including:Costofsales | 970,438,847.36 | 1,034,354,908.99 |
Interestexpense | ||
Handlingchargeandcommissionexpense | ||
Surrenders | ||
Netclaimspaid | ||
Netamountprovidedasinsurancecontractreserve | ||
Expenditureonpolicydividends | ||
Reinsurancepremiumexpense |
Taxesandsurcharges | 4,997,355.73 | 5,739,473.26 |
Sellingexpense | 58,258,398.98 | 52,228,075.86 |
Administrativeexpense | 34,102,694.86 | 28,367,615.31 |
R&Dexpense | 30,064,283.46 | 34,066,872.15 |
Financecosts | -1,780,811.62 | -132,337.12 |
Including:Interestexpense | 1,567,625.50 | 1,805,097.10 |
Interestincome | 1,642,256.03 | 891,663.17 |
Add:Otherincome | 129,300.00 | 129,600.00 |
Returnoninvestment(“-”forloss) | 179,073.85 | 376,091.68 |
Including:Shareofprofitorlossofjointventuresandassociates | ||
Incomefromthederecognitionoffinancialassetsatamortizedcost(“-”forloss) | ||
Foreignexchangegain(“-”forloss) | ||
Netgainonexposurehedges(“-”forloss) | ||
Gainonchangesinfairvalue(“-”forloss) | ||
Creditimpairmentloss(“-”forloss) | -5,260,420.00 | |
Assetimpairmentloss(“-”forloss) | -26,096.43 | -9,957,456.74 |
Assetdisposalincome(“-”forloss) | 988,535.95 | |
3.Operatingprofit(“-”forloss) | 15,759,470.19 | 22,684,518.75 |
Add:Non-operatingincome | 566,931.38 | 2,103,083.03 |
Less:Non-operatingexpense | 217,837.98 | 1,527,166.21 |
4.Profitbeforetax(“-”forloss) | 16,108,563.59 | 23,260,435.57 |
Less:Incometaxexpense | -2,998,475.83 | 4,352,526.65 |
5.Netprofit(“-”fornetloss) | 19,107,039.42 | 18,907,908.92 |
5.1Byoperatingcontinuity | ||
5.1.1Netprofitfromcontinuingoperations(“-”fornetloss) | 19,107,039.42 | 18,907,908.92 |
5.1.2Netprofitfromdiscontinuedoperations(“-”fornetloss) | ||
5.2Byownership | ||
5.2.1NetprofitattributabletoownersoftheCompanyastheparent | 19,058,025.07 | 18,638,557.66 |
5.2.1Netprofitattributabletonon-controllinginterests | 49,014.35 | 269,351.26 |
6.Othercomprehensiveincome,netoftax | 87,330,700.00 | -126,198,225.00 |
AttributabletoownersoftheCompanyastheparent | 87,330,700.00 | -126,198,225.00 |
6.1Itemsthatwillnotbereclassifiedtoprofitorloss | 87,330,700.00 | |
6.1.1Changescausedbyremeasurementsondefinedbenefitpensionschemes | ||
6.1.2Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorlossundertheequitymethod | ||
6.1.3Changesinthefairvalueofinvestmentsinotherequityinstruments | 87,330,700.00 | |
6.1.4Changesinthefairvalueofthecompany’screditrisks | ||
6.1.5Other | ||
6.2Itemsthatwillbereclassifiedtoprofitorloss | -126,198,225.00 | |
6.2.1Othercomprehensiveincomethatwillbereclassifiedtoprofitorlossundertheequitymethod | ||
6.2.2Changesinthefairvalueofinvestmentsinotherdebtobligations | ||
6.2.3Gain/Lossonchangesinthefairvalueofavailable-for-salefinancialassets | -126,198,225.00 | |
6.2.4Othercomprehensiveincomearisingfromthereclassificationoffinancialassets | ||
6.2.5Gain/Lossarisingfromthereclassificationofheld-to-maturityinvestmentstoavailable-for-salefinancialassets | ||
6.2.6Allowanceforcreditimpairmentsininvestmentsinotherdebtobligations | ||
6.2.7Reserveforcashflowhedges | ||
6.2.8Differencesarisingfromthetranslationofforeigncurrency-denominatedfinancialstatements | ||
6.2.9Other | ||
Attributabletonon-controllinginterests | 0.00 | |
7.Totalcomprehensiveincome | 106,437,739.42 | -107,290,316.08 |
AttributabletoownersoftheCompanyastheparent | 106,388,725.07 | -107,559,667.34 |
Attributabletonon-controllinginterests | 49,014.35 | 269,351.26 |
8.Earningspershare | ||
8.1Basicearningspershare | 0.0339 | 0.0332 |
8.2Dilutedearningspershare | 0.0339 | 0.0332 |
WherebusinesscombinationsundercommoncontroloccurredintheCurrentPeriod,thenetprofitachievedby
theacquireesbeforethecombinationswasRMB,withtheamountforthesameperiodoflastyearbeingRMB.Legalrepresentative:ShiXinkunGeneralManager:ZhangXinHeadoftheaccountingdepartment:JiangHe
4.IncomeStatementoftheCompanyastheParent
Unit:RMB
Item | H12019 | H12018 |
1.Operatingrevenue | 1,033,329,175.58 | 1,121,335,123.15 |
Less:Costofsales | 907,286,315.49 | 991,077,844.49 |
Taxesandsurcharges | 3,963,893.19 | 4,388,116.03 |
Sellingexpense | 53,346,830.95 | 46,378,981.86 |
Administrativeexpense | 25,476,365.88 | 23,307,342.62 |
R&Dexpense | 27,891,685.42 | 30,051,019.61 |
Financecosts | -3,010,192.35 | -1,920,963.99 |
Including:Interestexpense | 1,314,360.50 | 1,528,387.25 |
Interestincome | 1,165,423.09 | 684,552.38 |
Add:Otherincome | 129,300.00 | 129,600.00 |
Returnoninvestment(“-”forloss) | 0.00 | 21,000.00 |
Including:Shareofprofitorlossofjointventuresandassociates | ||
Incomefromthederecognitionoffinancialassetsatamortizedcost(“-”forloss) | ||
Netgainonexposurehedges(“-”forloss) | ||
Gainonchangesinfairvalue(“-”forloss) | ||
Creditimpairmentloss(“-”forloss) | -5,260,420.00 | |
Assetimpairmentloss(“-”forloss) | -26,096.43 | -9,924,969.03 |
Assetdisposalincome(“-”forloss) | 988,535.95 | |
2.Operatingprofit(“-”forloss) | 14,205,596.52 | 18,278,413.50 |
Add:Non-operatingincome | 230,353.36 | 1,760,229.91 |
Less:Non-operatingexpense | 166,954.64 | 1,525,338.21 |
3.Profitbeforetax(“-”forloss) | 14,268,995.24 | 18,513,305.20 |
Less:Incometaxexpense | -4,118,680.40 | 3,037,417.85 |
4.Netprofit(“-”fornetloss) | 18,387,675.64 | 15,475,887.35 |
4.1Netprofitfromcontinuingoperations(“-”fornetloss) | 18,387,675.64 | 15,475,887.35 |
4.2Netprofitfromdiscontinuedoperations(“-”fornetloss) | ||
5.Othercomprehensiveincome,netoftax | 87,330,700.00 | -126,198,225.00 |
5.1Itemsthatwillnotbereclassifiedtoprofitorloss | 87,330,700.00 | |
5.1.1Changescausedbyremeasurementsondefinedbenefitpensionschemes | ||
5.1.2Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorlossundertheequitymethod | ||
5.1.3Changesinthefairvalueofinvestmentsinotherequityinstruments | 87,330,700.00 | |
5.1.4Changesinthefairvalueofthecompany’screditrisks | ||
5.1.5Other | ||
5.2Itemsthatwillbereclassifiedtoprofitorloss | -126,198,225.00 | |
5.2.1Othercomprehensiveincomethatwillbereclassifiedtoprofitorlossundertheequitymethod | ||
5.2.2Changesinthefairvalueofinvestmentsinotherdebtobligations | ||
5.2.3Gain/Lossonchangesinthefairvalueofavailable-for-salefinancialassets | -126,198,225.00 | |
5.2.4Othercomprehensiveincomearisingfromthereclassificationoffinancialassets | ||
5.2.5Gain/Lossarisingfromthereclassificationofheld-to-maturityinvestmentstoavailable-for-salefinancialassets | ||
5.2.6Allowanceforcreditimpairmentsininvestmentsinotherdebtobligations | ||
5.2.7Reserveforcashflowhedges | ||
5.2.8Differencesarisingfromthetranslationofforeigncurrency-denominatedfinancialstatements | ||
5.2.9Other | ||
6.Totalcomprehensiveincome | 105,718,375.64 | -110,722,337.65 |
7.Earningspershare | ||
7.1Basicearningspershare | ||
7.2Dilutedearningspershare |
Note:1.PayattentiontotheinfluenceoftheR&DexpenseoftheCompanyastheparentontheadministrativeexpense
Legalrepresentative:ShiXinkunGeneralManager:ZhangXinHeadoftheaccountingdepartment:JiangHe
5.ConsolidatedCashFlowStatement
Unit:RMB
Item | H12019 | H12018 |
1.Cashflowsfromoperatingactivities: | ||
Proceedsfromsaleofcommoditiesandrenderingofservices | 922,256,275.09 | 1,052,665,606.90 |
Netincreaseincustomerdepositsandinterbankdeposits | ||
Netincreaseinborrowingsfromcentralbank | ||
Netincreaseinloansfromotherfinancialinstitutions | ||
Premiumsreceivedonoriginalinsurancecontracts | ||
Netproceedsfromreinsurance | ||
Netincreaseindepositsandinvestmentsofpolicyholders | ||
Interest,handlingchargesandcommissionsreceived | ||
Netincreaseininterbankloansobtained | ||
Netincreaseinproceedsfromrepurchasetransactions | ||
Netproceedsforactingtradingofsecurities | ||
Taxrebates | 21,598,658.84 | 20,142,964.09 |
Cashgeneratedfromotheroperatingactivities | 8,300,459.20 | 6,122,580.97 |
Subtotalofcashgeneratedfromoperatingactivities | 952,155,393.13 | 1,078,931,151.96 |
Paymentsforcommoditiesandservices | 898,343,434.08 | 861,702,539.28 |
Netincreaseinloansandadvancestocustomers | ||
Netincreaseindepositsincentralbankandininterbankloansgranted | ||
Paymentsforclaimsonoriginalinsurancecontracts | ||
Netincreaseinfinancialassetsheldfortrading | ||
Netincreaseininterbankloansgranted | ||
Interest,handlingchargesandcommissionspaid | ||
Policydividendspaid | ||
Cashpaidtoandforemployees | 151,721,498.93 | 171,524,903.87 |
Taxespaid | 17,834,800.18 | 14,854,230.49 |
Cashusedinotheroperatingactivities | 38,483,364.71 | 36,458,331.47 |
Subtotalofcashusedinoperatingactivities | 1,106,383,097.90 | 1,084,540,005.11 |
Netcashgeneratedfrom/usedinoperatingactivities | -154,227,704.77 | -5,608,853.15 |
2.Cashflowsfrominvestingactivities: | ||
Proceedsfromdisinvestment | 7,000,000.00 | 13,534,013.89 |
Returnoninvestment | 179,073.85 | 376,091.68 |
Netproceedsfromthedisposaloffixedassets,intangibleassetsandotherlong-livedassets | 988,535.95 | 125,474.80 |
Netproceedsfromthedisposalofsubsidiariesandotherbusinessunits | 0.00 | |
Cashgeneratedfromotherinvestingactivities | ||
Subtotalofcashgeneratedfrominvestingactivities | 8,167,609.80 | 14,035,580.37 |
Paymentsfortheacquisitionoffixedassets,intangibleassetsandotherlong-livedassets | 11,782,972.46 | 18,849,002.37 |
Paymentsforinvestments | 12,638,441.76 | |
Netincreaseinpledgedloansgranted | ||
Netpaymentsfortheacquisitionofsubsidiariesandotherbusinessunits | ||
Cashusedinotherinvestingactivities | 24,265,444.20 | |
Subtotalofcashusedininvestingactivities | 24,421,414.22 | 43,114,446.57 |
Netcashgeneratedfrom/usedininvestingactivities | -16,253,804.42 | -29,078,866.20 |
3.Cashflowsfromfinancingactivities: | ||
Capitalcontributionsreceived | ||
Including:Capitalcontributionsbynon-controllingintereststosubsidiaries | ||
Borrowingsobtained | 12,000,000.00 | 17,000,000.00 |
Netproceedsfromissuanceofbonds | ||
Cashgeneratedfromotherfinancingactivities | ||
Subtotalofcashgeneratedfromfinancingactivities | 12,000,000.00 | 17,000,000.00 |
Repaymentsofborrowings | 19,000,000.00 | 7,000,000.00 |
Paymentsforinterestanddividends | 15,977,861.20 | 18,263,008.91 |
Including:Dividendspaidbysubsidiariestonon-controllinginterests | ||
Cashusedinotherfinancingactivities | ||
Subtotalofcashusedinfinancingactivities | 34,977,861.20 | 25,263,008.91 |
Netcashgeneratedfrom/usedinfinancingactivities | -22,977,861.20 | -8,263,008.91 |
4.Effectofforeignexchangeratechangesoncashandcash |
equivalents | ||
5.Netincreaseincashandcashequivalents | -193,459,370.39 | -42,950,728.26 |
Add:Cashandcashequivalents,beginningoftheperiod | 687,079,639.59 | 325,263,654.43 |
6.Cashandcashequivalents,endoftheperiod | 493,620,269.20 | 282,312,926.17 |
Legalrepresentative:ShiXinkunGeneralManager:ZhangXinHeadoftheaccountingdepartment:JiangHe
6.CashFlowStatementoftheCompanyastheParent
Unit:RMB
Item | H12019 | H12018 |
1.Cashflowsfromoperatingactivities: | ||
Proceedsfromsaleofcommoditiesandrenderingofservices | 825,164,929.97 | 978,362,086.38 |
Taxrebates | 16,338,954.71 | 14,838,384.91 |
Cashgeneratedfromotheroperatingactivities | 5,103,265.56 | 5,251,560.76 |
Subtotalofcashgeneratedfromoperatingactivities | 846,607,150.24 | 998,452,032.05 |
Paymentsforcommoditiesandservices | 834,695,159.25 | 801,461,497.18 |
Cashpaidtoandforemployees | 127,977,021.88 | 143,561,299.80 |
Taxespaid | 9,992,032.82 | 10,023,890.64 |
Cashusedinotheroperatingactivities | 30,159,658.65 | 32,113,861.57 |
Subtotalofcashusedinoperatingactivities | 1,002,823,872.60 | 987,160,549.19 |
Netcashgeneratedfrom/usedinoperatingactivities | -156,216,722.36 | 11,291,482.86 |
2.Cashflowsfrominvestingactivities: | ||
Proceedsfromdisinvestment | ||
Returnoninvestment | 21,000.00 | |
Netproceedsfromthedisposaloffixedassets,intangibleassetsandotherlong-livedassets | 988,535.95 | 102,774.58 |
Netproceedsfromthedisposalofsubsidiariesandotherbusinessunits | ||
Cashgeneratedfromotherinvestingactivities | ||
Subtotalofcashgeneratedfrominvestingactivities | 988,535.95 | 123,774.58 |
Paymentsfortheacquisitionoffixedassets,intangibleassetsandotherlong-livedassets | 9,220,626.97 | 17,662,045.01 |
Paymentsforinvestments | 10,000,000.00 | 0.00 |
Netpaymentsfortheacquisitionofsubsidiariesandotherbusinessunits | ||
Cashusedinotherinvestingactivities | ||
Subtotalofcashusedininvestingactivities | 19,220,626.97 | 17,662,045.01 |
Netcashgeneratedfrom/usedininvestingactivities | -18,232,091.02 | -17,538,270.43 |
3.Cashflowsfromfinancingactivities: | ||
Capitalcontributionsreceived | ||
Borrowingsobtained | 5,000,000.00 | 10,000,000.00 |
Netproceedsfromtheissuanceofbonds | ||
Cashgeneratedfromotherfinancingactivities | ||
Subtotalofcashgeneratedfromfinancingactivities | 5,000,000.00 | 10,000,000.00 |
Repaymentsofborrowings | 10,000,000.00 | |
Paymentsforinterestanddividends | 15,404,432.84 | 17,733,682.52 |
Cashusedinotherfinancingactivities | 0.00 | |
Subtotalofcashusedinfinancingactivities | 25,404,432.84 | 17,733,682.52 |
Netcashgeneratedfrom/usedinfinancingactivities | -20,404,432.84 | -7,733,682.52 |
4.Effectofforeignexchangeratechangesoncashandcashequivalents | ||
5.Netincreaseincashandcashequivalents | -194,853,246.22 | -13,980,470.09 |
Add:Cashandcashequivalents,beginningoftheperiod | 651,854,206.79 | 272,064,464.71 |
6.Cashandcashequivalents,endoftheperiod | 457,000,960.57 | 258,083,994.62 |
Legalrepresentative:ShiXinkunGeneralManager:ZhangXinHeadoftheaccountingdepartment:JiangHe
7.ConsolidatedStatementsofChangesinOwners’EquityH12019
Unit:RMB
Item | H12019 | ||||||||||||||
EquityattributabletoownersoftheCompanyastheparent | Non-controllinginterests | Totalowners’equity | |||||||||||||
Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Generalreserve | Retainedearnings | Other | Subtotal | |||||
Preferredshares | Perpetualbonds | Other | |||||||||||||
1.Balancesasattheendoftheprioryear | 561,374,326.00 | 164,328,665.43 | 264,405,675.00 | 15,182,958.83 | 320,133,050.15 | 717,883,351.33 | 2,043,308,026.74 | 19,618,480.11 | 2,062,926,506.85 | ||||||
Add:Adjustmentsforchangedaccountingpolicies | |||||||||||||||
Adjustmentsforcorrectionsofpreviouserrors | |||||||||||||||
Adjustmentsforbusinesscombinationsundercommoncontrol | |||||||||||||||
Otheradjustments |
2.Balancesasatthebeginningoftheyear | 561,374,326.00 | 164,328,665.43 | 264,405,675.00 | 15,182,958.83 | 320,133,050.15 | 717,883,351.33 | 2,043,308,026.74 | 19,618,480.11 | 2,062,926,506.85 | ||||
3.Increase/decreaseintheperiod(“-”fordecrease) | 87,330,700.00 | 5,023,666.92 | 92,354,366.92 | 49,014.35 | 92,403,381.27 | ||||||||
3.1Totalcomprehensiveincome | 87,330,700.00 | 19,058,025.07 | 106,388,725.07 | 49,014.35 | 106,437,739.42 | ||||||||
3.2Capitalincreasedandreducedbyowners | |||||||||||||
3.2.1Ordinarysharesincreasedbyshareholders | |||||||||||||
3.2.2Capitalincreasedbyholdersofotherequityinstruments | |||||||||||||
3.2.3Share-basedpaymentsincludedinowners’equity | |||||||||||||
3.2.4Other | |||||||||||||
3.3Profit | -14,034 | -14,034 | -14,03 |
distribution | ,358.15 | ,358.15 | 4,358.15 | |||
3.3.1Appropriationtosurplusreserves | ||||||
3.3.2Appropriationtogeneralreserve | ||||||
3.3.3Appropriationtoowners(orshareholders) | -14,034,358.15 | -14,034,358.15 | -14,034,358.15 | |||
3.3.4Other | ||||||
3.4Transferswithinowners’equity | ||||||
3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | ||||||
3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | ||||||
3.4.3Lossoffsetbysurplusreserves |
3.4.4Changesindefinedbenefitpensionschemestransferredtoretainedearnings | |||||||||||||
3.4.5Othercomprehensiveincometransferredtoretainedearnings | |||||||||||||
3.4.6Other | |||||||||||||
3.5Specificreserve | |||||||||||||
3.5.1Increaseintheperiod | |||||||||||||
3.5.2Usedintheperiod | |||||||||||||
3.6Other | |||||||||||||
4.Balancesasattheendoftheperiod | 561,374,326.00 | 164,328,665.43 | 351,736,375.00 | 15,182,958.83 | 320,133,050.15 | 722,907,018.25 | 2,135,662,393.66 | 19,667,494.46 | 2,155,329,888.12 |
H12018
Unit:RMB
Item | H12018 | ||||||||||||
EquityattributabletoownersoftheCompanyastheparent | Non-controllinginterests | Totalowners’equity | |||||||||||
Sharecapita | Otherequityinstruments | Capitalreserve | Less:Treasur | Othercompre | Specific | Surplus | General | Retained | Other | Subtotal |
l | Preferredshares | Perpetualbonds | Other | s | ystock | hensiveincome | reserve | reserves | reserve | earnings | |||||
1.Balancesasattheendoftheprioryear | 561,374,326.00 | 164,328,665.43 | 515,068,550.00 | 13,289,059.21 | 313,705,210.16 | 679,131,047.06 | 2,246,896,857.86 | 19,473,156.31 | 2,266,370,014.17 | ||||||
Add:Adjustmentsforchangedaccountingpolicies | 0.00 | ||||||||||||||
Adjustmentsforcorrectionsofpreviouserrors | 0.00 | ||||||||||||||
Adjustmentsforbusinesscombinationsundercommoncontrol | 0.00 | ||||||||||||||
Otheradjustments | 0.00 | ||||||||||||||
2.Balancesasatthebeginningoftheyear | 561,374,326.00 | 164,328,665.43 | 515,068,550.00 | 13,289,059.21 | 313,705,210.16 | 679,131,047.06 | 2,246,896,857.86 | 19,473,156.31 | 2,266,370,014.17 | ||||||
3.Increase/decreaseintheperiod(“-”fordecrease) | -126,198,225.00 | 1,797,327.88 | -124,400,897.12 | 269,351.26 | -124,131,545.86 |
3.1Totalcomprehensiveincome | -126,198,225.00 | 18,638,557.66 | -107,559,667.34 | 269,351.26 | -107,290,316.08 | |||
3.2Capitalincreasedandreducedbyowners | 0.00 | |||||||
3.2.1Ordinarysharesincreasedbyshareholders | 0.00 | |||||||
3.2.2Capitalincreasedbyholdersofotherequityinstruments | 0.00 | |||||||
3.2.3Share-basedpaymentsincludedinowners’equity | 0.00 | |||||||
3.2.4Other | 0.00 | |||||||
3.3Profitdistribution | -16,841,229.78 | -16,841,229.78 | -16,841,229.78 | |||||
3.3.1Appropriationtosurplusreserves | 0.00 |
3.3.2Appropriationtogeneralreserve | 0.00 | |||||
3.3.3Appropriationtoowners(orshareholders) | -16,841,229.78 | -16,841,229.78 | -16,841,229.78 | |||
3.3.4Other | 0.00 | |||||
3.4Transferswithinowners’equity | 0.00 | |||||
3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | 0.00 | |||||
3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | 0.00 | |||||
3.4.3Lossoffsetbysurplusreserves | 0.00 | |||||
3.4.4Changesindefinedbenefitpensionschemes | 0.00 |
transferredtoretainedearnings | |||||||||||||
3.4.5Othercomprehensiveincometransferredtoretainedearnings | 0.00 | ||||||||||||
3.4.6Other | 0.00 | ||||||||||||
3.5Specificreserve | 0.00 | ||||||||||||
3.5.1Increaseintheperiod | 0.00 | ||||||||||||
3.5.2Usedintheperiod | 0.00 | ||||||||||||
3.6Other | 0.00 | ||||||||||||
4.Balancesasattheendoftheperiod | 561,374,326.00 | 164,328,665.43 | 388,870,325.00 | 13,289,059.21 | 313,705,210.16 | 680,928,374.94 | 2,122,495,960.74 | 19,742,507.57 | 2,142,238,468.31 |
Legalrepresentative:ShiXinkunGeneralManager:ZhangXinHeadoftheaccountingdepartment:JiangHe
8.StatementsofChangesinOwners’EquityoftheCompanyastheParentH12019
Unit:RMB
Item | H12019 |
Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Retainedearnings | Other | Totalowners’equity | |||
Preferredshares | Perpetualbonds | Other | ||||||||||
1.Balancesasattheendoftheprioryear | 561,374,326.00 | 183,071,147.70 | 264,405,675.00 | 15,182,958.83 | 320,133,050.15 | 643,968,465.93 | 1,988,135,623.61 | |||||
Add:Adjustmentsforchangedaccountingpolicies | ||||||||||||
Adjustmentsforcorrectionsofpreviouserrors | ||||||||||||
Otheradjustments | ||||||||||||
2.Balancesasatthebeginningoftheyear | 561,374,326.00 | 183,071,147.70 | 264,405,675.00 | 15,182,958.83 | 320,133,050.15 | 643,968,465.93 | 1,988,135,623.61 | |||||
3.Increase/decreaseintheperiod(“-”fordecrease) | 87,330,700.00 | 4,353,317.49 | 91,684,017.49 | |||||||||
3.1Totalcomprehensiveincome | 87,330,700.00 | 18,387,675.64 | 105,718,375.64 | |||||||||
3.2Capitalincreasedandreducedbyowners |
3.2.1Ordinarysharesincreasedbyshareholders | ||||
3.2.2Capitalincreasedbyholdersofotherequityinstruments | ||||
3.2.3Share-basedpaymentsincludedinowners’equity | ||||
3.2.4Other | ||||
3.3Profitdistribution | -14,034,358.15 | -14,034,358.15 | ||
3.3.1Appropriationtosurplusreserves | ||||
3.3.2Appropriationtoowners(orshareholders) | -14,034,358.15 | -14,034,358.15 | ||
3.3.3Other | ||||
3.4Transferswithinowners’equity | ||||
3.4.1Increaseincapital(orshare |
capital)fromcapitalreserves | ||||||||||
3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | ||||||||||
3.4.3Lossoffsetbysurplusreserves | ||||||||||
3.4.4Changesindefinedbenefitpensionschemestransferredtoretainedearnings | ||||||||||
3.4.5Othercomprehensiveincometransferredtoretainedearnings | ||||||||||
3.4.6Other | ||||||||||
3.5Specificreserve | ||||||||||
3.5.1Increaseintheperiod | ||||||||||
3.5.2Usedintheperiod | ||||||||||
3.6Other | ||||||||||
4.Balancesasatthe | 561,374 | 183,071,1 | 351,736,3 | 15,182,95 | 320,133,0 | 648,321 | 2,079,819,6 |
endoftheperiod | ,326.00 | 47.70 | 75.00 | 8.83 | 50.15 | ,783.42 | 41.10 |
H12018
Unit:RMB
Item | H12018 | |||||||||||
Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Retainedearnings | Other | Totalowners’equity | |||
Preferredshares | Perpetualbonds | Other | ||||||||||
1.Balancesasattheendoftheprioryear | 561,374,326.00 | 183,071,147.70 | 515,068,550.00 | 13,289,059.21 | 313,705,210.16 | 602,959,135.85 | 0.00 | 2,189,467,428.92 | ||||
Add:Adjustmentsforchangedaccountingpolicies | 0.00 | |||||||||||
Adjustmentsforcorrectionsofpreviouserrors | 0.00 | |||||||||||
Otheradjustments | 0.00 | |||||||||||
2.Balancesasatthebeginningoftheyear | 561,374,326.00 | 183,071,147.70 | 515,068,550.00 | 13,289,059.21 | 313,705,210.16 | 602,959,135.85 | 0.00 | 2,189,467,428.92 | ||||
3.Increase/decreaseintheperiod(“-”fordecrease) | -126,198,225.00 | -1,365,342.43 | 0.00 | -127,563,567.43 |
3.1Totalcomprehensiveincome | -126,198,225.00 | 15,475,887.35 | 0.00 | -110,722,337.65 | ||
3.2Capitalincreasedandreducedbyowners | 0.00 | |||||
3.2.1Ordinarysharesincreasedbyshareholders | 0.00 | |||||
3.2.2Capitalincreasedbyholdersofotherequityinstruments | 0.00 | |||||
3.2.3Share-basedpaymentsincludedinowners’equity | 0.00 | |||||
3.2.4Other | 0.00 | |||||
3.3Profitdistribution | -16,841,229.78 | 0.00 | -16,841,229.78 | |||
3.3.1Appropriationtosurplusreserves | 0.00 | |||||
3.3.2Appropriationtoowners(or | -16,841,229.78 | 0.00 | -16,841,229.78 |
shareholders) | ||
3.3.3Other | 0.00 | |
3.4Transferswithinowners’equity | 0.00 | |
3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | 0.00 | |
3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | 0.00 | |
3.4.3Lossoffsetbysurplusreserves | 0.00 | |
3.4.4Changesindefinedbenefitpensionschemestransferredtoretainedearnings | 0.00 | |
3.4.5Othercomprehensiveincometransferredtoretainedearnings | 0.00 |
3.4.6Other | 0.00 | |||||||||
3.5Specificreserve | 0.00 | |||||||||
3.5.1Increaseintheperiod | 0.00 | |||||||||
3.5.2Usedintheperiod | 0.00 | |||||||||
3.6Other | 0.00 | |||||||||
4.Balancesasattheendoftheperiod | 561,374,326.00 | 183,071,147.70 | 388,870,325.00 | 13,289,059.21 | 313,705,210.16 | 601,593,793.42 | 0.00 | 2,061,903,861.49 |
Legalrepresentative:ShiXinkunGeneralManager:ZhangXinHeadoftheaccountingdepartment:JiangHe
III.CompanyProfile
ChangchaiCompany,Limited(hereinafterreferredtoas“theCompany”)wasfoundedon5May1994,whichisacompanylimitedbysharespromotedsolelybyChangzhouDieselEnginePlantthroughtheapprovalbytheStateCommissionforRestructuringtheEconomicSystemswithdocumentTGS[1993]No.9on15January1993bywayofpublicofferingofshares.WiththeapprovedofthePeople’sGovernmentofJiangsuProvinceSZF[1993]No.67,aswellasreexaminedandapprovedbyChinaSecuritiesRegulatoryCommission(“CSRC”)throughdocumentZJFSZ(1994)No.9,theCompanyinitiallyissuedAsharestothepublicfrom15March1994to30March1994.AsapprovedbytheShenzhenStockExchangethroughdocumentSZSFZ(1994)No.15,suchtradablesharesofthepublicgotlistingon1July1994atShenzhenStockExchangewith“SuChangchaiA”forshortofstock,aswellas“0570”asstockcode(presentstockcodeis“000570”).In1996,withtherecommendationoftheOfficeofthePeople’sGovernmentofJiangsuProvinceSZBH[1996]No.13,aswellasfirstreviewbyShenzhenMunicipalSecuritiesAdministrationOfficethroughSZBZ[1996]No.24,andapprovaloftheStateCouncilSecuritiesCommissionZWF[1996]No.27,theCompanyissued100millionBsharestoqualifiedinvestorson27August1996to30August1996,gettinglistedon13September1996.On9June2006,theCompanyheldashareholders’generalmeetingrelatedtoAsharesmarkettoexamineandapprovesharemergerreformplan,andperformedthesharemergerreformon19June2006.Asexaminedandapprovedatthe2
ndExtraordinaryGeneralMeetingof2009inSeptember2009,basedonthetotalsharecapitalof374,249,551sharesasat30June2009,theCompanyimplementedtheprofitdistributionplan,i.e.todistribute5bonussharesandcashofRMB0.80forevery10shares,withregisteredcapitalincreasedbyRMB187,124,775.00,aswellasregisteredcapitalofRMB561,374,326.00afterchange.Asat31December2015,thetotalsharecapitaloftheCompanyis561,374,326.00shares,aswellasregisteredcapitalofRMB561,374,326.00,whichverifiedbyJiangsuGongzhengTianyeCertifiedPublicAccountantsCompanyLimitedwithissuingCapitalVerificationReportSGC[2010]No.B002.AndtheunifiedsocialcreditcodeoftheenterprisebusinesslicenseoftheCompanyis91320400134792410W.TheCompany’sregisteredaddressissituatedatNo.123HuaideMiddleRoad,Changzhou,Jiangsu,aswellasitsheadofficelocatedatNo.123HuaideMiddleRoad,Changzhou,Jiangsu.TheCompanybelongstomanufacturingwithbusinessscopeincludingmanufacturingandsaleofdieselengine,dieselenginespartandcasting,grainharvestingmachine,rotarycultivators,walkingtractor,mouldandfixtures,assemblingandsaleofdieselgeneratingsetandpumpingunit.TheCompanymainlyengagedintheproductionandsalesofsmallandmedium-sizedsinglecylindersandmulti-cylinderdieselenginewiththelabelofChangchaiBrand.ThedieselengineproducedandsoldbytheCompanyweremainlyusedintractors,combineharvestmodels,lightcommercialvehicle,farmequipment,small-sizedconstructionmachinery,generatingsetsandshipbornemachineryandequipment,etc.TheCompany’smainbusinessremainedunchangedintheReportingPeriod.TheCompanyestablishedtheShareholders’GeneralMeeting,theBoardofDirectorsandtheSupervisoryCommittee,Corporateoffice,FinancialDepartment,PoliticalDepartment,InvestmentandDevelopmentDepartment,AuditDepartment,HumanRecoursesDepartment,ProductionDepartment,ProcurementDepartment,SalesCompany,ChiefEngineerOffice,TechnologyCenter,QADepartment,FoundryBranch,MachineProcessingBranch,Single-cylinderEnginebranch,Multi-cylinderEngineBranchandOverseasBusinessDepartmentintheCompany.ThefinancialreporthasbeenapprovedtobeissuedbytheBoardofDirectorson27August2019.TheconsolidatedscopeoftheCompanyoftheReportingPeriodincludestheCompanyastheparentand6
subsidiaries.ForthedetailsoftheconsolidatedscopeoftheReportingPeriodandthechangessituation,pleaserefertothechangesoftheconsolidatedscopeofthenotestothefinancialreportandthenotestotheequitiesamongotherentities.
