Shenzhen China Bicycle Company (Holdings) Limited
Annual Report of 2021
April 2022
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Section I. Important Notice, Contents and Interpretation
Board of Directors, Supervisory Committee, all directors, supervisors and senior
executives of Shenzhen China Bicycle Company (Holdings) Limited (hereinafter
referred to as the Company) hereby confirm that there are no any fictitious
statements, misleading statements, or important omissions carried in this report,
and shall take all responsibilities, individual and/or joint, for the reality,
accuracy and completion of the whole contents.
Li Hai, Principal of the Company, Sun Longlong, person in charge of accounting
works and Zhong Xiaojin, person in charge of accounting organ (accounting
principal) hereby confirm that the Financial Report of 2021 Annual Report is
authentic, accurate and complete.
All directors are attended the Board Meeting for Report deliberation.
The financial report for year of 2021 was audited by Baker Tilly China CPA
(LLP), and an unqualified audit report with significant uncertainty of going
concern was issued. The board of directors and the board of supervisors of the
Company have detailed explanations on related matters. Investors should read
carefully.
The Company plans not to distribute cash dividends, not to send bonus shares,
and no reserve capitalizing.
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Contents
Section I. Important Notice, Contents and Interpretation ...................................... 2
Section III Management Discussion and Analysis.................................................. 11
Section IV Corporate Governance ........................................................................... 32
Section VII. Changes in Shares and Particulars about Shareholders .................. 59
Section VIII. Preferred Stock ................................................................................... 68
Section IX. Corporate Bonds.................................................................................... 69
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Documents Available for Reference
1. Accounting statement carrying the signatures and seals of the legal representative, person in charge of
accounting and person in charge of accounting organ.
2. Originals documents of the Company and manuscripts of public notices that disclosed in the newspaper
designated by CSRC in the report period.
3. Originals documents of the Company and manuscripts of public notices that disclosed in the newspaper
designated by CSRC in the report period.
4. English version of the Annual Report 2021
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Interpretation
Items Refers to Contents
5
Section II. Company Profile and Main Financial Indexes
I. Company information
Short form of the stock Zhonghua A, Zhonghua B Code for share 000017, 200017
The abbreviation of the
N/A
changed stock (if applicable)
Stock exchange for listing Shenzhen Stock Exchange
Name of the Company (in
深圳中华自行车(集团)股份有限公司
Chinese)
Short form of the Company
深中华
(in Chinese)
Foreign name of the Company
Shenzhen China Bicycle Company (Holdings) Limited
(if applicable)
Short form of foreign name of
CBC
the Company (if applicable)
Legal representative Li Hai
Registrations add. No. 3008, Buxin Rd., Shenzhen
Code for registrations add 518019
Historical changes of
N/A
registered address
Offices add. 501 Zhongxin Technology Building, No.31 Bagua Rd., Bagualing, Futian District, Shenzhen
Codes for office add. 518029
Company’s Internet Web Site www.cbc.com.cn
E-mail dmc@szcbc.com
II. Person/Way to contact
Secretary of the Board Rep. of security affairs
Name Sun Longlong Yu Xiaomin, Zhong Xiaojin
501 Zhongxin Technology Building, No.31 501 Zhongxin Technology Building, No.31
Contact add. Bagua Rd., Bagualing, Futian District, Bagua Rd., Bagualing, Futian District,
Shenzhen Shenzhen
Tel. 0755-25516998,28181666 0755-25516998,28181666
Fax. 0755-28181009 0755-28181009
E-mail dmc@szcbc.com dmc@szcbc.com
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III. Information disclosure and preparation place
Website of the Stock Exchange where the annual
Shenzhen Stock Exchange (http://www.szse.cn)
report of the Company disclosed
Media and Website where the annual report of the Securities Times, Hong Kong Commercial Daily, Juchao Website
Company disclosed (http://www.cninfo.com.cn)
501 Zhongxin Technology Building, No.31 Bagua Rd., Bagualing, Futian
Preparation place for annual report
District, Shenzhen
IV. Registration changes of the Company
Organization code 914403006188304524
Changes of main business since listing (if Main products or services provided at present: Emmelle bicycle, electric bicycle,
applicable) lithium battery materials and gold jewelry.
1. In March 1992, the Stock of the Company was listed in Shenzhen Stock Exchange,
and 23.28% equity of the Company was held by Shenzhen Lionda Holding Co., Ltd.
and Hong Kong Dahuan Bicycle Co., Ltd respectively. 2. In March 2002, legal shares
13.58% A-stock of the Company was obtained by China Huarong Asset Management
Co., Ltd. through court auction, and became the first majority shareholder of the
Company. 3. On 13 November 2006, the 65,098,412 legal shears of CBC held by
Huarong Company was acquired by Shenzhen Guosheng Energy Investment
Development Co., Ltd. via the “Equity Transfer Agreement” signed, and first majority
of the Company comes to Guosheng Energy. Guosheng Energy is the wholly-owned
subsidiary of National Investment, actual controller was Zhang Yanfeng. 4. In January
Previous changes for controlling
2011, controlling shareholder of Shenzhen Guosheng Energy Investment Development
shareholders (if applicable)
Co., Ltd.—Shenzhen National Investment Development Co., Ltd. entered into equity
transfer agreement with Mr. Ji Hanfei, 100% equity of Guosheng Energy was transfer
to Mr. Ji Hanfei with price of 70 million. Shenzhen Guosheng Energy Investment
Development Co., Ltd. Shenzhen Guosheng Energy Investment Development Co., Ltd.
holds 63,508,747 A-stock of the Company with 11.52% in total share capital of the
Company. 5. On February 20, 2017, Ji Hanfei and Guosheng Energy made an
“Explanation” to abandon the actual control of the Company, after Ji Hanfei made the
declaration to abandon the actual control of the Company, the investment from CBC by
Mr. Ji changed to general investment instead of actual controlling, and the actual
controller of the Company changed from Ji Hanfei to no actual controller.
V. Other relevant information
CPA engaged by the Company
Name of CPA Baker Tilly China CPA (LLP)
Offices add. for CPA A-1 and A-5 of No.68 Building, No.19 Chegongzhuang West Road, Haidian District Beijing
Signatory accountant Qu Xianfu, Deng Jun
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Sponsor engaged by the Company for performing continuous supervision duties in reporting period
□ Applicable √ Not applicable
Financial consultant engaged by the Company for performing continuous supervision duties in reporting period
□ Applicable √ Not applicable
VI. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data or not
□ Yes √ No
Changes in the current
2021 2020 year over the previous 2019
year (+,-)
Operation revenue (RMB) 165,246,577.95 117,857,480.17 40.21% 76,022,687.75
Net profit attributable to
shareholders of the listed company -1,986,692.82 3,785,834.68 -152.48% -7,186,905.64
(RMB)
Net profit attributable to
shareholders of the listed company
-4,548,872.83 3,071,751.90 -248.09% -7,370,499.83
after deducting non-recurring gains
and losses (RMB)
Net cash flow arising from
15,673,932.87 3,942,228.96 297.59% -13,791,941.34
operating activities (RMB)
Basic earnings per share
-0.0036 0.0069 -152.17% -0.0130
(RMB/Share)
Diluted earnings per share
-0.0036 0.0069 -152.17% -0.0130
(RMB/Share)
Weighted average ROE -20.04% 42.01% -62.05% -53.69%
Changes at end of the
current year compared
Year-end of 2021 Year-end of 2020 Year-end of 2019
with the end of
previous year (+,-)
Total assets (RMB) 97,363,437.22 91,742,769.99 6.13% 62,733,602.58
Net assets attributable to
shareholder of listed company 8,918,538.16 10,905,230.98 -18.22% 7,119,396.30
(RMB)
The lower of the company’s net profit before or after deduction of non-recurring profit (gain)/loss for the last three financial years is
negative, and the audit report for the latest year indicates that there is uncertainty about the company’s ability to continue as a going
concern
□Yes √No
The lower of the net profit before or after deduction of non-recurring profit (gain)/loss is negative
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√Yes □No
Item 2021 2020 Note
operation revenue (RMB) 165,246,577.95 117,857,480.17 N/A
Deduction amount of operation
51,644.42 41,142.96 N/A
revenue 9RMB)
Amount of operation revenue
165,194,966.53 117,816,337.21 N/A
after deduction (RMB)
VII. 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
The Company had no difference of the net profit or net assets disclosed in financial report, under either IAS (International
Accounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
2. Difference of the net profit and net assets disclosed in financial report, under both foreign accounting
rules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign accounting rules or
Chinese GAAP (Generally Accepted Accounting Principles) in the period.
VIII. Quarterly main financial index
Unit: RMB/CNY
Q1 Q2 Q3 Q4
operation revenue 23,163,329.56 30,966,988.04 29,113,392.89 82,002,867.46
Net profit attributable to
-211,535.36 1,577,028.70 575,788.96 -3,927,975.12
shareholders of the listed company
Net profit attributable to
shareholders of the listed company
-211,535.36 -205,058.93 326,846.26 -4,109,642.17
after deducting non-recurring gains
and losses
Net cash flow arising from
1,399,162.83 -3,846,289.65 -3,377,294.28 21,498,353.97
operating activities
Whether there are significant differences between the above-mentioned financial index or its total number and the relevant financial
index disclosed in the company’s quarterly report and semi-annual report
□Yes √ No
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IX. Items and amounts of extraordinary profit (gains)/loss
√Applicable □ Not applicable
Unit: RMB/CNY
Item 2021 2020 2019 Note
Gains/losses from the disposal of
non-current asset (including the write-off - 24,936.44 -
that accrued for impairment of assets)
Government subsidy reckoned into current
gains/losses (except for those with normal
operation business concerned, and conform
to the national policies & regulations and are 397,876.20 - -
continuously enjoyed at a fixed or
quantitative basis according to certain
standards)
Switch-back of provision of impairment of
account receivable which are treated with 1,881,334.27
separate depreciation test
Other non-operation revenue and
expenditure except for the aforementioned 376,450.05 754,370.46 194,691.02
items
Less: Impact on income tax 18.42 0.18 48,672.76
Impact on minority shareholders’
93,462.09 65,223.94 -37,575.93
equity (post-tax)
Total 2,562,180.01 714,082.78 183,594.19 --
Other gains/losses items that conform to the definition of non-recurring gains/losses:
□ Applicable √ Not applicable
The Company does not have other gains/losses items that conform to the definition of non-recurring gains/losses
Information on the definition of non-recurring profit(gain)/loss that listed in the Q&A Announcement No.1 on Information Disclosure
for Companies Offering Their Securities to the Public --- Extraordinary (non-recurring) Profit(gain)/loss as the recurring
profit(gain)/loss
□Applicable √Not applicable
The Company does not have any non-recurring profit(gain)/loss listed under the Q&A Announcement No.1 on Information Disclosure
for Companies Offering Their Securities to the Public --- Extraordinary (non-recurring) Profit(gain)/loss defined as recurring
profit(gain)/loss
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Section III Management Discussion and Analysis
I. Industry of the Company during the reporting period
The Company shall comply with the disclosure requirement of jewelry-related industries in the “Shenzhen Stock Exchange
Self-Regulatory Guidelines for Listed Companies No. 3- Industry Disclosure”
(i) Analysis of the industry market size
1. The product category of the industry is relatively rich
Jewelry can be divided into gold, diamond, jade, colored jewelry and others. Under the background of China’s cultural tradition of
advocating gold jewelry and the investment properties of gold, gold jewelry occupies a relatively high proportion in the domestic
jewelry market, reaching 60.13%. Diamond and jade are also the main categories of jewelry in China, accounting for 13.97% and
9.85%. From the international market, the jewelry markets of developed countries such as the United States, Japan, and Europe are
all dominated by diamond jewelry. Compared with the international market, the main categories of China’s jewelry market are more
abundant, and the proportion of various jewelry markets is more balanced.
2. The actual consumption of gold jewelry has a steady growth
With the growth of the national economy and the accumulation of wealth of residents, China’s demand for gold grew rapidly in the
early 21st century, making it the world’s largest gold consumer. The fall in gold prices in 2013 triggered a boom of buying gold
jewelry, and also overdrew the demand for gold jewelry in advance, which declined from 2013 to 2016. However, after a period of
readjustment, along with the gradual recovery of the economy and gold prices, the gold jewelry industry has bottomed out since
September 2016, and continued to grow steadily in 2017, entering a new round of recovery cycle.
In 2021, the domestic pandemic was effectively controlled, enterprises resumed work and production in an orderly manner, and the
consumer market entered a stage of gradual recovery. The gold jewelry consumer market benefited from the rigid demand for
weddings, which played a positive role in promoting gold jewelry sales. Based on the further improvement of China’s
macroeconomic strength and international status, a huge middle-class consumer group has been formed, which has brought a new
development pattern to the development of the gold jewelry market and opened up new incremental space.
3. Trading value of the diamond jewelry importation increased significantly
With the effectively control of epidemic in China, the diamond imports shows a strong rebound in the first half of 2021 after a
recovery phase in the second half of 2020 and a downturn in the first half of 2020.
According to recent statistics, the number and value of China’s diamond imports from 2016 to 2021 reached a maximum in 2021;
(ii) Industry development trend analysis
1. The increase in industry concentration has become the mainstream trend
In recent years, consumers’ brand awareness has been increasing. In addition, at the end of 2014, the National Jewelry Standards
Technical Committee revised the mandatory national standard “Regulations on the Purity of Precious Metals in Jewelry and Naming”
(GB11887-2012), which deleted the “pure gold” and other titles, guided consumers to pay more attention to jewelry design,
craftsmanship, style and brand value, and no longer be attracted by the words “pure gold” in the slogan and pay more attention to
product quality, prompting small jewelry enterprises to move closer to large jewelry enterprises. The increasing concentration of the
jewelry industry has become the mainstream trend.
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In contrast, some regional branded or unbranded small jewelry companies are at a disadvantage in terms of scale, capital, cost, etc.,
coupled with their own lack of ability in brand operation management, product marketing design, and enterprise operation, in the
case of consumers paying more and more attention to brand, they will have to choose to rely on the development of jewelry brands
with larger brand awareness, which will further promote the improvement of the industry concentration, and the national jewelry
brands will gain an opportunity for vigorous development.
2. Third- and fourth-tier cities become important consumer markets for the jewelry industry
In recent years, the pace of urbanization in China has gradually accelerated, and the urbanization rate has continued to grow.
Residents in rural areas are gradually relocating and settling in nearby third- and fourth-tier cities, which steadily deliver new vitality
to the third- and fourth-tier cities. In the future, the third- and fourth-tier cities will have broad market space and show huge growth
potential. With the sinking trend of the jewelry consumption market, the third- and fourth-tier cities will become the main markets for
the growth of jewelry companies in the future.
3. Channel strength will be regarded as the core competitiveness of enterprises for a long time
The internal competition in the jewelry industry is relatively large, and the fierce market competition makes the construction and
control of sales channels for jewelry companies crucial. At the same time, due to the high value of jewelry, consumers are often
worried about the quality of the product and the reasonableness of the price when purchasing, which often prompts them to purchase
through physical channels.
There is a certain scarcity of high-quality physical channels, and the number of high-quality shops in a region’s high-quality business
districts is scarce. Such high-quality shops can not only provide higher traffic, improve the retail performance of jewelry, but also
have the important value of brand promotion. Therefore, in the fierce market competition, it is very important for jewelry enterprises
to control high-quality physical channels, which reflects the core competitiveness of enterprises on the other side.
4. Brand and design capabilities will become a new driving force for the development of the industry
With the change of consumer demographic structure and the increase of per capital income, the middle and upper middle class and
wealthy people have gradually become the main force of consumption, and the mainstream consumption concept has also quietly
changed. Compared with traditional consumers, emerging consumer groups pay more attention to the design, craftsmanship, style
and brand value of jewelry products, hoping to meet their needs to show their taste and personality. In addition, the National Jewelry
Standards Technical Committee has removed titles such as “pure gold from the national standards, further prompting consumers to
pay attention to the design, craftsmanship, style and brand value of jewelry, rather than overemphasizing purity.
5. There is large space for improving the penetration rate of diamond jewelry
In China, different jewellery products have different market maturity levels. Among them, gold jewelry has a relatively deep
foundation in Chinese culture, and it is still the main jewelry consumption type so far. The diamond jewelry is small in volume but
is growing rapidly, and has a broad space for industry development in the future.
(iii) Competitive advantages of the company to engage in the jewelry and gold business
1. High-quality upstream supplier system
At present, the company has established relatively stable cooperative relationships with major diamond suppliers and processors at
home and abroad, and has advantages in raw material procurement cost, order production cycle and product quality control, which
can continuously reduce supply cost and improve operational efficiency.
2. Diversified downstream market channels and customer resources
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The company is actively expanding its gold jewelry customers now. In addition to customers with clear orders, it is currently
negotiating business cooperation with a number of domestic jewelry brands. The above customers include three types of customers,
of which Class A customers are national well-known brand customers, with more than 500 retail stores; Class B customers are small
and medium-sized/regional/segmented brands, with 300-500 retail stores; Class C customers are small and medium-sized brands,
with 50-100 retail stores.
3. Improve the industrial chain of production and design
The company has a one-stop industrial chain of design, production, processing, testing, and wholesale. Brand owners can rely on our
jewelry processing resources to hand over lower value-added links such as manufacturing and distribution to the company, so as to
focus on the higher value-added brand operation and sales links. Outsourcing in the production and design process can improve the
homogenization of gold jewelry products.
4. Closed-loop business process and risk control system
The company has formulated strict business internal control processes such as supplier admittance standards, customer evaluation
system, full-process order tracking system, and procurement price comparison system, and has realized the closed-loop control of
capital flow, information flow and logistics and the multi-level risk control through the integrated service platform of supply system
and the integrated solution of capital management.
In the bicycle and lithium battery materials industry, as a traditional manufacturing industry, the bicycle industry continues the
dilemma of rising labor costs, manufacturing costs, capital costs, and material costs. The implementation of the new national
standards for safety technical specifications of electric bicycle in April 2019 accelerated the reshuffle of the industry and formed a
new round of industry shocks. In addition, on the basis of the violent shock of shared bicycles with capital advantages on the bicycle
industry and upstream supply chain operations in the past few years, the aftershocks continue to impact the recovery of the industry
due to the lack of profit model and capital chain problems. At the same time, the bicycle industry as a traditional manufacturing field
has also ushered in an important opportunity to accelerate transformation and upgrading under the guidance of the "Made in China
2025" strategy of strengthening the country under the guidance of the basic policy of "innovation-driven, quality-first, green
development, structural optimization, and talent-oriented", ushered in the development opportunities for the implementation of the
new national standards for electric bicycles, and faced important opportunities and challenges of e-commerce development on
channel impact, channel integration and Internet+. Our country is the world's largest country in the production and sales of electric
bicycles. After years of development, electric bicycles have gradually become an important means of transportation for consumers'
daily short-distance trips. At present, there are about 200 million vehicles in the whole society. Structural body, motor, power battery,
and control system, as the core components of electric bicycles, Shenzhen China Bicycle has closely followed up and studied their
technological development, application development and commercial value for a long time, and determined the list of qualified
suppliers for core components year by year. As one of the core components of electric bicycle, lead-acid batteries have been mainly
used as the power batteries in the past ten or twenty years. With the development and popularization of new energy technologies and
new energy materials, it is expected that they will be replaced by lithium batteries on a large scale in the future. The implementation
of the new national standards for safety technical specifications of electric bicycle has comprehensively improved the safety
performance of electric bicycles, adjusted and improved technical indicators such as speed limit, vehicle quality, and pedaling ability.
The new standards that are close to the people's livelihood and serve the people's livelihood have increased the application space of
lithium battery energy storage, and lithium battery electric bicycles will usher in a new stage of development.
II. Main businesses of the Company during the reporting period
During the reporting period, the company mainly engaged in bicycle and lithium battery material business, and jewelry gold business:
(1) Bicycle and lithium battery material business includes production, assembly, procurement, and sales of bicycles and electric
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bicycles, and procurement, sales, and consigned processing of lithium batteries materials, etc.; (2) Gold jewelry business mainly
provides supply management and services in the vertical field of gold jewelry. The company connected with downstream gold
jewelry brands, purchased gold and diamonds according to their product needs, and then entrusted gold jewelry processing plants for
processing, and delivered the inspected and qualified finished products to downstream customers after making product certificate for
them. Through the integration of upstream supplier resources and downstream customer resources, the turnover speed of gold jewelry
products in upstream and downstream has been improved, the cost of circulation has been reduced, and the overall competitive
advantage of upstream and downstream has formed.
As the operation revenue from jewelry-related business for year of 2021 accounts for more than 30% of the Company’s audited
operation revenue for the most recent fiscal year, the Company is required to comply with the disclosure requirement of
jewelry-related industries in the “Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 3- Industry
Disclosure”, specific disclosures are as follow:
(i) Main business models during the reporting period
1.Procurement model
The upstream raw material suppliers of the company’s gold jewelry supply chain business were mainly diamonds and gold, of which
the diamond suppliers were mainly source producers or wholesalers from India or Hong Kong, and domestic mature diamond
wholesalers (generally members of the Shanghai Diamond Exchange) ), gold was mainly purchased from the Shanghai Gold
Exchange through the company's membership qualifications at Shanghai Gold Exchange. The company has established professional
procurement department and team to be responsible for the procurement of diamond products and jewellery. The specific
procurement models varied according to customer needs.
2. Production model
By integrating upstream commissioned processing plants, the company outsourced the production of products ordered by customers
to professional jewelry manufacturers to give full play to their professional and scale effect. In view of the current situation and
characteristics of domestic jewelry processing enterprises, the company established a set of effective supplier management
mechanisms and evaluation standards to achieve a benign interaction between the production system of outsourced manufacturers
and the company's business development.
3. Sales model
According to the annual order planning and regular procurement requirements of brand retailers, the company provided B-end
customers with various forms of supply chain management services such as spot procurement, order production, and customized
development, so as to minimize product inventory and improve the supply chain effectiveness for customers.
Spot procurement: Organized the goods through the integration of upstream factories and exhibition halls and suppliers' product
styles and spot resources, and provided corresponding product structure according to the customer's brand characteristics and
terminal market needs;
Order production: Customers placed orders to the company according to their own needs, and the company purchased raw materials
and subcontracted processing to form finished products and sell them to customers;
Customized development: According to the characteristics of their own brands and future development needs, customers entrusted
the company to develop and design the product styles, and produce finished products to sell to customers.
(ii) Operation of the physical store during the reporting period
During the reporting period, gold and jewelry business of the Company mainly provides supply chain management and services in
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the vertical field of gold and jewelry, it connects with the downstream gold jewelry brand and does not have the physical stores.
(iii) Operation of the on-line sales in reporting period
The Company does not have on-line sales in the Period
(iv) Inventory in the reporting period
As of end of the Period, balance of inventory from jewelry business amounted to 7,685,551.16 yuan, a 27.92% up compared with that
of period-begin, types of the inventory includes:
Unit: RMB/CNY
Item Types Amount Proportion
Jewelry 1,966,368.40 25.59%
Gold jewelry — —
Finished goods
Other — —
Total 1,966,368.40 25.59%
Gold 3,418,162.23 44.48%
Platinum — —
Raw materials
Diamond 1,624,915.85 21.14%
Total 5,043,078.08 65.62%
Wrappage 105,670.36 1.37%
Goods in process 570,434.32 7.42%
Total 7,685,551.16 100.00%
III. Core Competitiveness Analysis
In 2021, based on its own poor economic conditions after the reorganization, the company continued to adhere to the traditional
business development of electric bicycles, strived to carry out new product research and development, and carried out online and
offline sales and brand management; at the same time, based on the long-term process of the electric bicycle business,
correspondingly carried out follow-up research on related industrial projects and technical applications in the upstream and
downstream of the industrial chain. On the basis of extensive commercial contacts and previous businesses, the company continued
to expand the lithium battery material business to enrich the main business. On the one hand, the company continued to promote the
development of the jewelry and gold business and expand the business dimension. In August 2019, the Company and Shenzhen
Zuankinson Jewelry Co., Ltd jointly established a Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd with contribution of 6.5
million yuan. Of which, the Company holds 65% equity, and is the controlling shareholder of Shenzhen Xinsen Jewelry Gold Supply
Chain Co., Ltd, while 35% equity held by Zuankinson Jewelry. According to actual operation development, in February 2020, the
two parties are decided to increase the capital of Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd to 20 million yuan in the
same proportion. Relevant registration capital is fully funded in June 2020. In order to meet the future business development needs of
Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd., it will enhance its financial strength, comprehensive competitiveness and
anti-risk capabilities. In August 2020, the company and the joint venture partner, Shenzhen Zuankinson Jewelry and Gold Supply
Chain Co., Ltd. decided to jointly increase the capital of Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd. in the same
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proportion, increasing the registered capital from 20 million yuan to 200 million yuan, of which, the company newly increased
capital of 117 million yuan, which was successively invested in accordance with its own funds and the availability of funds raised
from the non-public issuance of A shares; Zuankinson Jewelry newly increased capital of 63 million yuan, a total of 180 million yuan
increased. The above mentioned capital increase event has been deliberated and approved by the second extraordinary general
meeting of shareholders of 2020 dated 21 August 2020. On the one hand, making more efforts to promote the selection of
restructuring party and planning for the non-public offering of shares in the hope of improving the business strength and development
momentum of the Company.
In terms of the planning of a non-public offering of shares, on December 30, 2020, the company held the third extraordinary general
meeting of shareholders in 2020, and reviewed and approved the new plan for non-public issuance of A shares, intending to raise
funds from Wansheng Industrial Company through non-public issuance of shares not exceeding 293.6 million yuan, which would be
used to supplement working capital after deducting issuance costs, this issuance would lead to changes in the company's right of
control. On November 11, 2021, the Company received the Approval of Non-public Issue of Shares under the name of Shenzhen
China Bicycle Company (Holdings) Limited (ZJ XK [2021] No. 3552) from the CSRC, which approved the application for the above
non-public offering of shares. The Approval will be valid for 12 months from the date of approval of the issue. Relevant follow-up
works are in progress.
Jewelry and gold business of the Company has gradually become the core business of the Company through the endogenous
development
IV. Main business analysis
1. Overview
In 2021, the global pandemic continued, the world economic recovery was short of impetus, commodity prices fluctuated at a high
level, and the external environment became more complex, severe and uncertain. China’s economic development faced triple
pressures of demand contraction, supply shock, and weakening expectations. Local outbreaks occurred from time to time. The
recovery of consumption and investment was slow, the supply of energy and raw materials was still tight, the pressure of imported
inflation increased, the production and operation of small, medium and micro enterprises and individual industrial and commercial
households were difficult, the task of stabilizing employment became more arduous, and there were many hidden risks in the
economic and financial fields. In the face of complex and severe domestic and international situations and many risks and challenges,
under the leadership of the Party and the government, all people of the whole country worked together to coordinate pandemic
prevention and control and economic and social development, the government took multiple measures to stabilize people’s livelihood,
stabilize businesses and promote employment, and companies increased revenue and reduced expenditure to ensure business stability,
survival and development, and achieved positive results.
In 2021, combine actual condition of financially insecure after reorganization, on the one hand, we continue to adhere to traditional
business model development of electric bicycles, and strive to carry out R&D on new products, and online & offline sales as well as
the brand management works. At the same time, based on the long-term process of the electric bicycle business, the follow-up
research of related industrial projects and technology applications in the upstream and downstream of the industrial chain have been
carried out accordingly, and on the basis of extensive business contacts and businesses in previous years, it continued to expand the
lithium battery material business to enrich the main business. On the one hand, continued to promote the development of the jewelry
gold supply chain business and expand the business dimension. In August 2019, the company and Shenzhen Zuankinson Jewelry Co.,
Ltd. jointly invested 6.5 million yuan to establish Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd., the company holding 65%
of the shares as the controlling shareholder of Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd., while Zuankinson Jewelry
16
holding 35% of the shares. According to the actual situation of business development, in February 2020, the two parties decided to
increase the capital of Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd. to 20 million yuan in the same proportion, and the
relevant registered capital have been in place in June 2020. In order to meet the future operation and development needs of Shenzhen
Xinsen Jewelry Gold Supply Chain Co., Ltd., and enhance its financial strength, comprehensive competitiveness and anti-risk ability,
the company signed a capital increase contract with the joint venture Shenzhen Zuankinson Jewelry and Gold Supply Chain Co., Ltd.
in August 2020, and once again increased capital to Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd. in the same proportion,
and the registered capital was increased from 20 million yuan to 200 million yuan, of which the company increased capital of 117
million yuan, which would be successively invested in accordance with its own funds and the availability of funds raised from the
non-public issuance of A shares; Zuankinson Jewelry newly increased capital of 63 million yuan, totaling 180 million yuan. On
August 21, 2020, the company's 2020 second extraordinary general meeting of shareholders reviewed and approved the above capital
increase. On the one hand, we strived to promote the selection of the company's restructuring party and plan for the non-public
issuance of stocks, hoping to improve the company's business strength and development potential.
In terms of the planning of a non-public offering of shares, on December 30, 2020, the company held the third extraordinary general
meeting of shareholders in 2020, and reviewed and approved the new plan for non-public issuance of A shares, intending to raise
funds from Wansheng Industrial Company through non-public issuance of shares not exceeding 293.6 million yuan, which would be
used to supplement working capital after deducting issuance costs, this issuance would lead to changes in the company's right of
control. On November 11, 2021, the Company received the Approval of Non-public Issue of Shares under the name of Shenzhen
China Bicycle Company (Holdings) Limited (ZJ XK [2021] No. 3552) from the CSRC, which approved the application for the above
non-public offering of shares. The Approval will be valid for 12 months from the date of approval of the issue. Relevant follow-up
works are in progress.
In order to promote the Phase II renovation of Zhonghua Garden and solve the historical legacy of licensing issues, the company and
Shenzhen Jianzhi Industrial Co., Ltd. signed the "Urban renewal project of Zhonghua Garden (Phase II) Cooperation Contract" in
2020. The contract has been reviewed and approved by the company's board meeting and the general meeting of shareholders and
announced to take effect, and our company and Shenzhen Jianzhi Industrial Co., Ltd. Have established a working team to jointly
promote contract performance and related affairs. During the project development process, the Shenzhen Municipal People’s
Congress issued and implemented the Regulations on Urban Renewal of Shenzhen Special Economic Zone on March 1, 2021, as a
result, the residents’ willingness to renew which the project should obtain before applying for the plan to demolish and rebuild urban
renewal units increased from 90% to 95%, and the company’s basis for fulfilling the Cooperation Contract had major changes. Based
on the company’s long-term development, and in order to better solve the problem of handling the property right certificates left by
the residents of Zhonghua Garden Phase II, in October 2021, the board meeting and the general meeting of shareholders considered
and approved that the company would terminate the performance of the Cooperation Contract and no longer be a partner of the
project.
Jewelry and gold business of the Company has gradually become the core business of the Company through the endogenous
development. In 2021, the Company achieved operation revenue of 165.25 million yuan through various efforts to carry out, the net
profit attributable to shareholder of listed company was -1.99 million yuan.
Item Period-end/current Period-begin/last Y-o-y Cause of change
period period changes (+,-)
Operation revenue 165,246,577.95 117,857,480.17 Revenue from jewelry and gold business increased
40.21%
during the Period
Operation cost 152,606,986.59 103,221,623.73 47.84% Costs from jewelry and gold business increased
17
during the Period
Credit impairment loss -2,398,980.61 -603,180.13 Increase in the impairment of account receivable
297.72%
(loss is listed with “-”) in the Period compared with previous period
Net profit -1,639,556.00 4,375,706.59 The revenue increased in the Period, gross profit
-137.47%
declined and the expenses and bad debts increased
Net profit attributable to -1,986,692.82 3,785,834.68 The revenue increased in the Period, gross profit
shareholder of parent -152.48% declined and the expenses and bad debts increased
company
Net cash flow arising 15,673,932.87 3,942,228.96 Receipt of the first repurchase payment for the
from operating activities 297.59% Shajing cooperation lands on behalf of the
manager in the Period
Net cash flow arising -18,890.56 46,381.18 Purchasing new fixed assets in the Period while
-140.73%
from investment activities fixed assets are disposed in the previous period
Net cash flow arising -2,296,062.44 9,825,000.00 Current period refers to the amount of lease
from financing activities payment under the new lease standards, the
-123.37% previous period refers to the minority investment
received by subsidiary Xinsen due to capital
increase
Monetary fund 33,246,957.92 19,887,978.05 Receipt of the first repurchase payment for the
67.17% Shajing cooperation lands on behalf of the
manager in the Period
Other current assets 1,814,200.53 2,715,425.31 -33.19% Decrease in the retained credit in the Period
Deferred income tax Reversal of deferred income tax assets by
64,046.67 793,170.75 -91.93%
assets subsidiary
Contract liability 124,328.07 15,254,713.38 Deposit received in the previous period for
-99.18% Zhonghua Garden Phase II and the rents received
in advance are transferred to other account payable
Other account payable Receipt of the first repurchase payment for the
Shajing cooperation lands on behalf of the
manager in the Period, and deposit received in the
61,407,301.04 37,882,805.52 62.10%
previous period for Zhonghua Garden Phase II and
the rents received in advance are transferred to
other account payable
Non-current liability due Re-classification of the lease liability due within
1,456,782.04
within one year one year
Other current liability Decrease in contract liability, and the taxes
11,700.06 1,175,251.38 -99.00%
declined correspondingly
18
2. Revenue(income) and cost
(1) Constitute of operation revenue
Unit: RMB/CNY
2021 2020
Ratio in operation Ratio in operation Y-o-y changes (+,-)
Amount Amount
revenue revenue
Total operation
165,246,577.95 100% 117,857,480.17 100% 40.21%
revenue
According to industries
Sales of bicycles and
9,629,736.29 5.83% 16,435,436.09 13.95% -41.41%
spare parts
Lithium battery
19,745,299.24 11.95% 13,405,034.83 11.37% 47.30%
material
Jewelry and gold 132,915,435.90 80.43% 87,064,073.74 73.87% 52.66%
Other 2,956,106.52 1.79% 952,935.51 0.81% 210.21%
According to products
Sales of bicycles and
9,629,736.29 5.83% 16,435,436.09 13.95% -41.41%
spare parts
Lithium battery
19,745,299.24 11.95% 13,405,034.83 11.37% 47.30%
material
Jewelry and gold 132,915,435.90 80.43% 87,064,073.74 73.87% 52.66%
Other 2,956,106.52 1.79% 952,935.51 0.81% 210.21%
According to region
Domestic 165,246,577.95 100.00% 117,857,480.17 100.00% 40.21%
According to sale model
Direct sales 165,246,577.95 100.00% 117,857,480.17 100.00% 40.21%
(2) Industries, products, regions and sales model that account for more than 10% of the operating revenue
or operating profit of the Company
√ Applicable □Not applicable
Unit: RMB/CNY
Increase/decrease Increase/decrease Increase/decrease
Operating
Operating cost Gross profit ratio of operating of operating cost of gross profit
revenue
revenue y-o-y y-o-y ratio y-o-y
According to industries
19
Sales of bicycles
9,629,736.29 5,156,724.06 46.45% -41.41% -37.11% -3.66%
and spare parts
Lithium battery
19,745,299.24 19,684,264.57 0.31% 47.30% 49.22% -1.28%
material
Jewelry and gold 132,915,435.90 124,935,947.83 6.00% 52.66% 54.36% -1.03%
Other 2,956,106.52 2,830,050.13 4.26% 210.21% 217.92% -2.33%
According to products
Sales of bicycles
9,629,736.29 5,156,724.06 46.45% -41.41% -37.11% -3.66%
and spare parts
Lithium battery
19,745,299.24 19,684,264.57 0.31% 47.30% 49.22% -1.28%
material
Jewelry and gold 132,915,435.90 124,935,947.83 6.00% 52.66% 54.36% -1.03%
Other 2,956,106.52 2,830,050.13 4.26% 210.21% 217.92% -2.33%
According to region
Domestic 165,246,577.95 152,606,986.59 7.65% 40.21% 47.84% -4.77%
According to sale model
Direct sales 165,246,577.95 152,606,986.59 7.65% 40.21% 47.84% -4.77%
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main business based on
latest one year’s scope of period-end
□ Applicable √ Not applicable
(3) Income from physical sales larger than income from labors
√ Yes □ No
Industries Item Unit 2021 2020 Y-o-y changes (+,-)
Sales volume 10,000 10.83 12.79 -15.32%
Bicycle, electric
Output 10,000 10.83 12.63 -14.25%
bicycle
Inventory 10,000 0.02 0.02 0.00%
Sales volume Ton 538.38666 126 327.29%
Lithium battery Output
material Inventory
Purchasing volume Ton 538.38666 126 327.29%
Sales volume 10,000 sets 1,930 1,063 81.56%
Lithium battery Output
material Inventory
Purchasing volume 10,000 sets 1,930 1,063 81.56%
20
Sales volume 10,000 square meters 136.3 27.28 399.63%
Lithium battery Output
material Inventory
Purchasing volume 10,000 square meters 136.3 27.28 399.63%
Sales volume 10,000 34.585 225 -84.63%
Lithium battery Output
material Inventory
Purchasing volume 10,000 34.585 225 -84.63%
Sales volume Piece 73,628 43,673 68.59%
Output
Jewelry and gold
Inventory Piece 3,803 3,019 25.97%
Purchasing volume Piece 74,412 44,986 65.41%
Reasons for y-o-y relevant data with over 30% changes
√Applicable □Not applicable
1. Revenue from bicycle business mainly refers to the brand fee income earned based on the number of complete bicycles, proportion
of traditional vehicle sales declined significantly.
2.The jewelry and gold business from subsidiary Xinsen are fully carried out in the year, last year, Xinsen was just starting up after
establishment of the business.
