东沣科技集团股份有限公司 2019 年半年度财务报告
Dongfeng Sci-Tech Group CO., LTD
Semi-Annual Financial Report 2019
I. Audit reports
Whether the semi-annual report was audited or not
□ Yes √ No
The financial report of this semi-annual report was unaudited
II. Financial statements
Units in Notes of Financial Statements is RMB
1. Consolidated balance sheet
Prepared by Dongfeng Sci-Tech Group CO., LTD.
2019-06-30
In RMB
Item 2019-6-30 2018-12-31
Current assets:
Monetary funds 55,053,763.21 36,306,825.10
Settlement provisions
Capital lent
Tradable financial assets
Financial assets measured by fair
value and with variation reckoned into
current gains/losses
Derivative financial assets
Note receivable
Account receivable 11,171.25 11,171.25
Receivable financing
Accounts paid in advance 65,536,585.91 61,099,009.67
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance
receivable
1
东沣科技集团股份有限公司 2019 年半年度财务报告
Other account receivable 12,868,921.61 8,588,597.44
Including: Interest receivable
Dividend receivable
Buying back the sale of financial
assets
Inventories 138,341,067.72 151,585,557.50
Contractual assets
Assets held for sale
Non-current asset due within one
year
Other current assets 17,257,840.46 37,786,874.66
Total current assets 289,069,350.16 295,378,035.62
Non-current assets:
Loans and payments on behalf
Debt investment
Finance asset available for sales 16,331,037.08
Other debt investment
Held-to-maturity investment
Long-term account receivable
Long-term equity investment
Investment in other equity
16,331,037.08
instrument
Other non-current financial assets
Investment real estate
Fixed assets 17,398,133.22 17,302,279.65
Construction in progress 108,179,114.15 101,650,833.16
Productive biological asset 77,262.50 121,437.50
Oil and gas asset
Right-of-use assets
Intangible assets 55,660,162.47 56,686,960.59
Expense on Research and
21,630,362.80 13,346,410.47
Development
Goodwill 1,543,786.41 1,543,786.41
Long-term expenses to be
244,302.74 266,884.56
apportioned
2
东沣科技集团股份有限公司 2019 年半年度财务报告
Deferred income tax asset
Other non-current asset 186,853,053.40 121,743,152.36
Total non-current asset 407,917,214.77 328,992,781.78
Total assets 696,986,564.93 624,370,817.40
Current liabilities:
Short-term loans
Loan from central bank
Capital borrowed
Transactional financial liability
Financial liability measured by fair
value and with variation reckoned into
current gains/losses
Derivative financial liability
Note payable
Account payable 3,626,056.85 6,668,789.67
Accounts received in advance 60,155,267.41 16,269,319.99
Selling financial asset of
repurchase
Absorbing deposit and interbank
deposit
Security trading of agency
Security sales of agency
Wage payable 1,078,748.82 981,089.59
Taxes payable 318,487.97 921,967.58
Other account payable 114,627,139.72 118,570,218.85
Including: Interest payable 193,333.41
Dividend payable
Commission charge and
commission payable
Reinsurance payable
Contractual liability
Liability held for sale
Non-current liabilities due within
one year
Other current liabilities
Total current liabilities 179,805,700.77 143,411,385.68
3
东沣科技集团股份有限公司 2019 年半年度财务报告
Non-current liabilities:
Insurance contract reserve
Long-term loans 172,210,000.00 101,710,000.00
Bonds payable
Including: Preferred stock
Perpetual capital
securities
Lease liability
Long-term account payable
Long-term wages payable
Accrual liability
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 172,210,000.00 101,710,000.00
Total liabilities 352,015,700.77 245,121,385.68
Owner’s equity:
Share capital 706,320,000.00 706,320,000.00
Other equity instrument
Including: Preferred stock
Perpetual capital
securities
Capital public reserve 463,681,309.55 463,681,309.55
Less: Inventory shares 28,826,485.70 19,718,613.55
Other comprehensive income
Reasonable reserve
Surplus public reserve 76,791,550.17 76,791,550.17
Provision of general risk
Retained profit -899,898,115.99 -875,480,247.09
Total owner’ s equity attributable to
318,068,258.03 351,593,999.08
parent company
Minority interests 26,902,606.13 27,655,432.64
Total owner’ s equity 344,970,864.16 379,249,431.72
Total liabilities and owner’ s equity 696,986,564.93 624,370,817.40
4
东沣科技集团股份有限公司 2019 年半年度财务报告
Legal Representative: Zhao Yongsheng
Person in charge of Accounting Works: Zhao Yongsheng
Person in charge of Accounting Institution: Liu Fengguo
2. Balance Sheet of Parent Company
In RMB
Item 2019-6-30 2018-12-31
Current assets:
Monetary funds 48,271,650.80 28,933,135.09
Transactional financial assets
Financial assets measured by fair
value and with variation reckoned into
current gains/losses
Derivative financial assets
Note receivable
Account receivable
Receivable financing
Accounts paid in advance 63,394,718.20 60,821,190.73
Other account receivable 18,975,344.61 80,991,042.06
Including: Interest receivable
Dividend receivable
Inventories 137,311,380.72 150,581,753.98
Contractual assets
Assets held for sale
Non-current assets maturing within
one year
Other current assets 1,195,788.49 24,163,071.63
Total current assets 269,148,882.82 345,490,193.49
Non-current assets:
Debt investment
Available-for-sale financial assets 16,331,037.08
Other debt investment
Held-to-maturity investments
Long-term receivables
5
东沣科技集团股份有限公司 2019 年半年度财务报告
Long-term equity investments 372,803,036.40 272,803,036.40
Investment in other equity
16,331,037.08
instrument
Other non-current financial assets
Investment real estate
Fixed assets 1,398,249.69 1,551,517.36
Construction in progress
Productive biological assets
Oil and natural gas assets
Right-of-use assets
Intangible assets
Research and development costs
Goodwill
Long-term deferred expenses
Deferred income tax assets
Other non-current assets
Total non-current assets 390,532,323.17 290,685,590.84
Total assets 659,681,205.99 636,175,784.33
Current liabilities
Short-term borrowings
Transactional financial liability
Financial liability measured by fair
value and with variation reckoned into
current gains/losses
Derivative financial liability
Notes payable
Account payable 2,971,984.67 6,263,184.67
Accounts received in advance 59,853,495.75 14,427,450.03
Contractual liability
Wage payable 295,130.64 257,362.42
Taxes payable 104,058.87 125,482.71
Other accounts payable 441,038,568.55 432,985,336.27
Including: Interest payable
Dividend payable
Liability held for sale
6
东沣科技集团股份有限公司 2019 年半年度财务报告
Non-current liabilities due within
one year
Other current liabilities
Total current liabilities 504,263,238.48 454,058,816.10
Non-current liabilities:
Long-term loans
Bonds payable
Including: preferred stock
Perpetual capital
securities
Lease liability
Long-term account payable
Long term employee compensation
payable
Accrued liabilities
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities 504,263,238.48 454,058,816.10
Owners’ equity:
Share capital 706,320,000.00 706,320,000.00
Other equity instrument
Including: preferred stock
Perpetual capital
securities
Capital public reserve 456,569,124.55 456,569,124.55
Less: Inventory shares 28,826,485.70 19,718,613.55
Other comprehensive income
Special reserve
Surplus reserve 76,791,550.17 76,791,550.17
Retained profit -1,055,436,221.51 -1,037,845,092.94
Total owner’s equity 155,417,967.51 182,116,968.23
Total liabilities and owner’s equity 659,681,205.99 636,175,784.33
7
东沣科技集团股份有限公司 2019 年半年度财务报告
3. Consolidated Profit Statement
In RMB
Item Semi-annual of 2019 Semi-annual of 2018
I. Total operating income 33,371,413.48 79,815,868.78
Including: Operating income 33,371,413.48 79,815,868.78
Interest income
Insurance gained
Commission charge and
commission income
II. Total operating cost 58,707,615.78 88,084,229.50
Including: Operating cost 28,218,727.77 71,967,495.21
Interest expense
Commission charge and
commission expense
Cash surrender value
Net amount of expense of
compensation
Net amount of withdrawal of
insurance contract reserve
Bonus expense of guarantee slip
Reinsurance expense
Tax and extras 1,081,527.55 2,769,249.06
Sales expense 9,979,002.00 4,902.12
Administrative expense 19,348,119.51 14,487,054.73
R&D expense
Financial expense 80,238.95 -1,144,471.62
Including: Interest
expenses
Interest income 26,346.24 894,404.17
Add: other income 2,890,000.00
Investment income (Loss is
198,770.44 133,320.88
listed with “-”)
Including: Investment income
on affiliated company and joint venture
The termination of income
recognition for financial assets measured
8
东沣科技集团股份有限公司 2019 年半年度财务报告
by amortized cost(Loss is listed with “-”)
Exchange income (Loss is
listed with “-”)
Net exposure hedging income
(Loss is listed with “-”)
Income from change of fair
value (Loss is listed with “-”)
Loss of credit impairment
(Loss is listed with “-”)
Losses of devaluation of asset
-474,939.83
(Loss is listed with “-”)
Income from assets disposal
831,663.08 -18,684.68
(Loss is listed with “-”)
III. Operating profit (Loss is listed with
-24,780,708.61 -5,263,724.52
“-”)
Add: Non-operating income 864.03 3,121.00
Less: Non-operating expense 390,850.83 2,607.78
IV. Total profit (Loss is listed with “-”) -25,170,695.41 -5,263,211.30
Less: Income tax expense 110,309.68
V. Net profit (Net loss is listed with “-”) -25,170,695.41 -5,373,520.98
(i) Classify by business continuity
1.continuous operating net profit
-25,170,695.41 -5,373,520.98
(net loss listed with ‘-”)
2.termination of net profit (net loss
listed with ‘-”)
(ii) Classify by ownership
1.Net profit attributable to owner’s
-24,417,868.90 -5,210,758.22
of parent company
2.Minority shareholders’ gains and
-752,826.51 -162,762.76
losses
VI. Net after-tax of other comprehensive
income
Net after-tax of other comprehensive
income attributable to owners of parent
company
(I) Other comprehensive income
items which will not be reclassified
subsequently to profit of loss
9
东沣科技集团股份有限公司 2019 年半年度财务报告
1.Changes of the defined
benefit plans that re-measured
2.Other comprehensive
income under equity method that cannot
be transfer to gain/loss
3.Change of fair value of
investment in other equity instrument
4.Fair value change of
enterprise's credit risk
5. Other
(ii) Other comprehensive income
items which will be reclassified
subsequently to profit or loss
1.Other comprehensive
income under equity method that can
transfer to gain/loss
2.Change of fair value of
other debt investment
3.gain/loss of fair value
changes for available-for-sale financial
assets
4.Amount of financial assets
re-classify to other comprehensive
income
5.Gain/loss of
held-to-maturity investments that
re-classify to available-for-sale financial
asset
6.Credit impairment
provision for other debt investment
7.Cash flow hedging reserve
8.Translation differences
arising on translation of foreign currency
financial statements
9.Other
Net after-tax of other comprehensive
income attributable to minority
shareholders
VII. Total comprehensive income -25,170,695.41 -5,373,520.98
10
东沣科技集团股份有限公司 2019 年半年度财务报告
Total comprehensive income
-24,417,868.90 -5,210,758.22
attributable to owners of parent Company
Total comprehensive income
-752,826.51 -162,762.76
attributable to minority shareholders
VIII. Earnings per share:
(i) Basic earnings per share -0.035 -0.007
(ii) Diluted earnings per share -0.035 -0.007
Enterprise combine under the same control in the Period, the combined party realized net profit of 0 Yuan before
combination, and realized 0 Yuan at last period for combined party
Legal Representative: Zhao Yongsheng
Person in charge of Accounting Works: Zhao Yongsheng
Person in charge of Accounting Institution: Liu Fengguo
4. Profit Statement of Parent Company
In RMB
Item Semi-annual of 2019 Semi-annual of 2018
I. Operating income 30,461,034.34 76,981,775.06
Less: Operating cost 25,343,639.52 68,854,852.81
Taxes and surcharge 576,407.59 2,330,768.90
Sales expenses 9,972,717.45
Administration expenses 11,730,063.17 5,464,817.12
R&D expenses
Financial expenses -30,943.47 -1,783.91
Including: interest
expenses
Interest income
Add: other income 2,890,000.00
Investment income (Loss is
148,717.94 36,288,157.57
listed with “-”)
Including: Investment income
on affiliated Company and joint venture
The termination of
income recognition for financial assets
measured by amortized cost (Loss is
listed with “-”)
Net exposure hedging income
(Loss is listed with “-”)
11
东沣科技集团股份有限公司 2019 年半年度财务报告
Changing income of fair
value (Loss is listed with “-”)
Loss of credit impairment
(Loss is listed with “-”)
Losses of devaluation of asset
-357,903.38 1,221,802.00
(Loss is listed with “-”)
Income on disposal of assets
(Loss is listed with “-”)
II. Operating profit (Loss is listed with
-17,340,035.36 40,733,079.71
“-”)
Add: Non-operating income
Less: Non-operating expense 251,093.21 2,301.69
III. Total Profit (Loss is listed with “-”) -17,591,128.57 40,730,778.02
Less: Income tax
IV. Net profit (Net loss is listed with
-17,591,128.57 40,730,778.02
“-”)
(i)continuous operating net profit
-17,591,128.57 40,730,778.02
(net loss listed with ‘-”)
(ii) termination of net profit (net
loss listed with ‘-”)
V. Net after-tax of other comprehensive
income
(I) Other comprehensive income
items which will not be reclassified
subsequently to profit of loss
1.Changes of the defined
benefit plans that re-measured
2.Other comprehensive
income under equity method that cannot
be transfer to gain/loss
3.Change of fair value of
investment in other equity instrument
4.Fair value change of
enterprise's credit risk
5. Other
(II) Other comprehensive income
items which will be reclassified
subsequently to profit or loss
1.Other comprehensive
12
东沣科技集团股份有限公司 2019 年半年度财务报告
income under equity method that can
transfer to gain/loss
2.Change of fair value of
other debt investment
3.gain/loss of fair value
changes for available-for-sale financial
assets
4.Amount of financial
assets re-classify to other
comprehensive income
5.Gain/loss of
held-to-maturity investments that
re-classify to available-for-sale financial
asset
6.Credit impairment
provision for other debt investment
7.Cash flow hedging
reserve
8.Translation differences
arising on translation of foreign
currency financial statements
9.Other
VI. Total comprehensive income -17,591,128.57 40,730,778.02
VII. Earnings per share:
(i) Basic earnings per share
(ii) Diluted earnings per share
5. Consolidated Cash Flow Statement
In RMB
Item Semi-annual of 2019 Semi-annual of 2018
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor 71,181,446.41 41,330,719.96
services
Net increase of customer deposit
and interbank deposit
Net increase of loan from central
13
东沣科技集团股份有限公司 2019 年半年度财务报告
bank
Net increase of capital borrowed
from other financial institution
Cash received from original
insurance contract fee
Net cash received from reinsurance
business
Net increase of insured savings
and investment
Cash received from interest,
commission charge and commission
Net increase of capital borrowed
Net increase of returned business
capital
Net cash received by agents in sale
and purchase of securities
Write-back of tax received 19,411.90
Other cash received concerning
38,650,193.44 45,480,140.88
operating activities
Subtotal of cash inflow arising from
109,831,639.85 86,830,272.74
operating activities
Cash paid for purchasing
commodities and receiving labor 23,741,457.32 2,393,155.64
service
Net increase of customer loans and
advances
Net increase of deposits in central
bank and interbank
Cash paid for original insurance
contract compensation
Net increase of financial assets
held for transaction purposes
Net increase of capital lent
Cash paid for interest, commission
charge and commission
Cash paid for bonus of guarantee
slip
Cash paid to/for staff and workers 11,686,149.72 11,135,618.06
14
东沣科技集团股份有限公司 2019 年半年度财务报告
Taxes paid 2,872,965.62 28,912,052.61
Other cash paid concerning
57,283,036.08 10,464,153.41
operating activities
Subtotal of cash outflow arising from
95,583,608.74 52,904,979.72
operating activities
Net cash flows arising from operating
14,248,031.11 33,925,293.02
activities
II. Cash flows arising from investing
activities:
Cash received from recovering
56,900,000.00 8,900,000.00
investment
Cash received from investment
153,949.66 47,503.07
income
Net cash received from disposal of
fixed, intangible and other long-term 623,640.00 29,254,000.00
assets
Net cash received from disposal of
subsidiaries and other units
Other cash received concerning
investing activities
Subtotal of cash inflow from investing
57,677,589.66 38,201,503.07
activities
Cash paid for purchasing fixed,
71,861,360.83 118,301,007.55
intangible and other long-term assets
Cash paid for investment 36,000,000.00
Net increase of mortgaged loans
Net cash received from
-6,612,924.37
subsidiaries and other units obtained
Other cash paid concerning
investing activities
Subtotal of cash outflow from investing
107,861,360.83 111,688,083.18
activities
Net cash flows arising from investing
-50,183,771.17 -73,486,580.11
activities
III. Cash flows arising from financing
activities
Cash received from absorbing
investment
15
东沣科技集团股份有限公司 2019 年半年度财务报告
Including: Cash received from
absorbing minority shareholders’
investment by subsidiaries
Cash received from loans 72,500,000.00
Cash received from issuing bonds
Other cash received concerning
1,468,200.00 2,558,600.00
financing activities
Subtotal of cash inflow from financing
73,968,200.00 2,558,600.00
activities
Cash paid for settling debts 2,000,000.00
Cash paid for dividend and profit
6,712,514.69
distributing or interest paying
Including: Dividend and profit of
minority shareholder paid by
subsidiaries
Other cash paid concerning
9,130,072.15 534,800.00
financing activities
Subtotal of cash outflow from financing
17,842,586.84 534,800.00
activities
Net cash flows arising from financing
56,125,613.16 2,023,800.00
activities
IV. Influence on cash and cash
equivalents due to fluctuation in 266,016.60
exchange rate
V. Net increase of cash and cash
20,189,873.10 -37,271,470.49
equivalents
Add: Balance of cash and cash
33,512,916.99 68,107,388.69
equivalents at the period -begin
VI. Balance of cash and cash
53,702,790.09 30,835,918.20
equivalents at the period -end
6. Cash Flow Statement of Parent Company
In RMB
Item Semi-annual of 2019 Semi-annual of 2018
I. Cash flows arising from operating
activities:
Cash received from selling
69,729,459.05 39,669,174.08
commodities and providing labor
16
东沣科技集团股份有限公司 2019 年半年度财务报告
services
Write-back of tax received 19,411.90
Other cash received concerning
138,321,012.21 92,306,663.50
operating activities
Subtotal of cash inflow arising from
208,050,471.26 131,995,249.48
operating activities
Cash paid for purchasing
commodities and receiving labor 12,747,914.55 7,056,722.87
service
Cash paid to/for staff and workers 4,622,640.41 3,152,939.13
Taxes paid 1,734,963.45 7,392,154.60
Other cash paid concerning
78,906,698.00 117,720,242.64
operating activities
Subtotal of cash outflow arising from
98,012,216.41 135,322,059.24
operating activities
Net cash flows arising from operating
110,038,254.85 -3,326,809.76
activities
II. Cash flows arising from investing
activities:
Cash received from recovering
52,300,000.00
investment
Cash received from investment
148,717.94 47,503.07
income
Net cash received from disposal of
fixed, intangible and other long-term
assets
Net cash received from disposal of
subsidiaries and other units
Other cash received concerning
investing activities
Subtotal of cash inflow from investing
52,448,717.94 47,503.07
activities
Cash paid for purchasing fixed,
4,604,858.63
intangible and other long-term assets
Cash paid for investment 128,300,000.00
Net cash received from
subsidiaries and other units obtained
Other cash paid concerning
17
东沣科技集团股份有限公司 2019 年半年度财务报告
investing activities
Subtotal of cash outflow from investing
132,904,858.63
activities
Net cash flows arising from investing
-80,456,140.69 47,503.07
activities
III. Cash flows arising from financing
activities
Cash received from absorbing
investment
Cash received from loans
Cash received from issuing bonds
Other cash received concerning
1,468,200.00 2,558,600.00
financing activities
Subtotal of cash inflow from financing
1,468,200.00 2,558,600.00
activities
Cash paid for settling debts
Cash paid for dividend and profit
distributing or interest paying
Other cash paid concerning
10,268,863.46 534,800.00
financing activities
Subtotal of cash outflow from financing
10,268,863.46 534,800.00
activities
Net cash flows arising from financing
-8,800,663.46 2,023,800.00
activities
IV. Influence on cash and cash
equivalents due to fluctuation in
exchange rate
V. Net increase of cash and cash
20,781,450.70 -1,255,506.69
equivalents
Add: Balance of cash and cash
26,139,226.98 5,394,019.29
equivalents at the period -begin
VI. Balance of cash and cash
46,920,677.68 4,138,512.60
equivalents at the period -end
7. Statement of Changes in Owners’ Equity (Consolidated)
This Period
In RMB
Item Semi-annual of 2019
18
东沣科技集团股份有限公司 2019 年半年度财务报告
Owners’ equity attributable to parent company
Other
equity instrument Other Minori Total
Perpe Less: compr Provisi ty owners
Share Reaso Surplu Retain
tual Capital Invent ehensi on of Subtot interes ’
capita Prefe nable s ed Other
capit reserve ory ve genera al ts equity
l rred Other reserve reserve profit
al shares incom l risk
stock
secur e
ities
I. Balance at the 706,3 463,68 19,718 76,791 -875,4 351,59 27,655 379,24
end of the last 20,00 1,309. ,613.5 ,550.1 80,247 3,999. ,432.6 9,431.
year 0.00 55 5 7 .09 08 4 72
Add:
Changes of
accounting
policy
Error
correction of the
last period
Enterprise
combine under
the same
control
Other
II. Balance at 706,3 463,68 19,718 76,791 -875,4 351,59 27,655 379,24
the beginning of 20,00 1,309. ,613.5 ,550.1 80,247 3,999. ,432.6 9,431.
this year 0.00 55 5 7 .09 08 4 72
III. Increase/
Decrease in this -24,41 -33,52 -34,27
9,107, -752,8
year (Decrease 7,868. 5,741. 8,567.
872.15 26.51
is listed with 90 05 56
“-”)
(i) Total -24,41 -24,41 -25,17
-752,8
comprehensive 7,868. 7,868. 0,695.
26.51
income 90 90 41
(ii) Owners’
devoted and 9,107, -9,107, -9,107,
decreased 872.15 872.15 872.15
capital
1.Common
shares invested
by shareholders
2. Capital
invested by
holders of other
equity
instruments
19
东沣科技集团股份有限公司 2019 年半年度财务报告
3. Amount
reckoned into
owners equity
with
share-based
payment
9,107, -9,107, -9,107,
4. Other
872.15 872.15 872.15
(III) Profit
distribution
1. Withdrawal
of surplus
reserves
2. Withdrawal
of general risk
provisions
3. Distribution
for owners (or
shareholders)
4. Other
(IV) Carrying
forward internal
owners’ equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with
surplus reserve
4．Carry-over
retained
earnings from
the defined
benefit plans
5．Carry-over
retained
earnings from
other
comprehensive
income
6. Other
(V) Reasonable
reserve
1. Withdrawal
20
东沣科技集团股份有限公司 2019 年半年度财务报告
in the report
period
2. Usage in the
report period
(VI)Others
IV. Balance at 706,3 463,68 28,826 76,791 -899,8 318,06 26,902 344,97
the end of the 20,00 1,309. ,485.7 ,550.1 98,115 8,258. ,606.1 0,864.
report period 0.00 55 0 7 .99 03 3 16
Last Period
In RMB
Semi-annual of 2018
Owners’ equity attributable to parent company
Other
equity instrument Other Minorit
Perp Less: compr Provisi Total
Item y
Share Reaso Surplu Retain owners’
etual Capital Invent ehensi on of Subtot interest
capita Prefe nable s ed Other equity
capit reserve ory ve genera al s
l rred Other reserve reserve profit
al shares incom l risk
stock
secur e
ities
I. Balance at 706,3 463,68 76,791 -882,8 363,92
18,855, 382,783
the end of the 20,00 1,309. ,550.1 64,082 8,776.
204.34 ,981.21
last year 0.00 55 7 .85 87
Add:
Changes of
accounting
policy
Error
correction of
the last period
Enterprise
combine
under the
same control
Other
II. Balance at 706,3 463,68 76,791 -882,8 363,92
18,855, 382,783
the beginning 20,00 1,309. ,550.1 64,082 8,776.
204.34 ,981.21
of this year 0.00 55 7 .85 87
III. Increase/
Decrease in this -5,210, -5,210, 9,464,0 4,253,3
year (Decrease
758.22 758.22 62.33 04.11
is listed with
“-”)
(i) Total
-5,210, -5,210, -162,76 -5,373,
comprehensive
21
东沣科技集团股份有限公司 2019 年半年度财务报告
income 758.22 758.22 2.76 520.98
(ii) Owners’
devoted and 9,626,8 9,626,8
decreased 25.09 25.09
capital
1.Common
shares invested
by shareholders
2. Capital
invested by
holders of other
equity
instruments
3. Amount
reckoned into
owners equity
with
share-based
payment
9,626,8 9,626,8
4. Other
25.09 25.09
(III) Profit
distribution
1. Withdrawal
of surplus
reserves
2. Withdrawal
of general risk
provisions
3. Distribution
for owners (or
shareholders)
4. Other
(IV) Carrying
forward
internal
owners’ equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with
surplus reserve
22
东沣科技集团股份有限公司 2019 年半年度财务报告
4．Carry-over
retained
earnings
from the
defined
benefit plans
5．Carry-over
retained
earnings from
other
comprehensive
income
6. Other
(V) Reasonable
reserve
1. Withdrawal
in the report
period
2. Usage in the
report period
(VI)Others
IV. Balance at 706,3 463,68 76,791 -888,0 358,71
28,319, 387,037
the end of the 20,00 1,309. ,550.1 74,841 8,018.
266.67 ,285.32
report period 0.00 55 7 .07 65
8. Statement of Changes in Owners’ Equity (Parent Company)
This Period
In RMB
Semi-annual of 2019
Other equity instrument
Perpet Other
Capital Less: Reasona Total
Item Share Preferr ual compreh Surplus Retaine
public Inventor ble Other owners’
capital ed capital Other ensive reserve d profit
reserve y shares reserve equity
stock securiti income
es
I. Balance at the 706,32 456,569, 19,718,6 76,791,5
-1,037,
182,116,96
end of the last 0,000.0 845,09
124.55 13.55 50.17 8.23
year 0 2.94
Add:
Changes of
accounting
policy
Error
correction of the
last period
Other
23
东沣科技集团股份有限公司 2019 年半年度财务报告
II. Balance at the 706,32 456,569, 19,718,6 76,791,5
-1,037,
182,116,96
beginning of this 0,000.0 845,09
124.55 13.55 50.17 8.23
year 0 2.94
III. Increase/
Decrease in this 9,107,87 -17,591 -26,699,00
year (Decrease is 2.15 ,128.57 0.72
listed with “-”)
(i) Total -17,591 -17,591,12
comprehensive
,128.57 8.57
income
(ii) Owners’ 9,107,87 -9,107,872
devoted and
2.15 .15
decreased capital
1.Common
shares invested
by shareholders
2. Capital
invested by
holders of other
equity
instruments
3. Amount
reckoned into
owners equity
with share-based
payment
9,107,87 -9,107,872
4. Other
2.15 .15
(III) Profit
distribution
1. Withdrawal of
surplus reserves
2. Distribution
for owners (or
shareholders)
3. Other
(IV) Carrying
forward internal
owners’ equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
24
东沣科技集团股份有限公司 2019 年半年度财务报告
loss with surplus
reserve
4．Carry-over
retained earnings
from the defined
benefit plans
5．Carry-over
retained earnings
from other
comprehensive
income
6. Other
(V) Reasonable
reserve
1. Withdrawal in
the report period
2. Usage in the
report period
(VI)Others
IV. Balance at 706,32 -1,055,
456,569, 28,826,4 76,791,5 155,417,9
the end of the 0,000.0 436,22
124.55 85.70 50.17 67.51
report period 0 1.51
Last period
In RMB
Semi-annual of 2018
Other equity
instrument
Other
Perpet Capital Less: Total
Item Share compre Reasonab Surplus Retained
Preferr ual public Inventor Other owners’
capital hensive le reserve reserve profit
ed capital Other reserve y shares equity
income
stock securit
ies
I. Balance at the 706,32
456,569 76,791, -1,101,45 138,230,15
end of the last 0,000.