IV.BasisforPreparationoftheFinancialReport
1.BasisforPreparationWiththegoing-concernassumptionasthebasisandbasedontransactionsandothereventsthatactuallyoccurred,theGrouppreparedfinancialstatementsinaccordancewithTheAccountingStandardsforBusinessEnterprises—BasicStandardissuedbytheMinistryofFinancewithDecreeNo.33andrevisedwithDecreeNo.76,thevariousspecificaccountingstandards,theApplicationGuidanceofAccountingStandardsforBusinessEnterprises,theInterpretationofAccountingStandardsforBusinessEnterprisesandotherregulationsissuedandrevisedfrom15February2006onwards(hereinafterjointlyreferredtoas“theAccountingStandardsforBusinessEnterprises”,“ChinaAccountingStandards”or“CAS”),aswellastheRulesforPreparationConventionofDisclosureofPublicOfferingCompaniesNo.15–GeneralRegulationsforFinancialReporting(revisedin2014)byChinaSecuritiesRegulatoryCommission.InaccordancewithrelevantprovisionsoftheAccountingStandardsforBusinessEnterprises,theGroupadoptedtheaccrualbasisinaccounting.Exceptforsomefinancialinstruments,whereimpairmentoccurredonanasset,animpairmentreservewaswithdrawnaccordinglypursuanttorelevantrequirements.
2.ContinuationTheCompanycomprehensivelyevaluatedtheinformationacquiredrecentlythattherewouldbenosuchfactorsinthe12monthsfromtheendoftheReportingPeriodthatwouldobviouslyinfluencethecontinuationcapabilityoftheCompanyandpredictedthattheoperatingactivitieswouldcontinueinthefuture12monthsoftheCompany.Thefinancialstatementcompiledbaseonthecontinuousoperation.V.ImportantAccountingPoliciesandEstimationsNotificationofspecificaccountingpoliciesandaccountingestimations:
TheCompanyandeachsubsidiaryaccordingtotheactualproductionandoperationcharacteristicsandinaccordwiththeregulationsoftherelevantASBE,formulatedcertainspecificaccountingpoliciesandaccountingestimations,whichmainlyreflectedinthewithdrawalmethodofthebaddebtprovisionoftheaccountsreceivable(NotesIII,11),themeasurementoftheinventory(NotesIII,12)andthedepreciationofthefixedassets(NotesIII,
16)etc.Asforthedetailsofthesignificantaccountingjudgmentandtheestimationsmadebythemanagementlayer,pleaserefertoNotesIII,30“Importantaccountingjudgmentandestimations”.
1.StatementofCompliancewiththeAccountingStandardsforBusinessEnterprisesThefinancialstatementspreparedbytheGroupareincompliancewithincompliancewiththeAccountingStandardsforBusinessEnterprises,whichfactuallyandcompletelypresenttheCompany’sandtheGroup’sfinancialpositions,businessresultsandcashflowsandotherrelevantinformation.
2.FiscalPeriodThefiscalperiodsaredividedintofiscalyearandmetaphase,thefiscalyearisfromJanuary1toDecember31andasthemetaphaseincludedmonthly,quarterlyandsemi-yearlyperiods.
3.OperatingCycleAnormaloperatingcyclereferstoaperiodfromtheGrouppurchasingassetsforprocessingtorealizingcashorcashequivalents.AnoperatingcyclefortheGroupis12months,whichisalsotheclassificationcriterionfortheliquidityofitsassetsandliabilities.
4.CurrencyUsedinBookkeepingRenminbiisfunctionalcurrencyoftheCompany.
5.AccountingMethodsforBusinessCombinationsundertheSameControlandBusinessCombinationsnotundertheSameControl
(1)Businesscombinationsunderthesamecontrol:
Abusinesscombinationunderthesamecontrolisabusinesscombinationinwhichallofthecombiningenterprisesareultimatelycontrolledbythesamepartyorthesamepartiesbothbeforeandafterthebusinesscombinationandonwhichthecontrolisnottemporary.Forthemergerofenterprisesunderthesamecontrol,iftheconsiderationofthemergingenterpriseisthatitmakespaymentincash,transfersnon-cashassetsorbearitsdebts,itshall,onthedateofmerger,regardtheshareofthebookvalueoftheowner'sequityofthemergedenterpriseastheinitialcostofthelong-termequityinvestment.Thedifferencebetweentheinitialcostofthelong-termequityinvestmentandthepaymentincash,non-cashassetstransferredaswellasthebookvalueofthedebtsbornebythemergingpartyshalloffsetagainstthecapitalreserve.Ifthecapitalreserveisinsufficienttodilute,theretainedearningsshallbeadjusted.Iftheconsiderationofthemergingenterpriseisthatitissuesequitysecurities,itshall,onthedateofmerger,regardtheshareofthebookvalueoftheowner'sequityofthemergedenterpriseastheinitialcostofthelong-termequityinvestment.Thetotalfacevalueofthestocksissuedshallberegardedasthecapitalstock,whilethedifferencebetweentheinitialcostofthelong-termequityinvestmentandtotalfacevalueofthesharesissuedshalloffsetagainstthecapitalreserve.Ifthecapitalreserveisinsufficienttodilute,theretainedearningsshallbeadjusted.Alldirectcostsforthebusinesscombination,includingexpensesforaudit,evaluatingandlegalservicesshallberecordedintotheprofitsandlossesatthecurrentperiod.Theexpensessuchasthehandlingchargesandcommissionetc,premiumincomeofdeductingtheequitysecurities,andasforthepremiumincomewasinsufficienttodilute,theretainedearningsshallbewrittendown.Owningtothereasonssuchastheadditionalinvestment,fortheequityinvestmentheldbeforeacquiringthecontrolrightofthecombinedparties,theconfirmedrelevantgainsandlosses,othercomprehensiveincomeandthechangesofothernetassetssincethedateoftheearlieronebetweenthedatewhenacquiringtheoriginalequityrightandthedatewhenthecombinepartiesandcombinedoneswereunderthesamecontroltothecombinationdate,shouldberespectivelywrittendownandcomparedwiththebeginningbalanceofretainedearningsorthecurrentgainsandlossesduringthestatementperiod.
(2)Businesscombinationsnotunderthesamecontrol
Abusinesscombinationnotunderthesamecontrolisabusinesscombinationinwhichthecombiningenterprisesarenotultimatelycontrolledbythesamepartyorthesamepartiesbothbeforeandafterthebusinesscombination.Thecombinationcostsoftheacquirerandtheidentifiablenetassetsobtainedbytheacquirerinabusinesscombinationshallbemeasuredatthefairvalues.Theacquirershallrecognizethepositivebalancebetweenthecombinationcostsandthefairvalueoftheidentifiablenetassetsitobtainsformstheacquireeasbusinessreputation.Thedirectrelevantexpensesoccurredfromtheenterprisecombinationshouldbeincludedinthecurrentgainsandlosseswhenoccurred.Thecombinationcostsoftheacquirerandtheidentifiablenetassetsobtainedbyitinthecombinationshallbemeasuredaccordingtotheirfairvaluesattheacquiringdate.ThedifferencebetweenthefairvalueoftheassetspaidoutbytheCompanyanditsbookvalueshouldbeincludedinthecurrentgainsandlosses.Thepurchasedatereferstothedatethatthepurchaseracquiresthecontrolrightoftheacquiree.Forthebusinesscombinationsnotunderthesamecontrolrealizedthroughstepbystepmultipletransaction,asfortheequityintereststhattheGroupholdsintheacquireebeforetheacquiringdate,theyshallbere-measuredaccordingtotheirfairvaluesattheacquiringdate;thepositivedifferencebetweentheirfairvaluesandcarryingamountsshallberecordedintotheinvestmentgainsfortheperiodincludingtheacquiringdate.Theequityholedbytheacquireewhichinvolvedwiththeothercomprehensiveincomeandtheotherowners’equitieschangesexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionandotherrelatedcomprehensivegainsandotherowners’equitieswhichinrelationtotheequityintereststhattheGroupholdsintheacquireebeforetheacquiringdateshouldbetransferredintothecurrentinvestmentincomeontheacquiringdate,exceptfortheothercomprehensiveincomeoccurredfromthere-measurementofthenetprofitsofthedefinedbenefitplansorthechangesofthenetassetsoftheinvestees.
6.MethodsforPreparingConsolidatedFinancialStatementsTheCompanyconfirmstheconsolidatedscopebasedonthecontrolandincludesthesubsidiarieswithactualcontrolrightintotheconsolidatedfinancialstatement.TheconsolidatedfinancialstatementoftheCompanyiscompiledaccordingtotheregulationsofNo.33ofASBE-ConsolidatedFinancialStatementandtherelevantregulationsandasforthewholesignificantcome-and-gobalance,investment,transactionandtheunrealizedprofitsshouldbewrittenoffwhencompilingtheconsolidatedfinancialstatement.Theportionofasubsidiary’sshareholders’equityandtheportionofasubsidiary’snetprofitsandlossesfortheperiodnotheldbytheGrouparerecognizedasminorityinterestsandminorityshareholderprofitsandlossesrespectivelyandpresentedseparatelyundershareholders’equityandnetprofitsintheconsolidationfinancialstatements.Theportionofasubsidiary’snetprofitsandlossesfortheperiodthatbelongtominorityinterestsispresentedastheitemof“minorityshareholderprofitsandlosses”underthebiggeritemofnetprofitsintheconsolidatedfinancialstatements.Wherethelossofasubsidiarysharedbyminorityshareholdersexceedstheportionenjoyedbyminorityshareholdersinthesubsidiary’sopeningowners’equity,minorityinterestsareoffset.TheaccountingpolicyoraccountingperiodofeachsubsidiaryisdifferentfromwhichoftheCompany,whichshallbeadjustedastheCompany;orsubsidiariesshallpreparefinancialstatementagainrequiredbytheCompanywhenpreparingtheconsolidatedfinancialstatements.Asfortheaddedsubsidiarycompanynotcontrolledbythesameenterprisepreparingtheconsolidatedfinancialstatement,shalladjustindividualfinancialstatementbasedonthefairvalueoftheidentifiablenetassetsontheacquisitiondate;asfortheaddedsubsidiarycompaniescontrolledbythesameenterprisepreparingthefinancialstatement,shallnotadjustthefinancialstatementofthesubsidiaries,namelysurvivedbyintegrationas
participatingintheconsolidationwhenthefinalcontrolpartystartsimplementingcontrolandshouldadjusttheperiod-beginamountoftheconsolidatedbalancesheetandatthesametimeadjusttherelevantitemsofthecomparedstatement.Asforthedisposedsubsidiaries,theoperationresultandthecashflowshouldbeincludedintheconsolidatedincomestatementandtheconsolidatedcashflowbeforethedisposingdate;thedisposedsubsidiariesofthecurrentperiod,shouldnotbeadjustedtheperiod-beginamountoftheconsolidatedbalancesheet.WheretheGrouplossescontrolonitsoriginalsubsidiariesduetodisposalofsomeequityinvestmentsorotherreasons,theresidualequityinterestsarere-measuredaccordingtothefairvalueonthedatewhensuchcontrolceases.Thesummationoftheconsiderationobtainedfromthedisposalofequityinterestsandthefairvalueoftheresidualequityinterests,minustheportionintheoriginalsubsidiary’snetassetsmeasuredonacontinuousbasisfromtheacquisitiondatethatisenjoyablebytheGroupaccordingtotheoriginalshareholdingpercentageinthesubsidiary,isrecordedininvestmentgainsfortheperiodwhentheGroup’scontrolonthesubsidiaryceases.Othercomprehensiveincomesinrelationtotheequityinvestmentandtheotherowners’equitieschangesexceptforthenetgainsandlosses,othercomprehensiveincomeandprofitsdistributionintheoriginalsubsidiaryaretreatedonthesameaccountingbasisastheacquireedirectlydisposestherelevantassetsorliabilities(thatis,exceptforthechangesinthenetliabilitiesorassetswithadefinedbenefitplanresultedfromre-measurementoftheoriginalsubsidiary,therestshallallbetransferredintocurrentinvestmentgains)whensuchcontrolceases.AndsubsequentmeasurementisconductedontheresidualequityinterestsaccordingtotheNo.2AccountingStandardforBusinessEnterprises-Long-termEquityInvestmentsortheNo.22AccountingStandardforBusinessEnterprises-RecognitionandMeasurementofFinancialInstruments.Forthedisposalofequityinvestmentbelongstoapackagedeal,shouldbeconsideredasatransactionandconductaccountingtreatment.However,Beforelosingcontrol,everydisposalcostandcorrespondingnetassetsbalanceofsubsidiaryofdisposalinvestmentareconfirmedasothercomprehensiveincomeinconsolidatedfinancialstatements,whichtogethertransferredintothecurrentprofitsandlossesinthelossofcontrol,whentheGrouplosingcontrolonitssubsidiary.Forthedisposaloftheequityinvestmentnotbelongstoapackagedeal,shouldbeexecutedaccountingtreatmentaccordingtotherelevantpoliciesofpartlydisposingtheequityinvestmentofthesubsidiariesunderthesituationnotlosethecontrolrightbeforelosingthecontrolright;whenlosingthecontrolright,theformershouldbeexecutedaccountingtreatmentaccordingtothegeneraldisposingmethodofthedisposalofthesubsidiaries.
7.ClassificationofJointArrangementsandAccountingTreatmentofJointOperationsTheGroupclassifiesjointarrangementsintojointoperationsandjointventures.AjointoperationreferstoajointarrangementwheretheGroupisthejointoperationspartyofthejointarrangementandenjoysassetsandhastobearliabilitiesrelatedtothearrangement.TheCompanyconfirmsthefollowingitemsrelatedtotheinterestsshareamongthejointoperationsandexecutesaccountingtreatmentaccordingtotheregulationsoftherelevantASBE:
(1)Recognizestheassetsthatitholdsandbearsinthejointoperationandrecognizesthejointly-heldassetsaccordingtotheGroup’sstakeinthejointoperation;
(2)Recognizestheliabilitiesthatitholdsandbearsinthejointoperationandrecognizesthejointly-heldliabilitiesaccordingtotheGroup’sstakeinthejointoperation;
(3)RecognizestheincomefromsaleoftheGroup’sshareintheoutputofthejointoperation
(4)Recognizestheincomefromsaleofthejointoperation’soutputsaccordingtotheGroup’sstakeinit
(5)RecognizestheexpensesolelyincurredtotheGroupandtheexpenseincurredtothejointoperationaccordingtotheGroup’sstakeinit.
8.RecognitionStandardforCashandCashEquivalentsIntheGroup’sunderstanding,cashandcashequivalentsincludecashonhand,anydepositthatcanbeusedforcover,andshort-term(usuallyduewithin3monthssincethedayofpurchase)andhighcirculatinginvestments,whichareeasilyconvertibleintoknownamountofcashandwhoserisksinchangeofvalueareminimal.
9.ForeignCurrencyBusinessesandTranslationofForeignCurrencyFinancialStatements
(1)ForeigncurrencybusinessConcerningtheforeign-currencytransactionsthatoccurred,theforeigncurrencyshallbeconvertedintotherecordingcurrencyaccordingtothemiddlepriceofthemarketexchangeratedisclosedbythePeople’sBankofChinaonthedateofthetransaction.Amongthesaidtransactionsthatoccurred,thoseinvolvingforeignexchangesshallbeconvertedaccordingtotheexchangeratesadoptedintheactualtransactions.Onthebalancesheetdate,theforeign-currencymonetaryassetsandthebalanceoftheliabilityaccountshallbeconvertedintotherecodingcurrencyaccordingtothemiddlepriceofthemarketexchangeratesdisclosedbythePeople’sBankofChinaontheBalanceSheetDate.Thedifferencebetweentherecording-currencyamountconvertedaccordingtotheexchangerateontheBalanceSheetDateandtheoriginalbookrecording-currencyamountshallberecognizedasgains/lossesfromforeignexchange.Andtheexchangegain/losscausedbytheforeign-currencyborrowingsrelatedtopurchasingfixedassetsshallbehandledaccordingtotheprincipleofcapitalizingborrowingexpenses;theexchangegain/lossincurredintheestablishmentperiodshallberecordedintotheestablishmentexpense;othersshallberecordedintothefinancialexpensesforthecurrentperiod.Onthebalancesheetdate,theforeign-currencynon-monetaryitemsmeasuredbyhistoricalcostshallbeconvertedaccordingtothemiddlepriceofthemarketexchangedisclosedbythePeople’sBankofChinaonthedateofthetransaction,withnochangesintheoriginalrecording-currencyamount;whiletheforeign-currencynon-monetaryitemsmeasuredbyfairvalueshallbeconvertedaccordingtothemiddlepriceofthemarketexchangedisclosedbythePeople’sBankofChinaonthedatewhenthefairvalueisrecognized,andtheexchangegain/losscausedthereofshallberecognizedasthegain/lossfromfairvaluechangesandrecordedintothegain/lossofthecurrentperiod.
(2)TranslationofforeigncurrencyTheassetsandliabilitiesitemsamongthebalancesheetoftheforeignoperationshallbetranslatedataspotexchangerateonthebalancesheetdate.Amongtheowner’sequityitems,exceptfortheitemsas“undistributedprofits”,otheritemsshallbetranslatedatthespotexchangerateatthetimewhentheyareincurred.Andtherevenuesandexpensesitemsamongthebalancesheetoftheforeignoperationshallbetranslatedattheapproximateexchangerateofthetransactiondate.Thedifferencecausedfromtheabovetransactionoftheforeigncurrencystatementshouldbelistedintheothercomprehensiveincomeamongtheowners’equities.
10.FinancialInstrumentsClassificationofFinancialInstruments
(1)TheCompanyclassifiesthefinancialassetsintothefollowingthreecategoriesbasedonthebusinessmodelforfinancialassetsmanagementandcharacteristicsofcontractualcashflowoffinancialassets:
①Financialassetsmeasuredatamortizedcost
②Financialassetsmeasuredatfairvalueandchangesthereofrecordedintoothercomprehensiveincome
③FinancialassetsatfairvaluethroughprofitorlossTheclassificationofdebtinstrumentinvestmentdependsontheCompany’sbusinessmodelinwhichitholdstheinvestment;theclassificationofequityinstrumentinvestmentdependsonwhethertheCompanyhasmadetheirrevocableoptionofmeasuringtheinvestmentatfairvaluewithchangesrecognizedintoothercomprehensiveincomeattheinitialrecognition.OnlywhenchangingthebusinessmodelofafinancialassetwilltheCompanyreclassifyallaffectedrelevantfinancialassets.
(2)Financialliabilitiesareclassifiedintothefollowingtwocategories:
①Financialliabilitiesatfairvaluethroughprofitorloss
②FinancialliabilitiesmeasuredatamortizedcostRecognitionBasisforFinancialInstruments:
(1)FinancialassetsmeasuredatamortizedcostThefinancialassetsoftheCompanyareclassifiedasfinancialassetsmeasuredatamortizedcostwhenmeetthefollowingconditionsatthesametime:
①ThebusinessmodeoftheCompanytomanagethefinancialassetstargetsatcollectingthecontractualcashflow.
②Thecontractofthefinancialassetsstipulatesthatthecashflowgeneratedinthespecificdateisthepaymentoftheinterestbasedontheprincipalandoutstandingprincipalamount.
(2)FinancialassetsmeasuredatfairvalueandchangesthereofrecordedintoothercomprehensiveincomeThefinancialassetsoftheCompanyareclassifiedasfinancialassetsmeasuredatfairvalueandchangesthereofrecordedintoothercomprehensiveincomewhenmeetthefollowingconditionsatthesametime:
①BusinessmodeformanagingfinancialassetsoftheCompanytakescontractcashflowcollectedastargetandsellingastarget.
②Thecontractofthefinancialassetsstipulatesthatthecashflowgeneratedinthespecificdateisthepaymentoftheinterestbasedontheprincipalandoutstandingprincipalamount.Atinitialrecognition,theCompanymaydesignatenon-tradingequityinstrumentinvestmentsasfinancialassetsmeasuredatfairvaluewithchangesrecognizedintoothercomprehensiveincome,presentthemasotherequityinstrumentinvestmentitems,andrecognizedividendincomewhenconditionsaremet(Thedesignationshouldnotberevokedoncemade).Suchdesignatedequityinstrumentinvestmentsshouldnotincludethefollowing:Thepurposeofacquiringthefinancialassetisforsaleinashortterm;atinitialrecognition,theequityinstrumentinvestmentispartofanidentifiablefinancialassetportfolioundercentralizedmanagement,andthereisobjectiveevidenceprovinganactualshort-termprofitmodelrecently;theinvestmentisaderivativeinstrument(excludingderivativeinstrumentsconformingwiththedefinitioninfinancialguaranteecontractsanddesignatedaseffectivehedginginstruments).
(3)FinancialassetsatfairvaluethroughprofitorlossTheCompanyclassifiesfinancialassetsexceptforabove-mentionedfinancialassetsmeasuredatamortizedcostandfinancialassetsmeasuredatfairvalueandchangesthereofrecordedintoothercomprehensiveincomeasfinancialassetsatfairvaluethroughprofitorloss.ForfinancialassetsformedfromcontingentconsiderationrecognizedbytheCompanyinbusinesscombinationsnotundercommoncontrol,theyshouldbeclassifiedasfinancialassetsmeasuredatfairvaluewithchanges
includedintocurrentprofits/losses.Atinitialrecognition,financialassetscanbedesignatedasthosemeasuredatfairvaluewithchangesincludedintocurrentprofits/losses(Thedesignationshouldnotberevokedoncemade)ifitcaneliminateorobviouslyreduceaccountingmismatching.Formixedcontractscontainingoneormoreembeddedderivativeswiththemastercontractnotclassifiedastheaforementionedfinancialassets,theCompanymaydesignatetheminentiretyasafinancialinstrumentmeasuredatfairvaluewithchangesincludedintocurrentprofits/losses,withtheexceptionofthefollowing:
①Theembeddedderivative(s)willnotcausesignificantchangestothecashflowofthemixedcontracts.