(4) Performance of significant sales contracts, major procurement contract entered into by the company up
to the current reporting period
□ Applicable √ Not applicable
(5) Constitute of operation cost
Classification of industries
Unit: RMB/CNY
2021 2020
Y-o-y changes
Industries Item Ratio in operation Ratio in operation
Amount Amount (+,-)
cost cost
Sales of bicycles Sales of bicycles
5,156,724.06 3.38% 8,199,519.90 7.94% -37.11%
and spare parts and spare parts
Lithium battery Lithium battery
19,684,264.57 12.90% 13,191,331.01 12.78% 49.22%
material material
Jewelry and gold Jewelry and gold 124,935,947.83 81.87% 80,940,595.81 78.41% 54.36%
Other IT business 2,830,050.13 1.85% 890,177.01 0.86% 217.92%
21
Explanation
Nil
(6) Whether the changes in the scope of consolidation in Reporting Period
□Yes √No
(7) Major changes or adjustment in business, product or service of the Company in Reporting Period
□ Applicable √ Not applicable
(8) Major sales and main suppliers
Major sales client of the Company
Total top five clients in sales (RMB) 144,770,923.43
Proportion in total annual sales volume for top five clients 87.61%
Ratio of related parties in annual total sales among the top
0.00%
five clients
Information of top five clients of the Company
Serial Name Sales (RMB) Proportion in total annual sales
1 Client 1 50,175,247.88 30.36%
2 Client 2 46,845,161.35 28.35%
3 Client 3 18,341,278.46 11.10%
4 Client 4 16,751,032.35 10.14%
5 Client 5 12,658,203.39 7.66%
Total -- 144,770,923.43 87.61%
Other situation of main clients
□ Applicable √ Not applicable
Main suppliers of the Company
Total purchase amount from top five suppliers (RMB) 108,927,207.08
Proportion in total annual purchase amount for top five
71.38%
suppliers
Ratio of related parties in annual total sales among the top
0.00%
five suppliers
Information of top five suppliers of the Company
Serial Name Purchase (RMB) Proportion in total annual purchase
22
1 Supplier 1 55,287,701.91 36.23%
2 Supplier 2 46,191,345.21 30.27%
3 Supplier 3 2,901,402.77 1.90%
4 Supplier 4 2,419,911.50 1.59%
5 Supplier 5 2,126,845.69 1.39%
Total -- 108,927,207.08 71.38%
Other notes of main suppliers
□ Applicable √ Not applicable
3. Expenses
Unit: RMB/CNY
Y-o-y changes
2021 2020 Note of major changes
(+,-)
Increase of the sales expenses due to
Sales expenses 3,303,956.30 2,540,657.03 30.04%
the growth of revenue
Administrative expenses 6,154,605.29 4,783,608.32 28.66%
Financial expenses 10,640.11 18,718.74 -43.16%
R&D expenses 2,037,197.58 2,506,877.57 -18.74%
4. R&D investment
√ Applicable □ Not applicable
Expected impact on the future
Projects Purpose Progress Goals to be achieved
development of the Company
R&D of the bicycle Further improve the comfort
Enhance customer experience
clutching structure Save more energy when of bicycle riding by
R&D in progress and riding comfort,improve
reset force-saving cycling improving the bicycle
the product superiority
technology clutching structure
R&D of
multi-control points
spontaneous Enhance the electric Further improve the effect of Enhance product safety and
combustion vehicle spontaneous R&D in progress spontaneous combustion improve the business of the
protection combustion protection protection of electric vehicles Company
technology for
electric vehicle
Design of the
Further improve the Improve the load-bearing
stress-bearing Enhance the load-bearing
R&D in progress performance of load-bearing performance to better meet
structure for capability
structure customer needs
external buckle
23
bicycle wheel
R&D of the drum
brake control
Enhance the drum brake Further improve the drum Improve product safety and
technology for
control performance of R&D in progress brake control performance of enhance the business of the
electric vehicles
electric vehicles electric vehicles Company
with heat
dissipation structure
R&D of the battery
Improve the effect of
leakage prevention Further improve the battery
battery leakage Enhance product performance
technology for R&D in progress leakage prevention for electric
prevention for electric and improve the quality
U-zone type electric vehicle
vehicle
vehicle
R&D of the split
force cushioning Further improve the overall
Enhance product performance
damping Riding stability R&D in progress performance of mountain
and improve the quality
technology for the bikes
mountain bike
Personnel of R&D
2021 2020 Change ratio(+,-)
Number of R&D (people) 19 24 -20.83%
Ratio of number of R&D 31.67% 36.92% -5.25%
Educational background —— —— ——
Undergraduate 6 9 -33.33%
Master 0 0 0.00%
Below bachelor’s degree 13 15 -13.33%
Age composition —— —— ——
Under 30 2 2 0.00%
30~40 1 2 -50.00%
Over 40 16 20 -20.00%
Investment of R&D
2021 2020 Change ratio(+,-)
R&D investment (RMB) 2,037,197.58 2,506,877.57 -18.74%
R&D investment/Operation
1.23% 2.13% -0.90%
revenue
Capitalization of R&D
0.00 0.00 0.00%
investment (RMB)
24
Capitalization of R&D
0.00% 0.00% 0.00%
investment/R&D investment
Reasons and effects of significant changes in composition of the R&D personnel
□Applicable √Not applicable
The reason of great changes in the proportion of total R&D investment accounted for operation revenue than last year
□ Applicable √ Not applicable
Reason for the great change in R&D investment capitalization rate and rational description
□ Applicable √ Not applicable
5. Cash flow
Unit: RMB/CNY
Item 2021 2020 Y-o-y changes (+,-)
Subtotal of cash in-flow arising
208,259,853.20 121,626,558.28 71.23%
from operation activity
Subtotal of cash out-flow
192,585,920.33 117,684,329.32 63.65%
arising from operation activity
Net cash flow arising from
15,673,932.87 3,942,228.96 297.59%
operating activities
Subtotal of cash in-flow arising
64,500.00 -100.00%
from investment activity
Subtotal of cash out-flow
18,890.56 18,118.82 4.26%
arising from investment activity
Net cash flow arising from
-18,890.56 46,381.18 -140.73%
investment activities
Subtotal of cash in-flow arising
9,825,000.00 -100.00%
from financing activity
Subtotal of cash out-flow
2,296,062.44
arising from financing activity
Net cash flow arising from
-2,296,062.44 9,825,000.00 -123.37%
financing activities
Net increased amount of cash
13,358,979.87 13,813,610.14 -3.29%
and cash equivalent
Main reasons for y-o-y major changes in aspect of relevant data
√ Applicable □ Not applicable
The other payable formed arising from the receipt of prior payment for goods and receipt of repurchase payment for the Shajing
cooperation plots on behalf of the management in the current Period
Reasons of major difference between the cash flow of operation activity in report period and net profit of the Company
25
√ Applicable □ Not applicable
The other payable formed arising from the receipt of prior payment for goods and receipt of repurchase payment for the Shajing
cooperation plots on behalf of the management in the current Period
V. Analysis of the non-main business
√ Applicable □ Not applicable
Unit: RMB/CNY
Amount Ratio in total profit Note Whether be sustainable (Y/N)
VI. Analysis of assets and liability
1. Major changes of assets composition
Unit: RMB/CNY
Year-end of 2021 Year-begin of 2021 Ratio
Ratio in total Ratio in total changes Note of major changes
Amount Amount
assets assets (+,-)
Monetary fund 33,246,957.92 34.15% 19,887,978.05 21.67% 12.48%
Account
46,850,083.59 48.12% 55,031,424.70 59.98% -11.86%
receivable
Inventory 8,248,573.77 8.47% 7,729,325.94 8.42% 0.05%
Fix assets 3,439,212.00 3.53% 3,792,133.36 4.13% -0.60%
Right-of-use
1,505,258.90 1.55% 3,051,512.28 3.33% -1.78%
assets
Contract liability 124,328.07 0.13% 15,254,713.38 16.63% -16.50% 预收的款项转入其他应付款
Lease liability 228,302.37 0.23% 3,051,512.28 3.33% -3.10%
Foreign assets account for a relatively high proportion
□ Applicable √ Not applicable
2. Assets and liability measured by fair value
□ Applicable √ Not applicable
3. The assets rights restricted till end of the period
1.At the end of the current period, the total fixed output value included six suites of house properties at 7-20F Lianxin JiaYuan,
Luohu District, Shenzhen purchased in 2016, with original value of 2,959,824.00 Yuan, which were affordable housing purchased
from the Housing and Construction Bureau of Luohu District to provide to enterprise talents for living. The contract stipulated that
the purchasing enterprise is not allowed to conduct any form of property rights transaction with any units or individual other than the
government.
26
VII. Investment analysis
1. Overall situation
□ Applicable √ Not applicable
2. The major equity investment obtained in the reporting period
□ Applicable √ Not applicable
3. The major non-equity investment doing in the reporting period
□ Applicable √ Not applicable
4. Financial assets investment
(1) Securities investment
□ Applicable √ Not applicable
The company had no securities investment in the reporting period.
(2) Derivative investment
□ Applicable √ Not applicable
The Company has no derivatives investment in the Period
5. Application of raised proceeds
□ Applicable √ Not applicable
The company had no application of raised proceeds in the reporting period.
VIII. Sales of major assets and equity
1. Sales of major assets
□ Applicable √ Not applicable
The Company had no sales of major assets in the reporting period.
2. Sales of major equity
□ Applicable √ Not applicable
IX. Analysis of main holding company and stock-jointly companies
√Applicable □ Not applicable
27
Particular about main subsidiaries and stock-jointly companies net profit over 10%
Unit: RMB/CNY
Company Main Register operation Operating
Type Total assets Net assets Net profit
name business capital revenue profit
Shenzhen Supply
Xinsen chain
Jewelry Gold Subsidiary business of 200,000,000 46,442,081.76 36,869,944.43 132,915,435.90 2,631,422.30 2,454,072.50
Supply Chain jewelry and
Co., Ltd gold
Shenzhen Distribution
Emmelle of bicycles
Subsidiary 5,000,000 13,390,171.56 3,675,601.16 1,860,173.32 -849,317.86 -1,634,645.53
Industrial and spare
Co., Ltd. parts
Particular about subsidiaries obtained or disposed in report period
□ Applicable √ Not applicable
Notes of holding and shareholding companies
1.The Company holds 65 percent equity of the Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd, the balance of minority equity
at period-end amounting to 13,396,980.54 Yuan.
2.The Company holds 70 percent equity of the Shenzhen Emmelle Industrial Co., Ltd., the balance of minority equity at period-end
amounting to 1,096,312.26 Yuan.
X. Structured vehicle controlled by the Company
□ Applicable √ Not applicable
XI. Future Development Prospects
i. Development trend of the industry the Company operates in and market competition pattern it deals with:
In the gold and jewelry industry, in the context of China’s sustained rapid economic growth and rising per capita income levels, in
addition to meeting the need for keeping the value, the jewelry consumption is also a requirement for people to pursue fashion and
show personality. At present, China is one of the world’s largest, most important, and fastest-growing jewellery markets, the
consumption of many jewellery categories ranks in the forefront of the world, among which the sales of gold, silver, platinum, jade,
pearls and other products rank first in the world. China’s jewelry gold industry market has formed a three-legged pattern of domestic,
Hong Kong and foreign brands, and the market shares continue to be concentrated. At present, China’s per capital jewelry
consumption is still far lower than that of developed countries, and our jewelry gold consumption market still has a lot of room for
improvement, but the market competition is fierce. In August 2019, the company invested in the establishment of a holding
subsidiary, Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd., and began to get involved in the supply chain business of jewelry
and gold. Jewelry and gold business of the Company has gradually become the core business of the Company through the
endogenous development
28
As a sector in the traditional manufacturing field, the bicycle industry continued the dilemma of rise in labor costs, manufacturing
costs, capital costs, and material costs. In April 2019, the implementation of the new national standard of safety technical
specifications for electric bicycles accelerated the industry reshuffle and resulted a new round of industry shock. In addition, in the
past two years, the bike sharing has been violently oscillating the bicycle industry and the upstream supply chain operations with
capital advantages, due to the lack of profit model and capital chain problems, its aftershocks continue to rattle the industry’s
recovery. At the same time, as a traditional manufacturing industry, the bicycle industry also ushered in the “Made in China 2025”
strategy, under the guidance of the basic principles of “Innovation Driven, Quality First, Green Development, Structure Optimization,
and Talent Based”, took the important opportunity to speed up the transformation and upgrading, ushered in the development
opportunity of the implementation of the new national standards for electric bicycles, and also faced with the important challenges of
e-commerce development impacts on channels, channel integration and Internet+. China has the world’s largest production and
marketing of electric bicycles, after years of development, electric bicycles have gradually become an important means of
transportation for consumers on everyday short-distance trips, at present, there are about 200 million bicycles in the entire society.
Structural body, motor, power battery, and control system are the core components of electric bicycles, CBC has been closely
following up the research on their technological development, application development, and commercial value for a long period of
time, and has determined the qualified suppliers for core components year by year. As one of the core components of electric bicycle,
power batteries have been mainly lead-acid batteries in the past decade or two, with the development and popularization of new
energy technologies and new energy materials, it is expected to be replaced by the lithium batteries in the future. The implementation
of the new national standard for electric bicycle safety technical specifications has comprehensively improved the safety performance
of electric bicycles, and adjusted and improved technical indicators such as speed limits, vehicle quality, and pedaling ability. The
new standard is close to people’s livelihood and serving people’s livelihood, which improved the application space of lithium battery
energy storage, and the lithium battery electric bicycle is ushering in a new stage of development.
ii. Future development opportunity and new yearly business plan of the Company:
On the basis of business work over the past few years, the business plan of the Company for 2022 is:
1. Continue to actively cooperate with shareholders and the board of directors to promote the reorganization of the company and
make efforts to promote the successful completion of non-public offering of shares.
2. Standardize operations, further reform and improve the internal operation management system, assessment mechanism, strengthen
the construction of management teams, business teams and technical teams. Rolling perfected the development plan of the Company.
3. In terms of gold and jewelry business, further establish supplier systems and expand customer resources, improve internal business
processes and internal control system construction, promote the construction of a supply chain system platform to improve
operational quality and efficiency, and strive to achieve greater growth in operating income.
4. In terms of electric bicycles and lithium battery material business, for key mature areas such as Shandong, Henan, Hebei, Jiangsu,
etc., organize supply of goods, control quality, coordinate transportation and improve after sales order by order, and ensure stable
order business; for other areas, actively strengthen communication and cooperation with ODM factories to give full play to ODM
factories' regional advantages, use its existing sales network for distribution cooperation, expand the brand influence and distribution
cooperation basis of the EMMELLE brand in the distribution team of other cooperative manufacturers, so as to promote the growth
of orders.
5.Parallel the negotiation and responding to the counterclaims, facilitate the early resolution of termination of the cooperation
contract of the urban renewal project for phase II of Zhonghua Garden.
6. Strengthen the background management and office automation, and improve the support degree of background departments to
front desk business.
iii. Risk factors adverse to the Company’s development:
(1) The international political and economic situation was complex and severe, wars and geopolitical disputes appeared one after
29
another, the global pandemic continued, and commodity prices fluctuated at high levels.
(2) China’s economic development faced triple pressures of demand contraction, supply shock, and weakening expectations. Local
outbreaks occurred from time to time. The recovery of consumption and investment was slow, the supply of energy and raw materials
was still tight, the pressure of imported inflation increased, the production and operation of small, medium and micro enterprises and
individual businesses were difficult, the task of stabilizing employment became more arduous, and there were many hidden risks in
the economic and financial fields.
(3) Domestic local epidemics still occurred from time to time, which posed problems and challenges to business liaison, material
supply, production organization, sales and transportation, etc., and accordingly affected materials, transportation, labor, management
cost and operational efficiency.
In the fave of the above problems, the central government and governments at all levels have taken multiple measures to stabilize the
people’s livelihood, stabilize the enterprises and employment, the Company will strive to maintain stability and seek development
through increase the income and reduce the expenditures. Combined withe the actual situation of its own thin family background
after the reorganization, on the one hand, the Company continue to adhere to the traditional business development of electric bicycles,
and strive to carry out the R&D of new products and online & offline sales and brand management works; at the same time, based on
the long-term process of the electric bicycle business, the follow-up research of related industrial projects and technology
applications in the upstream and downstream of the industrial chain have been carried out accordingly, and on the basis of extensive
business contacts and businesses in previous years, it continued to expand the lithium battery material business to enrich the main
business. On the other hand, continued to promote the development of the jewelry gold supply chain business and expand the
business dimension. In August 2019, the company and Shenzhen Zuankinson Jewelry Co., Ltd. jointly invested 6.5 million yuan to
establish Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd., the company holding 65% of the shares as the controlling
shareholder of Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd., while Zuankinson Jewelry holding 35% of the shares.
According to the actual situation of business development, in February 2020, the two parties decided to increase the capital of
Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd. to 20 million yuan in the same proportion, and the relevant registered capital
has been in place in June 2020. In order to meet the future operation and development needs of Shenzhen Xinsen Jewelry Gold
Supply Chain Co., Ltd., and enhance its financial strength, comprehensive competitiveness and anti-risk ability, the company signed
a capital increase contract with the joint venture Shenzhen Zuankinson Jewelry and Gold Supply Chain Co., Ltd. in August 2020, and
once again increased capital to Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd. in the same proportion, and the registered
capital was increased from 20 million yuan to 200 million yuan, of which the company increased capital of 117 million yuan, which
would be successively invested in accordance with its own funds and the availability of funds raised from the non-public issuance of
A shares; Zuankinson Jewelry newly increased capital of 63 million yuan, totaling 180 million yuan. On August 21, 2020, the
company's 2020 second extraordinary general meeting of shareholders reviewed and approved the above capital increase. On the one
hand, we strived to promote the selection of the company's restructuring party and plan for the non-public issuance of stocks, hoping
to improve the company's business strength and development potential.
In terms of the planning of a non-public offering of shares, on December 30, 2020, the company held the third extraordinary general
meeting of shareholders in 2020, and reviewed and approved the new plan for non-public issuance of A shares, intending to raise
funds from Wansheng Industrial Company through non-public issuance of shares not exceeding 293.6 million yuan, which would be
used to supplement working capital after deducting issuance costs, this issuance would lead to changes in the company's right of
control. On November 11, 2021, the Company received the Approval of Non-public Issue of Shares under the name of Shenzhen
China Bicycle Company (Holdings) Limited (ZJ XK [2021] No. 3552) from the CSRC, which approved the application for the above
non-public offering of shares. The Approval will be valid for 12 months from the date of approval of the issue. Relevant follow-up
works are in progress.
30
XII. Reception of research, communication and interview during the reporting period
√ Applicable □ Not applicable
Main content
Reception Basic situation index of
Time Way Reception type Object and information
location investigation
provided
Consulting
Telephone Individual company
Jan.-Mar. 2021 The Company Individual N/A
communication investor restructuring
problem
Inquiry progress
Telephone Individual
April- June 2021 The Company Individual of the private N/A
communication investor
placement
Inquiry the
progress of
urban renewal
July - September Telephone Individual
The Company Individual project of N/A
2021 communication investor
Zhonghua
Garden (Phase
II)
Inquiry progress
October - Telephone Individual
The Company Individual of the private N/A
December 2021 communication investor
placement
31
Section IV Corporate Governance
I. Corporate governance of the Company
During the reporting period, the Company was strictly in accordance with the "Company Law", "Securities Law" as well as "Listing
Corporation Management Standards" and other relevant laws, regulations and normative documents. We combined the actual
situation, constantly improved the corporate governance structure, and strive to build a modern enterprise system. Operation,
assembling and holding of general meeting of shareholders, the Board of Directors and board of supervisors were strictly with
relevant rules of procedure. Thus we protected interests of the Company. The actual situation of corporate governance structure was
in accordance with the release of normative documents about the listing Corporation management rules from China Securities
Regulatory Commission.
1.Shareholders and Shareholders General Meeting
During the reporting period, the convening and convening procedures, the qualification of persons attending the general meeting and
voting procedures were in compliance with the Company Law, the Rules for General Meeting of Shareholders of the Listed
Companies, the Article of Association, other relevant laws and regulations. For the proposals deliberated in the Meeting are provided
with internet voting by the Company to facilitate the exercise of shareholder’s rights and further protect the legitimate interest of the
shareholders.
2. Listed companies and first largest shareholder
During the reporting period, the Company has no controlling shareholders and no actual controllers. The Company has independent
business and autonomous management capabilities, major decision of the Company are made by the general meeting of shareholders
in accordance with the law. The major shareholder has exercise their rights in a regulated manner and has not acted to the detriment
of the Company and interest of the small and medium shareholders.
3. Directors and BOD (Board of Directors)
The Company strictly follow the laws and provision of Article of Association, directors of the Company are able to attend the Board
Meeting and shareholders general meeting in a serious and responsible manner, and properly perform their duties as directors in line
with the Article of Association. The special committees under the BOD carry out their works in accordance with the implementation
rules of the committee and perform their duties conscientiously.
4.Supervisor and BOS(Board of Supervisory)
The Company strictly follow the laws and provision of Article of Association, supervisor of the Company are able to perform their
duties diligently and conscientiously, to be able to attend shareholders general meeting in the spirit of responsibility to shareholders,
to attend the on-site meetings of the BOD and to supervise the directors, the decision-making procedures and resolution of the Board,
as well as the operation of the Company in line with the law. And they able to supervise the finances and legal compliance of the
directors and senior executives in the performance of their duties.
5. Information disclosure
The Company strengthens the management of information disclosure and discloses the information truthfully, accurately, timely and
completely, in strict accordance with the relevant laws and regulations as well as the Information Disclosure Management System.
During the reporting period, the Securities Times, Hong Kong Commercial Daily and Juchao Website (http://www.cninfo.com.cn)
are the media for information disclosure designated by the Company to ensure that all investors have fair access to the company’s
32
information.
6. Investor relations
The Company lays great stress on maintaining the good communication with investors. During the reporting period, by means of the
performance communication meeting and various means such as online group reception days for listed companies, the Company
introduce the development strategy and business development to the investors; the Company actively uses the investor relations
interactive platform as an important channel of communication with investors, especially small and medium-sized investors, and
answers investor’s questions on the platform in a timely and serious manner.
Is there any difference between the actual condition of corporate governance and relevant regulations about corporate governance for
listed company from CSRC?
□Yes √ No
There are no differences between the actual condition of corporate governance and relevant regulations about corporate governance
for listed company from CSRC.
II. Independence of the Company relative to controlling shareholder and the actual controller
in ensuring the Company’s assets, personnel, finance, organization and businesses
The Company separate business, personnel, assets, institute and finance with largest shareholder or other related parties, owes
independent and completed self-operation ability.
III. Horizontal competition
□ Applicable √ Not applicable
IV. In the report period, the Company held annual shareholders’ general meeting and
extraordinary shareholders’ general meeting
1. Annual Shareholders’ General Meeting in the report period
Ratio of investor
Session of meeting Type Date Date of disclosure Resolutions
participation
Refer to the Juchao
Website
(www.cninfo.com.cn):
Annual General
AGM 12.41% 2021-06-28 2021-06-29 Notice of Resolution of
Meeting of 2020
Annual General
Meeting 2020 (No.:
2021026)
Refer to the Juchao
First Extraordinary Extraordinary
Website
shareholders general shareholders general 11.79% 2021-10-12 2021-10-13
(www.cninfo.com.cn):
meeting 2021 meeting
Notice of Resolution of
33
First Extraordinary
shareholders general
meeting 2021 (No.:
2021036)
Refer to the Juchao
Website
Second (www.cninfo.com.cn):
Extraordinary
Extraordinary Notice of Resolution of
shareholders general 12.09% 2021-12-23 2021-12-24
shareholders general Second Extraordinary
meeting
meeting 2021 shareholders general
meeting 2021 (No.:
2021056)
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √ Not applicable
V. Directors, supervisors and senior executives
1. Basic information
Amount Amount Reasons
Shares Shares
Start of shares of shares for
End date held at Other held at
Working dated of increased decrease increase
Name Title Sex Age of office period-b changes period-e
status office in this d in this or
term egin (share) nd
term period period decrease
(Share) (Share)
(Share) (Share) of shares
Currentl Not
2010-08- 2020-06-
Director y in Male 53 0 0 0 0 0 applicabl
26 28
office e
Currentl Not
Li Hai 2013-09- 2020-06-
President y in Male 53 0 0 0 0 0 applicabl
26 28
office e
Currentl Not
Chairma 2015-04- 2020-06-
y in Male 53 0 0 0 0 0 applicabl
n 15 28
office e
Yao Currentl Not
2010-08- 2020-06-
Zhengwa Director y in Male 47 0 0 0 0 0 applicabl
26 28
ng office e
Currentl Not
Cao 2010-08- 2020-06-
Director y in Male 48 0 0 0 0 0 applicabl
Fang 26 28
office e
34
Currentl Not
Yang 2006-06- 2020-06-
Director y in Male 65 0 0 0 0 0 applicabl
Fenbo 30 28
office e
Currentl Not
2017-06- 2020-06-
Director y in Male 49 0 0 0 0 0 applicabl
29 28
office e
Sun Secretary Currentl Not
2012-05- 2020-06-
Longlon of the y in Male 49 0 0 0 0 0 applicabl
17 28
g Board office e
Currentl Not
2017-05- 2020-06-
CFO y in Male 49 0 0 0 0 0 applicabl
22 28
office e
Currentl Not
Zhong 2017-06- 2020-06-
Director y in Male 58 0 0 0 0 0 applicabl
Hua 29 28
office e
Independ Currentl Not
Yang 2017-06- 2020-06-
ent y in Female 53 0 0 0 0 0 applicabl
Lan 29 28
director office e
Independ Currentl Not
Song 2017-06- 2020-06-
ent y in Male 59 0 0 0 0 0 applicabl
Xishun 29 28
director office e
Independ Currentl Not
Zhang 2017-06- 2020-06-
ent y in Male 57 0 0 0 0 0 applicabl
Zhigao 29 28
director office e
The
convener
Currentl Not
of the 2014-06- 2021-02-
Li Xiang y in Male 48 0 0 0 0 0 applicabl
board of 27 12
office e
supervis
ors
Zheng Currentl Not
Supervis 2011-06- 2021-02-
Zhonghu y in Male 60 5,276 0 0 0 5,276 applicabl
or 27 12
an office e
Staff Currentl Not
2014-05- 2021-02-
Li Jialin Supervis y in Male 61 0 0 0 0 0 applicabl
22 12
or office e
Total -- -- -- -- -- -- 5,276 0 0 0 5,276 --
During the reporting period, whether there was any departure of directors and supervisors and dismissal of Senior executives
□Yes √No
35
Changes of directors, supervisors and senior executives
□ Applicable √ Not applicable
2. Post-holding
Professional background, major working experience and present main responsibilities in Company of directors, supervisors and
senior executive
Mr. Li Hai, born in 1969, graduated from Economic department of Shenzhen University in major of accounting; he took the turns of
deputy manager of finance department, assistant CFO, secretary of the Board and vice president, etc. of the Company, and now he
serves as chairman, legal representative and president of the Company.
Mr. Yao Zhengwang, born in 1975, with bachelor degree of law, successively took the post of Supervisor of Supervision Office,
Deputy Manager of Sales Department, and Deputy Manager of Legal Affairs Department of Shenzhen Guomin Investment
Development Co. Ltd. and deputy general manager of Administration Center of Compliant Risk Control, as well as director, secretary
of the Board and convener of supervisory committee of CBC; now he serves as director of the Company and supervisor of Leshan
City Commercial Bank Co., Ltd.
Mr. Cao Fang, born in 1974, master degree; since May of 2007, he took post of project manager of marketing and management
department in headquarter of Life Insurance, associate of general manager of marketing and management headquarter as well as
general manager of market and business department; he acted as member of planning team of Life Insurance Branch in
Guangdong. And served in strategy and development center, Office of the Chairman, Supervision office; he serves as deputy GM of
Shanghai Branch of Life Insurance in 2012; now he is the person in charge of the sales management center in Funde Insurance
Holding
Mr. Yang Fenbo, born in 1957, senior economist with master degree of MBA and engineer, held the position of minister of
development department, concurrently minister of science and technology department, assistant general manager, assistant to
chairman, deputy chief engineer and chief engineer at Shenzhen Lionda Group; took the GM and chairman of Guangdong Sunrise
Holding Co., Ltd and the Chairman of Shenzhen Lionda Group; now, he is the senior consultant of Shenzhen Liona Group Co., Ltd.
Mr. Sun Longlong, born in 1973, graduated from Shanghai University of Finance and Economics in 1995 with a bachelor degree, a
bachelor of Economics. He successively worked as financial affairs in Shenzhen Qiongjiao Industry Co., Ltd. and Shenzhen Solar
Pipe Co., Ltd.; he worked in the Company since May 1999, and successively served as Deputy Manager of financial department,
Manager, manager of comprehensive management department, manager of enterprise management department, now he serves as
Director, CFO and secretary of the Board of the Company.
Mr. Zhonghua, born in 1964, undergraduate college, has an engineer title. He worked in the Company since December 1991, and
have successively held the posts of director of the quality management dept., director of testing center, deputy GM and GM of the
quality management dept., now he serves as director of the Company, director of OEM Management and Manager of Quality Control
Department, and Chairman and General Manager of Shenzhen EMMELLE Cloud Technology Co., Ltd.
Ms. Yang Lan, born in 1969, is a master’s degree holder, a certified tax accountant, a certified appraiser, a certified public accountant,
and an auditor. She successively served as a member of Guiyang Audit Bureau, the head of Zhuhai BDO China Shu Lun Pan
Certified Public Accountants, the head of Shanghai Lixin Changjiang Certified Public Accountants, Zhuhai Branch, the head of
Guangdong Lixin Changjiang Certified Public Accountants, and the senior manager of Pan-China Certified Public Accountants
36
(LLP), Guangdong Branch; Investment Director of Guangzhou Securities Innovation Investment Company, deputy head of
Guangdong Pujinxinghua Tax Agent Co., Ltd., and the deputy head of Guangdong Lixin Changjiang Certified Public Accountants.
Since June 29, 2017, she serves as an independent director of the Company.
Mr. Song Xishun, born in 1963, holds a master’s degree in Chinese from Xiamen University. He once served as a teacher of PLA
University of Foreign Language, took office at Public Security Bureau of Xiamen City, Xiamen City Bureau of Culture, served as the
deputy dean of Cultural Industry School of Xiamen University of Technology and an arbitrator of Xiamen City Personnel Dispute
Arbitration Committee. He has been teaching at Xiamen University of Technology since 2003, and currently serves as Independent
director of the company, the deputy dean (worked since January 2013, part-time) of Cultural Development Institute of Xiamen
University of Technology, a lawyer (part-time) of Zhong Yin (Xiamen) Law Firm, an independent director (part-time) of Ankee
Food Co., Ltd., and the vice chairman (part-time) of Xiamen Language Association.
Mr. Zhang Zhigao, born in 1965, is a bachelor of laws from Fudan University, the practicing lawyer with Chinese CPA and certified
appraiser qualifications; he has been serving as a partner lawyer of Shanghai Xuan Lun Law Firm since 2007. He used to be a
technician of Shanghai Electrical Machinery Plant, a lecturer of Shanghai Lixin University of Commerce, and a partner lawyer of
Shanghai Alshine Law Firm; served as an independent director of Shanghai Kai Kai Industrial Co., Ltd., an independent director of
Shanghai Norcent Technology Development Co., Ltd., an independent director of Shanghai Xingye Real Estate Co., Ltd and
Zhongcheng Village Bank Co., Ltd. of Kuiwen District, Weifang City; he currently serves as a director of Zhonggeng Fund
Management Co., Ltd, a director of Shanghai Chengxi Assets Management Co., ltd and independent director of China Resources
Microelectronics Limited.
Mr. Li Xiang, born in 1974, holds a master’s degree. He once served as the secretary of the party committee, the director of the
organization department of the party committee, and the manager of the human resources department at Pacific Life Jiangxi Branch.
Since March 2008, he has been serving as the deputy general manager of Shenzhen Guosheng Energy Investment Development Co.,
Ltd.
Mr. Zheng Zhonghuan, born in 1962, holds a bachelor’s degree and an engineer title. He once worked at Shenzhen Light Textile
Industry Company and Shenzhen Light Industry Company. Since October 1985, he has been working at Shenzhen China Bicycle
Company (Holdings) Limited, and once served as the deputy manager and manager of planning department, the manager of material
department, and the manager of manufacturing department; and now he serves as a supervisor of the Company, Director of Lithium
Battery and New Materials Business Department, and Director of holding subsidiary Shenzhen Xinsen Jewelry Gold Supply Chain
Co., Ltd.
Mr. Li Jialin, born in 1961, a master degree with a title of senior engineer. He successively served as senior engineer of the Company
in electrical & mechanical engineering division, GM assistant of Hunan Guangdian Motorcycle Company, manager of the Company
in H&R Dept. now he serves as Staff representative supervisor, commissioner of comprehensive office of the Company and person in
charge of the labor union.
Post-holding in shareholder’s unit
√ Applicable □ Not applicable
Received
Position in
Start dated of End date of remuneration from
Name Name of shareholder’s unit shareholder’s
office term office term shareholder’s unit
unit n
(Y/N)
37
Yao Shenzhen Guosheng Energy Investment
Supervisor 2006-10-09 Y
Zhengwang Development Co., Ltd.
Shenzhen Guosheng Energy Investment
Li Xiang Deputy GM 2008-03-01 Y
Development Co., Ltd.
Post-holding in other unit
√ Applicable □ Not applicable
Received
Position in Start dated of End date of office remuneration
Name Name of other units
other unit office term term from other unit
(Y/N)
Yao Zhengwang Leshan City Commercial Bank Co., Ltd Supervisor 2019-01-10 2022-01-09 Y
Sales management center in Funde Person in
Cao Fang 2016-06-01 Y
Insurance Holding charge
Shenzhen Xinsen Jewelry Gold Supply
Sun Longlong Chairman 2019-08-23 2022-08-22 N
Chain Co., Ltd
Shenzhen EMMELLE Cloud Technology Chairman,
Zhong Hua 2020-07-21 N
Co., Ltd. GM
Senor
Yang Fenbo Shenzhen Liona Group Co., Ltd. 2017-09--12 Y
consultant
Independent
Yang Lan Huadong Medicine Co., Ltd. 2019-06-09 2022-06-05 Y
director
Shenzhen Strongteam Decoration Independent
Yang Lan 2019-11-01 2022-10-30 Y
Engineering Co., Ltd. director
Guangdong Lixin Changjiang Certified
Yang Lan Director 2001-04-01 Y
Public Accountants.
Associated
Song Xishun Xiamen University of Technology 2003-09-01 Y
professor
Part-time
Song Xishun Zhong Yin (Xiamen) Law Firm 2003-09-01 Y
lawyer
Independent
Song Xishun Ankee Food Co., Ltd 2020-12-30 2023-12-29 Y
director
partner
Zhang Zhigao Shanghai Xuan Lun Law Firm 2007-12-01 Y
lawyer
Zhang Zhigao Zhonggeng Fund Management Co., Ltd Director 2009-07-21 N
Shanghai Chengxi Assets Management Co.,
Zhang Zhigao Director 2010-05-10 N
ltd
Zhang Zhigao China Resources Microelectronics Limited. Independent 2019-04-24 2022-04-23 Y
38
director
Zhongcheng Village Bank Co., Ltd. of
Zhang Zhigao Director 2013-12-31 Y
Kuiwen District, Weifang City
Zheng Shenzhen Xinsen Jewelry Gold Supply
Director 2019-08-23 2022-08-22 N
Zhonghuan Chain Co., Ltd
Punishment of securities regulatory authority in recent three years to the company’s current and outgoing directors, supervisors and
senior management during the reporting period
□ Applicable √ Not applicable
3. Remuneration for directors, supervisors and senior executives
Decision-making procedures, recognition basis and payment for directors, supervisors and senior executives
Decision procedure of
remuneration of directors, According to relevant rules of the Article of Association, the general meeting of shareholders decides
supervisors, senior remuneration of directors and supervisors. The Board of Directors decides senior management’s.
management
Confirmation basis of The Company refers to the position rank and comprehensive industry level. And then general meeting of
remuneration of directors, shareholders approves compensation standard and allowance of independent directors. According to the
supervisors and senior "Interim Measures to Annual Performance Assessment of Executives" and performance evaluation
management standards the Company issues annual performance salary.