,124.55 550.17 0,517.19 7.53
year 00
Add:
Changes of
accounting
policy
Error
correction of
the last period
Other
II. Balance at 706,32
456,569 76,791, -1,101,45 138,230,15
the beginning 0,000.
,124.55 550.17 0,517.19 7.53
of this year 00
25
东沣科技集团股份有限公司 2019 年半年度财务报告
III. Increase/
Decrease in this
40,730,77 40,730,778.
year (Decrease
8.02 02
is listed with
“-”)
(i) Total 40,730,77 40,730,778.
comprehensive
8.02 02
income
(ii) Owners’
devoted and
decreased
capital
1.Common
shares invested
by shareholders
2. Capital
invested by
holders of other
equity
instruments
3. Amount
reckoned into
owners equity
with
share-based
payment
4. Other
(III) Profit
distribution
1. Withdrawal
of surplus
reserves
2. Distribution
for owners (or
shareholders)
3. Other
(IV) Carrying
forward internal
owners’ equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with
surplus reserve
26
东沣科技集团股份有限公司 2019 年半年度财务报告
4．Carry-over
retained
earnings from
the defined
benefit plans
5．Carry-over
retained
earnings from
other
comprehensive
income
6. Other
(V) Reasonable
reserve
1. Withdrawal
in the report
period
2. Usage in the
report period
(VI)Others
IV. Balance at 706,32
456,569 76,791, -1,060,71 178,960,93
the end of the 0,000.
,124.55 550.17 9,739.17 5.55
report period 00
III. Company profile
(i) Registered place, organization structure and head office of the Company
Dongfeng Sci-Tech. Group Co., Ltd. (Hereinafter referred to as Dongfeng Sci-Tech. Group or the Company) was
formerly known as Chengde Dixian Knitting Co., Ltd., and was reorganized on 3 November 1999 by sponsorship,
approved by the People's Government of Hebei Province with the issue of Ji Gu Ban [1999] No.: 36 with license of
the business corporation obtained from Hebei Administration for Industry & Commerce; registered capital while
established amounting as RMB 100,000,000, and RMB 1.00 per share. Among the abovementioned, RMB 85.10
million contributed by Wang Shuxian, representing 7.56 percent of the registered capital; Wang Zhengsong
invested RMB 5.4444 million with 5.44 percent in total registered capital presented; Chengde Longfeng Cosmetics
Co., Ltd. contributed RMB 0.9456 million, a 0.95 percent in registered capital and RMB 0.9456 million
contributed by Chengde Xiabancheng Hongxing Plastics Products Plant with 0.95 percent in registered capital
presented.
On 29 August 2000, according to the Zheng Jian Fa Xing Zi [2000] No.: 121 issued by the China Securities
Regulatory Commission, the Company issued 100,000,000 domestically listed foreign shares in Shenzhen Stock
Exchange dated 19 September 2000; and excised the over-allotment option to increase issuing 15,000,000 B shares
from September 29, 2000 to October 29, 2000. The registered capital of the Company after the issuance of B
shares was RMB 215,000,000 with one Yuan of face value per share.
According to the resolution of the shareholder’s general meeting on March 12, 2002, the Company allotted
43,000,000 bonus shares to all of the shareholders according to the proportion of 2 free shares for every 10 shares,
27
东沣科技集团股份有限公司 2019 年半年度财务报告
and meanwhile increased 107,500,000 shares to all of the shareholding by transferring from capital reserve
according to 5 shares free for every 10 shares. The registered capital of the company was changed to RMB
365,500,000 after it allotted bonus shares and increased by transferring.
According to the resolution of the shareholder’s general meeting on July 22, 2003, the Company allotted
73,100,000 bonus shares to all of the shareholders according to the proportion of 2 free shares for every 10 shares,
and the registered capital of the company was changed to RMB 438,600,000 after such bonus shares were allotted.
On March 11, 2004, approved by the Ministry of Commerce of the People's Republic of China, the Company was
allowed to be changed as a foreign investment limited liability company.
In July 2004, the Company increased 150,000,000 B shares directionally, during which 91,300,000 shares were
subscribed in HK$, and another 58,700,000 shares were subscribed in RMB, upon check by China Securities
Regulatory Commission with the issue [2004] No.101.
According to the resolution of the shareholder’s general meeting on June 8, 2006, the Company allotted
117,720,000 bonus shares to all of the shareholders according to the proportion of 2 free shares for every 10
shares,
On August 4, 2008, according to the judgment ruled by Shenzhen Intermediate People's Court, 112,324,800
sponsor shares held by Wang Shuxian was compensated to Chen Rong for 45,491,544 Yuan, and on August 15,
2008, 96,000,000 sponsor shares held by Wang Shuxian was compensated to Chen Rong for 38,880,000 Yuan
according to the judgment ruled by Dalian Intermediate People's Court.
On November 11, 2009, according to “reply to the approval of capital increase, and change of share as well as
name of Chengde Dixian Knitting Co., Ltd” with No.143 [2009] by Bureau of Commerce of Hebei Province, it
agreed that the Company increased 150,000,000 domestically listed foreign shares in 2004 and allotted 2 bonus
shares free for every 10 shares in 2006; and it agreed that 208,324,800 shares of Dixian stock held by Wang
Shuxian was changed to Chen Rong ; as well as the name of the Company changed to Chengde Dalu Co., Ltd.
Total share capital of the Company was 706,320,000 shares and the registered capital of the Company was
706,320,000 Yuan after the Company’s share increased and allotted,
On 23 August 2011, the Company received the enterprise corporate business license issued from Chengde
Administration for Industry and Commerce, register serial was No.: 130000400001225; registered capital and
paid-up capital was 706.32 million Yuan with corporate type of limited liability company (Sino-foreign joint
venture, listed)
On April 6, 2012, Chen Rong, shareholder of Company, signed a share transfer agreement with Mr. Wang Dong for
transferred all of the 208,324,800 shares held by himself (accounting for 29.49% of total capital of the Company)
to Mr. Wang Dong; After equity transfer the above mentioned, capital contribution proportion of the shareholders
of the Company were: 208.3248 million Yuan invested by Wang Dong, representing 29.49 percent of the register
capital; 18517651 Yuan contributed by Hebei Chengde Northern Industrial Corporation, representing 2.62 percent
of the register capital; 13327891 Yuan invested by Wang Zhengsong, a 0.33 percent in register capital; 2314829
Yuan invested by Chengde Xiabancheng Hongxing Plastics Products Plant, a 0.33 percent in register capital and
461.52 million Yuan contributed by shareholders of domestically listed foreign shares, representing 65.34 percent
28
东沣科技集团股份有限公司 2019 年半年度财务报告
of the register capital.
On 19 September 2012, being verified and approved by Chengde Administration for Industry and Commerce, the
Company’s name changed as Chengde Nanjiang Co., Ltd.
On 15 May 2017, being verified and approved by Chengde Administration for Industry and Commerce, the
Company’s name changed as Dongfeng Sci-Tech Group Co., Ltd
Over the years of bonus issue, rights issue and capitalization, up to 31st December 2017, the issued shares totally
amounting to 706.32 million shares, registered capital of the Company was 706.32 million Yuan; registered
address: Xiabancheng Town, Chengde County, Hebei Province; HQ: Xiabancheng Town, Chengde County, Hebei
Province. The Company has no parent company and Mr. Wang Dong is the first largest shareholder of the
Company and also is the controller of the Company.
(ii) Business scope
R&D and sales of new energy, and new material products as well as technology promotion and technical service;
scientific research of modern ecological agriculture and technology promotion service, wholesales of ecological
agriculture products; import and export trade of goods and technology; Engage in the real estate development and
management in the scope approved by the qualification certificates; property management.
(iii) Business nature and main operating activities of the Company
Dongfeng Sci-Tech Group belongs to the development operation of real estate business, subsidy engaged in new
energy, new materials, property management and agricultural farming and breeding
(iv) Report approval for the financial statement
The statement has been approved by all Directors of the Company dated 28 August 2019 for reporting.
Totally 16 subjects are included in consolidate financial statement, mainly including the follow except the
Company:
Subsidiaries Type Level Shareholding ratio (%) Voting rights ratio (%)
Chengde Kefeng Engineering Project Management Co. Wholly-owned 1 100.00 100.00
Ltd.(hereinafter referred to as “Kefeng Engineering”) subsidiary
Chengde Dongfeng Investment Co., Ltd(hereinafter Wholly-owned 1 100.00 100.00
referred to as “Dongfeng Investment ”) subsidiary
Nanjiang Asia Investment Co., Ltd(hereinafter referred to Wholly-owned 1 100.00 100.00
as “Nanjiang Asia ”) subsidiary
Chengde Kefeng Trading Co., Ltd.(hereinafter referred to Wholly-owned 1 100.00 100.00
as “Kefeng Trading ”) subsidiary
Hangzhou Dongfeng Technology Co. Ltd(hereinafter Wholly-owned 1 100.00 100.00
referred to as “Hangzhou Dongfeng”) subsidiary
Dongguan Dongfeng Technology Development Co., Controlling 1 100.00 100.00
Ltd(hereinafter referred to as “Dongguan Dongfeng subsidiary
Technology ”)
29
东沣科技集团股份有限公司 2019 年半年度财务报告
Chengde Kefeng Aerospace Technology Development Co. Wholly-owned 1 100.00 100.00
Ltd(hereinafter referred to as “Kefeng Aerospace ”) subsidiary
Dongguan Dongfeng Power Tech. Co., Ltd.(hereinafter Controlling 1 100.00 100.00
referred to as “Dongfeng Power ”) subsidiary
Chengde Dongfeng Ecological Agriculture Co., Wholly-owned 2 100.00 100.00
Ltd(hereinafter referred to as “Ecological Agriculture”) sub-subsidiary
Chengde Nanjiang Technology Co. Ltd(hereinafter referred Wholly-owned 2 100.00 100.00
to as “Nanjiang Technology ”) sub-subsidiary
Chengde Huijing Property Services Co., Ltd(hereinafter Wholly-owned 2 100.00 100.00
referred to as “Huijing Property ”) sub-subsidiary
Dongguan Zhongchuang New Energy Technology Co., Controlling 2 60.98 60.98
Ltd(hereinafter referred to as “Zhongchuang New Energy”) sub-subsidiary
Dongguan Dongfeng Intelligent Technology Co., Wholly-owned 2 100.00 100.00
Ltd(hereinafter referred to as “Dongguan Dongfeng sub-subsidiary
Intelligent ”)
Dongguan Aolin New Materials Co., Ltd.(hereinafter Controlling 2 62.00 62.00
referred to as “Aolin New Materials ”) sub-subsidiary
Dongguan Haizhuo Energy Technology Co., Controlling 2 62.00 62.00
Ltd(hereinafter referred to as “Haizhuo Energy ”) sub-subsidiary
IV. Basis of preparation of financial statements
1. Preparation basis
The Company conducts recognition and measurement according to actual occurrence of transactions and issues,
pursuant to the Accounting Standards for Business Enterprises- Basic Standard and specific accounting principle
as well as the application guidance for the accounting principles for enterprise, interpretation to the accounting
principles for enterprise and other related requirements (hereinafter referred to as Enterprise Accounting Principles)
issued by the ministry of finance, on that basis, combining the Information Disclosure Preparation Rules for
Company Public Issuing Securities No.15-General Rules for Financial Report (amended in 2014) of the CSRC for
statement preparation.
2. Going concern
We evaluated the sustainable management ability for 12 months since end of the period, and found out that there
was a significant doubt on sustainable management ability of the associated enterprise Runhua RW, while no
impact on other entity in consolidation scope. Therefore, the financial statement is prepared based on the
continuing operation assumption
V. Major accounting policy and accounting estimation
Notice of specific accounting policy and estimation:
Nil
30
东沣科技集团股份有限公司 2019 年半年度财务报告
1. Statement of Compliance with the Accounting Standards for Business Enterprises
The financial statements prepared by the Company meet the requirements of the Accounting Standards for
Business Enterprises; truthfully and completely reflect the financial status, operation results and cash flow etc. of
the Company.
2. Fiscal period
The fiscal year of the Company is from 1 January to 31 December on basis of Gregorian calendar.
3. Operating cycle
Except for the real estate business, operating cycle of other business is 12 months; The operating cycle of real
estate is determined by the development conditions. Generally has over 12 months from development, sales to the
completion of delivery.
4. Standard currency
The Company and its subsidiaries take RMB as the standard currency for bookkeeping.
5. Accounting treatment for business combinations under the same control and those not
under the same control
1. If the terms, conditions, and economic impact of each transaction involved in business combination
achieved in stages fall within one or more of the following situations, such transactions will be accounted for
as a package deal:
(1) Such transactions are entered into simultaneously or in the case of considering the impact of each other;
(2) Such transactions as a whole in order to reach a complete business results;
(3) The occurrence of a transaction subject to that of at least one other transaction;
(4) One transaction alone is not economic, but otherwise when considered with other transactions.
2. Business combination under the same control
The Company’s assets and liabilities acquired in a business combination are measured by the book value in the
consolidated financial statements of ultimate controlling party in accordance with the assets and liabilities
(including the goodwill formed by the ultimate controlling party’s acquisition to the combined party) of combined
party on combining date. If there is balance between the book value of net assets obtained in merger and the book
value of paid merger consideration (or total face value of issued shares), adjust the stock premium in capital
reserve, and adjust the retained earnings if the stock premium in capital reserve is not enough for writing down.
If there is a contingent consideration needs to confirm the expected liabilities or assets, and there is balance
between the expected liabilities or assets amount and the settlement amount of follow-up contingent consideration,
adjust the capital reserve (capital premium or stock premium), and adjust the retained earnings if the capital
reserve is not enough.
As for business combination realized through numbers of transactions, and if these transactions belong to a bundle
31
东沣科技集团股份有限公司 2019 年半年度财务报告
of transactions, then each of them shall be accounted as a transaction to acquire controlling right; and if not belong
to a bundle of transactions, then the difference between the initial investment cost of the long term equity
investment as of the date on which the Company obtains controlling right and the carrying value of the long term
equity investment prior to combination plus the carrying value of the new consideration paid for further acquisition
of shares as of the combination date shall be used to adjust capital reserve; in case of insufficient capital reserve,
adjust retained earnings. For equity investment held prior to the combination date, the other comprehensive income
recognized due to calculation by equity method or based on recognition and measurement principles for financial
instruments would not be accounted for temporarily until the Company disposes of this investment on the same
basis as the invested enterprise directly disposes of relevant assets or liabilities; other changes of owners’ equity in
the net assets of invested enterprise as recognized under equity method, except for net profit or loss, other
comprehensive income and profit distribution, shall not be accounted for until being transferred to current profit or
loss when this investment is disposed of.
3. Business combination not under the same control
An acquisition date represents the date when the Company obtains the actual control of the acquiree, which means
the date when the net assets or the right of control in relation to production or operation decisions of the acquiree
transfer to the Company. In general, the Company will be deemed to materialize transfer of right of control upon
satisfaction of the following conditions:
①the contracts or agreements relating to business combination has been approved by the internal authority of the
Company.
②consent from the national competent authorities relating to business combination, if required, has been obtained.
③necessary property transfer procedure has been completed.
④the Company has paid a majority of the consolidated consideration, and it is capable of and scheduled to pay the
outstanding balance.
⑤the Company has actually controlled the financing and operating policies of the acquiree, and is entitled to share
relevant benefits and assume relevant risks.
The assets paid and liabilities occurred or assumed by the Company on the acquisition data as the consideration of
the business combination shall be measured at fair value, and the difference between the fair value and its carrying
value shall be included in profit or loss for the period.
The Company confirms the balance that the combined cost is greater than the fair value shares of acquiree’s
recognizable net assets obtained in the combination as the goodwill; the balance that the combined cost is less than
the fair value shares of acquiree’s net identifiable assets obtained in the combination is included in the current
profit and loss after re-checking.
As for the business combination not under the same control realized through several exchange transactions step by
step, part of the package deal, than carrying accounting treatment on transactions with controlling rights obtained
through vary transactions; for equity investment held prior to combination date which is calculated under equity
method, the sum between carrying value of the equity investment prior to acquisition date and cost of additional
investment made on the acquisition date is deemed to be the initial investment cost of this investment. Other
comprehensive income recognized for equity investment held prior to combination date under equity method shall
be accounted for when the Company disposes of this investment on the same basis as the invested enterprise
directly disposes of relevant assets or liabilities. In case that equity investment held prior to combination date is
32
东沣科技集团股份有限公司 2019 年半年度财务报告
calculated based on recognition and measurement principles for financial instruments, then the fair value of this
equity investment as of combination date plus new investment cost shall be deemed as initial investment cost. The
difference between fair value and carrying value of the originally held equity interests and the accumulated fair
value movements as originally recorded in other comprehensive income shall be all transferred to investment
income of the period in which the combination date falls.
4. Relevant expenses from combination
The intermediate expenses occurred for business combination such as audit, legal service and appraisal
consultation expenses and other related expenses shall be recorded in current gains and losses when occurred; the
trading expenses for equity securities offering shall be excluded while reckoned into equity transaction directly.
6. Methods for preparation of consolidated financial statements
1. Consolidated scope
The consolidation scope of the consolidated financial statements of the Company is fixed on the basis of control,
and all subsidiaries (including the independent subject control by the Company) have been consolidated.
2. Consolidated procedure
Based on financial statements of its own and the subsidiaries, the Company establishes the consolidated financial
statements according to other relevant data. The consolidated financial statements established by the Company
regard the whole enterprise group as an accounting subject, and reflect the overall financial situation, operating
results and cash flow of the enterprise group by the uniform accounting policies in accordance with the relevant
confirmation, measurement and presentation requirements of accounting standards.
The accounting policies and accounting period adopted by the subsidiaries taken into account of the consolidation
scope are in line with the Company. If it is not the same as the Company, necessary adjustments will be made
when preparing consolidated financial statements according to the accounting policy and accounting period of the
Company.
When consolidating financial statements, the Company shall offset all effects upon consolidated balance sheet,
consolidated profit statement, consolidated cash flow statement and consolidated statement of changes in equity
arising from the internal transactions between the Company and each subsidiary and between various subsidiaries.
If there is difference between the point of view of consolidated financial statements of enterprise group and the
affirmation to the same transaction by taking the Company or its subsidiaries as the accounting subject, adjust the
transaction from the enterprise group’s point of view.
The ownership interests of subsidiaries, current net profits or losses and shares of current comprehensive income
belonging to minority shareholders are respectively and separately listed under the ownership interest item of
consolidated balance sheet, the net profit item of consolidated profit statement and the total comprehensive income
item. The balance that the current losses shared by the subsidiary's minority shareholders is greater than the shares
in the ownership interests held by the minority shareholders in the beginning period of this subsidiary offsets
against the minority stockholders' interests.
For the subsidiaries acquired through business combination under the same control, take the fair value of its assets
and liabilities (including the goodwill formed by the ultimate controlling party’s acquisition to the combined party)
in the financial statements of ultimate controlling party as a basis to adjust its financial statements.
For the subsidiaries acquired through business combination not under the same control, take the fair value of net
identifiable assets on acquisition date to adjust its financial statements.
(1) Increase subsidiaries or businesses
During the reporting period, if there are subsidiaries or businesses increased by the business combination under the
same control, adjust the opening balance of consolidated balance sheet; include the income, expenses and profits
33
东沣科技集团股份有限公司 2019 年半年度财务报告
of the subsidiaries or business combination from the beginning of the period to the end of the reporting period into
the consolidated profit statement; include the cash flow of the subsidiaries or business combination from the
beginning of the period to the end of the reporting period into the consolidated statement of cash flows, adjust the
relevant items of comparative statements at the same time, and regard that the reporting entity after combination
has been exiting since the ultimate controller starts controlling.
If the control can be implemented to the invested enterprises under the same control due to the additional
investment, it can be regarded that all partied in the combination can be adjusted when the ultimate controller starts
controlling, i.e. by the current status and existence. For the equity investment held before obtaining the control
power of combined party, the relevant profit and loss, other comprehensive income and other changes in net assets
from the later date between the acquisition date of original stock right and the date when the combining party and
combined party are under the same control to the combination date respectively offset against the retained earnings
at the beginning of the period or the current profit and loss in the comparative statement period.
During the reporting period, if there are subsidiaries or businesses increased by the business combination not under
the same control, don’t adjust the opening balance of consolidated balance sheet; include the income, expenses and
profits of the subsidiaries or business combination from the purchase date to the end of the reporting period into
the consolidated profit statement; include the cash flow of the subsidiaries or business combination from the
purchase date to the end of the reporting period into the consolidated statement of cash flows.
If the control can be implemented to the invested enterprises not under the same control due to the additional
investment, the Company re-measures the stock right of acquiree held before the purchase date according to the
fair value of this stock right on the purchase date, the balance between fair value and its book value is included in
the current investment income. Other comprehensive income that the stock right of acquiree held before the
purchase date involving in equity method business accounting and other changes in ownership interest except for
net profit or loss, other comprehensive income and profits distribution, together with its relevant other
comprehensive income and other changes in ownership interest are transferred into the current investment income
attributable to the purchase date, besides the other comprehensive income generated by the changes in the net
indebtedness and net assets re-measured and defined benefit plans by invested enterprises.
(2) Disposal of subsidiaries or businesses
1) General approaches
During the reporting period, if the Company disposes a subsidiary or business, the income, expense and profit of
this subsidiary or business from the beginning of the period to the disposal date are included in the consolidated
income statement; the cash flow of this subsidiary or business from the beginning of the period to the disposal date
are included in the consolidated statement of cash flows.
When control power over invested enterprises are lost due to disposal of some equity investment or other reasons,
the Company re-measure the remaining equity investment after disposal in accordance with its fair value on the
date to lose the control power. The balance by subtracting the sum of consideration obtained by disposing stock
right and fair value of residual equity from the sum of the shares of net assets continuously calculated according to
the original shareholding ratio since the purchase date or combination date of the original subsidiary and the
goodwill are included in the investment income of the current period of losing control power. Other
comprehensive income related to the equity investment of original subsidiary and other changes in ownership
interest except for other net profit and loss, other comprehensive income and profits distribution are transferred
into current investment income when losing the control power, besides the other comprehensive income generated
by the changes in the net indebtedness and net assets re-measured and defined benefit plans by invested
enterprises.
2) Dispose subsidiaries step by step
Dispose a subsidiary's equity investment until losing the control power step by step through multiple transactions,
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东沣科技集团股份有限公司 2019 年半年度财务报告
if the terms, conditions and economic impact of the disposal to various transactions of the subsidiary's equity
investment conform to following one or various conditions, it means that the multiple transactions should have
accounting treatment as a package deal:
A. These transactions are made by considering each other’s impacts;
B. These transactions can only reach a complete business result as a whole;
C. The occurrence of one transaction depends on the occurrence of at least one other transaction;
D. One transaction alone is not economical, but it is economical when it is considered together with other
transactions.
The various transactions that dispose a subsidiary's equity investment until losing the control power belong to a
package deal, the Company handles accounting treatment to various transactions by taking them as a transaction
disposing a subsidiary's equity investment and losing the control power; however, the balance between every
disposal price before losing control power and net asset shares of the subsidiary corresponding to disposal of
investment should be confirmed as other comprehensive income in the consolidated financial statements and
transferred into the profit and loss of the current period of losing control power when losing the control power.
The various transactions that dispose a subsidiary's equity investment until losing the control power and don’t
belong to a package deal, before losing control power, are handled with accounting treatment according to relevant
policies which used to partly dispose the subsidiary's equity investment on the condition of not losing the control
power; when losing the control power, they are handled with accounting treatment according to the general
handling methods used to dispose the subsidiary.
(3) Purchase the minority shareholding of a subsidiary
If there is balance between the Company’s long-term equity investment newly obtained by purchasing the minority
shareholding and the net asset shares of the subsidiary continuously calculated from the acquisition date (or
combination date) according to the newly increased shareholding ratio, adjust the capital stock premium in capital
reserve on consolidated balance sheet, if the capital stock premium in capital reserve is not enough for offset,
adjust the retained earnings.
(4) The partial disposal of equity investments in subsidiaries without losing the control power
If there is balance between the disposal price obtained by the partial disposal of long-term equity investments in
subsidiaries without losing the control power and the net asset shares of the subsidiary continuously calculated
from the acquisition date or combination date corresponding to the disposal of long-term equity investments,
adjust the capital stock premium in capital reserve on consolidated balance sheet, if the capital stock premium in
capital reserve is not enough for offset, adjust the retained earnings.
7. Classification of joint arrangement and accounting for joint operations
1. Classification of joint arrangement
The Company classifies joint venture arrangement into joint operations and joint ventures based on the structure,
legal form, agreed terms of the arrangement and other related facts and conditions.
Joint venture arrangement not concluded through separate entity is classified as joint operation; and those
concluded through separate entity are generally classified as joint ventures. However, joint venture arrangement
which meets any of the following conditions as proven by obvious evidence and satisfies relevant laws and rules is
grouped as joint operation:
1. The legal form of the arrangement shows that parties to the arrangement are entitled to and assume rights and
obligations in respect of the relevant assets and liabilities.
2. It is agreed by the terms of the arrangement that parties to the arrangement are entitled to and assume rights and
obligations in respect of the relevant assets and liabilities.
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东沣科技集团股份有限公司 2019 年半年度财务报告
3. Other related facts and conditions show that parties to the arrangement are entitled to and assume rights and
obligations in respect of the relevant assets and liabilities. For instance, joint parties are entitled to almost all the
output related to joint venture arrangement and settlement of the liabilities under the arrangement continues to
rely on supports from the joint parties.
2. Accounting for joint operations
The Company recognizes its proportion of interests in joint operation as related to the Company, and accounts for
under relevant business accounting principles:
1. To recognize separately-assumed liabilities and jointly-assumed liabilities under its proportion;
2. To recognize revenue from disposal of the output which the Company is entitled to under the proportion;
3. To recognize separately-held assets and jointly-held assets under its proportion;
4. To recognize revenue from disposal of the output under the proportion;
5. To recognize separately occurred expenses, and to recognize expenses occurred for joint operations under its
proportion.
For injection to or disposal of assets of joint operations (other than those assets constituting business operation),
gain or loss arising from the transaction is only recognized to the extent it is attributable to other parties to the joint
operation before the joint operation is sold to any third party. In case those assets injected or disposed satisfy the
condition for asset impairment loss under Business Accounting Principle No.8-Assets Impairment, the Company
recognizes this loss in full.
For acquisition of assets from joint operations (other than those assets constituting business operation), gain or loss
arising from the transaction is only recognized to the extent it is attributable to other parties to the joint operation
before the relevant assets are sold to any third party. In case that the acquired assets satisfy the condition for asset
impairment loss under Business Accounting Principle No.8-Assets Impairment, the Company recognizes relevant
loss according to the proportion it assumes.