②Whendeterminingwhethertosplitsimilarmixedcontractsatinitialrecognition,theCompanyisabletodecidethattheembeddedderivativesincludedinthecontractsshouldnotbesplitalmostwithoutanyanalysis.Iftheprepaymentrightofembeddedloansallowstheholdertopayoffloansinadvanceatanamountclosetotheamortizedcost,thatprepaymentrightdoesnotneedtobesplit.
(4)FinancialliabilitiesatfairvaluethroughprofitorlossThiscategoryconsistsoftradingfinancialliabilities(includingderivativeinstrumentsbelongingtofinancialliabilities)andthosedesignatedasfinancialliabilitiesatfairvaluethroughprofitorloss.Inbusinesscombinationsnotundercommoncontrol,thefinancialliabilitiesformedfromcontingentconsiderationrecognizedbytheCompanyasapurchasershouldbetreatedinaccountingasfinancialliabilitiesmeasuredatfairvaluewithchangesincludedintocurrentprofits/losses.Atinitialrecognition,toprovidemorerelevantaccountinginformation,theCompanydesignatesfinancialliabilitiesthatmeetoneofthefollowingconditionsasfinancialliabilitiesmeasuredatfairvaluewithchangesincludedintocurrentprofits/losses(Thedesignationshallnotberevokedoncemade)
①Thefinancialliabilityisabletoeliminateorobviouslyreduceaccountingmismatching.
②Inaccordancewithcorporateriskmanagementorinvestmentstrategiesinofficialwrittendocuments,managementandperformanceappraisalsareconductedonfinancialliabilitiesportfolioorfinancialassetsandfinancialliabilitiesportfoliobasedonfairvalue,basedonwhichareportingisprovidedtokeymanagementpersonnelwithinacompany.
(5)FinancialliabilitiesmeasuredatamortizedcostTheCompanyclassifiesfinancialliabilitiesexceptforthefollowingasfinancialliabilitiesmeasuredatamortizedcost:
①Financialliabilitiesatfairvaluethroughprofitorloss
②Financialliabilitiesformedduetotransferoffinancialassetsfailingtocomplywiththederecognitionconditionorcontinuouslygettinginvolvedintransferredfinancialassets
③Financialguaranteecontractnotinthe①and②ofthisArticleandcommitmentsofloanswiththeinterestratelowerthanthemarketinterestratenotinthe①ofthisarticle.InitialMeasurementofFinancialInstruments:
Financialassetsorliabilitiesshallbemeasuredattheirfairvalueswheninitiallyrecognized.Forfinancialassetsorliabilitiesatfairvaluethroughprofitorloss,thetransactionexpensesthereofshallbedirectlyincludedintothecurrentprofitorloss;forotherfinancialassetsorliabilities,thetransactionexpensesthereofshallbeincludedintotheinitiallyrecognizedamount.Thefairvaluegenerallyisthetransactionpriceofrelevantfinancialassetsorliabilities.Whenthereisdifferencebetweenthefairvaluethereofandthetransactionpricethereof,treattheminthefollowingcases:
Atinitialrecognition,whenthefairvalueoffinancialassetsorfinancialliabilitiesisdeterminedbasedonthe
quotationsofthesameassetsorliabilitiesonactivemarketsorbythevaluationtechnologythatonlyusesobservablemarketdata,thedifferencebetweenthatfairvalueandthetradepriceshouldberecognizedasagainorloss.Whenthefairvalueoffinancialassetsorfinancialliabilitiesisrecognizedinotherwaysatinitialrecognition,thedifferencebetweenthatfairvalueandthetradepriceshouldbedeferred.Aftertheinitialrecognition,basedontheextentofchangesofafactorinanaccountingperiod,thedeferreddifferenceshouldberecognizedasagainorlossduringtheaccountingperiod.Suchfactorsshouldbelimitedtofactorsthatwillbeconsideredbymarketplayersinpricingthefinancialinstrument,includingtime.SubsequentMeasurementofFinancialInstruments:
Aftertheinitialrecognition,forvariousfinancialassets,thesubsequentmeasurementatamortizedcost,atfairvalueandchangesthereofrecordedintoothercomprehensiveincomeoratfairvaluethroughprofitorlossshallberespectivelymade.Theamortizedcostoffinancialassetsorfinancialliabilitiesshouldberecognizedbytheresultofmakingthefollowingadjustmentstotheinitiallyrecognizedamountofthefinancialassetsorfinancialliabilities:
Deducttherepaidprincipal.Addorminusthecumulativeamortizationformedfromtheamortizationofthedifferencebetweentheinitiallyrecognizedamountandtheamountonthematuritydateintheeffectiveinterestmethod.Deductcumulativewithdrawnprovisionsforlosses(applicabletofinancialassetsonly).Otherthanfinancialassets,gainsorlossesfromfinancialliabilitiesmeasuredatamortizedcostthatarenotpartofanyhedgingrelationshipareincludedintocurrentprofits/lossesatderecognition,orrecordedintoprofits/lossesfortherelatedperiodatamortizationintheeffectiveinterestmethod.WhentheCompanydesignatesfinancialliabilitiesasthosemeasuredatfairvaluewithchangesincludedintocurrentprofits/lossesinaccordancewithstandardsandregulationsatinitialrecognition,theamountofchangesinthefairvalueofthefinancialliabilitiesarisingfromthecreditriskchangesoftheCompanyitselfwillberecordedintoothercomprehensiveincome,andotherfairvaluechangeswillberecordedintocurrentprofits/losses.However,ifsuchaccountingtreatmentcausesorexpandstheaccountingmismatchinginprofits/losses,allgainsorlossesfromthefinancialliabilities(includingtheamountaffectedbycreditriskchangesoftheCompanyitself)willberecordedintocurrentprofits/losses.DerecognitionofFinancialInstruments:
(1)Financialassetsshallbederecognizedwhenmeetsoneofthefollowingconditions:
①Thecontractualrighttocollectthecashflowofthefinancialassetshasbeenterminated.
②ThefinancialassethasbeentransferredandthetransferconformstotheregulationsgoverningthederecognitionoffinancialassetsintheAccountingStandardsforBusinessEnterprisesNo.23-TransferofFinancialAssets.ThederecognitionoffinancialassetsorliabilitiesintheStandardsreferstothattheCompanytransferredthefinancialassetsorliabilitiespreviouslyrecognizedoutofthebalancesheet.
(2)DerecognitionconditionforfinancialliabilitiesIncaseofcurrentobligationoffinancialliabilities(orpartialfinancialliabilities)beingterminated,derecognitionofsuchfinancialliabilities(orpartialfinancialliabilities)isconductedbytheCompany.IftheCompany(borrower)concludesanagreementwiththelendertoreplaceoriginalfinancialliabilitieswithnewonesandcontacttermsofnewfinancialliabilitiesaredifferentfromthoseoforiginalfinancialliabilities,derecognitionoforiginalfinancialliabilitiesandrecognitionofnewfinancialliabilitiesshallbeconducted.Incaseofmaterialalterationofcontracttermsoforiginalfinancialliabilities(partialfinancialliabilities)bythe
Company,derecognitionoforiginalfinancialliabilitiesandrecognitionofnewfinancialliabilitiesaspermodifiedtermsshallbeconducted.Incaseofderecognitionoffinancialliabilities(partialfinancialliabilities),theCompanyincludesthebalancebetweenitscarryingvalueandpaymentconsideration(includingnon-cashassetstransferredoutorborneliabilities)intothecurrentprofitorloss.WhentheCompanyrepurchasespartoffinancialliabilities,theoverallbookvalueofthefinancialabilitieswillbedistributedintheproportionofthefairvalueofthepartcontinuingtoberecognizedandthatofthederecognizedpartontherepurchasedateintheoverallfairvalue.Thedifferencebetweenthebookvaluedistributedtothederecognizedpartandtheconsiderationpaid(includingnon-cashassetstransferredoutorliabilitiesborne)shouldberecordedintocurrentprofits/losses.RecognitionBasisandMeasurementMethodforTransferofFinancialAssets:
Intheeventofthetransferofafinancialasset,theCompanywillassesstheextenttowhichitretainstherisksandrewardsoftheassetandtreatstheminthefollowingcases:
(1)Ifalmostallrisksandrewardsofownershipofthefinancialassetaretransferred,thefinancialassetisderecognisedandtherightsandobligationsarisingorretainedinthetransferareseparatelyrecognizedasassetsorliabilities.
(2)Ifalmostallrisksandrewardsofownershipofthefinancialassetareretained,thefinancialassetiscontinuouslyrecognized.
(3)Ifalmostallrisksandrewardsofownershipofthefinancialassetareneithertransferrednorretained,theCompanyshalltreattheminthefollowingcasesaccordingtowhetherthecontroloverthefinancialassethasbeenretained:
①Ifthecontroloverthefinancialassethasnotbeenretained,theCompanyshallderecognizethefinancialasset,andseparatelyrecognizetherightsandobligationsarisingorretainedinthetransferasassetsorliabilities.
②Ifthecontroloverthefinancialassethasbeenretained,theCompanyshallcontinuouslyrecognizetherelatedfinancialassetandcorrespondingliabilitiesaccordingtotheextentofcontinuousinvolvementinthetransferredfinancialasset.TheextentofcontinuousinvolvementinthetransferredfinancialassetreferstotheextentofrisksorrewardsbornbytheCompanygeneratedfromthevaluevariationofthetransferredfinancialasset.Theprincipleofsubstanceoutweighingformalizationisadoptedforjudgingwhetherthetransferoffinancialassetsmeetstheaforementionedconditionsforthederecognitionoffinancialassets.TheCompanyclassifiesthetransferoffinancialassetsintowholetransferandpartialtransferoffinancialassets:
(1)Whenthewholetransferoffinancialassetsmeetsthederecognitionconditions,thedifferencebetweenthefollowingtwoitemsshouldberecordedintocurrentprofits/losses:
①bookvalueofthetransferredfinancialassetsonthedateofderecognition.
②sumoftheconsiderationreceivedfromthetransferofthefinancialassets,andthecorrespondingderecognizedportion(Thefinancialassetsinvolvedinthetransferarefinancialassetsmeasuredatfairvaluewithchangesrecordedintoothercomprehensiveincome)ofthecumulativefairvaluechangesoriginallydirectlyrecordedintoothercomprehensiveincome.
(1)Whenfinancialassetsarepartiallytransferredandthewholetransferredpartmeetsthederecognitionconditions,theoverallbookvalueofthefinancialassetsbeforethetransfershouldbeapportionedbetweenthederecognizedpartandthepartcontinuingtoberecognized(Insuchcase,theretainedserviceassetsshouldberegardedaspartofthefinancialassetscontinuingtoberecognized)bytheirrespectiverelativefairvaluesonthedateoftransfer,andthedifferencebetweenthefollowingtwoitemsshouldberecordedintocurrentprofits/losses:
①bookvalueofthederecognizedpartonthedateofderecognition.
②sumoftheconsiderationreceivedfromthederecognizedpart,andthecorrespondingderecognizedportion(Thefinancialassetsinvolvedinthetransferarefinancialassetsmeasuredatfairvaluewithchangesrecordedintoothercomprehensiveincome)ofthecumulativefairvaluechangesoriginallyrecordedintoothercomprehensiveincome.Whenthetransferoffinancialassetsdoesnotmeetthederecognitionconditions,thefinancialassetsshouldcontinuetoberecognizedandtheconsiderationreceivedshouldberecognizedasfinancialliabilities.RecognitionmethodoffairvalueoffinancialassetsandfinancialliabilitiesThefairvalueoffinancialliabilitiesorfinancialliabilitiesexistingonactivemarketsshouldberecognizedbyquotationsonactivemarkets;quotationsonactivemarketsincludesquotationsofrelatedassetsorliabilitiesthatareeasytoandcanbeobtainedregularlyfromexchanges,dealers,brokers,industrygroups,pricinginstitutionsorregulatoryauthorities,andthatcanrepresentmarkettransactionsthatactuallyandfrequentlyoccuronthebasisoffairtransactions.Forinitiallyobtainedorderivativefinancialassetsorfinancialliabilitiesundertaken,thefairvaluethereofshallberecognizedbasedonthemarkettransactionprice.Thefairvalueoffinancialassetsorliabilitieswithoutactivemarketshallberecognizedbyvaluationtechniques.Invaluation,theCompanyadoptsapplicablevaluationtechniquessupportedbysufficientutilizabledataandotherinformationincurrentcircumstances,selectsinputvaluesconsistentwithassetorliabilitycharacteristicsconsideredinrelevantassetorliabilitytransactionsofmarketparticipatorsandprioritizestheapplyingrelevantobservableinputvalues.Unobservableinputvaluesshallnotbeappliedunlessrelevantobservableinputvaluesarenotaccessibleorfeasible.ImpairmentAllowanceforFinancialAssets(excludingAccountsReceivable):
(1)Basedonexpectedcreditlosses,theCompanyevaluatestheexpectedcreditlossesoffinancialassetsmeasuredatamortizedcostandoffinancialassetsmeasuredatfairvaluewithchangesrecordedintoothercomprehensiveincome,carriesouttheaccountingtreatmentofimpairmentandrecognizestheprovisionsforlosses.Expectedcreditlossesrefertotheweightedaverageofthecreditlossesoffinancialinstrumentswithdefaultriskastheweight.CreditlossesrefertothedifferencebetweenallcontractcashflowsreceivablebytheCompanyinaccordancewithcontractsdiscountedbytheoriginaleffectiveinterestrateandallcashflowsexpectedtoreceive,aswellasthepresentvalueofallcashshortages.
(2)Whenoneormoreeventswithadverseeffectsontheexpectedfuturecashflowoffinancialassetsoccur,thefinancialassetsturnintofinancialassetswithcreditimpairment.Theevidenceforcreditimpairmentoffinancialassetsincludesthefollowingobservableinformation:
①Theissuerorthedebtorencounterssignificantfinancialdifficulties;
②Thedebtorbreachesthecontract,suchasdefaultoroverduepaymentofinterestsorprincipal;
③Thecreditormakesacompromiseforthedebtorwhichwouldbeimpossibleinanyothercircumstancesoutofeconomicorcontractualconsiderationrelatedtothedebtor’sfinancialdifficulties;
④Thedebtorwillprobablygobankruptorcarryoutotherfinancialrestructuring;
⑤Theissuerorthedebtor’sfinancialdifficultiesresultinthedisappearanceoftheactivemarketsofthefinancialassets;
⑥Afinancialassetwasboughtororiginatedwithabigdiscount,whichreflectsthefactofcreditlosses.Creditimpairmentoffinancialassetscanbecausedbymultipleeventstogetherandnotnecessarilybyseparatelyidentifiableevents.
(3)Forfinancialassetswithcreditimpairmentboughtororiginated,onlythecumulativechangesinexpectedcreditlossesduringthewholedurationasatthebalancesheetdatesinceinitialrecognitionwillberecognizedasprovisionsforlosses.Oneachbalancesheetdate,theamountofchangesinexpectedcreditlossesforthewholedurationwillbeincludedintocurrentprofits/lossesasimpairmentlossesorgains.Evenwhentheexpectedcreditlossesforthewholedurationrecognizedonthebalancesheetdatearelessthantheexpectedcreditlossesreflectedintheestimationofcashflowsatinitialrecognition,thefavorablechangesintheexpectedcreditlossesarerecognizedasimpairmentgains.
(4)Otherthanthecircumstancesofwithdrawalofprovisionsforlossesforfinancialinstrumentsintheaboveitem
(3),theCompanyevaluateswhetherthecreditriskofrelatedfinancialinstrumentshasincreasedsubstantiallyasateachbalancesheetdatesinceinitialrecognition,andmeasurestheprovisionsforlossesandrecognizesexpectedcreditlossesandthechangesaccordingtothefollowing:
①Ifthecreditriskofthefinancialinstrumentshasincreasedsubstantiallysinceinitialrecognition,theprovisionsforlosseswillbemeasuredbytheamountequivalenttotheexpectedcreditlossesofthefinancialinstrumentsforthewholeduration.RegardlessofwhethertheCompanyevaluatescreditlossesbasedonindividualfinancialinstrumentsorfinancialinstrumentportfolios,theamountofincreaseorreverseofprovisionsforlossesformedthereofshouldbeincludedintocurrentprofits/lossesasimpairmentlossesorgains.
②Ifthecreditriskofthefinancialinstrumentshasnotincreasedsubstantiallysinceinitialrecognition,theprovisionsforlosseswillbemeasuredbytheamountequivalenttotheexpectedcreditlossesofthefinancialinstrumentsforthenext12months.RegardlessofwhethertheCompanyevaluatescreditlossesbasedonindividualfinancialinstrumentsorfinancialinstrumentportfolios,theamountofincreaseorreverseofprovisionsforlossesformedthereofshouldbeincludedintocurrentprofits/lossesasimpairmentlossesorgains.Expectedcreditlossesforthenext12monthsrefertotheexpectedcreditlossesresultingfrompotentialdefaulteventsinrespectoffinancialinstrumentsinthe12months(whichshouldbetheexpecteddurationiftheexpecteddurationofthefinancialinstrumentsislessthan12months)followingthebalancesheetdate,whicharepartoftheexpectedcreditlossesforthewholeduration.TheCompanyshallconsiderallreasonableandwell-foundedinformation,includingforward-lookinginformation.Insomecircumstances,theCompanyconsiderswhetherthecreditriskhassubstantiallyincreasedbasedonportfoliostoensurethattheexpectedcreditlossesforthewholedurationwillberecognizedimmediatelyuponsubstantialincreaseofthecreditrisksincetheinitialrecognitionofthefinancialinstruments.OffsetofFinancialAssetsandFinancialLiabilities:
Financialassetsandfinancialliabilitiesshallbepresentedseparatelyinthebalancesheetandshallnotbeoffset.But,whenmeetingthefollowingconditionsatthesametime,thefinancialassetsandfinancialliabilitiesshallbepresentedinthebalancesheetwiththenetamountaftertheset-off:
(1)TheCompanyhasalegalrightthatiscurrentlyenforceabletosetofftherecognizedfinancialassetsandfinancialliabilities;
(2)TheCompanyintendseithertosettleonanetbasis,ortorealizethefinancialassetandsettlethefinancialliabilitysimultaneously.
11.NotesReceivableOnthebasisofexpectedcreditlosses,thecompanyevaluatestheexpectedcreditlossesoffinancialinstrumentsonthebasisofsingleitemandcombination,carriesoutimpairmenttreatmentandconfirmsthelossprovision.Forthenotesreceivable,thecompanydividesthenotesreceivableintobankacceptancebillcombinationand
commercialacceptancebillcombinationaccordingtothecreditriskcharacteristics,andcalculatestheexpectedcreditlossonthebasisofthecombination.Forthenotesreceivabledividedintoportfolios,thecompanyshall,whenevaluatingtheexpectedcreditlosses,considerthereasonableandreasonableinformationrelatedtothepastevents,thecurrentsituationandtheforecastoffutureeconomicconditions,determinetheexpectedcreditlossrateandcalculatetheexpectedcreditlosses.
12.AccountsReceivable
(1)AccountsReceivableForaccountsreceivable,regardlessofwhetheritcontainssignificantfinancingelements,thecompanyalwaysmeasuresitslossprovisioninaccordancewiththeamountequivalenttotheexpectedcreditlossinthewholeduration,andtheresultingincreaseorrefundedamountoflossprovisionisrecordedasimpairmentlossorprofitinthecurrentprofitandloss.Thecompanycombinestheaccountsreceivablewithsimilarcreditriskcharacteristics(aging),andestimatestheproportionofbaddebtprovisionfortheaccountsreceivablebasedonallreasonableandvalidinformation,includingforward-lookinginformation,asfollows:
Aging | Withdrawalproportionofaccountsreceivable | Withdrawalproportionofotherreceivables |
Within1year(including1year) | 2.00% | 2.00% |
1to2years | 5.00% | 5.00% |
2to3years | 15.00% | 15.00% |
3to4years | 30.00% | 30.00% |
4to5years | 60.00% | 60.00% |
Over5years | 100.00% | 100.00% |
Ifthereisobjectiveevidencethatacertainaccountreceivablehassufferedfromcreditimpairment,thecompanyshallseparatelymakebaddebtprovisionfortheaccountreceivableandconfirmtheexpectedcreditloss.
(2)OtherreceivablesForthemeasurementofimpairmentlossofotherreceivables,themeasurementmethodofimpairmentlossoftheaforementionedreceivablesshallbeapplied.
13.InventoryIstheCompanysubjecttoanydisclosurerequirementsforspecialindustries?No
(1)CategoryofInventoryInventoryreferstotheheld-for-salefinishedproductsorcommodities,goodsinprocess,materialsconsumedintheproductionprocessortheprocessprovidingthelaborserviceetc.Inventoryismainlyincludingtherawmaterials,lowpricedandeasilywornarticles,unfinishedproducts,inventoriesandworkinprocess–outsourcedetc.
(2)PricingmethodPurchasingandstorageofthevariousinventoriesshouldbevaluedaccordingtotheplanedcostandthedispatchbecalculatedaccordingtotheweightedaveragemethod;carriedforwardthecostofthefinishedproducts
accordingtotheactualcostofthecurrentperiodandthesalescostaccordingtotheweightedaveragemethod.
(3)DeterminationbasisofthenetrealizablevalueofinventoryandwithdrawalmethodoftheprovisionforfallingpriceofinventoryAtthebalancesheetdate,inventoriesaremeasuredatthelowerofthecostsandnetrealizablevalue.Whenalltheinventoriesarecheckedroundly,forthosewhichweredestroyed,outdatedinallorinpart,soldataloss,etc,theCompanyshallestimatetheirrecoverablepartofitscostandwithdrawaltheinventoryfallingpricereserveattheyear-end.Wherethecostofthesingleinventoryitemishigherthanthenetrealizablevalue,theinventoryfallingpricereserveshallbewithdrawnandrecordedintoprofitsandlossesofthecurrentperiod.Ofwhich:inthenormalproductionandoperatingprocess,asforthecommoditiesinventorydirectlyforsalessuchasthefinishedproducts,commoditiesandthematerialsforsales,shouldrecognizethenetrealizablevalueaccordingtotheamountoftheestimatedsellingpriceoftheinventoryminusestheestimatedsellingexpensesandtherelevanttaxes;asforthematerialsinventoryneedstobeprocessedinthenormalproductionandoperatingprocess,shouldrecognizeitsnetrealizablevalueaccordingtotheamountoftheestimatedsellingpriceofthefinishedproductsminusesthecostpredictstobeoccurwhentheproductioncompletesandtheestimatedsellingexpensesaswellastherelevanttaxes;onthebalancesheetdate,forthesameinventorywithonepartagreedbythecontractpriceandotherpartsnotbythecontractprice,shouldberespectivelyrecognizedthenetrealizablevalue.Foritemsofinventoriesrelatingtoaproductlinethatareproducedandmarketedinthesamegeographicalarea,havethesameorsimilarendusersorpurposes,andcannotbepracticablyevaluatedseparatelyfromotheritemsinthatproductlineprovisionfordeclineinvalueisdeterminedonanaggregatebasis;forlargequantityandlowvalueitemsofinventories,provisionfordeclineinvalueismadebasedoncategoriesofinventories.
(4)Theperpetualinventorysystemismaintainedforstocksystem.
(5)Amortizationmethodoflow-valueconsumablesandpackagesOnetimeamortizationmethodisadoptedforlow-valueconsumablesandpackages.
14.AssetsHeldforSaleTheCompanyrecognizesthecomponents(orthenon-currentassets)whichmeetwiththefollowingconditionsasassetsheldforsale:
(1)Thecomponentsmustbeimmediatelysoldonlyaccordingtotheusualtermsofsellingthiskindofcomponentsunderthecurrentconditions;
(2)TheCompanyhadmadesolutionsondisposingthecomponents(orthenon-currentassets),forexample,theCompanyshouldgaintheapprovalfromtheshareholdersaccordingtotheregulationsandhadacquiredtheapprovedfromtheAnnualGeneralMeetingortherelevantauthorityinstitutions;
(3)TheCompanyhadsignedtheirrevocabletransformationagreementwiththetransferee;
(4)Thetransformationshouldbecompletedwithin1year.
15.Long-termEquityInvestments
(1)JudgmentstandardofjointcontrolandsignificantinfluencesJointcontrol,referstothecontroljointlyownedaccordingtotherelevantagreementonanarrangementbytheCompanyandtherelevantactivitiesofthearrangementshouldbedecidedonlyaftertheparticipantswhichsharethecontrolrightmakeconsensus.SignificantinfluencereferstothepoweroftheGroupwhichcouldanticipateinthefinanceandtheoperationpolicesoftheinvestees,butcouldnotcontrolorjointlycontroltheformulationofthepolicieswiththeotherparties.
(2)RecognitionforinitialinvestmentcostTheinitialinvestmentcostofthelong-termequityinvestmentshallberecognizedbyadoptingthefollowingwaysinaccordancewithdifferentmethodsofacquisition:
1)Asforthoseformsunderthesamecontroloftheenterprisecombine,ifthecombinepartytakesthecashpayment,non-cashassetstransformation,liabilitiesassumptionorequitysecuritiesissuanceasthecombinationconsideration,shouldtakethesharesofthebookvaluebytheultimatecontrolpartyintheconsolidatefinancialstatementoftheowners’equitiesofthecombinersacquiredonthemergerdateastheinitialinvestmentcost.Thedifferencebetweentheinitialinvestmentcostandthebookvalueofthepaidcombinationconsiderationorthetotalamountoftheissuedsharesofthelong-termequityinvestmentshouldbeadjustedthecapitalreserve;Ifthecapitalreserveisinsufficienttodilute,theretainedearningsshallbeadjusted.Toincludeeachdirectrelevantexpenseoccurredwhenexecutingtheenterprisemergerintothecurrentgainsandlosses;whilethehandlingchargesandcommissionoccursfromtheissuingtheequitysecuritiesorthebondsfortheenterprisemergershouldbeincludedintheinitialmeasurementamountoftheshareholders’equitiesortheliabilities.
2)Asforlong-termequityinvestmentacquiredthroughthemergerofenterprisesnotunderthesamecontrol,itsinitialinvestmentcostshallregardasthecombinationcostcalculatedbythefairvalueoftheassets,equityinstrumentissuedandliabilitiesincurredorundertakenonthepurchasedateaddingthedirectcostrelatedwiththeacquisition.Theidentifiableassetsofthecombinedpartyandtheliabilities(includingcontingentliability)undertakenonthecombiningdateshallbemeasuredatthefairvaluewithoutconsideringtheamountofminorityinterest.Theacquirershallrecognizethepositivebalancebetweenthecombinationcostsandthefairvalueoftheidentifiablenetassetsitobtainsfromtheacquireeasbusinessreputation.Theacquirershallrecordthenegativebalancebetweenthecombinationcostsandthefairvalueoftheidentifiablenetassetsitobtainsfromtheacquireeintotheconsolidatedincomestatementdirectly.Theagentexpenseandotherrelevantmanagementexpensessuchastheaudit,legalserviceandevaluationconsultationoccursfromtheenterprisemerger,shouldbeincludedinthecurrentgainsandlosseswhenoccur;whilethehandlingchargesandcommissionoccursfromtheissuingtheequitysecuritiesorthebondsfortheenterprisemergershouldbeincludedintheinitialmeasurementamountoftheshareholders’equitiesortheliabilities.