Actual payment of The Company strictly paid remuneration of directors, supervisors and senior management accordingly
remuneration of directors, with decision procedure and confirmation basis. Total payment for remuneration of directors,
supervisors and senior supervisors and supervisors amounted to 1.4578 million yuan from January to December in 2021.
management
Remuneration for directors, supervisors and senior executives in reporting period
Unit: 10 thousand Yuan
Total Whether
remuneration remuneration
Post-holding
Name Title Sex Age obtained from the obtained from
status
Company (before related party of
taxes) the Company
Currently in
Li Hai Director Male 53 61.4 N
office
Currently in
Sun Longlong Director Male 49 24.95 N
office
Currently in
Zhong Hua Director Male 58 18.55 N
office
Zheng Currently in
Supervisor Male 60 13.85 N
Zhonghuan office
39
Currently in
Li Jialin Staff Supervisor Male 61 12.75 N
office
Independent Currently in
Yang Lan Female 53 4.76 N
director office
Independent Currently in
Song Xishun Male 59 4.76 N
director office
Independent Currently in
Zhang Zhigao Male 57 4.76 N
director office
Total -- -- -- -- 145.78 --
VI. Responsibility performance of directors during the reporting period
1. The board of directors during the reporting period
Session of meeting Date of meeting Disclosure date Meeting resolutions
Refer to the Juchao Website
(www.cninfo.com.cn): Notice of
The 28th Session of 10th BOD 2021-04-23 2021-04-27 th
Resolution of the 28 Session of 10th
BOD (No.: 2021012)
Deliberated only one proposal as the
The 29th Session (interim) of
2021-04-29 2021-04-30 Q1 Report of 2021, which was
10th BOD
disclosed on April 30, 2021
Refer to the Juchao Website
th
The 30 Session (interim) of (www.cninfo.com.cn): Notice of
th
2021-06-04 2021-06-05 th
10 BOD Resolution of 30 Session (interim) of
10th BOD (No.: 2021020)
Refer to the Juchao Website
(www.cninfo.com.cn): Notice of
The 31st Session of 10th BOD 2021-08-25 2021-08-27 st th
Resolution of 31 Session of 10 BOD
(No.: 2021029)
Refer to the Juchao Website
nd
The 32 Session (interim) of (www.cninfo.com.cn): Notice of
th
2021-09-24 2021-09-25 nd
10 BOD Resolution of 32 Session (interim) of
10th BOD (No.: 2021033)
Deliberated only one proposal as the
The 33rd Session (interim) of
2021-10-26 2021-10-27 Q3 Report of 2021, which was
10th BOD
disclosed on October 27, 2021
Refer to the Juchao Website
th
The 34 Session (interim) of (www.cninfo.com.cn): Notice of
th
2021-11-11 2021-11-12 th
10 BOD Resolution of 34 Session (interim) of
10th BOD (No.: 2021042)
40
Refer to the Juchao Website
th
The 35 Session (interim) of (www.cninfo.com.cn): Notice of
th
2021-11-16 2021-11-17 th
10 BOD Resolution of 35 Session (interim) of
10th BOD (No.: 2021048)
Refer to the Juchao Website
th
The 36 Session (interim) of (www.cninfo.com.cn): Notice of
th
2021-12-07 2021-12-08 th
10 BOD Resolution of 36 Session (interim) of
10th BOD (No.: 2021053)
2. The attending of directors to Board meetings and shareholders general meeting
The attending of directors to Board Meeting and Shareholders General Meeting
Times of
Times of Absent the
attending the Times of
Board meeting Times of Meeting for
Times of Board Meeting Times of attend the
Director supposed to entrusted the second
Presence by Absence general
attend in the presence time in a row
communicatio meeting
report period (Y/N)
n
Li Hai 9 9 0 0 0N 3
Yao Zhengwang 9 1 8 0 0N 2
Cao Fang 9 1 8 0 0N 1
Yang Fenbo 9 4 5 0 0N 2
Sun Longlong 9 9 0 0 0N 2
Zhong Hua 9 9 0 0 0N 3
Yang Lan 9 1 8 0 0N 1
Song Xishun 9 0 9 0 0N 1
Zhang Zhigao 9 0 9 0 0N 1
Explanation of absent the Board Meeting for the second time in a row
Nil
3. Objection for relevant events from directors
Directors come up with objection about Company’s relevant matters
□ Yes √ No
No directors come up with objection about Company’s relevant matters in the Period
4. Other explanation about responsibility performance of directors
The opinions from directors have been adopted
√ Yes □ No
41
Director's statement to the Company that a proposal has been or has not been adopted
During the reporting period, the directors carefully deliberated all proposals submitted to the BOD and voted in favor of the
proposals that required voting, without any opposition or abstention, and raised no objection to the proposals of the Board for the
year.
VII. Performance of Duties by Specialized Committees under the Board Meeting in the
Reporting Period
Important Specific
Other
Committee Number of Meeting comments and circumstances
Members Date of performance of
name meetings held content suggestions of the objection
meeting duties
made (if applicable)
Deliberation of
Draws
the Annual
management’s
Report 2020
2021-04-23 attention on N/A N/A
and related
relevant
internal control
proposals
reports
Renewal of the
Yang Lan, 2021-08-23 accounting N/A N/A N/A
Audit
Zhang Zhigao, 3 firms
committee
Cao Fang
Pre-communica
tion between
the audit
Implement
committee and
2021-12-24 relevant audit N/A N/A
annual auditor
works
regarding the
audit of annual
report 2021
VIII. Works from Supervisory Committee
The Company has risks in reporting period that found in supervisory activity from supervisory committee
□ Yes √ No
Supervisory committee has no objection about supervision events in reporting period
IX. Particulars of workforce
1. Number of Employees, Professional composition, Education background
Employee in-post of the parent Company at period-end (people) 35
Employee in-post of main Subsidiaries at period-end (people) 26
42
The total number of current employees at period-end (people) 61
The total number of current employees to receive pay (people) 61
Retired employee’ s expenses borne by the parent Company and
0
main Subsidiaries (people)
Professional composition
Category of professional composition Numbers of professional composition (people)
Production personnel 11
Salesperson 12
Technicians 19
Financial personnel 7
Administrative personnel 12
Total 61
Education background
Education Numbers (people)
Postgraduate 1
Undergraduate 21
Junior college 21
Below junior college 18
Total 61
2. Remuneration Policy
Formulated the remuneration policy according to the position title and comprehensive industry salary standards
3. Training programs
In order to improve the quality of staff, the company has planned and targeted training activities every year. The training activities
for administrative personnel and technical staff mainly to improve their professional skills, management quality and ability
4. Labor outsourcing
□ Applicable √ Not applicable
X. Profit distribution plan and capitalizing of common reserves plan
Formulation, Implementation and Adjustment of common stock Profit Distribution Policy Especially Cash Dividend policy during
the Reporting Period
□ Applicable √ Not applicable
The company is profitable during the reporting period and the parent company has positive profit available for distribution to
43
shareholders but no cash dividend distribution plan has been proposed
□ Applicable √ Not applicable
Profit distribution plan and capitalizing of reserves for the Period
□ Applicable √ Not applicable
The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve either for
the year.
XI. Implementation of the Company’s stock incentive plan, employee stock ownership plan or
other employee incentives
□ Applicable √Not applicable
During the reporting period, the Company has no stock incentive plan, employee stock ownership plan or other employee incentives
that have not been implemented.
XII. Construction and implementation of internal control system during the reporting period
1. Construction and implementation of internal control
In accordance with the provision of Basic Standards for Enterprise Internal Control and its supporting guidelines, the Company
renewal and improve the internal control system of the Company during the reporting period. Established a set of internal control
system with scientific design, simple application and effective operation. Regularly, the Company carried out special work of system
combing and optimization every year, and the work is effectively integrated with the internal control assessment of the Company.
Through the system evaluation, achieved the improvement of the system, standardization of the effectiveness of the establishment
and optimization of the process, and full landing in executability.
2. Details of major defects in internal control identified during the reporting period
□Yes √No
XIII. Management and controls on the subsidiary during reporting period
Problems
Integration Measures taken to Progress in Follow-up
Name Integration plans encountered in
progress resolve solution solution plan
integration
Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable
XIV. Internal control self-appraisal report or internal control audit report
1. Self-appraisal Report of Internal Control
Disclosure date of full internal control
2022-04-26
evaluation report
44
Disclosure index of full internal control
Self-Appraisal Report of Internal Control 2021 of CBC released on Juchao website
evaluation report
The ratio of the total assets of units
included in the scope of evaluation
accounting for the total assets on the 100.00%
company's consolidated financial
statements
The ratio of the operating income of units
included in the scope of evaluation
accounting for the operating income on the 100.00%
company's consolidated financial
statements
Defects Evaluation Standards
Category Financial Reports Non-financial Reports
Material defect: (1) inefficiency of
Material defect: (1) inefficiency of environment control; (2) inefficiency of
environment control; (2) inefficiency of internal supervision; (3) direct impact on
internal supervision; (3) direct impact on major mistakes of investment decisions;
major mistakes of investment decisions; (4) (4) directly make the significant error in
directly make the significant error in the the financial statements; (5) violation of
financial statements; (5) violation of the the laws, regulations, rules and other
laws, regulations, rules and other normative normative documents, resulting in
documents, resulting in investigation of the investigation of the central government
central government and regulatory agencies, and regulatory agencies, and being
and being sentenced to a fine or penalty, sentenced to a fine or penalty, being
being restricted industry exit, canceling restricted industry exit, canceling
business license and being forced the closure business license and being forced the
of etc. Major defect: (1) indirect impact on closure of etc. Major defect: (1) indirect
Qualitative criteria
major mistakes of investment decisions; (2) impact on major mistakes of investment
indirectly make the significant error in the decisions; (2) indirectly make the
financial statements; (3) Lack of important significant error in the financial
system; (4) violation of the laws, regulations, statements; (3) Lack of important
rules and other normative documents, system; (4) violation of the laws,
resulting in investigation of the local regulations, rules and other normative
government and regulatory agencies, and documents, resulting in investigation of
being sentenced to a fine or penalty, and the local government and regulatory
being ordered to suspend business for agencies, and being sentenced to a fine
rectification and cause the Company’s or penalty, and being ordered to suspend
business stop of etc. General defect: other business for rectification and cause the
control defect besides material defect and Company’s business stop of etc.
major defect. General defect: other control defect
besides material defect and major defect.
45
1. Potential loss or potential error of total
1. Potential loss or potential error of total profit: (1) General defect: less than or
profit: (1) General defect: less than or equal equal to pre-tax total profit of 3%, (2)
to pre-tax total profit of 3%, (2) Major Major defect: more than pre-tax total
defect: more than pre-tax total profit of profit of 3%( and absolute amount more
3%( and absolute amount more than RMB than RMB 0.5 million), (3) Material
0.5 million), (3) Material defect:: more than defect:: more than 5% of pre-tax total
5% of pre-tax total profit and absolute profit and absolute amount more than
amount more than RMB 1 million; 2. RMB 1 million; 2. Potential loss or
Potential loss or potential error of operating potential error of operating income: (1)
income: (1) General defect: less than or General defect: less than or equal to
Quantitative standard equal to operating income of 1%, (2) Major operating income of 1%, (2) Major
defect: more than 1% of operating income defect: more than 1% of operating
and less than or equal to 3% of operation income and less than or equal to 3% of
income, (3) Material defect:: more than 3% operation income, (3) Material defect::
of operating income; 3. Potential loss or more than 3% of operating income; 3.
potential error of total assets: (1) General Potential loss or potential error of total
defect: less than or equal to 1% of total assets: (1) General defect: less than or
assets, (2) Major defect: more than 1% of equal to 1% of total assets, (2) Major
total profit and less than or equal to 3% of defect: more than 1% of total profit and
total profit, (3) Material defect:: more than less than or equal to 3% of total profit,
3% of total profit (3) Material defect:: more than 3% of
total profit
Amount of significant defects in financial
0
reports
Amount of significant defects in
0
non-financial reports
Amount of important defects in financial
0
reports
Amount of important defects in
0
non-financial reports
2. Auditing report of internal control
√ Applicable □ Not applicable
Deliberations in Audit Report of Internal Control
We considers that China Bicycle Company (Holdings) Limited, in line with Basic Norms of Internal Control and relevant
regulations, shows an effectiveness internal control of financial report in all major aspects dated 31 December 2021.
Disclosure details of audit report of
Disclosed
internal control
Disclosure date of audit report of
2022-04-26
internal control (full-text)
46
Index of audit report of internal Juchao Website- Audit Report of Internal Control of Shenzhen China Bicycle Company
control (full-text) (Holdings) Limited (TZY Zi[2022] No.26082-1
Opinion type of auditing report of
Standard unqualified
IC
Whether the non-financial report
No
had major defects
Carried out modified opinion for internal control audit report from CPA
□Yes √ No
The internal control audit report, issued by CPA, has concerted opinion with self-evaluation report, issued from the Board
√ Yes □ No
XV. Rectification of Self-examination Problems in Special Governance Actions in Listed
Company
The company actively studied and implemented the Opinions on Further Improving the Quality of Listed Companies (Guo Fa (2020)
No. 14) (hereinafter referred to as “the Opinions”) issued by the State Council. In accordance with the requirements of CSRC’s
Announcement of Special Action on The Governance of Listed Companies, and in strict accordance with the spirit of the Opinions,
the Company Law, Securities Law and other relevant laws and regulations as well as the requirements of normative documents for
listed companies, the company carefully conducted self-examinations against the self-examination list and formed the
self-examination checklist report, through this self-examination, the company has a situation where the board of directors has not
been re-elected after the expiration of the term of office. In view that (1) The company was currently planning the non-public
issuance of A shares, if the non-public issuance of A shares could be successfully completed, the control of the company would be
changed. On December 15, 2020, Shenzhen China Bicycle Company issued the Announcement on the Company’s Signing of the
Cooperation Agreement, Shenzhen Guosheng Energy Investment Development Co., Ltd. (hereinafter referred to as “Guosheng
Energy”), the company’s largest shareholder, and Wansheng Industry Holdings (Shenzhen) Co., Ltd. (hereinafter referred to as
“Wansheng Industry”), the subscriber of the non-public issuance of shares, signed relevant cooperation agreements on matters such
as the seating arrangement of directors and performance commitments. The agreement stipulated that after the completion of this
non-public issuance of shares, Guosheng Energy would support Wansheng Industry to adjust the members of the board of directors
and the board of supervisors of the listed company within the scope of rights prescribed by relevant laws and regulations, so that
Wansheng Industry could elect more than half members of the company’s board of directors and board of supervisors by actually
controlling the voting rights of shares in the listed company. (2) On October 25, 2021, the company’s application for the private
placement of A shares was reviewed and approved by the Issuance Examination Commission of the China Securities Regulatory
Commission (hereinafter referred to as the CSRC). On November 11, 2021, the company received the Approval for the Non-public
Issuance of Shares by Shenzhen China Bicycle (Group) Co., Ltd.” (ZJXK [2021] No. 3552) issued by the CSRC, approving the
company to issue not more than 137,836,986 new non-public issuance of shares, and the validity period of the approval is 12 months
from the date of approval for the non-public offering of shares. At present, all parties involved in the fixed increase are actively
working to promote the implementation of this work. In order to facilitate the smooth completion of the fixed increase work as soon
as possible, the company intends to postpone the re-election of the board of directors and the board of supervisors immediately after
the completion of the non-public issuance of shares, which shall be completed by November 8, 2022 at the latest. During this period,
all members of the company’s board of directors, board of supervisors and senior executives shall continued to perform the
obligations and duties of directors and senior executives in accordance with laws, regulations and the Articles of Association.
47
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
Section V. Environmental and Social Responsibility
I. Major environmental
The listed Company and its subsidiary whether belongs to the key sewage units released from environmental protection department
□Yes √ No
Administrative punishment for environmental problems during the reporting period
Impact on the
The company’s
Company name or Reason for production and
Violation Punishment result rectification
subsidiary name punishment operation of listed
measures
company
Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable
Other environmental information disclosed refer to key polluters
Not applicable
Measures taken to reducing the carbon emissions during the reporting period and their effectiveness
□ Applicable √ Not applicable
Reasons for not disclosing other environmental information
Not applicable
II. Social responsibility
During the reporting period, the company conscientiously fulfilled its corporate social responsibility, paid attention to protecting the
interests of shareholders, especially minority shareholders; Treated suppliers, customers and consumers with integrity; Earnestly
fulfilled the responsibilities and obligations to the society, shareholders, employees and other stakeholders, created a harmonious
environment for enterprise development, and realized the common development of the enterprise and stakeholders.
1. Protection of shareholders' rights and interests
The company strictly complies with the provisions of relevant laws and regulations such as the Company Law, the Securities Law
and the Governance Code for Listed Companies, continuously improves the corporate governance structure, adheres to handing over
the important matters to the resolutions of the shareholders' meeting, provides convenience for medium and small investors to
participate in the shareholders' meeting, fully listens to the small and medium-sized investors’ reasonable advice on the company's
development and governance, and safeguards the legitimate rights and interests of shareholders.
In 2021, the board of directors of the company convened 3 shareholders' meetings, the meeting adopted the combination of on-site
voting and online voting, the votes of small and medium investors were counted separately, provided convenience for the majority of
investors to participate in the voting at the shareholders' meeting, and ensured the participation right and supervision right of the
small and medium-sized investors.
In 2021, the company strengthened communication with investors, especially investors from the public, answered questions about
which the public and investors concerned, and ensured the investors' right to know in line with the Information Disclosure Affairs
48
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
Management System and Reception and Promotion Work System and by means of various forms such as the interactive platform of
Shenzhen Stock Exchange, hotline of the company’s securities affairs department, and so on.
On May 19, 2021, the company held the 2020 annual performance briefing, in which the company made online communication with
investors on the company's performance, operating conditions, development prospects and other issues of interest to investors. A
total of 19 questions were raised by investors during the briefing, which were answered by directors and senior management
personnel.
The company is committed to protecting the rights and interests of investors by improving the corporate governance structure,
improving the level of information disclosure and investor relationship management, and carrying out investor education, and
guiding investors to form value investment concept through real and effective communication. In order to effectively ensure
smooth service channels for investors, the company has arranged full-time personnel to answer investors' hotline calls and answer
questions on the interactive platform, and relevant staff has patiently analyzed the announcement information for investors to help
investors understand the company's situation in time.
2. Protection of workers' rights and interests
The company adheres to the people-oriented, comprehensively implements the Labor Law and Labor Contract Law, attaches great
importance to guarantee of the employees' rights and interests, at the same time, establishes good communication channels
throughout the whole process of staff management and care, pays attention to staff growth, improves the staff overall quality,
cultivates excellent internal training culture system, creates a good learning environment. Meanwhile, the company pays attention to
enriching the spiritual life of employees, regularly carries out staff activities, and improves team cohesion. In accordance with the
Labor Contract Law of the People's Republic of China and other relevant national and local labor laws and regulations, the company
signs labor contracts with employees to protect their rights and interests. The company and its subsidiaries strictly implement the
national employment system, labor protection system, social security system and medical security system, and pay the housing
provident fund, medical insurance, endowment insurance, unemployment insurance, work-related injury insurance and maternity
insurance for employees according to the state regulations. The company adheres to corporate culture of efficient coordination,
people-oriented, on-demand training, training by level, and echelon training. The company establishes internal knowledge sharing
system, promotes information and knowledge exchange among various modules of the company, and improves team coordination
ability. It encourages employees to participate in continuing education and enhances the knowledge structure optimization and
professional quality promotion of workers at various positions.
3. Protection of rights and interests of suppliers, customers and consumers
The company actively organizes and carries out customer management, takes measures to ensure the rights and interests of customers
and actively promotes customer satisfaction and service excellence. It makes full use of the rich social resources in the market, and
establishes a good partnership with suppliers. The company promises not to abuse or misuse consumer information for the protection
of rights and interests of consumers.
III. Consolidating and expanding the achievements of poverty alleviation and rural
revitalization
Not applicable
49
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
Section VI. Important Events
I. Implementation of commitment
1. Commitments completed in Period and those without completed till end of the Period from actual
controller, shareholders, related parties, purchaser and companies
□ Applicable √ Not applicable
The Company has no commitments completed in Period and those without completed till end of the Period from actual controller,
shareholders, related parties, purchaser and companies
2. Concerning assets or project of the Company, which has profit forecast, and reporting period still in
forecasting period, explain reasons of reaching the original profit forecast
□ Applicable √ Not applicable
II. Non-operational fund occupation from controlling shareholders and its related party
□ Applicable √ Not applicable
No non-operational fund occupation from controlling shareholders and its related party in period.
III. External guarantee out of the regulations
□ Applicable √ Not applicable
No external guarantee out of the regulations occurred in the period.
IV. Statement on the latest “modified audit report” by BOD
√ Applicable □ Not applicable
On 11 May 2012, the largest shareholder and biggest creditor of the Company, Shenzhen Guosheng Energy Investment and
Development Co., Ltd. applied to Shenzhen Municipal Intermediate People's Court for reforming the Company as the Company
couldn’t pay off the matured debts and was seriously insolvent. On 12th, Oct., 2012, Shenzhen Municipal Intermediate People's Court
ruled to accept the application proposed by Guosheng Energy according to (2012) Shenzhen Intermediate Court Po Zi No. 30 civil
ruling. In late October, 2012, Shenzhen Municipal Intermediate People's Court ruled to reform the Company since 25th, Oct., 2012
according to (2012) Shenzhen Intermediate Court Po Zi No. 30-1 civil ruling, appointed King & Wood (Shenzhen) Mallesons and
Shenzhen ZhengYuan Liquidation Affairs Co., Ltd. as the custodians of the Company. At the same time, Shenzhen Municipal
Intermediate People's Court made (2012) Shenzhen Intermediate Court Po Zi No. 30-1 written decision, and approved the Company
to manage property and business affairs by itself under the supervision of custodians according to the law. On 5 November 2013, the
Shenzhen Intermediate People’s Court (2012) Shen Zhong Fa Po Zi No. 30-6 Civil Ruling Paper judged that approved the
reorganization plan of the Company. On 27 December 2013, the Civil Ruling Paper Shenzhen Intermediate People’s Court (2012)
Shen Zhong Fa Po Zi No. 30-10 ruled that the reorganization plan of CBC was completed and bankruptcy procedures of CBC closed
down.
50
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
The Company has solved the debt problem by reforming, realized the net assets with positive value, the main business of bicycle is
able to be maintained and realizes the stable development. The Company has set up the conditions for introducing the recombination
party in the reforming plan, and expects to restore the abilities of sustainable operation and sustained profitability by reorganization.
The conditions of introducing the recombination party includes: the assessed value of net assets should be no less than 2 billion Yuan,
the net assets in the same year for implementing the major reorganization should be no less than 200 million Yuan. The Company
doesn’t have the recombination party at the moment. The Company will continue to carry out vary related works actively and
promote the reorganization work with all efforts.
V. Explanation from Board of Directors, Supervisory Committee and Independent Directors
(if applicable) for “Qualified Opinion” that issued by CPA
√ Applicable □ Not applicable
On 11 May 2012, the largest shareholder and biggest creditor of the Company, Shenzhen Guosheng Energy Investment and
Development Co., Ltd. applied to Shenzhen Municipal Intermediate People's Court for reforming the Company as the Company
couldn’t pay off the matured debts and was seriously insolvent. On 12th, Oct., 2012, Shenzhen Municipal Intermediate People's Court
ruled to accept the application proposed by Guosheng Energy according to (2012) Shenzhen Intermediate Court Po Zi No. 30 civil
ruling. In late October, 2012, Shenzhen Municipal Intermediate People's Court ruled to reform the Company since 25 th, Oct., 2012
according to (2012) Shenzhen Intermediate Court Po Zi No. 30-1 civil ruling, appointed King & Wood (Shenzhen) Mallesons and
Shenzhen ZhengYuan Liquidation Affairs Co., Ltd. as the custodians of the Company. At the same time, Shenzhen Municipal
Intermediate People's Court made (2012) Shenzhen Intermediate Court Po Zi No. 30-1 written decision, and approved the Company
to manage property and business affairs by itself under the supervision of custodians according to the law. On 5 November 2013, the
Shenzhen Intermediate People’s Court (2012) Shen Zhong Fa Po Zi No. 30-6 Civil Ruling Paper judged that approved the
reorganization plan of the Company. On 27 December 2013, the Civil Ruling Paper Shenzhen Intermediate People’s Court (2012)
Shen Zhong Fa Po Zi No. 30-10 ruled that the reorganization plan of CBC was completed and bankruptcy procedures of CBC closed
down.
The Company has solved the debt problem by reforming, realized the net assets with positive value, the main business of bicycle is
able to be maintained and realizes the stable development. The Company has set up the conditions for introducing the recombination
party in the reforming plan, and expects to restore the abilities of sustainable operation and sustained profitability by reorganization.
The conditions of introducing the recombination party includes: the assessed value of net assets should be no less than 2 billion Yuan,
the net assets in the same year for implementing the major reorganization should be no less than 200 million Yuan. The Company
doesn’t have the recombination party at the moment. The Company will continue to carry out vary related works actively and
promote the reorganization work with all efforts.
VI. Explanation of the changes in accounting polices, accounting estimates or correction of
significant accounting errors compared with the financial report of the previous year
√ Applicable □ Not applicable
1. Change of accounting policy
(1) On December 7, 2018, the Ministry of Finance revised and issued the Accounting Standards for Business Enterprise No. 21-
Lease (CK[2018] No.35). According the Standard, it requires that the amount of right-of-use assets, lease liability, the earnings at
beginning of the year and other related items in the financial statement be adjusted based on the cumulative effect number, with no
adjustment to the information in comparable period. There is no impact on the financial statement as a result of the standard
51
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
implementation by CBC. The impact on the financial statement for year of 2021 as a result of the implementation of the Standard
since January 1, 2021 is as follow:
Content and reasons for accounting policy changes Item and amount impacted
Consolidated balance sheet on December 31, 2021, the amount of
right-of-use assets was 1,505,258.90 yuan, the amount of lease
liabilities on December 31, 2021 was 228,302.37 yuan, and the
amount of non-current liabilities due within one year on December 31,
The leased assets are listed as "right-of-use assets", "lease 2021 was 1,456,782.04 yuan.
liabilities", and "non-current liabilities due within one year" The parent company's balance sheet the amount of right-of-use assets on
December 31, 2021 was 421,613.45 yuan, the amount of lease
liabilities on December 31, 2021 was 121,974.19 yuan, and the
non-current liabilities due within one year on December 31, 2021 was
323,646.60 yuan.
2. Changes in accounting estimates
There were no major changes in accounting estimates during the company's reporting period.
3. Correction of previous accounting errors
During the reporting period of the company, no major prior accounting errors were corrected.
4. Financial statement adjustment at the beginning of the first year when implementation of new leasing
standards
Consolidated Balance Sheet
Unit: RMB/CNY
Item 2020-12-31 2021-1-1 Adjustment
Right-of-use asset - 3,051,512.28 3,051,512.28
Non-current liabilities due within one year - - -
Lease liability - 3,051,512.28 3,051,512.28
Explanation on items adjusted:
CBC implemented the new lease standard from January 1, 2021, and recognnizing the lease as right-of-use assets and lease liability.
Except for the short-term lease and lease of low-value assets for which simplified treatment is applied, the initial measurement at cost
is recorded as “Right-of-use assets”, at the same time, the initial measurement of the present value of the lease payments outstanding at
the commencement date of the lease is recorded as a “lease liability”, and reclassified the “lease liability” due within one year to
“non-current liability due within one year”.
Parent Company Balance Sheet
Unit: RMB/CNY
Item 2020-12-31 2021-1-1 Adjustment
Right-of-use asset - 737,823.53 737,823.53
52
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
Non-current liabilities due within one year - - -
Lease liability - 737,823.53 737,823.53
Explanation on items adjusted:
CBC implemented the new lease standard from January 1, 2021, and recognnizing the lease as right-of-use assets and lease liability.
Except for the short-term lease and lease of low-value assets for which simplified treatment is applied, the initial measurement at cost
is recorded as “Right-of-use assets”, at the same time, the initial measurement of the present value of the lease payments outstanding at
the commencement date of the lease is recorded as a “lease liability”, and reclassified the “lease liability” due within one year to
“non-current liability due within one year”.
VII. Compare with last year’s financial report; explain changes in consolidation statement’s
scope
□ Applicable √ Not applicable
There was no change in the scope of consolidated statements during the reporting period of the company.
VIII. Appointment and non-reappointment (dismissal) of CPA
Accounting firm appointed
Name of domestic accounting firm Baker Tilly China Certified Public Accountants (LLP)
Remuneration for domestic accounting firm (in 10 thousand
45
Yuan)
Continuous life of auditing service for domestic accounting firm 6
Name of domestic CPA Qu Xianfu, Deng Jun
Continuous life of auditing service for domestic accounting firm 1
Re-appointed accounting firms in this period
□ Yes √No
Appointment of internal control auditing accounting firm, financial consultant or sponsor
√ Applicable □ Not applicable
During the reporting period, the company engaged Baker Tilly China Certified Public Accountants (LLP) as the auditing organ for
internal control of the Company, and it is expected to pay 150,000 yuan for internal control auditing.
IX. Particular about delisting after annual report disclosed
□ Applicable √ Not applicable
X. Bankruptcy reorganization
□ Applicable √Not applicable
No bankruptcy reorganization for the Company in reporting period
53
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
XI. Significant lawsuits and arbitration of the Company
√ Applicable □ Not applicable
Amount
Resulted an
Lawsuits involved (in Trial result and Execution of Disclosure Disclosure
accrual liability Progress
(arbitration) 10 thousand influence judgment date index
(Y/N)
Yuan)
Other lawsuits and
arbitration (with the
company and its The Company
All cases
subsidiary as the pays the plaintiff
have been
defendants) that did corresponding Not Not
22.37 N decided or Executed
not meet the criteria amount according applicable applicable
mediated
for disclosure of to the award or
settlement
material lawsuits mediation
during the reporting
period
Other lawsuits and
arbitration (with the
company and its
All cases The defendant
subsidiary as the
have been pays the Company
plaintiff) that did not Partially Not Not
143.13 N decided or corresponding
meet the criteria for executed applicable applicable
mediated amount according
disclosure of
settlement to the award
material lawsuits
during the reporting
period
XII. Penalty and rectification
□ Applicable √Not applicable
No penalty and rectification for the Company in reporting period.
XIII. Integrity of the Company and its controlling shareholders and actual controllers
□ Applicable √ Not applicable
XIV. Major related transaction
1. Related transaction with routine operation concerned
□ Applicable √ Not applicable
The Company had no related transaction with routine operation concerned occurred in the period
54
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
2. Related transactions by assets acquisition and sold
□ Applicable √ Not applicable
No related transactions by assets acquisition and sold for the Company in reporting period.
3. Main related transactions of mutual investment outside
□ Applicable √ Not applicable
No main related transactions of mutual investment outside for the Company in reporting period.
4. Contact of related credit and debt
√ Applicable □ Not applicable
Whether exist non-operating contact of related credit and debt or not
√Yes □No
Claim receivable from related party
Whether
Balance at Current
has Current Current Balance at
period-begi newly
Related Relationshi Causes of non-busines recovery(10 interest(10 period-end(1
n(10 added(10 Interest rate
party p formation s capital thousand thousand 0 thousand
thousand thousand
occupying Yuan) Yuan) Yuan)
Yuan) Yuan)
or not
Debts payable to related party
Current
Balance at Current Current Balance at
newly
Causes of period-begin( recovery interest(10 period-end(10
Related party Relationship added(10 Interest rate
formation 10 thousand (10 thousand thousand thousand
thousand
Yuan) Yuan) Yuan) Yuan)
Yuan)
Shenzhen
Guosheng
Subsidiary
Energy Large
Emmelle 650 0 0 0.00% 0 650
Investment shareholder
loan
Development
Co., Ltd.
Influence on operation result
and financial statue of the No influence
Company from related debts
5. Contact with the related finance companies
□ Applicable √Not applicable
There are no deposits, loans, credits or other financial business between the finance companies with associated relationship and
55
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
related parties
6. Transactions between the finance company controlled by the Company and related parties
□ Applicable √ Not applicable
There are no deposits, loans, credits or other financial business between the finance companies controlled by the Company and
related parties
7. Other related transactions
□ Applicable √ Not applicable
The company had no other significant related transactions in reporting period.
XV. Significant contract and implementations
1. Trusteeship, contract and leasing
(1) Trusteeship
□ Applicable √ Not applicable
No trusteeship for the Company in reporting period.
(2) Contract
□ Applicable √ Not applicable
No contract for the Company in reporting period.
(3) Leasing
□ Applicable √ Not applicable
No leasing for the Company in reporting period.
2. Major guarantees
□ Applicable √ Not applicable
No guarantee for the Company in reporting period.
3. Entrust others to cash asset management
(1) Trust financing
□ Applicable √ Not applicable
No trust financing for the Company in reporting period.
56
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
(2) Entrusted loans
□ Applicable √ Not applicable
The company had no entrusted loans in the reporting period.
4. Other material contracts
□ Applicable √ Not applicable
No other material contracts in the period.
XVI. Explanation on other significant events
√ Applicable □ Not applicable
1. Planning for non-public offering of shares
On December 30, 2020, the company held the third extraordinary general meeting of shareholders in 2020, reviewed and approved
the new plan for non-public issuance of A shares, and planned to raise funds from Wansheng Industry Company through non-public
issuance of shares of total amount not exceeding 293.6 million yuan, which would be used to replenish working capital after
deducting the issuance expenses, and this issuance will lead to changes in the company’s control. On October 25, 2021, the
company’s application for the non-public issuance of A shares was reviewed and approved by the Issuance Examination Commission
of the China Securities Regulatory Commission (hereinafter referred to as the CSRC). On November 11, 2021, the company received
the Approval for the Non-public Issuance of Shares by Shenzhen China Bicycle (Group) Co., Ltd. (ZJXK [2021] No. 3552) issued by
the CSRC, and the validity period of the approval is 12 months from the date of approval for the issuance. Relevant work is currently
in progress.
2. Matters concerning the termination of the Cooperation Contract of Zhonghua Garden Phase II Urban Renewal and Reconstruction
Project
In order to promote the reconstruction of the Zhonghua Garden Phase II and solve the problem of certificate handling, in 2020, the
company signed the Cooperation Contract of Zhonghua Garden Phase II Renovation Project with Shenzhen Jianzhi Industry
Company, the contract was examined and approved by the board of directors and the general meeting of shareholders of the company
and came into force publicly, and then our company and Shenzhen Jianzhi Industry Company established a working team to jointly
promote the performance of the contract and the development of related affairs. In view of the fact that during the project
development process, the Shenzhen Municipal People’s Congress issued and implemented the Regulations on Urban Renewal of
Shenzhen Special Economic Zone on March 1, 2021, as a result, the residents’ willingness to renew which the project should obtain
before applying for the plan to demolish and rebuild urban renewal units increased from 90% to 95%, and the company’s basis for
fulfilling the Cooperation Contract had major changes. Based on the company’s long-term development, and in order to better solve
the problem of handling the property right certificates left by the residents of Zhonghua Garden Phase II, in October 2021, the board
meeting and the general meeting of shareholders considered and approved that the company would terminate the performance of the
Cooperation Contract and no longer be a partner of the project.
3. About the company litigation matters
On February 23, 2022, the company received the Subpoena (2022) Yue 0303 Min Chu No. 3787, Complaint, Notice of Response,
Civil Ruling Paper (2020) Yue 0303 Zhi Bao No. 498 and other legal documents from Shenzhen Luohu District People’s Court,
which has accepted the lawsuit brought by the plaintiff Shenzhen Jianzhi Industrial Development Co., Ltd. against the company on
the grounds of “joint venture and cooperative development of real estate contract disputes”, the amount involved was 30.859 million
yuan. On March 12, 2022, the company received a notice from the Shenzhen Luohu District People’s Court that the court trial
57
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
originally scheduled for March 18, 2022 has been rescheduled due to the pandemic, and the specific trial time will be notified later.
As of the date of this announcement, the company has not received the notice from the Luohu Court, and the matter has not yet been
heard. The company will actively respond to the lawsuit, safeguard the interests of the company and all shareholders through legal
means, and will perform the corresponding information disclosure obligations in a timely manner according to the progress of the
lawsuit. Investors are advised to pay attention to investment risks.
XVII. Significant event of subsidiary of the Company
√ Applicable □ Not applicable
Nil
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
Section VII. Changes in Shares and Particulars about Shareholders
I. Changes in Share Capital
1. Changes in Share Capital
Unit: Share
Before the Change Increase/Decrease in the Change (+, -) After the Change
Capitaliz
New
Bonus ation of Subtota Proportio
Amount Proportion shares Others Amount
shares public l n
issued
reserve
I. Restricted shares 3,957 0.00% 3,957 0.00%
1. State-owned shares 0 0.00% 0 0.00%
2. State-owned legal person’s
0 0.00% 0 0.00%
shares
3. Other domestic shares 3,957 0.00% 3,957 0.00%
Including: Domestic legal
0 0.00% 0 0.00%
person’s shares
Domestic natural person’s
3,957 0.00% 3,957 0.00%
shares
4. Foreign shares 0 0.00% 0 0.00%
Including: Foreign legal
0 0.00% 0 0.00%
person’s shares
Foreign natural person’s
0 0.00% 0 0.00%
shares
II. Unrestricted shares 551,343,990 100.00% 551,343,990 100.00%
1. RMB Ordinary shares 302,981,008 54.95% 302,981,008 54.95%
2. Domestically listed foreign
248,362,982 45.05% 248,362,982 45.05%
shares
3. Overseas listed foreign
0 0.00% 0 0.00%
shares
4. Others 0 0.00% 0 0.00%
III. Total shares 551,347,947 100.00% 551,347,947 100.00%
Reasons for share changed
□ Applicable √ Not applicable
Approval of share changed
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
□ Applicable √ Not applicable
Ownership transfer of share changed
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common
shareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose for the Company or need to disclosed under requirement from security regulators
□ Applicable √ Not applicable
2. Changes of restricted shares
□ Applicable √ Not applicable
II. Securities issuance and listing
1. Security offering (without preferred stock) in Reporting Period
□ Applicable √ Not applicable
2. Changes of total shares and shareholders structure as well as explanation on changes of assets and
liability structure
□ Applicable √ Not applicable
3. Existing internal staff shares
□ Applicable √ Not applicable
III. Particulars about shareholder and actual controller of the Company
1. Amount of shareholders of the Company and particulars about shares holding
Unit: Share
Total preference Total preference
Total common
Total common shareholders with shareholders
stock
stock voting rights with voting
shareholders at
shareholders in 39,625 40,730 recovered at end of 0 rights recovered 0
end of last month
reporting reporting period (if at end of last
before annual
period-end applicable) (found month before
report disclosed
in note 8) annual report
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
disclosed (if
applicable)
(found in note 8)
Particulars about shares held above 5% by shareholders or top ten shareholders
Information of shares
Proportio Total
Amount of Amount of pledged, tagged or
Full name of Nature of n of shareholders at Changes in
restricted un-restricted frozen
Shareholders shareholder shares the end of report period
shares held shares held State of
held report period Amount
share
Shenzhen
Guosheng Energy Domestic
Investment non-state-owned 11.52% 63,508,747 0 0 63,508,747
Development Co., legal person
Ltd.