The Company exercises no common control over joint operations. If the Company is entitled to relevant assets of
the joint operation and assure relevant liabilities, it shall be accounted for under the above principle, otherwise it
would be accounted for under the relevant business accounting principles.
8. Recognition standards for cash and cash equivalents
When preparing cash flow statement, the Company recognized the stock cash and deposits available for payment
at any time as cash, and investments featuring with the following four characters at the same time as cash
equivalents: short term (expire within 3 months commencing from purchase day), active liquidity, easy to convert
to already-known cash, and small value change risks.
9. Foreign currency business and conversion of foreign currency statement
1. Foreign currency business
For the foreign currency business, the Company converts the foreign currency into RMB for book-keeping based
on spot exchange rate at date of trading occurred while initially recognized.
On balance sheet date, balance of foreign currency monetary items shall be converted based on the spot rate as at
the balance sheet date, and the arising exchange difference shall be recorded in current gains and losses other than
those arising from the special foreign currency borrowings related to purchasing assets qualifying for capitalization
which is treated under the principle of borrowing expense capitalization. As for the foreign currency non-monetary
items measured in historical cost, conversion is still conducted with the spot rate as at the transaction date, without
any change to its functional currency.
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东沣科技集团股份有限公司 2019 年半年度财务报告
As for the foreign currency non-monetary items measured in fair value, conversion is conducted with the spot rate
as at the date for determination of fair value, and the arising exchange difference shall be recorded in current gains
and losses as the changes of fair value. if the foreign currency non-monetary items belong to foreign currency
available for sale, the arising exchange difference shall be recorded in other comprehensive income.
2. Translation of foreign currency financial statement
Assets and liabilities in balance sheet are translated at the spot exchange rate at the balance sheet date. Equity
items, excluding “undistributed profit”, are translated at the spot exchange rates at the transaction dates. As for
those translated at the spot exchange rates at the transaction dates or those recognized in line with the reasonable
method in system, translated at the similar exchange rate as at the transaction date. The resulting translation
differences are recognized in other comprehensive income.
When disposing overseas operations, the foreign currency financial statement translation differences listed under
items of other comprehensive income in balance sheet and which are directly related to the overseas operations are
transferred to profit or loss in the period when the overseas operation is disposed; In case of partial disposal or the
overseas business, which has lower operation ratio overseas without operation controlling loss due to other reason,
the translation differences related to disposal part shall including in equity of minority shareholders, no need to
transfer into current gains/losses. In case of partial disposal of associated or joint venture, foreign currency
translation differences shall be calculated in respect of the disposed part under disposal proportion and transferred
to profit or loss in the period when the overseas operation is disposed.
10. Financial instruments
Financial instrument is the contract that taken shape of the financial asses for an enterprise and of the financial
liability or equity instrument for other units. A financial asset or liability is recognized when the group becomes a
party to a financial instrument contract.
Financial instrument of the Company including monetary funds, account receivable, the equity investment except for
long-term equity investment, trading financial assets, derivative financial instrument, account payable, loans, bond
payable and share capital etc.
(1) Classification and follow-up measurement of financial assets
1) Classification:
According to the business model of managing financial assets and the contractual cash flow
characteristics of financial assets, at initial recognition, the Company classifies the financial assets
into different types: the financial assets measured at amortized cost, the financial assets measured
at fair value and whose changes are included in other comprehensive income, and the financial
assets measured at fair value and whose changes are included in current profit or loss.
The financial assets meet the following conditions simultaneously and such assets are not designated as the financial
assets measured at fair value and whose changes are included in current gains/losses, are classified as the financial
assets measured at amortized cost:
①The business mode for such financial assets are managed aims to collect contractual cash flows;
②as regulated in the contract, the cash flows generated on a specific date are only the payment for the principal
and the interest based on the outstanding principal amount.
The financial assets meet the following conditions simultaneously and such assets are not designated as the financial
assets measured at fair value and whose changes are included in current gains/losses, are classified as the financial
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东沣科技集团股份有限公司 2019 年半年度财务报告
assets measured at fair value and whose changes are included in other comprehensive income:
①The Company's business model for managing such financial assets is to target at both the collection of
contractual cash flows and the sale;
②as regulated in the contract, the cash flows generated on a specific date are only the payment for the principal
and the interest based on the outstanding principal amount.
At initial recognition, the Company irrevocably designated the investment of non-trading equity instrument as the
financial assets measured at fair value and whose changes are included in other comprehensive income. Once the
designation has been made, it shall not be revoked.
Except for the above financial assets measured at amortized cost and measured at fair value and whose changes are
included in other comprehensive income, the Company classifies all other financial assets as financial assets
measured at fair value and whose changes are included in current profit or loss. In the initial recognition, if the
accounting mismatch can be eliminated or significantly reduce, the Company irrevocably designated the financial
assets as the financial assets measured at fair value and whose changes are included in current gains/losses. For the
debt instrument and derivative financial assets held without measured at amortized cost and measured at fair
value and whose changes are included in other comprehensive income, the Company listed them as the trading
financial assets, measured at fair value and with its variation included in current gains/losses. If the assets maturity
exceed one year since the balance sheet date and expected to holds for over one year, it shall be listed as other
non-current financial assets.
2) Follow-up measurement of the financial assets
① Financial assets measured at fair value and with its variation included in current gains/losses
After initial recognition, follow-up measurement of such financial assets are made at fair value. The gains or losses
(interest and dividend revenue included) are reckoned into current gains/losses, unless the financial asset is part of
the hedging relationship.
②Equity instrument investment measured at fair value and with its variation included in other comprehensive
income
After initial recognition, follow-up measurement of such financial assets are made at fair value.The dividend
revenue is reckoned into gains/losses and other gains or losses are reckoned into other comprehensive income.
When being derecognized, the accumulated gains or losses previously recognized in other comprehensive income
are transferred from other comprehensive income and recognized in current profit and loss.
③ Financial assets measured at amortized cost
After initial recognition, such financial assets are measured at amortized cost by using the effective interest method.
Gains or losses arising from financial assets which are measured at amortized cost and are not a component of any
hedging relationship are included in current profit or loss when being derecognized, amortized by effective interest
method, or impaired and reckoned into current gains/losses.
(2) Classification and follow-up measurement of financial liability
The Company classified the financial liability to financial liability measured at fair value and whose changes are
included in current gains/losses and those measured by amortized costs.
1) Financial liability measured at fair value and whose changes are included in current gains/losses
Such financial liabilities include trading financial liabilities (including derivatives that are financial liabilities) and
financial liabilities designated to be measured at fair value and whose changes are included in current gain and loss.
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东沣科技集团股份有限公司 2019 年半年度财务报告
After the initial recognition, such financial liabilities are subsequently measured at fair value, in addition to relevant
to the hedge accounting, the gains or losses (including interest expenses) arising from changes in the fair value of the
financial liabilities are included in current profit and loss.
2)Financial liabilities measured at amortized cost
After initial recognition, such financial liabilities are measured at amortized cost by using the effective interest
method.
(3) Presentation of financial assets and financial liabilities
Financial assets and financial liabilities are presented separately in the balance sheet and are not offset by each
other. However, when meeting the following conditions, the net amount offset by each other shall be presented in
the balance sheet:
① The Company has statutory powers to offset the confirmed amount, and such statutory powers are currently
enforceable;
② The Company plans to settle by net assets, or realize the financial assets and liquidate the financial liabilities at
the same time.
(4) Termination of recognition for financial assets and financial liability
The financial assets shall be terminated for recognition if meets one of the following conditions:
① the contractual right to receive the cash flow of the financial asset is terminated;
②the financial asset has been transferred, and the Company has transferred almost all the risks and remuneration of
ownership of the financial assets to the transferee ;
③the financial asset has been transferred., although the Company has neither transferred nor retained almost all
remuneration of the financial assets, it does not retain control over the financial asset.
(5) Impairment
Based on the expected credit losses, the Company performs impairment accounting treatment on financial assets
measured at amortized cost and confirms the loss provision. Other financial assets measured at fair value held by the
Company are not applicable to the expected credit loss model, including the equity instrument investments measured
at fair value and whose changes are included in current profit and loss, the equity instrument investments
designated to be measured at fair value and whose changes are included in other comprehensive income, and the
derivative financial assets.
1) Measurement of expected credit losses
Expected credit loss refers to the weighted average of credit losses of financial instruments weighted by the risk of
default. Credit loss refers to the difference between all contractual cash flows that the Company discounts at the
original actual interest rate and are receivable in accordance with contract and all cash flows expected to be
received, that is, the present value of all cash shortages.
For accounts receivable, the Company always measures the loss provisions based on the amount of expected credit
loss for the entire duration. The Company calculates the expected credit losses of the above financial assets based on
historical credit loss experience. Relevant historical experience is adjusted based on the specific factors of the
receivables on the balance sheet date and the assessment of current conditions and future economic conditions.
Except for accounts receivable, the Company measures the loss provisions for financial instruments that meet the
following conditions in accordance with the amount of expected credit losses in the next 12 months, and measures
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东沣科技集团股份有限公司 2019 年半年度财务报告
the loss provisions for other financial instruments in accordance with the amount of expected credit losses for the
entire duration.
① The financial instrument only has a lower credit risk on the balance sheet date;
② The credit risk of the financial instrument has not increased significantly since the initial recognition.
2) Lower credit risk
If the risk of default on a financial instrument is low, the borrower’s ability to perform its contractual cash flow
obligations in the short term is strong, and even if the economic situation and operating environment have adverse
changes over a long period of time, it may not necessarily reduce the receivables’ ability of performing their
contractual cash flow obligations, the financial instrument shall be considered to have a lower credit risk.
3) Significant increase in credit risk
The Company compares the risk of default of the financial instruments on the balance sheet date with the risk of
default on the initial recognition date to determine the relative change in default risk of the financial instruments
during the expected duration, and to assess whether the credit risk of the financial instruments has increased
significantly since initial recognition.
When determining whether the credit risk has increased significantly since the initial recognition, the Company
considers reasonable and evidence-based information that can be obtained without unnecessary additional costs or
efforts, including forward-looking information. If the overdue period exceeds 30 days, the Company shall
determine that the credit risk of financial instruments has increased significantly.
4) Financial assets with credit impairment
On the balance sheet date, the Company assesses whether the financial assets measured at amortized cost have
credit impairment. When one or more events that adversely affect the expected future cash flows of a financial
asset occur, the financial asset becomes a financial asset that has suffered credit impairment. Evidence that credit
impairment has occurred in financial assets includes the following observable information:
① The issuer or the debtor has significant financial difficulties.
② The debtor breaches the contract, such as repayment of interest or principal default or overdue.
③ The Company gives concessions to the debtor which will not be made in any other circumstances for economic
or contractual considerations relating to the financial difficulties of the debtor.
④ The debtor is likely to go bankrupt or carry out other financial restructuring.
⑤ The financial difficulties of the issuer or the debtor have caused the active market of the financial assets to
disappear.
⑥ Purchase or originate a financial asset at a substantial discount, and the discount reflects the fact that credit
losses have occurred.
5) Financial instrument portfolios
According to the nature of financial instruments, the Company evaluates the expected credit loss information
based on a single financial instrument or a financial instruments portfolio. The basis for the determination of a
single financial instrument and a financial instruments portfolio is as follows:
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东沣科技集团股份有限公司 2019 年半年度财务报告
Portfolio Basis and accrual method of the credit loss impairment
Loss impairment of financial If there is evidence that the credit risk of a single receivable is large, the loss provision shall
instrument accrual on single basis be separately made for the receivable, and the loss provision is made based on the difference
between the present value of its future cash flow and its book value.
Financial instrument Portfolio I The portfolio is divided according to the credit risk characteristics of the debt unit, mostly
the accounts receivables from the related parties of the Company that have not been impaired
after being tested separately, and the possibility of credit loss of such receivables is
extremely small. This portfolio makes loss provisions by zero to one thousandth.
Financial instrument Portfolio II This portfolio is the part other than the portfolio one and the receivables making a single
provision for loss. This portfolio makes loss provisions for receivables based on historical
loss experience and aging analysis method.
6) Presentation of the expected credit loss provision
In order to reflect the changes in the credit risk of financial instruments since the initial recognition, the Company
re-measures the expected credit losses on each balance sheet date, and the increase or reversal amount of the loss
provisions resulting from this shall be treated as impairment losses or gains and included in the current profit.
For a financial asset measured at amortized cost, the loss provision offsets the book value of the financial assets
shown in the balance sheet.
7) Charge-off
If the Company no longer reasonably expects that the financial asset contract cash flow can be fully or partially
recovered, the book balance of the financial asset shall be directly written down. Such write-downs constitute the
derecognition of related financial assets. This situation usually occurs when the Group determines that the debtor has
no assets or sources of income to generate sufficient cash flow to cover the amount that will be written down.
However, according to the Company's procedures for recovering the due fund, the financial assets that have been
written down may still be affected by the execution activities.
If the financial assets that have been written down are recovered in the future, they shall be taken as the reversal of
the impairment loss and be included in the profit or loss of the current period.
11. Note receivable
12. Account receivable
1.Account receivable with single significant amount and withdrawal bad debt provision on single basis:
Recognition criteria:
Specific standards for single significant account: the amount has over one million Yuan.
Accrual method for bad debt provision of account receivable with single significant amount:
Conducted impairment testing separately, balance between the present value of future cash flow and its carrying
value, bad debt provision withdrawal and reckoned into current gains/losses. As for the receivable without
impairment being out in test, accrual bad debt provision in corresponding group
2. Account receivable with bad debt provision accrual on portfolio
(1) Accrual method recognized according to the credit risk characteristic portfolio:
Bad debt provision accrual by aging analysis:
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东沣科技集团股份有限公司 2019 年半年度财务报告
Account age Accrual ratio for account receivable(%) Accrual ratio for other account receivable(%)
Within one year (one year included) 5 5
1－2 years 20 20
2－3 years 50 50
Over 3 years 100 100
Determine basis for credit risk characteristic:
Receivables with insignificant single amount are divided into several portfolios together with the receivables with
significant single amount that have not been impaired after the separate test according to the credit risk
characteristics, the company determines the bad debt provisions to be made based on the actual loss rate of the
receivables portfolio with similar credit risk characteristics in previous years and combined with the current
situation.
(2)Accrual method recognized according to the credit risk characteristic portfolio:
Basis for determining the portfolio:
Portfolio Accrual method Basis for determining the portfolio
Related parties in Without bad debt provision accrual The related parties included in consolidate scope
consolidate scope
No risks Without bad debt provision accrual According to the nature of the business, it is determined that there is no
credit risk, mainly including employee borrowings and payments from
relevant government functional departments.
3.Account receivable with single minor amount but with bad debt provision accrual on single basis,
disclosed the reasons and accrual method etc. for accrual on single basis
(1) Determining basis on account receivable with single minor amount but with bad debt provision accrual on
single basis:
There is an objective evidence of impairment which is probably about to occurred, such as revocation from the
debtor, bankruptcy or dead, and still able to recover after liquidated by the bankruptcy property or heritage as well
as serious insufficient cash flow etc.
(2) Accrual method for account receivable with single minor amount but with bad debt provision accrual on single
basis:
For those account receivable with objective evidence of impairment been found, separated them from the relevant
groups for impairment testing independently, and impairment losses shall recognized and withdrawal bad debt
reserves on the difference between the present values of estimated future cash flow which is lower than its carrying
value.
13. Account receivable financing
14. Other account receivable
Determining method and accounting treatment on the expected credit loss of other account
receivable
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东沣科技集团股份有限公司 2019 年半年度财务报告
15. Inventory
Whether the company needs to comply with the disclosure requirements of the particular industry
No
1. Classification of inventories
Inventories are categorized into development cost, development products, relocation housing animals & plants
aquaculture plant products, finished goods of polyethylene and low value consumables etc.
2. Valuing of inventory
The Company adopts the historical cost for obtaining or the planned cost to value the inventory according to its
actual situation, and specific identification method for the development projects.
Specific valuation method for consumptive biological assets found more in the biological assets listed in Note
IV(18)
3. Confirmation of net realizable value for the inventory and provision for inventory impairment
The ending inventory is measured at the lower of cost and net realizable value. Provision for impairment of
inventory is determined at the excess amount of the single cost of the inventory over its net realizable value. Net
realizable value is determined based on the estimated selling price in the ordinary course of business, less the
estimated costs to completion and estimated costs necessary to make the sale and related taxes.
In case the influencing factor for write-down of the inventory values has disappeared, the amount which has been
written down can be recover, and shall switch back within the inventory falling price reserves which has been
accrual originally, the amount switch back shall reckoned into current gains/losses.
4. Inventory System
Perpetual inventory system
5. Amortization method for low-value consumables and wrappage
(1) Low-value consumables are amortized on one-off amortization method
6. Relocation housing refers to the house for turnover purpose to arrange for relocation of residents, and
amortized evenly in 50 years.
7. Calculation method of the lands for development purpose
As for the pure land development project, the costs constitute costs of the land development; the project develops
along with the real estate, costs with clear burden of objects shall split into commercial house costs with actual
area.
8. Calculation method of the expenses of public supporting facilities
Public supporting facilities cannot be transfer with compensation: reckoned into commercial house costs by the
benefit ratio;
Public supporting facilities can transfer with compensation: take all supporting facilities as the cost calculation
subject, summarize the costs occurred.
9.Accounting for maintenance funds
According to the relevant provisions at the location of the developed projects, the maintenance funds should be
collected from the house buyer or withdrawn and stated by the Company as development costs of relevant
developed projects at the time of sale (presale) of the developed projects and uniformly turned in to the
maintenance fund management department.
10.Accounting for quality assurance funds
The quality assurance funds should be deducted from the project payment for the construction unit according to the
construction contracts. Maintenance expense incurred in the warranty period of the developed projects should be
written down by the quality assurance funds. The balance of the quality assurance funds should be returned to the
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东沣科技集团股份有限公司 2019 年半年度财务报告
construction unit upon expiry of the specified warranty period of the developed projects.
16. Contract assets
17. Contract cost
18. Assets held for sale
19. Creditors’ investment
20. Other creditors’ investment
21. Long-term account receivable
22. Long-term equity investment
1. Recognition of investment cost
(1) As for the long-term equity investment formed from business combination under the same control, accounting
policy found in (IV) Accounting method for business combination (not) under the same control of Note IV
(2) Long-term equity investment obtained by other means
For long-term equity investments obtained through payment with cash, then the actual payment shall be viewed as
initial investment cost. Initial investment cost including the expenses, taxes and other necessary costs that directly
concerned with the long-term equity investment that acquired.
For long-term equity investments obtained through issuance of equity securities, then the fair value of such
securities shall be viewed as initial investment cost; for transaction expenses from issuing or own equity
instrument acquired, it can be deducted from the equity when such expenses attributable directly to equity
transaction.
Under the precedent condition that non-monetary assets exchanges are featured with commercial nature and fair
values of exchange-in or exchange-out assets can be reliably measured, long-term equity investment exchange-in
through non-monetary assets exchange shall be recognized with initial investment cost on the basis of the fair
value of the assets exchange-out, unless there is obvious evidence showing that fair value of exchange-in assets is
more reliable; as for non-monetary assets exchanges not satisfying such precedent condition, initial investment
cost of exchange-in long-term equity investment falls to the carrying value of exchange-out assets and relevant
taxes payable.
For long-term equity investments obtained through debt reorganization, its initial investment cost is recognized
based on fair value.
2. Subsequent measurement and recognition of gains and losses
(1) Cost method
The long-term equity investment control by invested entity shall counted by cost method, and pricing on initial
investment cost, cost of the long-term equity investment shall be adjusted while additional investment or
dis-investment.
Other than payment actually paid for obtaining investment or cash dividend or profit included in consideration
which has been declared while not granted yet, the Company recognizes investment income according to its share
in the cash dividend or profit declared for grant by the invested unit.
(2) Equity method
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东沣科技集团股份有限公司 2019 年半年度财务报告
The Company calculates long term equity investment in associates and joint ventures under equity method. For
certain equity investments in associates indirectly held through risk investment institutions, joint funds, trust
companies or similar entities including investment linked insurance fund, the Company measures the investment at
fair value through profit or loss.
Where the initial investment cost of a long-term equity investment exceeds the Group’s share of the fair value of
the invested enterprise’s identifiable net assets at the time of acquisition, no adjustment is made to the initial
investment cost. Where the initial investment cost is less than the Group’s share of the fair value of the invested
enterprise’s identifiable net assets at the time of acquisition, the difference is recognized in profit or loss for the
period.
Return on investments and other comprehensive income is recognized respectively by shares of net gains and
losses realized by the invested company and other comprehensive income after acquisition of long-term equity, and
book value of such investment is adjusted accordingly. Profit or cash dividends pro rata distributed by the invested
company are to minus book value of the relative long-term investment. Book value of long-term investment is
adjusted when changes occur other than net gains and losses, other comprehensive income and profit distribution
of the invested company, and is to reported in owners’ equity accordingly
The Company should recognized net profit of invested unit after adjustment, based on fair value of vary
identifiable assets of invested unit while obtained investment, while recognized net profit or net losses of invested
units that should be enjoy by investment enterprise. the un-realized transaction gains/losses attributable to
investment enterprise, internally occurred between the Company, affiliated units and joint-ventures should
calculated by proportion of shares-holding which should be offset, than recognized investment gains/losses.
When the Company is confirmed to share losses of the invested units, the following order shall prevail for disposal:
first of all, offset carrying value of long-term equity investment. Second, for long-term equity investment whose
carrying value is not enough for offset, investment loss should be continued to recognize within the limit of
carrying value of other long-term equity which substantially forms net investment to invested units, to offset
carrying value of long-term items receivable. At last, after the aforesaid treatment, if enterprise still bears
additional duties according to investment contract or agreement, projected liabilities are recognized in accordance
to the obligations which are expected to undertake, and then recorded in current gains and losses.
In the event that the invested unit realizes profit in later periods, the Company will adopt disposal adverse to the
above order after deduction the unrecognized share of loss, i.e. write off the carrying value of the recognized
projected liabilities, recover carrying value of long-term equity which substantially forms net investment to
invested unit and long-term equity investment, and recognize investment income at the same time.
3. Transfer of calculation for long term equity investment
(1) Measure at fair value transfer to equity method
For the equity investment originally held by the Company in which it has no control, common control or
significant influence over the invested enterprise and which is accounted for under recognition and measurement
principle as financial assets, in case that the Company becomes able to exercise significant influence or common
control upon the invested enterprise due to additional investment while no control is reached, the sum of fair value
of the originally held equity investment as determined under Accounting Standards for Business Enterprise No.22-
Recognition and Measurement of Financial Instrument plus cost of the new investment shall be deemed as the
initial investment cost upon calculation under equity method.
If the originally held equity investment is classified as available for sale financial assets, the difference between its
fair value and carrying value and the accumulated fair value movement which is originally included in other
comprehensive income shall be transferred to current period gains and losses under equity method.
In case that the initial investment cost under equity method is lesser than share of fair value of the invested
enterprise’s net identifiable assets as of the date when additional investment is made as calculated based on the
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latest shareholding proportion upon additional investment, carrying value of the long term equity investment shall
be adjusted against such difference which is included in current period non-operating income.
(2) Measure at fair value or calculation under equity method transfer to calculation under cost method
For the equity investment originally held by the Company in which it has no control, common control or
significant influence over the invested enterprise and which is accounted for under recognition and measurement
principle as financial instrument, or for long term equity investment originally held in associates or joint ventures,
in case that the Company becomes able to exercise control over invested enterprise not under common control due
to additional investment, the sum of fair value of the originally held equity investment plus cost of the new
investment shall be deemed as the initial investment cost upon calculation under cost method when preparing
separate financial statement.
For other comprehensive income as recognized under equity method in respect of equity investment held prior to
acquisition date, when the Company disposes this investment, the aforesaid income shall be accounted for on the
same basis as the invested enterprise would otherwise adopt when it directly disposes relevant assets or liabilities.
For equity investment held prior to acquisition date which is accounted for under Business Accounting Principles
No.22- Recognition and Measurement of Financial Assets, the accumulated fair value movement which originally
included in other comprehensive income shall be transferred to current period gains and losses upon calculation
under cost method.
(3) Calculation under equity method transfer to fair value measurement
In case that the Company lost common control or significant influence upon invested enterprise due to disposal of
part equity investment, the remaining equity investment shall be calculated under Accounting Standards for
Business Enterprise No.22- Recognition and Measurement of Financial Instrument, and the difference between its
fair value and carrying value as of the date when the Company lost common control or significant influence shall
be included in current period gains and losses.
For other comprehensive income as recognized under equity method in respect of the original equity investment,
when the Company ceases calculation under equity method, the aforesaid income shall be accounted for on the
same basis as the invested enterprise would otherwise adopt when it directly disposes relevant assets or liabilities.
(4) Cost method transfer to equity method
In case that the Company lost control upon invested enterprise due to disposal of part equity investment, and if the
remaining equity investment can exercise common control or significant influence over the invested enterprise,
equity method shall be adopted when preparing separate financial statement, and the remaining equity investment
shall be adjusted as if it had been stated under equity method since the acquisition.
(5) Cost method transfer to fair value measure
In case that the Company lost control upon invested enterprise due to disposal of part equity investment, and if the
remaining equity investment cannot exercise common control or significant influence over the invested enterprise,
Accounting Standards for Business Enterprise No.22- Recognition and Measurement of Financial Instrument shall
be adopted for accounting treatment when preparing separate financial statement, and the fair value and carrying
value as of the date when control is lost shall be included in current period gains and losses.
4. Disposal of long term equity investment
Difference between carrying value and actual acquisition price in respect of disposal of long term equity
investment shall be included in current period gains and losses. For long term equity investment under equity
method, the Company shall adopt the same basis as the invested enterprise directly disposes relevant assets or
liabilities when disposing this investment, and account for the part originally included in other comprehensive
income under appropriate proportion.
If the terms, conditions and economic impact of each transaction involved in the disposal by steps of investment in
subsidiaries fall into one or more of the following situations, such transactions will be accounted for as a package
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deal:
1. Such transactions are entered into simultaneously or in the case of considering the impact of each other;
2. Such transactions as a whole in order to reach complete commercial results;
3. The occurrence of one transaction is subject to that of at least one other transaction;
4. A transaction alone is not economic, but otherwise when considered with other transactions.
Enterprises that lose control of their original subsidiaries due to the disposal of partial equity investment or
otherwise, and therefore disqualify a package deal, should prepare the relevant accounting treatment in
differentiation with individual financial statements and consolidated financial statement:
(1) In separate financial statement, as for disposal of equity interest, difference between carrying value and actual
acquisition price shall be included in current period gains and losses. In case that the remaining equity interests can
exercise common control or significant influence over invested enterprise, it shall be stated under equity method in
stead, and shall be adjusted as if the remaining equity interests had been stated under equity method since the
acquisition. In case that the remaining equity interests cannot exercise common control or significant influence
over invested enterprise, it shall be accounted for under Business Accounting Principles No.22- Recognition and
Measurement Principle of Financial Instruments, and the difference between its fair value and carrying value as of
the date then the Company lost control shall be included in current period gains and losses.
(2) In consolidated financial statement, for those transactions occurred before lost of control in subsidiaries, the
difference between disposal price and share of net assets of subsidiaries since purchase date or combination date
shall be used to adjust capital reserve (equity premium), and if capital reserve is insufficient to offset, then it shall
adjust retained earnings; when the Company lost control in a subsidiary, the remaining equity interests would be
re-measured at the fair value as of the control-lost date. The sum of consideration gained from the disposal of
equity and the fair value of remaining equity minus the share of net assets of original subsidiaries since the day of
purchase and based on its original shareholding ratio is credited into investment gain for the current period, and
off-set the goodwill at the same time. Other comprehensive income in relation to equity investments of original
subsidiaries should be transferred to investment gain for the period at the time of loss of control.