3)Long-termequityinvestmentobtainedbyothermeansTheinitialcostofalong-termequityinvestmentobtainedbymakingpaymentincashshallbethepurchasecostwhichisactuallypaid.Theinitialcostofalong-termequityinvestmentobtainedonthebasisofissuingequitysecuritiesshallbethefairvalueoftheequitysecuritiesissued.Theinitialcostofalong-termequityinvestmentofaninvestorshallbethevaluestipulatedintheinvestmentcontractoragreement,theunfairvaluestipulatedinthecontractoragreementshallbemeasuredatfairvalue.Asforlong-terminvestmentobtainedbytheexchangeofnon-monetaryassets,whereitiscommercialinnature,thefairvalueoftheassetssurrenderedshallberecognizedastheinitialcostofthelong-termequityinvestmentreceived;whereitisnotcommercialinnature,thebookvalueoftheassetssurrenderedshallberecognizedastheinitialcostofthelong-termequityinvestmentreceived.Theinitialcostofalong-termequityinvestmentobtainedbyrecombinationofliabilitiesshallberecognizedatfairvalueoflong-termequityinvestment.
(3)Subsequentmeasurementandrecognitionofprofitsandlosses
1)AninvestmentinthesubsidiarycompanyshallbemeasuredbyemployingthecostmethodWheretheCompanyhold,andisabletodoequityinvestmentwithcontroloveraninvestedentity,theinvestedentityshallbeitssubsidiarycompany.WheretheCompanyholdsthesharesofanentityover50%,or,whilethe
Companyholdsthesharesofanentitybelow50%,buthasarealcontroltothesaidentity,thenthesaidentityshallbeitssubsidiarycompany.
2)AninvestmentinthejointenterpriseorassociatedenterpriseshallbemeasuredbyemployingtheequitymethodWheretheCompanyhold,andisabletodoequityinvestmentwithjointcontrolwithotherpartiesoveraninvestedentity,theinvestedentityshallbeitsjointenterprise.WheretheCompanyhold,andisabletohaveequityinvestmentwithsignificantinfluencesonaninvestedentity,theinvestedentityshallbeitsassociatedentity.AftertheCompanyacquiredthelong-termequityinvestment,shouldrespectivelyrecognizeinvestmentincomeandothercomprehensiveincomeaccordingtothenetgainsandlossesaswellastheportionofothercomprehensiveincomewhichshouldbeenjoyedorbeshared,andatthesametimeadjustthebookvalueofthelong-termequityinvestment;correspondingreducethebookvalueofthelong-termequityinvestmentaccordingtoprofitswhichbedeclaredtodistributebytheinvesteesortheportionofthecalculationofcashdividendswhichshouldbeenjoyed;fortheotherchangesexceptforthenetgainsandlosses,othercomprehensiveincomeandtheowners’equityexceptfortheprofitsdistributionoftheinvestees,shouldadjustthebookvalueofthelong-termequityinvestmentaswellasincludeintheowners’equity.Theinvestingenterpriseshall,onthegroundofthefairvalueofallidentifiableassetsoftheinvestedentitywhenitobtainstheinvestment,recognizetheattributableshareofthenetprofitsandlossesoftheinvestedentityafteritadjuststhenetprofitsoftheinvestedentity.IftheaccountingpolicyadoptedbytheinvesteesisnotaccordwiththatoftheGroup,shouldbeadjustedaccordingtotheaccountingpoliciesoftheGroupandthefinancialstatementoftheinvesteesduringtheaccountingperiodandaccordingwhichtorecognizetheinvestmentincomeaswellasothercomprehensiveincome.ForthetransactionhappenedbetweentheCompanyandassociatedenterprisesaswellasjointventures,iftheassetslaunchedorsoldnotformintobusiness,theportionoftheunrealizedgainsandlossesoftheinternaltransaction,whichbelongstotheGroupaccordingtothecalculationoftheenjoyedproportion,shouldrecognizetheinvestmentgainsandlossesonthebasis.ButthelossesoftheunrealizedinternaltransactionhappenedbetweentheCompanyandtheinvesteeswhichbelongstotheimpairmentlossesofthetransferredassets,shouldnotbeneutralized.TheCompanyshallrecognizethenetlossesoftheinvestedenterpriseaccordingtothefollowingsequence:firstofall,towritedownthebookvalueofthelong-termequityinvestment.Secondly,ifthebookvalueofthelong-termequityinvestmentisinsufficientforwrittendown,shouldbecontinuedtorecognizedtheinvestmentlosseslimitedtothebookvalueofotherlong-termequitywhichformsofthenetinvestmentoftheinvesteesandtowrittendownthebookvalueofthelong-termaccountsreceivableetc.Lastly,throughtheabovehandling,forthoseshouldstillundertaketheadditionalobligationsaccordingtotheinvestmentcontractsortheagreements,itshallberecognizedastheestimatedliabilitiesinaccordancewiththeestimateddutiesandthenrecordedintoinvestmentlossesatcurrentperiod.Iftheinvestedentityrealizesanynetprofitslater,theGroupshall,aftertheamountofitsattributableshareofprofitsoffsetsagainstitsattributableshareoftheun-recognizedlosses,resumerecognizingitsattributableshareofprofits.Inthepreparationforthefinancialstatements,thebalanceexistedbetweenthelong-termequityinvestmentincreasedbyacquiringsharesofminorityinterestandtheattributablenetassetsonthesubsidiarycalculatedbytheincreasedsharesheldsincethepurchasedate(orcombinationdate),thecapitalreservesshallbeadjusted,ifthecapitalreservesarenotsufficienttooffset,theretainedprofitsshallbeadjusted;theCompanydisposedpartof
thelong-termequityinvestmentonsubsidiarieswithoutlosingitscontrollingrightonthem,thebalancebetweenthedisposedpriceandattributablenetassetsofsubsidiariesbydisposingthelong-termequityinvestmentshallberecordedintoowners’equity.Forotherwaysondisposaloflong-termequityinvestment,thebalancebetweenthebookvalueofthedisposedequityanditsactualpaymentgainedshallberecordedintocurrentprofitsandlosses.Forthelong-termequityinvestmentmeasuredbyadoptingequitymethod,iftheremainedequityafterdisposalstilladoptstheequitymethodformeasurement,theothercomprehensiveincomeoriginallyrecordedintoowners’equityshouldadoptthesamebasisoftheaccountingdisposaloftherelevantassetsorliabilitiesdirectlydisposedbytheinvesteesaccordingtothecorrespondingproportion.Theowners’equityrecognizedowningtothechangesoftheotherowners’equityexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionoftheinvestees,shouldbetransferredintothecurrentgainsandlossesaccordingtotheproportion.Forthelong-termequityinvestmentwhichadoptsthecostmethodofmeasurement,iftheremainedequitystilladoptthecostmethod,theothercomprehensiveincomerecognizedowningtoadoptingtheequitymethodformeasurementortherecognitionandmeasurementstandardsoffinancialinstrumentbeforeacquiringthecontroloftheinvestees,shouldadoptthesamebasisoftheaccountingdisposaloftherelevantassetsorliabilitiesdirectlydisposedbytheinvesteesandshouldbecarriedforwardintothecurrentgainsandlossesaccordingtotheproportion;thechangesoftheotherowners’equityexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionamongthenetassetsoftheinvesteeswhichrecognizedbyadoptingtheequitymethodformeasurement,shouldbecarriedforwardintothecurrentgainsandlossesaccordingtotheproportion.ForthosetheCompanylostthecontroloftheinvesteesbydisposingpartoftheequityinvestmentaswellastheremainedequityafterdisposalcouldexecutejointcontrolorsignificantinfluencesontheinvestees,shouldchangetomeasurebyequitymethodwhencompilingtheindividualfinancialstatementandshouldadjustthemeasurementoftheremainedequitytoequitymethodasadoptedsincethetimeacquired;iftheremainedequityafterdisposalcouldnotexecutejointcontrolorsignificantinfluencesontheinvestees,shouldchangetheaccountingdisposalaccordingtotherelevantregulationsoftherecognitionandmeasurementstandardsoffinancialinstrument,anditsdifferencebetweenthefairvalueandbookvalueonthedatelosethecontrolrightshouldbeincludedinthecurrentgainsandlosses.FortheothercomprehensiveincomerecognizedbyadoptingequitymethodformeasurementortherecognitionandmeasurementstandardsoffinancialinstrumentbeforetheGroupacquiredthecontroloftheinvestees,shouldexecutetheaccountingdisposalbyadoptingthesamebasisoftheaccountingdisposaloftherelevantassetsorliabilitiesdirectlydisposedbytheinvesteeswhenlosethecontrolofthem,whilethechangesoftheotherowners’equityexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionamongthenetassetsoftheinvesteeswhichrecognizedbyadoptingtheequitymethodformeasurement,shouldbecarriedforwardintothecurrentgainsandlossesaccordingtotheproportion.Ofwhich,forthedisposedremainedequitywhichadoptedtheequitymethodformeasurement,theothercomprehensiveincomeandtheotherowners’equityshouldbecarriedforwardaccordingtotheproportion;forthedisposedremainedequitywhichchangedtoexecutetheaccountingdisposalaccordingtotherecognitionandmeasurementstandardsoffinancialinstrument,theothercomprehensiveincomeandtheotherowners’equityshouldbecarriedforwardinfullamount.ForthosetheCompanylostthecontroloftheinvesteesbydisposingpartoftheequityinvestment,thedisposedremainedequityshouldchangetocalculateaccordingtotherecognitionandmeasurementstandardsoffinancialinstrument,anddifferencebetweenthefairvalueandbookvalueonthedatelosethecontrolrightshouldbeincludedinthecurrentgainsandlosses.Fortheothercomprehensiveincomerecognizedfromtheoriginalequityinvestmentbyadoptingtheequitymethod,shouldexecutetheaccountingdisposalbyadoptingthesamebasisoftheaccountingdisposaloftherelevantassetsorliabilitiesdirectlydisposedbytheinvesteeswhenterminatethe
equitymethodformeasurement,whilefortheowners’equityrecognizedowningtothechangesoftheotherowner’sequityexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionoftheinvestees,shouldbetransferredintothecurrentinvestmentincomewithfullamountwhenterminateadoptingtheequitymethod.
16.InvestmentPropertyMeasurementmodeofinvestmentrealestate:
MeasurementofcostmodelDepreciationoramortizationmethodTheinvestmentrealestateshallbemeasuredatitscost.Ofwhich,thecostofaninvestmentrealestatebyacquisitionconsistsoftheacquisitionprice,relevanttaxes,andotherexpensedirectlyrelegatedtotheasset;thecostofaself-builtinvestmentrealestatecomposesofthenecessaryexpensesforbuildingtheassettothehopedconditionforuse.Theinvestmentrealestateinvestedbyinvestorsshallberecordedatthevaluestipulatedintheinvestmentcontractsoragreements,buttheunfairvalueappointedinthecontractoragreementshallbeenteredintotheaccountbookatthefairvalue.Asforwithdrawalbasisofprovisionforimpairmentofinvestmentrealestates,pleaserefertowithdrawalmethodforprovisionforimpairmentoffixedassets.
17.FixedAssets
(1)RecognitionConditionsFixedassetsreferstothetangibleassetsthatsimultaneouslypossessthefeaturesasfollows:(a)theyareheldforthesakeofproducingcommodities,renderinglaborservice,rentingorbusinessmanagement;and(b)theirusefullifeisinexcessofonefiscalyear.ThefixedassetsareonlyrecognizedwhentherelevanteconomicbenefitsprobablyflowintheCompanyanditscostcouldbereliablemeasured.
(2)DepreciationMethod
Categoryoffixedassets | Depreciationmethod | depreciablelife | Salvagevalue | Annualdeprecation |
Housingandbuilding | Straight-linemethod | 20-40 | 2.50%-5% | |
Machineryequipment | Straight-linemethod | 6-15 | 6.67%-16.67% | |
Transportationequipment | Straight-linemethod | 5-10 | 10%-20% | |
Otherequipment | Straight-linemethod | 5-10 | 10%-20% |
(3)RecognitionBasis,PricingandDepreciationMethodofFixedAssetsbyFinanceLeaseTheCompanyrecognizesthosemeetwiththefollowingoneorcertainstandardsasthefixedassetsbyfinancelease:
1)Theleasingcontracthadagreedthat(ormadethereasonablejudgmentaccordingtotherelevantconditionsontheleasestartingdate)whentheleasetermexpires,theownershipofleasingthefixedassetscouldbetransferredtotheCompany;
2)TheCompanyownsthechoosingrightforpurchasingandleasingthefixedassets,withthesetpurchasepricewhichisestimatedfarlowerthanthefairvalueofthefixedassetsbyfinanceleasewhenexecutingthechoosingright,sotheCompanycouldexecutethechoosingrightreasonablyontheleasestartingdate;
3)Eveniftheownershipofthefixedassetsnotbetransferred,theleaseperiodisof75%oraboveoftheusefullifeoftheleasefixedassets;
4)ThecurrentvalueoftheminimumleasepaymentontheleasestartingdateoftheCompanyisequalto90%oraboveofthefairvalueoftheleasefixedassetsontheleasestartingdate;thecurrentvalueoftheminimumleasereceiptsontheleasestartingdateoftheleaserisequalto90%oraboveofthefairvalueoftheleasefixedassetsontheleasestartingdate;
5)ThenatureoftheleaseassetsisspecialthatonlytheCompanycoulduseitifnotexecutelargetransformation.Thefixedassetsbyfinanceleaseshouldtaketheloweronebetweenthefairvalueoftheleasingassetsandthecurrentvalueoftheminimumleasepaymentontheleasestartingdateastheentryvalue.Asfortheminimumleasepaymentwhichberegardedastheentryvalueofthelong-termaccountspayable,itsdifferenceshouldberegardedastheunrecognizedfinancingexpense.Fortheinitialdirectexpensesoccurintheleasenegotiationsandthesigningprocessoftheleasecontractsthatattributetothehandlingexpenses,counselfees,travelexpensesandstamptaxesoftheleaseitems,shouldbeincludedinthecharter-inassetsvalue.Theunrecognizedfinancingexpensesshouldbeamortizedbyadoptingtheactualinterestrateduringtheperiodoftheleaseterm.Thefixedassetsbyfinanceleaseshalladoptthesamedepreciationpolicyforself-ownedfixedassets.Ifitisreasonabletobecertainthatthelesseewillobtaintheownershipoftheleasedassetwhentheleasetermexpires,theleasedassetshallbefullydepreciatedoveritsusefullife.Ifitisnotreasonabletobecertainthatthelesseewillobtaintheownershipoftheleasedassetattheexpiryoftheleaseterm,theleasedassetshallbefullydepreciatedovertheshorteroneoftheleasetermoritsusefullife
18.ConstructioninProgress
(1)ValuationoftheprogressinconstructionConstructioninprogressshallbemeasuredatactualcost.Self-operatingprojectsshallbemeasuredatdirectmaterials,directwagesanddirectconstructionfees;constructioncontractshallbemeasuredatprojectpricepayable;projectcostforplantengineeringshallberecognizedatvalueofequipmentsinstalled,costofinstallation,trailrunofprojects.Costsofconstructioninprocessalsoincludeborrowingcostsandexchangegainsandlosses,whichshouldbecapitalized.
(2)StandardizationonconstructioninprocesstransferredintofixedassetsandtimepointthereofTheconstructioninprocess,ofwhichthefixedassetsreachtothepredictedconditionforuse,shallcarryforwardfixedassetsonschedule.Theonethathasnotauditedthefinalaccountingshallrecognizethecostandmakedepreciationinlinewithvaluationvalue.Theconstructioninprocessshalladjusttheoriginalvaluationvalueatitshistoricalcostbutnotadjustthedepreciationthathasbeenmadeafterauditingthefinalaccounting.
19.BorrowingCosts
(1)RecognitionprincipleofcapitalizationofborrowingcostsTheborrowingcostsshallincludetheinterestonborrowings,amortizationofdiscountsorpremiumsonborrowings,ancillaryexpenses,andexchangebalanceonforeigncurrencyborrowings.Wheretheborrowingcostsoccurredbelongtospecificallyborrowedloanorgeneralborrowingusedfortheacquisitionandconstructionofinvestmentrealestatesandinventoriesoveroneyear(includingoneyear)shallbecapitalized,andrecordintorelevantassetscost.Otherborrowingcostsshallberecognizedasexpensesonthebasisoftheactualamountincurred,andshallberecordedintothecurrentprofitsandlosses.Theborrowingcostsshallnotbecapitalizedunlesstheysimultaneouslymeetthefollowingthreerequirements:(1)Theassetdisbursementshavealreadyincurred;(2)Theborrowingcostshavealreadyincurred;and(3)Theacquisitionandconstructionorproductionactivitieswhicharenecessarytopreparetheassetforitsintendeduseorsalehavealreadystarted.
(2)TheperiodofcapitalizationofborrowingcostsTheborrowingcostsarisingfromacquisitionandconstructionoffixedassets,investmentrealestatesandinventories,iftheymeettheabove-mentionedcapitalizationconditions,thecapitalizationoftheborrowingcostsshallbemeasuredintoassetcostbeforesuchassetsreachtotheintendeduseorsale,Whereacquisitionandconstructionoffixedassets,investmentrealestatesandinventoriesisinterruptedabnormallyandtheinterruptionperiodlastsformorethan3months,thecapitalizationoftheborrowingcostsshallbesuspended,andrecordedintothecurrentexpense,tilltheacquisitionandconstructionoftheassetsrestarts.Whenthequalifiedassetisreadyfortheintendeduseorsale,thecapitalizationoftheborrowingcostsshallbeceased,theborrowingcostsoccurredlatershallbeincludedintothefinancialexpensedirectlyatthecurrentperiod.
(3)MeasurementmethodofcapitalizationamountofborrowingcostsAsforspecificallyborrowedloansfortheacquisitionandconstructionorproductionofassetseligibleforcapitalization,theto-be-capitalizedamountofinterestsshallbedeterminedinlightoftheactualcostincurredofthespeciallyborrowedloanatthepresentperiodminustheincomeofinterestsearnedontheunusedborrowingloansasadepositinthebankorasatemporaryinvestment.Whereageneralborrowingisusedfortheacquisitionandconstructionorproductionofassetseligibleforcapitalization,theenterpriseshallcalculateanddeterminetheto-be-capitalizedamountofinterestsonthegeneralborrowingbymultiplyingtheweightedaverageassetdisbursementofthepartoftheaccumulativeassetdisbursementsminusthegeneralborrowingbythecapitalizationrateofthegeneralborrowingused.Thecapitalizationrateshallbecalculatedanddeterminedinlightoftheweightedaverageinterestrateofthegeneralborrowing.
20.IntangibleAssets
(1)PricingMethod,ServiceLife,andImpairmentTest
(1)PricingmethodofintangibleassetsIntangibleassetspurchasedshouldtaketheactualpaymentandtherelevantotherexpensesastheactualcost.Fortheintangibleassetsinvestedbytheinvestorsshouldberecognizedtheactualcostaccordingtothevalueoftheinvestmentcontractsoragreements,however,forthevalueofthecontractsoragreementsisnotfair,theactualcostshouldberecognizedaccordingtothefairvalue.Fortheintangibleassetsacquiresfromtheexchangeofthenon-currencyassets,ifownthecommercialnature,shouldberecordedaccordingtothefairvalueoftheswap-outassets;forthosenotownthecommercialnature,
shouldberecordedaccordingtothebookvalueoftheswap-outassets.Fortheintangibleassetsacquiresfromthedebtsreorganizationshouldberecognizedbythefairvalue.
(2)AmortizationmethodandtermofintangibleassetsAsfortheintangibleassetswithlimitedservicelife,whichareamortizedbystraight-linemethodwhenitisavailableforusewithintheserviceperiod,shallberecordedintothecurrentprofitsandlosses.TheCompanyshall,atleastattheendofeachyear,checktheservicelifeandtheamortizationmethodofintangibleassetswithlimitedservicelife.Whentheservicelifeandtheamortizationmethodofintangibleassetsaredifferentfromthosebefore,theyearsandmethodoftheamortizationshallbechanged.Intangibleassetswithuncertainservicelifemaynotbeamortized.However,theCompanyshallchecktheservicelifeofintangibleassetswithuncertainservicelifeduringeachaccountingperiod.Wherethereareevidencestoprovetheintangibleassetshavelimitedservicelife,itshallbeestimatedofitsservicelife,andbeamortizedaccordingtotheabovemethodmentioned.TherightstouselandoftheCompanyshallbeamortizedaccordingtotherestservicelife.
(2)AccountingPolicesofInternalR&DExpensesTheinternalresearchanddevelopmentprojectsofanenterpriseshallbeclassifiedintoresearchphaseanddevelopmentphase:theterm“research”referstothecreativeandplannedinvestigationtoacquireandunderstandnewscientificortechnologicalknowledge;theterm“development”referstotheapplicationofresearchachievementsandotherknowledgetoacertainplanordesign,priortothecommercialproductionoruse,soastoproduceanynewmaterial,deviceorproduct,orsubstantiallyimprovedmaterial,deviceandproduct.TheCompanycollectstheexpensesofthecorrespondingphasesaccordingtotheabovestandardofclassifyingtheresearchphaseandthedevelopmentphase.Theresearchexpendituresforitsinternalresearchanddevelopmentprojectsofanenterpriseshallberecordedintotheprofitorlossforthecurrentperiod.Thedevelopmentexpendituresforitsinternalresearchanddevelopmentprojectsofanenterprisemaybecapitalizedwhentheysatisfythefollowingconditionssimultaneously:itisfeasibletechnicallytofinishintangibleassetsforuseorsale;itisintendedtofinishanduseorselltheintangibleassets;theusefulnessofmethodsforintangibleassetstogenerateeconomicbenefitsshallbeproved,includingbeingabletoprovethatthereisapotentialmarketfortheproductsmanufacturedbyapplyingtheintangibleassetsorthereisapotentialmarketfortheintangibleassetsitselfortheintangibleassetswillbeusedinternally;itisabletofinishthedevelopmentoftheintangibleassets,andabletouseorselltheintangibleassets,withthesupportofsufficienttechnologies,financialresourcesandotherresources;thedevelopmentexpendituresoftheintangibleassetscanbereliablymeasured.
21.ImpairmentofLong-termAssetsFornon-currentfinancialAssetsoffixedAssets,projectsunderconstruction,intangibleAssetswithlimitedservicelife,investingrealestatewithcostmodel,long-termequityinvestmentofsubsidiaries,cooperativeenterprisesandjointventures,theGroupshouldjudgewhetherdecreaseinvalueexistsonthedateofbalancesheet.Recoverableamountsshouldbetestedfordecreaseinvalueifitexists.OtherintangibleAssetsofreputationanduncertainservicelifeandothernon-accessibleintangibleassetsshouldbetestedfordecreaseinvaluenomatterwhetheritexists.Iftherecoverableamountislessthanbookvalueinimpairmenttestresults,theprovisionforimpairmentofdifferencesshouldincludeinimpairmentloss.Recoverableamountswouldbethehigherofnetvalueofassetfairvaluedeductingdisposalchargesorpresentvalueofpredictedcashflow.Assetfairvalueshouldbedetermined
accordingtonegotiatedsalespriceoffairtrade.Ifnosalesagreementexistsbutwithassetactivemarket,fairvalueshouldbedeterminedaccordingtotheBuyer’spriceoftheasset.Ifnosalesagreementorassetactivemarketexists,assetfairvaluecouldbeacquiredonthebasisofbestinformationavailable.Disposalexpensesincludelegalfees,taxes,cartageorotherdirectexpensesofmerchantableAssetsrelatedtoassetdisposal.PresentvalueofpredictedassetcashflowshouldbedeterminedbytheproperdiscountrateaccordingtoAssetsinserviceandpredictedcashflowoffinaldisposal.AssetdepreciationreservesshouldbecalculatedonthebasisofsingleAssets.IfitisdifficulttopredicttherecoverableamountsforsingleAssets,recoverableamountsshouldbedeterminedaccordingtothebelongingassetgroup.Assetgroupistheminimumassetcombinationproducingcashflowindependently.Inimpairmenttest,bookvalueofthebusinessreputationinfinancialreportshouldbesharedtobeneficialassetgroupandassetgroupcombinationincollaborationofbusinessmerger.Itisshowninthetestthatifrecoverableamountsofsharedbusinessreputationassetgrouporassetgroupcombinationarelowerthanbookvalue,itshoulddeterminetheimpairmentloss.Impairmentlossamountshouldfirstlybedeductedandsharedtothebookvalueofbusinessreputationofassetgrouporassetgroupcombination,thendeductbookvalueofallassetsaccordingtoproportionsofotherbookvalueofaboveassetsinassetgrouporassetgroupcombinationexceptbusinessreputation.Aftertheassetimpairmentlossisdetermined,recoverablevalueamountswouldnotbereturnedinfuture.
22.Long-termDeferredExpensesLong-termdeferredexpansesoftheCompanyshallberecordedinlightoftheactualexpenditure,andamortizedaveragelywithinbenefitperiod.Incaseofnobenefitinthefutureaccountingperiod,theamortizedvalueofsuchprojectthatfailstobeamortizedshallbetransferredintotheprofitsandlossesofthecurrentperiod.
23.Payroll
(1)AccountingTreatmentofShort-termCompensationShort-termcompensationmainlyincludingsalary,bonus,allowancesandsubsidies,employeeservicesandbenefits,medicalinsurancepremiums,birthinsurancepremium,industrialinjuryinsurancepremium,housingfund,laborunionexpenditureandpersonneleducationfund,non-monetarybenefitsetc.Theshort-termcompensationactuallyhappenedduringtheaccountingperiodwhentheactivestaffofferingtheservicefortheGroupshouldberecognizedasliabilitiesandisincludedinthecurrentgainsandlossesorrelevantassetscost.Ofwhichthenon-monetarybenefitsshouldbemeasuredaccordingtothefairvalue.
(2)AccountingTreatmentoftheWelfareafterDemissionTheCompanyclassifiesthewelfareplansafterdemissionintodefinedcontributionplansanddefinedbenefitplans.WelfareplansafterdemissionreferstotheagreementonthewelfareafterdemissionreachesbetweentheCompanyandtheemployees,ortheregulationsormethodsformulatedbytheCompanyforprovidingthewelfareafterdemissionfortheemployees.Ofwhich,definedcontributionplansreferstothewelfareplansafterdemissionthattheCompanynomoreundertakethefurtherpaymentobligationsafterthepaymentofthefixedexpensesfortheindependentfunds;definedbenefitplans,referstothewelfareplansafterdemissionexceptforthedefinedcontributionplans.Definedcontributionplans
DuringtheaccountingperiodthattheCompanyprovidingtheservicefortheemployees,theCompanyshouldrecognizetheliabilitiesaccordingtothedepositedamountcalculatedbydefinedcontributionplans,andshouldbeincludedinthecurrentgainsandlossesortherelevantassetscost.
(3)AccountingTreatmentoftheDemissionWelfareTheCompanyshouldrecognizethepayrollpaymentliabilitiesoccurfromthedemissionwelfareaccordingtotheearlierdatebetweenthefollowingtwoconditionsandincludewhichinthecurrentgainsandlosseswhenprovidingthedemissionwelfarefortheemployees:theCompanycouldnotunilaterallywithdrawthedemissionwelfareowningtotherelieveplansofthelaborrelationshiporreduction;whentheCompanyrecognizingthecostsorexpensesrelatedtothereorganizationinvolveswiththedemissionwelfarepayments.
(4)AccountingTreatmentofOtherLong-termWelfareforStaffNaught
24.Provisions
(1)CriteriaofestimatedliabilitiesOnlyiftheobligationpertinenttoacontingenciesshallberecognizedasanestimateddebtswhenthefollowingconditionsaresatisfiedsimultaneously:
1)ThatobligationisacurrentobligationoftheCompany;
2)ItislikelytocauseanyeconomicbenefittoflowoutoftheCompanyasaresultofperformanceoftheobligation;
3)Theamountoftheobligationcanbemeasuredinareliableway.