UOB Koy Hian
Foreign legal
(Hong Kong) Co., 2.89% 15,907,850 0 0 15,907,850
person
Ltd.
Guosen Securities
Foreign legal
(Hong Kong) 2.52% 13,909,425 0 0 13,909,425
person
brokerage Co., Ltd.
Shenwan
Hongyuan Foreign legal
1.50% 8,281,156 -22,116 0 8,281,156
Securities (Hong person
Kong) Co., Ltd.
Lhasa Xingqing
Domestic
Network
non-state-owned 0.83% 4,600,255 -1,490,000 0 4,600,255
Technology Co.,
legal person
Ltd.
Domestic nature
Li Huili 0.71% 3,891,124 0 0 3,891,124
person
Domestic nature
Ge Zhiqiong 0.64% 3,525,152 347,200 0 3,525,152
person
Domestic nature
Xu Hongbo 0.53% 2,927,319 -260,200 0 2,927,319
person
CMS Hong Kong State-owned legal
0.52% 2,894,135 -176,541 0 2,894,135
Co., Ltd person
Shenzhen China
Domestic
Bicycle Company
non-state-owned 0.47% 2,602,402 0 0 2,602,402
(Holdings) Limited
legal person
-Special account
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
for property
disposal of
bankrupt enterprise
Strategy investors or general
corporation comes top 10 common
N/A
stock shareholders due to rights issue
(if applicable) (see note 3)
Li Huili, spouse of the Ji Hanfei, the actual controller of he Company- Shenzhen Guosheng
Energy Investment Development Co., Ltd., holding B-share of the Company on behalf of
Explanation on associated relationship Shenzhen Guosheng Energy Investment Development Co., Ltd., beyond that, the Company
among the aforesaid shareholders has no idea of whether other circulated shareholders belong to concerted action persons
ruled in the Administration Norms for Information Disclosure of Change on Shareholding
of Shareholders of Listed Companies.
Description of the above shareholders
in relation to delegate/entrusted voting
N/A
rights and abstention from voting
rights.
Special note on the repurchase account
among the top 10 shareholders (if N/A
applicable) (see note 10)
Particular about top ten shareholders with un-restrict shares held
Type of shares
Shareholders’ name Amount of un-restrict shares held at Period-end
Type Amount
Shenzhen Guosheng Energy RMB common
63,508,747 63,508,747
Investment Development Co., Ltd. shares
Domestically
UOB Koy Hian (Hong Kong) Co., Ltd. 15,907,850 listed foreign 15,907,850
shares
Domestically
Guosen Securities (Hong Kong)
13,909,425 listed foreign 13,909,425
brokerage Co., Ltd.
shares
Domestically
Shenwan Hongyuan Securities (Hong
8,281,156 listed foreign 8,281,156
Kong) Co., Ltd.
shares
Lhasa Xingqing Network Technology RMB common
4,600,255 4,600,255
Co., Ltd. shares
Domestically
Li Huili 3,891,124 listed foreign 3,891,124
shares
Ge Zhiqiong 3,525,152 RMB common 611,500
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
shares
Domestically
listed foreign 2,913,652
shares
Domestically
Xu Hongbo 2,927,319 listed foreign 2,927,319
shares
Domestically
CMS Hong Kong Co., Ltd. 2,894,135 listed foreign 2,894,135
shares
RMB common
Shenzhen China Bicycle Company 1,219,089
shares
(Holdings) Limited -Special account
2,602,402 Domestically
for property disposal of bankrupt
listed foreign 1,383,313
enterprise
shares
Li Huili, spouse of the Ji Hanfei, the actual controller of he Company- Shenzhen Guosheng
Expiation on associated relationship or
Energy Investment Development Co., Ltd., holding B-share of the Company on behalf of
consistent actors within the top 10
Shenzhen Guosheng Energy Investment Development Co., Ltd., beyond that, the Company
un-restrict shareholders and between
has no idea of whether other circulated shareholders belong to concerted action persons
top 10 un-restrict shareholders and top
ruled in the Administration Norms for Information Disclosure of Change on Shareholding
10 shareholders
of Shareholders of Listed Companies.
Explanation on top 10 shareholders
involving margin business (if N/A
applicable) (see note 4)
Whether top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held have a buy-back
agreement dealing in reporting period
□ Yes √ No
The top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held of the Company have no
buy-back agreement dealing in reporting period.
2. Controlling shareholder of the Company
Nature of controlling shareholders: No controlling subject
Type of controlling shareholders: Non-existent
The Company does not have the controlling shareholder.
On 21 February 2017, we received a Letter of “Explanation on Relevant Event of CBC” from Shenzhen Guosheng Energy
Investment Development Co., Ltd. the letter said: since obtained controlling rights of the Shenzhen Guosheng Energy Investment
Development Co., Ltd. (hereinafter referred to as Guosheng Energy) on 3 Jan. 2011, in view of Ji Hanfei is the first majority
shareholder and largest creditor of CBC, and CBC facing a serious debt crisis, Ji Hanfei initiative seeking an actual controller of
CBC, by actively participate the shareholders general meeting of CBC, showing major influence on CBC for achieving actually
controls of the Company in purpose of resolving the debt crisis.
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
On 11 May 2012, the largest shareholder and biggest creditor of the Company, Shenzhen Guosheng Energy Investment and
Development Co., Ltd. applied to Shenzhen Municipal Intermediate People's Court for reforming the Company as the Company
couldn’t pay off the matured debts and was seriously insolvent. On 12th, Oct., 2012, Shenzhen Municipal Intermediate People's Court
ruled to accept the application proposed by Guosheng Energy according to (2012) Shenzhen Intermediate Court Po Zi No. 30 civil
ruling. In second half year of 2013, on the basis of the investor interest adjustment scheme deliberated and approved by creditor’s
meeting and investors’ conference, Shenzhen Intermediate People’s Court approved the reorganization plan for CBC, the
reorganization plan of CBC completed on 27 December 2013 and close the bankruptcy proceedings of CBC. As a largest majority
shareholder and largest creditor of the Company, Guosheng Energy vote in favor on creditor’s meeting and investors’ conference, in
respect of the investor interest adjustment scheme, and provided 5.39 million Yuan to CBC for claims settlement and maintain the
assets of main business of CBC. Debts of the CBC solved by reorganization, net assets of CBC turns to positive value, the main
business of bicycle maintained and achieved a steady development.
Currently, CBC is planning a private placement for business promotion and transformation, optimize asset structure, further to
strengthen the Company and sustainable ability in development. Taking into account the debt problem of CBC has been resolved, the
Company needs supports from all over the shareholders, and based on the actual condition of development of Guosheng Energy and
share-holding ratio, Ji Hanfei and Guosheng Energy decided to change the actually controller state to general investment, that is Ji
Hanfei and Guosheng Energy, will not participate in the operation management plan of CBC in future, and they have no plans to
seeking an actual controlling rights of CBC in next 12 months either
The Shenzhen Guosheng Energy Investment Development will hold stock of the CBC and exercise shareholders’ rights as a common
investor.
Changes of controlling shareholders in reporting period
□Applicable √Not applicable
Controlling shareholders of the Company has no changes in the period.
3. Actual controller and persons acting in concert of the Company
Nature of actual controller: No actual controller
Type of actual controller: Non-existent
The company does not have the actual controller.
(i) Facts and reasons for the company's determination of the actual controller's alteration
On February 20, 2017, Ji Hanfei and Guosheng Energy made an “Explanation” to abandon the actual control of the Company, after Ji
Hanfei made the declaration to abandon the actual control of the Company, the actual controller of the Company changed from Ji
Hanfei to no actual control, the specific facts and reasons are as follows:
1. The voting rights of Ji Hanfei to actually control the shares of the Company
According to the “Security Holder Roster” issued by China Securities Depository and Clearing Co., Ltd., Shenzhen Branch and the
documents publicly disclosed by Shenzhen China Bicycle, up to December 31, 2016, Ji Hanfei held 63,508,747 shares of the
Company’s A-Shares through Guosheng Energy, and his spouse, Li Huili, held 3,891,124 shares of the Company’s B-Shares, so Ji
Hanfei totally controlled 67,399,871 shares of the Company’s voting shares, accounting for 12.22% of the total number of shares of
the Company. Ji Hanfei actually controlled no more than 30.00% of the Company’s voting rights and had no control over the
Company's general meeting of shareholders.
2. Ji Hanfei’s control to the Company's board of directors
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
According to the Resolution Announcement of the 18th session of 8th Board of Directors and the Resolution Announcement of the
First Extraordinary General Meeting of 2013 publicly disclosed by the Company and confirmed by the Company and Guosheng
Energy, the directors of the current board of directors of the Company should be nominated by the eighth session of board of
directors, Guosheng Energy did not nominate the current board of directors for the Company.
Therefore, Ji Hanfei has not restructured the board of directors of the Company by controlling the Company’s voting shares after
obtaining the control power of Guosheng Energy, and has not actually dominated over half of the members of the board of directors
of the Company.
According to the Resolution Announcement of the 24th session of the 9th Board of Directors announced on April 27, 2017 by the
Company, the ninth session of board of directors of the Company reviewed and passed the following proposals concerning the
candidates for the tenth session of board of directors:
(1) Passed the Proposal on Nominating Candidates for Directors of the Tenth Session of Board of Directors, agreed the current board
of directors to nominate Mr. Li Hai, Mr. Yao Zhengwang, Mr. Cao Fang, Mr. Yang Fenbo, Mr. Sun Longlong and Mr. Zhong Hua as
the candidates for the directors of the tenth session of board of directors of the company and participate in the election of the general
shareholders’ meeting as the term of office of the director of the 9th session of board of directors of the company has expired.
(2) Passed the Proposal on Nominating Candidates for Independent Directors of the Tenth Session of Board of Directors, agreed the
current board of directors to nominate Mr. Song Xishun, Mr. Zhang Zhigao and Ms. Yang Hao as the candidates for the independent
directors of the tenth session of board of directors of the company as the term of office of the director of the 9 th session of board of
directors of the company has expired, and submitted the proposal to the Shenzhen Stock Exchange for review, the candidates can
only participate in the election of the general shareholders’ meeting when there is no objection to the review.
According to the Company’s explanation and the announcement document of the 24 th session of 9th board of directors of the
Company, the candidates for the tenth session of board of directors should be nominated by the ninth session of board of directors,
the Company did not receive the nomination of candidates for the tenth session of board of directors from Guosheng Energy.
According to the explanation of the Company and Guosheng Energy and the review to the resume of the director candidates
announced by the ninth session of board of directors of the Company, in addition to Yao Zhengwang, serving as a supervisor of
Guojun Energy, the above mentioned director candidates had no related relationships with Guosheng Energy and Ji Hanfei.
In conclusion, even the stockholders’ meeting of the Company considered and agreed the above-mentioned director candidate to
serve as the directors of the tenth session of the board of directors of the Company, Ji Hanfei and Guosheng Energy had not actually
dominated over half of the members of the tenth session of board of directors of the Company.
3. Ji Hanfei’s significant influence on the general meeting of shareholders of the Company
On October 12, 2012, the Shenzhen Intermediate People's Court issued the “Civil Ruling” of “(2012) SZFPZ No. 30” to accept the
application for the reorganization of the Company by Guosheng Energy. On December 27, 2013, Shenzhen Intermediate People's
Court issued the “Civil Ruling” of “(2012) SZFPZ No. 30-10”, which ruled that the implementation of the Company’s reorganization
plan was completed and the Company’s bankruptcy proceedings ended. According to the explanation of Guosheng Energy and the
inspection of bankruptcy and restructuring documents, Guosheng Energy had actively participated in the meeting of creditors for the
Company’s bankruptcy and reorganization and had provided interest-free loan support to the Company during the bankruptcy and
reorganization, which had a significant influence on the Company’s general meeting of shareholders.
On February 20, 2017, Ji Hanfei and Guosheng Energy issued the “Explanation”: “Since Ji Hanfei obtained the control power of
Guoji Energy on January 3, 2011, in view of the fact that it was the Company’s largest shareholder and largest creditor and the
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
Company faced serious debt crisis for a long time, Ji Hanfei actively sought the actual controller status of the Company and exerted a
significant influence on the Company by actively participating in the Company’s general meeting of shareholders so as to realize the
actual control of the Company and then strive to promote and solve the Company's debt crisis properly."
Therefore, from January 3, 2011 to February 19, 2017, Ji Hanfei had a subjective purpose for actually controlling the Company.
After Ji Hanfei made a clear declaration on Feb. 20, 2017 to abandon the actual control of the Company, Ji Hanfei did not
subjectively attempt to influence the general meeting of stockholders of the Company by seeking the actual control rights.
Objectively, the Company’s voting rights dominated by Ji Hanfei did not exceed 30.00% and he did not nominate more than half of
the directors of the Company’s board of directors, Ji Hanfei could not effectively control the Company’s general meeting of
shareholders and the board of directors.
According to the “Announcement on the Resolutions of the 24th session of 9th Board of Directors” announced by the Company on
April 27, 2017 and confirmed by the Company, Ji Hanfei and Guosheng Energy, Ji Hanfei and Guosheng Energy didn’t not nominate
any candidate for the directors of the tenth session of board of directors to the Company after Ji Hanfei and Guosheng Energy made
the declaration to abandon the control power.
In view of the above, the Company considered that the proportion of the Company’s shares actually controlled by Ji Hanfei was
relatively low, which was not sufficient to control the general meeting of shareholders or make a significant impact on the general
meeting of shareholders, and he had promised to give up the right of control to the company, the Company has no actual controller
since February 20, 2017.
The sponsor institutions and law firms engaged by the company for the non-public offering of shares have checked this issue and
made clear opinions to support.
Whether has the shareholder with over 10% stock held in ultimate controlling standards or not
□ Yes √ No
Shareholders holding more than 5% of the shares at the ultimate control level of the Company
Changes of actual controller in reporting period
□Applicable √ Not applicable
Actual controller of the Company has no changes in the period
Property right and controlling relationship between the actual controller and the Company is as follow:
No Actual Controller
Actual controller controlling the Company by entrust or other assets management
□ Applicable √ Not applicable
4. The total number of shares pledged by controlling shareholders or the first majority shareholder and its
persons acting in concert accounts for 80% of the shares held by them
□ Applicable √ Not applicable
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
5. Particulars about other legal person shareholders with over 10% shares held
√ Applicable □ Not applicable
Name of the legal person Legal person/person in Date of Main business or
Registered capital
shareholder charge of the unit foundation management activities
Industry development,
domestic commerce,
Shenzhen Guosheng Energy 91440300774115792 materials supply and sale
Ji Hanfei 2005-04-26
Investment Development Co., Ltd. T (excluding specially run,
controlled and sold
merchandises)
6. Limitation and reducing the holdings of shares of controlling shareholders, actual controllers,
restructuring side and other commitment subjects
□ Applicable √ Not applicable
IV. The specific implementation of shares buy-back during the reporting period
Implementation progress of shares buy-back
□ Applicable √ Not applicable
Implementation progress of the reduction of repurchases shares by centralized bidding
□ Applicable √ Not applicable
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
Section VIII. Preferred Stock
□ Applicable √ Not applicable
The Company had no preferred stock in the Period.
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
Section IX. Corporate Bonds
□ Applicable √ Not applicable
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
Section X. Financial Report
I. Audit Report
An unqualified audit report with significant uncertainty of going
Type of audit opinion
concern
Signing date of audit report 2022-04-22
Name of audit institute Baker Tilly China CPA (LLP)
Document serial of audit report TZY Zi[2022]No.26082
Name of the CPA Qu Xianfu, Deng Jun
Audit report
To Shareholders of Shenzhen China Bicycle Company (Holdings) Limited
I. Auditor’s opinion
We have audited the financial statements of Shareholders of Shenzhen China Bicycle Company (Holdings)
Limited (hereinafter the “Shen Zhonghua”), which included the consolidated and parent company’s balance sheet
as of 31 December 2021, the consolidated and parent company’s profit statement, the consolidated and parent
company’s statement of cash flow and the consolidated statement of changes in equity of the Company and parent
company’s for the year of 2021, together with the relevant annotations thereto.
We have the view that the attached financial statements are prepared in accordance with the Accounting Standards
for Business Enterprises in all material aspects, which reflect fairly the consolidated financial position of the
Company and parent company’s as of 31 December 2021 and the operating results and cash flow of the Company
and parent company’s for the year of 2021.
II. Basis for audit opinions
We conducted this audit under the requirements of the Auditing Standards of the Certified Public Accountant of
the PRC. The section headed “Certified Public Accountant’s responsibility for audit of financial statement” in the
audit report has further clarified our responsibilities under these standards. Pursuant to the code of professional
conduct as certified public accountant in the PRC, we are independent of the Shen Zhonghua and have performed
other responsibility as required by our professional ethics. We believe that the audit evidence obtained by us is
sufficient and adequate, which provides foundation for us to issue audit opinion.
III. Significant uncertainties related to going concern
We draw the attention of users of the financial statements that the reorganization plan of Shenzhen China Bicycle
Company was completed on December 27, 2013 and the bankruptcy procedure was terminated as stated in its
Financial Statements Note II, the company set conditions for the introduction of the restructuring party in the
restructuring plan, expecting to restore the sustainable operation ability and sustained profitability through asset
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
restructuring. As of the date of the audit report, the company has not yet introduced a reorganizing party, and only
maintained the sustainable operation ability of Shenzhen China Bicycle Company by retaining the traditional
business of selling electric bicycles and developing and selling new businesses such as lithium batteries and
jewelry gold before the reorganizing party injects assets. Considering that the net profit attributable to the parent
company in 2021 was -1,986,700 yuan, and the owner’s equity attributable to the parent company as of December
31, 2021 was 8,918,500 yuan, which indicated the existence of a material uncertainty that could cause significant
doubt about the sustainable operation ability of Shenzhen China Bicycle Company. Uncertainty. This matter does
not affect the issued audit opinion.
IV. Key audit items
Key audit items refer to those which in our opinion based on our professional judgment are the most important
issues in respect of audit for the current financial statements. We issue audit opinions on these issues in their entity
and provide no opinions separately for each of them.
Key audit items Countermeasures
1、Revenue recognition
CBC is mainly engaged in the sales of bicycles, electric The main audit procedures we performed for revenue
bicycles and related materials, jewelry and accessories. In recognition are as follows:
2021, revenue from main business was 160,519,280.02 1. Understand, evaluate and test the effectiveness of the
yuan, all of which was generated from domestic sales. CBC design and operation of internal control related to sales and
recognizes the sales revenue when the products are shipped collection of Shenzhen China Bicycle Company.
and signed for by the customers. Due to the significant
2. Check the relevant terms of the customer contract,
amount of operation revenue, the veracity of the revenue and
concern whether the pricing method, acceptance method,
whether it is included in the proper accounting period has a
delivery place and lead time, settlement method, etc. have
significant impact on the Company’ results of operation for
changed, and evaluate whether the revenue recognition of
2021, and may be subject to the potential misstatement.
Shenzhen China Bicycle Company complies with the
Accordingly, we have identified the revenue recognition as a
provisions of the Accounting Standards for Business
key audit matter.
Enterprises and whether it is consistent with the disclosed
Please refer to the accounting policies described in "28. accounting policies .
Revenue" in Note "III. Significant Accounting Policies and
3. Inquire and understand the background information of
Accounting Estimates" to the Financial Statements, and "23.
major customers through public channels, such as industrial
Operating Income and Costs" in "Notes to Items in the
and commercial registration information, to confirm
Consolidated Financial Statements".
whether there is a potential unidentified related party
relationship between the customer and Shenzhen China
Bicycle Company and related parties.
4. Check the online sales customer information (such as
contact number, contact address, order time, etc.) to evaluate
the authenticity and rationality of online sales; check the
market prices of main materials, and analyze the rationality
of fluctuations in gross profit margins.
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
5. Confirm the current transaction amount and payment
balance to major customers, and visit important customers
to verify the authenticity of the revenue recognition of
Shenzhen China Bicycle Company.
6. Check the main customer contracts, incoming and
outgoing records, delivery notes and delivery receipt
records, etc.
7. Check the delivery notes within a certain period before
and after the balance sheet date, pay attention to the date of
receipt, and confirm whether the revenue recognition is
included in the correct accounting period.
Key audit items Countermeasures
2、Impairment of accounts receivable
As of December 31, 2021, balance of account receivable Our main audit procedures for the impairment of accounts
under the name of CBC was 54,169,661.20 yuan, balance of receivable are as follows:
bad debt provision was 7,319,577.61 yuan. Due to the 1. Understand and test the effectiveness of the design and
significant amount of account receivable and the assessment operation of internal control related to accounts receivable
of the bad debt provision involves significant management management.
judgment. Accordingly, we identified the impairment of 2. Review the rationality and consistency of the
account receivable as a key audit matter. management’s accounting policies for the provision for bad
debts of accounts receivable, and review whether the major
Please refer to the accounting policies described in "12.
standards of single amount determined by the management
Accounts receivable" in Note "III. Significant Accounting
are reasonable.
Policies and Accounting Estimates" to the financial
3. For accounts receivable with separate provision for bad
statements, and "2. Accounts receivable" in "6. Notes to
debts, select samples to obtain the basis for the management
Items in Consolidated Financial Statements"
to estimate the expected future recoverable amount,
including customer credit records, default or delayed
payment records and actual repayment after the period, and
review its rationality.
4. For the accounts receivable for which the bad debt
provision is made according to the aging analysis method,
analyze the rationality of the accounting estimate of the bad
debt provision for the accounts receivable of Shenzhen
China Bicycle Company, and select samples to test the
accuracy of the aging.
V. Other information
The management of Shen Zhonghua (hereinafter, the Management) is responsible for other information, which
includes the information covered in the Annual Report of 2021 except for the financial statements and our audit
report.
Our audit opinion issued on financial statement does not cover other information, and we would not issue any
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
form of verification conclusion for those information.
To prepare our audit on financial statement, we are required to read other information, and during the procedure,
to consider that whether other information differs materially from the financial statement or the information
obtained by us during the audit or whether there exits material error.
Based on the works done by us, in case we find any material error in other information, we shall report this fact.
In this regard, we have nothing to report.
VI. Management’s responsibility for financial statements
The Management is responsible for preparing financial statements according to the Business Accounting
Standards which make fair reflection, and for designing, implementing and maintaining necessary internal control
system to make sure that there is no material misstatement in the financial statements due to fraud or mistake.
When preparing the financial statements, the management is responsible for assessing the Company’s ability of
continuous operation, disclosing the matters relating to continuous operation (if applicable) and applying the
assumption of continuous operation, unless the management plans to liquidate the Company, terminate operation
or has no other practicable choice.
The governance is responsible for monitoring the financial reporting process of the Company.
VII. Auditor’s responsibility for audit of the financial statements
Our objectives are to obtain reasonable assurance about whether these financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with auditing standards will always be found in the presence of a material misstatement.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the basis of these financial
statements.
As part of an audit in accordance with auditing standards, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.
(4) Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in these
financial statements or, if such disclosures are inadequate, we have to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions
may cause the Company to cease to continue as a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements, and whether the financial
statements represent the underlying transactions and events in a manner that achieves fair presentation.
(6) Obtain adequate and appropriate audit evidence in relation to the financial information of the entities or
business transactions of the Company, in order to issue audit opinion on the financial statement. We are
responsible for guiding, supervising and executing the audit for the Group, and we accept full responsibility for
the audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and related safeguards (if applicable).
From the matters communicated with those charged with governance, we determine those matters that were of
most significance in the audit of the financial statements of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
II. Financial statement
Unit in note of financial statement refers to CNY: RMB (Yuan)
1. Consolidated Balance Sheet
Prepared by Shenzhen China Bicycle Company (Holdings) Limited
December 31, 2021
Unit: RMB/CNY
Item December 31, 2021 December 31, 2020
Current assets:
Monetary funds 33,246,957.92 19,887,978.05
Settlement provisions
Capital lent
Trading financial assets
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
Derivative financial assets
Note receivable
Account receivable 46,850,083.59 55,031,424.70
Receivable financing
Accounts paid in advance 1,300,408.57 816,541.52
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance
receivable
Other account receivable 494,695.27 576,770.36
Including: Interest receivable
Dividend receivable
Buying back the sale of financial
assets
Inventories 8,248,573.77 7,729,325.94
Contractual assets
Assets held for sale
Non-current asset due within one
year
Other current assets 1,814,200.53 2,715,425.31
Total current assets 91,954,919.65 86,757,465.88
Non-current assets:
Loans and payments on behalf
Debt investment
Other debt investment
Long-term account receivable
Long-term equity investment
Investment in other equity
instrument
Other non-current financial assets
Investment real estate
Fixed assets 3,439,212.00 3,792,133.36
Construction in progress
Productive biological asset
Oil and gas asset
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
Right-of-use assets 1,505,258.90
Intangible assets
Expense on Research and
Development
Goodwill
Long-term expenses to be
apportioned
Deferred income tax asset 64,046.67 793,170.75
Other non-current asset 400,000.00 400,000.00
Total non-current asset 5,408,517.57 4,985,304.11
Total assets 97,363,437.22 91,742,769.99
Current liabilities:
Short-term loans
Loan from central bank
Capital borrowed
Trading financial liability
Derivative financial liability
Note payable
Account payable 8,297,306.34 9,606,144.94
Accounts received in advance
Contractual liability 124,328.07 15,254,713.38
Selling financial asset of
repurchase
Absorbing deposit and interbank
deposit
Security trading of agency
Security sales of agency
Wage payable 923,477.10 1,459,244.07
Taxes payable 911,506.52 722,321.02
Other account payable 61,407,301.04 37,882,805.52
Including: Interest payable
Dividend payable
Commission charge and
commission payable
Reinsurance payable
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Liability held for sale
Non-current liabilities due within
1,456,782.04
one year
Other current liabilities 11,700.06 1,175,251.38
Total current liabilities 73,132,401.17 66,100,480.31
Non-current liabilities:
Insurance contract reserve
Long-term loans
Bonds payable
Including: Preferred stock
Perpetual capital
securities
Lease liability 228,302.37
Long-term account payable
Long-term wages payable
Accrual liability
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 228,302.37
Total liabilities 73,360,703.54 66,100,480.31
Owner’s equity:
Share capital 551,347,947.00 551,347,947.00
Other equity instrument
Including: Preferred stock
Perpetual capital
securities
Capital public reserve 627,834,297.85 627,834,297.85
Less: Inventory shares
Other comprehensive income
Reasonable reserve
Surplus public reserve 32,673,227.01 32,673,227.01
Provision of general risk
Retained profit -1,202,936,933.70 -1,200,950,240.88
Total owner’ s equity attributable to 8,918,538.16 10,905,230.98
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parent company
Minority interests 15,084,195.52 14,737,058.70
Total owner’ s equity 24,002,733.68 25,642,289.68
Total liabilities and owner’ s equity 97,363,437.22 91,742,769.99
Legal Representative: Li Hai
Person in charge of Accounting Works: Sun Longlong
Person in charge of Accounting Institution: Zhong Xiaojin
2. Balance Sheet of Parent Company
Unit: RMB/CNY
Item December 31, 2021 December 31, 2020
Current assets:
Monetary funds 7,613,043.60 10,097,024.59
Trading financial assets
Derivative financial assets
Note receivable
Account receivable 22,842,513.86 24,274,935.96
Receivable financing
Accounts paid in advance 586,425.80 800,000.00
Other account receivable 70,451.01 115,263.05
Including: Interest receivable
Dividend receivable
Inventories 73,037.28 550,421.78
Contractual assets
Assets held for sale
Non-current assets maturing within
one year
Other current assets 1,814,200.53 2,652,771.13
Total current assets 32,999,672.08 38,490,416.51
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
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Long-term equity investments 19,960,379.73 19,960,379.73
Investment in other equity
instrument
Other non-current financial assets
Investment real estate
Fixed assets 3,265,329.99 3,530,501.40
Construction in progress
Productive biological assets
Oil and natural gas assets
Right-of-use assets 421,613.45
Intangible assets
Research and development costs
Goodwill
Long-term deferred expenses
Deferred income tax assets
Other non-current assets 400,000.00 400,000.00
Total non-current assets 24,047,323.17 23,890,881.13
Total assets 57,046,995.25 62,381,297.64
Current liabilities:
Short-term borrowings
Trading financial liability
Derivative financial liability
Notes payable
Account payable 364,394.75 748,604.24
Accounts received in advance
Contractual liability 90,000.44 14,685,423.04
Wage payable 561,350.41 1,146,371.58
Taxes payable 15,603.18 24,906.50
Other accounts payable 52,710,433.54 39,409,824.37
Including: Interest payable
Dividend payable
Liability held for sale
Non-current liabilities due within
323,646.60
one year
Other current liabilities 11,700.06 1,101,243.63
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Total current liabilities 54,077,128.98 57,116,373.36
Non-current liabilities:
Long-term loans
Bonds payable
Including: Preferred stock
Perpetual capital
securities
Lease liability 121,974.19
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 121,974.19
Total liabilities 54,199,103.17 57,116,373.36
Owners’ equity:
Share capital 551,347,947.00 551,347,947.00
Other equity instrument
Including: Preferred stock
Perpetual capital
securities
Capital public reserve 627,834,297.85 627,834,297.85
Less: Inventory shares
Other comprehensive income
Special reserve
Surplus reserve 32,673,227.01 32,673,227.01
Retained profit -1,209,007,579.78 -1,206,590,547.58
Total owner’s equity 2,847,892.08 5,264,924.28
Total liabilities and owner’s equity 57,046,995.25 62,381,297.64
3. Consolidated Profit Statement
Unit: RMB/CNY
Item 2021 2020
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I. Total operating income 165,246,577.95 117,857,480.17
Including: Operating income 165,246,577.95 117,857,480.17
Interest income
Insurance gained
Commission charge and
commission income
II. Total operating cost 164,230,093.26 113,179,555.62
Including: Operating cost 152,606,986.59 103,221,623.73
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 116,707.39 108,070.23
Sales expense 3,303,956.30 2,540,657.03
Administrative expense 6,154,605.29 4,783,608.32
R&D expense 2,037,197.58 2,506,877.57
Financial expense 10,640.11 18,718.74
Including: Interest
expenses
Interest income 127,249.64 89,977.25
Add: Other income 400,392.20 10,207.52
Investment income (Loss is
listed with “-”)
Including: Investment income
on affiliated company and joint venture
The termination of income
recognition for financial assets measured
by amortized cost
Exchange income (Loss is
listed with “-”)
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Net exposure hedging income
(Loss is listed with “-”)
Income from change of fair
value (Loss is listed with “-”)
Loss of credit impairment
-2,398,980.61 -603,180.13
(Loss is listed with “-”)
Losses of devaluation of asset
-99,941.65 -198,181.03
(Loss is listed with “-”)
Income from assets disposal
24,936.44
(Loss is listed with “-”)
III. Operating profit (Loss is listed with
-1,082,045.37 3,911,707.35
“-”)
Add: Non-operating income 5,680,409.27 6,542,649.75
Less: Non-operating expense 5,303,959.22 5,688,279.29
IV. Total profit (Loss is listed with “-”) -705,595.32 4,766,077.81
Less: Income tax expense 933,960.68 390,371.22
V. Net profit (Net loss is listed with “-”) -1,639,556.00 4,375,706.59
(i) Classify by business continuity
1.continuous operating net profit
-1,639,556.00 4,375,706.59
(net loss listed with ‘-”)
2.termination of net profit (net loss
listed with ‘-”)
(ii) Classify by ownership
1.Net profit attributable to owner’s
-1,986,692.82 3,785,834.68
of parent company
2.Minority shareholders’ gains and
347,136.82 589,871.91
losses
VI. Net after-tax of other comprehensive
income
Net after-tax of other comprehensive
income attributable to owners of parent
company
(I) Other comprehensive income
items which will not be reclassified
subsequently to profit of loss
1.Changes of the defined
benefit plans that re-measured
2.Other comprehensive
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income under equity method that cannot
be transfer to gain/loss
3.Change of fair value of
investment in other equity instrument
4.Fair value change of
enterprise's credit risk
5. Other
(ii) Other comprehensive income
items which will be reclassified
subsequently to profit or loss
1.Other comprehensive
income under equity method that can
transfer to gain/loss
2.Change of fair value of
other debt investment
3.Amount of financial assets
re-classify to other comprehensive
income
4.Credit impairment
provision for other debt investment
5.Cash flow hedging reserve
6.Translation differences
arising on translation of foreign currency
financial statements
7.Other
Net after-tax of other comprehensive
income attributable to minority
shareholders
VII. Total comprehensive income -1,639,556.00 4,375,706.59
Total comprehensive income
-1,986,692.82 3,785,834.68
attributable to owners of parent Company
Total comprehensive income
347,136.82 589,871.91
attributable to minority shareholders
VIII. Earnings per share:
(i) Basic earnings per share -0.0036 0.0069
(ii) Diluted earnings per share -0.0036 0.0069
As for the enterprise combined under the same control, net profit of 0 Yuan achieved by the merged party before combination while 0
Yuan achieved last period.