Each transaction involved in the disposal of equity investments of subsidiaries until loss of control falls into a
package deal, carrying accounting treatment on transaction of losing control rights and disposing the company, and
should be accounted for accordingly in differentiation with individual financial statements and consolidated
financial statements:
(1) In consolidated financial statements, difference between each payment from disposal of an equity and the book
value of such long-term equity investment before the loss of control should be recognized as other comprehensive
income and at the time of loss of control, transferred to profit or loss for the current period.
(2) In consolidated financial statements, difference between each payment from disposal of a subsidiary and the
share of its net assets through investment before the loss of control should be recognized as other comprehensive
income and at the time of loss of control, transferred to profit or loss for the current period.
5. Criteria for common control and significant influence
Where the Company jointly controls an arrangement with other participators under agreed terms, and decisions
which materially affect return of such arrangement can only exist when other participators unanimously agree on
the decisions, the Company is deemed to jointly control this arrangement with other participators, and the
arrangement belongs to joint venture arrangement.
In case of a joint venture arrangement concluded through separate entity, when the Company is judged to be
entitled to the net assets of the separate entity under relevant agreements, the entity shall be viewed as a joint
venture under equity method. However, when the Company is judged to be not entitled to the net assets of the
separate entity under relevant agreements, the entity shall be viewed as a joint operation, in which case, the
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东沣科技集团股份有限公司 2019 年半年度财务报告
Company recognizes items relating to its share of interests from the joint operation and accounts for according to
relevant business accounting rules.
Significant influence refers to that investor has right to participate in making decisions relating to the financial and
operational policies of the invested enterprise, while not able to control or jointly control (with others)
establishment of these policies. The following one or more conditions are based to judge whether the Company has
significant influence over invested enterprise with consideration of all facts and situations: (1) Has delegate in the
board of directors or similar authority organs of invested enterprise; (2) Participate in establishing financial and
operational policies of the invested enterprise; (3) Occur material transactions with the invested enterprise; (4)
Delegate management to the invested enterprise; (5) Provide key technical data to the invested enterprise.
23. Investment real estate
Measurement model of investment real estate
Measure by cost
Depreciation or amortization method
Investment real estate is defined as the real estate with the purpose to earn rent or capital appreciation or both,
including the rented land use rights and the land use rights which are held and prepared for transfer after
appreciation, the rented buildings. Besides, in respect of any vacant building held by the Company ready for
operation lease, if the Board passed a written resolution to expressly indicate that the building will be used for
operation lease and the intention of such hold will not change in a short run, the building shall be presented as
investment property either.
The investment property of the Company is accounted at its cost. Cost of investment property purchased from the
external sources includes purchase payment, related taxes and other expenditures which can be directly attributable
to such assets; Cost of investment property constructed by the Company comprise of the necessary expenditure
occurred during the construction for reaching the condition of planned use.
Consequent measurement of investment estate shall be measured by cost method. Depreciation and amortization
are provided to the buildings and land use right pursuant to the predicted service life and net rate of salvage value.
The predicted service life and net rate of salvage value and annual depreciation (amortization) are listed as follows:
Type Expected operating life (year) Predicted rate of net salvage value Yearly depreciation
(amortization)
Land Use Right 50 0%-10% 1.80%-2.00%
House and buildings 20-28 0%-10% 3.56%-4.50%
When investment real estate turns to be used by holders, it shall switch to fixed assets or intangible assets
commencing from the date of such turning. And when self-used real estate turns to be leased out for rental or
additional capital, the fixed assets or intangible assets shall switch to investment real estate commencing from the
date of such turning. In situation of switch, the carrying value before the switch shall be deemed as the credit value
after the switch.
Indication of impairment is assessed, the recoverable amount shall be estimated and the impairment shall be
recognizing while the recoverable amount lower than its book value.
Impairment loss once recognized shall not be reversed.
When investment is disposed, or out of utilization forever and no economic benefit would be predicted to obtain
through the disposal, the Company shall terminate recognition of such investment real estate. The amount of
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income from disposal, transfer, discarding as scrap or damage of investment real estate after deducting the asset’ s
carrying value and relevant taxation shall be written into current gains and losses.
24. Fixed assets
(1) Recognition
Fixed assets is defined as the tangible assets which are held for the purpose of producing goods, providing services,
lease or for operation & management, and have more than one year of service life. Fixed assets should be
recognized for qualified the followed conditions at the same time: (1) It is probable that the economic benefits
associated with the assets will flow into the Company; and
(2) The cost of the assets can be measured reliably.
(2)Depreciation method
Category Method Years for depreciation Residual rate Annual depreciation rate
Houses and buildings Straight-line method 20.00-28.00 5.00 3.39%-4.75%
Machinery equipment Straight-line method 4.00-5.00 5.00 19.00%-23.75%
Transportation
Straight-line method 5.00-20.00 5.00 4.75%-19.00%
equipment
Other equipment Straight-line method 3.00-5.00 5.00 19.00-31.67%
(3) Basis of asserting, pricing and depreciation method on fixed assets under financing lease
A fixed asset leased by the Company is recognized as the fixed asset held under finance lease if one or more of the
following criteria are met: (1) Upon the expiry of the lease term, the ownership is transferred to the Company. (2)
The Company has the option to purchase the leased asset at a predetermined price that is expected to be much
lower than the fair value of the leased assets when the option is exercised. Therefore, it can be reasonably
determine that the company will exercise this option on the lease start date. (3) The lease term approximates the
useful life of the relevant asset even if the ownership is not transferred. (4) At the inception of the lease, the
present value of the minimum lease payments is substantially equivalent to the fair value of the leased asset. (5)
The leased assets are of such a specialized nature that only the Company can use them without major modification.
A fixed asset held under finance lease is initially recognized at the lower of fair value of the leased asset and the
present value of the minimum lease payments, while the amount of the minimum lease payments will be
recognized as the entry value of long-term account payable, the difference between them will be recognized as
unrecognized financing costs. The initial direct costs such as commissions, attorney’s fees, and travelling expenses,
stamp duties attributable to the leased item incurred during the process of lease negotiating and signing the leasing
agreement shall be recorded in the asset value. Unrealized finance costs will be amortized using actual interest rate
method over each period during the lease terms. The Company adopts depreciation policies for leased assets
consistent with those of self-owned fixed assets for the purpose of calculating the depreciation of a leased asset. If
it is reasonable to be certain that the lessee will obtain the ownership of the leased asset when the lease term
expires, the leased asset shall be fully depreciated over its useful life. If it is not reasonable to be certain that the
lessee will obtain the ownership of the leased asset at the expiry of the lease term, the leased asset shall be fully
depreciated over the shorter one of the lease term or its useful life.
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25. Construction in process
1. Classification of constructions under progress
The construction in progress constructed by the Company on its own shall be measured at the actual cost which
comprises of all the necessary expenses occurred to enable the asset to meet such conditions as required for
expected purpose, including engineering materials cost, labor cost, relevant tax payment, loan expenses which
should be capitalized and indirect expenses which should be amortized, etc.
2. Standard and point of time for construction in process carrying forward to fixed assets
Fixed asset is booked with the entire expenditures occurred in the construction in process till it arrives at predicted
state for use. For those constructions in process of fixed assets which have already arrived at the predicted state for
use, while still with absence of completion settlement, they shall be carried forward to fixed assets at the estimated
value based on engineering budget, construction cost or actual cost commencing from the date of arrival of the
predicted state for use. Meanwhile, they shall be also subject to the depreciation policies applicable to fixed assets
of the Company for provision of depreciation. Once completion settlement is made, the original temporary
estimated value shall be adjusted at the effective cost. However, the original provision of depreciation remains
unchanged.
3. Impairment test and impairment provision for construction in process
The Company determines whether there is evidence of impairment that may occur upon construction in progress at
end of each period.
If there is indication of impairment of construction in progress, the Company shall estimate its recoverable amount.
The recoverable amount is to be determined by the higher between the net price of the fair value of construction in
progress after subtracting costs of disposal and the present value of expected future cash flow from construction in
progress.
When the recoverable amount of construction in progress is below their book value, the book value of construction
in progress shall be written down to its recoverable amount, and the amount of write-down shall recognized as
impairment loss of construction in progress, and included into current profits and losses. At the same time, the
provision for depreciation of construction in progress shall be accrued.
After the recognition, the impairment loss of construction in progress shall not be reversed in subsequent
accounting period.
If there are indications showing that impairment of certain construction in progress is possible, the Company shall
estimate its recoverable amount based on individual construction. If difficult to do so, the Company shall
determine the recoverable amount of the assets group on basis of the asset groups to which the construction in
progress belongs.
26. Borrowing expenses
1. Recognition of the borrowing expenses capitalization
Borrowing expenses that attributed for purchasing or construction of assets that are complying with capitalizing
conditions start to be capitalized and counted as relevant assets cost; other borrowing expenses, reckoned into
current gains and losses after expenses recognized while occurred.
Assets satisfying the conditions of capitalization are those assets of fixed, investment real estate etc. which need a
long period of time to purchase, construct, or manufacturing before becoming usable.
Capitalizing for borrowing expenses by satisfying the followed at same time:
(1) Assets expense occurred, and paid as expenses in way of cash, non-cash assets transfer or debt with interest
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taken for purchasing, constructing or manufacturing assets that complying with capitalizing condition;
(2) Borrowing expenses have occurred;
(3) Necessary activities occurred for reaching predicted usable statues or sale-able status for assets purchased,
constructed or manufactured.
2. Period of capitalization
Capitalizing period was from the time star capitalizing until the time of suspended capitalization. The period for
borrowing expenses suspended excluded in the period.
If purchasing, construction, or manufacturing process of an asset satisfying the conditions of capitalization reached
its predicted usable status or sale-able status, capitalization suspended for borrowing expenses.
If purchasing, construction, or manufacturing process of an asset satisfying the conditions of capitalization
completed projects and usable independently for part of the projects, borrowing expenses for this kind of assets
shall suspended capitalization.
If the assets have been completed in every part, but can be reached the useful status or sale-able status while
completed entirely, the borrowing expense shall be suspended for capitalization while the assets completely
finished in whole.
3. Period of suspended
If purchasing, construction, or manufacturing process of an asset satisfying the conditions of capitalization is
suspended abnormally for over 3 months, capitalizing of borrowing expenses shall be suspended; the suspended
assets that satisfying the conditions of capitalization meets the necessary procedure of reaching predicted usable
status or saleable status, capitalizing of borrowing expenses shall be resumed. The borrowing expenses occurred
during the period of suspended shall reckon into current gains and losses until the purchasing, construction, or
manufacturing process is resumed for capitalizing.
4. Calculation for capitalization amount
Interest expenses practically occurred at the current term of a special borrowing are capitalized after deducting of
the bank saving interest of unused borrowed fund or provisional investment gains
Capitalization amounts of common borrowings are decided by the weighted average of exceeding part of
accumulated asset expenses over the special borrowing assets multiply the capitalizing rate of common borrowings
adopted. Capitalization rates are decided by the weighted average of common borrowings.
For those expenses with discount or premium, determined the amortizable discount or premium in every fiscal year
by effective
interest method, than adjusted interest amount in every period
27. Biological assets
1. Classification
The biological assets of the Company refer to consumptive biological assets and productive biological assets. The
consumptive biological assets including young and livestock etc., productive biological assets including eggs etc.
Biological assets are recognized upon satisfaction of the following conditions:
(1) The company owns or controls the biological asset due to the past transaction or proceeding;
(2) The economic benefits or service potential related to the biological assets are likely to flow into the company;
(3) Cost of the biological assets can be measured reliably.
2.Initial measurement of biological assets
Biological assets acquired by the Company is initially measured at the acquired cost. Cost of purchasing biological
assets comprises of purchase price, relevant tax, delivery expense, insurance premium and other expenditure
directly attributable to purchase of such asset. Biological assets injected by investors are accounted for with the
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value set out in the investment contract or agreement plus tax payable as the carrying value of the assets. However,
if the value set out in the contract or agreement is not fair, the actual cost shall be determined at fair value.
3.Subsequent measurement of biological assets
(1)Subsequent expenditure
The cost of a consumptive biological asset that is propagated or bred by the Company itself is determined
according to the necessary expenses, such as the feed fee, the labor cost and the indirect cost that should be
allocated before the sale. Cost of the self propagating productive biological assets is determined according to the
necessary expenses, such as the feed fee, the labor cost and the indirect cost that should be allocated before the
asset satisfies the expected production and operation purposes. The subsequent expenditures of biological assets
occurred after the asset satisfies the expected production and operation purposes, such as management and
maintenance, raising expenses, etc, are recorded in current profits and losses.
(2)Depreciation of productive biological assets
For such productive biological assets as satisfy their expected production and operation purposes, the Company
makes provision of depreciation over their periods on an average basis. The Company determines its service life
and anticipated net residual value according to the nature and service condition of the productive biological assets
and the anticipated implementation way of the related economic interests. At the end of the year, the Company
re-checks the service life, anticipated net residual value and depreciation method of the productive biological
assets, and adjusts correspondingly if it differs from the original assessment.
The expected service life, anticipated net residual value and yearly depreciation of the productive biological assets
of the Company are as follows:
Category Estimated useful life (Year) Estimated residual rate Yearly depreciation rate
Eggs 1 5% 95%
Sheep and pigs 3 5% 31.67%
(3)Disposal of biological assets
The Company adopts weighted average method to carry forward cost of consumptive biological assets when
acquiring or disposing such asset; cost of a biological asset after change of purpose is determined based on the
carrying value as of such change; for sale, destroy or deficit of a biological asset, the balance between the disposal
income less carrying value and relevant taxes should be recorded in current profit or loss.
4. Impairment of biological assets
The Company conducts inspection of consumptive and productive biological assets at least once at the end of each
year. If there is any evidence proving that the net realizable value of consumptive biological assets or recoverable
amount of productive biological assets is less than carrying value due to natural disaster, disease or insect pests,
animal epidemic disease invasion or market demand change, the assets shall be measured at net realizable value or
recoverable amount. For any difference lower than the carrying value, the Company makes devaluation provision
or impairment provision for biological assets and records in current profit or loss.
In case that the factors affecting impairment of consumptive biological assets disappear, the reduced amount shall
be restored and reverted from the devaluation provision previously made with the amount reverted recorded in
current profit or loss. However, impairment provision for productive biological assets, once made, will be reverted
in no way.
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东沣科技集团股份有限公司 2019 年半年度财务报告
28. Oil and gas assets
29. Right-of-use assets
30. Intangible assets
(1) Pricing method, service life and impairment test
An intangible asset is an identifiable non-monetary asset without physical substance owned or controlled by the
Company, including land use right and non-patented technology etc.
1. Initial measurement of intangible assets
For those intangible assets purchased from outside, the purchase value, relevant taxes and other payments
attributable to predicted purpose obtained should recognized as cost for this assets. For those purchased amount
that paid overdue exceeded the normal credit condition, owns financing natures actually, the cost should be
recognized based on the current value while purchased
As for the intangible assets acquired from the debtor in debt restructuring for the purpose of settlement of debt, the
fair value of the intangible assets shall be based to determine the accounting value. The difference between the
carrying value of restructured debt and the fair value of the intangible assets use for settlement of debt shall be
recorded in current gains and losses.
With the preceding conditions that non-monetary assets exchange has commerce nature and the fair value of the
assets exchanged in or out can be measured reliably, the intangible assets exchanged in through non-monetary
assets exchange are accounted at the value based on the fair value of assets exchanged out, unless there is obvious
evidence showing the fair value of assets exchanged in is more reliable; for non-monetary assets exchange not
qualifying for the preceding conditions, the carrying value of assets exchanged out and related taxes payable shall
be viewed as the cost of intangible assets exchanged in, without recognition of gains and losses.
Intangible assets obtained by means of enterprise combined under common control, recognized book-keeping
value by the book value of combined party; Intangible assets obtained by means of enterprise combined under
different control, recognized book-keeping value by the its fair value.
For those cost of intangible assets development internally including: the used materials, labor cost and register
charge for development; amortization for other patent and concession used and interest expense satisfying the
capitalization condition during process of development; other directly expense before reached its predated useful
purpose.
2. Subsequent measurement
Analysis and determined the service life for intangible assets while obtained. And classified into intangible assets
with limited useful life and assets without certain service life
(1) Intangible assets with limited useful life
Those intangible assets with limited useful life are evenly amortized on straight basis from the date when they
become useful to the end of expected useful life. Particular about the estimation on intangible assets with limited
service life:
Item Predicted useful life Basis
Patent right, trademark right, non-patents and 5-year Within the terms of contractual rights or other statutory
outsourcing software rights
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东沣科技集团股份有限公司 2019 年半年度财务报告
Land Use Right 50-year Within the terms of contractual rights or other statutory
rights
At end of year, revising will be performed on the useful life of intangible assets with limited useful life and the
methods of amortizing, if there is a difference with the original estimation, adjustment shall be implemented
correspondingly
Being revised, the useful life of intangible assets and amortization method at period-end shows the same as
previous
(2) Judgment basis of criterion for intangible assets without certain service life
Intangible assets for which it is impossible to predict the term during which the assets can bring in economic
benefits are viewed as intangible assets with indefinite life.
Intangible assets with indefinite life are not amortized during the holding period, and useful life is re-reviewed at
the end of each accounting period. In case that it is still determined as indefinite after such re-review, then
impairment test will be conducted continuously in every accounting period.
At end of year, revising will be performed on the useful life of intangible assets with uncertain life.
The Company has no such intangible assets without certain service life after review.
(2) Accounting policy for expenditure of internal R&D
1. Detail standard for classification on research stage and exploitation stage
Research stage: stage of a planned investigation or research activity designed to acquire and understand new
scientific or technological knowledge.
Exploitation stage: stage of the activities that produced new or material advance materials, devices and products
that by research results or other knowledge adoption in certain plan or design before the commercial production or
usage.
The expenditure of the research stage in R&D project internally shall reckon into current gains and losses while
occurred.
2. Standards for capitalization satisfaction of expenditure in exploitation state
Intangible assets recognized for expenditure in exploitation stage by satisfying the followed at same time:
(1) Owes feasibility in technology and completed the intangible assets for useful or for sale;
(2) Owes the intention for completed the intangible assets and for sale purpose;
(3) The way in which intangible assets generate economic benefits include proving that the products produced by
the intangible assets exist in the market or that the intangible assets them selves exist in the market, that the
intangible assets will be used internally and that their usefulness can be proved;
(4) Possess sufficient technique, financial resources and other resources for the development of kind of intangible
assets and has the ability for used or for sale;
(5) The expenditure attributable to the exploitation stage for intangible assets could be measured reliably.
31. Impairment of long term assets
Long term asset is judged whether for which there is indication of impairment on balance sheet date. If there is
indication of impairment, the Company would estimate its recoverable amount based on single asset; if it is
difficult to estimate the recoverable amount of single asset, then the assets group which the single asset belongs to
is based to determine the recoverable amount of the assets group.
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Recoverable amount of an asset is determined at the higher of its fair value less disposal fee and present value of
its predicted future cash flow.
If measurement of recoverable amount shows that the recoverable amount of long term asset is lower than carrying
value, and then the carrying value shall be deducted to recoverable amount, with the deducted amount recognized
as impairment loss which is included in current period gains and losses, meanwhile, asset impairment provision
shall be made accordingly. Once recognized, asset impairment loss would not be reversed in future accounting
period.
Once an asset is recognized for impairment loss, its depreciation or amortization expense would be adjusted in
future periods, so as to systematically allocate the adjusted asset carrying value (after deduction of predicted net
residual value) during the remaining useful life.
Goodwill arising from business combination and intangible assets with indefinite useful life shall be tested
annually for impairment whether or not there is indication of impairment.
Goodwill is tested for impairment with the related assets group. When conducting impairment test for relevant
asset group with inclusion of goodwill, in case that there is indication of impairment for such asset group,
impairment test would be firstly conducted in respect of the asset groups without inclusion of goodwill. Then, it
shall calculate the recoverable amount and determine the corresponding impairment loss as compared to its
carrying value. Second, asset group with inclusion of goodwill would be tested for impairment. If it is found after
comparison between the carrying value and recoverable amount of the asset group that the recoverable amount is
less than carrying value, the Company would recognize impairment loss for goodwill.
32. Long-term expenses to be apportioned
1. Amortization method
Long term prepaid expense represents the expense which the Company has occurred and shall be amortized in the
current and later periods with amortization period exceeding one year. Long term prepaid expense amortized on
straight-line method by stages in benefit period.
2. Amortization term
Amortized equally during the benefit period for those long-term expenses whose has a defined benefit period, for
those without a defined benefit period, amortized equally within 5 years.
33. Contract liability
34. Employee compensation
(1) Accounting treatment of short-term remuneration
Short term remuneration refers to all the staff remuneration payable by the Company to its staff within 12 months
after the end of annual reporting period in which staff provides relevant services, other than post office benefit and
dismissal benefits. The Company recognizes short term remuneration payable as liabilities during the accounting
period during which staff provides services, and includes in cost and expense of relevant asset according to the
beneficial parties of such services.
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东沣科技集团股份有限公司 2019 年半年度财务报告
(2) Accounting treatment of post office benefits
Post office benefits refer to kinds of remuneration or benefits granted by the Company to staff for their provision
of service upon retirement or release of employment, other than short term remuneration and dismissal benefits.
Post benefit plan is categorized as defined withdraw plan and defined benefit plan.
Defined withdraw plan under post office benefit mainly represents participation into social basic pension insurance
and unemployment insurance operated by labor and social security authorities. During the accounting period when
employee provides services for the Company, the contribution calculated under defined withdraw plan would be
recognized as liabilities and included in current gains and losses or relevant asset cost.
Defined benefit plans for post-employment benefits are primarily clear and standard outside-plan welfare to pay
the retirees and pay the living expenses for the deceased employees’ family members. For the obligation assumed
in the defined benefit plans, the independent actuaries will accurately calculate by using the expected cumulative
actuarial unit credit method on the balance sheet date, attribute the benefit obligations arising from defined benefit
plan to the period of employee providing services, and include in the current profit or loss or associated asset cost,
thereinto, unless other accounting standards require or allow the employee benefits costs to be included in the asset
cost, the service costs of defined benefit plans and the net interest of net indebtedness and net assets of defined
benefit plans should be included in the current profit and loss in the current occurrence period; changes in the net
indebtedness and net assets of re-measured defined benefit plans should be included in the other comprehensive
income in the current occurrence period, and are not allowed to switch back to profit and loss in the follow-up
accounting period.
(3) Accounting treatment of dismissal benefit
Dismissal benefit represents compensation paid to employees for release of employment before expiration or as
compensation for their willing of cut, if the Company cannot recall the dismissal unilaterally or
re-organization-related costs with dismissal benefit involved in cutting down, the liability arising from
compensation for recognition of labor relationship released, reckoned into current gains/losses at the same time.
(4) Accounting treatment of other long term staff benefits
35. Lease liability
36. Accrual liability
When the Company is involved in proceedings, debt guarantees, onerous contracts and reorganization events, if
such events may require delivery of assets or rendering of services in the future and the amounts of such events
can be reliably measured, accrued liabilities are recognized.
1. Recognition criteria of accrued liability
The Company recognizes the accrued liabilities when obligations related to contingencies satisfy all the following
conditions:
This obligation is a present obligation of the Company;
The performance of such obligation is likely to result in outflow of economic benefits from the Company; and
The amount of the obligation can be measured reliably.
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东沣科技集团股份有限公司 2019 年半年度财务报告
2. Method of measuring of accrued liabilities
Accrued liabilities shall be initially measured at the best estimate of the expenditure required to settle the related
present obligation.
The Company, when determining the best estimate, has had a comprehensive consideration of risks with respect to
contingencies, uncertainties and the time value of money. If the time value of money is significant, the best
estimate shall be determined after discounting the relevant future outflow of cash.
The best estimate will be dealt with separately in the following circumstances:
The expenses required have a successive range (or band), in which the possibilities of occurrence of each result are
the same, and the best estimate should be determined as the middle value for the range, i.e. the average of the
upper and lower limit.
The expenses required does not have a successive range (or band), or although there is a successive range (or
band), the possibilities of occurrence of each result are not the same, if the contingency is related to individual item,
the best estimate should be determined as the most likely amount; where the contingency is related to a number of
items, the best estimate should be calculated and determined according to the possible results and the relevant
possibilities.
When all or part of the expenses necessary for the settlement of an estimated liability of the Company is expected
to be compensated by a third party, the compensation should be separately recognized as an asset only when it is
virtually certain that the compensation will be received. The amount recognized for the compensation should not
exceed the book value of the estimated liability.
37. Share-based payment
1. Category of share-based payment
Share-based payment of the Company divided into share-based payment settled by equity and by cash
2. Determination of fair value of equity instruments
If there is an active market for an equity instrument granted such as share option, the quoted price in the active
market is used to establish the fair value of the equity instrument. If there is no active market for the equity
instrument granted such as share option, the option pricing model is used to determine the fair value. Option
pricing model is elected after taking into account the following factors: (1) Exercise price of the option; (2)
Effective period of the option; (3) Prevailing price of the subject shares; (4) Predicted fluctuation rate of share
prices; (5) Predicted dividend of shares; (6) Risk-free interest rate of the option in effective period.
When determining fair value of equity instruments on the date of grant, influences from market conditions among
conditions available for exercising rights and those not available for exercising rights as provided in share-based
payment agreement should be considered. If there is condition not available for exercising rights in respect of
share-based payment, cost expenses attributable to services received can be recognized provided that employees or
other parties satisfy all the non-market conditions among conditions available for exercising rights (such as service
term).
3. Bases for determining the best estimate for equity instruments with feasible rights
On each balance sheet date during the vesting period, best estimate shall be made based on the latest available
information on change of employees who are entitled to exercise right, and number of equity instruments of the
feasible rights shall be amended accordingly. On the feasible date, the number of instruments of the feasible rights
and interests is eventually predicted to be the same as the actual number of feasible rights.
4. Accounting treatment method
Equity-settled share-based payment is measured at fair value of equity instruments granted to staff. For equity
instruments which are exercise immediately upon grant, they are included in relevant costs or expenses at fair
57
东沣科技集团股份有限公司 2019 年半年度财务报告
value of the instruments as of the date of grant, with increase of capital reserve accordingly. For instruments for
which exercise is conditional upon completion of service in vesting period or satisfaction of required results,
services received in current period are included in relevant costs or expenses and capital reserve at the fair value of
the equity instrument as of the date of grant based on the best estimate of the feasible rights of equity instruments
on each balance sheet date during the vesting period. Recognized relevant costs or expense and total owners’
equity will not be adjusted after the exercise date.
The cash-settled share-based payment shall be measured at the fair value of liabilities identified on the basis of
shares or other equity instruments undertaken by the Group. For the instruments that may be exercised
immediately after the grant, the fair value shall, on the date of the grant, be recognized in relevant costs or
expenses and the liabilities shall be increased accordingly. For instruments that cannot be exercised until the
services are fully provided during vesting period or specified performance targets are met, on each balance sheet
date within the vesting period, the services acquired in the current period shall, based on the best estimate of the
feasible rights, be recognized in relevant costs or expenses and the corresponding liabilities at the fair value of the
liability incurred by the Group. The Group shall, on each balance sheet date and on each account date prior to the
settlement of the relevant liabilities, re-measure the fair values of the liabilities and include the changes in the
profit or loss for the period.