(2)MeasurementofestimatedliabilitiesTheCompanyshallmeasuretheestimateddebtsinaccordancewiththebestestimateofthenecessaryexpensesfortheperformanceofthecurrentobligation.TheCompanyshallcheckthebookvalueoftheestimateddebtsontheBalanceSheetDate.Ifthereisanyconclusiveevidenceprovingthatthesaidbookvaluecan’ttrulyreflectthecurrentbestestimate,theCompanyshall,subjecttochange,makeadjustmenttocarryingvaluetoreflectthecurrentbestestimate.
25.RevenueIstheCompanysubjecttoanydisclosurerequirementsforspecialindustries?NoHasimplementednewstandardsgoverningrevenueornot
□Yes√No
(1)Recognitionofrevenuefromsaleofgoods:therevenuefromsellingshallberecognizedbythefollowingconditions:ThesignificantrisksandrewardsofownershipofthegoodshavebeentransferredtothebuyerbytheCompany;theCompanyretainsneithercontinuousmanagementrightthatusuallykeepsrelationwiththeownershipnoreffectivecontroloverthesoldgoods;therelevantamountofrevenuecanbemeasuredinareliable
way;therelevantrevenueandcostsofsellinggoodscanbemeasuredinareliableway.Theamountoftherevenuefromsellingshallascertaintherevenueincurredbysellinggoodsinaccordancewiththereceivedorreceivablepricestipulatedinthecontractoragreementsignedbetweentheenterpriseandthebuyer,unlessthereceivedorreceivableamountasstipulatedinthecontractoragreementisunfair.
(2)Recognitionofrevenuefromprovidinglaborservices:Whenthetotalrevenueandcostsfromprovidinglaborcanbemeasuredinareliableway;therelevanteconomicbenefitsarelikelytoflowintotheenterprise;thescheduleofcompletionunderthetransactioncanbemeasuredinareliableway,therevenuefromprovidinglaborshallberecognized.IftheCompanycanreliablyestimatetheoutcomeofatransactionconcerningthelaborservicesitprovides,itshallrecognizetherevenuefromprovidingservicesemployingthepercentage-of-completionmethodonthedateofthebalancesheet,otherwisetherevenuefromtheprovidingoflaborservicesshallberecognizedinaccordancewiththeamountofthecostoflaborservicesincurredandexpectedtobecompensated.TheCompanyrecognizedthecompletionprocessofthetransactionconcerningthelaborservicesaccordingtotheproportionoftheoccurredcostoftheestimatedtotalcost.Thetotalamountoftherevenuefromprovidingservicesshouldberecognizedaccordingtothecontractpricereceivedorreceivablefromtheacceptingofthelaborservicesortheagreementpriceexceptforthoseunfairprices.
(3)Recognitionoftherevenuefromtransferringuserightsofassets:Whentherelevanteconomicbenefitsarelikelytoflowintotheenterprisesandtheamountofrevenuescanbemeasuredinareliableway,therevenuefromabalienatingtherighttouseassetsshallberecognized.Theamountofinterestrevenueshouldbemeasuredandconfirmedinaccordancewiththelengthoftimeforwhichtheenterprise'scashisusedbyothersandtheactualinterestrate;theamountofroyaltyrevenueshouldbemeasuredandconfirmedinaccordancewiththeperiodandmethodofchargingasstipulatedintherelevantcontractoragreement;asfortherentalrevenue:theamountoftherentalrevenuefromtheoperationleaseshouldberecognizedaccordingtothestraight-linemethodduringeachperiodoftheleasetermoraccruedintothecurrentgainsandlossesifrentalactualoccurred.
26.GovernmentSubsidies
(1)TypeAgovernmentsubsidymeansthemonetaryornon-monetaryassetsobtainedfreebyanenterprisefromthegovernment.Governmentsubsidiesconsistofthegovernmentsubsidiespertinenttoassetsandgovernmentsubsidiespertinenttoincomeaccordingtotherelevantgovernmentdocuments.Forthosethegovernmentdocumentsnotdefinitestipulatetheassistanceobject,thejudgmentbasisoftheCompanyclassifiesthegovernmentsubsidiespertinenttoassetsandgovernmentsubsidiespertinenttoincomeis:
whetherareusedforpurchasingorconstructingorforformingthelong-termassetsbyothermethods.
(2)RecognitionofGovernmentSubsidiesThegovernmentsubsidiesshouldberecognizedonlywhenmeetwiththeattachedconditionsofthegovernmentsubsidiesaswellascouldbeacquired.Ifthegovernmentsubsidiesarethemonetaryassets,shouldbemeasuredaccordingtothereceivedorreceivableamount;andforthegovernmentsubsidiesarethenon-monetaryassets,shouldbemeasuredbyfairvalue.
(3)AccountingTreatmentThegovernmentsubsidiespertinenttoassetsshallberecognizedasdeferredincome,andincludedinthecurrentgainsandlossesoroffsetthebookvalueofrelatedassetswithintheusefullivesoftherelevantassetswithareasonableandsystematicmethod.Governmentsubsidiespertinenttoincomeusedtocompensatetherelevantcosts,expensesorlossesoftheCompanyinthesubsequentperiodshallberecognizedasdeferredincome,andshallbeincludedinthecurrentprofitandlossduringtheperiodofconfirmingtherelevantcosts,expensesorlosses;thoseusedtocompensatetherelevantcosts,expensesorlossesoftheCompanyalreadyhappenedshallbeincludedinthecurrentgainsandlossesorusedtooffsetrelevantcostsdirectly.Forgovernmentsubsidiesthatincludebothassets-relatedandincome-relatedparts,theyshouldbedistinguishedseparatelyforaccountingtreatment;forgovernmentsubsidiesthataredifficulttobedistinguished,theyshouldbeclassifiedasincome-related.GovernmentsubsidiesrelatedtothedailyactivitiesoftheCompanyshallbeincludedintootherincomeorusedtooffsetrelevantcostsbythenatureofeconomicbusiness;thoseunrelatedshallbeincludedintonon-operatingincome.Thegovernmentsubsidiesrecognizedwithrelevantdeferredincomebalancebutneedtoreturnshallbeusedtooffsetthebookbalanceofrelevantdeferredincome,theexcessivepartshallbeincludedinthecurrentgainsandlossesoradjustingthebookvalueofassetsforthegovernmentsubsidiesassets-relatedthatoffsetthebookvalueofrelevantassetswhentheyareinitiallyrecognized;thosebelongtoothercasesshallbedirectlyincludedinthecurrentgainsandlosses.
27.DeferredIncomeTaxAssets/DeferredIncomeTaxLiabilities
(1)BasisofrecognizingthedeferredincometaxassetsAccordingtothedifferencebetweenthebookvalueoftheassetsandliabilitiesandtheirtaxbasis,Adeferredtaxassetsshallbemeasuredinaccordwiththetaxratesthatareexpectedtoapplytotheperiodwhentheassetisrealizedortheliabilityissettled.TherecognitionofthedeferredincometaxassetsislimitedbytheincometaxpayablethattheCompanyprobablygainsfordeductingthedeductibletemporarydifferences.Atthebalancesheetdate,wherethereisstrongevidenceshowingthatsufficienttaxableprofitwillbeavailableagainstwhichthedeductibletemporarydifferencecanbeutilized,thedeferredtaxassetunrecognizedinpriorperiodshallberecognized.TheCompanyassessesthecarryingamountofdeferredtaxassetatthebalancesheetdate.Ifit’sprobablethatsufficienttaxableprofitwillnotbeavailableagainstwhichthedeductibletemporarydifferencecanbeutilized,theCompanyshallwritedownthecarryingamountofdeferredtaxasset,orreversetheamountwrittendownlaterwhenit’sprobablethatsufficienttaxableprofitwillbeavailable.
(2)BasisofrecognizingthedeferredincometaxliabilitiesAccordingtothedifferencebetweenthebookvalueoftheassetsandliabilitiesandtheirtaxbasis,Adeferredtaxliabilitiesshallbemeasuredinaccordwiththetaxratesthatareexpectedtoapplytotheperiodwhentheassetisrealizedortheliabilityissettled.
28.Lease
(1)AccountingTreatmentofOperatingLeaseLesseeinanoperatingleaseshalltreattheleasepaymentunderanoperatingleaseasarelevantassetcostorthecurrentprofitorlossonastraight-linebasisovertheleaseterm.Theinitialdirectcostsincurredshallbe
recognizedasthecurrentprofitorloss;Contingentrentsshallbechargedasexpensesintheperiodsinwhichtheyareincurred.Lessorsinanoperatingleaseshallberecognizedasthecurrentprofitorlossonastraight-linebasisovertheleaseterm;Initialdirectcostsincurredbylessorsshallberecognizedasthecurrentprofitorloss;theinitialdirectexpensesoccurshouldbedirectlyincludedinthecurrentgainsandlossesexceptforthosewithlargeramountandbecapitalizedaswellasbeincludedinthegainsandlossesbystages.Contingentrentsshallbechargedasexpensesintheperiodsinwhichtheyareincurred.
(2)AccountingTreatmentsofFinancialLeaseWhentheCompanyasthelessee,Ontheleasebeginningdate,theCompanyshallrecordtheloweroneofthefairvalueoftheleasedassetandthepresentvalueoftheminimumleasepaymentsontheleasebeginningdateastheenteringvalueinanaccount,recognizetheamountoftheminimumleasepaymentsastheenteringvalueinanaccountoflong-termaccountpayable,andtreatthebalancebetweentherecordedamountoftheleasedassetandthelong-termaccountpayableasunrecognizedfinancingchargesandtheoccurredinitialdirectexpenses,shouldberecordedintheleaseassetsvalue.Duringeachleaseperiod,shouldrecognizethecurrentfinancingexpensesbyadoptingtheactualinterestrate.WhentheCompanyastheleasorandonthebeginningdateoftheleaseterm,theCompanyshallrecognizethesumoftheminimumleasereceiptsontheleasebeginningdateandtheinitialdirectcostsastheenteringvalueinanaccountofthefinancingleasevaluesreceivable,andrecordtheunguaranteedresidualvalueatthesametime.Thebalancebetweenthesumoftheminimumleasereceipts,theinitialdirectcostsandtheunguaranteedresidualvalueandthesumoftheirpresentvaluesshallberecognizedasunrealizedfinancingincome.Duringeachleaseperiod,shouldrecognizethecurrentfinancingrevenuesadoptingtheactualinterestrate.
29.OtherSignificantAccountingPoliciesandEstimates
(1)OperationterminationOperationterminationreferstothecomposepartthatmeetwithoneofthefollowingconditionswhichhadbeendisposedbytheGrouporbeclassifiedtoheld-to-soldaswellascouldbeindividuallydistinguishedinoperatingandcompilingthefinancialstatement:
1)Thecomposepartrepresentsanindividualmainbusinessoramainoperationarea;
2)Thecomposepartisapartintendstodisposeandplananindividualmainbusinessoramainoperationarea;
3)Thecomposepartisasubsidiarywhichbeacquiredonlyforresold.
(2)HedgingaccountingTheterm“hedging”referstooneormorehedginginstrumentswhicharedesignatedbyanenterpriseforavoidingtherisksofforeignexchange,interestrate,commodityprice,stockprice,creditandetc.,andwhichisexpectedtomakethechangesinfairvalueorcashflowofhedginginstrument(s)tooffsetallorpartofthechangesinthefairvalueorcashflowofthehedgeditem.Theterm“hedginginstrument”shallrefertoaderivativeinstrumentwhichisdesignatedbyanenterpriseforhedgingandbywhichitisexpectedthatchangesinitsfairvalueorcashflowcanoffsetthechangesinfairvalueorcashflowofthehedgeditem.Forahedgingofforeignexchangerisk,anon-derivativefinancialassetornon-derivativefinancialliabilitymaybeusedasahedginginstrument.The“hedgeditem”shallrefertothefollowingitemswhichmakeanenterprisefacedtochangesinfairvalueorcashflowandaredesignatedasthehedgedobjectives.
Thehedgingshouldbeexecutedbythehedgingaccountingmethodswhensatisfyingthefollowingconditionsatthesametime:
1)Atthecommencementofthehedging,theenterpriseshallspecifythehedgingrelationshipformally(namelytherelationshipbetweenthehedginginstrumentandthehedgeditem)andprepareaformalwrittendocumentonthehedgingrelationship,riskmanagementobjectivesandthestrategiesofhedging.
2)Thehedgingexpectationishighlyefficientandmeetstheriskmanagementstrategy,whichisconfirmedforthehedgingrelationshipbyenterpriseattheverybeginning.
3)Foracashflowhedgingofforecasttransaction,theforecasttransactionshallbelikelytooccurandshallmaketheenterprisefacedtotheriskofchangesincashflow,whichwillultimatelyaffecttheprofitsandlosses.
4)Theeffectivenessofhedgingcanbereliablymeasured.
5)Thehedgingishighlyeffectiveinaccountingperiodinwhichthehedgingrelationshipisspecified.
30.ChangesinMainAccountingPoliciesandEstimates
(1)ChangeofAccountingPolicies
√Applicable□Notapplicable
Changestotheaccountingpoliciesandwhy | Approvalprocess | Remark |
TheNoticeonRevisingandIssuingtheFormatsof2019FinancialStatementsforGeneralEnterprisesissuedbytheMinistryofFinanceon30April2019requiresthecompanieswhichhaveimplementedthenewstandardsgoverningfinancialinstrumentsbutnotthenewstandardsgoverningrevenueandleaseorcompanieswhichhaveimplementedthenewstandardsgoverningfinancialinstrumentsandrevenuebutnotthenewstandardsgoverningleasetoadjustitemsoffinancialstatementsinlinewithrequirementsinAppendix1andAppendix2ofthisNotice. | On27August2019,theCompanyheldthe20thMeetingofthe8thBoardofDirectorsandthe16thMeetingofthe8thSupervisoryCommitteeandapprovedtheProposalonChangesofSomeAccountingPolicies | Referto(1)ofothernotesfordetails |
TheCompanystartstoimplementtheAccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstruments,AccountingStandardsforBusinessEnterprisesNo.23-TransferofFinancialAssets,AccountingStandardsforBusinessEnterprisesNo.24-HedgeAccountingandAccountingStandardsforBusinessEnterprisesNo.37-PresentationofFinancialInstruments,whichrevisedandissuedbytheMinistryofFinanceinMarch2017andhereinaftercollectivelyreferredtoasnewstandardsgoverningfinancialinstrumentssince1January2019whichstipulatethatthecompanyshallclassifyandmeasurefinancialinstrumentsinaccordancewithregulationsontheexecutiondate,whenthedataofcomparative | On9April2019,theCompanyheldthe17thMeetingofthe8thBoardofDirectorsand13thMeetingofthe8thSupervisoryCommitteeandapprovedtheProposalonChangesinSomeAccountingPolicies | Referto(2)ofothernotesfordetails |
Othernotes:
(1)InfluenceofChangesinFormatsofFinancialstatementsAffecteditemsintheconsolidatedbalancesheetandamountthereof:
financialstatementsofprioryearsdonotcomplywiththenewstandards,noadjustmentismadebytheCompany.
31December2018
31December2018 | 1January2019 | ||
Notesreceivableandaccountsreceivable | 874,229,941.58 | Notesreceivable | 495,370,782.47 |
Accountsreceivable | 378,859,159.11 | ||
Notespayableandaccountspayable | 1,030,130,275.77 | Notespayable | 438,375,400.00 |
Accountspayable | 591,754,875.77 |
AffecteditemsinthebalancesheetoftheCompanyastheparentandamountthereof:
31December2018 | 1January2019 | ||
Notesreceivableandaccountsreceivable | 790,877,079.72 | Notesreceivable | 490,519,795.91 |
Accountsreceivable | 300,357,283.81 | ||
Notespayableandaccountspayable | 987,550,797.44 | Notespayable | 425,995,400.00 |
Accountspayable | 561,555,397.44 |
(2)InfluenceofExecutionofNewStandardsGoverningFinancialInstrumentsAffecteditemsintheconsolidatedbalancesheetandamountthereof:
Item | 31December2018 | Affectedamount | 1January2019 | |
Affectedbyclassificationandmeasurement | Affectedbyimpairmentoffinancialassets | |||
Available-for-salefinancialassets | 498,851,369.49 | -498,851,369.49 | ||
Otherinvestmentsinequityinstruments | 498,851,369.49 | 498,851,369.49 |
AffecteditemsinthebalancesheetoftheCompanyastheparentandamountthereof:
Item | 31December2018 | Affectedamount | 1January2019 | |
Affectedbyclassificationandmeasurement | Affectedbyimpairmentoffinancialassets | |||
Available-for-salefinancialassets | 470,940,000.00 | -470,940,000.00 | ||
Otherinvestmentsinequityinstruments | 470,940,000.00 | 470,940,000.00 |
(2)ChangesinAccountingEstimates
□Applicable√Notapplicable
(3)AdjustmentstotheFinancialStatementsattheBeginningoftheFirstExecutionYearofanyNewStandardsGoverningFinancialInstruments,RevenueorLeases
√Applicable□NotapplicableConsolidatedBalanceSheet
Unit:RMB
Item | 31December2018 | 1January2019 | Adjusted |
Currentassets: | |||
Monetarycapital | 800,960,036.69 | 800,960,036.69 | |
Settlementreserve | |||
Interbankloansgranted | |||
Tradingfinancialassets | |||
Financialassetsatfairvaluethroughprofitorloss | |||
Derivativefinancialassets | |||
Notesreceivable | 495,370,782.47 | 495,370,782.47 | |
Accountsreceivable | 378,859,159.11 | 378,859,159.11 | |
Financingbackedbyaccountsreceivable | |||
Prepayments | 11,352,297.10 | 11,352,297.10 | |
Premiumsreceivable | |||
Reinsurancereceivables | |||
Receivablereinsurancecontractreserve | |||
Otherreceivables | 9,244,584.42 | 9,244,584.42 | |
Including:Interestreceivable | |||
Dividendsreceivable | |||
Financialassetspurchasedunderresaleagreements | |||
Inventories | 557,953,891.70 | 557,953,891.70 | |
Contractassets | |||
Assetsclassifiedasheldforsale | |||
Currentportionofnon-currentassets | |||
Othercurrentassets | 34,357,608.97 | 34,357,608.97 | |
Totalcurrentassets | 2,288,098,360.46 | 2,288,098,360.46 | |
Non-currentassets: | |||
Loansandadvancestocustomers | |||
Investmentsindebtobligations |
Available-for-salefinancialassets | 498,851,369.49 | -498,851,369.49 | |
Investmentsinotherdebtobligations | |||
Held-to-maturityinvestments | |||
Long-termreceivables | |||
Long-termequityinvestments | |||
Investmentsinotherequityinstruments | 498,851,369.49 | 498,851,369.49 | |
Othernon-currentfinancialassets | |||
Investmentproperty | |||
Fixedassets | 50,656,007.63 | 50,656,007.63 | |
Constructioninprogress | 511,250,371.37 | 511,250,371.37 | |
Productivelivingassets | 89,090,384.71 | 89,090,384.71 | |
Oilandgasassets | |||
Right-of-useassets | |||
Intangibleassets | 103,092,879.38 | 103,092,879.38 | |
R&Dexpense | |||
Goodwill | |||
Long-termprepaidexpense | |||
Deferredincometaxassets | 979,822.71 | 979,822.71 | |
Othernon-currentassets | |||
Totalnon-currentassets | 1,253,920,835.29 | 1,253,920,835.29 | |
Totalassets | 3,542,019,195.75 | 3,542,019,195.75 | |
Currentliabilities: | |||
Short-termborrowings | 27,000,000.00 | 27,000,000.00 | |
Borrowingsfromcentralbank | |||
Interbankloansobtained | |||
Tradingfinancialliabilities | |||
Financialliabilitiesatfairvaluethroughprofitorloss | |||
Derivativefinancialliabilities | |||
Notespayable | 438,375,400.00 | 438,375,400.00 | |
Accountspayable | 591,754,875.77 | 591,754,875.77 | |
Advancesfromcustomers | 34,500,232.97 | 34,500,232.97 | |
Financialassetssoldunderrepurchaseagreements | |||
Customerdepositsandinterbankdeposits |
Payablesforactingtradingofsecurities | ||
Payablesforunderwritingofsecurities | ||
Payrollpayable | 50,500,592.99 | 50,500,592.99 |
Taxespayable | 7,066,085.89 | 7,066,085.89 |
Otherpayables | 199,412,250.90 | 199,412,250.90 |
Including:Interestpayable | ||
Dividendspayable | 3,891,433.83 | 3,891,433.83 |
Handlingchargesandcommissionspayable | ||
Reinsurancepayables | ||
Contractliabilities | ||
Liabilitiesdirectlyassociatedwithassetsclassifiedasheldforsale | ||
Currentportionofnon-currentliabilities | 18,500,000.00 | 18,500,000.00 |
Othercurrentliabilities | 2,082,985.18 | 2,082,985.18 |
Totalcurrentliabilities | 1,369,192,423.70 | 1,369,192,423.70 |
Non-currentliabilities: | ||
Insurancecontractreserve | ||
Long-termborrowings | 2,000,000.00 | 2,000,000.00 |
Bondspayable | ||
Including:Preferredshares | ||
Perpetualbonds | ||
Leaseliabilities | ||
Long-termpayables | ||
Long-termpayrollpayable | ||
Provisions | ||
Deferredincome | 59,928,484.84 | 59,928,484.84 |
Deferredincometaxliabilities | 47,971,780.36 | 47,971,780.36 |
Othernon-currentliabilities | ||
Totalnon-currentliabilities | 109,900,265.20 | 109,900,265.20 |
Totalliabilities | 1,479,092,688.90 | 1,479,092,688.90 |
Owners’equity: | ||
Sharecapital | 561,374,326.00 | 561,374,326.00 |
Otherequityinstruments | ||
Including:Preferredshares | ||
Perpetualbonds |
Capitalreserves | 164,328,665.43 | 164,328,665.43 |
Less:Treasurystock | ||
Othercomprehensiveincome | 264,405,675.00 | 264,405,675.00 |
Specificreserve | 15,182,958.83 | 15,182,958.83 |
Surplusreserves | 320,133,050.15 | 320,133,050.15 |
Generalreserve | ||
Retainedearnings | 717,883,351.33 | 717,883,351.33 |
TotalequityattributabletoownersoftheCompanyastheparent | 2,043,308,026.74 | 2,043,308,026.74 |
Non-controllinginterests | 19,618,480.11 | 19,618,480.11 |
Totalowners’equity | 2,062,926,506.85 | 2,062,926,506.85 |
Totalliabilitiesandowners’equity | 3,542,019,195.75 | 3,542,019,195.75 |
NoteforadjustmentBalanceSheetoftheCompanyastheParent
Unit:RMB
Item | 31December2018 | 1January2019 | Adjusted |
Currentassets: | |||
Monetarycapital | 759,404,219.72 | 759,404,219.72 | |
Tradingfinancialassets | |||
Financialassetsatfairvaluethroughprofitorloss | |||
Derivativefinancialassets | |||
Notesreceivable | 490,519,795.91 | 490,519,795.91 | |
Accountsreceivable | 300,357,283.81 | 300,357,283.81 | |
Financingsbackedbyaccountsreceivable | |||
Prepayments | 4,768,038.11 | 4,768,038.11 | |
Otherreceivables | 21,681,331.85 | 21,681,331.85 | |
Including:Interestreceivable | |||
Dividendsreceivable | |||
Inventories | 437,423,195.46 | 437,423,195.46 | |
Contractassets | |||
Assetsclassifiedasheldforsale | |||
Currentportionofnon-currentassets | |||
Othercurrentassets | 23,099,858.67 | 23,099,858.67 | |
Totalcurrentassets | 2,037,253,723.53 | 2,037,253,723.53 |
Non-currentassets: | |||
Investmentsindebtobligations | |||
Available-for-salefinancialassets | 470,940,000.00 | -470,940,000.00 | |
Investmentsinotherdebtobligations | |||
Held-to-maturityinvestments | |||
Long-termreceivables | |||
Long-termequityinvestments | 241,752,730.03 | 241,752,730.03 | |
Investmentsinotherequityinstruments | 470,940,000.00 | 470,940,000.00 | |
Othernon-currentfinancialassets | |||
Investmentproperty | 50,656,007.63 | 50,656,007.63 | |
Fixedassets | 413,186,680.19 | 413,186,680.19 | |
Constructioninprogress | 87,007,215.91 | 87,007,215.91 | |
Productivelivingassets | |||
Oilandgasassets | |||
Right-of-useassets | |||
Intangibleassets | 72,184,608.63 | 72,184,608.63 | |
R&Dexpense | |||
Goodwill | |||
Long-termprepaidexpense | |||
Deferredincometaxassets | 930,641.19 | 930,641.19 | |
Othernon-currentassets | |||
Totalnon-currentassets | 1,336,657,883.58 | 1,336,657,883.58 | |
Totalassets | 3,373,911,607.11 | 3,373,911,607.11 | |
Currentliabilities: | |||
Short-termborrowings | 10,000,000.00 | 10,000,000.00 | |
Tradingfinancialliabilities | |||
Financialliabilitiesatfairvaluethroughprofitorloss | |||
Derivativefinancialliabilities | |||
Notespayable | 425,995,400.00 | 425,995,400.00 | |
Accountspayable | 561,555,397.44 | 561,555,397.44 | |
Advancesfromcustomers | 32,072,387.55 | 32,072,387.55 | |
Contractliabilities | |||
Payrollpayable | 43,597,759.22 | 43,597,759.22 | |
Taxespayable | 2,443,767.89 | 2,443,767.89 |
Otherpayables | 185,022,961.56 | 185,022,961.56 |
Including:Interestpayable | ||
Dividendspayable | 3,243,179.97 | 3,243,179.97 |
Liabilitiesdirectlyassociatedwithassetsclassifiedasheldforsale | ||
Currentportionofnon-currentliabilities | 18,500,000.00 | 18,500,000.00 |
Othercurrentliabilities | ||
Totalcurrentliabilities | 1,279,187,673.66 | 1,279,187,673.66 |
Non-currentliabilities: | ||
Long-termborrowings | ||
Bondspayable | ||
Including:Preferredshares | ||
Perpetualbonds | ||
Leaseliabilities | ||
Long-termpayables | ||
Long-termpayrollpayable | ||
Provisions | ||
Deferredincome | 59,928,484.84 | 59,928,484.84 |
Deferredincometaxliabilities | 46,659,825.00 | 46,659,825.00 |
Othernon-currentliabilities | ||
Totalnon-currentliabilities | 106,588,309.84 | 106,588,309.84 |
Totalliabilities | 1,385,775,983.50 | 1,385,775,983.50 |
Owners’equity: | ||
Sharecapital | 561,374,326.00 | 561,374,326.00 |
Otherequityinstruments | ||
Including:Preferredshares | ||
Perpetualbonds | ||
Capitalreserves | 183,071,147.70 | 183,071,147.70 |
Less:Treasurystock | ||
Othercomprehensiveincome | 264,405,675.00 | 264,405,675.00 |
Specificreserve | 15,182,958.83 | 15,182,958.83 |
Surplusreserves | 320,133,050.15 | 320,133,050.15 |
Retainedearnings | 643,968,465.93 | 643,968,465.93 |
Totalowners’equity | 1,988,135,623.61 | 1,988,135,623.61 |
Totalliabilitiesandowners’equity | 3,373,911,607.11 | 3,373,911,607.11 |
Noteforadjustment
(4)RetroactiveAdjustmentstoComparativeDataofPriorYearswhenFirstExecutionofanyNewStandardsGoverningFinancialInstrumentsorLeases
□Applicable√NotapplicableVI.Taxation
1.MainTaxesandTaxRate
Categoryoftaxes | Taxbasis | Taxrate |
VAT | Payabletosalesrevenue | 17%,16%,13%,11%,10%,6% |
Urbanmaintenanceandconstructiontax | Taxableturnoveramount | Taxpaidinaccordancewiththetaxregulationsoftaxunitslocation |
Enterpriseincometax | Taxableincome | 25%or15%or5% |
Educationsurcharge | Taxableturnoveramount | 5% |
Notesofthedisclosuresituationofthetaxpayingbodieswithdifferententerprisesincometaxrate
Name | Incometaxrate |
ChangzhouHoushengInvestmentCo.,Ltd. | 5% |
ChangchaiCo.,Ltd. | 15% |
ChangchaiWanzhouDieselEngineCo.,Ltd. | 15% |
ChangzhouChangchaiBenniuDieselEngineFittingsCo.,Ltd. | 25% |
ChangzhouChangchaiHoushengAgriculturalEquipmentCo.,Ltd. | 25% |
ChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd. | 25% |
JiangsuChangchaiMachineryCo.,Ltd. | 25% |
2.TaxPreferenceIn2018,theCompanyhasbeenidentifiedasHigh-techEnterprises,therefore,itenjoys15-percentpreferentialrateforcorporateincometax;theCompany’scontrollingsubsidiary—ChangchaiWanzhouDieselEngineCo.,Ltd.,thecontrollingsubsidiarycompany,shallpaythecorporateincometaxattaxrate15%from1January2011to31December2020inaccordancewiththeNoticeoftheMinistryofFinance,theGeneralAdministrationofCustomsofPRCandtheNationalAdministrationofTaxationaboutthePreferentialTaxPoliciesfortheWesternDevelopment.Changzhouhoushenginvestmentco.,LTD.,aholdingsubsidiary,willcollectenterpriseincometaxatareducedrateof5%fromJanuary1,2019solsticeonDecember31,2021accordingtothenoticeofimplementingthepreferentialtaxreductionandexemptionpolicyforsmallandmicroenterprisesissuedbytheministryoffinanceandthestateadministrationoftaxation.