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Legal Representative: Li Hai
Person in charge of Accounting Works: Sun Longlong
Person in charge of Accounting Institution: Zhong Xiaojin
4. Profit Statement of Parent Company
Unit: RMB/CNY
Item 2021 2020
I. Operating income 28,199,223.50 28,879,097.16
Less: Operating cost 24,333,256.69 21,700,690.24
Taxes and surcharge 18,043.30 15,043.36
Sales expenses 688,541.79 707,225.99
Administration expenses 1,765,358.61 2,851,678.89
R&D expenses 2,037,197.58 1,118,618.85
Financial expenses -56,830.88 -60,879.85
Including: Interest
expenses
Interest
97,007.00 69,527.04
income
Add: Other income 392,001.91 8,595.12
Investment income (Loss is
listed with “-”)
Including: Investment income
on affiliated Company and joint venture
The termination of
income recognition for financial assets
measured by amortized cost (Loss is
listed with “-”)
Net exposure hedging income
(Loss is listed with “-”)
Changing income of fair
value (Loss is listed with “-”)
Loss of credit impairment
-2,700,794.63 -130,767.69
(Loss is listed with “-”)
Losses of devaluation of asset
72,937.26 -118,780.98
(Loss is listed with “-”)
Income on disposal of assets 24,936.44
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(Loss is listed with “-”)
II. Operating profit (Loss is listed with
-2,822,199.05 2,330,702.57
“-”)
Add: Non-operating income 5,587,466.85 5,975,186.69
Less: Non-operating expense 5,182,300.00 5,438,228.77
III. Total Profit (Loss is listed with “-”) -2,417,032.20 2,867,660.49
Less: Income tax
IV. Net profit (Net loss is listed with
-2,417,032.20 2,867,660.49
“-”)
(i) continuous operating net profit
-2,417,032.20 2,867,660.49
(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
income under equity method that can
transfer to gain/loss
2.Change of fair value of
other debt investment
3.Amount of financial
assets re-classify to other
comprehensive income
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4.Credit impairment
provision for other debt investment
5.Cash flow hedging
reserve
6.Translation differences
arising on translation of foreign
currency financial statements
7.Other
VI. Total comprehensive income -2,417,032.20 2,867,660.49
VII. Earnings per share:
(i) Basic earnings per share
(ii) Diluted earnings per share
5. Consolidated Cash Flow Statement
Unit: RMB/CNY
Item 2021 2020
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor 187,241,639.89 93,023,981.38
services
Net increase of customer deposit
and interbank deposit
Net increase of loan from central
bank
Net increase of capital borrowed
from other financial institution
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
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capital
Net cash received by agents in sale
and purchase of securities
Write-back of tax received 51,574.09 78,290.48
Other cash received concerning
20,966,639.22 28,524,286.42
operating activities
Subtotal of cash inflow arising from
208,259,853.20 121,626,558.28
operating activities
Cash paid for purchasing
commodities and receiving labor 169,402,197.88 96,741,787.34
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 capital lent
Cash paid for interest, commission
charge and commission
Cash paid for bonus of guarantee
slip
Cash paid to/for staff and workers 8,534,075.79 5,937,846.01
Taxes paid 816,292.62 551,358.27
Other cash paid concerning
13,833,354.04 14,453,337.70
operating activities
Subtotal of cash outflow arising from
192,585,920.33 117,684,329.32
operating activities
Net cash flows arising from operating
15,673,932.87 3,942,228.96
activities
II. Cash flows arising from investing
activities:
Cash received from recovering
investment
Cash received from investment
income
Net cash received from disposal of
64,500.00
fixed, intangible and other long-term
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assets
Net cash received from disposal of
subsidiaries and other units
Other cash received concerning
investing activities
Subtotal of cash inflow from investing
64,500.00
activities
Cash paid for purchasing fixed,
18,890.56 18,118.82
intangible and other long-term assets
Cash paid for investment
Net increase of mortgaged loans
Net cash received from
subsidiaries and other units obtained
Other cash paid concerning
investing activities
Subtotal of cash outflow from investing
18,890.56 18,118.82
activities
Net cash flows arising from investing
-18,890.56 46,381.18
activities
III. Cash flows arising from financing
activities:
Cash received from absorbing
9,825,000.00
investment
Including: Cash received from
absorbing minority shareholders’ 9.225,000.00
investment by subsidiaries
Cash received from loans
Other cash received concerning
financing activities
Subtotal of cash inflow from financing
9,825,000.00
activities
Cash paid for settling debts
Cash paid for dividend and profit
distributing or interest paying
Including: Dividend and profit of
minority shareholder paid by
subsidiaries
Other cash paid concerning 2,296,062.44
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
financing activities
Subtotal of cash outflow from financing
2,296,062.44
activities
Net cash flows arising from financing
-2,296,062.44 9,825,000.00
activities
IV. Influence on cash and cash
equivalents due to fluctuation in
exchange rate
V. Net increase of cash and cash
13,358,979.87 13,813,610.14
equivalents
Add: Balance of cash and cash
19,887,978.05 6,074,367.91
equivalents at the period -begin
VI. Balance of cash and cash
33,246,957.92 19,887,978.05
equivalents at the period -end
6. Cash Flow Statement of Parent Company
Unit: RMB/CNY
Item 2021 2020
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor 25,119,322.27 17,674,623.95
services
Write-back of tax received 0.00 4,239.24
Other cash received concerning
22,351,912.54 33,840,545.52
operating activities
Subtotal of cash inflow arising from
47,471,234.81 51,519,408.71
operating activities
Cash paid for purchasing
commodities and receiving labor 21,110,201.92 9,546,863.96
service
Cash paid to/for staff and workers 5,707,424.68 4,522,703.61
Taxes paid 175,913.72 296,782.94
Other cash paid concerning
21,881,881.87 13,337,219.71
operating activities
Subtotal of cash outflow arising from
48,875,422.19 27,703,570.22
operating activities
Net cash flows arising from operating -1,404,187.38 23,815,838.49
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activities
II. Cash flows arising from investing
activities:
Cash received from recovering
investment
Cash received from investment
income
Net cash received from disposal of
fixed, intangible and other long-term 64,500.00
assets
Net cash received from disposal of
subsidiaries and other units
Other cash received concerning
investing activities
Subtotal of cash inflow from investing
64,500.00
activities
Cash paid for purchasing fixed,
5,272.56 18,118.82
intangible and other long-term assets
Cash paid for investment 15,725,000.00
Net cash received from
subsidiaries and other units obtained
Other cash paid concerning
investing activities
Subtotal of cash outflow from investing
5,272.56 15,743,118.82
activities
Net cash flows arising from investing
-5,272.56 -15,678,618.82
activities
III. Cash flows arising from financing
activities:
Cash received from absorbing
investment
Cash received from loans
Other cash received concerning
financing activities
Subtotal of cash inflow from financing
activities
Cash paid for settling debts
Cash paid for dividend and profit
90
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
distributing or interest paying
Other cash paid concerning
1,074,521.05
financing activities
Subtotal of cash outflow from financing
1,074,521.05
activities
Net cash flows arising from financing
-1,074,521.05
activities
IV. Influence on cash and cash
equivalents due to fluctuation in
exchange rate
V. Net increase of cash and cash
-2,483,980.99 8,137,219.67
equivalents
Add: Balance of cash and cash
10,097,024.59 1,959,804.92
equivalents at the period -begin
VI. Balance of cash and cash
7,613,043.60 10,097,024.59
equivalents at the period -end
7. Statement of Changes in Owners’ Equity (Consolidated)
Current Amount
Unit: RMB/CNY
2021
Owners’ equity attributable to the parent Company
Other
equity instrument Other
Minori Total
Item Perpe Less: compr Provisi
Share Reaso Surplu Retain ty owners
tual Capital Invent ehensi on of Subtot
capita Prefe nable s ed Other interes ’
capit reserve ory ve genera al
l rred Other reserve reserve profit ts equity
al shares incom l risk
stock
secur e
ities
I. The ending 551,3 627,83 32,673 -1,200, 10,905 14,737 25,642
balance of the 47,94 4,297. ,227.0 950,24 ,230.9 ,058.7 ,289.6
previous year 7.00 85 1 0.88 8 0 8
Add:
Changes of
accounting
policy
Error
correction of the
91
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
last period
Enterprise
combine under
the same control
Other
II. The
551,3 627,83 32,673 -1,200, 10,905 14,737 25,642
beginning
47,94 4,297. ,227.0 950,24 ,230.9 ,058.7 ,289.6
balance of the
7.00 85 1 0.88 8 0 8
current year
III. Increase/
Decrease in the
-1,986, -1,986, 347,13 -1,639,
period
692.82 692.82 6.82 556.00
(Decrease is
listed with “-”)
(i) Total
-1,986, -1,986, 347,13 -1,639,
comprehensive
692.82 692.82 6.82 556.00
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
92
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
2. Withdrawal
of general risk
provisions
3. Distribution
for owners (or
shareholders)
4. Other
(iv) Carrying
forward internal
owners’ equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with
surplus reserve
4. Carry-over
retained
earnings from
the defined
benefit plans
5. Carry-over
retained
earnings from
other
comprehensive
income
6. Other
(v) Reasonable
reserve
1. Withdrawal
in the report
period
93
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
2. Usage in the
report period
(vi) Others
IV. Balance at 551,3 627,83 32,673 -1,202, 15,084 24,002
8,918,
the end of the 47,94 4,297. ,227.0 936,93 ,195.5 ,733.6
538.16
period 7.00 85 1 3.70 2 8
Amount of the previous period
Unit: RMB/CNY
2020
Owners’ equity attributable to the parent Company
Other
equity instrument Other
Minorit
Perp Less: compr Provisi Total
Item y
Share Reaso Surplu Retain
etual Capital Invent ehensi on of Subtot owners’
capita Prefe nable s ed Other interest
capit reserve ory ve genera al equity
l rred Other reserve reserve profit s
al shares incom l risk
stock
secur e
ities
I. The ending 551,3 627,83 32,673 -1,204,
7,119, 4,322,1 11,441,
balance of the 47,94 4,297. ,227.0 736,07
396.30 86.79 583.09
previous year 7.00 85 1 5.56
Add:
Changes of
accounting
policy
Error
correction of
the last period
Enterprise
combine under
the same
control
Other
II. The
551,3 627,83 32,673 -1,204,
beginning 7,119, 4,322,1 11,441,
47,94 4,297. ,227.0 736,07
balance of the 396.30 86.79 583.09
7.00 85 1 5.56
current year
III. Increase/
3,785, 3,785, 10,414, 14,200,
Decrease in the
834.68 834.68 871.91 706.59
period
94
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
(Decrease is
listed with “-”)
(i) Total
3,785, 3,785, 589,871 4,375,7
comprehensive
834.68 834.68 .91 06.59
income
(ii) Owners’
devoted and 9,825,0 9,825,0
decreased 00.00 00.00
capital
1.Common
9,825,0 9,825,0
shares invested
00.00 00.00
by shareholders
2. Capital
invested by
holders of other
equity
instruments
3. Amount
reckoned into
owners equity
with
share-based
payment
4. Other
(iii) Profit
distribution
1. Withdrawal
of surplus
reserves
2. Withdrawal
of general risk
provisions
3. Distribution
for owners (or
shareholders)
4. Other
(iv) Carrying
forward
internal
owners’ equity
95
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with
surplus reserve
4. Carry-over
retained
earnings from
the defined
benefit plans
5. Carry-over
retained
earnings from
other
comprehensive
income
6. Other
(v) Reasonable
reserve
1. Withdrawal
in the report
period
2. Usage in the
report period
(vi) Others
IV. Balance at 551,3 627,83 32,673 -1,200, 10,905
14,737, 25,642,
the end of the 47,94 4,297. ,227.0 950,24 ,230.9
058.70 289.68
period 7.00 85 1 0.88 8
8. Statement of Changes in Owners’ Equity (Parent Company)
Current Amount
Unit: RMB/CNY
96
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
2021
Other
equity instrument
Less: Other
Item Share Perpet Capital Reasona Total
compreh Surplus Retaine
Preferr ual Inventor ble Other owners’
capital reserve ensive reserve d profit
ed capital Other y shares reserve equity
income
stock securiti
es
I. The ending 551,34 -1,206,
627,834, 32,673,2 5,264,924.
balance of the 7,947.0 590,54
297.85 27.01 28
previous year 0 7.58
Add: Changes
of accounting
policy
Error
correction of the
last period
Other
II. The
551,34 -1,206,
beginning 627,834, 32,673,2 5,264,924.
7,947.0 590,54
balance of the 297.85 27.01 28
0 7.58
current year
III. Increase/
Decrease in the -2,417, -2,417,032
period (Decrease 032.20 .20
is listed with “-”)
(i) Total
-2,417, -2,417,032
comprehensive
032.20 .20
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
97
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
owners equity
with share-based
payment
4. Other
(iii) Profit
distribution
1. Withdrawal of
surplus reserves
2. Distribution
for owners (or
shareholders)
3. Other
(iv) Carrying
forward internal
owners’ equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with surplus
reserve
4. Carry-over
retained earnings
from the defined
benefit plans
5. Carry-over
retained earnings
from other
comprehensive
income
6. Other
(v) Reasonable
reserve
98
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
1. Withdrawal in
the report period
2. Usage in the
report period
(vi) Others
IV. Balance at 551,34 -1,209,
627,834, 32,673,2 2,847,892.
the end of the 7,947.0 007,57
297.85 27.01 08
period 0 9.78
Amount of the previous period
Unit: RMB/CNY
2020
Other
equity instrument
Less: Other
Item Share Perpet Capital Total
compre Reasonab Surplus Retained
Inventor Other owners’
capital Preferr ual reserve hensive le reserve reserve profit
ed capital Other y shares equity
income
stock securit
ies
I. The ending 551,34
627,834 32,673, -1,209,45 2,397,263.7
balance of the 7,947.
,297.85 227.01 8,208.07 9
previous year 00
Add:
Changes of
accounting
policy
Error
correction of
the last period
Other
II. The
551,34
beginning 627,834 32,673, -1,209,45 2,397,263.7
7,947.
balance of the ,297.85 227.01 8,208.07 9
00
current year
III. Increase/
Decrease in the
2,867,660 2,867,660.4
period
.49 9
(Decrease is
listed with “-”)
(i) Total
2,867,660 2,867,660.4
comprehensive
.49 9
income
99
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
(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)
100
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
3. Remedying
loss with
surplus reserve
4. Carry-over
retained
earnings from
the defined
benefit plans
5. Carry-over
retained
earnings from
other
comprehensive
income
6. Other
(v) Reasonable
reserve
1. Withdrawal
in the report
period
2. Usage in the
report period
(vi) Others
IV. Balance at 551,34
627,834 32,673, -1,206,59 5,264,924.2
the end of the 7,947.
,297.85 227.01 0,547.58 8
period 00
III. Company Profile
1. History and basic information
According to the Approval Document SFBF (1991) No. 888 issued by the People’s Government of Shenzhen,
Shenzhen China Bicycle Company (Holdings) Limited (hereinafter referred to as the Company) was
reincorporated as the company limited by shares in November 1991. On 28 December 1991, upon the Approval
Document SRYFZ(1991) No. 119 issued by Shenzhen Special Economic Zone Branch of the People’s Bank of
China, the Company got listed on Shenzhen Stock Exchange. Registered of the Company amounted as
551,347,947.00 Yuan.
Legal representative: Li Hai
Location: No. 3008, Buxin Road, Luohu District, Shenzhen
101
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
Certificate for Uniform Social Credit Code: 914403006188304524
2. Business nature and main operation activities
The Company's industry: machinery manufacturing industry
Main business activities: Research & development of the bicycles, electric bicycles, electric motorcycles,
motorcycles, electric tricycles, electric four-wheelers, children's bicycles, exercise bikes, sports equipment,
mechanical products, toys, electric toys, electronic products, new energy equipment and storage equipment (lithium
batteries, batteries, etc.), household appliances and spare parts, and electronic components; wholesale, retail, import
and export and related supporting business of above-mentioned products (excluding commodities subject to state
trade management, handling the application according to the relevant national regulations for commodities
involving quotas, license management and other special provisions and management,); fine chemical products
(excluding dangerous goods), wholesale and retail of carbon fiber composite materials; technology development of
computer software, transfer of self-developed technological achievements, and providing relevant technical
information consultation; own property leasing; property management. (The above projects do not involve special
administrative measures for the implementation access of national regulations, and those involving restricted
projects and pre-existing administrative licenses must obtain the pre-existing administrative licensing documents
before operation.) Purchase and sale of gold products, platinum jewelry, palladium jewelry, K-gold jewelry, silver
jewelry, inlaid jewelry, jewelry, jade ware, gem-and-jade products, clocks and watches, precious metal materials,
diamonds, jadeite, crafts (except ivory and its products), calligraphy and painting, collection (except for antiques,
cultural relics, and items prohibited by national laws and administrative regulations).
Main products or services currently offered are: EMMELLE bicycles, electrical bicycles, lithium battery material
and gold jewelry.
3. Release of the financial report
The Financial Report was approved at the 37th Session of 10th BOD of the Company on April 22, 2022.
The Company has two subsidiaries and one sub-subsdiary included in the scope of consolidated financial
statement, refer to the Note VIII. Change of Consolidate Scope and Note IX. Equity in other entity.
IV. Compilation Basis of Financial Statement
1. Compilation Basis
The financial statement is prepared based on continuing operation assumptions, and according to actual
occurrence, in line with relevant accounting rules and follow important accounting policy and estimation.
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
2. Going concern
On 11 May 2012, the largest shareholder and biggest creditor of the Company, Shenzhen Guosheng Energy
Investment Development Co., Ltd. applied to Shenzhen Municipal Intermediate People's Court for reforming the
Company as the Company couldn’t pay off the matured debts and was seriously insolvent. On 12 October 2012,
Shenzhen Municipal Intermediate People's Court ruled to accept the application proposed by Guosheng Energy
according to (2012) Shenzhen Intermediate Court Po Zi No. 30 civil ruling. On the last ten-day of October 2012,
Shenzhen Municipal Intermediate People's Court ruled to reform the Company since 25 October 2012 according
to (2012) Shenzhen Intermediate Court Po Zi No. 30-1 civil ruling, appointed King & Wood (Shenzhen)
Mallesons and Shenzhen ZhengYuan Liquidation Affairs Co., Ltd. as the custodians of the Company. On the same
day, Shenzhen Municipal Intermediate People's Court made (2012) Shenzhen Intermediate Court Po Zi No. 30-1
written decision, and approved the Company to manage property and business affairs by itself under the
supervision of custodians according to the law. On 5 November 2013, the Shenzhen Intermediate People’s Court
(2012) Shen Zhong Fa Po Zi No. 30-6 Civil Ruling Paper judged that approved the reorganization plan of the
Company. On 27 December 2013, the Civil Ruling Paper Shenzhen Intermediate People’s Court (2012) Shen
Zhong Fa Po Zi No. 30-10 ruled that the reorganization plan of CBC was completed and bankruptcy procedures of
the Company closed down.
The Company has solved the debt problem by reforming, realized the net assets with positive value, the main
business of bicycle is able to be maintained and realizes the stable development. The Company has set up the
conditions for introducing the recombination party in the reforming plan, and expects to restore the abilities of
sustainable operation and sustained profitability by reorganization. The conditions of introducing the
recombination party includes: the assessed value of net assets should be no less than 2 billion Yuan, the net assets
in the same year for implementing the major reorganization should be no less than 200 million Yuan.
As of the date of the audit report, the company has not yet introduced a reorganizing party, and only maintained
the sustainable operation ability of Shenzhen China Bicycle Company by retaining the traditional business of
selling electric bicycles and developing and selling new businesses such as lithium batteries and jewelry gold
before the reorganizing party injects assets. Considering that the net profit attributable to the parent company in
2021 was -3,893,300 yuan, and the owner’s equity attributable to the parent company as of December 31, 2021
was 7,011,900 yuan, which indicated the existence of a material uncertainty that could cause significant doubt
about the sustainable operation ability of CBC.
V. Main accounting policy and Accounting Estimate
Tips for specific accounting policy and estimate:
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
1. Declaration on compliance with accounting standards for business enterprise
The financial statement prepared by the Company, based on follow compilation basis, is comply with the
requirement of new accounting standards for business enterprise issued by Ministry of Finance and its application
guide, commentate as well as other regulations (collectively referred to as Accounting Standards for Business
Enterprise), which is reflect a real and truth financial status of the Company, as well as operation results and cash
flow situations.
Furthermore, the statement has reference to the listing and disclosure requirement from “Rules Governing the
Disclosure of Information for Enterprise with Stock Listed No.15-general regulation of financial report” (2014
Revised) and “Notice on Implementation of New Accounting Standards for Listed Companies” (KJBH (2018) No.
453)
2. Accounting period
Calendar year is the accounting period for the Company, which is starting from 1 January to 31 December.
3. Business cycles
The business period for the Company, which is the Gregorian calendar starting from 1 January to 31 December
4. Book-keeping 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) Accounting treatment for business combinations under the same control and those not under the same control
For a business merger that is under the same control and is achieved by the Company through one single
transaction or multiple transactions, assets and liabilities obtained from that business combination shall be
measured at their book value at the combination date as recorded by the party being absorbed in the consolidated
financial statement of ultimate controlling party. Capital reserve shall be adjusted as per the difference between
the book value of obtained net assets and the book value of paid consolidated consideration (or the nominal value
of the issued shares) of the Company; retained earnings shall be adjusted if the capital reserve is not sufficient for
offset.
(2) Accounting treatment for Enterprise combine not under the same control
104
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
The Company will validate the difference that the combined cost is more than the fair value of the net identifiable
assets gained from the acquiree on the acquisition date as goodwill; where the combined cost is less than the fair
value of net identifiable assets gained from the acquiree during business combination, the fair value and combined
cost of various identifiable assets, liabilities and contingent liabilities from the acquiree must be rechecked. Where
the combined cost is, after the recheck, still less than the fair value of net identifiable assets gained from the
acquiree during business combination, the difference shall be charged to current profits and losses.
As for business combination not under common control and realized through multiple transactions and by steps,
the Company shall make accounting treatment as follows:
1) Adjust the initial investment cost of long-term equity investments. As for stock equities held before the
acquisition date accounted according to the equity method, re-measurement is carried out according to the fair
value of the equity on the acquisition date. The balance between the fair value and the book value is included in
the current investment income. If the acquiree’s stock equities held before the acquisition date involves changes of
other comprehensive incomes and other owner's equities under accounting with the equity method, the balance
between the fair value and the book value is included in the current investment income on the acquisition date,
excluding other comprehensive incomes incurred by changes due to re-measurement of net liabilities or net assets
of the defined benefit plan.
2) Confirm the goodwill (or include the amount in the profits and losses). The initial investment cost of long-term
equity investments adjusted in step 1 is compared with the fair value of net identifiable assets of the subsidiary
shared on the acquisition date. If the former is greater than the latter, the balance is confirmed as goodwill; if the
former is less than the latter, the balance is included in the current profits and losses.
Loss of control of a subsidiary in multiple transactions in which it disposes equity interests of its subsidiary in
stages
(1)In determining whether to account for the multiple transactions as a single transaction
A parent shall consider all the terms and conditions of the transactions and their economic effects. One or more of
the following may indicate that the parent should account for the multiple arrangements as a single transaction:
1) Arrangements are entered into at the same time or in contemplation of each other;
2) Arrangements work together to achieve an overall commercial effect;
3) The occurrence of one arrangement is dependent on the occurrence of at least one other arrangement;
4)One arrangement considered on its own is not economically justified, but it is economically justified when
considered together with other arrangements.
(2)Accounting treatment for each of the multiple transactions forming part of a bundled transactions which
eventually results in loss of control the subsidiary during disposal of its subsidiary in stages
If each of the multiple transactions forms part of a bundled transactions which eventually results in loss of control
the subsidiary, these multiple transactions should be accounted for as a single transaction. In the consolidated
105
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
financial statements, the difference between the consideration received and the corresponding percentage of the
subsidiary’s net assets in each transaction prior to the loss of control shall be recognized in other comprehensive
income and transferred to the profit or loss when the parent eventually loses control of the subsidiary.
The remaining equity investment shall be re-measured at its fair value in the consolidated financial statements at
the date when control is lost. The difference between the total amount of consideration received from the
transaction that resulted in the loss of control and the fair value of the remaining equity investment and the share
of net assets of the former subsidiary calculated continuously from the acquisition date or combination date based
on the previous shareholding proportion, shall be recognized as investment income for the current period when
control is lost. The amount previously recognized in other comprehensive income in relation to the former
subsidiary’s equity investment should be transferred to investment income for the current period when control is
lost
(3)Accounting treatment for each of the multiple transactions NOT forming part of a bundled transactions which
eventually results in loss of control the subsidiary during disposal of its subsidiary in stages
If the Company doesn't lose control of investee, the difference between the amount of the consideration received
and the corresponding portion of net assets of the subsidiary shall be adjusted to the capital reserve (capital /equity
premium) in the consolidated financial statements.
If the Company loses control of investee, the remaining equity investment shall be re-measured at its fair value in
the consolidated financial statements at the date when control is lost. The difference between the total amount of
consideration received from the transaction that resulted in the loss of control and the fair value of the remaining
equity investment and the share of net assets of the former subsidiary calculated continuously from the acquisition
date or combination date based on the previous shareholding percentage, shall be recognized as investment
income for the current period when control is lost. The amount previously recognized in other comprehensive
income in relation to the former subsidiary’s equity investment should be transferred to investment income for the
current period when control is lost.
6. Compilation method of consolidated financial statement
Consolidated financial statements are prepared by the Company in accordance with Accounting Standard for
Business Enterprise No. 33-Consolidated Financial Statements and based on financial statements of parent
company and its subsidiaries and other related information.
When consolidating the financial statements, the following items are eliminated: internal equity investment and
owners’ equity of subsidiaries, proceeds on internal investments and profit distribution of subsidiaries, internal
transactions, internal debts and claim. The accounting policies adopted by subsidiaries are the same as parent
company.
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7. Classification of joint venture arrangement and accounting treatment for joint control
(1) Affirmation and classification of joint venture arrangement
Joint arrangement refers to an arrangement controlled by two or more than two participants. Joint venture
arrangement has the following characteristics: 1) Each participant is bound by the arrangement; 2) Two or more
participants carry out joint control on implementation of the arrangement. Any participant cannot control the
arrangement independently. Any participant for joint control can stop other participants or participant
combinations to independently control the arrangement.
Joint control refers to the sharing of control over certain arrangement under related agreements, and related
activities of the arrangement must be determined only when obtaining the unanimous consent of the parties
sharing control.
Joint venture arrangement is classified in to joint operation and joint venture. Joint operation refers to an
arrangement that a joint party enjoys assets related to the arrangement and bears liabilities related to the
arrangement. Joint venture refers to an arrangement that a joint party only has the power governing net assets of
the arrangement.
(2) Accounting treatment of joint venture arrangement
Joint venture participants should confirm the following items related to interest shares in joint venture and carry
out accounting settlement according to relevant provisions of the Accounting Standards for Business Enterprises:
1) confirm the assets held separately and confirm the assets held jointly based on shares; 2) confirm the liabilities
borne separately and confirm the liabilities borne jointly based on shares; 3) confirm the income incurred after
selling its shares in joint venture output; 4) confirm the income after selling the joint venture outputs based on
shares; 5) confirm the expenses incurred separately and confirm the expenses incurred in joint venture based on
shares.
Joint venture participants should carry out accounting settlement for investments of the joint venture according to
provisions of Accounting Standards for Business Enterprises No.2–Long-term Equity Investments.
8. Recognition of cash and cash equivalents
Cash in cash flow statement means the inventory cash and savings available for use anytime. Cash equivalents
refer to the short-term (generally due within three months since the date of purchase) highly liquid investments
that are readily convertible into known amounts of cash and that are subject to an insignificant risk of change in
value.
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
9. Foreign currency transaction and financial statement conversion
(1)Conversion for foreign currency transaction
When initially recognized, the foreign currency for the transaction shall be converted into CNY amount according
to the spot exchange rate on the date of transaction. For the foreign currency monetary items, conversion must be
based on the spot exchange rate on the balance sheet date and the exchange difference incurred from different
exchange rates, except for the exchange difference of principal and interest incurred due to foreign currency loan
related to acquisition or construction of assets that qualify for capitalization, shall be charged to current profits and
losses; foreign currency non-monetary items measured with historical cost are still converted as per the spot
exchange rate on the transaction date and keep the RMB amount unchanged; foreign currency non-monetary items
measured with fair value shall be converted as per the spot exchange rate on the date of determining the fair value
and the difference shall be charged to current profits and losses or other comprehensive income.
(2)Conversion of financial statements presented in foreign currencies
The asset and liability items in the balance sheet shall be converted at the spot exchange rate on the balance sheet
date; the owner’s equity items, except for the items of “undistributed profit”, shall be converted at the spot
exchange rate on the transaction date; the income and expenditure items in the profit statement shall be converted
at the spot exchange rate on the transaction date. The translation difference of foreign financial statements
conducted as above is recognized as other comprehensive incomes.
10. Financial instruments
(1) Recognition and termination for financial instrument
Financial assets or financial liabilities are recognized when the Group becomes a party to the contractual
provisions of the instrument.
When buying and selling financial assets in a conventional manner, recognize and derecognize them according to
the accounting of the trading day. Buying and selling financial assets in a conventional manner refers to the
collection or delivery of financial assets in accordance with the contract terms and within the period prescribed by
regulations or prevailing practices. Trading day refers to the date when the Company promises to buy or sell
financial assets.
When meeting the following conditions, derecognize a financial asset (or part of a financial asset, or part of a
group of similar financial assets), i.e. to write off from its account and balance sheet:
1) The right to receive cash flows from financial assets expires;
2) The right to receive cash flows of financial assets is transferred, or assume the obligation to pay the full amount
of cash flows received to a third party in a timely manner under the “handover agreement”; and (a) virtually
transferred almost all risks and rewards of the ownership of financial assets, or (b) although virtually neither
transferred nor retained almost all risks and rewards of the ownership of financial assets, abandoned the control of
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the financial assets.
(2) Classification and measurement of financial assets
The Company’s financial assets are classified as financial assets measured at amortized cost, financial assets
measured at fair value and whose changes are included in other comprehensive income, and financial assets
measured at fair value and whose changes are included in the current profit and loss according to the Company’s
business model for managing financial assets and the contractual cash flow characteristics of financial assets at
initial recognition. The subsequent measurement of financial assets depends on their classification.
The Company’s classification of financial assets is based on the Company’s business model for managing
financial assets and the cash flow characteristics of financial assets.
1) Financial assets measured at amortized cost
Financial assets that meet the following conditions at the same time are classified as financial assets measured at
amortized cost: the Company’s business model for managing this financial asset is to collect contractual cash
flows; the contract terms of the financial asset stipulate that the cash flow generated on a specific date is only the
payment of principal and interest based on the outstanding principal amount. For such financial assets, the actual
interest rate method is used for subsequent measurement based on amortized cost, and the gains or losses arising
from amortization or impairment are included in the current profit and loss.
2) Debt instrument investments measured at fair value and whose changes are included in other comprehensive
income
Financial assets that meet the following conditions at the same time are classified as financial assets measured at
fair value and whose changes are included in other comprehensive income: the Company’s business model for
managing this financial asset is to both collect contractual cash flows and sell the financial assets; the contract
terms of the financial asset stipulate that the cash flow generated on a specific date is only for the payment of
principal and interest based on the outstanding principal amount. For such financial assets, fair value is used for
subsequent measurement. The discount or premium is amortized by using the actual interest method and is
recognized as interest income or expenses. Except that the impairment loss and the exchange difference of foreign
currency monetary financial assets are recognized as current gains and losses, changes in the fair value of such
financial assets are recognized as other comprehensive income, until the financial asset is derecognized, its
cumulative gains or losses are transferred to the current profit and loss. Interest income related to such financial
assets is included in the current profit and loss.
3) Equity instrument investments measured at fair value and whose changes are included in other comprehensive
income
The Company irrevocably chooses to designate some non-trading equity instrument investments as financial
assets measured at fair value and whose changes are included in other comprehensive income. Only relevant
dividend income is included in the current profit and loss, and changes in fair value are recognized as other
comprehensive income, until the financial asset is derecognized, its accumulated gains or losses are transferred to
retained earnings.
4) Financial assets measured at fair value and whose changes are included in the current profit and loss
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Financial assets except for above financial assets measured at amortized cost and financial assets measured at fair
value and whose changes are included in other comprehensive income are classified as financial assets measured
at fair value and whose changes are included in the current profit and loss. During initial recognition, in order to
eliminate or significantly reduce accounting mismatches, financial assets can be designated as financial assets
measured at fair value and whose changes included in the current profit and loss. For such financial assets, fair
value is used for subsequent measurement, and all changes in fair value are included in the current profit and loss.
When and only when the Company changes its business model for managing financial assets, it will reclassify all
affected related financial assets.
For financial assets measured at fair value and whose changes are included in the current profit or loss, the related
transaction costs are directly included in the current profit and loss, and the related transaction costs of other types
of financial assets are included in the initial recognition amount.
(3) Classification and measurement of financial liabilities
The Company’s financial liabilities are classified as financial liabilities measured at amortized cost and financial
liabilities measured at fair value and whose changes are included in the current profit and loss at initial
recognition.
Financial liabilities that meet one of the following conditions can be designated as financial liabilities measured at
fair value and whose changes are included in current profit or loss during initial measurement: (1) This
designation can eliminate or significantly reduce accounting mismatches; (2) According to the group risk
management or investment strategies stated in official written documents, management and performance
evaluation of financial liability portfolios or financial assets and financial liability portfolios are conducted based
on fair value, and are reported to key management personnel within the group on this basis; (3) The financial
liability includes embedded derivatives that need to be split separately.
The Company determines the classification of financial liabilities at initial recognition. For financial liabilities that
are measured at fair value and whose changes are included in the current profit or loss, the related transaction
costs are directly included in the current profit and loss, and the related transaction costs of other financial
liabilities are included in its initial recognition amount.
The subsequent measurement of financial liabilities depends on their classification:
1) Financial liabilities measured at amortized cost
For such financial liabilities, adopt actual interest rate method and make subsequent measurements based on
amortized costs.
2) Financial liabilities measured at fair value and whose changes are included in the current profit and loss
Financial liabilities that are measured at fair value and whose changes are included in the current profit or loss
include trading financial liabilities (including derivatives that are financial liabilities) and financial liabilities
designated to be measured at fair value at the initial recognition and whose changes are included in the current
profit or loss.
(4) Financial instruments offset
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If the following conditions are met at the same time, the financial assets and financial liabilities are listed in the
balance sheet with the net amount after mutual offset: legal right to offset the confirmed amount, and this legal
right is currently executable; Net settlement, or simultaneous realization of the financial assets and liquidation of
the financial liabilities.
(5) Impairment of financial assets
The Company recognizes the loss provisions on the basis of expected credit losses for financial assets measured at
amortized cost, debt instrument investments measured at fair value and whose changes are included in other
comprehensive income and financial guarantee contracts. Credit loss refers to the difference between all
contractual cash flows receivable under the contract and discounted according to original actual interest rate by
the Company and all expected receivable cash flows, that is, the present value of all cash shortages.
The Company considers all reasonable and evidence-based information, including forward-looking information,
and estimates the expected credit loss of financial assets measured at amortized cost and financial assets measured
at fair value and whose changes are included in other comprehensive income (debt instruments) in a single or
combined manner.
1) General model of expected credit loss
If the credit risk of the financial instrument has increased significantly since the initial recognition, the Company
measures its loss provisions in accordance with the amount equivalent to the expected credit loss of the financial
instrument for the entire duration; if the credit risk of the financial instrument has not significantly increased since
the initial recognition, the Company measures its loss provisions in accordance with the amount equivalent to the
expected credit loss of the financial instrument in the next 12 months. The resulting increased or reversed amount
of the loss provisions is included in the current profit and loss as an impairment loss or gain. For the Company’s
specific assessment of credit risk, please see details in Note IX. Risks Related to Financial Instruments”.
Generally, the Company believes that the credit risk of the financial instrument has significantly increased when it
exceeds 30 days after the due date, unless there is concrete evidence that the credit risk of the financial instrument
has not increased significantly since initial recognition.
Specifically, the Company divides the process of credit impairment of financial instruments of which no credit
impairment has occurred at the time of purchase or origin into three stages. There are different accounting
treatment methods for the impairment of financial instruments at different stages:
Stage one: Credit risk has not increased significantly since initial recognition
For a financial instrument at this stage, the enterprise should measure the loss provisions according to the
expected credit losses in the next 12 months, and calculate the interest income based on its book balance (that is,
without deducting provisions for impairment) and the actual interest rate (if the instrument is a financial asset, the
same below).
Stage two: Credit risk has increased significantly since initial recognition but no credit impairment has occurred
For a financial instrument at this stage, the enterprise should measure the loss provisions according to the
expected credit loss of the instrument for its entire duration, and calculate the interest income based on its book
balance and actual interest rate.
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Stage three: Credit impairment occurs after initial recognition
For a financial instrument at this stage, the enterprise should measure the loss provisions based on the expected
credit losses of the instrument for its entire duration, but the calculation of interest income is different from the
financial assets at the previous two stages. For financial assets that have suffered credit impairment, the enterprise
should calculate interest income based on its amortized cost (book balance minus the provisions for impairment,
i.e., book value) and the actual interest rate.
For financial assets that have suffered credit impairment at the time of purchase or origin, the enterprise should
only recognize changes in expected credit losses for the entire duration after initial recognition as loss provisions,
and calculate the interest income based on its amortized cost and credit-adjusted actual interest rate.
2) The Company chooses not to compare the financial instrument with lower credit risk on the balance sheet date
with its credit risk at initial recognition, but directly makes the assumption that the credit risk of the instrument
has not increased significantly since the initial recognition.
If the enterprise confirms that the default risk of financial instruments is low, the borrower has a strong ability to
fulfill its contractual cash flow obligations in the short term, and even if there are adverse changes in the economic
situation and operating environment in a longer period of time, it will not necessarily reduce the borrower’s ability
to fulfill its contractual cash flow obligations, then the financial instrument can be considered to have lower credit
risk.
3) Accounts receivable and lease receivables
The Company adopts the simplified model of expected credit loss for accounts receivables specified in
“Accounting Standards for Business Enterprises No.14 - Revenue” and without containing significant financing
components (including the case that the financing components in contracts that do not exceed one year are not
considered according to the standards), that is, always measures their loss provisions according to the amount of
expected credit loss during the entire duration.
The Company makes accounting policy choices for the receivables containing significant financing components
and the lease receivables specified in “Accounting Standards for Business Enterprises No.21 - Leases”, and
chooses to adopt the simplified model of expected credit losses, that is, to measure the loss provisions in
accordance with the amount of expected credit losses throughout the entire duration.
(6) Transfer of financial assets
Where the Company has transferred almost all the risks and rewards in the ownership of the financial asset to the
transferee, the recognition of the financial assets shall be terminated; where almost all risks and rewards in the
ownership of a financial asset are retained, the recognition of the financial assets are not terminated.
If the Group neither transfers nor retains substantially all the risks and rewards of ownership of a financial asset, it
shall be accounted for as follows: the financial asset should be terminated if the Group waives control over the
asset; it recognizes the financial asset to the extent of its continuing involvement in the transferred financial asset
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and recognizes an associated liability if the Group does not waives control over the asset.
If the transferred financial assets continue to be involved by providing financial guarantee, the assets continue to
be involved shall be recognized according to the lower of the book value of the financial assets and the amount of
financial guarantee. The financial guarantee amount means the maximum amount of consideration received which
will be required to be repaid.
The Company shall comply with the disclosure requirement of jewelry-related industries in the “Shenzhen Stock Exchange
Self-Regulatory Guidelines for Listed Companies No. 3- Industry Disclosure”
Nil
11.Note receivable
The Group adopts the simplified model of expected credit loss for the accounts receivables specified in
“Accounting Standards for Business Enterprises No.14 - Revenue” and without containing significant financing
components (including the case that the financing components in contracts that do not exceed one year are not
considered according to the standards), that is, always measures their loss provisions according to the amount of
expected credit loss during the entire duration, and the resulting increased or reversed amount of the loss provision
is included in the current profit and loss as an impairment loss or gain. The accrual method is as follows:
The Company divides the bills receivable into two types, i.e. bank acceptance bills and commercial acceptance
bills portfolios, according to the type of financial instruments. For bank acceptance bills, the accepting bank pays
the determined amount to the taker or the bearer unconditionally due to the maturity of the bills, the overdue credit
loss is low and has not increased significantly since the initial confirmation, the Company believes that the risk of
overdue default is 0; for commercial acceptance bills, the Company believes that the probability of default is
related to the aging, we use a simplified model of expected credit losses, that is the allowance for losses is always
measured at the amount of expected credit losses over the entire duration period. Proportion for accrual found
more in the 12. accounting policy and estimate for account receivable in V.
12. Account receivable
The Company adopts the simplified model of expected credit loss for accounts receivables specified in
“Accounting Standards for Business Enterprises No.14 - Revenue” and without containing significant financing
components (including the case that the financing components in contracts that do not exceed one year are not
considered according to the standards), that is, always measures their loss provisions according to the amount of
expected credit loss during the entire duration, and the resulting increased or reversed amount of the loss provision
is included in the current profit and loss as an impairment loss or gain.
For accounts receivable that contain a significant financing component, the Company chooses to use the
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simplified model of expected credit losses, that is, to always measure its loss provisions according to the amount
of expected credit losses during the entire duration.
1. Simplified model of expected credit losses: always measure the loss provisions according to the amount of
expected credit losses during the entire duration
The Company considers all reasonable and well-founded information, including estimates of expected credit
losses on accounts receivable in a single or combined manner.