5. Amendment and relevant accounting treatment for those with amendment clauses and condition
concerned
During the vesting period, where an equity instrument award is canceled, it is treated as if it had vested on the date
of cancellation, and any expense not yet recognized for the award is included immediately into the profit or loss
for the period and capital reserve is recognized. Where employees or other parties are permitted to choose to fulfill
non-vesting conditions but have not fulfilled during the vesting period, equity instrument award are deemed
canceled.
38. Other financial instrument as preferred stock and perpetual capital securities
39. Revenue
Whether the company needs to comply with the disclosure requirements of the particular industry
No
Whether implemented the new revenue standards
□Yes √No
Revenue of the Company mainly including revenue from goods selling, sale of real estate, and revenue from
property rent-out and labor service revenue etc.
1. Recognition standards of income from commodity sales:
When main risks and rewards attached to the ownership of goods have been transferred to the buyer, reserved
neither continuous management power nor effective control over the goods, incoming payment can be measured
reliably, relative financial benefit possibly inflow to the company, cost occurred or will occur can be reliably
measured, sales income of goods is recognized.
2. Sales revenue recognition for property industry:
(1) Construction completion and qualified acceptance of properties;
(2) Commercial property pre-sale license granted by relevant state resources and housing bureau;
(3) Enter into sales contract;
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东沣科技集团股份有限公司 2019 年半年度财务报告
(4) Sales contract has been certified and confirmed by property exchange center;
(5) Receive property price or obtain payment certificate from buyers;
(6) Complete deliver procedure for commercial properties.
Upon satisfaction of all the above conditions, the Company recognizes sales revenue
3. Recognition of property leasing revenue:
Property leasing revenue is recognized when the Company receives rental or obtain payment certificate from
buyers based on the payment date and rental amount to be paid by lessee as provided in the contract or agreement
entered into between the Company and the lessee.
4. Labor service revenue
(1) Income of the contract can be measured reliably
(2) Financial benefit attached to the contract is possibly inflow to the company
(3) Schedule of the contracted project can be determined reliably;
(4) And the relevant amount of cost incurred or to be incurred can be measured reliably
5. Recognition basis of revenue from transferring the use right of assets
The economic benefits related to transactions are probable to flow into the Company; and amount of revenue can
be measured reliably.
40. Government grants
1. Type
Government grant represents the monetary and non-monetary assets of the Company obtained from government
agencies for free. Depending on the grantees under relevant government documents, government grant is classified
into grant related to assets and income, respectively.
For such government grant under which no specific grantee is defined, it is classified as grant related to assets or
income depending on the actual grantee. The details relating to relevant judgment reference is set out in note VI to
this financial statement - deferred income/non-operating income.
Government grant related to assets refers to that obtained by the Company for the purpose of acquiring or
otherwise forming long term assets. Government grant related to income refers to that other than that related to
assets.
2.Realization of government grant
Where there are evidences showing that the Company meets the requirements of the financial supporting policies
and it is expected that the financial supporting funds will be received, the government grant is recognized on the
receivables. Otherwise, the government grant is recognized when actually received.
The grant is measured as the amount received or receivable where it takes the form of a cash asset, or at fair value
where it is not a cash asset. Where the fair value cannot be reliably obtained, it should be measured at the nominal
value (RMB1.00). government grants measured at nominal value will be recorded in profit or loss for the period
directly.
3.Accounting treatment
Government grant related to assets constructed or purchased is realized as deferred income, and included in profit
or loss by stages over the assets’ useful life in a reasonable and systematic manner;
Government grant related to income, if it is used to compensate relevant expense or loss of a company to be
occurred in future periods, shall be recognized as deferred income and included in profit or loss during the period
in which the above expense or loss is recognized; if it is used to compensate relevant expense or loss of a company
59
东沣科技集团股份有限公司 2019 年半年度财务报告
incurred, it shall be included in profit or loss upon acquisition.
Government grant related to a company’s normal operation is recognized as other income, and otherwise, as
non-operating income or expense.
Borrowing expense shall be reduced against the government grant received by a company provided that the grant
is related to policy preferential loan discount. If the Company is granted by lending bank with policy preferential
loan interest, the amount of borrowing actually received shall be taken as the carrying value of the borrowing with
borrowing expense calculated based on principal of the borrowing and such policy preferential loan interest.
If a government grant recognized is required to return, carrying value of the asset shall be adjusted if the carrying
value is written down at initial recognition; balance of carrying value of deferred income shall be written down if
there such balance exists with the amount of excess included in current profit or loss; it shall be directly included
in current profit or loss if no relevant deferred income exists.
41. Deferred income tax assets / Deferred income tax liabilities
Deferred tax assets and deferred tax liabilities are calculated and recognized according to the balance between the
tax base and the book value of assets and liabilities (temporary differences). At the balance sheet date, the deferred
tax assets and deferred tax liabilities are measured by the applicable tax rate during the period of expected
recovery of assets or clearing off the liability.
1. The basis for confirming deferred tax assets
The Company takes the taxable income which is likely to be obtained for deducting the deductible temporary
differences and can carry over the deductible loss and tax credits as the limit to confirm the deferred income tax
assets generated by deductible temporary differences. However, the deferred income tax assets generated by the
initial recognition of assets or liabilities in the transactions with following characteristics shall not be recognized:
(1) The transaction is not a business combination; (2) The occurrence of transaction affects neither the accounting
profit nor the taxable income or deductible loss.
For the deductible temporary differences associated with investments in associated enterprises and satisfying the
following conditions, confirm the corresponding deferred income tax assets: temporary difference is likely to be
reversed back in the foreseeable future, and it is likely to obtain the taxable income used for deducting the
deductible temporary differences in the future.
2. The basis for confirming deferred tax liabilities
The company recognizes the currently and previously payable but not paid taxable temporary differences as the
deferred income tax liabilities. But not including:
(1) The temporary differences formed in the initial recognition of goodwill;
(2) Transactions or events formed by non-business combination, and it affects neither the accounting profit nor the
temporary differences formed by taxable income (or deductible loss) when the transactions or events occur;
(3) For the taxable temporary differences related to the subsidiary companies and investments in associated
enterprises, the reversal time of this temporary difference can be controlled and this temporary difference is
unlikely to be reversed back in the foreseeable future.
3. Deferred tax assets and liabilities are offset if all the following conditions are met
(1) An enterprise has the legal rights to settle the income tax assets and income tax liabilities for the current period
by net amount;
(2) They relate to income taxes levied by the same tax authority on either the taxable entity has a legally
enforceable right or set off current income tax assets against current income tax liabilities, and different taxable
entities which either intend to settle the current income tax liabilities and assets on a net basis, or to realize the
60
东沣科技集团股份有限公司 2019 年半年度财务报告
assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax
liabilities or assets are expected to be settled or recovered.
42. Lease
(1) Accounting treatment of operation lease
(1) Assets under operation lease-in
The lease payment paid for leasing assets is amortized under straight line method in the entire lease period without
deduction of lease-for-free period, and is recorded in current expenses. The initial direct expenses paid by the
Company related to lease transactions shall be recorded in current expenses.
If asset leaser assumes the lease related expenses which shall be assumed by the Company, the Company shall
deduct such expenses from the total rental and amortize based on the deducted rental expenses during the lease
period and record in current expenses.
(2) Assets under operation rent-out
The lease fee collected by the Company for assets lease is amortized under straight line method in the entire lease
period without deduction of lease-for-free period, and is realize as lease income. The initial direct expenses paid by
the Company related to lease transactions shall be recorded in current expenses; for significant amount, it shall be
capitalized and recorded in current income in phases under the same basis as realization of lease income in the
entire lease period.
If the Company assumes the lease related expenses which shall be assumed by the lessee, the Company shall
deduct such expenses from the total rental income and allocate based on the deducted rental expenses during the
lease period.
(2) Accounting treatment of financing lease
(1) Assets leased by financing lease: the Company accounts the leased assets at the lower of the fair value of
leased assets and present value of the minimum lease payment on the inception date of the lease, and the minimum
lease payment is deemed as the accounting value of long term account payable, and the difference is taken as
unrealized financing expenses. The identification basis, evaluation and depreciation method for assets leased by
financing lease found more in the Fixed assets in Note IV (15)
The Company amortizes the unrealized financing expenses at effective interest rate method in the asset lease
period and records in finance expenses.
(2) Assets leased out by financing lease: at the beginning of the lease, the Company recognizes the difference
between the sum of financial lease receivable and the unsecured residual value and its present value as unrealized
financing income, and recognized as rental income during the period of rents accepted; the initial direct expenses
incurred by the Company in connection with the lease transaction are included in the initial measurement of
financial lease receivable and the amount of revenue recognized during the lease period is reduced.
43. Other important accounting policies and accounting estimates
Discontinued operation
The Company recognizes a component as discontinued operation component if it meets any of the following
conditions, it has been treated or classified as held for sale and can be distinguished from others:
(1)the component represents an independent major business or a separate major operation region.
(2)the component is a part of a related plan proposed for the purpose of treatment of an independent major
business or a separate major operation region.
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东沣科技集团股份有限公司 2019 年半年度财务报告
(3)the component is a subsidiary particularly acquired for resale.
Impairment loss, reverted amount and other operating gains and losses or disposal gains and losses of discontinued
operation are presented in profit statement as profit or loss from discontinued operation.
44. Changes of main accounting policy and estimate
(1)Changes of accounting policies
□ Applicable √ Not-applicable
(2)Changes in important accounting estimates
□ Applicable √ Not-applicable
(3)Adjustment the financial statements at the beginning of the first year of implementation
of new financial instrument standards, new revenue standards and new leasing standards
√ Applicable □ Not-applicable
Consolidate balance sheet
In RMB
Item 2018-12-31 2019-01-01 Adjustment
Current assets:
Monetary fund 36,306,825.10 36,306,825.10
Settlement provisions
Capital lent
Trading financial assets
Financial assets
measured on fair value and
with its changes reckoned
into the current loss/gain
Derivative financial
assets
Note receivable
Account receivable 11,171.25 11,171.25
Receivables financing
Accounts paid in
61,099,009.67 61,099,009.67
advance
Insurance receivable
Reinsurance receivables
62
东沣科技集团股份有限公司 2019 年半年度财务报告
Contract reserve of
reinsurance receivable
Other account
8,588,597.44 8,588,597.44
receivable
Including: interest
receivable
Dividend
receivable
Buying back the sale of
financial assets
Inventory 151,585,557.50 151,585,557.50
Contract assets
Assets held for sale
Non-current asset due
within one year
Other current assets 37,786,874.66 37,786,874.66
Total current assets 295,378,035.62 295,378,035.62
Non-current assets:
Loans and payments on
behalf
Creditors’ investment
Financial assets
16,331,037.08 -16,331,037.08
available for sale
Other creditors’
investment
Held-to-maturity
investment
Long-term account
receivable
Long-term equity
investments
Other equity instrument
16,331,037.08 16,331,037.08
investment
Other non-current
financial assets
Investment real estate
Fixed assets 17,302,279.65 17,302,279.65
63
东沣科技集团股份有限公司 2019 年半年度财务报告
Construction in process 101,650,833.16 101,650,833.16
Productive biological
121,437.50 121,437.50
asset
Oil and gas asset
Right-of-use asset
Intangible assets 56,686,960.59 56,686,960.59
Expense on Research
13,346,410.47 13,346,410.47
and Development
Goodwill 1,543,786.41 1,543,786.41
Long-term prepaid
266,884.56 266,884.56
expenses
Deferred income tax
asset
Other non-current asset 121,743,152.36 121,743,152.36
Total non-current asset 328,992,781.78 328,992,781.78
Total assets 624,370,817.40 624,370,817.40
Current liabilities:
Short-term loans
Loan from central bank
Capital borrowed
Trading financial
liability
Financial liabilities
measured on the fair value
and with its changes
reckoned into the current
loss/gain
Derivative financial
liability
Notes payable
Accounts payable 6,668,789.67 6,668,789.67
Accounts received in
16,269,319.99 16,269,319.99
advance
Selling financial asset of
repurchase
Absorbing deposit and
interbank deposit
64
东沣科技集团股份有限公司 2019 年半年度财务报告
Security trading of
agency
Security sales of agency
Wage payable 981,089.59 981,089.59
Taxes payable 921,967.58 921,967.58
Other accounts payable 118,570,218.85 118,570,218.85
Including: Interest
193,333.41 193,333.41
payable
Dividend
payable
Commission charge and
commission payable
Reinsurance payable
Contract liability
Liability held for sale
Non-current liabilities
due within one year
Other current liabilities
Total current liabilities 143,411,385.68 143,411,385.68
Non-current liabilities:
Insurance contract
reserve
Long-term loans 101,710,000.00 101,710,000.00
Bonds payable
Including: Preferred
stock
Perpetual
capital securities
Lease liability
Long-term account
payable
Long-term wages
payable
Accrual liability
Deferred income
Deferred income tax
liabilities
65
东沣科技集团股份有限公司 2019 年半年度财务报告
Other non-current
liabilities
Total non-current liabilities 101,710,000.00 101,710,000.00
Total liabilities 245,121,385.68 245,121,385.68
Owners’ equity:
Share capital 706,320,000.00 706,320,000.00
Other equity instrument
Including: Preferred
stock
Perpetual
capital securities
Capital reserve 463,681,309.55 463,681,309.55
Less: treasury stock 19,718,613.55 19,718,613.55
Other comprehensive
income
Reasonable reserve
Surplus reserve 76,791,550.17 76,791,550.17
Provision of general risk
Retained profit -875,480,247.09 -875,480,247.09
Total owner’s equity
attributable to parent 351,593,999.08 351,593,999.08
company
Minority interests 27,655,432.64 27,655,432.64
Total owner’s equity 379,249,431.72 379,249,431.72
Total liabilities and owner’s
624,370,817.40 624,370,817.40
equity
Explanation
Balance sheet of parent company
In RMB
Item 2018-12-31 2019-01-01 Adjustment
Current assets:
Monetary fund 28,933,135.09 28,933,135.09
Trading financial assets
Financial assets
measured on fair value and
with its changes reckoned
into the current loss/gain
66
东沣科技集团股份有限公司 2019 年半年度财务报告
Derivative financial
assets
Note receivable
Account receivable
Receivables financing
Accounts paid in
60,821,190.73 60,821,190.73
advance
Other account
80,991,042.06 80,991,042.06
receivable
Including: interest
receivable
Dividend
receivable
Inventory 150,581,753.98 150,581,753.98
Contract assets
Assets held for sale
Non-current asset due
within one year
Other current assets 24,163,071.63 24,163,071.63
Total current assets 345,490,193.49 345,490,193.49
Non-current assets:
Creditors’ investment
Financial assets
16,331,037.08 -16,331,037.08
available for sale
Other creditors’
investment
Held-to-maturity
investment
Long-term account
receivable
Long-term equity
272,803,036.40 272,803,036.40
investments
Other equity instrument
16,331,037.08 16,331,037.08
investment
Other non-current
financial assets
Investment real estate
67
东沣科技集团股份有限公司 2019 年半年度财务报告
Fixed assets 1,551,517.36 1,551,517.36
Construction in process
Productive biological
asset
Oil and gas asset
Right-of-use asset
Intangible assets
Expense on Research
and Development
Goodwill
Long-term prepaid
expenses
Deferred income tax
asset
Other non-current asset
Total non-current asset 290,685,590.84 290,685,590.84
Total assets 636,175,784.33 636,175,784.33
Current liabilities:
Short-term loans
Trading financial
liability
Financial liabilities
measured on the fair value
and with its changes
reckoned into the current
loss/gain
Derivative financial
liability
Notes payable
Accounts payable 6,263,184.67 6,263,184.67
Accounts received in
14,427,450.03 14,427,450.03
advance
Contract liability
Wage payable 257,362.42 257,362.42
Taxes payable 125,482.71 125,482.71
Other accounts payable 432,985,336.27 432,985,336.27
Including: Interest
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东沣科技集团股份有限公司 2019 年半年度财务报告
payable
Dividend
payable
Liability held for sale
Non-current liabilities
due within one year
Other current liabilities
Total current liabilities 454,058,816.10 454,058,816.10
Non-current liabilities:
Long-term loans
Bonds payable
Including: Preferred
stock
Perpetual
capital securities
Lease liability
Long-term account
payable
Long-term wages
payable
Accrual liability
Deferred income
Deferred income tax
liabilities
Other non-current
liabilities
Total non-current liabilities
Total liabilities 454,058,816.10 454,058,816.10
Owners’ equity:
Share capital 706,320,000.00 706,320,000.00
Other equity instrument
Including: Preferred
stock
Perpetual
capital securities
Capital reserve 456,569,124.55 456,569,124.55
Less: treasury stock 19,718,613.55 19,718,613.55
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东沣科技集团股份有限公司 2019 年半年度财务报告
Other comprehensive
income
Reasonable reserve
Surplus reserve 76,791,550.17 76,791,550.17
Retained profit -1,037,845,092.94 -1,037,845,092.94
Total owner’s equity 182,116,968.23 182,116,968.23
Total liabilities and owner’s
636,175,784.33 636,175,784.33
equity
Explanation
(4)Retrospective adjustment of early comparison data description when initially
implemented the new financial instrument standards and new leasing standards
√ Applicable □ Not-applicable
1) The Company prepared the 2019 annual financial statement in accordance with the Ministry of Finance's Notice
on Amending the 2019 Annual Financial Statement Form of General Enterprises (CK [2019] No. 6) and the
Accounting Standards for Business Enterprises, this accounting policy change adopted the retrospective
adjustment method. Report items and amounts of the 2018 Annual Financial Statement that were significantly
affected are as follows:
Former items and amount New items and amount
Note receivable and account 11,171.25 Note receivable
receivable Account receivable 11,171.25
Notes payable and accounts 6,668,789.67 Notes payable
payable Accounts payable 6,668,789.67
2)The revised Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial
Instruments, the Accounting Standards for Business Enterprises No. 23 - Transfer of Financial Assets, Accounting
Standards for Business Enterprises No. 24 - Hedge Accounting and Accounting Standards for Business Enterprises
No. 37 – Financial Instruments Presentation (hereinafter referred to as new financial instrument standards)are
implemented by the Company since 1st January 2019. According to the relevant convergence rules for new and old
standards, the information of the comparable period will not be adjusted. The difference between the
implementation of the new standard and the original standard on the first implementation date is retrospectively
adjusted to the retained earnings or other comprehensive income at the beginning of the reporting period.
① Impact on the financial statement as of 1st Jan. 2019 by implementation of new financial instrument standards:
Item Balance sheet
2018 - 12 - 31 Adjustment under new financial 2019 - 1 - 1
instrument standards
Financial assets available for 16,331,037.08 -16,331,037.08
sale
Other equity instrument 16,331,037.08 16,331,037.08
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东沣科技集团股份有限公司 2019 年半年度财务报告
investment
② Contrast of the classification and measurement of the financial assets and liability under new financial instrument
standards with those under former financial instrument standards on 1 st Jan. 2019:
Item Former financial instrument standards New financial instrument standards
Measurement type Book value Measurement type Book value
Financial assets available Measured at cost 16,331,037.08
for sale
Other equity instrument Measured at cost 16,331,037.08
investment
45. Other
VI. Taxes
1. Main tax and tax rate
Taxes Basis Rate
Sales of goods, taxable sales service
VAT 5%, 9%, 13%
income, intangible assets or real property
Urban maintenance and construction tax Turnover tax payable 5%
Enterprise income tax Taxable income 25%
Educational surtax Turnover tax payable 3%
Local educational surtax Turnover tax payable 2%
Rental income or original value of the
Property tax 12% or 1.2%
property
As for the taxpaying body with different tax rate for enterprise income tax, disclosed explanations:
Taxpaying body Rate for income tax
Dongfeng Sci-Tech Group 25%
Kefeng Engineering 25%
Dongfeng Investment 25%
Nanjiang Asia 16.5%
Kefeng Trading 25%
Hangzhou Dongfeng 25%
Dongguan Dongfeng Technology 25%
Kefeng Aerospace 25%
Dongfeng Power 25%
Ecological Agriculture 25%
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东沣科技集团股份有限公司 2019 年半年度财务报告
Nanjiang Technology 25%
Huijing Property 25%
Zhongchuang New Energy 25%
Dongguan Dongfeng Intelligent 25%
Aolin New Materials 25%
Haizhuo Energy 25%
2. Tax preference
3. Other
Nanjiang Asia paying taxes in Hong Kong Special Administrative Region (HKSAR) with income tax rate of
16.5%
VII. Notes to the main items of consolidate financial statements
1. Monetary fund
In RMB
Item Ending balance Opening balance
Cash in stock 181,507.39 368,614.69
Bank deposit 53,521,282.70 12,986,115.85
Other monetary fund 1,350,973.12 22,952,094.56
Total 55,053,763.21 36,306,825.10
Including: total amount deposit aboard 134,845.32 5,626,045.88
Other explanation
Monetary fund with restrictions:
Item Ending balance Opening balance
Margin of housing mortgage 1,350,973.12 2,793,908.11
Total 1,350,973.12 2,793,908.11
2. Account receivable
(1)By category
In RMB
Category Ending balance Opening balance
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东沣科技集团股份有限公司 2019 年半年度财务报告
Book balance Bad debt provision Book balance Bad debt provision
Book
Proportio Accrual Proportio Accrual Book value
Amount value Amount
Amount Amount
ratio ratio
n n
Account receivable
with bad debt 2,364,21 2,364,21 2,364,219 2,364,219
96.65% 100.00% 96.65% 100.00%
provision accrual on 9.40 9.40 .40 .40
single basis
Including:
Account receivable
with bad debt 82,138.8 70,967.6
3.36% 86.40% 11,171.25 82,138.85 3.36% 70,967.60 86.40% 11,171.25
provision accrual on 5 0
portfolio
Including:
2,446,35 2,435,18 2,446,358 2,435,187
Total 100.00% 99.54% 11,171.25 100.00% 99.54% 11,171.25
8.25 7.00 .25 .00
Accrual of bad debt provision on single basis:
In RMB
Ending balance
Name
Book balance Bad debt provision Accrual ratio Reasons of accrual
Beijing Xiangeqing
Industrial & Trade Co., 2,320,047.40 2,320,047.40 100.00% Unrecoverable
Ltd.
Total 2,320,047.40 2,320,047.40 -- --
Accrual of bad debt provision on single basis:
In RMB
Ending balance
Name
Book balance Bad debt provision Accrual ratio Reasons of accrual
Inner Mongolia Ajinnai
Horse Culture 44,172.00 44,172.00 100.00% Unrecoverable
Development Co., Ltd.
Total 44,172.00 44,172.00 -- --
Accrual of bad debt provision on single basis:
In RMB
Ending balance
Name
Book balance Bad debt provision Accrual ratio Reasons of accrual
Accrual of bad debt provision on portfolio:
In RMB
73
东沣科技集团股份有限公司 2019 年半年度财务报告
Ending balance
Name
Book balance Bad debt provision Accrual ratio
Account age 82,138.85 70,967.60 86.40%
Total 82,138.85 70,967.60 --
Explanation on portfolio basis:
Accrual of bad debt provision on portfolio:
In RMB
Ending balance
Name
Book balance Bad debt provision Accrual ratio
Explanation on portfolio basis:
If the provision for bad debts of account receivable is made in accordance with the general model of expected
credit losses, please refer to the disclosure of other account receivable to disclose related information about
bad-debt provisions:
□ Applicable √ Not-applicable
By account age
In RMB
Account age Ending balance
1-2 years 10,150.00
2-3 years 6,102.50
Over 3 years 65,886.35
3-4 years 65,886.35
Total 82,138.85
(2)Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
In RMB
Current changes
Category Opening balance Ending balance
Accrual Collected or reversal Charge-off
Including important amount of bad debt provision collected or reversal in the period:
In RMB
Enterprise Amount collected or reversal Collection way
(3) Account receivables actually charge-off during the reporting period
In RMB
74
东沣科技集团股份有限公司 2019 年半年度财务报告
Item Amount charge-off
Including major account receivables charge-off:
In RMB
Amount cause by
Procedure for
Enterprise Nature Amount charge-off Causes related transactions
charge-off
or not (Y/N)
Explanation on account receivable charge-off
(4)Top five account receivables collected by arrears party at ending balance
Enterprise Ending balance Ratio in total account Bad debt provision accrual
receivable at
period-end(%)
Beijing Xiangeqing Industrial & Trade Co., 2,320,047.40 94.84 2,320,047.40
Ltd.
Electricity Authority of Chengde County 82,138.85 3.36 70,967.60
Inner Mongolia Ajinnai Horse Culture 44,172.00 1.80 44,172.00
Development Co., Ltd.
Total 2,446,358.25 100.00 2,435,187.00
(5)Account receivable de-recognition due to financial assets transfer
(6)Assets and liabilities resulted by account receivable transfer and continues involvement
Other explanation:
3. Receivables financing
In RMB
Item Ending balance Opening balance
Change of receivables financing and fair value in the period
□ Applicable √ Not-applicable
If the provision for bad debts of receivable financing is made in accordance with the general model of expected
credit losses, please refer to the disclosure of other account receivable to disclose related information about bad-debt
provisions:
□ Applicable √ Not-applicable
Other explanation:
75
东沣科技集团股份有限公司 2019 年半年度财务报告
4. Accounts paid in advance
(1)By account age
In RMB
Ending balance Opening balance
Account age
Amount Ratio Amount Ratio
Within one year 65,526,254.96 99.98% 61,088,678.72 99.98%
1-2 years 3,431.50 0.01% 3,431.50 0.01%
2-3 years 6,899.45 0.01% 6,899.45 0.01%
Total 65,536,585.91 -- 61,099,009.67 --
Explanation on accounts paid in advance with over one year in age and reasons of un-settle:
(2)Top 5 account paid in advance collected by objects at ending balance
Enterprise Ending amount Ratio in total account
Time of repayment Un-settle reasons
paid in advance(%)
Chengde Wanxuan Construction 57,201,340.00 87.28% Within one year Not in settlement period
Engineering Co., Ltd.
Chengde Wanrong Real Estate 4,232,226.00 6.46% Within one year Not in settlement period
Development Co., Ltd.
Beijing Jianyan Lianhe Architectural 1,900,000.00 2.90% Within one year Not in settlement period
Design Consulting Co., Ltd.
Elfa International Supply Chain 999,150.00 1.52% Within one year Not in settlement period
Management Co., Ltd.
Beijing Tiangao Diaphragm 494,000.00 0.75% Within one year Not in settlement period
Compressor Co., Ltd.