3.OtherVII.NotestoMajorItemsintheConsolidatedFinancialStatementsoftheCompany
1.MonetaryCapital
Unit:RMB
Item | Endingbalance | Beginningbalance |
Cashonhand | 401,268.09 | 441,363.70 |
Bankdeposits | 493,219,001.11 | 684,620,907.41 |
Othermonetarycapital | 134,862,508.92 | 115,897,765.58 |
Total | 628,482,778.12 | 800,960,036.69 |
AttheendofReportingPeriod,themonetaryfundoftheCompanyusedrestrictedlywasRMB134,862,508.92,amongwhichcashdepositofbankacceptancebillwasRMB134,862,508.92.
2.NotesReceivable
(1)NotesReceivableListedbyCategory
Unit:RMB
Item | Endingbalance | Beginningbalance |
Bankacceptancebill | 445,812,473.66 | 495,370,782.47 |
Total | 445,812,473.66 | 495,370,782.47 |
Pleaserefertotherelevantinformationofdisclosureofbaddebtprovisionofotheraccountsreceivableifadoptingthegeneralmodeofexpectedcreditlosstowithdrawbaddebtprovisionofnotesreceivable.
□Applicable√Notapplicable
(2)NotesReceivablewhichHadEndorsedbytheCompanyorhadDiscountedandhadnotDueontheBalanceSheetDateatthePeriod-end
Unit:RMB
Item | Amountofrecognitionterminationattheperiod-end | Amountofnotterminatedrecognitionattheperiod-end |
Bankacceptancebill | 412,187,005.64 | |
Total | 412,187,005.64 |
3.AccountsReceivable
(1)AccountsReceivableDisclosedbyCategory
Unit:RMB
Category | Endingbalance | Beginningbalance | ||||||||
Carryingamount | Baddebtprovision | Carryingvalue | Carryingamount | Baddebtprovision | Carryingvalue | |||||
Amount | Proportion | Amount | Withdrawalproportion | Amount | Proportion | Amount | Withdrawalproportion | |||
Accountsreceivableforwhichbaddebtprovisionseparatelyaccrued | 31,080,167.94 | 3.12% | 30,192,731.52 | 97.14% | 887,436.42 | 32,020,727.53 | 5.13% | 31,133,291.11 | 97.23% | 887,436.42 |
Ofwhich: | ||||||||||
Accountsreceivablewithsignificantsingleamountforwhichbaddebtprovisionseparatelyaccrued | 28,205,070.58 | 2.83% | 27,317,634.16 | 96.85% | 887,436.42 | 28,205,070.58 | 4.52% | 27,317,634.16 | 96.85% | 887,436.42 |
Accountsreceivablewithinsignificantsingleamountforwhichbaddebtprovisionseparatelyaccrued | 2,875,097.36 | 0.29% | 2,875,097.36 | 100.00% | 0.00 | 3,815,656.95 | 0.61% | 3,815,656.95 | 100.00% | 0.00 |
Accountsreceivablewithdrawalofbaddebtprovisionbygroup | 965,983,824.54 | 96.88% | 223,598,580.68 | 23.15% | 742,385,243.86 | 591,489,450.66 | 94.87% | 213,517,727.97 | 36.10% | 377,971,722.69 |
Ofwhich: | ||||||||||
Total | 997,063,992.48 | 100.00% | 253,791,312.20 | 25.45% | 743,272,680.28 | 623,510,178.19 | 100.00% | 244,651,019.08 | 39.24% | 378,859,159.11 |
Accountsreceivableforwhichbaddebtprovisionseparatelyaccrued:
Unit:RMB
Name | Endingbalance | |||
Carryingamount | Baddebtprovision | Withdrawalproportion | Reasonforwithdrawal | |
Customer1 | 1,902,326.58 | 1,902,326.58 | 100.00% | Difficulttorecover |
Customer2 | 1,161,700.00 | 580,850.00 | 50.00% | Expectedtodifficultlyrecover |
Customer3 | 6,215,662.64 | 6,215,662.64 | 100.00% | Difficulttorecover |
Customer4 | 2,484,497.34 | 2,177,910.92 | 87.66% | Expectedtodifficultlyrecover |
Customer5 | 3,279,100.00 | 3,279,100.00 | 100.00% | Expectedtodifficultlyrecover |
Customer6 | 2,068,377.01 | 2,068,377.01 | 100.00% | Expectedtodifficultlyrecover |
Customer7 | 5,359,381.00 | 5,359,381.00 | 100.00% | Difficulttorecover |
Customer8 | 2,584,805.83 | 2,584,805.83 | 100.00% | Difficulttorecover |
Customer9 | 1,679,109.54 | 1,679,109.54 | 100.00% | Difficulttorecover |
Customer10 | 1,470,110.64 | 1,470,110.64 | 100.00% | Expectedtodifficultlyrecover |
Other | 2,875,097.36 | 2,875,097.36 | 100.00% | Expectedtodifficultlyrecover |
Total | 31,080,167.94 | 30,192,731.52 | -- | -- |
Accountsreceivablewithdrawalofbaddebtprovisionbygroup:
Unit:RMB
Aging | Endingbalance | ||
Carryingamount | Baddebtprovision | Withdrawalproportion | |
Subtotalofwithin1year | 721,064,680.68 | 14,421,293.61 | 2.00% |
1to2years | 25,520,630.47 | 1,276,031.52 | 5.00% |
2to3years | 9,204,859.37 | 1,380,728.91 | 15.00% |
3to4years | 4,527,490.28 | 1,358,247.08 | 30.00% |
4to5years | 1,259,710.47 | 755,826.28 | 60.00% |
Over5years | 204,406,453.27 | 204,406,453.27 | 100.00% |
Total | 965,983,824.54 | 223,598,580.68 | -- |
Notesofthebasisofrecognizingthegroup:
Pleaserefertotherelevantinformationofdisclosureofbaddebtprovisionofotheraccountsreceivableifadoptingthegeneralmodeofexpectedcreditlosstowithdrawbaddebtprovisionofaccountsreceivable.
□Applicable√NotapplicableDisclosurebyaging
Unit:RMB
Aging | Endingbalance |
Within1year(including1year) | 721,064,680.68 |
1to2years | 25,520,630.47 |
2to3years | 9,204,859.37 |
Over3years | 241,273,821.96 |
3to4years | 4,527,490.28 |
4to5years | 2,421,410.47 |
Over5years | 234,324,921.21 |
Total | 997,063,992.48 |
(2)BadDebtProvisionWithdrawn,ReversedorRecoveredintheReportingPeriodInformationofwithdrawalofbaddebtprovision:
Unit:RMB
Item | Beginningbalance | ChangesintheReportingPeriod | Endingbalance | ||
Withdrawal | Reversalorrecovery | Write-off | |||
Baddebtprovision | 244,651,019.08 | 9,140,293.12 | 253,791,312.20 | ||
Total | 244,651,019.08 | 9,140,293.12 | 253,791,312.20 |
(3)Top5oftheEndingBalanceoftheAccountsReceivableCollectedaccordingtotheArrearsPartyAttheperiod-end,thetotaltop5oftheendingbalanceoftheaccountsreceivablecollectedaccordingtothearrearspartywasRMB506,859,995.98accountingfor51.05%ofthetotalendingbalanceofaccountsreceivable.AndtheendingbalanceofbaddebtprovisionwithdrawnwasRMB10,137,199.92.
4.Prepayments
(1)ListbyAgingAnalysis
Unit:RMB
Aging | Endingbalance | Beginningbalance | ||
Amount | Proportion | Amount | Proportion | |
Within1year | 7,211,398.19 | 76.08% | 9,535,876.40 | 84.01% |
1to2years | 642,569.54 | 6.78% | 437,529.70 | 3.85% |
2to3years | 256,574.65 | 2.71% | 57,536.24 | 0.51% |
Over3years | 1,368,524.68 | 14.44% | 1,321,354.76 | 11.63% |
Total | 9,479,067.06 | -- | 11,352,297.10 | -- |
(2)Top5oftheEndingBalanceofthePrepaymentsCollectedaccordingtothePrepaymentTargetAttheperiod-end,thetotaltop5oftheendingbalanceoftheprepaymentscollectedaccordingtotheprepaymenttargetwasRMB2,155,392.45accountingfor22.74%ofthetotalendingbalanceofprepayments.
5.OtherReceivables
Unit:RMB
Item | Endingbalance | Beginningbalance |
Interestreceivable | 0.00 | |
Dividendreceivable | 0.00 | |
Otherreceivables | 10,675,479.55 | 9,244,584.42 |
Total | 10,675,479.55 | 9,244,584.42 |
(1)Otherreceivables
1)OtherReceivablesClassifiedbyAccountsNature
Unit:RMB
Nature | Endingcarryingvalue | Beginningcarryingvalue |
Marginandcashpledge | 4,200.00 | 4,200.00 |
Intercoursefunds | 26,523,461.40 | 25,451,250.34 |
Pettycashandborrowingsbyemployees | 1,392,153.09 | 1,232,153.09 |
Other | 15,865,412.52 | 15,546,601.57 |
Total | 43,785,227.01 | 42,234,205.00 |
2)WithdrawalofBadDebtProvision
□Applicable√NotapplicableDisclosurebyaging
Unit:RMB
Aging | Endingbalance |
Within1year(including1year) | 8,679,465.27 |
1to2years | 1,854,683.70 |
2to3years | 320,558.17 |
Over3years | 32,930,519.87 |
3to4years | 152,883.41 |
4to5years | 70,403.10 |
Over5years | 32,707,233.36 |
Total | 43,785,227.01 |
3)BadDebtProvisionWithdrawn,ReversedorRecoveredintheReportingPeriodInformationofwithdrawalofbaddebtprovision:
Unit:RMB
Category | Beginningbalance | ChangesintheReportingPeriod | Endingbalance | |
Withdrawal | Reversalorrecovery | |||
Otherreceivables | 32,989,620.58 | 120,126.88 | 33,109,747.46 | |
Total | 32,989,620.58 | 120,126.88 | 33,109,747.46 |
4)Top5oftheEndingBalanceoftheOtherReceivablesCollectedaccordingtotheArrearsParty
Unit:RMB
Nameoftheentity | Nature | Endingbalance | Aging | Proportiontoendingbalanceofotherreceivables% | Endingbalanceofbaddebtprovision |
ChangzhouChangjiangCastingMaterialsCo.,Ltd. | Intercoursefunds | 5,000,000.00 | Within1year | 11.42% | 100,000.00 |
ChangzhouCompressorsFactory | Intercoursefunds | 2,940,000.00 | Over5years | 6.71% | 2,940,000.00 |
ChangchaiGroupImp.&Exp.Co.,Ltd. | Intercoursefunds | 2,853,188.02 | Over5years | 6.52% | 2,853,188.02 |
ChangzhouNewDistrictAccountingCentre | Intercoursefunds | 1,626,483.25 | Over5years | 3.71% | 1,626,483.25 |
ChangzhouGroupSettlementCentre | Intercoursefunds | 1,140,722.16 | Over5years | 2.61% | 1,140,722.16 |
Total | -- | 13,560,393.43 | -- | 30.97% | 8,660,393.43 |
6.InventoryWhethertheCompanyhasexecutedthenewincomestandards
√Yes□No
(1)CategoryofInventory
Unit:RMB
Item | Endingbalance | Beginningbalance | ||||
Carryingamount | Fallingpricereservesofinventoryor | Carryingvalue | Carryingamount | Fallingpricereservesofinventoryor | Carryingvalue |
depreciationreservesofcontractperformancecost | depreciationreservesofcontractperformancecost | |||||
Rawmaterials | 85,753,215.70 | 5,761,479.77 | 79,991,735.93 | 134,454,498.93 | 5,845,504.24 | 128,608,994.69 |
Goodsinprocess | 150,248,131.41 | 24,091,709.62 | 126,156,421.79 | 166,798,553.34 | 24,187,100.54 | 142,611,452.80 |
Materialsprocessedoncommission | 12,093,880.81 | 1,075,756.43 | 11,018,124.38 | 13,330,233.29 | 993,300.18 | 12,336,933.11 |
Finishedgoods | 277,626,321.85 | 16,116,367.39 | 261,509,954.46 | 288,979,920.46 | 16,035,855.03 | 272,944,065.43 |
Lowpricedandeasilywornarticles | 3,654,121.30 | 2,222,808.74 | 1,431,312.56 | 3,632,711.20 | 2,180,265.53 | 1,452,445.67 |
Total | 529,375,671.07 | 49,268,121.95 | 480,107,549.12 | 607,195,917.22 | 49,242,025.52 | 557,953,891.70 |
WhethertheCompanyneedstocomplywiththedisclosurerequirementsofShenzhenStockExchangeIndustryInformationDisclosureGuidelinesNo.4-ListedcompaniesengagedinseedindustryandplantingbusinessNo
(2)FallingPriceReservesofInventoriesandDepreciationReservesofContractPerformanceCost
Unit:RMB
Item | Beginningbalance | Increase | Decrease | Endingbalance | ||
Withdrawal | Other | Reverseorwrite-off | Other | |||
Rawmaterials | 5,845,504.24 | 0.00 | 0.00 | 84,024.47 | 0.00 | 5,761,479.77 |
Goodsinprocess | 24,187,100.54 | 0.00 | 0.00 | 95,390.92 | 0.00 | 24,091,709.62 |
Materialsprocessedoncommission | 993,300.18 | 82,456.25 | 0.00 | 0.00 | 0.00 | 1,075,756.43 |
Finishedgoods | 16,035,855.03 | 80,512.36 | 0.00 | 0.00 | 0.00 | 16,116,367.39 |
Lowpricedandeasilywornarticles | 2,180,265.53 | 42,543.21 | 0.00 | 0.00 | 0.00 | 2,222,808.74 |
Total | 49,242,025.52 | 205,511.82 | 0.00 | 179,415.39 | 0.00 | 49,268,121.95 |
7.OtherCurrentAssetsWhethertheCompanyhasexecutedthenewincomestandards
√Yes□No
Unit:RMB
Item | Endingbalance | Beginningbalance |
TheVATtaxcredits | 6,768,809.68 | 25,962,369.29 |
Bankfinancialproducts | 0.00 | 0.00 |
Prepaidexpense | 87,542.21 | 86,761.81 |
Securitiescompanyfinancialproduct | 9,500,000.00 | 8,253,873.41 |
Other | 12,457.79 | 54,604.46 |
Total | 16,368,809.68 | 34,357,608.97 |
8.Long-termEquityInvestment
Unit:RMB
Investees | Beginningbalance(carryingvalue) | Increase/decrease | Endingbalance(carryingvalue) | Endingbalanceofdepreciationreserves | |||||||
Additionalinvestment | Reducedinvestment | Gainorlossrecognizedundertheequitymethod | Adjustmentofothercomprehensiveincome | Changesinotherequity | Cashbonusorprofitannouncedtoissue | Withdrawalofdepreciationreserves | Other | ||||
I.Jointventures | |||||||||||
II.Associatedenterprises | |||||||||||
BeijingTsinghuaIndustrialInvestmentManagementCo., | 44,182.50 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 44,182.50 | 44,182.50 |
Ltd. | |||||||||||
Subtotal | 44,182.50 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 44,182.50 | 44,182.50 |
Total | 44,182.50 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 44,182.50 | 44,182.50 |
9.OtherEquityInstrumentInvestment
Unit:RMB
Item | Endingbalance | Beginningbalance |
FotonAutomobile | 342,465,000.00 | 262,990,000.00 |
BankofJiangsu | 130,680,000.00 | 107,460,000.00 |
JiangsuExpresswayCo.,Ltd. | 537,000.00 | 490,000.00 |
JiangsuLianceElectromechanicalTechnologyCo.,Ltd. | 7,200,000.00 | 7,200,000.00 |
ChangzhouSynergeticInnovationPrivateEquityFund(LimitedPartnership) | 100,000,000.00 | 100,000,000.00 |
KailongHighTechnologyCo.,Ltd. | 20,001,268.00 | 20,001,268.00 |
GuizhouWarmenPharmaceuticalCo,Ltd. | 200,104.80 | 200,104.80 |
GuizhouAndaEnergyTechnologyCo.,Ltd. | 195,297.49 | 195,297.49 |
HenanLantianGasCo.,Ltd. | 160,744.76 | 160,744.76 |
AnhuiHofoElectromechanicalCo.,Ltd. | 138,441.76 | |
HebeiSongheRecyclingResourcesCo.,Ltd. | 104,699.44 | 104,699.44 |
HunanLitianHigh-techMaterialsCo.,Ltd. | 49,255.00 | 49,255.00 |
Total | 601,731,811.25 | 498,851,369.49 |
Non-tradingequityinstrumentinvestmentdisclosedbycategory
Unit:RMB
Item | Dividendincomerecognized | Accumulativegains | Accumulativelosses | Amountofothercomprehensivetransferredtoretainedearnings | Reasonforassigningtomeasurebyfairvalueofwhichchangesbeincludedtoothercomprehensiveincome | Reasonforothercomprehensiveincometransferredtoretainedearnings |
Changzhou | Judgedby |
SynergeticInnovationPrivateEquityFund(LimitedPartnership) | managementlayermeaningfully | |
JiangsuLianceElectromechanicalTechnologyCo.,Ltd. | Judgedbymanagementlayermeaningfully | |
KailongHighTechnologyCo.,Ltd. | Judgedbymanagementlayermeaningfully | |
FotonAutomobile | Judgedbymanagementlayermeaningfully | |
BankofJiangsu | Judgedbymanagementlayermeaningfully | |
JiangsuExpresswayCo.,Ltd. | Judgedbymanagementlayermeaningfully |
OnApril9,2019,thecompany'seighthseventeenboardmeetings,reviewedandadoptedthe"aboutthecompanyinvolvedinthefinancialassetsheldbythebusinessloanrefinancingbill,agreethatthecompanywill,nomorethan100millionsharesheldby"fukudacar"sharesand18millionsharesofstockbankinjiangsuprovincetoparticipateintorefinancesecuritieslendingtransactions.Attheendofthereportingperiod,thecompanystillhad280,000sharesoffotonmotorduringtheloanperiod.