(1) Account receivable with single significant amount and withdrawal single item bad debt provision
Basis or amount of judgment for account with single significant Withdrawal method for bad debt provision of account
amount receivable with single significant amount
Receivable commercial acceptance bill, account receivable and Carry out impairment test separately, and withdraw bad debt
other receivables with single amount more than 5 million yuan provision according to the difference between the present value
(including) of future cash flow and its book value
(2)Receivables with provision for bad debts by portfolio
Portfolio determine basis
On the basis of the actual loss rate of the portfolio of receivables
with similar credit risk characteristics which are the same or
similar in the previous year, for the single amount of
Age analysis
non-material receivables, it is divided into several portfolios
according to the credit risk characteristics together with the
receivables without impairment after the separate test
Other Bank acceptance
In the combination, the proportion of bad debt provision withdrawn by aging analysis method is as follow:
Accrual proportion of commercial Withdrawing proportion Withdrawing proportion of
Account age
acceptance bill receivable of the account receivable other receivable
Within one year(one year included) 0.3% 0.3% 0.3%
1～2 years (2-year included) 100% 0.3% 0.3%
2～3 years (3-year included) 100% 0.3% 0.3%
Over 3 years 100% 100% 100%
Including: determined to be Write off Write off Write off
un-collectible
(3) Account receivable with significant single amount and single provision for bad debts
Basis or amount of judgment for account with single minor Withdrawal method for bad debt provision of account
amount receivable with single minor amount
Receivable commercial acceptance bill, account receivable and Carry out impairment test separately, and withdraw bad debt
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other receivables with single amount less than 5 million yuan provision according to the difference between the present value
(including), and the probability of recall is small by nature of future cash flow and its book value
2. A general model of expected credit loss
Found more in the treatment in【Note V-10. Financial assets】
13. Receivable financing
Financial assets that meet the following conditions at the same time are classified as financial assets measured at
fair value and whose changes are included in other comprehensive income: the Company’s business model for
managing this financial asset is to both collect contractual cash flows and sell the financial assets; the contract
terms of the financial asset stipulate that the cash flow generated on a specific date is only for the payment of
principal and interest based on the outstanding principal amount.
The Company transfers the receivables held by discounting or endorsement, and such operations are more
frequent with large amount involved. The management business models is essentially both the collection of
contractual cash flows and the sales; in accordance with the relevant provision of financial instrument standards,
classified them into the financial assets measured at fair value and with its variation reckoned into other
comprehensive income.
14.Other account receivable
Determination method and accounting treatment of the expected credit loss of other account receivable
(1) Account receivable with single significant amount and withdrawal single item bad debt provision:
Account with single significant amount: the single receivable has over 5 million yuan at end of the period
At the end of the period, the receivables with significant single amount are tested separately for impairment. If
there is objective evidence that they have been impaired, the impairment loss will be recognized and the provision
for bad debts will be made based on the balance between the present value of future cash flows and its book value.
(2)Account receivable with bad debt provision accrual by portfolio
For the receivables with non significant single amount at the end of the period, they are divided into several
combinations together with the receivables without impairment after independent test according to the account age
as the credit risk feature. The impairment loss is calculated and determined according to a certain proportion of
the ending balance of these receivables combinations (impairment test can be conducted separately), and the bad
debt provision is withdrawn.
In addition to the receivables for which impairment provision has been separately made, the company determines
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the following proportion of provision for bad debts based on the actual loss rate of the combination of receivables
with account age as credit risk characteristics in the previous year, which is the same or similar to the receivables,
in combination with the current situation:
(2) Age analysis
Accrual proportion of account Accrual proportion of other account
Account age
receivable receivable
Within one year(one year included) 0.3% 0.3%
1～2 years (2-year included) 0.3% 0.3%
2～3 years (3-year included) 0.3% 0.3%
Over 3 years 100% 100%
Including: determined to be un-collectible Write off Write off
Note: no provision is made for bad debt for inter-company receivables and other receivables with the scope of consolidation.
(3) Account receivable with minor single amount but single provision for bad debts
Reasons for provision of bad debt reserve on single base: The Company conducts impairment test separately for
receivables that are not significant in single amount but have the following characteristics, if there is objective
evidence that they have been impaired, the impairment loss will be recognized and the provision for bad debts will
be made based on the balance between the present value of future cash flows and its book value; receivables that
are in dispute with the other party or involving litigation or arbitration; there are clear signs indicating that the
debtor is likely to be unable to fulfill the repayment obligations of the receivables.
Provision method of bad debt reserve: If the impairment test is carried out separately and there is objective
evidence that it has been impaired, the impairment loss will be recognized and the provision for bad debts will be
made based on the balance between the present value of future cash flows and its book value.
15. Inventory
The Company shall comply with the disclosure requirement of jewelry-related industries in the “Shenzhen Stock Exchange
Self-Regulatory Guidelines for Listed Companies No. 3- Industry Disclosure”
(1) Classification of inventory
The inventory of the Company refers to such seven classifications as the raw materials, product in process, goods
on hand, wrap page, low value consumables, materials for consigned processing and goods sold.
(2) Valuation of inventories
Inventories are initially measured at cost upon acquisition, which includes procurement costs, processing costs
and other costs. The prices of inventories are calculated using weighted average method when they are delivered.
(3) Provision for inventory impairment
When a comprehensive count of inventories is done at the end of the period, provision for inventory impairment is
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allocated or adjusted using the lower of the cost of inventory and the net realizable value. The net realizable value
of stock in inventory (including finished products, inventory merchandize and materials for sale) that can be sold
directly is determined using the estimated saleable price of such inventory deducted by the cost of sales and
relevant taxation over the course of ordinary production and operation. The net realizable value of material in
inventory that requires processing is determined using the estimated saleable price of the finished product
deducted by the cost to completion, estimated cost of sales and relevant taxation over the course of ordinary
production and operation. The net realizable value of inventory held for performance of sales contract or labor
service contract is determined based on the contractual price; in case the amount of inventory held exceeds the
contractual amount, the net realizable value of the excess portion of inventory is calculated using the normal
saleable price.
Provision for impairment is made according to individual items of inventories at the end of the period; however,
for inventories with large quantity and low unit price, the provision is made by categories; inventories of products
that are produced and sold in the same region or with the same or similar purpose or usage and are difficult to be
measured separately are combined for provision for impairment.
If the factors causing a previous write-off of inventory value has disappeared, the amount written-off is reversed
and the amount provided for inventory impairment is reversed and recognized in profit or loss for the period.
(4)Inventory system
Perpetual inventory system is adopted.
16.Contract assets
1. Confirmation method and standard of contract assets
The Company lists contractual assets or contractual liabilities in the balance sheet based on the relationship
between performance obligations and customer payments. The Company's right to receive consideration for
goods or services transferred to the customer (And that right depends on factors other than the passage of time) is
listed as contractual assets. Contractual assets and contractual liabilities under the same contract are listed as a net
amount. The Company's right to receive consideration from customers unconditionally (only depends on the
passage of time) is listed separately as a receivable.
2. Determination and accounting treatment of the expected credit loss for contract assets
Determination and accounting treatment of the expected credit loss for contract assets found more in Note V-“10.
Financial assets”
Nil
17.Contract cost
Nil
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18. Assets held for sale
The Company classifies such corporate components (or non-current assets) that meet the following criteria as
held-for-sale: (1) Disposable immediately under current conditions based on similar transactions for disposals of
such assets or practices for the disposal group; (2) Probable disposal; that is, a decision has been made on a plan
for disposal and an undertaking to purchase has been obtained (the undertaking to purchase means a binding
purchase agreement entered into by the Company and other parties, which contains transaction price, time and
adequately strict punishments for breach of contract provisions, which renders the possibility of material
adjustment or revocation of the agreement is extremely minor), and the disposal is expected to be completed
within a year. Besides, approval from relevant competent authorities or regulatory authorities has been obtained as
required by relevant rules.
The expected net residual value of asset held for sale is adjusted by the Company to reflect its fair value less
selling expense, provided that the net amount shall not exceed the original carrying value of the asset. In case that
the original value is higher than the adjusted expected net residual value, the difference shall be recorded in profit
or loss for the period as asset impairment loss, and allowance of impairment for the asset shall be provided.
Impairment loss recognized in respect of the disposal group held for sale shall be used to offset the carrying value
of the goodwill in the disposal group, and then offset the carrying value of the non-current assets within the
disposal group based on their respective proportion of their carrying value.
In respect of the non-current assets held for sale, if the net amount after their fair value less the selling expenses
increased as at the subsequent balance date, the reduced amount before will be recovered and reversed in the
assets impairment loss amount recognized after being classified as held for sale, and the reversed amount will be
recorded in the current profits or loss. The impairment loss on assets recognized before being classified as held for
sale will not be reversed. In respect of the disposal group held for sale, if the net amount after their fair value less
the selling expenses increased as at the subsequent balance date, the reduced amount before will be recovered and
reversed in the assets impairment loss amount recognized in non-current assets after being classified as held for
sale, and the reversed amount will be recorded in the current profits or loss. The reduced book value of the
goodwill as well as the impairment loss on assets recognized before the non-current assets are classified as held
for sale will not be reversed. The subsequent reversed amount in respect of the impairment loss on assets
recognized in the disposal group held for sale will increase the book value in proportion of the book value of each
non-current assets (other than goodwill) in the disposal group.
In respect of loss of control in a subsidiary arising from disposal of the investment in such subsidiary, the
investment in a subsidiary shall be classified as held for sale in its entirety in the individual financial statement of
the parent company, and all the assets and liabilities of the subsidiary shall be classified as held for sale in the
consolidated financial statement subject to that the proposed disposal of investment in the subsidiary satisfies such
conditions as required for being classified as held for sale notwithstanding part equity investment will be retained
by the Company after such disposal.
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19.Debt investment
Nil
20.Other debt investment
Nil
21.Long-term account receivable
Nil
22. Long-term equity investment
(1)Determination of investment costs
1) If it is formed by the business combination under the common control, and that the combining party takes cash
payment, transfer of non-cash assets, assumption of debts or issuance of equity securities as the consolidation
consideration, the shares of the book value of the owner’s equity obtained from the combined party on the date of
combination in the ultimate controlling party’s consolidated financial statements shall be recognized as its initial
investment cost. Capital reserves shall be adjusted according to the balance between the initial investment cost for
long-term equity investment and the book value of paid consolidation consideration or the total face value of
issued shares (capital premium or equity premium). If capital reserves are insufficient for offset, retained earnings
shall be adjusted.
As for business combination under the common control realized by the Company through several transactions, the
initial investment cost of the investment shall be determined based on the share of the carrying value of the
owners’ equity of the consolidated party as calculated according to the shareholding proportion on the
consolidation date. Difference between initial investment cost and the carrying value of long-term equity
investment before combination and the sum of carrying value of newly paid consideration for additional shares
acquired on the date of combination is to adjust capital reserve (capital premium or equity premium). If the
balance of capital reserve is insufficient, any excess is adjusted to retained earnings.
2) As for long-term equity investment formed from business combination not under common control, the fair
value of the consolidated consideration paid shall be deemed as the initial investment cost on the acquisition date.
3) Except those ones formed by the business combination, for all items obtained by means of cash payment,
actually paid acquisition costs shall be taken as the initial investment cost. For those ones obtained by the issuance
of equity securities, the fair value of the issued equity securities shall be taken as the initial investment cost. For
those ones invested by investors, the value agreed in the investment contract or agreement shall be taken as the
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initial investment cost, provided that the value agreed in the contract or agreement shall be fair.
(2)Subsequent measurement and profit or loss recognition
For a long-term equity investment where the Company can exercise control over the investee, the long-term
investment is accounted for using the cost method in the Company’s financial statements. The equity method is
adopted when the Group has joint control, or exercises significant influence on the investee.
Under cost method, long term equity investment is measured at initial investment cost. Except for the price
actually paid for obtaining the investment or the cash dividends or profits declared but not yet distributed which is
included in the consideration, the Company recognizes cash dividends or profits declared by the investee as
current investment gains, and determine whether there is impairment on long term investment according to
relevant assets impairment policies.
Under equity method, when the initial investment cost of the long-term equity investment exceeds the share of fair
value in the net identifiable assets in the investee, the difference shall be included in initial investment cost of the
long-term equity investment. When the initial investment cost is lower than the share of fair value in the net
identifiable asset in the investee, such difference is recognized in profit or loss for the period with adjustment of
cost of the long-term equity investment.
Under equity method, after the Company acquires a long-term equity investment, it shall, in accordance with its
attributable share of the net profit or loss realized by the investee, recognize the investment profit or loss and
adjust carrying value of the investment. The Group recognizes its share of the investee’s net profits or losses after
making appropriate adjustments to the investee’s net profits and losses based on the fair value of the investee’s
identifiable assets at the acquisition date, using the Group’s accounting policies and periods, and eliminating the
portion of the profits or losses arising from internal transactions with its joint ventures and associates, attributable
to the investing entity according to its shareholding proportion (but impairment losses for assets arising from
internal transactions shall be recognized in full). The carrying amount of the investment is reduced based on the
Group’s share of any profit distributions or cash dividends declared by the investee. The Group’s share of net
losses of the investee is recognized to the extent the carrying amount of the investment together with any
long-term interests that in substance form part of its net investment in the investee is reduced to zero, except that
the Group has the obligations to assume additional losses. The Group adjusts the carrying amount of the long-term
equity investment for any changes in owners’ equity of the investee (other than net profits or losses) and includes
the corresponding adjustments in the owners’ equity of the Group.
(3) Determination of control and significant influence on investee
Control is the power over an investee. An investor must have exposure or rights to variable returns from its
involvement with the investee, and the ability to use its power over the investee to affect the amount of the
investor’s returns. Significant influence is the power to participate in the financial and operating policy decisions
of the investee but is not control or joint control with other parties over those policies
(4)Disposal of long-term equity investment
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1) Partial disposal of long term investment in which control is retained
When long term investment is been partially disposed but control is retained by the company, the difference
between disposal proceeds and carrying amount of the proportion being disposed is accounted for through profit
or loss.
2) Partial disposal of long term investment in which control is lost
When long term investment is partially disposed and control is lost as a result, the carrying value of the long term
invest on the stock right, the difference between carrying amount of the part being disposed and disposal proceeds
should be recognized as profit or loss. The residual part should be treated as long term investment or other
financial assets according to their carrying amount. After partial disposal, if the company is able to exert
significant influence or common control over the investee, the investment should be measured according to cost
method or equity method, in compliance with relevant accounting standards and regulations.
(5)Impairment test and provision for impairment
If there is objective evidence on the balance sheet date showing investment in subsidiaries, associates and joint
ventures is impaired, provision of impairment shall be made against the difference between the carrying amount
and the recoverable amount of the investment.
23. Investment real estate
Measurement mode
Measured by cost method
Depreciation or amortization method
(1) Investment property including land use right which has been rented out, land use right which is held for
transfer upon appreciation and buildings which has been rented out.
(2) Investment properties are initially measured at cost and subsequently measured as per the cost pattern, and
relevant withdrawal of provision for depreciation or amortization is carried out by the same method for fixed
assets and intangible assets. As of the balance sheet date, where there is any indication that an investment property
experiences impairment, the relevant impairment provision shall be provided for based on the difference between
the carrying value and the recoverable amount.
24. Fixed assets
(1) Recognition conditions
Fixed assets refer to the tangible assets for production of products, provision of labor, lease or operation, and with
a service life in excess of one financial year. Fixed assets are recorded at the actual cost at the time of acquisition,
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and depreciation is calculated and withdrawn using the average life method from the month after they reach the
intended usable state
(2) Depreciation methods
Category Method Years of depreciation Scrap value rate Yearly depreciation rate
Housing buildings Straight-line depreciation 20 years 10% 4.5%
Machinery equipment Straight-line depreciation 10 years 10% 9%
Means of transportation Straight-line depreciation 5 years 10% 18%
Electronic equipment and
Straight-line depreciation 5 years 10% 18%
others
Nil
(3) Recognition basis, valuation and depreciation method for financial lease assets
Finance lease is determined when one or a combination of the following conditions are satisfied: (1) the
ownership has been transferred to the lessee when the leasing term is due; (2) the lessee has the option to purchase
the leasing asset at a price that is much lower than its fair value, so it can be reasonably determined that the lessee
will take the option at the very beginning of the lease; (3) the leasing term accounts for most time of the useful life
(ordinarily accounting for 75% or higher) even if the ownership does not transfer to the lessee; (4) the present
value of the minimum amount of rent that the lessee has to pay at the first day of the lease amounts to 90% or
higher of its fair value at the same date; or the present value of the minimum amount of rent that the lessor collects
at the first day of the lease amounts to 90% or higher of its fair value at the same date; and/or (5) the leased assets
are of such a specialized nature that only the lessee can use them without major modifications.
Fixed assets rented-in under finance lease are recorded at the lower of fair value and the present value of the
minimum lease payment at the inception of the lease, and are depreciated following the depreciation policy for
self-owned fixed assets.
25. Construction in progress
(1)When the construction in progress has reached the intended condition for use, it will be treated as fixed assets
as per the actual construction cost. If the construction in progress has reached the intended condition for use but
completion accounting is not carried out, the construction in progress should be first treated as fixed assets as per
the estimated value. After completion accounting is carried out, the original estimated value should be adjusted as
per the actual cost, but the provision for depreciation withdrawn should not be adjusted.
(2)As of the balance sheet date, where there is any indication that a construction in process experiences
impairment, the relevant impairment provision shall be provided for based on the difference between the carrying
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value and the recoverable amount.
26. Borrowing expenses
Nil
27.Biological assets
Nil
28. Oil and gas asset
Nil
29.Right-of-use asset
On the commencement date of the lease term, the Group recognizes right-of-use assets and lease liabilities for
leases, except for short-term leases and leases of low-value assets that are simplified by the standard.
The Group initially measures right-of-use assets at cost. This cost includes:
1. The initial measurement amount of the lease liability;
2. The lease payment amount paid on or before the commencement date of the lease term, if there is a lease
incentive, deduct the relevant amount of the lease incentive already enjoyed;
3. Initial direct costs incurred;
4. The expected cost of demolishing and removing the leased asset, restoring the site where the leased asset is
located or restoring the leased asset to the condition as agreed in the lease terms. If the aforementioned cost is
incurred for the production of inventories, and the Accounting Standards for Business Enterprises No. 1 -
Inventories shall apply.
The Group recognizes and measures the cost mentioned in Item 4 above in accordance with Accounting Standards
for Business Enterprises No. 13 - Contingencies.
Initial direct costs are the incremental cost incurred to achieve the lease. Incremental cost is the cost that would
not have incurred if the enterprise had not acquired the lease.
With reference to the relevant depreciation provisions of Accounting Standards for Business Enterprises No. 4 -
Fixed Assets, the Group accrues depreciation for right-of-use assets. Where it can be reasonably determined that
the ownership of the leased asset will be obtained at the expiration of the lease term, depreciation shall be accrued
within the remaining service life of the leased asset. Where it cannot be reasonably determined that the ownership
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of the leased asset can be obtained at the expiration of the lease term, depreciation shall be accrued within the the
shorter of the lease term and the remaining service life of the leased asset.
In accordance with the Accounting Standards for Business Enterprises No. 8 - Impairment of Assets, the Group
determines whether the right-of-use asset is impaired, and performs accounting treatment on the identified
impairment losses.
30. Intangible assets
(1) Valuation method, service life and impairment test
1.Intangible assets include land use right, patent right and non-patent technology, which should be initially
measured at cost.
2.Intangible assets with limited service life should be amortized systematically and reasonably in their service
lives as per the expected form of realization economic benefits relating to the said intangible assets. If the form of
realization cannot be reliably determined, the intangible assets should be amortized on a straight-line basis.
3.At the balance sheet date, when there is any indication that the intangible assets with finite useful lives may be
impaired, a provision for impairment loss is recognized on the excess of the carrying amounts of the assets over
their recoverable amounts. Intangible assets with infinite useful lives and intangible assets not satisfying the
condition for use yet are subject to impairment test each year notwithstanding whether the assets are impaired.
(2) Internal accounting policies relating to research and development expenditures
Expenditure incurred in the research phase of internal R&D shall be included in current gain/loss at the time of
occurrence. Intangible assets recognized for expenditure in exploitation stage by satisfying the followed at same
time: ①it is technically feasible that the intangible asset can be used or sold upon completion; ②there is
intention to complete the intangible asset for use or sale; ③the intangible asset can produce economic benefits,
including there is evidence that the products produced using the intangible asset has a market or the intangible
asset itself has a market; if the intangible asset is for internal use, there is evidence that there exists usage for the
intangible asset; ④there is sufficient support in terms of technology, financial resources and other resources in
order to complete the development of the intangible asset, and there is capability to use or sell the intangible asset;
⑤the expenses attributable to the development phase of the intangible asset can be measured reliably.
31. Impairment of long-term assets
Nil
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32. Long-term expenses to be apportioned
Long-term expenses to be apportioned are booked by actual amount occurred, and apportioned evenly during the
benefit period or regulated period.In case that the long-term deferred expenses are not likely to benefit the
subsequent accounting periods, the outstanding value of the item to be amortized shall be included in current
profit or loss in full.
33. Contract liability
The Company lists contract assets or contract liabilities in the balance sheet based on the relationship between
performance obligations and customer payments. The Company's obligations to transfer goods or provide services
to customers for which consideration has been received or receivable are listed as contract liabilities. Contract
assets and contract liabilities under the same contract are listed as a net amount.
34. Employee compensation
(1) Accounting treatment for short-term compensation
During the accounting period when staff providing service to the Company, the actual short-term compensation
occurred shall recognized as liabilities and reckoned into current gains/losses or relevant assets costs. The
non-monetary welfare is measured by fair value.
(2) Accounting treatment for post-employment benefit
The Company terminates the labor relationship with an employee before the employee labor contract expires, or
proposes to offer a compensation to encourage an employee to voluntarily accept the downsizing. When the
Company cannot unilaterally withdraw the labor relationship cancellation plan or the downsizing proposal nor
confirm the relevant costs of the restructuring involving the payment of termination benefits, whichever is earlier,
the liabilities arising from the compensation for the termination of the labor relationship with the employees are
recognized and included in the current profit and loss.
(3) Accounting for retirement benefits
When the Company terminates the employment relationship with employees before the end of the employment
contracts or provides compensation as an offer to encourage employees to accept voluntary redundancy, the
Company shall recognize employee compensation liabilities arising from compensation for staff dismissal and
included in profit or loss for the current period, when the Company cannot revoke unilaterally compensation for
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dismissal due to the cancellation of labor relationship plans and employee redundant proposals; and the Company
recognize cost and expenses related to payment of compensation for dismissal and restructuring, whichever is
earlier.
(4) Accounting for other long-term employee benefits
The employees of the Company have participated in the basic social endowment insurance organized and
implemented by the local labor and social security department. The Company pays the endowment insurance
premium to the local basic social endowment insurance agency on a monthly basis based on the base and ratio of
the local basic social endowment insurance payment. After the retirement of employees, the local labor and social
security department has the responsibility to pay the social basic pension to the retired employees. During the
accounting period in which employees provide services, the Company recognizes the amount payable calculated
according to the above social security insurance regulations as the liabilities and includes them in the current
profit and loss or related asset costs.
35.Lease liabilities
Nil
36. Accrual liability
Nil
37. Share-based payment
(1)Types of share-based payment
Share-based payment comprises of equity-settled share-based payment and cash-settled share-based payment.
(2)Determination of fair value of equity instruments
1)determined based on the price quoted in an active market if there exists active market for the instrument.
2)determined by adoption of valuation technology if there exists no active market, including by reference to the
recent arm’s length market transactions between knowledgeable, willing parties, reference to the current fair value
of another instrument that is substantially the same, discounted cash flow analysis and option pricing models.
(3)Basis for determination of the best estimate of exercisable equity instruments
To be determined based on the subsequent information relating to latest change of exercisable employees.
(4)Accounting relating to implementation, amendment and termination of share-based payment schemes
1)Equity-settled share-based payment
For equity instruments that may be exercised immediately after the grant, the fair value of such instrument shall,
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on the date of the grant, be recognized in relevant costs or expenses with the increase in the capital reserve
accordingly. For equity-settled share-based payment made in return for the rendering of employee services that
cannot be exercised until the services are fully rendered 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 number of exercisable instruments, be recognized in relevant costs or expenses and the
capital reserves at the fair value of such instruments on the date of the grant.
For equity-settled share-based payment made in exchange for service from other parties, such payment shall be
measured at the fair value of the service as of the acquisition date is the fair value can be measured reliably. And if
the fair value of the service cannot be measured reliably while the fair value of the equity instrument can be
measured reliably, it shall be measure at the fair value of the instrument as of the date on which the service is
acquired, which shall be recorded in relevant cost or expense with increase in owners’ equity accordingly.
2)Cash-settled share-based payment
For the cash-settled share-based payment that may be exercised immediately after the grant in exchange for render
of service by employees, the fair value of the liability incurred by the Company shall, on the date of the grant, be
recognized in relevant costs or expenses and the liabilities shall be increased accordingly. For cash-settled
share-based payment made in return for the rendering of employee services 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
number of exercisable instruments, be recognized in relevant costs or expenses and the corresponding liabilities at
the fair value of the liability incurred by the Company.
3)Revision and termination of share-based payment schemes
If the revision results in an increase in the fair value of the equity instruments granted, the Company shall
recognize the increase in the services rendered accordingly at the increased fair value of the equity instruments. If
the revision results in an increase in the number of equity instruments granted, the Company will recognize the
increase in the services rendered accordingly at the fair value of the increased number of equity instruments. If the
Company revises the vesting conditions on terms favorable to the employees, the Company will take into
consideration of the revised vesting conditions when dealing with the vesting conditions.
If the revision results in a decrease in the fair value of the equity instruments granted, the Company shall continue
recognize the amount of services rendered accordingly at the fair value of the equity instruments on the date of
grant without considering the decrease in the fair value of the equity instruments. If the revision results in a
decrease in the number of equity instruments granted, the Company will account for such decrease by reducing
part of the cancellation of equity instruments granted. If the Company revises the vesting conditions on terms not
favorable to the employees, the Company will not take into consideration of the revised vesting conditions when
dealing with the vesting conditions.
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If the Company cancels the equity instruments granted or settles the equity instruments granted during the vesting
period (other than cancellation as a result of failure to satisfy the vesting conditions), such cancellation or
settlement will be treated as accelerated exercisable rights and the original amount in the remaining vesting period
will be recognized immediately.
38. Other financial instruments including senior shares and perpetual bonds
Nil
39. Revenue
The Company shall comply with the disclosure requirement of jewelry-related industries in the “Shenzhen Stock Exchange
Self-Regulatory Guidelines for Listed Companies No. 3- Industry Disclosure”
(1) Recognition of revenue
On the starting date of the contract, the company evaluates the contract, identifies each individual performance
obligation contained in the contract, and determines whether each individual performance obligation is performed
within a certain period of time or at a certain point in time.
When meeting one of the following conditions, it belongs to the performance obligation within a certain period of
time, otherwise, it belongs to the performance obligation at a certain point in time: 1) The customer obtains and
consumes the economic benefits brought by the company's performance at the same time as the company
performs the contract; 2) The customer can control the goods or services under construction during the company's
performance; 3) The goods or services produced during the company's performance have irreplaceable uses, and
the company has the right to collect payments for the accumulated performance part of the contract during the
entire contract period .
For performance obligations performed within a certain period of time, the company recognizes revenue in
accordance with the performance progress during that period of time. When the performance progress cannot be
reasonably determined, if the cost incurred is expected to be compensated, the revenue shall be recognized
according to the amount of the cost incurred until the performance progress can be reasonably determined. For
performance obligations performed at a certain point in time, revenue is recognized at the point when the
customer obtains control of the relevant goods or services. When judging whether the customer has obtained
control of the goods, the company considers the following signs: 1) The company has the current right to receive
payment for the goods, that is, the customer has the current payment obligation for the goods; 2) The company has
transferred the legal ownership of the goods to the customer, that is, the customer has legal ownership of the
goods; 3) The company has transferred the product to the customer in kind, that is, the customer has physically
taken possession of the product; 4) The company has transferred the major risks and rewards of the ownership of
the goods to the customer, that is, the customer has obtained the main risks and rewards of the ownership of the
goods; 5) the customer has accepted the goods; 6) Other signs indicate that the customer has obtained control of
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the goods.
(2) Principles of income measurement
1) The company measures income based on the transaction price allocated to each individual performance
obligation. The transaction price is the amount of consideration that the company expects to be entitled to receive
due to the transfer of goods or services to the customer, and does not include the amount collected on behalf of a
third party and the amount expected to be returned to the customer.
2) If there is variable consideration in the contract, the company shall determine the best estimate of the variable
consideration based on the expected value or the amount most likely to incur, but the transaction price including
the variable consideration shall not exceed the amount at which the accumulatively recognized income is most
likely not be subject to a significant reversal when the relevant uncertainty is eliminated.
3) If there is a major financing component in the contract, the company shall determine the transaction price based
on the amount payable in cash when the customer assumes control of the goods or services. The difference
between the transaction price and the contract consideration shall be amortized by the effective interest method
during the contract period. On the starting date of the contract, if the company expects that the interval between
the customer's acquisition of control of the goods or services and the customer's payment of the price will not
exceed one year, we will not consider the significant financing components in the contract.
4) If the contract contains two or more performance obligations, the company will allocate the transaction prices
to each individual performance obligation in accordance with the relative proportion of the stand-alone selling
price of the goods promised by each individual performance obligation on the commencement date of contract.
(3) Specific method of revenue recognition:
In accordance with the general principles of revenue recognition and the actual situation of the company's product
sales, the company formulates a specific revenue recognition method that the products sold by the company to
customers are recognized as revenue after the products are delivered to the customer and the customer carries out
acceptance and inspection.
40. Government subsidy
(1) government subsidy including those relating to assets and relating to income
(2)government grant, if granted as monetary assets, are measured at the amount received or receivable, and
measured at fair value if granted as non-monetary assets. If the fair value can not be determined reliably, they
shall be measured at nominal value.
(3) Aggregate method for government subsidy:
1)government subsidy relating to assets are recognized as deferred income, which shall be recorded in profit or
loss by installment reasonably and systematically within the useful life of the assets. If assets are sold, transferred,
discarded as useless or damaged prior to expiration of the useful life, the remaining deferred income undistributed
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shall be transferred to profit or loss for the period in which the assets are disposed.
2)If government subsidy relating to income are used to compensate for relevant costs or loss for the subsequent
periods, they shall be recognized as deferred income, and recorded in profit or loss for the period in which the
relevant costs are recognized. If government subsidy relating to income are used to compensate for the relevant
costs or loss occurred, they shall be recorded in profit or loss for the period directly.
(4)Net method for government subsidy
1) government subsidy relating to assets are used to write off the carrying value of the relevant assets;
2) If government subsidy relating to income are used to compensate for relevant costs or loss for the subsequent
periods, they shall be recognized as deferred income, and recorded in profit or loss for the period in which offset
against the relevant costs. If government subsidy relating to income are used to compensate for the relevant costs
or loss occurred, they shall be offset against the relevant costs for the period directly.
(5)The Company adopts aggregated accounting method for the government subsidy received.
(6)As for the government subsidy comprising both portions relating to assets and income, separate accounting
shall be made for different portion; in case it is hard to differentiate the portions, the grants will be recorded as
related to income in general.
(7)The Company realizes government subsidy relating to its normal activities as other income based on the
substance of economic business, and if not related to its normal activities, realized as non-operating income and
expenditure.
(8)Subsidized loans from preferential policy obtained by the Company are classified based on whether subsidy
funds are paid to the loaning bank or directly to the Company by the competent financial authorities and are
treated based on the following principles:
1)Where subsidy funds are paid to the loaning bank by the competent financial authorities and the bank then
provides loans to the Company at a preferential policy rate, accounting shall be made by the Company as follows:
a. Recognizes the actual borrowing amount received as the carrying value of the loan, and calculates the relevant
borrowing costs based on the principal and the preferential policy rate.
b.Recognizes the fair value of the loan as the carrying value and calculates the borrowing cost under effective
interest method, and recognizes the difference between the actual amount received and the fair value of the loan as
deferred income. Deferred income is amortized over the term of the loan under effective interest method and
offset against the relevant borrowing costs.
2)Where subsidy funds are paid directly to the Company, the Company will offset the corresponding subsidy
against the relevant borrowing expenses.
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41. Deferred income tax assets/Deferred income tax liabilities
(1) Deferred tax assets or deferred tax liabilities are calculated and recognized based on the difference between the
carrying amount and tax base of assets and liabilities (and the difference of the carrying amount and tax base of
items not recognized as assets and liabilities but with their tax base being able to be determined according to tax
laws) and in accordance with the tax rate applicable to the period during which the assets are expected to be
recovered or the liabilities are expected to be settled.
(2)A deferred tax asset is recognized to the extent of the amount of the taxable income, which it is most likely to
obtain and which can be deducted from the deductible temporary difference. At the balance sheet date, if there is
any exact evidence that it is probable that future taxable profits will be available against which deductible
temporary differences can be utilized, the deferred tax assets unrecognized in prior periods are recognized.
(3)At the balance sheet date, the carrying amount of deferred tax assets is reviewed. The carrying amount of a
deferred tax asset is reduced to the extent that it is no longer probable that sufficient taxable profits will be
available to allow the benefit of the deferred tax asset to be utilized. Such reduction is subsequently reversed to
the extent that it becomes probable that sufficient taxable income will be available.
(4)The income tax and deferred tax for the period are treated as income tax expenses or income through profit or
loss, excluding those arising from the following circumstances: ① business combination; and ② the
transactions or items directly recognized in equity.
42. Lease
(1)Accounting for operating lease
When the Company is the lessee, lease payments are recognized as cost or profit or loss with straight-line method
over the lease term. Initial expenses are recognized directly into profit or loss. Contingent rents are charged as
profit or loss in the periods in which they are incurred.
When the Company is the lessor, lease income is recognized as profit or loss with straight-line method over the
lease term. Initial expenses, other than those with material amount and eligible for capitalization which are
recognized as profit or loss by installments, are recognized directly as profit or loss. Contingent rents are charged
into profit or loss in the periods in which they are incurred.
(2)Accounting for financing lease
When the company acts as lessee, at the inception of lease, the lower of fair value of leased assets at the inception
of lease and the present value of minimum lease payment is recognized as the value of leased assets. The
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minimum lease payment is recognized as the value of long-term payable. Their difference is recorded as
unrecognized finance costs with any initial direct expense incurred recorded in the value of leased assets. For each
period of the lease term, current finance cost is calculated using effective interest method.
When the company acts as lessor, at the inception of lease, the sum of minimum lease income at the inception of
lease and the initial direct expense is recognized as the value of finance lease payment receivable, with unsecured
balance also recorded. The difference between the sum of minimum lease income, initial direct expense and
unsecured balance and the sum of their present values is recognized as unrealized finance income. For each period
of the lease term, current finance income is calculated using effective interest method.
43. Other important accounting policy and estimation
Discontinued operation refers to the operation disposed or classified as held-for-sale by the Company and
presented separately under operation segments and financial statements, which has fulfilled one of the following
criteria:
(1) it represents an independent key operation or key operating region;
(2) it is part of the proposed disposal plan on an independent key operation or proposed disposal in key operating
region; or
(3) it only establishes for acquisition of subsidiary through disposal.
The enterprise shall separately list profit and loss from continuing operations and profit and loss from
discontinuing operations in the profit statement. For non-current assets held for sale or disposal groups that do not
meet the definition of discontinuing operations, the impairment losses and reversal amounts and disposal gains
and losses should be presented as profit or loss from continuing operations. Operational gains and losses and
disposal profits and losses such as impairment losses and reversal amounts of discontinuing operations should be
reported as profits or losses of discontinuing operations.
44. Changes of important accounting policy and estimation
(1) Changes of important accounting policy
√ Applicable □ Not applicable
The contents and reasons of accounting
Examination and approval procedures Note
policy changes
On December 31, 2021, in the balance
sheet, the right-of-use assets has
The leasing assets are listed as st
Deliberated and approved at 31 Session of 1,505,258.90 yuan recorded; lease liability
"Right-of-use assets", "Lease liability" and
10th BOD has 228,302.37 yuan recorded and the
"Non-current liability due within one year"
Non-current liability due within one year
presented as 1,456,782.04 yuan.
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According to the provisions of the new lease standards, for a contract that existed before the first execution date,
the Group chooses not to reassess whether it is a lease or contains a lease.
1) The Group as the lessee
The Group chooses to adjust only the cumulative impact of lease contracts that have not been completed as of
January 1, 2021. The cumulative impact amount of the first execution adjusts the amount of retained earnings and
other related items in the financial statements at the beginning of the current period of the first execution (i.e.
January 1, 2021), and no adjustment is made to the comparable period information.
① For finance leases prior to the first execution date, the Group shall respectively measure the right-of-use assets
and lease liabilities according to the original book values of the finance lease assets and the finance lease
payables;
② For operating leases prior to the first execution date, the Group measures the lease liabilities based on the
present value of the remaining lease payments discounted at the incremental borrowing rate on the first execution
date, and adjusts each lease based on an amount equal to the lease liability and according to the prepaid rent as
necessary to determine the right-of-use asset.
③The Group conducts impairment test on right-of-use assets in accordance with relevant regulations on asset
impairment and performs corresponding accounting treatment.
The Group adopts simplified treatment for operating leases whose leased assets are low-value assets before the
first execution date or operating leases to be completed within 12 months, and no right-of-use assets and lease
liabilities are recognized. In addition, the Group has adopted the following simplified treatment for operating
leases prior to the first execution date :
① When measuring lease liabilities, the same discount rate may be used for leases with similar characteristics;
the measurement of right-of-use assets may not include initial direct costs;
② Where there is an option to renew the lease or to terminate the lease, the Group determines the lease term
based on the actual exercise of the option before the first execution date and other latest information;
③As an alternative to the impairment test for right-of-use assets, the Group assesses whether the contract
including a lease is a loss-making contract before the first execution date, and adjusts the right-of-use assets
according to the amount of the loss provision included in the balance sheet before the first execution date;
④ For lease changes before the first execution date, the Group conducts accounting treatment according to the
final arrangement of lease changes.
For the outstanding minimum lease payments for significant operating leases disclosed in the 2020 financial
statements, the Group adjusts them according to the difference between the discounted present value of the
incremental borrowing rate of the Group as a lessee on 1 January 2021 and the lease liability included in the
balance sheet on 1 January 2021, the process is as follows:
Minimum lease payments for significant operating lease as of December 31, 2020 3,195,123.18
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
Add:increase in lease payments not recognized as of December 31, 2020, but reasonable
certain that the renewal option will be exercised
Less:Minimum lease payments using the simplified processing
Including: Short-term lease
Leases with less than 12 months remaining
Operating lease payments as of January 1, 2021 3,195,123.18
Weighted average incremental borrowing rate 4.75%
Lease liability as of January 1, 2021(one year expiry included) 3,051,512.28
In addition, starting from the first execution date, the cash paid by the Group to repay the principal and interest of
lease liabilities is included in the cash flow statement as cash outflows from financing activities, and the
short-term lease payments and low-value asset lease payments made with simplified treatment and variable lease
payments that are not included in the measurement of lease liability are still included in operating cash outflows.