Total 64,826,716.00 98.92% --- ---
Other explanation:
5. Other account receivable
In RMB
Item Ending balance Opening balance
Other account receivable 12,868,921.61 8,588,597.44
Total 12,868,921.61 8,588,597.44
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东沣科技集团股份有限公司 2019 年半年度财务报告
(1)Interest receivable
1)Category
In RMB
Item Ending balance Opening balance
2)Major overdue interest
In RMB
Whether has impairment
Borrower Ending balance Overdue time Causes occurred and
determination basis
Other explanation:
3)Accrual of bad debt provision
□ Applicable √ Not-applicable
(2)Dividend receivable
1)Category
In RMB
Item (or invested company) Ending balance Opening balance
2)Major dividend receivable with over one year aged
In RMB
Whether has impairment
Item (or invested Causes of failure for
Ending balance Account age occurred and
company) collection
determination basis
3)Accrual of bad debt provision
□ Applicable √ Not-applicable
Other explanation:
(3)Other account receivable
1)By nature
In RMB
Nature Ending book balance Opening book balance
Debt auction 1,209,273.00 1,209,273.00
Margin 1,577,000.00 1,520,000.00
Petty cash 1,249,317.09 1,485,155.23
Refund of the VAT of land 4,942,346.42 4,942,346.42
Other 9,690,551.35 4,757,292.48
Total 18,668,487.86 13,914,067.13
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东沣科技集团股份有限公司 2019 年半年度财务报告
2)Accrual of bad debt provision
In RMB
Phase I Phase II Phase III
Expected credit Expected credit losses for Expected credit losses for
Bad debt provision Total
losses over next 12 the entire duration (without the entire duration (with
months credit impairment occurred) credit impairment occurred)
Balance on Jan. 1, 2019 5,325,469.69 5,325,469.69
Balance of Jan. 1, 2019
—— —— —— ——
in the period
Accrual in the period 474,939.83 474,939.83
Balance on Jun. 30, 2019 5,800,409.52 5,800,409.52
Change of book balance of loss provision with amount has major changes in the period
□ Applicable √ Not-applicable
By account age
In RMB
Account age Ending balance
Within one year (one year included) 18,272,550.49
Within one year (one year included) 18,272,550.49
1-2 years 30,211.71
2-3 years 38,380.00
Over 3 years 327,345.66
4-5 years 327,345.66
Total 18,668,487.86
3)Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
In RMB
Current changes
Category Opening balance Ending balance
Accrual Collected or reversal
Bad debt provision 5,325,469.69 474,939.83 5,800,409.52
Total 5,325,469.69 474,939.83 5,800,409.52
Important amount of bad debt provision switch-back or collection in the period:
In RMB
Enterprise Amount switch-back or collection Collection way
4)Other account receivables actually charge-off during the reporting period
In RMB
Item Amount charge-off
78
东沣科技集团股份有限公司 2019 年半年度财务报告
Including major other account receivables charge-off:
In RMB
Amount cause by
Procedure for
Enterprise Other Nature Amount charge-off Causes related transactions
charge-off
or not (Y/N)
Other Explanation on account receivable charge-off
5)Top 5 other account receivable collected by arrears party at ending balance
In RMB
Proportion in total
other account Ending balance of
Enterprise Nature Ending balance Account age
receivables at bad debt provision
period-end
LIMITED Other 5,387,150.65 Within one year 28.87%
Tax Bureau of
VAT for lands rebate 4,942,346.42 Within one year 26.49% 247,117.32
Chengde County
Non-Taxable
Revenue Authority Margin 1,500,000.00 Over 3 years 8.04% 1,500,000.00
of Chengde County
Auction bonds Debt auction 1,209,273.00 Over 5 years 6.48% 1,209,273.00
Zhou Haihong Other 642,689.25 4-5 years 3.44% 642,689.25
Total -- 13,681,459.32 -- 73.32% 3,599,079.57
6)Account receivables related to government grant
In RMB
Account age at Time and amount
Enterprise Government grant Ending balance
period-end collected and basis
7)7)Other receivable for termination of confirmation due to the transfer of financial assets
8)The amount of assets and liabilities that are transferred other receivable and continued to be involved
Other explanation:
6. Inventory
Whether implemented the new revenue standards
□Yes √No
(1)Category
In RMB
Ending balance Opening balance
Item
Book balance Depreciation Book value Book balance Depreciation Book value
79
东沣科技集团股份有限公司 2019 年半年度财务报告
reserve reserve
Raw materials 45,246.59 45,246.59 53,653.93 53,653.93
Goods in process 2,281,965.20 2,281,965.20 1,442,179.44 1,442,179.44
Stock products 112,228.19 112,228.19 933,817.53 933,817.53
Revolving
16,213.23 16,213.23 118.83 118.83
materials
Production costs 119,146,389.54 119,146,389.54 107,073,123.28 107,073,123.28
Development
16,739,024.97 16,739,024.97 42,082,664.49 42,082,664.49
products
Total 138,341,067.72 138,341,067.72 151,585,557.50 151,585,557.50
Does the Company comply with the disclosure requirement of “Information Disclosure Guidelines of Shenzhen
Stock Exchange No.4 – Listed Companies Engaged in Seed Industry and Planting Business” or not
No
(2)Inventory depreciation reserve
In RMB
Current increased Current decreased
Item Opening balance Switch back or Ending balance
Accrual Other Other
charge-off
(3)Explanation on capitalization of borrowing costs in ending balance of inventory
(4)Assets completed without settle resulted by construction contract at period-end
In RMB
Item Amount
Other explanation:
7. Contract assets
In RMB
Ending balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Book value of contract assets have major changes and causes:
In RMB
Item Amount changes Causes
If the provision for bad debts of contract asset is made in accordance with the general model of expected credit losses,
80
东沣科技集团股份有限公司 2019 年半年度财务报告
please refer to the disclosure of other account receivable to disclose related information about bad-debt provisions:
□ Applicable √ Not-applicable
Accrual of impairment provision in the period
In RMB
Reversal/Charge-off in
Item Accrual in the period Switch-back in the period Causes
the period
Other explanation:
8. Assets held for sale
In RMB
Ending book Impairment Ending book Expected disposal Expected disposal
Item Fair value
balance provision value expenses time
Other explanation:
9. Non-current asset due within one year
In RMB
Item Ending balance Opening balance
Important creditors’ investment/Other creditors’ investment
In RMB
Ending balance Opening balance
Creditor's rights
Face value Coupon rate Actual rate Due date Face value Coupon rate Actual rate Due date
Other explanation:
10. Other current assets
Whether implemented the new revenue standards
□Yes √No
In RMB
Item Ending balance Opening balance
Taxes paid in advance 12,657,840.46 10,986,874.66
Financial products 4,600,000.00 26,800,000.00
Total 17,257,840.46 37,786,874.66
Other explanation:
11. Other creditors’ investment
In RMB
81
东沣科技集团股份有限公司 2019 年半年度财务报告
Cumulative
loss
Change of Cumulative impairment
Opening Accrued Ending
Item fair value in Cost changes of recognized in Note
balance interest balance
the period fair value other
comprehensi
ve income
Important other creditors’ investment
In RMB
Ending balance Opening balance
Other creditor's rights
Face value Coupon rate Actual rate Due date Face value Coupon rate Actual rate Due date
Accrual of impairment provision
In RMB
Phase I Phase II Phase III
Expected credit Expected credit losses for Expected credit losses for
Bad debt provision Total
losses over next 12 the entire duration (without the entire duration (with
months credit impairment occurred) credit impairment occurred)
Balance of Jan. 1, 2019
—— —— —— ——
in the period
Change of book balance of loss provision with amount has major changes in the period
□ Applicable √ Not-applicable
Other explanation:
12. Long-term account receivable
(1)Long-term account receivable
In RMB
Ending balance Opening balance
Discount rate
Item Bad debt Bad debt
Book balance Book value Book balance Book value interval
provision provision
Impairment of bad debt provision
In RMB
Phase I Phase II Phase III
Expected credit Expected credit losses for Expected credit losses for
Bad debt provision Total
losses over next 12 the entire duration (without the entire duration (with
months credit impairment occurred) credit impairment occurred)
Balance of Jan. 1, 2019
—— —— —— ——
in the period
82
东沣科技集团股份有限公司 2019 年半年度财务报告
Change of book balance of loss provision with amount has major changes in the period
□ Applicable √ Not-applicable
(2)Long-term account receivable derecognized due to financial assets transfer
(3)Assets and liabilities resulted by long-term account receivable transfer and continues
involvement
Other explanation
13. Long-term equity investments
In RMB
Changes in the period (+,-)
Ending
Other Cash
Opening Investme Ending balance
The Additiona comprehe dividend Accrual
balance(B nt gains Other balance(B of
invested l Capital nsive or profit Impairme
ook recognize equity Other ook impairme
entity investmen reduction income announce nt
value) d under change value) nt
t adjustmen d to provision
equity provision
t issued
I. Joint venture
II. Associated enterprise
Runhua
Rural
Water
9,170,370 9,170,370 9,170,370
(Tianjin)
.00 .00 .00
Internatio
nal Trade
Co., Ltd.
9,170,370 9,170,370 9,170,370
Subtotal
.00 .00 .00
9,170,370 9,170,370 9,170,370
Total
.00 .00 .00
Other explanation
14. Other equity instrument investment
In RMB
Item Ending balance Opening balance
Dongguan Dongfeng New Energy
16,331,037.08 16,331,037.08
Technology Co., Ltd
83
东沣科技集团股份有限公司 2019 年半年度财务报告
Total 16,331,037.08 16,331,037.08
Itemized the non-tradable equity instrument investment in the period
In RMB
Causes of those
that designated
Retained earnings measured by fair Cause of retained
transfer from value and with its earnings transfer
Dividend income Cumulative
Item Cumulative gains other variation from other
recognized losses
comprehensive reckoned into comprehensive
income other income
comprehensive
income
Other explanation:
The items are listed for the investment of Dongguan Dongfeng New Energy Technology Co., Ltd, and the opening
balance of 2019 are being adjusted according to the new financial instrument standards, found more in 44 of
section V
15. Other non-current financial assets
In RMB
Item Ending balance Opening balance
Other explanation:
16. Investment real estate
(1)Investment real estate measured at cost
□ Applicable √ Not-applicable
(2)Investment real estate measured by fair value
□ Applicable √ Not-applicable
(3)Investment real estate without property rights certificate held
In RMB
Reasons for failure to handle the property
Item Book value
right certificate
Other explanation
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东沣科技集团股份有限公司 2019 年半年度财务报告
17. Fixed assets
In RMB
Item Ending balance Opening balance
Fixed assets 17,398,133.22 17,302,279.65
Total 17,398,133.22 17,302,279.65
(1)Fixed assets
In RMB
Houses and Machinery Transportation
Item Other equipment Total
buildings equipment equipment
I. Original book
value:
1.Opening balance 13,042,545.23 2,285,732.82 5,356,248.36 3,058,011.88 23,742,538.29
2.Current
87,000.00 2,492,468.30 2,579,468.30
increased
(1) Purchase
(2)Transferred
from construction in
process
(3)Increased by
enterprise
combination
3.Current
1,049,963.56 42,255.00 1,092,218.56
decreased
(1)Disposal or
1,049,963.56 42,255.00 1,092,218.56
scrap
4.Ending balance 11,992,581.67 2,285,732.82 5,443,248.36 5,508,225.18 25,229,788.03
II. Accumulated
depreciation
1.Opening balance 1,398,665.54 1,365,589.47 2,581,576.74 1,094,426.89 6,440,258.64
2.Current
663,590.91 51,644.34 362,112.60 447,898.41 1,525,246.26
increased
(1)Accrual 663,590.91 51,644.34
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东沣科技集团股份有限公司 2019 年半年度财务报告
3.Current
110,983.30 22,866.79 133,850.09
decreased
(1)Disposal or
110,983.30 22,866.79 133,850.09
scrap
4.Ending balance 1,951,273.15 1,417,233.81 2,943,689.34 1,519,458.51 7,831,654.81
III. Impairment
provision
1.Opening balance
2.Current
increased
(1)Accrual
3.Current
decreased
(1)Disposal or
scrap
4.Ending balance
IV. Book value
1.Ending book
10,041,308.52 868,499.01 2,499,559.02 3,988,766.67 17,398,133.22
value
2.Opening book
11,643,879.69 920,143.35 2,774,671.62 1,963,584.99 17,302,279.65
value
(2)Temporarily idle fixed assets
In RMB
Accumulated Impairment
Item Original book value Book value Note
depreciation provision
(3)Fixed assets leasing-in by financing lease
In RMB
Accumulated
Item Original book value Impairment provision Book value
depreciation
86
东沣科技集团股份有限公司 2019 年半年度财务报告
(4)Fixed assets leasing-out by operational lease
In RMB
Item Ending book value
(5)Fixed assets without property certificates
In RMB
Reasons for failure to handle the property
Item Book value
right certificate
Other explanation
(6)Disposal of fixed assets
In RMB
Item Ending balance Opening balance
Other explanation
18. Construction in process
In RMB
Item Ending balance Opening balance
Construction in process 108,179,114.15 101,650,833.16
Total 108,179,114.15 101,650,833.16
(1)Construction in process
In RMB
Ending balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Industrialization
of equipment of
108,179,114.15 108,179,114.15 101,650,833.16 101,650,833.16
the Dongfeng
New Energy
Total 108,179,114.15 108,179,114.15 101,650,833.16 101,650,833.16
(2)Changes of major projects under construction
In RMB
87
东沣科技集团股份有限公司 2019 年半年度财务报告
Includin
Cumulati
Proporti g:
Fixed ve Interest
on of amount
assets Other amount capitaliz
Opening Current Ending project of Source
Item Budget transfer-i decrease Progress of ation rate
balance increased balance investme interest of funds
n in the in Period interest of the
nt in capitaliz
Period capitaliz year (%)
budget ation in
ed
Period
Industria
lization
of
Financial
equipme 380,000, 101,650, 6,528,28 108,179, 7,651,62 5,380,38
97.00% 97.00 100.00% institutio
nt of the 000.00 833.16 0.99 114.15 3.62 9.97
ns loans
Dongfen
g New
Energy
380,000, 101,650, 6,528,28 108,179, 7,651,62 5,380,38
Total -- -- 100.00% --
000.00 833.16 0.99 114.15 3.62 9.97
(3)provision for impairment of construction in process in the period
In RMB
Item Accrual in the period Accrual Causes
Other explanation
(4)Engineering material
In RMB
Ending balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Other explanation:
19. Productive biological asset
(1)Productive biological asset measured by cost
√ Applicable □ Not-applicable
In RMB
Item Plantation Livestock Forestry Aquaculture Total
88
东沣科技集团股份有限公司 2019 年半年度财务报告
I. Original book
value
1.Opening balance 201,000.00 201,000.00
2.Current
increased
(1)Outsourcing
(2)Self-cultivation
3.Current
decreased
(1) Disposal
(2)Other
4.Ending balance 201,000.00 201,000.00
II. Accumulated
depreciation
1.Opening balance 79,562.50 79,562.50
2.Current
44,175.00 44,175.00
increased
(1)Accrual 44,175.00 44,175.00
3.Current
decreased
(1) Disposal
(2)Other
4.Ending balance 123,737.50 123,737.50
III. Impairment
provision
1.Opening balance
2.Current
increased
(1)Accrual
3.Current
89
东沣科技集团股份有限公司 2019 年半年度财务报告
decreased
(1) Disposal
(2)Other
4.Ending balance
IV. Book value
1.Ending book
77,262.50 77,262.50
value
2.Opening book
121,437.50 121,437.50
value
(2)Productive biological asset measured by fair value
□ Applicable √ Not-applicable
20. Oil and gas asset
□ Applicable √ Not-applicable
21. Right-of-use asset
In RMB
Item Total
Other explanation:
22. Intangible assets
(1)Intangible assets
In RMB
Non-patent
Item Land Use Right Patent right Total
technology
I. Original book
value
1.Opening
59,358,148.89 59,358,148.89
balance
2.Current
increased
(1) Purchase
90
东沣科技集团股份有限公司 2019 年半年度财务报告
(2)Internal
R&D
(3)Increased
by enterprise
combination
3.Current
decreased
(1) Disposal
4.Ending
59,358,148.89 59,358,148.89
balance
II. Accumulated
amortization
1.Opening
2,671,188.30 2,671,188.30
balance
2.Current
1,026,798.12 1,026,798.12
increased
(1)Accrual
3.Current
decreased
(1) Disposal
4.Ending
3,697,986.42 3,697,986.42
balance
III. Impairment
provision
1.Opening
balance
2.Current
increased
(1)Accrual
3.Current
decreased
(1) Disposal
91
东沣科技集团股份有限公司 2019 年半年度财务报告
4.Ending
balance
IV. Book value
1.Ending book
55,660,162.47 55,660,162.47
value
2.Opening book
56,686,960.59 56,686,960.59
value
Ratio of the intangible assets resulted by internal R&D in balance of the intangible assets at period
(2)Failure to handle the property right certificate
In RMB
Reasons for failure to handle the property
Item Book value
right certificate
Other explanation:
23. Expense on Research and Development
In RMB
Opening Ending
Item Current increased Current decreased
balance balance
Air-cooled
hydrogen fuel
cell power 3,096,125.13 3,143,275.24 6,239,400.37
system for
vehicle used
ZS01
4,839,555.82 3,161,053.46 8,000,609.28
alumina fiber
Real-time
hydrogen
5,410,729.52 1,979,623.63 7,390,353.15
production
equipment
13,346,410.4 21,630,362.8
Total 8,283,952.33
7 0
Other explanation
The capitalization start point of air-cooled hydrogen fuel cell power system for vehicle used was September 26,
2017, the project has a total of four stages, by the end of the period, the research and development phase has been
completed to the third stage; the capitalization start point of real-time hydrogenation equipment was September 26,
2017, the project has a total of four stages, as of the end of the period, the research and development phase has
been completed to the third stage; the capitalization start point of ZS01 alumina fiber was September 26, 2017, the
92
东沣科技集团股份有限公司 2019 年半年度财务报告
project has a total of three stages, as of the end of the period, the research and development phase has been
completed to the third stage, and the specific basis for its capitalization include: 1. The intangible assets have been
completed to enable them to be used or sold and technically possess feasibility; 2. The intangible assets have been
completed to enable them to be used or sold and technically possess feasibility; 3. The way in which intangible
assets generate economic benefits, including the proof that the products produced by using the intangible assets
have markets or the intangible assets have markets themselves; if intangible assets are to be used internally, it
should prove its usefulness; 4. There are enough technical and financial resources and other resources to support to
complete the development of the intangible assets, and have ability to use or sell the intangible assets; 5. The
expenditure attributable to the development phase of the intangible assets can be reliably measured.
24. Goodwill
(1)Original book value of goodwill
In RMB
Name of invested
company or items Opening balance Current increased Current decreased Ending balance
formed goodwill
Aolin New
1,294,711.56 1,294,711.56
Materials
Haizhuo Energy 249,074.85 249,074.85
Total 1,543,786.41 1,543,786.41
(2)Impairment provision of goodwill
In RMB
Name of invested
company or items Opening balance Current increased Current decreased Ending balance
formed goodwill
Assets group with the goodwill involved or portfolio information
Aolin New Materials, the subsidiary operates as an independent economic entity after the merger, and the cash
inflow generated by it is basically independent of other assets or asset groups, so it is regarded as an asset group
during the impairment test, and the carrying amount (including goodwill) is 21,840,175.96 Yuan and the asset
group or asset group combination is consistent with the asset group or asset group combination determined on the
date of purchase.
Haizhuo Energy, the subsidiary operates as an independent economic entity after the merger, and the cash inflow
generated by it is basically independent of other assets or asset groups, so it is regarded as an asset group during
the impairment test, and the carrying amount (including goodwill) is 24,387,755.86 Yuan and the asset group or
asset group combination is consistent with the asset group or asset group combination determined on the date of
purchase.
93
东沣科技集团股份有限公司 2019 年半年度财务报告
Instructions for goodwill impairments test process and key parameters (such as the forecast period growth rate,
stable period growth rate, profit rate, discount rate, and forecast period when estimating the present value of the
future cash flow), and the method of confirming the impairment loss of goodwill:
The company conducted impairment test for the asset group related to goodwill at the end of the period, when
conducting the impairment test, the book value of goodwill was apportioned to the asset group or asset group
combination expected to benefit from the synergy of business combination, and then compared the book value of
the asset group with the recoverable amount so as to determine whether the asset group (including goodwill) had
been impaired. The test results showed that the recoverable amount of the asset group including the apportioned
goodwill was lower than the book value, and the corresponding impairment loss was confirmed. The specific test
process was as follows:
The recoverable amount of the asset group was a five-year forecast prepared by the company’s management based
on the future development trend and business plan, which was calculated by using the future cash flow to convert
into the present value. After testing, the recoverable amount of Aolin New Materials was 35,341,494.01 Yuan,
which was greater than the book value (including goodwill) of 21,840,175.96 Yuan, and the recoverable amount of
Haizhuo Energy was 34,721,467.79 Yuan, which was greater than the book value (including goodwill) of
24,387,755.86 Yuan. Asset groups including goodwill predicted by the management were not impaired and no
impairment provision was required.
Impact of goodwill impairment test
Other explanation
25. Long-term prepaid expenses
In RMB
Amortized in current
Item Opening balance Current increased Other decrease Ending balance
period
Office remodeling
20,555.48 20,555.48
costs
Fire protection
10,000.00 10,000.00
engineering
Plant decoration 141,061.31 25,807.98 115,253.33
Floor pain
engineering of the 95,267.77 56,660.00 22,878.36 129,049.41
plant in Eco-Park
Total 266,884.56 56,660.00 79,241.82 244,302.74
Other explanation
94
东沣科技集团股份有限公司 2019 年半年度财务报告
26. Deferred income tax asset /Deferred income tax liabilities
(1)Deferred income tax assets without offset
In RMB
Ending balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference asset difference asset
(2)Deferred income tax liabilities without offset
In RMB
Ending balance Opening balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
differences liabilities differences liabilities
(3)Deferred income tax assets and deferred income tax liabilities listed after off-set
In RMB
Ending balance of Trade-off between the Opening balance of
Trade-off between the
deferred income tax deferred income tax deferred income tax
Item deferred income tax
assets or liabilities after assets and liabilities at assets or liabilities after
assets and liabilities
off-set period-begin off-set
(4)Details of unrecognized deferred income tax assets
In RMB
Item Ending balance Opening balance
Deductible temporary difference 25,599,989.61
Deductible losses 170,596,238.50 144,594,924.49
Total 170,596,238.50 170,194,914.10
(5)Deductible losses of un-recognized deferred income tax assets expired on the followed
year
In RMB
Year Ending amount Period-begin Note
2019 30,576,125.82 30,576,125.82 2014
2020 33,429,382.84 33,429,382.84 2015
2021 19,481,015.78 19,481,015.78 2016
95
东沣科技集团股份有限公司 2019 年半年度财务报告
2022 52,327,940.32 52,327,940.32 2017
2023 8,780,459.73 8,780,459.73 2018
2024 26,001,314.01 2019
Total 170,596,238.50 144,594,924.49 --
Other explanation:
27. Other non-current asset
Whether implemented the new revenue standards
□Yes √No
In RMB
Item Ending balance Opening balance
Engineering amount paid in advance 184,910,000.00 120,392,369.00
Equipment amount paid in advance 1,943,053.40 1,350,783.36
Total 186,853,053.40 121,743,152.36
Other explanation:
28. Short-term loans
(1)Category
In RMB
Item Ending balance Opening balance
Explanation on category of short-term loans:
(2)Short-term loans un-paid by expired
Total short-term loans un-paid by expired at end of the Period was 0 Yuan, including important short-term loans
are as:
In RMB
Borrower Ending balance Loans rate Overdue time Overdue interest rate
Other explanation:
29. Trading financial liability
In RMB
Item Ending balance Opening balance
Including:
Including:
96
东沣科技集团股份有限公司 2019 年半年度财务报告
Other explanation:
30. Derivative financial liability
In RMB
Item Ending balance Opening balance
Other explanation:
31. Notes payable
In RMB
Category Ending balance Opening balance
Totally Yuan due note payable are paid at period-end.
32. Accounts payable
(1)Accounts payable
In RMB
Item Ending balance Opening balance
Account payable for engineering 3,513,799.08 6,596,413.67
Account payable for materials 31,596.00 33,996.00
Account payable for equipment 60,909.00 20,200.00
Other 19,752.77 18,180.00
Total 3,626,056.85 6,668,789.67
(2)Important account payable with over one year account age
In RMB
Item Ending balance Reasons for non-repayment or carry-over
Chengde Great Wall Construction Group
1,153,100.46 Engineering amount
Co., Ltd.
Chengde Licheng Construction &
546,900.24 Engineering amount
Installation Engineering Co., Ltd.
Chengde Yongwang Construction
417,887.22 Engineering amount
Engineering Co., Ltd.
Handan Hanyi Construction Engineering
400,000.00 Engineering amount
Co., Ltd.
Chengde County Xingcheng Construction
274,499.03 Engineering amount
& Installation Company
97
东沣科技集团股份有限公司 2019 年半年度财务报告
Total 2,792,386.95 --
Other explanation:
33. Accounts received in advance
Whether implemented the new revenue standards
□Yes √No
(1)Accounts received in advance
In RMB
Item Ending balance Opening balance
Account received in advance for property 59,853,495.75 14,427,450.03
Account received in advance for goods 75,050.00 64,400.00
Resident heating fees received in advance 14,790.89 1,561,464.19
Other 211,930.77 216,005.77
Total 60,155,267.41 16,269,319.99
(2)Major account received in advance for over one year age
In RMB
Item Ending balance Reasons for non-repayment or carry-over
(3)Project closed for account without complete in construction from construction contract at
period-end
In RMB
Item Amount
Other explanation:
34. Contract liability
In RMB
Item Ending balance Opening balance
Book value has major changes in the period and causes
In RMB
Item Amount changes Causes
98
东沣科技集团股份有限公司 2019 年半年度财务报告
35. Wage payable
(1)Wage payable
In RMB
Item Opening balance Current increased Current decreased Ending balance
I. Short-term employee
951,151.59 11,444,982.88 11,332,729.75 1,063,404.72
benefits
II. Post-employment
benefits-defined 29,938.00 767,926.57 782,520.47 15,344.10
contribution plans
Total 981,089.59 12,212,909.45 12,115,250.22 1,078,748.82
(2)Short-term employee benefits
In RMB
Item Opening balance Current increased Current decreased Ending balance
1. Salary, bonus,
924,301.59 10,387,187.60 10,264,905.59 1,046,583.60
allowance and subsidy
2. Employee welfare 204,620.56 204,620.56 0.00
3. Social insurance 17,470.00 450,191.85 457,748.95 9,912.90
Including: medical
15,475.00 384,799.10 391,439.10 8,835.00
insurance expenses
Work
injury insurance 437.00 26,056.37 26,345.47 147.90
expenses
Maternity
1,558.00 39,336.38 39,964.38 930.00
insurance
4. Housing provident
9,380.00 399,391.15 402,261.15 6,510.00
funds
5. Labor union
expenditures and
3,591.72 3,193.50 398.22
employee education
expenses
Total 951,151.59 11,444,982.88 11,332,729.75 1,063,404.72
99
东沣科技集团股份有限公司 2019 年半年度财务报告
(3)defined contribution plans
In RMB
Item Opening balance Current increased Current decreased Ending balance
1.Basic endowment
29,120.00 751,010.44 765,251.34 14,879.10
insurance expenses
2.Unemployment
818.00 16,916.13 17,269.13 465.00
insurance expenses
Total 29,938.00 767,926.57 782,520.47 15,344.10
Other explanation:
36. Taxes payable
In RMB
Item Ending balance Opening balance
VAT 111,090.89 364,882.08
Individual income tax 15,759.93 12,830.10
Urban maintenance and construction tax 3,293.69 20,216.47
Land VAT 468,597.56
Educational surtax 1,976.21 12,129.88
Local educational surtax 1,317.47 8,086.59
Stamp tax 29,221.50 35,224.90
Urban land use tax 155,828.28
Total 318,487.97 921,967.58
Other explanation:
37. Other accounts payable
In RMB
Item Ending balance Opening balance
Interest payable 193,333.41
Other accounts payable 114,627,139.72 118,376,885.44
Total 114,627,139.72 118,570,218.85
(1)Interest payable
In RMB
100
东沣科技集团股份有限公司 2019 年半年度财务报告
Item Ending balance Opening balance
Interest of the long-term loans repayment
193,333.41
of principal due in installments
Total 193,333.41
Important interest overdue without paid:
In RMB
Borrower Amount overdue Causes
Other explanation:
(2)Dividend payable
In RMB
Item Ending balance Opening balance
Other explanation, including dividends payable with over one year age and disclosure un-payment reasons:
(3)Other accounts payable
1)By nature
In RMB
Item Ending balance Opening balance
Non-financial corporate borrowing 64,030,000.00 79,143,616.44
Quality guarantee deposit 18,000,000.00 18,000,000.00
Intercourse fund 26,516,666.66 16,327,166.66
Deposit and margin 509,600.00 971,041.20
Agency fee 400,000.00 309,178.00
Tax withholding 5,634.15 10,679.28
Other 5,165,238.91 3,615,203.86
Total 114,627,139.72 118,376,885.44
2)Significant other payable with over one year age
In RMB
Item Ending balance Reasons for non-repayment or carry-over
Dongguan Dongfeng New Energy
15,500,000.00 Intercourse fund 项
Technology Co., Ltd
Total 15,500,000.00 --
Other explanation
101
东沣科技集团股份有限公司 2019 年半年度财务报告
38. Liability held for sale
In RMB
Item Ending balance Opening balance
Other explanation:
39. Non-current liabilities due within one year
In RMB
Item Ending balance Opening balance
Other explanation:
40. Other current liabilities
Whether implemented the new revenue standards
□Yes √No
In RMB
Item Ending balance Opening balance
Changes of short-term bond payable:
In RMB
Accrual Premium/ Balance
Face Release Bond Issuing Opening Issued in interest discount Paid in at
Bond
value date period amount balance the Period by face amortizati the Period period-en
value on d
Other explanation:
41. Long-term loans
(1)Category
In RMB
Item Ending balance Opening balance
Mortgage loans 172,210,000.00 101,710,000.00
Total 172,210,000.00 101,710,000.00
Explanation on category of long-term loans:
Other explanation, including interest rate section:
Dongguan Dongfeng Intelligent Technology Co., Ltd. signed a contract Dongyin (3900) 2018 NGDZ No. 016477
with Dongguan Bank Songshan Lake Technology Sub-branch, the total contract loan amount was RMB 200 million.