10.InvestmentProperty
(1)InvestmentPropertyAdoptingtheCostMeasurementMode
√Applicable□Notapplicable
Unit:RMB
Item | Housesand | Landuse | Constructionin | Total |
buildings | right | progress | ||
I.Originalcarryingvalue | 87,632,571.14 | 87,632,571.14 | ||
1.Beginningbalance | ||||
2.Increasedamountoftheperiod | ||||
(1)Outsourcing | ||||
(2)Transferfrominventories/fixedassets/constructioninprogress | ||||
(3)Enterprisecombinationincrease | ||||
3.Decreasedamountoftheperiod | ||||
(1)Disposal | ||||
(2)Othertransfer | ||||
4.Endingbalance | 87,632,571.14 | 87,632,571.14 | ||
II.Accumulativedepreciationandaccumulativeamortization | ||||
1.Beginningbalance | 36,976,563.51 | 36,976,563.51 | ||
2.Increasedamountoftheperiod | 1,104,170.40 | 1,104,170.40 | ||
(1)Withdrawaloramortization | 1,104,170.40 | 1,104,170.40 | ||
3.Decreasedamountoftheperiod | ||||
(1)Disposal | ||||
(2)Othertransfer | ||||
4.Endingbalance | 38,080,733.91 | 38,080,733.91 | ||
III.Depreciationreserves | ||||
1.Beginningbalance | ||||
2.Increasedamountoftheperiod | ||||
(1)Withdrawal | ||||
3.Decreasedamountoftheperiod | ||||
(1)Disposal | ||||
(2)Othertransfer | ||||
4.Endingbalance | ||||
IV.Carryingvalue | ||||
1.Endingcarryingvalue | 49,551,837.23 | 49,551,837.23 | ||
2.Beginningcarryingvalue | 50,656,007.63 | 50,656,007.63 |
(2)InvestmentPropertyAdoptedtheFairValueMeasurementCode
□Applicable√Notapplicable
11.FixedAssets
Unit:RMB
Item | Endingbalance | Beginningbalance |
Fixedassets | 473,064,733.73 | 511,250,371.37 |
Total | 473,064,733.73 | 511,250,371.37 |
(1)ListofFixedAssets
Unit:RMB
Item | Housesandbuildings | Machineryequipment | Transportationequipment | Otherequipment | Total |
I.Originalcarryingvalue | |||||
1.Beginningbalance | 447,076,373.55 | 936,110,914.94 | 18,083,828.53 | 44,422,389.46 | 1,445,693,506.48 |
2.Increasedamountoftheperiod | |||||
(1)Purchase | |||||
(2)Transferfromconstructioninprogress | 0.00 | 6,833,909.02 | 0.00 | 172,389.13 | 7,006,298.15 |
(3)Enterprisecombinationincrease |
3.Decreasedamountoftheperiod | |||||
(1)Disposalorscrap | 1,369,274.57 | 3,257,085.78 | 4,626,360.35 |
4.Endingbalance | 447,076,373.55 | 941,575,549.39 | 18,083,828.53 | 41,337,692.81 | 1,448,073,444.28 |
II.Accumulativedepreciation | |||||
1.Beginningbalance | 265,778,832.18 | 619,622,564.64 | 13,341,638.03 | 34,205,985.26 | 932,949,020.11 |
2.Increasedamountoftheperiod | 8,608,066.58 | 33,218,854.43 | 1,263,298.28 | 1,974,286.00 | 45,064,505.29 |
(1)Withdrawal | 8,608,066.58 | 33,218,854.43 | 1,263,298.28 | 1,974,286.00 | 45,064,505.29 |
3.Decreasedamountoftheperiod | 0.00 | 1,242,002.26 | 0.00 | 3,256,927.59 | 4,498,929.85 |
(1)Disposalorscrap | 0.00 | 1,242,002.26 | 0.00 | 3,256,927.59 | 4,498,929.85 |
4.Endingbalance | 274,386,898.76 | 651,599,416.81 | 14,604,936.31 | 32,923,343.67 | 973,514,595.55 |
III.Depreciationreserves | |||||
1.Beginningbalance | 1,494,115.00 | 1,494,115.00 | |||
2.Increasedamountoftheperiod | |||||
(1)Withdrawal |
3.Decreasedamountoftheperiod |
(1)Disposalorscrap |
4.Endingbalance | 1,494,115.00 | 1,494,115.00 | ||
IV.Carrying |
value | |||||
1.Endingcarryingvalue | 172,689,474.79 | 288,482,017.58 | 3,478,892.22 | 8,414,349.14 | 473,064,733.73 |
2.Beginningcarryingvalue | 181,297,541.37 | 314,994,235.30 | 4,742,190.50 | 10,216,404.20 | 511,250,371.37 |
12.ConstructioninProgress
Unit:RMB
Item | Endingbalance | Beginningbalance |
Constructioninprogress | 80,277,379.05 | 89,090,384.71 |
Total | 80,277,379.05 | 89,090,384.71 |
(1)ListofConstructioninProgress
Unit:RMB
Item | Endingbalance | Beginningbalance | ||||
Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
Trialproductionworkshopprojecttechnologycenter | 14,349,461.80 | 14,349,461.80 | 14,349,461.80 | 14,349,461.80 | ||
Castingrenovationproject | 396,000.00 | 396,000.00 | 396,000.00 | 396,000.00 | ||
Expansioncapacityofmulti-cylinder(The2ndPeriod) | 11,375,531.74 | 11,375,531.74 | 11,371,098.24 | 11,371,098.24 | ||
DieselEngineCylinderBody | 23,485,515.70 | 23,485,515.70 | 19,061,813.95 | 19,061,813.95 |
FlexibleManufacturingLine | ||||||
35KVSubstation | 1,402,649.07 | 1,402,649.07 | 1,321,959.41 | 1,321,959.41 | ||
Equipmenttobeinstalledandpaymentforprojects | 29,268,220.74 | 29,268,220.74 | 42,590,051.31 | 42,590,051.31 | ||
Total | 80,277,379.05 | 80,277,379.05 | 89,090,384.71 | 89,090,384.71 |
(2)ChangesinSignificantConstructioninProgressduringtheReportingPeriod
Unit:RMB
Item | Budget | Beginningbalance | Increasedamount | Transferredinfixedassets | Otherdecreasedamount | Endingbalance | Proportionofaccumulatedinvestmentinconstructionstobudget | Jobschedule | Accumulatedamountofinterestcapitalization | Ofwhich:AmountofcapitalizedinterestsfortheReportingPeriod | CapitalizationrateofinterestsfortheReportingPeriod | Capitalresources |
Trialproductionworkshopprojecttechnology | 2,289.63 | 14,349,461.80 | 0.00 | 0.00 | 0.00 | 14,349,461.80 | 62.67% | Uncompleted | 0.00 | 0.00 | 0.00% | Other |
center | ||||||||||||
Expansioncapacityofmulti-cylinder(The2ndPeriod) | 7,019.00 | 11,371,098.24 | 4,433.50 | 0.00 | 11,375,531.74 | 91.94% | Uncompleted | 0.00 | 0.00 | 0.00% | Other | |
DieselEngineCylinderBodyFlexibleManufacturingLine | 11,604.00 | 19,061,813.95 | 4,423,701.75 | 0.00 | 0.00 | 23,485,515.70 | 43.40% | Uncompleted | 0.00 | 0.00 | 0.00% | Other |
35KVSubstation | 1,321,959.41 | 80,689.66 | 0.00 | 0.00 | 1,402,649.07 | Uncompleted | 0.00 | 0.00 | 0.00% | Other | ||
Total | 20,912.63 | 46,104,333.40 | 4,508,824.91 | 0.00 | 0.00 | 50,613,158.31 | -- | -- | 0.00 | 0.00 | 0.00% | -- |
13.IntangibleAssets
(1)ListofIntangibleAssets
Unit:RMB
Item | Landuseright | Software | Licensefee | Total |
I.Originalcarryingvalue |
1.Beginningbalance | 144,770,507.85 | 11,517,579.94 | 5,488,000.00 | 161,776,087.79 |
2.Increasedamountoftheperiod | ||||
(1)Purchase | ||||
(2)InternalR&D | ||||
(3)Businesscombinationincrease | ||||
3.Decreasedamountoftheperiod | ||||
(1)Disposal | ||||
4.Endingbalance | 144,770,507.85 | 11,517,579.94 | 5,488,000.00 | 161,776,087.79 |
II.Accumulatedamortization | ||||
1.Beginningbalance | 48,128,022.51 | 9,549,052.64 | 1,006,133.26 | 58,683,208.41 |
2.Increasedamountoftheperiod | 1,486,425.13 | 906,524.78 | 274,399.98 | 2,667,349.89 |
(1)Withdrawal | 1,486,425.13 | 906,524.78 | 274,399.98 | 2,667,349.89 |
3.Decreasedamountoftheperiod | ||||
(1)Disposal | ||||
4.Endingbalance | 59,614,447.64 | 10,455,577.42 | 1,280,533.24 | 61,350,558.30 |
III.Depreciationreserves | ||||
1.Beginningbalance | ||||
2.Increasedamountoftheperiod | ||||
(1)Withdrawal | ||||
3.Decreasedamountoftheperiod | ||||
(1)Disposal | ||||
4.Endingbalance | ||||
IV.Carryingvalue | ||||
1.Endingcarryingvalue | 95,156,060.21 | 1,062,002.52 | 4207466.76 | 100,425,529.49 |
2.Beginningcarryingvalue | 96,642,485.34 | 1,968,527.30 | 4,481,866.74 | 103,092,879.38 |
14.DeferredIncomeTaxAssets/DeferredIncomeTaxLiabilities
(1)DeferredIncomeTaxAssetsthatHadnotBeenOff-set
Unit:RMB
Item | Endingbalance | Beginningbalance | ||
Deductibletemporarydifference | Deferredincometaxassets | Deductibletemporarydifference | Deferredincometaxassets | |
Provisionforimpairmentofassets | 6,401,000.68 | 979,822.71 | 6,401,000.68 | 979,822.71 |
Total | 6,401,000.68 | 979,822.71 | 6,401,000.68 | 979,822.71 |
(2)DeferredIncomeTaxLiabilitiesHadNotBeenOff-set
Unit:RMB
Item | Endingbalance | Beginningbalance | ||
Deductibletemporarydifference | Deferredincometaxliabilities | Deductibletemporarydifference | Deferredincometaxliabilities | |
Assetsevaluationappreciationforbusinesscombinationnotunderthesamecontrol | 4,867,828.96 | 1,216,957.24 | 5,247,821.44 | 1,311,955.36 |
Changesinfairvalueofotherequityinstrumentinvestment | 413,807,500.00 | 62,071,125.00 | 311,065,500.00 | 46,659,825.00 |
Total | 418,675,328.96 | 63,288,082.24 | 316,313,321.44 | 47,971,780.36 |
(3)ListofUnrecognizedDeferredIncomeTaxAssets
Unit:RMB
Item | Endingbalance | Beginningbalance |
Deductabletemporarydifference | 320,481,664.50 | 320,481,664.50 |
Total | 320,481,664.50 | 320,481,664.50 |
15.OtherNon-currentAssetsWhethertheCompanyhasexecutedthenewincomestandards
√Yes□No
Unit:RMB
Item | Endingbalance | Beginningbalance | ||||
Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
Entrustedloans | 0.00 | 0.00 | 0.00 | 4,000,000.00 | 4,000,000.00 | 0.00 |
Total | 0.00 | 0.00 | 0.00 | 4,000,000.00 | 4,000,000.00 | 0.00 |
16.Short-termBorrowings
(1)CategoryofShort-termBorrowings
Unit:RMB
Item | Endingbalance | Beginningbalance |
Mortgageloans | 7,000,000.00 | 7,000,000.00 |
Guaranteedloans | 10,000,000.00 | 10,000,000.00 |
Creditloans | 5,000,000.00 | 10,000,000.00 |
Total | 22,000,000.00 | 27,000,000.00 |
17.NotesPayable
Unit:RMB
Category | Endingbalance | Beginningbalance |
Bank’sacceptancebill | 498,805,800.00 | 438,375,400.00 |
Total | 498,805,800.00 | 438,375,400.00 |
18.AccountsPayable
(1)ListofAccountsPayable
Unit:RMB
Item | Endingbalance | Beginningbalance |
Loans | 534,631,506.05 | 591,754,875.77 |
Total | 534,631,506.05 | 591,754,875.77 |
19.AdvancesfromCustomersWhethertheCompanyhasexecutedthenewincomestandards
√Yes□No
(1)ListofAdvancesfromCustomers
Unit:RMB
Item | Endingbalance | Beginningbalance |
Loans | 58,809,277.68 | 34,500,232.97 |
Total | 58,809,277.68 | 34,500,232.97 |
20.PayrollPayable
(1)ListofPayrollPayable
Unit:RMB
Item | Beginningbalance | Increase | Decrease | Endingbalance |
I.Short-termsalary | 50,500,592.99 | 130,770,536.38 | 150,036,105.05 | 31,235,024.32 |
II.Post-employmentbenefit-definedcontributionplans | 16,142,912.97 | 16,142,912.97 | ||
Total | 50,500,592.99 | 146,913,449.35 | 166,179,018.02 | 31,235,024.32 |
(2)ListofShort-termSalary
Unit:RMB
Item | Beginningbalance | Increase | Decrease | Endingbalance |
1.Salary,bonus,allowance,subsidy | 41,939,857.83 | 110,265,454.00 | 129,160,534.40 | 23,044,777.43 |
2.Employeewelfare | 89,592.74 | 1,568,150.28 | 1,467,821.58 | 189,921.44 |
3.Socialinsurance | 7,901,233.35 | 7,901,233.35 | ||
Ofwhich:Medicalinsurancepremiums | 6,550,754.26 | 6,550,754.26 | ||
Work-relatedinjuryinsurance | 653,467.90 | 653,467.90 | ||
Maternityinsurance | 697,011.19 | 697,011.19 | ||
4.Housingfund | 8,704,590.00 | 8,704,590.00 | ||
5.Laborunionbudgetandemployeeeducationbudget | 8,471,142.42 | 2,331,108.75 | 2,801,925.72 | 8,000,325.45 |
Total | 50,500,592.99 | 130,770,536.38 | 150,036,105.05 | 31,235,024.32 |
(3)ListofDefinedContributionPlans
Unit:RMB
Item | Beginningbalance | Increase | Decrease | Endingbalance |
1.Basicpensionbenefits | 15,706,350.31 | 15,706,350.31 | ||
2.Unemploymentinsurance | 436,562.66 | 436,562.66 | ||
Total | 16,142,912.97 | 16,142,912.97 |
21.TaxesPayable
Unit:RMB
Item | Endingbalance | Beginningbalance |
VAT | 1,063,147.40 | 876,055.81 |
Corporateincometax | 1,789,869.44 | 3,665,483.92 |
Personalincometax | 18,174.27 | 140,662.05 |
Urbanmaintenanceandconstructiontax | 20,540.15 | 993,210.56 |
Propertytax | 30,187.88 | 94,256.40 |
Landusetax | 21,000.00 | 100,135.19 |
Stampduty | 6,673.85 | 4,594.61 |
EducationSurcharge | 14,671.54 | 116,355.46 |
Comprehensivefees | 0.00 | 1,075,134.76 |
Environmentalprotectiontax | 292.59 | 197.13 |
Total | 2,964,557.12 | 7,066,085.89 |
22.OtherPayables
Unit:RMB
Item | Endingbalance | Beginningbalance |
Interestpayable | 0.00 | |
Dividendspayable | 3,891,433.83 | 3,891,433.83 |
Otherpayables | 188,181,372.94 | 195,520,817.07 |
Total | 192,072,806.77 | 199,412,250.90 |
(1)DividendsPayable
Unit:RMB
Item | Endingbalance | Beginningbalance |
Ordinarysharedividends | 3,243,179.97 | 3,243,179.97 |
Dividendsfornon-controllingshareholders | 648,253.86 | 648,253.86 |
Total | 3,891,433.83 | 3,891,433.83 |
Otherexplanations,includingimportantdividendspayablethathavenotbeenpaidformorethanoneyear,shalldisclosethereasonforthenon-payment:shareholdershavenotreceiveddividendsformorethanoneyear.
(2)OtherPayables
1)OtherPayablesListedbyNatureofAccount
Unit:RMB
Item | Endingbalance | Beginningbalance |
Margin&cashpledged | 4,067,802.52 | 3,369,213.08 |
Intercoursefundsamongunits | 15,026,254.32 | 10,977,924.77 |
Intercoursefundsamongindividuals | 452,065.24 | 375,201.04 |
Salesdiscountandthreeguarantees | 150,267,114.56 | 144,278,468.99 |
Other | 18,368,136.30 | 36,520,009.19 |
Total | 188,181,372.94 | 195,520,817.07 |
23.CurrentPortionofNon-currentLiabilities
Unit:RMB
Item | Endingbalance | Beginningbalance |
Currentportionoflong-termborrowings | 18,500,000.00 | 18,500,000.00 |
Total | 18,500,000.00 | 18,500,000.00 |
24.OtherCurrentLiabilitiesWhethertheCompanyhasexecutedthenewincomestandards
√Yes□No
Unit:RMB
Item | Endingbalance | Beginningbalance |
Electriccharge | 2,664,523.79 | 2,082,985.18 |
Total | 2,664,523.79 | 2,082,985.18 |
25.DeferredIncome
Unit:RMB
Item | Beginningbalance | Increase | Decrease | Endingbalance | Reasonforformation |
Governmentsubsidies | 59,928,484.84 | 0.00 | 0.00 | 59,928,484.84 |
Total | 59,928,484.84 | 59,928,484.84 | -- |
Iteminvolvinggovernmentsubsidies:
Unit:RMB
Item | Beginningbalance | Amountofnewlysubsidy | Amountrecordedintonon-operatingincomeintheReportingPeriod | AmountrecordedintootherincomeintheReportingPeriod | AmountoffsetcostintheReportingPeriod | Otherchanges | Endingbalance | Relatedtoassets/relatedtoincome |
Electriccontrolofdieselengineresearchanddevelopmentandindustrializationallocations | 646,800.00 | 646,800.00 | Relatedtoassets | |||||
Nationalmajorprojectspecialallocations | 28,770,000.00 | 28,770,000.00 | Relatedtoassets | |||||
Removecompensation | 20,511,684.84 | 20,511,684.84 | Relatedtoassets | |||||
Researchand | 10,000,000.00 | 10,000,000.00 | Relatedtoassets |
26.ShareCapital
Unit:RMB
developmentandindustrializationallocationsofnationalIII/IVstandardhigh-poweredefficientdieselengineforagriculturaluseBeginning
balance
Beginningbalance | Increase/decrease(+/-) | Endingbalance | |||||
Newsharesissued | Bonusshares | Bonusissuefromprofit | Other | Subtotal | |||
Thesumofshares | 561,374,326.00 | 561,374,326.00 |
27.CapitalReserves
Unit:RMB
Item | Beginningbalance | Increase | Decrease | Endingbalance |
Capitalpremium(premiumonstock) | 143,990,690.24 | 143,990,690.24 | ||
Othercapitalreserves | 20,337,975.19 | 20,337,975.19 | ||
Total | 164,328,665.43 | 164,328,665.43 |
28.OtherComprehensiveIncome
Unit:RMB
Item | Beginningbalance | ReportingPeriod | Endingbalance | |||||
IncomebeforetaxationintheCurrentPeriod | Less:RecordedinothercomprehensiveincomeinpriorperiodandtransferredinprofitorlossintheCurrentPeriod | Less:RecordedinothercomprehensiveincomeinpriorperiodandtransferredinretainedearningsintheCurrentPeriod | Less:Incometaxexpense | AttributabletoownersoftheCompanyastheparentaftertax | Attributabletonon-controllinginterestsaftertax | |||
I.Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorloss | 264,405,675.00 | 102,742,000.00 | 0.00 | 0.00 | 15,411,300.00 | 87,330,700.00 | 351,736,375.00 | |
Changesinfairvalueofotherequityinstrumentinvestment | 264,405,675.00 | 102,742,000.00 | 0.00 | 0.00 | 15,411,300.00 | 87,330,700.00 | 351,736,375.00 | |
Totalofothercomprehensiveincome | 264,405,675.00 | 102,742,000.00 | 15,411,300.00 | 87,330,700.00 | 0.00 | 351,736,375.00 |
29.SpecificReserve
Unit:RMB
Item | Beginningbalance | Increase | Decrease | Endingbalance |
Safetyproductioncost | 15,182,958.83 | 15,182,958.83 | ||
Total | 15,182,958.83 | 15,182,958.83 |
30.SurplusReserves
Unit:RMB
Item | Beginningbalance | Increase | Decrease | Endingbalance |
Statutorysurplusreserves | 306,976,192.25 | 306,976,192.25 | ||
Discretionalsurplusreserves | 13,156,857.90 | 13,156,857.90 | ||
Total | 320,133,050.15 | 320,133,050.15 |
31.RetainedEarnings
Unit:RMB
Item | ReportingPeriod | Sameperiodoflastyear |
Beginningbalanceofretainedearningsbeforeadjustments | 717,883,351.33 | 679,131,047.06 |
Beginningbalanceofretainedearningsafteradjustments | 717,883,351.33 | 679,131,047.06 |
Add:NetprofitattributabletoownersoftheCompanyastheparent | 19,058,025.07 | 18,638,557.66 |
Less:Withdrawalofstatutorysurplusreserves | ||
Dividendofordinarysharespayable | 14,034,358.15 | 16,841,229.78 |
Endingretainedearnings | 722,907,018.25 | 680,928,374.94 |
32.OperatingRevenueandCostofSales
Unit:RMB
Item | ReportingPeriod | Sameperiodoflastyear | ||
Operatingrevenue | Costofsales | Operatingrevenue | Costofsales | |
Mainoperations | 1,099,044,681.77 | 958,911,511.17 | 1,170,216,312.13 | 1,021,184,769.09 |
Otheroperations | 16,785,163.82 | 11,527,336.19 | 16,544,580.13 | 13,170,139.90 |
Total | 1,115,829,845.59 | 970,438,847.36 | 1,186,760,892.26 | 1,034,354,908.99 |
WhethertheCompanyhasexecutedthenewincomestandards
√Yes□No
33.TaxesandSurtaxes
Unit:RMB
Item | ReportingPeriod | Sameperiodoflastyear |
Urbanmaintenanceand | 574,471.12 | 845,650.36 |
constructiontax | ||
EducationSurcharge | 266,336.51 | 642,651.03 |
Propertytax | 1,986,524.35 | 2,069,927.39 |
Landusetax | 1,713,504.95 | 1,586,101.00 |
Stampduty | 456,518.80 | 513,699.80 |
Other | 81,443.68 | |
Total | 4,997,355.73 | 5,739,473.26 |
34.SellingExpense
Unit:RMB
Item | ReportingPeriod | Sameperiodoflastyear |
Officeexpenses | 2,915,326.32 | 3,386,449.10 |
Employee’sremuneration | 12,563,212.25 | 13,325,262.47 |
Salespromotionalexpense | 3,165,350.00 | 4,262,413.37 |
Threeguarantees | 31,616,012.47 | 23,686,879.68 |
Transportcharge | 1,767,281.30 | 2,858,745.16 |
Other | 6,231,216.64 | 4,708,326.08 |
Total | 58,258,398.98 | 52,228,075.86 |
35.AdministrativeExpense
Unit:RMB
Item | ReportingPeriod | Sameperiodoflastyear |
Officeexpenses | 6,785,232.65 | 5,654,457.09 |
Employee’sremuneration | 11,852,036.58 | 12,037,442.78 |
Depreciationandamortization | 7,665,203.65 | 5,697,101.23 |
Transportfees | 1,205,423.26 | 1,056,769.14 |
Repaircharge | 992,564.62 | 1,032,605.25 |
Safetyexpenses | 1,005,623.68 | 414,850.19 |
Other | 4,596,610.42 | 2,474,389.63 |
Total | 34,102,694.86 | 28,367,615.31 |
36.R&DExpense
Unit:RMB
Item | ReportingPeriod | Sameperiodoflastyear |
Directinputexpense | 19,912,601.44 | 21,463,512.92 |
Employee’sremuneration | 8,459,434.34 | 10,053,265.32 |
Depreciationandamortization | 1,367,141.44 | 1,406,084.20 |
EntrustedR&Dcharges | 0.00 | 700,000.00 |
Other | 325,106.24 | 444,009.71 |
Total | 30,064,283.46 | 34,066,872.15 |
37.FinanceCosts
Unit:RMB
Item | ReportingPeriod | Sameperiodoflastyear |
Interestexpense | 1,567,625.50 | 1,805,097.10 |
Less:Interestincome | 1,642,256.03 | 891,663.17 |
Netforeignexchangegainsorlosses | -1,047,246.55 | -1,336,510.72 |
Other | -658,934.54 | 290,739.67 |
Total | -1,780,811.62 | -132,337.12 |
38.OtherIncome
Unit:RMB
Sources | ReportingPeriod | Sameperiodoflastyear |
Governmentsubsidies | 129,300.00 | 129,600.00 |
39.InvestmentIncome
Unit:RMB
Item | ReportingPeriod | SamePeriodoflastyear |
Investmentincomereceivedfromholdingofavailable-for-salefinancialassets | 21,000.00 | |
Investmentincomereceivedfromdisposalofsecuritiescompanies’financialproducts | 179,073.85 | 355,091.68 |
Total | 179,073.85 | 376,091.68 |
40.CreditImpairmentLoss
Unit:RMB
Item | ReportingPeriod | Sameperiodoflastyear |
Baddebtlossofotherreceivables | -9,260,420.00 |
Entrustedloanimpairmentloss | 4,000,000.00 |
Total | -5,260,420.00 |
41.AssetImpairmentLossWhethertheCompanyhasexecutedthenewincomestandards
√Yes□No
Unit:RMB
Item | ReportingPeriod | Sameperiodoflastyear |
I.Baddebtloss | -9,843,236.55 | |
II.Lossoninventoryvaluationandcontractperformancecost | -26,096.43 | -114,220.19 |
Total | -26,096.43 | -9,957,456.74 |
42.ProceedsfromAssetsDisposal
Unit:RMB
Sources | ReportingPeriod | Sameperiodoflastyear |
Fixedassetdisposalincome | 988,535.95 | 0.00 |
43.Non-operatingIncome
Unit:RMB
Item | ReportingPeriod | Sameperiodoflastyear | Amountrecordedinthecurrentnon-recurringprofitorloss |
Incomegeneratedfromdisposalofcurrentassets | 324,516.28 | 913,253.12 | 324,516.28 |
Gainsfromdisposalofnon-currentassets | 220,802.18 | ||
Incomefrompenalty | 6,021.73 | ||
Other | 242,415.10 | 963,006.00 | 242,415.10 |
Total | 566,931.38 | 2,103,083.03 | 566,931.38 |
44.Non-operatingExpense
Unit:RMB
Item | ReportingPeriod | Sameperiodoflastyear | Amountrecordedinthecurrentnon-recurring |
profitorloss | |||
Lossondisposalofnon-currentassets | 215,077.98 | 759,756.94 | 215,077.98 |
Lossondisposalofcurrentassets | 585,214.30 | ||
Other | 2,760.00 | 182,194.97 | 2,760.00 |
Total | 217,837.98 | 1,527,166.21 | 217,837.98 |
45.IncomeTaxExpense
(1)ListofIncomeTaxExpense
Unit:RMB
Item | ReportingPeriod | Sameperiodoflastyear |
Currentincometaxexpense | -2,998,475.83 | 4,352,526.65 |
Total | -2,998,475.83 | 4,352,526.65 |
(2)AdjustmentProcessofAccountingProfitandIncomeTaxExpense
Unit:RMB
Item | ReportingPeriod |
Profitbeforetaxation | 16,108,563.59 |
Currentincometaxexpenseaccountedatstatutory/applicabletaxrate | 2,416,284.53 |
Influenceofapplyingdifferenttaxratesbysubsidiaries | 1,285,450.52 |
Influenceofincometaxbeforeadjustment | -6,700,210.88 |
Incometaxexpense | -2,998,475.83 |
46.CashFlowStatement
(1)CashGeneratedfromOtherOperatingActivities
Unit:RMB
Item | ReportingPeriod | Sameperiodoflastyear |
Subsidyandappropriation | 129,300.00 | 129,600.00 |
Otherintercoursesincash | 6,528,903.17 | 5,101,317.80 |
Interestincome | 1,642,256.03 | 891,663.17 |
Total | 8,300,459.20 | 6,122,580.97 |
(2)CashUsedinOtherOperatingActivities
Unit:RMB
Item | ReportingPeriod | Sameperiodoflastyear |
Sellingexpensepaidincash | 22,265,032.54 | 21,006,830.47 |
Administrativeexpensepaidincash | 15,584,623.25 | 14,557,302.97 |
Handlingcharge | 275,426.54 | 282,442.51 |
Other | 358,282.38 | 611,755.52 |
Total | 38,483,364.71 | 36,458,331.47 |
Notes:
47.SupplementalInformationforCashFlowStatement
(1)SupplementalInformationforCashFlowStatement
Unit:RMB
Supplementalinformation | ReportingPeriod | Sameperiodoflastyear |
1.Reconciliationofnetprofittonetcashflowsgeneratedfromoperatingactivities | -- | -- |
Netprofit | 19,107,039.42 | 18,907,908.92 |
Add:Provisionforimpairmentofassets | 5,286,516.43 | 9,957,456.74 |
Depreciationoffixedassets,ofoil-gasassets,ofproductivebiologicalassets | 45,064,505.29 | 45,126,800.50 |
Depreciationofright-to-useassets | 0.00 | 0.00 |
Amortizationofintangibleassets | 2,667,349.89 | 3,009,252.65 |
Amortizationoflong-termdeferredexpenses | 0.00 | 0.00 |
Lossesondisposaloffixedassets,intangibleassetsandotherlong-termassets(gainsby“-”) | -988,535.95 | 521,857.30 |
Lossesonthescrappingoffixedassets(gainsby“-”) | 0.00 | 0.00 |
Lossesonthechangesinfairvalue(gainsby“-”) | 0.00 | 0.00 |
Financialexpenses(gainsby“-”) | -1,780,811.62 | 668,251.41 |
Investmentlosses(gainsby“-”) | 0.00 | -376,091.68 |
Decreaseindeferredincometaxassets(increaseby“-”) | 0.00 | 0.00 |
Increaseindeferredincometaxliabilities(decreaseby“-”) | 0.00 | 0.00 |
Decreaseininventory(increaseby“-”) | 77,794,149.72 | 84,613,078.27 |
Decreaseinaccountsreceivablefromoperatingactivities(increaseby“-”) | -400,095,623.42 | -250,092,116.94 |
Increaseinpayablesfromoperatingactivities(decreaseby“-”) | 80,746,953.05 | 84,973,677.86 |
Other | -2,976,019.99 | -2,918,928.18 |
Netcashflowsgeneratedfromoperatingactivities | -154,227,704.77 | -5,608,853.15 |
2.Investingandfinancingactivitiesthatdonotinvolvingcashreceiptsandpayment: | -- | -- |
Debttransferredascapital | 0.00 | |
Convertiblecorporatebondduewithinoneyear | 0.00 | |
Fixedassetsfromfinancinglease | 0.00 | |
3.Netincreaseincashandcashequivalents | -- | -- |
Endingbalanceofcash | 493,620,269.20 | 282,312,926.17 |
Less:Beginningbalanceofcash | 687,439,682.49 | 325,263,654.43 |
Less:Beginningbalanceofcashequivalents | 0.00 | |
Netincreaseincashandcashequivalents | -193,459,370.39 | -42,950,728.26 |
(2)CashandCashEquivalents
Unit:RMB
Item | Endingbalance | Beginningbalance |
I.Cash | 476,941,653.95 | 687,439,682.49 |
Including:Cashonhand | 401,268.09 | 441,363.70 |
Bankdepositondemand | 470,286,840.55 | 684,620,907.41 |
Othermonetarycapitalondemand | 2,001,365.45 | 2,017,368.48 |
48.AssetswithRestrictedOwnershiporRighttoUse
Unit:RMB
Item | Endingcarryingvalue | Reasonforrestriction |
Monetarycapital | 134,862,508.92 | Ascashdepositforbankacceptancebill |
Housesandbuildings | 2,936,446.13 | Mortgagedforborrowingsfrombanks |
Landuseright | 995,328.00 | Mortgagedforborrowingsfrombanks |
Machineryequipment | 48,181,935.62 | Mortgagedforborrowingsfrombanks |
Total | 186,976,218.67 | -- |
49.ForeignCurrencyMonetaryItems
(1)ForeignCurrencyMonetaryItems
Unit:RMB
Item | Endingforeigncurrencybalance | Exchangerate | EndingbalanceconvertedtoRMB |
Monetarycapital | -- | -- | |
Ofwhich:USD | 5,085,852.32 | 6.8740 | 34,960,148.85 |
HKD | 275,388.80 | 0.8797 | 242,259.52 |
SGD | 54,427.95 | 5.0805 | 276,521.20 |
Accountsreceivable | -- | -- | |
Ofwhich:USD | 9,846,283.21 | 6.8740 | 67,683,350.78 |
EUR | |||
HKD |
50.GovernmentSubsidy
(1)BasicInformationonGovernmentSubsidy
Unit:RMB
Category | Amount | Listeditems | Amountrecordedinthecurrentprofitorloss |
TractorprojectofLuoyanghillyland | 66,000.00 | Otherincome | 66,000.00 |
Specificfundformunicipal-levelforeigntradedevelopment | 63,300.00 | Otherincome | 63,300.00 |
VIII.ChangesofConsolidationScope
1.ChangesinCombinationScopeforOtherReasonsNotetochangesincombinationscopeforotherreasons(suchasnewlyestablishmentorliquidationofsubsidiaries,etc.)andrelevantinformation:
TheinformationofnewlyestablishmentofsubsidiariesOn25February2019,theinterimboardmeetingheldbyChangchaiCompany,Limited(hereinafterreferredas“theCompany”),examinedandapprovedtheproposalofestablishingwholly-ownedsubsidiarytoimplementtheproductionprojectoflightdutyengineandcasting,agreedtheCompanytosetupawholly-ownedsubsidiaryinRMB300milliontoimplementtheproductionproject.ThesubsidiarycompletedtheregistrationproceduresandgainedthebusinesslicenseissuedbyAdministrativeApprovalBureauofChangzhouNationalHigh-techIndustryDevelopmentZone(XinbeiDistrict)withthecorporatenameofJiangsuChangchaiMachineryCo.,Ltd.andtheregisteredcapitalRMB300million.Forthedetailedinformation,seetheAnnouncementofForeignInvestmentandEstablishingtheWholly-ownedSubsidiary(AnnouncementNo.2019-004)andAnnouncementofProceduresofForeignInvestmentandEstablishingtheWholly-ownedSubsidiary(AnnouncementNo.2019-005)inSecurityTimes,TaKungPaoandthecninfowebsiteonFebruary26,2019andMarch7,2019.