2) The Group as the lessor
For a sub-lease classified as an operating lease before the first execution date and subsisting after the first
execution date, the Company re-evaluates it on the first execution date based on the remaining term of contract
and the terms of the original lease and sub-lease, and classifies it in accordance with the provisions of the new
lease standards. If it is reclassified as a finance lease, the Company will account for it as a new finance lease.
Except for sub-leases, the Company does not need to adjust its lease as a lessor in accordance with the new lease
standards. The Company conducts accounting treatment in accordance with the new lease standards from the first
execution date.
(2) Changes of important accounting estimation
□ Applicable √ Not applicable
(3)Adjust the financial statement items at beginning of the year when first implemented the New Lease
Standards since 2021
√ Applicable □ Not applicable
Whether adjusted the item of balance sheet at year-begin or not
√Yes □No
Consolidated balance sheet
Unit: RMB/CNY
Item 2020-12-31 2021-01-01 Adjustment
Current assets:
Monetary fund 19,887,978.05 19,887,978.05
Settlement provisions
134
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
Capital lent
Trading financial assets
Derivative financial
assets
Note receivable
Account receivable 55,031,424.70 55,031,424.70
Receivable financing
Accounts paid in
816,541.52 816,541.52
advance
Insurance receivable
Reinsurance receivables
Contract reserve of
reinsurance receivable
Other account
576,770.36 576,770.36
receivable
Including: Interest
receivable
Dividend
receivable
Buying back the sale of
financial assets
Inventories 7,729,325.94 7,729,325.94
Contract assets
Assets held for sale
Non-current asset due
within one year
Other current assets 2,715,425.31 2,715,425.31
Total current assets 86,757,465.88 86,757,465.88
Non-current assets:
Loans and payments on
behalf
Debt investment
Other debt investment
Long-term account
receivable
Long-term equity
investment
135
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
Investment in other
equity instrument
Other non-current
financial assets
Investment real estate
Fixed assets 3,792,133.36 3,792,133.36
Construction in progress
Productive biological
asset
Oil and gas asset
Right-of-use assets 3,051,512.28 3,051,512.28
Intangible assets
Expense on Research
and Development
Goodwill
Long-term expenses to
be apportioned
Deferred income tax
793,170.75 793,170.75
asset
Other non-current asset 400,000.00 400,000.00
Total non-current asset 4,985,304.11 8,036,816.39 3,051,512.28
Total assets 91,742,769.99 94,794,282.27 3,051,512.28
Current liabilities:
Short-term loans
Loan from central bank
Capital borrowed
Trading financial
liability
Derivative financial
liability
Note payable
Account payable 9,606,144.94 9,606,144.94
Accounts received in
advance
Contract liability 15,254,713.38 15,254,713.38
Selling financial asset of
136
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
repurchase
Absorbing deposit and
interbank deposit
Security trading of
agency
Security sales of agency
Wage payable 1,459,244.07 1,459,244.07
Taxes payable 722,321.02 722,321.02
Other account payable 37,882,805.52 37,882,805.52
Including: Interest
payable
Dividend
payable
Commission charge and
commission payable
Reinsurance payable
Liability held for sale
Non-current liabilities
due within one year
Other current liabilities 1,175,251.38 1,175,251.38
Total current liabilities 66,100,480.31 66,100,480.31
Non-current liabilities:
Insurance contract
reserve
Long-term loans
Bonds payable
Including: Preferred
stock
Perpetual
capital securities
Lease liability 3,051,512.28 3,051,512.28
Long-term account
payable
Long-term wages
payable
Accrual liability
Deferred income
137
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
Deferred income tax
liabilities
Other non-current
liabilities
Total non-current liabilities 3,051,512.28 3,051,512.28
Total liabilities 66,100,480.31 69,151,992.59 3,051,512.28
Owner’s equity:
Share capital 551,347,947.00 551,347,947.00
Other equity instrument
Including: Preferred
stock
Perpetual
capital securities
Capital public reserve 627,834,297.85 627,834,297.85
Less: Inventory shares
Other comprehensive
income
Reasonable reserve
Surplus public reserve 32,673,227.01 32,673,227.01
Provision of general risk
Retained profit -1,200,950,240.88 -1,200,950,240.88
Total owner’ s equity
attributable to parent 10,905,230.98 10,905,230.98
company
Minority interests 14,737,058.70 14,737,058.70
Total owner’ s equity 25,642,289.68 25,642,289.68
Total liabilities and owner’ s
91,742,769.99 94,794,282.27 3,051,512.28
equity
Explanation on adjustment
The Company implemented the new lease standard effective January 1, 2021, for the operating lease prior to the date of first
implementation, the Company measured the lease liability using the present value of the discounted interest rate on incremental
borrowings prior to the date of initial implementation in the amount of 3,051,512.28 yuan, of which, the amount due within one year
are re-classified to non-current liability due within one year. The Company measured the right-of-use assets at an amount equal to the
lease liability with necessary adjustments for prepaid rentals in the amount of 3,051,512.28 yuan.
Balance sheet of parent company
Unit: RMB/CNY
138
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
Item 2020-12-31 2021-01-01 Adjustment
Current assets:
Monetary fund 10,097,024.59 10,097,024.59
Trading financial assets
Derivative financial
assets
Note receivable
Account receivable 24,274,935.96 24,274,935.96
Receivable financing
Accounts paid in
800,000.00 800,000.00
advance
Other account
115,263.05 115,263.05
receivable
Including: Interest
receivable
Dividend
receivable
Inventories 550,421.78 550,421.78
Contract assets
Assets held for sale
Non-current asset due
within one year
Other current assets 2,652,771.13 2,652,771.13
Total current assets 38,490,416.51 38,490,416.51
Non-current assets:
Debt investment
Other debt investment
Long-term account
receivable
Long-term equity
19,960,379.73 19,960,379.73
investment
Investment in other
equity instrument
Other non-current
financial assets
Investment real estate
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
Fixed assets 3,530,501.40 3,530,501.40
Construction in progress
Productive biological
asset
Oil and gas asset
Right-of-use assets 737,823.53 737,823.53
Intangible assets
Expense on Research
and Development
Goodwill
Long-term expenses to
be apportioned
Deferred income tax
asset
Other non-current asset 400,000.00 400,000.00
Total non-current asset 23,890,881.13 24,628,704.66 737,823.53
Total assets 62,381,297.64 63,119,121.17 737,823.53
Current liabilities:
Short-term loans
Trading financial
liability
Derivative financial
liability
Note payable
Account payable 748,604.24 748,604.24
Accounts received in
advance
Contract liability 14,685,423.04 14,685,423.04
Wage payable 1,146,371.58 1,146,371.58
Taxes payable 24,906.50 24,906.50
Other account payable 39,409,824.37 39,409,824.37
Including: Interest
payable
Dividend
payable
Liability held for sale
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
Non-current liabilities
due within one year
Other current liabilities 1,101,243.63 1,101,243.63
Total current liabilities 57,116,373.36 57,116,373.36
Non-current liabilities:
Long-term loans
Bonds payable
Including: Preferred
stock
Perpetual
capital securities
Lease liability 737,823.53 737,823.53
Long-term account
payable
Long-term wages
payable
Accrual liability
Deferred income
Deferred income tax
liabilities
Other non-current
liabilities
Total non-current liabilities 737,823.53 737,823.53
Total liabilities 57,116,373.36 57,854,196.89 737,823.53
Owner’s equity:
Share capital 551,347,947.00 551,347,947.00
Other equity instrument
Including: Preferred
stock
Perpetual
capital securities
Capital public reserve 627,834,297.85 627,834,297.85
Less: Inventory shares
Other comprehensive
income
Reasonable reserve
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
Surplus public reserve 32,673,227.01 32,673,227.01
Retained profit -1,206,590,547.58 -1,206,590,547.58
Total owner’ s equity 5,264,924.28 5,264,924.28
Total liabilities and owner’ s
62,381,297.64 63,119,121.17 737,823.53
equity
Explanation on adjustment
The Company implemented the new lease standard effective January 1, 2021, for the operating lease prior to the date of first
implementation, the Company measured the lease liability using the present value of the discounted interest rate on incremental
borrowings prior to the date of initial implementation in the amount of 737,823.53 yuan, of which, the amount due within one year are
re-classified to non-current liability due within one year. The Company measured the right-of-use assets at an amount equal to the lease
liability with necessary adjustments for prepaid rentals in the amount of 737,823.53 yuan.
Explanation on retrospective adjustment of prior period comparative data for the first implementation of
the new lease standard from 2021
□ Applicable √ Not applicable
45.Other
Nil
VI. Taxes
1. Main tax category and tax rate
Tax category Tax calculation evidence Tax rate
Sales of goods, taxable labor service
Value added tax revenue, taxable income, intangible assets 5%, 6%, 13%
income and income from property leasing
Tax for maintaining and building cities Turnover tax payable 7%
Enterprise income tax Taxable income 25%, 20%, 15%
Disclose reasons for different taxpaying body
Taxpaying body Income tax rate
The Company 15.00%
Shenzhen Emmelle Industry Co., Ltd. 25.00%
Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd. 20.00%
Shenzhen Emmelle Cloud Technology Co., Ltd. 20.00%
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
2. Tax preference
Note 1: The Company obtained the high-tech enterprise certificate "GR202044200651" jointly approved by the
Shenzhen Science and Technology Innovation Commission, the Shenzhen Finance Bureau, and the Shenzhen Tax
Service, State Taxation Administration on December 11, 2020, the validity period is from 2020 to 2022. Therefore,
the company enjoys a preferential tax rate of 15% in 2021.
Note 2: According to the "Enterprise Income Tax Law of the People's Republic of China" and its implementation
regulations, the "Notice of the State Taxation Administration and Ministry of Finance on the Implementation of
Inclusive Tax Relief Policies for Small and Micro Enterprises" (CS[2020] No. 13) and other provisions, from
January 1, 2021 to December 31, 2021, the portion of the annual taxable income of small, low-profit enterprises
that does not exceed 1 million yuan will be included in the taxable income by 25%, and the corporate income tax
will be paid at a tax rate of 20%. The portion of the annual taxable income of small, low-profit enterprises
exceeding 1 million yuan but not exceeding 3 million yuan will be included in the taxable income by50%, and the
corporate income tax will be paid at a tax rate of 20%. Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd. and
Shenzhen Emmelle Cloud Technology Co., Ltd., the Company’s subsidiaries, are small and low-profit enterprises,
so a preferential tax rate of 20% is applicable to them.
3. Other
Nil
VII. Notes to Items in Consolidated Financial Statements
1. Monetary fund
Unit: RMB/CNY
Item Ending balance Opening balance
Cash on hand 27,587.25 21,530.26
Bank deposit 33,219,370.67 19,866,447.79
Total 33,246,957.92 19,887,978.05
Other explanation
At the end of the period, there are no mortgages, pledges, freezes, etc. that restrict the use of funds.
At the end of the period, there are no funds deposited overseas or with potential recovery risks.
2. Trading financial assets
Unit: RMB/CNY
Item Ending balance Opening balance
Including:
143
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
Including:
Other explanation:
Nil
3. Derivative financial assets
Unit: RMB/CNY
Item Ending balance Opening balance
Other explanation:
Nil
4. Notes receivable
(1) Category
Unit: RMB/CNY
Item Ending balance Opening balance
Unit: RMB/CNY
Ending balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Book Book
Accrual Accrual
Amount Ratio Amount value Amount Ratio Amount value
ratio ratio
Including:
Including:
Total 0.00 0.00% 0.00 0.00% 0.00 0.00 0.00% 0.00 0.00% 0.00
Bad debt provision accrual on single basis:
Unit: RMB/CNY
Ending balance
Name
Book balance Bad debt provision Accrual ratio Accrual causes
Bad debt provision accrual on portfolio:
Unit: RMB/CNY
Ending balance
Name
Book balance Bad debt provision Accrual ratio
Explanation on portfolio basis:
If the provision for bad debts of notes 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
144
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
(2) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
Unit: RMB/CNY
Current changes
Category Opening balance Collected or Ending balance
Accrual Write off Other
reversal
Total 0.00 0.00 0.00 0.00 0.00 0.00
Including important amount of bad debt provision collected or reversal in the period:
□Applicable √Not applicable
(3) Note receivable pledged at period-end
Unit: RMB/CNY
Item Amount pledged at period-end
Total 0.00
(4) Note receivable which have endorsed and discount at period-end and has not expired on balance sheet
date
Unit: RMB/CNY
Item Amount derecognition at period-end Amount not derecognition at period-end
Total 0.00 0.00
(5) Notes transfer to account receivable due for failure implementation by drawer at period-end
Unit: RMB/CNY
Item Amount transfer to account receivable at period-end
Total 0.00
Other explanation
Nil
(6) Note receivable actually charge-off in the period
Unit: RMB/CNY
Item Amount charge-off
Including important note receivable charge-off:
Unit: RMB/CNY
Enterprise Nature Amount charge-off Causes of charge-off Procedure for Amount cause by
145
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
charge-off related transactions
or not (Y/N)
Total -- 0.00 -- -- --
Explanation on note receivable change-off:
Nil
5. Account receivable
(1) Category
Unit: RMB/CNY
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
Account receivable
with bad debt 24,072,4 7,229,28 16,843,15 10,400,55 4,821,546 5,579,011.2
44.44% 30.03% 17.33% 46.36%
provision accrual by 36.14 5.93 0.21 7.65 .38 7
single basis
Including:
Accounts with single
significant amount
18,925,6 3,785,13 15,140,53
but with bad debts 34.94% 20.00%
66.88 3.38 3.50
provision accrued
individually
Accounts with single
minor amount but
5,146,76 3,444,15 1,702,616 10,400,55 4,821,546 5,579,011.2
with bad debts 9.50% 66.92% 17.33% 46.36%
9.26 2.55 .71 7.65 .38 7
provision accrued
individually
Account receivable
with bad debt 30,097,2 90,291.6 30,006,93 49,601,21 148,803.6 49,452,413.
55.56% 0.30% 82.67% 0.30%
provision accrual by 25.06 8 3.38 7.08 5 43
portfolio
Including:
Account receivable
withdrawal bad debt
provision by group of 30,097,2 90,291.6 30,006,93 49,601,21 148,803.6 49,452,413.
55.56% 0.30% 82.67% 0.30%
credit risk 25.06 8 3.38 7.08 5 43
characteristics
(Aging analysis
146
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
method)
54,169,6 7,319,57 46,850,08 60,001,77 4,970,350 55,031,424.
Total 100.00% 13.51% 100.00% 8.28%
61.20 7.61 3.59 4.73 .03 70
Bad debt provision accrual on single basis: Accounts with single significant amount but with bad debts provision accrued
individually
Unit: RMB/CNY
Ending balance
Name
Book balance Bad debt provision Accrual ratio Accrual causes
The payment is overdue
Guangshui Jiaxu Energy
18,925,666.88 3,785,133.38 20.00% and there is an
Technology Co., Ltd.
impairment risk
Total 18,925,666.88 3,785,133.38 -- --
Bad debt provision accrual on single basis: Accounts with single minor amount but with bad debts provision accrued individually
Unit: RMB/CNY
Ending balance
Name
Book balance Bad debt provision Accrual ratio Accrual causes
Sichuan Wanling Electric Expected to be difficult
1,102,072.20 1,102,072.20 100.00%
Technology Co., Ltd. to recover
Suzhou Daming Vehicle Expected to be difficult
990,658.42 495,329.21 50.00%
Industry Co., Ltd. to recover
Suzhou Jiaxin Economic Expected to be difficult
888,757.00 444,378.50 50.00%
Trade Co., Ltd. to recover
Dongguan Daxiang New Expected to be difficult
741,734.00 222,520.20 30.00%
Energy Co., Ltd. to recover
Shijiazhuang Dasong Expected to be difficult
677,064.00 677,064.00 100.00%
Tech. Co., Ltd to recover
Guangdong Xinlingjia Expected to be difficult
348,136.00 104,440.80 30.00%
New Energy Co., Ltd. to recover
Shanghai Swen Electric Expected to be difficult
281,507.50 281,507.50 100.00%
Vehicle Co., Ltd. to recover
Tianjin Huihui Electric Expected to be difficult
116,840.14 116,840.14 100.00%
Vehicle Co., Ltd. to recover
Total 5,146,769.26 3,444,152.55 -- --
Bad debt provision accrual on single basis:
Unit: RMB/CNY
Ending balance
Name
Book balance Bad debt provision Accrual ratio Accrual causes
Bad debt provision accrual on portfolio: Accounts receivable with provision for bad debts by aging analysis method
147
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
Unit: RMB/CNY
Ending balance
Name
Book balance Bad debt provision Accrual ratio
Within one year (one year
28,013,989.01 84,041.97 0.30%
included)
1-2 years (2 years included) 2,073,521.05 6,220.56 0.30%
2-3 years (3 years included) 9,715.00 29.15 0.30%
Total 30,097,225.06 90,291.68 --
Explanation on portfolio basis:
The account receivable of CBC with a single significant amount are those with a single amount of 5 million yuan more.
Bad debt provision accrual on portfolio:
Unit: RMB/CNY
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
Unit: RMB/CNY
Account age Book balance
Within one year (one year included) 47,056,496.03
Within one year 47,056,496.03
1-2 years 3,274,208.05
2-3 years 1,422,393.00
Over 3 years 2,416,564.12
3-4 years 355,920.42
4-5 years 1,383,579.70
Over 5 years 677,064.00
Total 54,169,661.20
(2) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
Unit: RMB/CNY
Current changes
Category Opening balance Ending balance
Accrual Collected or Write off Other
148
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
reversal
Bad debt
provision for
4,970,350.03 4,230,561.85 1,881,334.27 7,319,577.61
accounts
receivable
Total 4,970,350.03 4,230,561.85 1,881,334.27 0.00 0.00 7,319,577.61
Including important amount of bad debt provision collected or reversal in the period:
Unit: RMB/CNY
Enterprise Amount collected or reversal Collection way
Total 0.00 --
Nil
(2) Account receivables actually charge-off during the reporting period
Unit: RMB/CNY
Item Amount charge-off
Including major account receivables charge-off:
Unit: RMB/CNY
Amount cause by
Procedure for
Enterprise Nature Amount charge-off Causes of charge-off related transactions
charge-off
or not (Y/N)
Total -- 0.00 -- -- --
Explanation on account receivable charge-off:
Nil
(4) Top five account receivables collected by arrears party at ending balance
Unit: RMB/CNY
Ending balance of accounts Proportion of total closing balance Ending balance of bad bet
Name
receivable of accounts receivable provision
Guangshui Jiaxu Energy
18,925,666.88 34.94% 3,785,133.38
Technology Co., Ltd.
Xi’an Zhongjinpu Trading
9,446,085.21 17.44% 28,338.26
Co., Ltd.
Shenzhen Yunshang
4,627,219.04 8.54% 13,881.66
Jewelry Co., Ltd.
Fuzhou Cangshan Dingjue
4,518,161.98 8.34% 13,554.49
Jewelry Firm
Fuzhou Rongrun Jewelry 4,146,308.99 7.65% 12,438.93
149
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
Co., Ltd.
Total 41,663,442.10 76.91%
(5) Assets and liability resulted by account receivable transfer and continuous involvement
Nil
Other explanation:
Nil
(6) Account receivable derecognition due to transfer of financial assets
Nil
6. Receivables financing
Unit: RMB/CNY
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:
Nil
7. Account paid in advance
(1) By account age
Unit: RMB/CNY
Ending balance Opening balance
Account age
Amount Ratio Amount Ratio
Within one year 1,300,408.57 100.00% 816,541.52 100.00%
Total 1,300,408.57 -- 816,541.52 --
Explanation on un-settlement in time for advance payment with over one year account age and major amounts:
Nil
(2) Top 5 advance payment at ending balance by prepayment object
Enterprise Relationship with Amount Account age Nature Ratio in total
the Company advance e
150
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
payment (%)
Shenzhen Hualinglong Jewelry Non-related party 471,350.00 Within 1 year Prepaid 36.25
Culture Technology Co., Ltd. (including 1 year) design fee
Taixing Jiaye Electronic Non-related party 238,535.40 Within 1 year Prepayment 18.34
Technology Co., Ltd. (including 1 year)
Shanghai Baoxinlai Diamond Non-related party 200,000.00 Within 1 year Prepayment 15.38
Co., Ltd. (including 1 year)
Hubei Zhongyi Technology Co., Non-related party 87,066.10 Within 1 year Prepayment 6.70
Ltd. (including 1 year)
Wuzhou Tongchuang New Non-related party 85,000.00 Within 1 year Prepayment 6.54
Energy Materials Co., Ltd. (including 1 year)
Total 1081951.50 83.20
Other explanation:
At end of the period, there was no advance payment from shareholder unit and other related parties that holds 5% (included) voting
rights of the Company among Advance Payment
8. Other account receivable
Unit: RMB/CNY
Item Ending balance Opening balance
Other account receivable 494,695.27 576,770.36
Total 494,695.27 576,770.36
(1) Interest receivable
1) Category
Unit: RMB/CNY
Item Ending balance Opening balance
2) Important overdue interest
Unit: RMB/CNY
Impairment (Y/N) and
Borrower Ending Balance Overdue time Overdue reason
judgment basis
Total 0.00 -- -- --
Other explanation:
Nil
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3) Accrual of bad debt provision
□Applicable √Not applicable
(2) Dividend receivable
1) Category
Unit: RMB/CNY
Item (or invested company) Ending balance Opening balance
2) Important dividend receivable with over one year aged
Unit: RMB/CNY
Item (or invested Causes of failure for Impairment (Y/N) and
Ending balance Account age
company) collection judgment basis
Total 0.00 -- -- --
3) Accrual of bad debt provision
□Applicable √Not applicable
Other explanation:
Nil
(3) Other account receivable
1) By nature
Unit: RMB/CNY
Account nature Ending book balance Opening book balance
Deposit or margin 576,539.00 618,609.00
Payment for equipment 311,400.00 311,400.00
Personal loan of employees 20,144.82 10,396.88
Total 908,083.82 940,405.88
2) Accrual of bad debt provision
Unit: RMB/CNY
Phase I Phase II Phase III
Bad debt provision Expected credit Expected credit losses for Expected credit losses for Total
losses over next 12 the entire duration (without the entire duration (with
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
months credit impairment occurred) credit impairment occurred)
Balance on January 1,
363,635.52 363,635.52
2021
January 1, 2021 balance
—— —— —— ——
in the current period
Accrued in this period 49,753.03 49,753.03
Balance on December 31,
413,388.55 413,388.55
2021
Change of book balance of loss provision with amount has major changes in the period
□Applicable √Not applicable
By account age
Unit: RMB/CNY
Account age Book balance
Within one year (one year included) 86,144.82
Within one year 86,144.82
1-2 years 350,039.00
2-3 years 60,000.00
Over 3 years 411,900.00
3-4 years 50,000.00
4-5 years 10,200.00
Over 5 years 351,700.00
Total 908,083.82
3) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
Unit: RMB/CNY
Current changes
Opening
Category Collected or Ending balance
balance Accrual Write off Other
reversal
Bad debt
provision for other
363,635.52 49,753.03 413,388.55
receivables-The
first stage
Total 363,635.52 49,753.03 0.00 0.00 0.00 413,388.55
Nil
Important amount of bad debt provision switch-back or collection in the period:
Unit: RMB/CNY
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
Enterprise Amount switch-back or collection Collection way
Total 0.00 --
Nil
4) Other account receivables actually charge-off during the reporting period
Unit: RMB/CNY
Item Amount charge-off
Including major other account receivables charge-off:
Unit: RMB/CNY
Amount cause by
Procedure for
Enterprise Nature Amount charge-off Causes of charge-off related transactions
charge-off
or not (Y/N)
Total -- 0.00 -- -- --
Other Explanation on account receivable charge-off
5) Top 5 other account receivable collected by arrears party at ending balance
Unit: RMB/CNY
Proportion in total
other account Ending balance of
Enterprise Nature Ending Balance Account age
receivables at bad debt provision
period-end
Shenzhen Luwei
Payment for
Mechatronic 300,000.00 Over 5 years 33.04% 300,000.00
equipment
Equipment Co., Ltd
Shenzhen
Gangdelong Margin or deposit 211,840.00 1-2 years 23.33% 635.52
Industrial Co., Ltd.
Alipay (China)
Network Technology
Margin or deposit 170,000.00 Within 4 years 18.72% 50,360.00
Co., Ltd. customer
reserve fund
Shenye Pengji
Margin or deposit 60,222.00 1-2 years 6.63% 180.67
(Group) Co., Ltd.
Quick Money
Payment Clearing
Margin or deposit 30,000.00 Within 5 years 3.30% 30,000.00
Information Co.,
Ltd.
Total -- 772,062.00 -- 85.02% 381,176.19
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6) Account receivable with government grants involved
Unit: RMB/CNY
Time, amount and basis
Enterprise Government grants Ending Balance Ending account age of amount collection
estimated
Nil
7) Other account receivable derecognition due to financial assets transfer
Nil
8) Assets and liability resulted by other account receivable transfer and continuous involvement
Nil
Other explanation:
Nil
9. Inventory
Whether companies need to comply with the disclosure requirements of the real estate industry
No
(1) Category
Unit: RMB/CNY
Ending balance Opening balance
Provision for Provision for
inventory inventory
depreciation or depreciation or
Item
Book balance contract Book value Book balance contract Book value
performance cost performance cost
impairment impairment
provision provision
Raw materials 5,151,013.66 5,151,013.66 1,298,565.61 1,298,565.61
Finished goods 2,917,927.37 376,064.05 2,541,863.32 2,545,994.24 278,533.53 2,267,460.71
Goods sold 5,656.40 5,656.40
Consigned
processing 555,696.79 555,696.79 4,157,643.22 4,157,643.22
materials
Total 8,624,637.82 376,064.05 8,248,573.77 8,007,859.47 278,533.53 7,729,325.94
The Company shall comply with the disclosure requirement of jewelry-related industries in the “Shenzhen Stock Exchange
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
Self-Regulatory Guidelines for Listed Companies No. 3- Industry Disclosure”
(2) Provision for inventory depreciation or contract performance cost impairment provision
Unit: RMB/CNY
Current increased Current decreased
Item Opening balance Switch back or Ending balance
Accrual Other Other
charge-off
Raw materials
Finished goods 278,533.53 99,941.65 2,411.13 376,064.05
Total 278,533.53 99,941.65 2,411.13 376,064.05
Nil
(3) Explanation on capitalization of borrowing costs at ending balance of inventory
Nil
(4) Description of the current amortization amount of contract performance costs
Nil
10. Contractual assets
Unit: RMB/CNY
Ending balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Total 0.00 0.00 0.00 0.00
Book value of contract assets has major changes and causes:
Unit: RMB/CNY
Item Amount changes Reason for change
If the provision for bad debts of contract asset 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
Accrual of impairment provision in the period
Unit: RMB/CNY
Reversal/Charge-off in
Item Accrued in this period Switch-back in the period Causes
the period
Total 0.00 0.00 0.00 --
Other explanation:
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
Nil
11. Assets held for sale
Unit: RMB/CNY
Ending book Impairment Ending book Expected disposal Expected disposal
Item Fair value
balance provision value expenses time
Total 0.00 0.00 0.00 0.00 0.00 --
Other explanation:
Nil
12. Non-current asset due within one year
Unit: RMB/CNY
Item Ending balance Opening balance
Important creditors’ investment/Other creditors’ investment
Unit: RMB/CNY
Ending balance Opening balance
Creditor's rights
Face value Coupon rate Actual rate Due date Face value Coupon rate Actual rate Due date
Total 0.00 —— —— —— 0.00 —— —— ——
Other explanation:
Nil
13. Other current assets
Unit: RMB/CNY
Item Ending balance Opening balance
Tax credit and input tax to be certified 1,078,351.48 2,652,771.13
Prepaid corporate income tax 51,574.09
Non-public offering of stock issuance fees 735,849.05
Prepaid input tax 11,080.09
Total 1,814,200.53 2,715,425.31
Other explanation:
Nil
14. Creditors’ investment
Unit: RMB/CNY
Item Ending balance Opening balance
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Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Total 0.00 0.00 0.00 0.00
Important creditors’ investment
Unit: RMB/CNY
Ending balance Opening balance
Creditor's rights
Face value Coupon rate Actual rate Due date Face value Coupon rate Actual rate Due date
Total 0.00 —— —— —— 0.00 —— —— ——
Accrual of impairment provision
Unit: RMB/CNY
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 January 1,
0.00
2021
January 1, 2021 balance
—— —— —— ——
in the current period
--Transfer to the second
0.00
stage
-- Transfer to the third
0.00
stage
-- Reversal to the second
0.00
stage
-- Reversal to the first
0.00
stage
Accrued in this period 0.00
Reversal in Current
0.00
Period
Conversion in Current
0.00
Period
Write off in this period 0.00
Other changes 0.00
Balance on December 31,
0.00
2021
Change of book balance of loss provision with amount has major changes in the period
□Applicable √Not applicable
Other explanation:
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
Nil
15. Other creditors’ investment
Unit: RMB/CNY
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
Total 0.00 0.00 0.00 0.00 0.00 ——
Important other creditors’ investment
Unit: RMB/CNY
Other creditors’ Ending balance Opening balance
investment Face value Coupon rate Actual rate Due date Face value Coupon rate Actual rate Due date
Total 0.00 —— —— —— 0.00 —— —— ——
Accrual of impairment provision
Unit: RMB/CNY
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 January 1,
0.00
2021
January 1, 2021 balance
—— —— —— ——
in the current period
--Transfer to the second
0.00
stage
-- Transfer to the third
0.00
stage
-- Reversal to the second
0.00
stage
-- Reversal to the first
0.00
stage
Accrued in this period 0.00
Reversal in Current
0.00
Period
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
Conversion in Current
0.00
Period
Write off in this period 0.00
Other changes 0.00
Balance on December 31,
0.00
2021
Change of book balance of loss provision with amount has major changes in the period
□Applicable √Not applicable
Other explanation:
Nil
16. Long-term account receivable
(1) Long-term account receivable
Unit: RMB/CNY
Ending balance Opening balance
Discount rate
Item Bad debt Bad debt
Book balance Book value Book balance Book value interval
provision provision
Total 0.00 0.00 0.00 0.00 --
Impairment of bad debt provision
Unit: RMB/CNY
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 January 1,
0.00
2021
January 1, 2021 balance
—— —— —— ——
in the current period
--Transfer to the second
0.00
stage
-- Transfer to the third
0.00
stage
-- Reversal to the second
0.00
stage
-- Reversal to the first
0.00
stage
Accrued in this period 0.00
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Reversal in Current
0.00
Period
Conversion in Current
0.00
Period
Write off in this period 0.00
Other changes 0.00
Balance on December 31,
0.00
2021
Change of book balance of loss provision with amount has major changes in the period
□Applicable √Not applicable
Nil
(2) Long-term account receivable derecognized due to financial assets transfer
Nil
(3) Assets and liabilities resulted by long-term account receivable transfer and continues involvement
Nil
Other explanation
Nil
17. Long-term equity investments
Unit: RMB/CNY
Changes in the period (+, -)
Ending
Other Cash
Opening Investme Accrual Ending balance
The Additiona comprehe dividend
Balance nt gains Other of Balance of
invested l Capital nsive or profit
(Book recognize equity impairme Other (Book impairme
entity investmen reduction income announce
value) d under change nt value) nt
t adjustmen d to
equity provision provision
t issued
I. Joint venture
Subtotal 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
II. Associated enterprise
Subtotal 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Other explanation
Nil
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18. Other equity instrument investment
Unit: RMB/CNY
Item Ending balance Opening balance
Itemized the non-tradable equity instrument investment in the period
Unit: RMB/CNY
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:
Nil
19. Other non-current financial assets
Unit: RMB/CNY
Item Ending balance Opening balance
Other explanation:
Nil
20. Investment real estate
(1) Investment real estate measured at cost
□Applicable √Not applicable
(2) Investment real estate measured at fair value
□Applicable √Not applicable
(3) Investment real estate without property rights certificate
Unit: RMB/CNY
Reasons for failing to complete the
Item Book value
property rights certificate
Other explanation
Nil
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21. Fixed assets
Unit: RMB/CNY
Item Ending balance Opening balance
Fixed assets 3,439,212.00 3,792,133.36
Total 3,439,212.00 3,792,133.36
(1) Fixed assets
Unit: RMB/CNY
Housing and Machinery Means of Electronic
Item Total
buildings equipment transportation equipment and other
I. Original book
value:
1.Opening balance 2,959,824.00 1,414,480.77 958,593.21 248,254.93 5,581,152.91
2.Current
13,618.00 5,272.56 18,890.56
increased
(1) Purchase 13,618.00 5,272.56 18,890.56
(2)
Construction in
process transfer-in
(3) The
increase in business
combination
3.Current
decreased
(1) Disposal or
scrap
4.Ending balance 2,959,824.00 1,428,098.77 958,593.21 253,527.49 5,600,043.47
II. Accumulated
depreciation
1.Opening balance 599,364.36 316,423.81 690,963.97 182,267.41 1,789,019.55
2.Current
133,192.08 135,168.35 93,503.04 9,948.45 371,811.92
increased
(1) Accrual 133,192.08 135,168.35 93,503.04 9,948.45 371,811.92
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
3.Current
decreased
(1) Disposal or
scrap
4.Ending balance 732,556.44 451,592.16 784,467.01 192,215.86 2,160,831.47
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
2,227,267.56 976,506.61 174,126.20 61,311.63 3,439,212.00
value
2.Opening book
2,360,459.64 1,098,056.96 267,629.24 65,987.52 3,792,133.36
value
(2) Fixed assets temporary idle
Unit: RMB/CNY
Accumulated Impairment
Item Original book value Book value Note
depreciation provision
(3) Fixed assets leasing-out by operational lease
Unit: RMB/CNY
Item Ending book value
(4) Fixed assets without property rights certificate
Unit: RMB/CNY
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Reasons for failing to complete the
Item Book value
property rights certificate
The six properties of Lianxin Garden
7-20F with original value of 2,959,824.00
Yuan. The property purchasing refers to the
indemnificatory housing for enterprise
talent buying from Shenzhen Housing and
Construction Bureau of Luohu District.
Six properties in Lianxin Garden 2,227,267.56
According to the agreement, the enterprise
shall not carrying any kind of property
trading with any units or individuals except
the government, and the company has no
property certification on the above
mentioned properties.
Other explanation
Nil
(5) Fixed assets disposal
Unit: RMB/CNY
Item Ending balance Opening balance
Other explanation
Nil
22. Construction in progress
Unit: RMB/CNY
Item Ending balance Opening balance
(1) Construction in progress
Unit: RMB/CNY
Ending balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Total 0.00 0.00 0.00 0.00
(2) Changes in significant construction in progress
Unit: RMB/CNY
Item Budget Opening increased Fixed Other Ending Proporti Progress Accumul including Interest Sourceof
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
balance in the assets decrease balance on of ated : interest capitaliz funds
Period transfer-i d in the project amount capitaliz ation rate
n in the Period investme of ed of the
Period nt in interest amount year
budget capitaliz of the
ation year
Total 0.00 0.00 0.00 0.00 0.00 0.00 -- -- 0.00 0.00 0.00% --
(3) Provision for impairment of construction in progress in the current period
Unit: RMB/CNY
Item Accrual in the period Reasons for accrual
Total 0.00 --
Other explanation
Nil
(4) Engineering materials
Unit: RMB/CNY
Ending balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Total 0.00 0.00 0.00 0.00
Other explanation:
Nil
23. Productive biological asset
(1) Productive biological assets measured by cost
□Applicable √Not applicable
(2) Productive biological assets measured by fair value
□Applicable √Not applicable
24. Oil and gas asset
□Applicable √Not applicable
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25. Right-of-use asset
Unit: RMB/CNY
Item Houses and buildings Total
I. Original book value:
1.Opening balance 3,051,512.28 3,051,512.28
2.Current increased
3.Current decreased
4.Ending balance 3,051,512.28 3,051,512.28
II. Accumulated depreciation
1.Opening balance
2.Current increased 1,546,253.38 1,546,253.38
(1) Accrual 1,546,253.38 1,546,253.38
3.Current decreased
(1) Disposal or scrap
4.Ending balance 1,546,253.38 1,546,253.38
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 value 1,505,258.90 1,505,258.90
2.Opening book value 3,051,512.28 3,051,512.28
Other explanation:
Nil
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26. Intangible assets
(1) Intangible assets
Unit: RMB/CNY
Non-patent
Item Land use right Patent Total
technology
I. Original book
value
1.Opening
balance
2.Current
increased
(1) Purchase
(2) Internal R
&D
(3) The
increase in business
combination
3.Current
decreased
(1) Disposal
4.Ending
balance
II. Accumulated
depreciation
1.Opening
balance
2.Current
increased
(1) Accrual
3.Current
decreased
(1) Disposal
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
4.Ending
balance
III. Impairment
provision
1.Opening
balance
2.Current
increased
(1) Accrual
3.Current
decreased
(1) Disposal
4.Ending
balance
IV. Book value
1.Ending book
value
2.Opening book
value
Ratio of intangible assets resulted from internal R&D in balance of intangible assets at period-end
(2) Land use right without certificate of title completed
Unit: RMB/CNY
Reasons for failing to complete the
Item Book value
property rights certificate
Other explanation:
Nil
27. Expense on Research and Development
Unit: RMB/CNY
Current increased Current decreased
Opening Internal Confirmed as Transfer to Ending
Item
balance development Other intangible current profit balance
expenditure assets and loss
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
Total 0.00 0.00 0.00 0.00 0.00 0.00
Other explanation
Nil
28. Goodwill
(1) Original book value of goodwill
Unit: RMB/CNY
Current increased Current decreased
The invested Formed by
Opening balance Ending balance
entity or items business Dispose
combination
Total 0.00 0.00 0.00 0.00
(2) Impairment provision of goodwill
Unit: RMB/CNY
The invested Current increased Current decreased
Opening balance Ending balance
entity or items Accrual Dispose
Total 0.00 0.00 0.00 0.00
Information about the asset group or asset group combination in which the goodwill is located
Nil
Explain the method of confirming the goodwill impairment test process, key parameters (such as the forecast period growth rate,
stable period growth rate, profit rate, discount rate, forecast period, etc. when estimating the present value of future cash flow), and
the impairment loss of goodwill:
Nil
Impact of impairment test for goodwill
Nil
Other explanation
Nil
29. Long-term expenses to be apportioned
Unit: RMB/CNY
Amortized in the
Item Opening balance Current increased Other decrease Ending balance
Period
Total 0.00 0.00 0.00
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
Other explanation
Nil
30. Deferred income tax assets/Deferred income tax liabilities
(1) Deferred income tax assets without offset
Unit: RMB/CNY
Ending balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Impairment provision of
64,046.67 3,041,804.74 793,170.75 3,172,682.98
assets
Total 64,046.67 3,041,804.74 793,170.75 3,172,682.98
(2) Deferred income tax liabilities without offset
Unit: RMB/CNY
Ending balance Opening balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
differences liabilities differences liabilities
Total 0.00 0.00 0.00 0.00
(3) Deferred income tax assets and deferred income tax liabilities listed after off-set
Unit: RMB/CNY
Ending balance of Trade-off between the Opening balance of
Trade-off between the
deferred income tax deferred income tax deferred income tax
Item deferred income tax
assets or liabilities after assets and liabilities at assets or liabilities after
assets and liabilities
off-set period-begin off-set
Deferred income tax
64,046.67 793,170.75
assets
(4) Details of unrecognized deferred income tax assets
Unit: RMB/CNY
Item Ending balance Opening balance
(5) Deductible losses of un-recognized deferred income tax assets expired on the followed year
Unit: RMB/CNY
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Year Ending amount Opening amount Note
Other explanation:
Nil
31. Other non-current assets
Unit: RMB/CNY
Ending balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Advance payment for house 400,000.00 0.00 400,000.00 400,000.00 0.00 400,000.00
Total 400,000.00 0.00 400,000.00 400,000.00 0.00 400,000.00
Other explanation:
As of December 31, 2021, the Housing and Construction Bureau of Luohu District, Shenzhen City has not delivered houses for
enterprise talents in Luohu District.