Dongfeng Technology Group Co., Ltd., Dongguan Dongfeng Technology Development Co., Ltd., Dongguan
Zhongchuang New Energy Technology Co., Ltd., Dongguan Aolin New Materials Co., Ltd., and Dongguan
102
东沣科技集团股份有限公司 2019 年半年度财务报告
Haizhuo Energy Technology Co., Ltd. guaranteed with the joint liability warranty; and the collaterals were the land
use rights and above-ground buildings of Yue ( 2017) Dongguan Real Property No. 0121786; the pledge was 100%
equity of Dongguan Dongfeng Intelligent Technology Co., Ltd. held by Dongguan Dongfeng Technology
Development Co., Ltd. As of June 30, 2019, the company obtained the long-term loan balance of RMB 172.21
million from Bank of Dongguan Co., Ltd. Songshan Lake Technology Sub-branch, and the borrowing was limited
to the follow-up construction of the equipment industrialization project of Dongfeng New Energy
42. Bonds payable
(1)Bonds payable
In RMB
Item Ending balance Opening balance
(2)Changes of bonds payable (not including the other financial instrument of preferred stock
and perpetual capital securities that classify as financial liability)
In RMB
(3)Convertible conditions and time for shares transfer for the convertible bonds
(4) Other financial instruments classify as financial liability
Basic information of the outstanding preferred stock and perpetual capital securities at period-end
Changes of outstanding preferred stock and perpetual capital securities at period-end
In RMB
Outstanding Period-begin Current increased Current decreased Period-end
financial
Amount Book value Amount Book value Amount Book value Amount Book value
instrument
Basis for financial liability classification for other financial instrument
Other explanation
43. Lease liability
In RMB
Item Ending balance Opening balance
Other explanation
44. Long-term account payable
In RMB
103
东沣科技集团股份有限公司 2019 年半年度财务报告
Item Ending balance Opening balance
(1) By nature
In RMB
Item Ending balance Opening balance
Other explanation:
(2)Special payable
In RMB
Item Opening balance Current increased Current decreased Ending balance Causes of formation
Other explanation:
45. Long-term wages payable
(1)Long-term wages payable
In RMB
Item Ending balance Opening balance
(2)Changes of defined benefit plans
Present value of the defined benefit plans:
In RMB
Item Current period Last period
Scheme assets:
In RMB
Item Current period Last period
Net liability (assets) of the defined benefit plans
In RMB
Item Current period Last period
Content of defined benefit plans and relevant risks, impact on future cash flow of the Company as well as times
and uncertainty:
Major actuarial assumption and sensitivity analysis:
Other explanation:
46. Accrual liability
Whether implemented the new revenue standards
104
东沣科技集团股份有限公司 2019 年半年度财务报告
□Yes √No
In RMB
Item Ending balance Opening balance Causes of formation
Other explanation, including relevant important assumptions and estimation:
47. Deferred income
In RMB
Item Opening balance Current increased Current decreased Ending balance Causes of formation
Item with government grants involved:
In RMB
Amount
Amount Cost Assets-relate
Balance at New grants reckoned in Other Balance at
Liability reckoned in reduction in d/income
period-begin in the Period non-operatio changes period-end
other income the period related
n revenue
Other explanation:
48. Other non-current liabilities
Whether implemented the new revenue standards
□Yes √No
In RMB
Item Ending balance Opening balance
Other explanation:
49. Share capital
In RMB
Changes in the period (+,-)
Shares
Opening
New shares transferred Ending balance
balance Bonus share Other Subtotal
issued from capital
reserve
Total shares 706,320,000.00 706,320,000.00
Other explanation:
105
东沣科技集团股份有限公司 2019 年半年度财务报告
50. Other equity instrument
(1)Basic information of the outstanding preferred stock and perpetual capital securities at
period-end
(2) Changes of outstanding preferred stock and perpetual capital securities at period-end
In RMB
Outstanding Period-begin Current increased Current decreased Period-end
financial
Amount Book value Amount Book value Amount Book value Amount Book value
instrument
Changes of other equity instrument, change reasons and relevant accounting treatment basis:
Other explanation:
51. Capital reserve
In RMB
Item Opening balance Current increased Current decreased Ending balance
Capital premium (share
397,808,090.32 397,808,090.32
premium)
Other capital reserve 65,873,219.23 65,873,219.23
Total 463,681,309.55 463,681,309.55
Other explanation, including changed in Period as well as reasons for changes:
52. Treasury stock
In RMB
Item Opening balance Current increased Current decreased Ending balance
Implement the equity
19,718,613.55 9,107,872.15 28,826,485.70
incentive buyback
Total 19,718,613.55 9,107,872.15 28,826,485.70
Other explanation, including changed in Period as well as reasons for changes:
53. Other comprehensive income
In RMB
Current period
Account Less: written Less: Belong to Belong to
Opening Ending
Item before in other written in Less : income parent minority
balance balance
income tax comprehensi other tax expense company shareholders
in the ve income in comprehe after tax after tax
106
东沣科技集团股份有限公司 2019 年半年度财务报告
period previous nsive
period and income in
carried previous
forward to period and
gains and carried
losses in forward to
current retained
period earnings in
current
period
Other explanation, including the active part of the hedging gains/losses of cash flow transfer to initial
recognization adjustment for the arbitraged items:
54. Reasonable reserve
In RMB
Item Opening balance Current increased Current decreased Ending balance
Other explanation, including changed in Period as well as reasons for changes:
55. Surplus reserve
In RMB
Item Opening balance Current increased Current decreased Ending balance
Statutory surplus
76,791,550.17 76,791,550.17
reserves
Total 76,791,550.17 76,791,550.17
Explanation on surplus reserve, including changed in Period as well as reasons for changes:
56. Retained profit
In RMB
Item Current period Last period
Retained profits at the end of last period before
-875,480,247.09 -882,864,082.85
adjustment
Retained profits at the beginning of the period
-875,480,247.09 -882,864,082.85
after adjustment
Add: The net profits belong to owners of patent
-25,095,405.50 -5,210,758.22
company of this period
Retained profits at the end of the period -899,898,115.99 -888,074,841.07
Details about adjusting the retained profits at the beginning of the year:
107
东沣科技集团股份有限公司 2019 年半年度财务报告
1) The retroactive adjustments to Accounting Standards for Business Enterprises and its relevant new regulations
affect the undistributed profits at the beginning of the year amounting to Yuan.
2) The changes in accounting policies affect the undistributed profits at the beginning of the year amounting to
Yuan.
3) The major accounting error correction affects the undistributed profits at the beginning of the year amounting to
Yuan.
4) Merge scope changes caused by the same control affect the undistributed profits at the beginning of the year
amounting to Yuan.
5) Other adjustments affect the undistributed profits at the beginning of the year amounting to Yuan.
57. Operating income and operating cost
In RMB
Current period Last period
Item
Income Cost Income Cost
Main business 33,371,413.48 28,218,727.77 79,815,868.78 71,967,495.21
Total 33,371,413.48 28,218,727.77 79,815,868.78 71,967,495.21
Whether implemented the new revenue standards
□Yes √No
Other explanation
58. Tax and extras
In RMB
Item Current period Last period
Urban maintenance and construction tax 47,977.16 156,332.31
Educational surtax 47,977.11 156,332.33
Property tax 62,834.78 41,701.98
Land use tax 273,878.99 455,907.91
Vehicle and vessel use tax 2,280.00 3,880.00
Stamp tax 72,115.00 68,045.30
Lands VAT 574,464.51 1,339,218.78
Business tax 547,830.45
Total 1,081,527.55 2,769,249.06
Other explanation:
59. Sales expense
In RMB
108
东沣科技集团股份有限公司 2019 年半年度财务报告
Item Current period Last period
Agency fee 9,682,562.68
Salary 112,940.00
Production costs 96,084.93
Social insurance premium 41,477.64
Advertising fees 25,471.70
Other 20,465.05 4,902.12
Total 9,979,002.00 4,902.12
Other explanation:
60. Management expense
In RMB
Item Current period Last period
Remuneration 6,053,677.92 5,401,164.10
Business entertainment 3,882,091.74 2,027,808.43
Agency fee 2,639,780.12 101,587.29
Depreciation and amortization 2,128,930.63 2,649,290.58
Rental fee 2,091,244.78 5,700.00
Business-travel expense 676,087.98 658,480.06
Office allowance 385,719.63 177,410.63
Repair charge 303,831.99 318,588.09
Travelling expenses 258,951.87 25,676.47
Welfare charges 194,601.54 572,380.68
Material consumption 101,772.31 149,022.03
Electricity and water fees 83,104.17 46,009.05
Premium 67,986.49 55,866.08
Long-term deferred expenses 25,807.98 6,075.00
Union due 3,591.72 2,112.98
Amortization of low value consumables 1,941.26 107,303.84
Other 448,997.38 2,182,579.42
Total 19,348,119.51 14,487,054.73
Other explanation:
109
东沣科技集团股份有限公司 2019 年半年度财务报告
61. R&D expense
In RMB
Item Current period Last period
Other explanation:
62. Financial expense
In RMB
Item Current period Last period
Interest expense
Less: Interest income 26,346.24 903,639.76
Profit/loss on exchange 63,282.68 -266,016.60
Bank handling charges 43,302.51 25,184.74
Total 80,238.95 -1,144,471.62
Other explanation:
63. Other income
In RMB
Sources of other income Current period Last period
Renewable energy subsidy 2,890,000.00
64. Investment income
In RMB
Item Current period Last period
Investment income from financial products of
198,770.44 133,320.88
the Bank
Total 198,770.44 133,320.88
Other explanation:
65. Net exposure hedge gains
In RMB
Item Current period Last period
Other explanation:
110
东沣科技集团股份有限公司 2019 年半年度财务报告
66. Income of fair value changes
In RMB
Source Current period Last period
Other explanation:
67. Credit impairment loss
In RMB
Item Current period Last period
Other explanation:
68. Asset impairment loss
Whether implemented the new revenue standards
□Yes √No
In RMB
Item Current period Last period
I. Bad debt losses -474,939.83
Total -474,939.83
Other explanation:
69. Income from assets disposal
In RMB
Income from assets disposal Current period Last period
Gains/losses from fixed assets disposal 831,663.08
Gains/losses from biological assets
-18,684.68
disposal
70. Non-operating revenue
In RMB
Amount reckoned into current
Item Current period Last period
non-recurring gains/losses
Other 864.03 3,121.00
Total 864.03 3,121.00
Government grants reckoned into current gains/losses:
In RMB
111
东沣科技集团股份有限公司 2019 年半年度财务报告
Impact on Assets-relate
Distributed current Special Current d
Item Reasons Nature Last Period
by gains/losses grants (Y/N) Period /income-relat
(Y/N) ed
Other explanation:
71. Non-operating expenditure
In RMB
Amount reckoned into current
Item Current period Last period
non-recurring gains/losses
Donating 230,605.00
Other 160,245.83 2,607.78
Total 390,850.83 2,607.78
Other explanation:
72. Income tax expense
(1)Income tax expense
In RMB
Item Current period Last period
Current income tax 110,309.68
Total 110,309.68
(2)Adjustment on accounting profit and income tax expenses
In RMB
Item Current period
Total profit -25,170,695.41
Income tax measured by statutory/applicable tax rate -6,462,058.00
Impact on different tax rate for subsidiary 8,874.05
The deductible temporary differences or deductible losses of the
6,453,183.95
un-recognized deferred income tax assets in the Period
Other explanation
73. Other comprehensive income
Found more in Note
112
东沣科技集团股份有限公司 2019 年半年度财务报告
74. Notes to statement of cash flow
(1)Other cash received in relation to operation activities
In RMB
Item Current period Last period
Intercourse fund 38,250,000.00 41,000,000.00
Subsidy income 0.00 2,890,000.00
Interest income 26,346.24 894,404.17
Other 373,847.20 695,736.71
Total 38,650,193.44 45,480,140.88
Explanation on other cash received in relation to operation activities:
(2)Other cash paid in relation to operation activities
In RMB
Item Current period Last period
Disbursement costs 15,459,821.08 7,500,856.76
Intercourse fund 40,720,000.00 2,260,000.00
Other 1,103,215.00 703,296.65
Total 57,283,036.08 10,464,153.41
Explanation on other cash paid in relation to operation activities:
(3)Cash received from other investment activities
In RMB
Item Current period Last period
Explanation on cash received from other investment activities:
(4)Cash paid related with other investment activities
In RMB
Item Current period Last period
Explanation on cash paid related with other investment activities:
(5)Cash received from other financing activities
In RMB
113
东沣科技集团股份有限公司 2019 年半年度财务报告
Item Current period Last period
Housing mortgage loans refund 1,468,200.00 2,558,600.00
Total 1,468,200.00 2,558,600.00
Explanation on cash received from financing activities:
(6)Cash paid related with other financing activities
In RMB
Item Current period Last period
Housing mortgage loans paid 22,200.00 534,800.00
Share buyback funds 9,107,872.15
Total 9,130,072.15 534,800.00
Explanation on cash paid related with other financing activities:
75. Supplementary information to statement of cash flow
(1)Supplementary information to statement of cash flow
In RMB
Supplementary information Current Period Last Period
1. Net profit adjusted to cash flow of
-- --
operation activities:
Net profit -25,170,695.41 -5,373,520.98
Add: Preparations of assets depreciation 474,939.83
Depreciation of fixed assets, consumption of
oil assets and depreciation of productive 1,102,132.51 830,843.55
biology assets
Amortization of intangible assets 1,026,798.12 1,926,524.57
Amortization of long-term deferred expenses 25,807.98 97,741.68
Loss from disposal of fixed assets, intangible
assets and other long-term assets(gain is -831,663.08 18,684.68
listed with “-”)
Decrease of inventory (gain is listed with
13,244,489.78 64,800,311.47
“-”)
Decrease of operating receivable accounts
-12,018,093.71 27,243,279.39
(gain is listed with “-”)
Increase of operating payable accounts (loss
36,394,315.09 -55,618,571.34
is listed with “-”)
114
东沣科技集团股份有限公司 2019 年半年度财务报告
Net cash flow arising from operating
14,248,031.11 33,925,293.02
activities
2. Material investment and financing not
-- --
involved in cash flow
3. Net change of cash and cash equivalents: -- --
Balance of cash at period end 53,702,790.09 30,835,918.20
Less: Balance of cash equivalent at
33,512,916.99 68,107,388.69
year-begin
Net increase of cash and cash equivalents 20,189,873.10 -37,271,470.49
(2)Net cash payment for the acquisition of a subsidiary of the current period
In RMB
Amount
Including: --
Including: --
Including: --
Other explanation:
(3)Net cash received from the disposal of subsidiaries
In RMB
Amount
Including: --
Including: --
Including: --
Other explanation:
(4)Constitution of cash and cash equivalent
In RMB
Item Ending balance Opening balance
Ⅰ. Cash 53,702,790.09 33,512,916.99
Including: Cash in stock 181,507.39 368,614.69
Bank deposit available for payment at
53,521,282.70 33,144,302.30
any time
Ⅲ. Balance of cash and cash equivalent at
53,702,790.09 33,512,916.99
period-end
115
东沣科技集团股份有限公司 2019 年半年度财务报告
Other explanation:
Balance of cash and cash equivalent dated 30 th June 2019 amounted as 53,702,790.09 Yuan, monetary fund has
55,053,763.21 Yuan at end of the period, which has 1,350,973.12 Yuan in difference, mainly because among the
ending balance of monetary fund, there is a margin of housing mortgage that can not be free in three months, and
same as the opening balance amount
76. Notes of changes of owners’ equity
Explain the name and adjusted amount in “Other” at end of last period:
77. Assets with ownership or use right restricted
In RMB
Item Ending book value Restriction reasons
Monetary fund 1,350,973.12 Margin of housing mortgage
Total 1,350,973.12 --
Other explanation:
78. Foreign currency monetary items
(1)Foreign currency monetary items
In RMB
Ending foreign currency
Item Convert rate Ending RMB balance converted
balance
Monetary fund -- --
Including: USD 19,614.72 6.8747 134,845.32
EURO
HKD
Account receivable -- --
Including: USD
EURO
HKD
Long-term loans -- --
Including: USD
EURO
116
东沣科技集团股份有限公司 2019 年半年度财务报告
HKD
Other explanation:
(2)Explanation on foreign operational entity, including as for the major foreign operational
entity, disclosed main operation place, book-keeping currency and basis for selection; if the
book-keeping currency changed, explain reasons
□ Applicable √ Not-applicable
79. Hedging
Disclosed hedging items and relevant hedging instrument based on hedging’s category, disclosed qualitative and
quantitative information for the arbitrage risks:
80. Government grants
(1)Government grants
In RMB
Amount reckoned into current
Category Amount Item
gains/losses
(2)Government grants rebate
□ Applicable √ Not-applicable
Other explanation:
81. Other
VIII. Changes of consolidation range
1. Enterprise combined not under the same control
(1)Enterprise combined under different control in the Period
In RMB
Income of Net profit of
Standard to
Time point Cost of Ratio of Acquired acquiree from acquiree from
Purchasing determine the
Acquiree for equity equity equity way Equity purchasing purchasing
date purchasing
obtained obtained obtained obtained way date to date to
date
period-end period-end
Other explanation:
117
东沣科技集团股份有限公司 2019 年半年度财务报告
(2)Combination cost and goodwill
In RMB
Combination cost
Determination method for fair value of the combination cost and contingent consideration and changes:
Main reasons for large goodwill resulted:
Other explanation:
(3) Identifiable assets and liability on purchasing date under the acquiree
In RMB
Fair value on purchasing date Book value on purchasing date
Determination method for fair value of the identifiable assets and liabilities:
Contingent liability of the acquiree bear during combination:
Other explanation:
(4) Gains or losses arising from re-measured by fair value for the equity held before
purchasing date
Whether it is a business combination realized by two or more transactions of exchange and a transaction of
obtained control rights in the Period or not
□Yes √No
(5)On purchasing date or period-end of the combination, combination consideration or fair
value of identifiable assets and liability for the acquiree are un-able to confirm rationally
(6)Other explanation
2. Enterprise combined under the same control
(1) Enterprise combined under the same control in the Period
In RMB
Income of the Net profit of
combined the combined Income of the Net profit of
Basis of Standard to party from party from combined the combined
Equity ratio
Combined combined Combination determine the period-begin period-begin party during party during
obtained in
party under the date combination of of the the
combination
same control date combination combination comparison comparison
to the to the period period
combination combination
118
东沣科技集团股份有限公司 2019 年半年度财务报告
date date
Other explanation:
(2)Combination cost
In RMB
Combination cost
Explanation on contingent consideration and its changes:
Other explanation:
(3) Assets and liability of the combined party on combination date
In RMB
Combination date At end of last period
Contingent liability of the combined party bear during combination:
Other explanation:
3. Counter purchase
Basic transaction information, basis of counter purchase, whether making up business due to the assets and
liability reserved by listed company and basis, determination of combination cost, amount and calculation on
adjusted equity by equity transaction
4. Subsidiary disposal
Whether there is a single disposal of the investment in subsidiaries that is the loss of control
□Yes √No
Whether there is disposal of the investment in subsidiaries through multiple transactions step by step and loss of
control in the current period
□Yes √No
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东沣科技集团股份有限公司 2019 年半年度财务报告
5. Other reasons for consolidation range changed
Reasons for changed on consolidation range (such as new subsidiary established, subsidiary liquidated etc.) and
relevant information:
6. Other
IX. Equity in other entity
1. Equity in subsidiary
(1) Constitute of enterprise group
Main operation Share-holding ratio
Subsidiaries Registered place Business nature Acquired way
place Directly Indirectly
Management and
Kefeng consultant of
Chengde Chengde 100.00% Establishment
Engineering engineering
project
Dongfeng Industrial
Chengde Chengde 100.00% Establishment
Investment investment
International
Nanjiang Asia Chengde Chengde 100.00% Establishment
investment
Kefeng Trading Chengde Chengde Commercial trade 100.00% Establishment
Hangzhou High-tech
Hangzhou Hangzhou 100.00% Establishment
Dongfeng development
Dongguan Technology
Dongfeng Dongguan Dongguan Development of 100.00% Establishment
Technology new materials
Technology
Kefeng Development of
Chengde Chengde 100.00% Establishment
Aerospace aerospace
products
Technology Enterprise
Dongfeng Power Dongguan Dongguan Development of 100.00% combined under
clean energy the same control
Ecological Animal
Chengde Chengde 100.00% Establishment
Agriculture husbandry
Inflatable
Nanjiang
Chengde Chengde capsule, 100.00% Establishment
Technology
production and
120
东沣科技集团股份有限公司 2019 年半年度财务报告
sale of Grapheme
Property
Huijing Property Chengde Chengde 100.00% Establishment
management
Enterprise
Technology
Zhongchuang combined not
Dongguan Dongguan Development of 60.98%
New Energy under the same
new energy
control
Technology
Dongguan Enterprise
Development in
Dongfeng Dongguan Dongguan 100.00% combined under
field of
Intelligent the same control
technology
Enterprise
Nano metric
Aolin New combined not
Dongguan Dongguan technology 62.00%
Materials under the same
material
control
Enterprise
Technology
combined not
Haizhuo Energy Dongguan Dongguan Development of 62.00%
under the same
new materials
control
Explanation on share-holding ratio in subsidiary different from ratio of voting right:
Basis for controlling the invested entity with half or below voting rights held and without controlling invested
entity but with over half and over voting rights:
Controlling basis for the structuring entity included in consolidated range:
Basis on determining to be an agent or consignor:
Other explanation:
*1 Dongfeng Investment was established by Nanjiang Real Estate dated 9 October 2012, original registered capital
was 50 million Yuan, shareholder Nanjiang Real Estate contribute 50 million Yuan, presenting 100 percent of the
registered capital; on 21 December 2012, the 100 percent equity held by Nanjiang Real Estate are transferred to
Nanjiang Company with 50 million Yuan, after transferred, Dongfeng Sci-Tech Group holds total equity of the
Dongfeng Investment; on 6 January 2013, Dongfeng Sci-Tech Group increase capital 40 million Yuan to Nanjiang
Investment, and registered capital comes to 90 million Yuan after capital increased. On 25 October 2017, the
enterprise name of Dongfeng Investment changed to Chengde Dongfeng Investment Co., Ltd instead of Chengde
Nanjiang Investment Co., Ltd
*2 Ecological Agriculture was established by Dongfeng Investment on 24 October 2012, original registered capital
was 5 million Yuan, shareholder Dongfeng Investment contributes 5 million Yuan with 100 percent held in total
registered capital. On 18 April 2013, Dongfeng Investment increase 5 million Yuan to Ecological Agriculture and
the registered capital turns to 10 million Yuan after increased. On 21 June 2017, the enterprise name of Ecological
Agriculture changed to Chengde Dongfeng Ecological Agriculture Co., Ltd instead of Chengde Nanjiang
Ecological Agriculture Co., Ltd
*3 Nanjiang Asia was founded by Dongfeng Sci-Tech Group on 14th Nov. 2013, located in Hong Kong, with
121
东沣科技集团股份有限公司 2019 年半年度财务报告
register capital of US$ 20 million, the paid-up was US$ 797, 538.34.
*4 Nanjiang Technology was founded jointly by Dongfeng Investment and Ningbo Morsh Technology on 24th Jan.
2013 with register capital of 50 million Yuan, including Dongfeng Investment invested 45 million Yuan taking up
90% of the total investment; Ningbo Morsh Technology invested 5 million Yuan taking up 10%. On 4 th July 2016,
the Dongfeng Technology entered into an equity transfer agreement with Ningbo Morsh Technology, the 10%
shares held by Ningbo Morsh Technology are transferred to Dongfeng Investment, after equity transfer, 100%
equity of Nanjiang Technology are held by Dongfeng Investment.
*5 Huijing Property was founded by Dongfeng Investment on 18th Nov. 2013 with register capital of 500,000
Yuan. Shareholder Dongfeng Investment invested 500, 000 Yuan wholly owning it.
*6 Dongfeng Power was established by Tibet Dongfeng Investment Co., Ltd. on April 7, 2016 with a registered
capital of RMB 70 million and an actual capital contribution of RMB 0. On August 28, 2018, it signed an equity
transfer agreement with Dongguan Dongfeng Technology to transfer the 100% equity to Dongguan Dongfeng
Technology at 0 yuan. On December 25, 2018, Dongguan Dongfeng Technology transferred its 100% equity to the
Company at 0.00 yuan. As of 30th June 2019, it has not actually invested.
*7 Hangzhou Dongfeng established on 21 September 2016 by Dongfeng Sci-Tech Group, registered capital was
50 million Yuan; actually paid-in capital was 30 million Yuan. On 5 June 2017, the enterprise name of Hangzhou
Dongfeng changed to Hangzhou Dongfeng Technology Co. Ltd instead of Hangzou Hangfeng Technology Co.,
Ltd
*8 Kefeng Aerospace established on 12 December 2016 by Dongfeng Sci-Tech Group, registered capital was 30
million Yuan, no funds actually paid-up ended as 30th June 2019.
*9 Kefeng Engineering and Kefeng Trading are the new enterprise derivative split from Dongfen Trade and
Business on 6 March 2017, registered capital amounted as 0.5 million Yuan and 8.5 million Yuan respectively.
Totally 100% of the registered capital are taken by Dongfeng Sci-Tech Group.
*10 Dongguan Dongfeng Technology established on 17 August 2017 with registered capital of 100 million Yuan.
Dongfeng Sci-Tech Group invested 100 million Yuan on 20 September 2017, a 100% of the registered capital
takes.
*11 Zhongchuang New Energy established on 4 July 2017 with registered capital of 24.6 million Yuan. On 5
September 2017, the Dongguang Dongfeng Technology Development entered into a capital increase agreement
with Dongguang Hangda Venture Investment, registered capital goes to 24.6 million Yuan from one million Yuan.