IX.EquityinOtherEntities
1.EquityinSubsidiary
(1)Subsidiaries
Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
Directly | Indirectly | |||||
ChangchaiWanzhouDieselEngineCo.,Ltd. | Chongqing | Chongqing | Industry | 60.00% | Set-up | |
ChangzhouChangchaiBenniuDieselEngineFittingsCo.,Ltd. | ChangzhouCity | ChangzhouCity | Industry | 99.00% | 1.00% | Set-up |
ChangzhouHoushengInvestmentCo.,Ltd. | ChangzhouCity | ChangzhouCity | Service | 100.00% | Set-up | |
ChangzhouChangchaiHoushengAgriculturalEquipmentCo.,Ltd. | ChangzhouCity | ChangzhouCity | Industry | 70.00% | 25.00% | Set-up |
ChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd. | ChangzhouCity | ChangzhouCity | Industry | 100.00% | Combinationnotunderthesamecontrol | |
JiangsuChangchaiMachineryCo.,Ltd. | ChangzhouCity | ChangzhouCity | Industry | 100.00% | Set-up |
Notestoholdingproportioninsubsidiarydifferentfromvotingproportion:
Basisofholdinghalforlessvotingrightsbutstillcontrollingtheinvesteeandholdingmorethanhalfofthevotingrightsbutnotcontrollingtheinvestee:
Significantstructuralentitiesandcontrollingbasisinthescopeofcombination:
BasisofdeterminingwhethertheCompanyistheagentortheprincipal:
(2)SignificantNon-wholly-ownedSubsidiary
Unit:RMB
Name | Shareholdingproportionofnon-controllinginterests | Theprofitorlossattributabletothenon-controllinginterests | Declaringdividendsdistributedtonon-controllinginterests | Balanceofnon-controllinginterestsattheperiod-end |
ChangchaiWanzhouDieselEngineCo.,Ltd. | 40.00% | |||
ChangzhouChangchaiHoushengAgriculturalEquipmentCo.,Ltd. | 5.00% |
(3)TheMainFinancialInformationofSignificantNotWholly-ownedSubsidiary
Unit:RMB
Name | Endingbalance | Beginningbalance | ||||||||||
Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentliability | Totalliabilities | Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentliability | Totalliabilities | |
ChangchaiWanzhouDieselEngineCo.,Ltd. | 112,303,839.91 | 27,016,071.00 | 139,319,910.91 | 22,588,500.69 | 0.00 | 22,588,500.69 | 110,589,006.95 | 27,493,776.10 | 138,082,783.05 | 19,608,386.99 | 2,000,000.00 | 21,608,386.99 |
ChangzhouChangchaiHoushengAgricultural | 33,803,254.87 | 567,302.35 | 34,370,557.22 | 33,567,100.58 | 0.00 | 33,567,100.58 | 35,776,302.79 | 625,680.72 | 36,401,983.51 | 35,028,512.30 | 0.00 | 35,028,512.30 |
Unit:RMB
EquipmentCo.,Ltd.
Name
Name | ReportingPeriod | Sameperiodoflastyear | ||||||
Operatingrevenue | Netprofit | Totalcomprehensiveincome | Cashflowsfromoperatingactivities | Operatingrevenue | Netprofit | Totalcomprehensiveincome | Cashflowsfromoperatingactivities | |
ChangchaiWanzhouDieselEngineCo.,Ltd. | 23,600,857.49 | 257,014.16 | 257,014.16 | -862,600.33 | 27,534,782.67 | 603,341.04 | 603,341.04 | -817,231.49 |
ChangzhouChangchaiHoushengAgriculturalEquipmentCo.,Ltd. | 6,815,423.91 | -570,014.57 | -570,014.57 | -1,101,489.23 | 11,788,194.43 | 560,296.88 | 560,296.88 | -6,844,681.85 |
(4)FinancialSupportorOtherSupportsProvidedtoStructuralEntitiesIncorporatedintotheScopeofConsolidatedFinancialStatementsTheCompanyprovidedChangzhouChangchaiHoushengAgriculturalEquipmentCo.,Ltd.bankloanguaranteewithRMB20millionattheendoftheperiod.
2.EquityintheStructuredEntityExcludedintheScopeofConsolidatedFinancialStatementsNotestothestructuredentityexcludedinthescopeofconsolidatedfinancialstatements:
In2017,theCompanysetupChangzhouXietongPrivateEquityFund(LimitedPartnership)togetherwithSynergeticInnovationFundManagementCo.,Ltd.throughjointinvestment.On18October2018,newpartnerswereadded.InlinewiththerevisedPartnershipAgreement,thegeneralpartnerisSynergeticInnovationFundManagementCo.,Ltd.,andthelimitedpartnersareChangchaiCompany,Limited,ChangzhouZhongyouPetroleumSalesCo.,Ltd.,ChangzhouFuelCo.,Ltd.,TongYinzhuandTongYinxin.InaccordancewiththePartnershipAgreement,thelimitedpartnerdoesnotexecutethepartnershipaffairs.Thus,theCompanydoesnotcontrolChangzhouXietongPrivateEquityFund(LimitedPartnership)anddidnotincludeitintothescopeofconsolidatedfinancialstatements.
X.TheRiskRelatedtoFinancialInstrumentsThegoaloftheCompany’sriskmanagementwasgainingthebalancebetweentheriskandincome,andreducedthenegativeimpacttotheoperationperformanceoftheCompanyinthelowestlevelandmaximizedtheinterestsofshareholdersandotherequityinvestors.Baseontheriskmanagementgoal,thebasisstrategyoftheCompany’sriskmanagementwastorecognizedandanalyzeallkindsofriskthattheCompanyfaced,setupsuitableriskbottomlineandconductriskmanagement,andsupervisedtheriskstimelyandreliablyandcontroltheriskwithinthelimitedscope.ThemainrisksoftheCompanyduetofinancialinstrumentswerecreditrisk,liquidityriskandmarketrisk.Themanagementlevelhadreviewedandapprovedthepoliciestomanagetherisks,whichsummarizedasfollows:
(I)CreditRiskCreditriskwasonepartyofthecontractfailedtofulfilltheobligationsandcauseslossoffinancialassetsoftheotherparty.ThecreditofriskoftheCompanymainlywasrelatedtoaccountreceivable,inordertocontroltherisk,theCompanyconductthefollowingmethods.TheCompanyonlyconductsrelatedtransactionwithapprovedandreputablethirdparty,inlinewiththepolicyoftheCompany,theCompanyneedtoconductcredit-checkfortheclientsadoptingwayofcredittoconducttransaction.Inaddition,theCompanycontinuouslymonitorsthebalanceofaccountreceivabletoensuretheCompanywouldnotfacethesignificantbaddebtrisk.(II)LiquidityRiskLiquidityriskisreferredtotheriskofincurringcapitalshortagewhenperformingsettlementobligationinthewayofcashpaymentorotherfinancialassets.ThepoliciesoftheCompanyaretoensurethattherewassufficientcashtopaythedueliabilities.TheliquidityriskwascentralizedcontrolledbythefinancialdepartmentoftheCompany.Thefinancialdepartmentsthroughsupervisingthebalanceofthecashandsecuritiescanbeconverttocashatanytimeandtherollingpredictionofcashflowinfuture12monthstoensuretheCompanyhassufficientcashtopaytheliabilitiesunderthecaseofallreasonableprediction.(III)MarketRiskMarketriskisrefertoriskofthefairvalueorfuturecashflowoffinancialinstrumentchangedduetothechangeofmarketprice,includingforeignexchangeraterisk,interestraterisk.
1.InterestRateRiskInterestrateriskisreferstofluctuationriskofthefairvalueorfuturecashflowoffinancialinstrumentchangeduetothechangeofmarketprice.
2.ForeignExchangeRiskForeignexchangerateriskisreferredtotheriskincurredformthechangeofexchangerate.AsfortheCompany’sexportbusiness,customerswillbegivenacertaincreditterm,iftheRMBappreciatesagainstthedollar,thecompany'saccountsreceivablewillincurforeigncurrencyexchangeloss.XI.TheDisclosureofFairValue
1.EndingFairValueofAssetsandLiabilitiesatFairValue
Unit:RMB
Item | Endingfairvalue | |||
Fairvaluemeasurementitemsatlevel1 | Fairvaluemeasurementitemsatlevel2 | Fairvaluemeasurementitemsatlevel3 | Total | |
I.Consistentfairvaluemeasurement | -- | -- | -- | -- |
(III)Otherequityinstrumentinvestment | 473,682,000.00 | 473,682,000.00 | ||
Totalassetsconsistentlymeasuredbyfairvalue | 473,682,000.00 | 473,682,000.00 | ||
II.Inconsistentfairvaluemeasurement | -- | -- | -- | -- |
XII.RelatedPartyandRelated-partyTransactions
1.InformationRelatedtotheCompanyastheParentoftheCompany
Name | Registrationplace | Natureofbusiness | Registeredcapital | ProportionofshareheldbytheCompanyastheparentagainsttheCompany | ProportionofvotingrightsownedbytheCompanyastheparentagainsttheCompany |
ChangzhouInvestmentGroupCo.,Ltd. | No.23,25,27,29YanlingWestRoad | Investmentservice | RMB1.2billion | 30.43% | 30.43% |
Notes:InformationontheCompanyastheparentTheCompanyastheparentoftheCompanyisChangzhouInvestmentGroupCo.,Ltd.whichisthewholly-ownedsubsidiaryofChangzhouPeople’sGovernment.InaccordancewithChangzhouPeople’sGovernmentDocument(CZF[2006]No.62),boththeCompanyandChangzhouInvestmentGroupCo.,Ltd.areenterpriseswhichChangzhouPeople’sGovernmentauthorizesChangzhouGovernmentState-ownedAssetsSupervisionandAdministrationCommissiontoperformdutiesofinvestors.Thus,afterthesharertransfer,ChangzhouInvestmentGroupCo.,Ltd.isthecontrollingshareholderoftheCompanyandChangzhouGovernmentState-ownedAssetsSupervisionandAdministrationCommissionisstilltheactualcontrolleroftheCompany.
2.SubsidiariesoftheCompanyRefertoNoteIXEquityinOtherEntitiesfordetails.
3.InformationontheJointVenturesandAssociatedEnterprisesoftheCompanyRefertoNoteIXEquityinOtherEntitiesfordetailsofsignificantjointventuresorassociatedenterprisesoftheCompany.
4.InformationonOtherRelatedParties
Name | RelationshipwiththeCompany |
SynergeticInnovationFundManagementCo.,Ltd. | ThedirectoroftheCompanyservesastheseniormanagementofthecompany |
5.Related-partyTransactions
No.
6.OtherNo.XIII.CommitmentsandContingency
1.SignificantCommitmentsSignificantcommitmentsonbalancesheetdateAsof30June2019,therewasnosignificantcommitmentfortheCompanytodisclose.
2.Contingency
(1)SignificantContingencyonBalanceSheetDate
Nameofdefendant | Dateofaccepted | Nameofthelitigationorarbitrationinstitutions | Amountinvolved(RMB’0,000) | Remark |
ShandongHongliGroupCo.,Ltd. | 27June2001 | ChangzhouIntermediatePeople'sCourt | 1,436.00 | Underthebankruptcyandliquidation |
Total | 1,436.00 |
Notes:
AboutthelawsuitcaseofShandongHongliGroupCo.,Ltd.,theaccusedcompanyowedaccumulativelyRMB
14.36milliontotheCompany.TheCompanysuedtoChangzhouIntermediatePeople’sCourtin2001andsuedforcompulsoryexecutioninApril2002.Currently,thedefendanthasstartedthebankruptcyprocedure.Theaforesaidpaymenthasarrangedforthefullprovisionforbaddebts.
(2)InDespiteofnoSignificantContingencytoDisclose,theCompanyShallAlsoMakeRelevantStatementsTherewasnosignificantcontingencyintheCompany.XIV.EventsafterBalanceSheetDate
1.SignificantNon-adjustedEvents
Unit:RMB
Item | Content | Influencenumbertothefinancialpositionandoperatingresults | Reasonofinabilitytoestimateinfluencenumber |
Significantforeigninvestment | TheCompanyacceptedthetransferofcapitalcontributionrightwithRMB50millionofJiangsuHoushengNewEnergyTechnologyCo.,Ltd.fromChangzhouSynergeticInnovationPrivateEquityFund(LimitedPartnership)inJuly2019,andhassubscribedthecapitalcontribution. | Underthepilotproductionstage,itisuncertainforthefutureoperationcondition |
XV.OtherSignificantEvents
1.SegmentInformation
(1)BasisforDeterminationofSegmentsandGoverningAccountingPoliciesDuetotheoperationscopeoftheCompanyandsubsidiariesweresimilar,theCompanyconductcommonmanagement,didnotdividebusinessunit,sotheCompanyonlymadesinglebranchreport.
(2)OtherSignificantTransactionsandEventswithInfluenceonInvestors’Decision-makingTherearenosignificanttransactionsandeventswithinfluenceoninvestors’decision-makingattheperiod-end.
XVI.NotesofMainItemsintheFinancialStatementsoftheCompanyastheParent
1.AccountsReceivable
(1)AccountsReceivableDisclosedbyCategory
Unit:RMB
Category | Endingbalance | Beginningbalance | ||||||||
Carryingamount | Baddebtprovision | Carryingvalue | Carryingamount | Baddebtprovision | Carryingvalue | |||||
Amount | Proportion | Amount | Withdrawalproportion | Amount | Proportion | Amount | Withdrawalproportion | |||
Accountsreceivableforwhichbaddebtprovisionseparatelyaccrued | 31,068,167.94 | 3.46% | 30,180,731.52 | 97.14% | 887,436.42 | 35,823,767.01 | 6.85% | 32,806,077.14 | 91.58% | 3,017,689.87 |
Ofwhich: | ||||||||||
Accountsreceivablewithsignificantsingleamountforwhichbaddebtprovisionseparatelyaccrued | 28,205,070.58 | 3.14% | 27,317,634.16 | 96.85% | 887,436.42 | 32,008,110.06 | 6.12% | 28,990,420.19 | 90.57% | 3,017,689.87 |
Accountsreceivablewithinsignificantsingleamountforwhichbaddebtprovisionseparatelyaccrued | 2,863,097.36 | 0.32% | 2,863,097.36 | 100.00% | 0.00 | 3,815,656.95 | 0.73% | 3,815,656.95 | 100.00% | |
Accountsreceivablewithdrawalofbaddebtprovisionofby | 866,444,672.05 | 96.54% | 201,992,552.68 | 23.31% | 664,452,119.37 | 487,566,507.88 | 93.15% | 190,226,913.94 | 39.02% | 297,339,593.94 |
group | ||||||||||
Ofwhich: | ||||||||||
Total | 897,512,839.99 | 100.00% | 232,173,284.20 | 25.87% | 665,339,555.79 | 523,390,274.89 | 100.00% | 223,032,991.08 | 42.61% | 300,357,283.81 |
Accountsreceivableforwhichbaddebtprovisionseparatelyaccrued:
Unit:RMB
Name | Endingbalance | |||
Carryingamount | Baddebtprovision | Withdrawalproportion | Reasonforwithdrawal | |
Customer1 | 1,902,326.58 | 1,902,326.58 | 100.00% | Difficulttorecover |
Customer2 | 1,161,700.00 | 580,850.00 | 50.00% | Expectedtodifficultlyrecover |
Customer3 | 6,215,662.64 | 6,215,662.64 | 100.00% | Difficulttorecover |
Customer4 | 2,484,497.34 | 2,177,910.92 | 87.66% | Expectedtodifficultlyrecover |
Customer5 | 3,279,100.00 | 3,279,100.00 | 100.00% | Expectedtodifficultlyrecover |
Customer6 | 2,068,377.01 | 2,068,377.01 | 100.00% | Expectedtodifficultlyrecover |
Customer7 | 5,359,381.00 | 5,359,381.00 | 100.00% | Difficulttorecover |
Customer8 | 2,584,805.83 | 2,584,805.83 | 100.00% | Difficulttorecover |
Customer9 | 1,679,109.54 | 1,679,109.54 | 100.00% | Difficulttorecover |
Customer10 | 1,470,110.64 | 1,470,110.64 | 100.00% | Expectedtodifficultlyrecover |
Other | 2,863,097.36 | 2,863,097.36 | 100.00% | Expectedtodifficultlyrecover |
Total | 31,068,167.94 | 30,180,731.52 | -- | -- |
Accountsreceivablewithdrawalofbaddebtprovisionofbygroup:
Unit:RMB
Name | Endingbalance | ||
Carryingamount | Baddebtprovision | Withdrawalproportion | |
Within1year(including1year) | 653,939,222.84 | 13,078,784.46 | 2.00% |
0.00 | |||
1to2years | 19,477,754.24 | 973,887.71 | 5.00% |
2to3years | 5,005,462.35 | 750,819.35 | 15.00% |
3to4years | 875,236.20 | 262,570.86 | 30.00% |
4to5years | 551,265.32 | 330,759.19 | 60.00% |
Over5years | 186,595,731.10 | 186,595,731.10 | 100.00% |
Total | 866,444,672.05 | 201,992,552.68 | -- |
Notestothebasisforthedeterminationofthegroups:
Pleaserefertotherelevantinformationofdisclosureofbaddebtprovisionofotheraccountsreceivableifadoptingthegeneralmodeofexpectedcreditlosstowithdrawbaddebtprovisionofaccountsreceivable.
□Applicable√Notapplicable
(2)BadDebtProvisionWithdrawn,ReversedorRecoveredintheReportingPeriodInformationofwithdrawalofbaddebtprovision:
Unit:RMB
Category | Beginningbalance | ChangesintheReportingPeriod | Endingbalance | ||
Withdrawal | Reversalorrecovery | Write-off | |||
Baddebtprovision | 223,032,991.08 | 9,140,293.12 | 232,173,284.20 | ||
Total | 223,032,991.08 | 9,140,293.12 | 232,173,284.20 |
(3)Top5AccountsReceivableinEndingBalanceCollectedaccordingtotheArrearsPartyThetotaltop5accountsreceivableinendingbalancecollectedaccordingtothearrearspartywasRMB506,859,995.98,accountingfor56.47%ofthetotalendingbalanceofaccountsreceivable.ThecorrespondingendingbalanceofbaddebtprovisionwithdrawnwasRMB10,137,199.92.
2.OtherReceivables
Unit:RMB
Item | Endingbalance | Beginningbalance |
Otherreceivables | 23,668,652.76 | 21,681,331.85 |
Total | 23,668,652.76 | 21,681,331.85 |
(1)OtherReceivables
1)OtherReceivablesClassifiedbyNature
Unit:RMB
Nature | Endingcarryingamount | Beginningcarryingamount |
Cashdepositandmargin | 4,200.00 | 4,200.00 |
Intercoursefundsamongunits | 36,584,562.50 | 36,267,607.16 |
Pettycashandborrowingsbyemployees | 625,874.64 | 596,876.87 |
Other | 17,125,861.51 | 15,364,366.83 |
Total | 54,340,498.65 | 52,233,050.86 |
2)WithdrawalofBadDebtProvisionChangesofcarryingamountwithsignificantamountchangedoflossprovisioninthecurrentperiod
□Applicable√NotapplicableDisclosurebyaging
Unit:RMB
Aging | Endingbalance |
Within1year(including1year) | 27,175,672.59 |
1to2years | 1,795,421.38 |
2to3years | 269,006.89 |
3to4years | 96,930.77 |
4to5years | 60,094.33 |
Over5years | 24,943,372.69 |
Total | 54,340,498.65 |
3)BadDebtProvisionWithdrawal,ReversedorRecoveredintheReportingPeriodInformationofwithdrawalofbaddebtprovision
Unit:RMB
Category | Beginningbalance | ChangesintheReportingPeriod | Endingbalance | |
Withdrawal | Reversalorrecovery | |||
Baddebtprovision | 30,551,719.01 | 120,126.88 | 30,671,845.89 | |
Total | 30,551,719.01 | 120,126.88 | 30,671,845.89 |
4)Top5oftheEndingBalanceofOtherReceivablesCollectedaccordingtotheArrearsParty
Unit:RMB
Nameoftheentity | Nature | Endingbalance | Aging | Proportiontoendingbalanceoftotalotherreceivables% | Endingbalanceofbaddebtprovision |
ChangzhouChangchaiBenniuDieselEngineFittingsCo.,Ltd. | Intercoursefunds | 10,000,000.00 | Within1year | 18.40% | 200,000.00 |
ChangzhouChangchaiHoushengAgriculturalEquipmentCo.,Ltd. | Intercoursefunds | 8,360,314.98 | Within1year | 15.38% | 167,206.30 |
ChangzhouCompressorsFactory | Intercoursefunds | 2,940,000.00 | Over5years | 5.41% | 2,940,000.00 |
ChangchaiGroupImp.&Exp.Co.,Ltd. | Intercoursefunds | 2,853,188.02 | Over5years | 5.25% | 2,853,188.02 |
ChangzhouNewDistrictAccountingCentre | Intercoursefunds | 1,626,483.25 | Over5years | 3.00% | 1,626,483.25 |
Total | -- | 25,779,986.25 | -- | 47.44% | 7,786,877.57 |
3.Long-termEquityInvestment
Unit:RMB
Item | Endingbalance | Beginningbalance | ||||
Carryingamount | Depreciationreserve | Carryingvalue | Carryingamount | Depreciationreserve | Carryingvalue | |
Investmenttosubsidiaries | 251,752,730.03 | 251,752,730.03 | 241,752,730.03 | 241,752,730.03 | ||
Investmenttojointventuresandassociatedenterprises | 44,182.50 | 44,182.50 | 0.00 | 44,182.50 | 44,182.50 | 44,182.50 |
Total | 251,796,912.53 | 44,182.50 | 251,752,730.03 | 241,796,912.53 | 44,182.50 | 241,752,730.03 |
(1)InvestmenttoSubsidiaries
Unit:RMB
Investee | Beginningbalance(carryingvalue) | Increase/decrease | Endingbalance(carryingvalue) | Endingbalanceofdepreciationreserve | |||
Additionalinvestment | Reducedinvestment | Withdrawalofdepreciatio | Other |
nreserve | |||||||
ChangchaiWanzhouDieselEngineCo.,Ltd. | 51,000,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 51,000,000.00 | 0.00 |
ChangzhouChangchaiBenniuDieselEngineFittingsCo.,Ltd. | 96,466,500.00 | 0.00 | 0.00 | 0.00 | 0.00 | 96,466,500.00 | 0.00 |
ChangzhouHoushengInvestmentCo.,Ltd. | 40,000,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 40,000,000.00 | 0.00 |
ChangzhouChangchaiHoushengAgriculturalEquipmentCo.,Ltd. | 7,000,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 7,000,000.00 | 0.00 |
ChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd. | 47,286,230.03 | 0.00 | 0.00 | 0.00 | 0.00 | 47,286,230.03 | 0.00 |
JiangsuChangchaiMachineryCo.,Ltd. | 0.00 | 10,000,000.00 | 0.00 | 0.00 | 0.00 | 10,000,000.00 | 0.00 |
Total | 241,752,730.03 | 10,000,000.00 | 251,752,730.03 |
(2)InvestmenttoJointVenturesandAssociatedEnterprises
Unit:RMB
Invest | Begin | Increase/decrease | Endin | Endin |
ee | ningbalance(carryingvalue) | Additionalinvestment | Reducedinvestment | Gainsandlossesrecognizedundertheequitymethod | Adjustmentofothercomprehensiveincome | Changesofotherequity | Cashbonusorprofitsannouncedtoissue | Withdrawalofimpairmentprovision | Other | gbalance(carryingvalue) | gbalanceofdepreciationreserve |
I.Jointventures | |||||||||||
II.Associatedenterprises | |||||||||||
BeijingTsinghuaXingyeIndustrialInvestmentManagementCo.,Ltd. | 44,182.50 | 44,182.50 | 44,182.50 | ||||||||
Subtotal | 44,182.50 | 44,182.50 | 44,182.50 | ||||||||
Total | 44,182.50 | 44,182.50 | 44,182.50 |
4.OperatingRevenueandCostofSales
Unit:RMB
Item | ReportingPeriod | Sameperiodoflastyear | ||
Operatingrevenue | Costofsales | Operatingrevenue | Costofsales | |
Mainoperations | 1,016,544,011.76 | 895,758,979.30 | 1,105,442,892.03 | 978,595,283.86 |
Otheroperations | 16,785,163.82 | 11,527,336.19 | 15,892,231.12 | 12,482,560.63 |
Total | 1,033,329,175.58 | 907,286,315.49 | 1,121,335,123.15 | 991,077,844.49 |
WhethertheCompanyhasexecutedthenewincomestandards
√Yes□No
5.InvestmentIncome
Unit:RMB
Item | ReportingPeriod | Sameperiodoflastyear |
Investmentincomefromholdingofheld-to-maturityinvestment | 0.00 | 21,000.00 |
Total | 0.00 | 21,000.00 |
XVII.SupplementaryMaterials
1.ItemsandAmountsofNon-recurringProfitorLoss
√Applicable□Notapplicable
Unit:RMB
Item | Amount | Note |
Gains/lossesonthedisposalofnon-currentassets | 988,535.95 | |
Governmentgrantsrecognizedinthecurrentperiod,exceptforthoseacquiredintheordinarycourseofbusinessorgrantedatcertainquotasoramountsaccordingtothegovernment’sunifiedstandards | 129,300.00 | |
Gain/lossfromchangeoffairvalueoftradingassetsandliabilities,andderivativefinancialassetsandliabilities,andinvestmentgainsfromdisposaloftradingfinancialassetsandliabilities,derivativefinancialassetsandliabilities,andothercreditors’investment,otherthanvalidhedgingrelatedtotheCompany’scommonbusinesses | 179,073.85 | |
Reversedportionsofimpairmentallowancesforloanbymandatewhicharetestedindividuallyforimpairment | 4,000,000.00 | |
Othernon-operatingincomeandexpensesotherthantheabove | 349,093.41 | |
Less:Incometaxeffects | 822,508.89 |
Non-controllinginterestseffects | -7,375.16 | |
Total | 4,830,869.48 | -- |
Notes:Thenon-recurringitemsshallbepresentedbytheamountbeforetax.ExplainthereasonsiftheCompanyclassifiesanitemasannon-recurringgain/lossaccordingtothedefinitionintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic—Non-recurringGainsandLosses,orclassifiesanyextraordinarygain/lossitemmentionedinthesaidexplanatoryannouncementasarecurrentgain/lossitem?Applicable√Notapplicable
2.ReturnonEquityandEarningsPerShare
ProfitasofReportingPeriod | WeightedaverageROE(%) | EPS(Yuan/share) | |
EPS-basic | EPS-diluted | ||
NetprofitattributabletoordinaryshareholdersoftheCompany | 0.97% | 0.0339 | 0.0339 |
NetprofitattributabletoordinaryshareholdersoftheCompanyafterdeductionofnon-recurringprofitorloss | 0.73% | 0.0253 | 0.0253 |
3.DifferencesbetweenAccountingDataunderDomesticandOverseasAccountingStandards
(1)DifferencesofNetProfitandNetAssetsDisclosedinFinancialReportsPreparedunderInternationalandChineseAccountingStandards
□Applicable√Notapplicable
(2)DifferencesofNetProfitandNetAssetsDisclosedinFinancialReportsPreparedunderOverseasandChineseAccountingStandards
□Applicable√Notapplicable
PartXIDocumentsAvailableforReference
(I)ThefinancialstatementssignedandsealedbytheCompany’slegalrepresentative,GeneralManagerandheadofthefinancialdepartment(accountantincharge).(II)TheoriginalsofalltheCompany’sdocumentsandannouncementswhichweredisclosedonthewebsitedesignatedbytheCSRCduringtheReportingPeriod.(III)TheInterimReportdisclosedinothersecuritiesmarkets.Theabove-mentioneddocumentsavailableforreferenceareallkeptintheSecretariatoftheBoardofDirectorsoftheCompanyandtheShenzhenStockExchange.ThisInterimReporthasbeenpreparedinbothChineseandEnglish.Shouldtherebeanydiscrepanciesormisunderstandingsbetweenthetwoversions,theChineseversionshallprevail.
TheBoardofDirectorsChangchaiCompany,Limited
29August2019