Among them, Dongguang Dongfeng Technology Development contributes 15 million Yuan in monetary, a 60.98%
in total shares. Dongguang Dongfeng Technology contributed 15 million Yuan on 24 October 2017
*12 Dongguan Dongfeng Intelligent established on 14 February 2017 with registered capital of 60 million Yuan.
On 5 December 2017, Dongfeng Technology Development entered into an equity transfer agreement with
Dongguan Dongfeng New Energy with consideration of 15 million Yuan. Registered capital of 45 million are paid
122
东沣科技集团股份有限公司 2019 年半年度财务报告
on 27 December 2017 with totally 100% holds in shares
*13 Aolin New Material established on 23 October 2015 with registered capital of 25 million Yuan. On 4
December 2017, Aolin entered into a capital increase agreement with Dongguang Dongfeng Technology, registered
capital comes to 25 million Yuan from 9.5 million Yuan. In line with the agreement between Dongguang Hangda
Venture Investment Co., ltd. and Dongfeng Technology Development, increasing capital of 16.4025 million Yuan
to Aolin New Material, among which, 15.5 million Yuan will increased for registered capital, the 902,500 Yuan
will reckoned into the capital reserves of Aolin New Material. On 29 December 2017, Dongguang Dongfeng
Technology invested 15.5 million Yuan, a 62% in total registered capital.
*14 Haizhuo Energy established on 15 September 2015 with registered capital of 25 million Yuan. On 28
December 2017, Haizhuo Energy entered into a capital increase agreement with Dongguan Dongfeng Technology,
registered capital comes to 25 million Yuan from 9.5 million Yuan. In line with the agreement between Dongguan
Hangda Venture Investment Co., ltd. and Dongfeng Technology Development, increasing capital of 15.956 million
Yuan to Haizhuo Energy, among which, 15.5 million Yuan will increased for registered capital, the 456,000 Yuan
will reckoned into the capital reserves of Haizhuo Energy. On 6 March 2018, Dongguan Dongfeng Technology
invested 15.5 million Yuan, a 62% in total registered capital.
(2)Important non-wholly-owned subsidiary
In RMB
Dividend announced to
Share-holding ratio of Gains/losses attributable Ending equity of
Subsidiaries distribute for minority in
minority to minority in the Period minority
the Period
Zhongchuang New
39.02% -138,465.33 0.00 9,335,992.04
Energy
Aolin New Materials 38.00% -431,783.72 0.00 8,299,266.86
Haizhuo Energy 38.00% -182,577.46 0.00 9,267,347.23
Explanation on share-holding ratio of minority different from ratio of voting right:
Other explanation:
(3)Main finance of the important non-wholly-owned subsidiary
In RMB
Ending balance Opening balance
Subsidia Non-curr Non-curr Non-curr Non-curr
Current Total Current Total Current Total Current Total
ries ent ent ent ent
assets assets liabilities liabilities assets assets liabilities liabilities
assets liabilities assets liabilities
Zhongch 16,779,5 7,415,32 24,194,9 271,431. 271,431. 21,246,0 3,327,16 24,573,2 294,923. 294,923.
0.00
uang 84.24 7.05 11.29 67 67 51.26 9.17 20.43 40 40
123
东沣科技集团股份有限公司 2019 年半年度财务报告
New
Energy
Aolin
11,681,3 10,544,9 22,226,2 386,095. 386,095. 16,870,1 6,351,54 23,221,7 245,271. 245,271.
New 0.00
63.95 07.96 71.91 95 95 73.43 7.29 20.72 82 82
Materials
Haizhuo 16,371,0 8,184,52 24,555,5 167,810. 167,810. 18,877,6 6,154,48 25,032,1 163,935. 163,935.
0.00
Energy 43.76 2.44 66.20 34 34 69.29 8.91 58.20 34 34
In RMB
Current period Last period
Cash flow Cash flow
Total Total
Subsidiaries Operation from Operation from
Net profit comprehensi Net profit comprehensi
revenue operation revenue operation
ve income ve income
activity activity
Zhongchuang -23,861,349.7
0.00 -354,817.41 -354,817.41 0.00 1,560.94 1,560.94
New Energy 7
Aolin New -19,670,168.1
0.00 -1,136,272.94 -1,136,272.94 0.00 -360,674.69 -360,674.69
Materials 5
Haizhuo
0.00 -480,467.00 -480,467.00 0.00 -69,251.22 -69,251.22 -8,698,314.81
Energy
Other explanation:
(4)Major restriction on using corporate assets and liquidate corporate debts
(5)Financial or other supporting provided to structuring entity that included in consolidated
financial statement
Other explanation:
2. Transaction that has owners equity shares changed in subsidiary but still with controlling
rights
(1) Owners equity shares changed in subsidiary
(2) Impact on minority’s interest and owners’ equity attributable to parent company
In RMB
Other explanation
124
东沣科技集团股份有限公司 2019 年半年度财务报告
3. Equity in joint venture and associated enterprise
(1)Important joint venture and associated enterprise
Share-holding ratio Accounting
treatment on
Joint venture and
Main operation investment for
associated Registered place Business nature
place Directly Indirectly joint venture and
enterprise
associated
enterprise
Runhua Rural
Water (Tianjin) International
Tianjin Tianjin 30.00% Equity method
International Trading
Trade Co., Ltd.
Share-holding ratio or shares enjoyed different from voting right ratio:
Basis of the voting rights with 20% below but with major influence, or without major influence but with over 20%
(20% included) voting rights hold:
(2)Main financial information of the important joint venture
In RMB
Ending balance/Current period Opening balance/Last period
Other explanation
(3)Main financial information of the important associated business
In RMB
Ending balance/Current period Opening balance/Last period
Other explanation
(4)Financial summary for non-important Joint venture and associated enterprise
In RMB
Ending balance/Current period Opening balance/Last period
Joint venture： -- --
Total on below item by shareholding ratio -- --
Associated enterprise： -- --
Total on below item by shareholding ratio -- --
125
东沣科技集团股份有限公司 2019 年半年度财务报告
Other explanation
(5) Major limitation on capital transfer ability to the Company from joint venture or
affiliates
(6) Excess loss occurred in joint venture or associated
In RMB
Losses un-determined in the
Associated enterprise and joint Accumulated previous losses Accumulated losses
Period(net profit share in the
venture determined un-determined at period-end
Period)
Other explanation
(7) Unconfirmed commitment with joint venture investment concerned
(8) Intangible liability with joint venture or affiliates investment concerned
4. Major conduct joint operation
Shareholding ratio/quota enjoy
Joint operation Main operation place Registered place Business nature
Directly Indirectly
Explanation on shareholding ratio or quota enjoy in joint operation different from voting rights:
If the joint operation was the independent body, basis of classification of joint operation:
Other explanation
5. Structured body excluding in consolidate financial statement
Relevant explanation:
6. Other
X. Risk related with financial instrument
XI. Disclosure of fair value
1. Ending fair value of the assets and liabilities measured by fair value
In RMB
Ending fair value
Item
First-order Second-order Third-order Total
126
东沣科技集团股份有限公司 2019 年半年度财务报告
I. Sustaining measured by
-- -- -- --
fair value
II. Non-sustaining
-- -- -- --
measured by fair value
2. Recognized basis for the market price sustaining and non-persistent measured by fair
value on first-order
3. Valuation technique and qualitative and quantitative information on major parameters
for the fair value measure sustaining and non-persistent on second-order
4. Valuation technique and qualitative and quantitative information on major parameters
for the fair value measure sustaining and non-persistent on third-order
5. Adjustment information and sensitivity analysis of unobservable parameters for the fair
value measure sustaining and non-persistent on third-order
6. Sustaining items measured by fair value, as for the conversion between at all levels,
reasons for conversion and policy for conversion time point
7. Changes of valuation technique in the Period
8. Financial assets and liability not measured by fair value
9. Other
XII. Related party and related transactions
1. Parent company of the enterprise
Share-holding ratio
Voting right ratio on
Parent company Registration place Business nature Registered capital on the enterprise for
the enterprise
parent company
Explanation on parent company of the enterprise
The Company has no parent company; controller refers to the first largest shareholder Mr. Wang Dong, who holds
29.49% equity of the Company.
Ultimate controller of the Company is Mr. Wang Dong
Other explanation:
2. Subsidiary of the Enterprise
Found more in Note for subsidiary .
127
东沣科技集团股份有限公司 2019 年半年度财务报告
3. Associated enterprise and joint venture
Found more in Note
Other associated enterprise and joint venture that have related transaction with the Company in the Period or
occurred in previous period:
Associated enterprise and joint venture Relationship with the Enterprise
Runhua Rural Water (Tianjin) International Trade Co., Ltd. Associated enterprise
Other explanation
4. Other related party
Other related party Relationship with the Enterprise
Runhua RW Industrial Development Company Controller of the associated enterprise of the Company
Shanxi Products Minfeng Chemical Co., Ltd. Controller of the associated enterprise of the Company
Dongguan Hangda Venture Investment Co., Ltd. Non-controlling shareholder of the subsidiary of the Company
Other explanation
5. Related transaction
(1) Goods purchasing, labor service providing and receiving
Goods purchasing/labor service receiving
In RMB
Whether over the
Related party Content Current period Amount approved Last period
transaction limit
Goods sold/labor service providing
In RMB
Related party Content Current period Last period
Explanation on goods purchasing, labor service providing and receiving
(2) Related trusteeship management/contract & entrust management/ outsourcing
Trusteeship management/contract:
In RMB
Termination date Trusteeship/contr
Entrusting Type of Starting date of Pricing basis of
Trustee/ of acting income
party/outsourcing trusteeship/contra trusteeship/contra trusteeship/contra
Contractor trusteeship/contra recognized in the
party cted assets ct cting income
ct period
Explanation on related entrust/contract
128
东沣科技集团股份有限公司 2019 年半年度财务报告
Entrust management/ outsourcing:
In RMB
Termination date Entrusted/outsour
Entrusting Type of Starting date of Pricing basis of
Trustee/ of cing expenses
party/outsourcing entrusted/outsour entrusted/outsour entrusted/outsour
Contractor entrusted/outsour recognized in the
party cing assets cing cing expenses
cing period
Explanation on related management/outsourcing
(3)Related leasing
As a lessor for the Company:
In RMB
Lease income recognized in the Lease income recognized in last
Lessee Assets type
Period Period
As a lessee for the Company:
In RMB
Rental fee recognized in the Rental fee recognized in last
Lessor Assets type
Period Period
Dongguan Hangda Venture
Warehouse and dormitory 1,540,108.02 0.00
Investment Co., Ltd.
Explanation on related lease
Leasing factory: The factory that Dongguan Hangda Venture Capital Co., Ltd. rented out to Dongguan Aolin New
Materials Co., Ltd., Dongguan Haizhuo Energy Technology Co., Ltd., and Dongguan Zhongchuang New Energy
Technology Co., Ltd. is located at Room 101—102, Building No. 6, Modern Enterprise Accelerator No. 24,
Gongye East Road, Songshan Lake High-tech Industrial Development Zone, Dongguan with total building area of
6,399.60 square meters, of which Dongguan Aolin New Materials Co., Ltd. leased building area of 3,226.95 square
meters, Dongguan Haizhuo Energy Technology Co., Ltd. leased building area of 2,008.20 square meters, and
Dongguan Zhongchuang New Energy Technology Co., Ltd. leased building area of 1,164.45 square meters; of
which the factory rent standard (including property management fee) was 36.00 yuan / ㎡/ month (including tax).
and the rent standard for factory adjusted to 39.5 yuan / ㎡/ month (including tax) since March 2019.
Leasing dormitory: The dormitory that Dongguan Hangda Venture Capital Co., Ltd. rented out to Dongguan Aolin
New Materials Co., Ltd., Dongguan Haizhuo Energy Technology Co., Ltd., and Dongguan Zhongchuang New
Energy Technology Co., Ltd. is located at the 7 th Floor, Dormitory No. 8, Modern Enterprise Accelerator No. 24,
Gongye East Road, Songshan Lake High-tech Industrial Development Zone, Dongguan, a total of 19 suites of
single suite. Among them, Dongguan Aolin New Materials Co., Ltd. leased 8 suites of dormitory including Room
706, 707, 708, 709, 710, 711, 712, 713; Dongguan Haizhuo Energy Technology Co., Ltd. leased 8 suites of
dormitory, including Room 714, 715, 717, 718, 719, 720, Dongguan Zhongchuang New Energy Technology Co.,
Ltd. leased 5 suites of dormitory, including Room 701, 702, 703, 704, 705, the dormitory rental standard
(including property management fees) for a single suite was 620 yuan / suite / month (including tax).
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东沣科技集团股份有限公司 2019 年半年度财务报告
(4)Related guarantee
The Company acts as a secured party
In RMB
Whether the guarantee
Secured party Guarantee amount Start date Expiry date
implemented or not
Dongguan Dongfeng
Intelligent Technology 20,000.00 2018-07-02 2023-07-02 N
Co., Ltd
As a secured party by the Company
In RMB
Whether the guarantee
Guarantor Guarantee amount Start date Expiry date
implemented or not
Explanation on related guarantee
In order to meet the operation and development needs of Dongguan Dongfeng Intelligent Technology Co., Ltd.
(hereinafter referred to as “Dongfeng Intelligent”), which is the holding sub-subcompany of Dongfeng Technology
Group, Dongfeng Intelligent intended to apply for a comprehensive credit of the amount of not more than 200
million Yuan from Dongguan Bank Songshan Lake Technology Sub-branch, with a credit period of two years and
a single-use period of no more than five years, the special project was dedicated to the construction of the
equipment industrialization project of Dongfeng New Energy located at the east side of Fuxing Road, Dongguan
Ecological Park, which took the 100% equity of Dongfeng Intelligent held by Dongguan Dongfeng Technology
Development Co., Ltd. (hereinafter referred to as “Technology Development”), a holding subsidiary of the
company, as the pledge guarantee, and Dongfeng Intelligent used its own land and above-ground buildings as
collateral guarantee, Dongfeng Technology Group, Technology Development, Dongguan Zhongchuang New
Energy Technology Co., Ltd., Dongguan Haizhuo Energy Technology Co., Ltd., and Dongguan Aolin New
Materials Co., Ltd. guaranteed with the joint liability warranty; and the guarantee period was 5 years
As of 30th June 2019, Dongfeng Intelligent obtained the long-term loan balance from Bank of Dongguan Co., Ltd.
Songshan Lake Technology Sub-branch of 172.21 million Yuan, the borrowing was limited to the follow-up
construction of the equipment industrialization project of Dongfeng New Energy. Dongfeng Technology Group
Co., Ltd., Dongguan Dongfeng Technology Development Co., Ltd., Dongguan Zhongchuang New Energy
Technology Co., Ltd., Dongguan Aolin New Materials Co., Ltd., and Dongguan Haizhuo Energy Technology Co.,
Ltd. guaranteed with the joint liability warranty; and the collaterals were the land use rights and above-ground
buildings of Yue ( 2017) Dongguan Real Property No. 0121786; the pledge was 100% equity of Dongguan
Dongfeng Intelligent Technology Co., Ltd. held by Dongguan Dongfeng Technology Development Co., Ltd.
(5)Borrowed funds from related party
In RMB
Related party Borrowing amount Start date Expiry date Note
Borrowing funds
130
东沣科技集团股份有限公司 2019 年半年度财务报告
Funds lent
(6)Related party’s assets transfer and debt reorganization
In RMB
Related party Content Current period Last period
(7)Remuneration of key management personnel
In RMB
Item Current period Last period
Remuneration of key management
996,015.00 797,313.00
personnel
(8)Other related transaction
6. Account receivable/payable from/to related party
(1)Receivable item
In RMB
Ending balance Opening balance
Item Related party
Book balance Bad debt provision Book balance Bad debt provision
(2)Payable item
In RMB
Item Related party Ending book balance Opening book balance
7. Commitment of related party
8. Other
XIII. Share-based payment
1. Share-based payment
□ Applicable √ Not-applicable
2. Share-based payment settled by equity
□ Applicable √ Not-applicable
131
东沣科技集团股份有限公司 2019 年半年度财务报告
3. Share-based payment settled by cash
□ Applicable √ Not-applicable
4. Modification and termination of the share-based payment
5. Other
XIV. Commitment and contingency
1. Important commitment
Important commitment on balance sheet date
2. Contingency
(1) Important contingency on balance sheet date
As of 30th June 2019, as for the mortgage loans from the owner of commercial property, balance for guarantee
providing amounted as 39.43 million Yuan.
(2) If the Company has no important contingency need to disclosed, explain reasons
The Company has no important contingency that need to disclose.
3. Other
XV. Events after balance sheet date
1. Important non adjustment matters
In RMB
Impact on financial status and Reasons of fails to estimate the
Item Content
operation results impact
2. Profit distribution
In RMB
132
东沣科技集团股份有限公司 2019 年半年度财务报告
3. Sales return
4. Other events after balance sheet date
XVI. Other important events
1. Previous accounting errors collection
(1)Retrospective restatement
In RMB
Items impact during vary
Content Treatment procedure Accumulated impact
comparative period
(2)Prospective application
Content Approval procedure Reasons
2. Debt restructuring
3. Assets exchange
(1)Exchange of non-monetary assets
(2)Other assets exchange
4. Pension plan
5. Discontinuing operation
In RMB
Profit of
discontinuing
Income tax operation
Item Revenue Expenses Total profit Net profit
expenses attributable to
owners of parent
company
Other explanation
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东沣科技集团股份有限公司 2019 年半年度财务报告
6. Segment
(1)Recognition basis and accounting policy for reportable segment
(2)Financial information for reportable segment
In RMB
Item Offset between segment Total
(3)The Company has no segment, or unable to disclose total assets and liability of the
segment, explain reasons
(4)Other explanation
7. Other major transaction and events makes influence on investor’s decision
8. Other
XVII. Principle notes of financial statements of parent company
1. Account receivable
(1)Category
In RMB
Ending balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Book
Accrual Accrual Book value
Amount Ratio Amount value Amount Ratio Amount
ratio ratio
Including:
Including:
Accrual of bad debt provision on single basis:
In RMB
Ending balance
Name
Book balance Bad debt provision Accrual ratio Reasons of accrual
Accrual of bad debt provision on portfolio:
In RMB
Ending balance
Name
Book balance Bad debt provision Accrual ratio
Explanation on portfolio basis:
134
东沣科技集团股份有限公司 2019 年半年度财务报告
If the provision for bad debts of account receivable is made in accordance with the general model of expected credit
losses, please refer to the disclosure of other account receivable to disclose related information about bad-debt
provisions:
□ Applicable √ Not-applicable
By account age
In RMB
Account age Ending balance
Total 0.00
(2)Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
In RMB
Current changes
Category Opening balance Ending balance
Accrual Collected or reversal Charge-off
Including important amount of bad debt provision collected or reversal in the period:
In RMB
Enterprise Amount collected or reversal Collection way
(3) Account receivables actually charge-off during the reporting period
In RMB
Item Amount charge-off
Including major account receivables charge-off:
In RMB
Amount cause by
Procedure for
Enterprise Nature Amount charge-off Causes related transactions
charge-off
or not (Y/N)
Explanation on account receivable charge-off
(4)Top five account receivables collected by arrears party at ending balance
(5)Account receivable de-recognition due to financial assets transfer
(6)Assets and liabilities resulted by account receivable transfer and continues involvement
Other explanation:
135
东沣科技集团股份有限公司 2019 年半年度财务报告
2. Other account receivable
In RMB
Item Ending balance Opening balance
Other account receivable 18,975,344.61 80,991,042.06
Total 18,975,344.61 80,991,042.06
(1)Interest receivable
1)Category
In RMB
Item Ending balance Opening balance
2)Major overdue interest
Whether has impairment
Borrower Ending balance Overdue time Causes occurred and
determination basis
Other explanation:
3)Accrual of bad debt provision
□ Applicable √ Not-applicable
(2)Dividend receivable
1)Category
In RMB
Item (or invested company) Ending balance Opening balance
2)Major dividend receivable with over one year aged
In RMB
Whether has impairment
Item (or invested Causes of failure for
Ending balance Account age occurred and
company) collection
determination basis
3)Accrual of bad debt provision
□ Applicable √ Not-applicable
Other explanation:
(3)Other account receivable
1) By nature
In RMB
Nature Ending book balance Opening book balance
136
东沣科技集团股份有限公司 2019 年半年度财务报告
Intercourse fund 28,192,271.14 89,225,891.04
Petty cash 1,279,800.89 1,399,398.05
VAT for lands rebate 4,942,346.42 4,942,346.42
Other 2,096,712.03 2,601,289.04
Total 36,511,130.48 98,168,924.55
2)Accrual of bad debt provision
In RMB
Phase I Phase II Phase III
Expected credit Expected credit losses for Expected credit losses for
Bad debt provision Total
losses over next 12 the entire duration (without the entire duration (with
months credit impairment occurred) credit impairment occurred)
Balance on Jan. 1, 2019 17,177,882.49 17,177,882.49
Balance of Jan. 1, 2019
—— —— —— ——
in the period
Accrual in the period 357,903.38 357,903.38
Balance on Jun. 30, 2019 17,535,785.87 17,535,785.87
Change of book balance of loss provision with amount has major changes in the period
□ Applicable √ Not-applicable
By account age
In RMB
Account age Ending balance
Within one year (one year included) 36,375,062.05
Within one year (one year included) 36,375,062.05
1-2 years 17,447.43
2-3 years 28,200.00
Over 3 years 90,421.00
3-4 years 90,421.00
Total 36,511,130.48
3)Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
In RMB
Current changes
Category Opening balance Ending balance
Accrual Collected or reversal
Bad debt provision 17,177,882.49 357,903.38 17,535,785.87
Total 17,177,882.49 357,903.38 17,535,785.87
Important amount of bad debt provision switch-back or collection in the period:
137
东沣科技集团股份有限公司 2019 年半年度财务报告
In RMB
Enterprise Amount switch-back or collection Collection way
4)Other account receivables actually charge-off during the reporting period
In RMB
Item Amount charge-off
Including major other account receivables charge-off:
In RMB
Amount cause by
Procedure for
Enterprise Other Nature Amount charge-off Causes related transactions
charge-off
or not (Y/N)
Other Explanation on account receivable charge-off
5)Top 5 other account receivable collected by arrears party at ending balance
In RMB
Proportion in total
other account Ending balance of
Enterprise Nature Ending balance Account age
receivables at bad debt provision
period-end
Nanjiang Ecological Within one year，1-2
Intercourse fund 16,818,186.90 46.06% 16,818,186.90
Agriculture years and 2-3 years
Within one year，1-2
Huijing Property Intercourse fund 9,146,732.92 25.05%
years and 2-3 years
Tax Bureau of
Intercourse fund 4,942,346.42 Within one year 13.54% 247,117.32
Chengde County
Dongguan Dongfeng
Intercourse fund 2,000,000.00 Within one year 5.48%
Technology
Zhang Dongjun Petty cash 359,378.76 Within one year 0.98%
Total -- 33,266,645.00 -- 91.11% 17,065,304.22
6)Account receivables related to government grant
In RMB
Account age at Time and amount
Enterprise Government grant Ending balance
period-end collected and basis
7)7)Other receivable for termination of confirmation due to the transfer of financial assets
8)The amount of assets and liabilities that are transferred other receivable and continued to be involved
Other explanation:
3. Long-term equity investments
In RMB
138
东沣科技集团股份有限公司 2019 年半年度财务报告
Ending balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Investment for
372,803,036.40 0.00 372,803,036.40 272,803,036.40 0.00 272,803,036.40
subsidiary
Investment for
joint venture and
9,170,370.00 9,170,370.00 0.00 9,170,370.00 9,170,370.00 0.00
associated
enterprises
Total 381,973,406.40 9,170,370.00 372,803,036.40 281,973,406.40 9,170,370.00 272,803,036.40
(1)Investment for subsidiary
In RMB
Changes in the period (+,-)
Opening Ending Ending balance
The invested Accrual
balance(Book Additional Capital balance(Book of impairment
entity Impairment Other
value) investment reduction value) provision
provision
Dongfeng
90,000,000.00 90,000,000.00
Investment
Nanjiang Asia 5,000,166.64 5,000,166.64
Hangzhou
30,000,000.00 30,000,000.00
Dongfeng
Kefeng Trading 45,147,154.77 45,147,154.77
Kefeng
2,655,714.99 2,655,714.99
Engineering
Dongguan
100,000,000.0 100,000,000.0
Dongfeng 200,000,000.00
0 0
Technology
Dongfeng
Power
272,803,036.4 100,000,000.0
Total 372,803,036.40 0.00
0 0
(2) Investment for joint venture and associated enterprise
In RMB
Opening Changes in the period (+,-) Ending Ending
Invested
balance(B balance(B balance
company Additiona Capital Investme Other Other Cash Accrual Other
ook ook of
139
东沣科技集团股份有限公司 2019 年半年度财务报告
value) l reduction nt gains comprehe equity dividend Impairme value) impairme
investmen recognize nsive change or profit nt nt
t d under income announce provision provision
equity adjustmen d to
t issued
I. Joint venture
II. Associated enterprise
Tianjin
9,170,370
Runhua
.00
RW
9,170,370
Subtotal
.00
9,170,370
Total 0.00 0.00
.00
(3)Other explanation
4. Operation income and operation cost
In RMB
Current period Last period
Item
Income Cost Income Cost
Main business 30,461,034.34 25,343,639.52 76,981,775.06 68,854,852.81
Total 30,461,034.34 25,343,639.52 76,981,775.06 68,854,852.81
Whether implemented the new revenue standards
□Yes √No
Other explanation:
5. Investment income
In RMB
Item Current period Last period
Long-term equity investment measured by
36,240,654.50
cost
Other 148,717.94 47,503.07
Total 148,717.94 36,288,157.57
140
东沣科技集团股份有限公司 2019 年半年度财务报告
6. Other
XVIII. Supplementary information
1. Details of current non-recurring profits/gains and losses
√ Applicable □ Not-applicable
In RMB
Item Amount Note
Gains/losses from the disposal of
831,663.08
non-current asset
Except for the effective hedging business
relevant with normal operations of the
Company, the gains/losses of the fair value
by holding the trading financial assets,
derivative financial assets, trading financial
liability and derivative financial liability, as 198,770.44 Financial products income
well as the investment income from disposal
of the trading financial assets, derivative
financial assets, trading financial liability,
derivative financial liability and other
creditors’ investment
Other non-operating income and expense
-389,986.80
other than the above mentioned ones
Total 640,446.72 --
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for
Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring
profit (gain)/loss according to the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on
Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, explain
reasons
□ Applicable √ Not-applicable
2. ROE and earnings per share
Earnings per share
Profits during report period Weighted average ROE Diluted EPS
Basic EPS (Yuan/share)
(Yuan/share)
Net profits belong to common stock
-7.36% -0.035 -0.035
stockholders of the Company
Net profits belong to common stock
-7.38% -0.035 -0.035
stockholders of the Company after
141
东沣科技集团股份有限公司 2019 年半年度财务报告
deducting nonrecurring gains and
losses
3. Difference of the accounting data under accounting rules in and out of China
(1) Difference of the net profit and net assets disclosed in financial report, under both IAS
(International Accounting Standards) and Chinese GAAP (Generally Accepted Accounting
Principles)
□ Applicable √ Not-applicable
(2)Difference of the net profit and net assets disclosed in financial report, under both foreign
accounting rules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not-applicable
(3)Explanation on data differences under the accounting standards in and out of China; as
for the differences adjustment audited by foreign auditing institute, listed name of the
institute
4. Other
142