32. Short-term loans
(1) Category
Unit: RMB/CNY
Item Ending balance Opening balance
Explanation on short-term loans category:
Nil
(2) Overdue outstanding short-term loans
Total 0.00 Yuan overdue outstanding short-term loans at period-end, including the followed significant amount:
Unit: RMB/CNY
Borrower Ending Balance Lending rate Overdue time Overdue rate
Total 0.00 -- -- --
Other explanation:
Nil
33. Trading financial liability
Unit: RMB/CNY
Item Ending balance Opening balance
Including:
Including:
172
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
Other explanation:
Nil
34. Derivative financial liability
Unit: RMB/CNY
Item Ending balance Opening balance
Other explanation:
Nil
35. Notes payable
Unit: RMB/CNY
Category Ending balance Opening balance
Notes expired at period-end without paid was 0.00 Yuan.
36. Account payable
(1) Account payable
Unit: RMB/CNY
Item Ending balance Opening balance
Within one year (one year included) 7,347,161.83 8,691,337.93
1-2 years (2 years included) 48,424.51 423,346.08
2-3 years (3 years included) 410,259.07 487,016.93
3-4 years (4 years included) 487,016.93 1,240.00
4-5 years (5 years included) 1,240.00
Over 5 years 3,204.00 3,204.00
Total 8,297,306.34 9,606,144.94
(2) Important account payable with account age over one year
Unit: RMB/CNY
Item Ending balance Reasons of un-paid or carry-over
Total 0.00 --
Other explanation:
Nil
173
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
37. Account received in advance
(1) Account received in advance
Unit: RMB/CNY
Item Ending balance Opening balance
(2) Account received in advance with over one year book age
Unit: RMB/CNY
Item Ending balance Reasons of un-paid or carry-over
Total 0.00 --
38. Contract liability
Unit: RMB/CNY
Item Ending balance Opening balance
Goods received in advance 124,328.07 569,290.34
Cooperative received in advance 9,174,311.93
Rent received in advance 5,511,111.11
Total 124,328.07 15,254,713.38
Book value has major changes in the period and causes
Unit: RMB/CNY
Item Amount changes Reason for change
Total 0.00 ——
39. Wage payable
(1) Wage payable
Unit: RMB/CNY
Item Opening balance Current increased Current decreased Ending balance
I. Short-term
1,459,244.07 7,554,939.70 8,090,706.67 923,477.10
compensation
II. Post-employment
benefit-Defined 438,973.15 438,973.15
contribution plan
Total 1,459,244.07 7,993,912.85 8,529,679.82 923,477.10
174
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
(2) Short-term compensation
Unit: RMB/CNY
Item Opening balance Current increased Current decreased Ending balance
1. Wages, bonus,
1,452,981.20 6,800,521.07 7,335,325.27 918,177.00
allowances and subsidy
2. Employee benefits 38,925.89 38,925.89
3. Social insurance 313,375.83 313,375.83
Including: Medical
293,934.41 293,934.41
insurance
Work injury
1,246.65 1,246.65
insurance
Maternity
18,194.77 18,194.77
insurance
4. Housing accumulation
332,809.57 332,809.57
fund
5. Labor union
expenditure and
6,262.87 69,307.34 70,270.11 5,300.10
personnel education
expense
Total 1,459,244.07 7,554,939.70 8,090,706.67 923,477.10
(3) Defined contribution plan
Unit: RMB/CNY
Item Opening balance Current increased Current decreased Ending balance
1. Basic endowment
430,870.22 430,870.22
insurance
2. Unemployment
8,102.93 8,102.93
insurance
Total 438,973.15 438,973.15
Other explanation:
At the end of the period, there were no arrears in employee compensation.
40. Taxes payable
Unit: RMB/CNY
Item Ending balance Opening balance
Value added tax 826,399.46 551,216.66
175
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
Corporate income tax 27,591.59 140,959.81
Individual income tax 19,002.77 23,398.74
Tax for maintaining and building cities 15,940.70 431.55
Stamp tax 11,223.31 6,043.60
Educational surtax 11,348.69 270.66
Total 911,506.52 722,321.02
Other explanation:
Nil
41. Other account payable
Unit: RMB/CNY
Item Ending balance Opening balance
Other account payable 61,407,301.04 37,882,805.52
Total 61,407,301.04 37,882,805.52
(1) Interest payable
Unit: RMB/CNY
Item Ending balance Opening balance
Important interest overdue without paid:
Unit: RMB/CNY
Borrower Amount overdue Overdue reason
Total 0.00 --
Other explanation:
Nil
(2) Dividend payable
Unit: RMB/CNY
Item Ending balance Opening balance
Other explanation, including dividends payable with over one year age and disclosure un-payment reasons:
Nil
(3) Other account payable
1) By nature
Unit: RMB/CNY
176
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
Item Ending balance Opening balance
Custodian and common benefit debts 25,501,476.16 18,728,866.44
Warranty and guarantee money 10,756,806.00 10,589,040.00
Intercourse funds 23,328,000.00 6,500,000.00
Other payable service charge (intermediary
624,528.30 832,359.55
services included)
Collection and payment 648,626.35 654,997.35
Other 547,864.23 577,542.18
Total 61,407,301.04 37,882,805.52
2) Significant other payable with over one year age
Unit: RMB/CNY
Item Ending balance Reasons of un-paid or carry-over
Custodian and common benefit debts 25,501,476.16
Wansheng Industrial Holdings (Shenzhen)
9,000,000.00 Performance bond
Co., Ltd.
Shenzhen Renhui Woodware Products Co.,
6,828,000.00 Rental deposit
Ltd.
Shenzhen Guosheng Energy Investment
6,500,000.00 Interest-free loans
Development Co., Ltd.
Total 47,829,476.16 --
Other explanation
Nil
42. Liability held for sale
Unit: RMB/CNY
Item Ending balance Opening balance
Other explanation:
Nil
43. Non-current liabilities due within one year
Unit: RMB/CNY
Item Ending balance Opening balance
Lease liabilities due within one year 1,456,782.04
Total 1,456,782.04
177
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
Other explanation:
Nil
44. Other current liabilities
Unit: RMB/CNY
Item Ending balance Opening balance
VAT received in advance 11,700.06 1,175,251.38
Total 11,700.06 1,175,251.38
Changes of short-term bond payable:
Unit: RMB/CNY
Accrual Premium/
Face Release Bond Issuing Opening Issued in interest discount Paid in Ending
Bond
value date period amount balance the Period by face amortizati the Period balance
value on
Total -- -- -- 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Other explanation:
Nil
45. Long-term loans
(1) Category
Unit: RMB/CNY
Item Ending balance Opening balance
Explanation on category of long-term loans:
Nil
Other explanation, including interest rate section:
Nil
46. Bonds payable
(1) Bonds payable
Unit: RMB/CNY
Item Ending balance Opening balance
178
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
(2) Changes of bonds payable (not including the other financial instrument of preferred stock and
perpetual capital securities that classify as financial liability)
Unit: RMB/CNY
Accrual Premium/
Face Release Bond Issuing Opening Issued in interest discount Paid in Ending
Bond
value date period amount balance the Period by face amortizati the Period balance
value on
Total -- -- -- 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(3) Convertible conditions and time for shares transfer for the convertible bonds
Nil
(4) Other financial instruments classify as financial liability
Basic information of the outstanding preferred stock and perpetual capital securities at period-end
Nil
Changes of outstanding preferred stock and perpetual capital securities at period-end
Unit: RMB/CNY
Outstanding Period-begin Current increased Current decreased Period-end
financial
Amount Book value Amount Book value Amount Book value Amount Book value
instrument
Total 0 0.00 0 0.00 0 0.00 0 0.00
Basis for financial liability classification for other financial instrument
Nil
Other explanation
Nil
47. Lease liability
Unit: RMB/CNY
Item Ending balance Opening balance
Lease Payments 215,367.24 2,907,901.38
Unrecognized financing charges 12,935.13 143,610.90
Total 228,302.37 3,051,512.28
Other explanation
Nil
179
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
48. Long-term account payable
Unit: RMB/CNY
Item Ending balance Opening balance
(1) By nature
Unit: RMB/CNY
Item Ending balance Opening balance
Other explanation:
Nil
(2) Special payable
Unit: RMB/CNY
Item Opening balance Current increased Current decreased Ending balance Causes of formation
Total 0.00 0.00 --
Other explanation:
Nil
49. Long-term wages payable
(1) Long-term wages payable
Unit: RMB/CNY
Item Ending balance Opening balance
(2) Changes of defined benefit plans
Present value of the defined benefit plans:
Unit: RMB/CNY
Item Current Period Last Period
Scheme assets:
Unit: RMB/CNY
Item Current Period Last Period
Net liability (assets) of the defined benefit plans
Unit: RMB/CNY
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:
Nil
180
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
Major actuarial assumption and sensitivity analysis:
Nil
Other explanation:
Nil
50. Accrual liability
Unit: RMB/CNY
Item Ending balance Opening balance Causes of formation
Other explanation, including relevant important assumptions and estimation:
Nil
51. Deferred income
Unit: RMB/CNY
Item Opening balance Current increased Current decreased Ending balance Causes of formation
Total 0.00 0.00 --
Item with government grants involved:
Unit: RMB/CNY
Amount
Amount Cost Assets-relate
Opening New grants reckoned in Other
Liability reckoned in reduction in Ending Balance d/income
Balance in the Period non-operatio changes
other income the period related
n revenue
Other explanation:
Nil
52. Other non-current liabilities
Unit: RMB/CNY
Item Ending balance Opening balance
Other explanation:
Nil
53. Share capital
Unit: RMB/CNY
Changes in the period (+, -)
Opening Shares
New shares Ending balance
balance Bonus share transferred Other Subtotal
issued
from capital
181
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
reserve
Total shares 551,347,947.00 551,347,947.00
Other explanation:
Nil
54. Other equity instrument
(1) Basic information of the outstanding preferred stock and perpetual capital securities at period-end
Nil
(2) Changes of outstanding preferred stock and perpetual capital securities at period-end
Unit: RMB/CNY
Outstanding Period-begin Current increased Current decreased Period-end
financial
Amount Book value Amount Book value Amount Book value Amount Book value
instrument
Total 0 0 0.00 0 0.00 0
Changes of other equity instrument, change reasons and relevant accounting treatment basis:
Nil
Other explanation:
Nil
55. Capital public reserve
Unit: RMB/CNY
Item Opening balance Current increased Current decreased Ending balance
Other capital reserve 627,834,297.85 627,834,297.85
1. Debt restructuring
482,580,588.23 482,580,588.23
income
2.Other 145,253,709.62 145,253,709.62
Total 627,834,297.85 627,834,297.85
Other explanation, including changes and reasons for changes:
Among the other capital reserves, 135,840,297.18 Yuan refers to the payment for creditor from shares assignment by whole
shareholders; majority shareholder Guosheng Energy donated 5,390,399.74 Yuan.
56. Treasury stock
Unit: RMB/CNY
Item Opening balance Current increased Current decreased Ending balance
182
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
Total 0.00 0.00
Other explanation, including changes and reasons for changes:
Nil
57. Other comprehensive income
Unit: RMB/CNY
Current Period
Less:
Less: written written in
in other other
comprehensi comprehe
ve income in nsive
Account
previous income in Belong to Belong to
Opening before Ending
Item period and previous Less: income parent minority
balance income tax balance
carried period and tax expense company shareholders
in the
forward to carried after tax after tax
period
gains and forward to
losses in retained
current earnings in
period current
period
Total other comprehensive income 0.00 0.00 0.00 0.00 0.00 0.00
Other explanation, including the active part of the hedging gains/losses of cash flow transfer to initial recognition adjustment for the
arbitraged items:
Nil
58. Reasonable reserve
Unit: RMB/CNY
Item Opening balance Current increased Current decreased Ending balance
Total 0.00 0.00
Other explanation, including changes and reasons for changes:
Nil
59. Surplus public reserve
Unit: RMB/CNY
Item Opening balance Current increased Current decreased Ending balance
Statutory surplus
32,673,227.01 32,673,227.01
reserves
183
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
Total 32,673,227.01 32,673,227.01
Other explanation, including changes and reasons for changes:
Nil
60. Retained profit
Unit: RMB/CNY
Item Current period Last Period
Retained profit at period-end before adjustment -1,200,950,240.88 -1,204,736,075.56
Retained profit at period-begin after adjustment -1,200,950,240.88 -1,204,736,075.56
Add: net profit attributable to shareholders of
-1,986,692.82 3,785,834.68
parent company for this year
Retained profit at period-end -1,202,936,933.70 -1,200,950,240.88
Adjustment for retained profit at period-begin:
1) Retroactive adjustment due to the Accounting Standards for Business Enterprise and relevant new regulations, retained profit at
period-begin has 0.00 Yuan affected;
2) Due to the accounting policy changes, retained profit at period-begin has 0.00 Yuan affected;
3) Due to the major accounting errors correction, retained profit at period-begin has 0.00 Yuan affected;
4) Consolidation range changed due to the same control, retained profit at period-begin has 0.00 Yuan affected;
5) Total other adjustment impacts 0.00 Yuan retained profit at period-begin
61. Operation revenue and operation cost
Unit: RMB/CNY
Current Period Last Period
Item
Revenue Cost Revenue Cost
Main business 160,519,280.02 151,370,945.29 108,929,796.13 100,882,228.24
Other business 4,727,297.93 1,236,041.30 8,927,684.04 2,339,395.49
Total 165,246,577.95 152,606,986.59 117,857,480.17 103,221,623.73
Whether the lower of the audited net profit before and after deduction of non-recurring gains and losses is negative
√ Yes □ No
Unit: RMB/CNY
Item This year Specific deductions Last year Specific deductions
Amount of operating
165,246,577.95 N/A 117,857,480.17 N/A
income
Total amount of
deduction items from 51,611.42 N/A 41,142.96 N/A
operating income
184
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
Proportion of total
amount of deduction
items from operating 0.03% N/A 0.03% N/A
income to operating
income
i. Business income
unrelated to the main —— —— —— ——
business
Subtotal of business
income not related to 0.00 N/A 0.00 N/A
main business
ii. Income without
—— —— —— ——
commercial substance
Subtotal of income
without commercial 0.00 N/A 0.00 N/A
substance
Amount after
deduction of operating 165,194,966.53 N/A 117,816,337.21 N/A
income
Revenue:
Unit: RMB/CNY
Contract type 1# Division 2# Division Total
Product type 132,915,435.90 32,331,142.05 165,246,577.95
Including:
Jewelry Gold 132,915,435.90 132,915,435.90
Bicycle lithium battery
32,331,142.05 32,331,142.05
materials and other
Classification by
business area
Including:
Market or customer type
Including:
Contract type
Including:
Classification by time of
185
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
goods transfer
Including:
Classification by contract
duration
Including:
Classification by sales
channel
Including:
Total 132,915,435.90 32,331,142.05 165,246,577.95
Information relating to performance obligation:
Nil
Information relating to the transaction price assigned to the remaining performance obligation:
The amount of revenue corresponding to performance obligation that have been signed but have not been fulfilled or have not been
fulfilled at the end of the period was 0.00 Yuan, including 0.00 Yuan is expected to be recognized as revenue in subsequent years,
0.00 Yuan is expected to be recognized as revenue in subsequent years, 0.00 Yuan is expected to be recognized as revenue in
subsequent years.
Other explanation
Nil
62. Tax and extras
Unit: RMB/CNY
Item Current Period Last Period
Tax for maintaining and building cities 32,894.51 34,962.95
Educational surtax 23,027.79 24,973.54
Stamp tax 58,446.51 46,243.90
Other 2,338.58 1,889.84
Total 116,707.39 108,070.23
Other explanation:
63. Sales expenses
Unit: RMB/CNY
Item Current Period Last Period
Employee compensation 1,543,121.27 1,078,110.71
186
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
Marketing promotion fees 705,365.87 1,193,544.17
Business entertainment 76,402.59 17,031.00
Business travel expenses 163,858.29 133,656.78
Lease fee 28,050.01 3,834.00
Design fee 572,145.63
Depreciation and amortization 143,941.58
Other 71,071.06 114,480.37
Total 3,303,956.30 2,540,657.03
Other explanation:
Nil
64. Administrative expenses
Unit: RMB/CNY
Item Current Period Last Period
Employee compensation 2,299,457.43 2,152,793.42
Intermediary service fee 1,496,322.29 1,427,424.80
Daily management expenses 836,063.07 911,300.72
Depreciation and amortization 1,522,762.50 292,089.38
Total 6,154,605.29 4,783,608.32
Other explanation:
Nil
65. R&D expenses
Unit: RMB/CNY
Item Current Period Last Period
Employee compensation and benefits 1,701,324.36 1,675,573.59
Direct input 368,483.15
Factory rent and utilities 178,534.58
Depreciation and amortization 251,361.22 93,256.20
Other 84,512.00 191,030.05
Total 2,037,197.58 2,506,877.57
Other explanation:
Nil
187
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
66. Financial expenses
Unit: RMB/CNY
Item Current Period Last Period
Interest income -127,249.64 -89,977.25
Commission charge etc. 23,566.49 20,827.96
Other 114,323.26 87,868.03
Total 10,640.11 18,718.74
Other explanation:
Nil
67. Other income
Unit: RMB/CNY
Sources Current Period Last Period
Government subsidy 397,876.20
Individual tax withholding fee 2,516.00 10,207.52
68. Investment income
Unit: RMB/CNY
Item Current Period Last Period
Other explanation:
Nil
69. Net exposure hedge gains
Unit: RMB/CNY
Item Current Period Last Period
Other explanation:
Nil
70. Income from change of fair value
Unit: RMB/CNY
Sources Current Period Last Period
Other explanation:
Nil
188
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
71. Credit impairment loss
Unit: RMB/CNY
Item Current Period Last Period
Bad debt loss of other account receivable -49,753.03 -9,707.78
Bad debt losses of accounts receivable -2,349,227.58 -593,472.35
Total -2,398,980.61 -603,180.13
Other explanation:
Nil
72. Losses of devaluation of asset
Unit: RMB/CNY
Item Current Period Last Period
II. Loss of inventory falling price and loss
-99,941.65 -198,181.03
of contract performance cost impairment
Total -99,941.65 -198,181.03
Other explanation:
Nil
73. Income from assets disposal
Unit: RMB/CNY
Sources Current Period Last Period
Dispose income of fixed assets 24,936.44
74. Non-operating income
Unit: RMB/CNY
Amount reckoned in current
Item Current Period Last Period
non-recurring gains/losses
Government subsidy 100,000.00
Other 5,680,409.27 6,442,649.75 5,680,409.27
Total 5,680,409.27 6,542,649.75 5,680,409.27
Government grants reckoned into current gains/losses:
Unit: RMB/CNY
Subsidy The special Assets-relate
Government Issuing Offering Amount in Amount in
Nature impact subsidy d/income-rela
grants subject causes the Period last period
current (Y/N) ted
189
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
gains/losses
(Y/N)
Other explanation:
1. Non-operation revenue last period mainly due to the rental revenue settle with the custodian, that is 5,662,149.79 Yuan and
compensation of 312,266.98 Yuan;
2. Non-operation revenue in current period mainly due to the rental revenue settle with the custodian, that is 5,182,300.00 Yuan and
compensation of 405,166.84 Yuan;
75. Non-operating expenses
Unit: RMB/CNY
Amount reckoned in current
Item Current Period Last Period
non-recurring gains/losses
Litigation compensation,
liquidated damages and late 121,651.29 498,050.00 121,651.29
fees, etc.
Other 5,182,307.93 5,190,229.29 5,182,307.93
Total 5,303,959.22 5,688,279.29 5,303,959.22
Other explanation:
In the period and last period, the operation assets for assets to be disposed are not allocated by management, relevant maintenance
and management costs are paid by the revenue and loss compensation income from assets leasing (the assets to be disposed),
reckoned into non-operating expenditure
76. Income tax expenses
(1) Income tax expenses
Unit: RMB/CNY
Item Current Period Last Period
Current income tax expense 204,836.60 140,959.81
Deferred income tax expense 729,124.08 249,411.41
Total 933,960.68 390,371.22
(2) Adjustment on accounting profit and income tax expenses
Unit: RMB/CNY
Item Current Period
Total Profit -705,595.32
Income tax measured by statutory/applicable tax rate -303,195.38
190
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
The impact of applying different tax rates to subsidiaries 34,686.70
Impact on cost, expenses and losses that unable to deducted 448,865.79
Impact on deductible temporary differences or losses deductible
753,603.57
which was un-recognized as deferred income tax assets
Income tax expenses 933,960.68
Other explanation
Nil
77. Other comprehensive income
Found more in Note 57
78. Items of cash flow statement
(1) Other cash received in relation to operation activities
Unit: RMB/CNY
Item Current Period Last Period
Interest, rent, utilities, etc. 3,776,439.39 10,999,135.69
Item cooperation 10,000,000.00
Deposits and guarantees received 6,282,000.00 7,388,109.00
Government subsidy and individual tax
400,016.00 110,207.52
handling fee refund
Employee Current Account 44,946.88
Other 10,463,236.95 26,834.21
Total 20,966,639.22 28,524,286.42
Explanation on other cash received in relation to operation activities:
Nil
(2) Other cash paid in relation to operation activities
Unit: RMB/CNY
Item Current Period Last Period
Expenses such as rent and property
3,642,689.57 5,190,228.77
management maintenance fees
Deposits and security deposits paid 6,057,078.82 6,902,256.00
Sales, management and R&D expenses 3,828,026.64 1,770,529.68
Litigation compensation, liquidated
498,050.00
damages and late fees, etc.
191
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
Handling expenses 23,566.49 20,827.96
Other 281,992.52 71,445.29
Total 13,833,354.04 14,453,337.70
Explanation on other cash paid in relation to operation activities:
Nil
(3) Cash received from other investment activities
Unit: RMB/CNY
Item Current Period Last Period
Explanation on cash received from other investment activities:
Nil
(4) Cash paid related with investment activities
Unit: RMB/CNY
Item Current Period Last Period
Explanation on cash paid related with investment activities
Nil
(5) Other cash received in relation to financing activities
Unit: RMB/CNY
Item Current Period Last Period
Explanation on other cash received in relation to financing activities:
Nil
(6) Cash paid related with financing activities
Unit: RMB/CNY
Item Current Period Last Period
Lease Payments 2,296,062.44
Total 2,296,062.44
Explanation on cash paid related with financing activities:
Nil
192
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
79. Supplementary information to statement of cash flow
(1) Supplementary information to statement of cash flow
Unit: RMB/CNY
Supplementary information Current period Last Period
1． Net profit adjusted to cash flow of
-- --
operation activities:
Net profit -1,639,556.00 4,375,706.59
Add: Assets impairment provision 2,498,922.26 801,361.16
Depreciation of fixed assets,
consumption of oil assets and depreciation of 371,811.92 385,345.58
productive biology assets
Depreciation of right-of-use assets 1,546,253.38
Amortization of intangible assets 753,000.00
Amortization of long-term deferred
expenses
Loss from disposal of fixed assets,
intangible assets and other long-term assets -24,936.44
(gain is listed with “-”)
Losses on scrapping of fixed assets
(gain is listed with “-”)
Gain/loss of fair value changes
(gain is listed with “-”)
Financial expenses (gain is listed
114,323.26
with “-”)
Investment loss (gain is listed with
“-”)
Decrease of deferred income tax
729,124.08 249,411.41
asset ((increase is listed with “-”)
Increase of deferred income tax
liability (decrease is listed with “-”)
Decrease of inventory (increase is
-619,189.48 -1,849,176.67
listed with “-”)
Decrease of operating receivable
7,017,642.37 -15,548,865.13
accounts (increase is listed with “-”)
Increase of operating payable accounts
5,654,601.08 14,800,382.46
(decrease is listed with “-”)
Other
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
Net cash flows arising from operating
15,673,932.87 3,942,228.96
activities
2. Material investment and financing not
-- --
involved in cash flow
Conversion of debt into capital
Switching Company bonds due within
one year
financing lease of fixed assets
3. Net change of cash and cash equivalents: -- --
Balance of cash at period end 33,246,957.92 19,887,978.05
Less: Balance of cash equivalent at
19,887,978.05 6,074,367.91
year-begin
Add: Balance at year-end of cash
equivalents
Less: Balance at year-begin of cash
equivalents
Net increase of cash and cash equivalents 13,358,979.87 13,813,610.14
(2) Net cash paid for obtaining subsidiary in the Period
Unit: RMB/CNY
Amount
Including: --
Including: --
Including: --
Other explanation:
Nil
(3) Net cash received by disposing subsidiary in the Period
Unit: RMB/CNY
Amount
Including: --
Including: --
Including: --
Other explanation:
Nil
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
(4) Constitution of cash and cash equivalent
Unit: RMB/CNY
Item Ending balance Opening balance
I. Cash 33,246,957.92 19,887,978.05
Including: Cash on hand 27,587.25 21,530.26
Bank deposit available for payment
33,219,370.67 19,866,447.79
at any time
Ⅲ. Balance of cash and cash equivalent at
33,246,957.92 19,887,978.05
period-end
Other explanation:
Nil
80. Notes of changes of owners’ equity
Explain the name and adjusted amount in “Other” at end of last period:
Nil
81. Assets with ownership or use right restricted
Unit: RMB/CNY
Item Ending book value Restriction reasons
Total 0.00 --
Other explanation:
Nil
82. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: RMB/CNY
Ending foreign currency
Item Convert rate Ending RMB balance converted
balance
Monetary fund -- --
Including: USD
EURO
HKD
Account receivable -- --
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
Including: USD
EURO
HKD
Long-term loans -- --
Including: USD
EURO
HKD
Other explanation:
Nil
(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
83. Hedging
Disclosed hedging items and relevant hedging instrument based on hedging’s category, disclosed qualitative and quantitative
information for the arbitrage risks:
Nil
84. Government subsidy
(1) Government subsidy
Unit: RMB/CNY
Amount reckoned into current
Category Amount Item
gains/losses
High-tech Enterprise Subsidy 397,876.20 Other income 397,876.20
(2) Government subsidy rebate
□Applicable √Not applicable
Other explanation:
Nil
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
85. Other
Nil
VIII. Changes of consolidation range
1. Enterprise combined under different control
(1) Enterprise combined under different control in the Period
Unit: RMB/CNY
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:
Nil
(2) Combination cost and goodwill
Unit: RMB/CNY
Consolidation cost
--Cash
--Fair value of non-cash assets
--Fair value of debts issued or assumed
--Fair value of equity securities issued
-- Fair value of contingent consideration
--Fair value of the equity prior to the purchasing date
--Other
Total combination cost
Less: shares of fair value of identifiable net assets acquired
Goodwill/merger cost is less than the shares of fair value of
identifiable net assets acquired
Determination method for fair value of the combination cost and contingent consideration and changes:
Nil
Main reasons for large goodwill resulted:
Nil
Other explanation:
Nil
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
(3) Identifiable assets and liability on purchasing date under the acquiree
Unit: RMB/CNY
Fair value on purchasing date Book value on purchasing date
Assets:
Monetary funds
Account receivable
Inventory
Fixed assets
Intangible assets
Liability:
Loan
Account payable
Deferred tax liabilities
Net assets
Less: Minority interests
Net assets acquired
Determination method for fair value of the identifiable assets and liabilities:
Nil
Contingent liability of the acquiree bear during combination:
Nil
Other explanation:
Nil
(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
Nil
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
(6) Other explanation
Nil
2. Enterprise combine under the same control
(1) Enterprise combined under the same control in the Period
Unit: RMB/CNY
Income of the Net profit of
combined the combined
Income of the Net profit of
party from party from
Basis of Standard to combined the combined
Equity ratio period-begin period-begin
Combined combined Combination determine the party during party during
obtained in of of
party under the date combination the the
combination combination combination
same control date comparison comparison
to the to the
period period
combination combination
date date
Other explanation:
(2) Combination cost
Unit: RMB/CNY
Consolidation cost
--Cash
-- Book value of non-cash assets
- Book value of debts issued or assumed
-- The face value of the equity securities issued
--Contingent consideration
Explanation on contingent consideration and its changes:
Other explanation:
(3) Assets and liability of the combined party on combination date
Unit: RMB/CNY
Consolidation date End of last period
Assets:
Monetary funds
Account receivable
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
Inventory
Fixed assets
Intangible assets
Liability:
Loan
Account payable
Net assets
Less: Minority interests
Net assets acquired
Contingent liability of the combined party bear during combination:
Other 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 lost controlling rights while dispose subsidiary on one time or not
□ Yes √ No
Whether lost controlling rights in the Period while dispose subsidiary on two or more steps or not
□ Yes √ No
5. Other reasons for consolidation range changed
Reasons for changed on consolidation range (such as new subsidiary established, subsidiary liquidated etc.)And relevant information
6. Other
IX. Equity in other entity
1. Equity in subsidiary
(1) Constitute of enterprise group
Main operation Share-holding ratio
Subsidiary Registered place Business nature Acquired way
place Directly Indirectly
200
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
Shenzhen
Sales of bicycles
Emmelle Industry Shenzhen Shenzhen 70.00% Investment
and spare parts
Co., Ltd.
Shenzhen Xinsen
Jewelry,
Jewelry Gold
Shenzhen Shenzhen diamonds, gold 65.00% Investment
Supply Chain
sales
Co., Ltd.
Shenzhen Software and
Emmelle Cloud information
Shenzhen Shenzhen 49.00% Investment
Technology Co., technology
Ltd. service sales
Explanation on share-holding ratio in subsidiary different from ratio of voting right:
Nil
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:
Subsidiary of the Company-Shenzhen Emmelle Industry Co., Ltd. (with 70% equity held by the Company) holds 70% equity of
Shenzhen Emmelle Cloud Technology Co., Ltd
Controlling basis for the structuring entity included in consolidated range:
Nil
Basis on determining to be an agent or consignor:
Nil
Other explanation:
Nil
(2) Important non-wholly-owned subsidiary
Unit: RMB/CNY
Dividend announced to
Share-holding ratio of Gains/losses attributable Ending equity of
Subsidiary distribute for minority in
minority to minority in the Period minority
the Period
Shenzhen Emmelle
30.00% -490,393.66 1,096,312.26
Industry Co., Ltd.
Shenzhen Xinsen Jewelry
Gold Supply Chain Co., 35.00% 858,925.37 13,396,980.54
Ltd.
Shenzhen Emmelle
Cloud Technology Co., 51.00% -21,394.89 590,902.72
Ltd.
Explanation on share-holding ratio of minority different from ratio of voting right:
Nil
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
Other explanation:
Subsidiary of the Company-Shenzhen Emmelle Industry Co., Ltd. (with 70% equity held by the Company) holds 70% equity of
Shenzhen Emmelle Cloud Technology Co., Ltd
(3) Main finance of the important non-wholly-owned subsidiary
Unit: RMB/CNY
Ending balance Opening balance
Subsidia Non-curr Non-curr Non-curr Non-curr
Current Total Current Total Current Total Current Total
ry ent ent ent ent
assets assets liability liabilities assets assets liability liabilities
assets liability assets liability
Shenzhe
n
11,621,9 1,768,22 13,390,1 9,647,19 67,370.8 9,714,57 12,402,5 2,418,25 14,820,7 9,510,50 9,510,50
Emmelle 0.00
48.72 2.84 71.56 9.54 6 0.40 02.99 0.69 53.68 6.99 6.99
Industry
Co., Ltd.
Shenzhe
n Xinsen
Jewelry
45,488,7 953,351. 46,442,0 9,533,18 38,957.3 9,572,13 44,211,8 36,552.0 44,248,4 9,832,52 9,832,52
Gold 0.00
30.47 29 81.76 0.01 2 7.33 49.29 2 01.31 9.38 9.38
Supply
Chain
Co., Ltd.
Shenzhe
n
Emmelle
1,974,47 1,974,47 2,037,69 2,037,69 26,068.0 26,068.0
Cloud 0.00 4,797.11 0.00 4,797.11 0.00 0.00
2.85 2.85 4.53 4.53 2 2
Technolo
gy Co.,
Ltd.
Unit: RMB/CNY
Current Period Last Period
Cash flow Cash flow
Total Total
Subsidiary Operation from Operation from
Net profit comprehensi Net profit comprehensi
revenue operation revenue operation
ve income ve income
activity activity
Shenzhen
Emmelle 10,404,054.3
1,860,173.32 -1,634,645.53 -1,634,645.53 3,160,952.74 -1,203,910.71 -1,203,910.71 -1,652,170.89
Industry Co., 2
Ltd.
Shenzhen 132,915,435. 2,454,072.50 2,454,072.50 6,581,755.61 87,064,073.7 2,700,330.30 2,700,330.30 -18,103,601.1
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
Xinsen 90 4 7
Jewelry Gold
Supply Chain
Co., Ltd.
Shenzhen
Emmelle
Cloud 2,956,106.52 -41,950.77 -41,950.77 92,310.32 952,935.51 11,626.51 11,626.51 -117,837.47
Technology
Co., Ltd.
Other explanation:
Nil
(4) Major restriction on using corporate assets and liquidate corporate debts
Nil
(5) Financial or other supporting provided to structuring entity that included in consolidated financial
statement
Nil
Other explanation:
Nil
2. Transaction that has owners equity shares changed in subsidiary but still with controlling rights
(1) Owners equity shares changed in subsidiary
Nil
(2) Impact on minority’s interest and owners’ equity attributable to parent company
Unit: RMB/CNY
Purchase cost/disposal consideration
--Cash
--Fair value of non-cash assets
Purchase cost/total disposal consideration
Less: Subsidiary's share of net assets calculated based on the
proportion of acquired/disposed equity
Difference
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
Including: Adjust the capital reserve
Adjusted surplus reserve
Adjusted undistributed profit
Other explanation
Nil
3. Equity in joint venture and associated enterprise
(1) Important joint venture or associated enterprise
Joint venture or Share-holding ratio
Main operation Accounting
associated Registered place Business nature
place Directly Indirectly treatment
enterprise
Share-holding ratio or shares enjoyed different from voting right ratio:
Nil
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:
Nil
(2) Main financial information of the important joint venture
Unit: RMB/CNY
Ending balance/Current period Opening balance/Last period
Current assets
Including: cash and cash equivalent
Non current assets
Total assets
Current liabilities
Non current liabilities
Total liabilities
Minority's interest
Shareholders' equity attributable to the
parent company
Share of net assets calculated by
shareholding ratio
Adjustment items
--Goodwill
204
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
--Unrealized profit of internal trading
-- Other
Book value of equity investment in joint
venture
Fair value of the equity investment of joint
ventures with public offers concerned
Operating income
Financial expenses
Income tax expenses
Net profit
Net profit of discontinuing operation
Other comprehensive income
Total comprehensive income
Dividends received from joint venture in
the year
Other explanation
Nil
(3) Main financial information of the important associated enterprise
Unit: RMB/CNY
Ending balance/Current Period Opening balance/Last Period
Current assets
Non current assets
Total assets
Current liabilities
Non current liabilities
Total liabilities
Minority's interest
Equity attributable to shareholder of parent
company
Share of net assets measured by
shareholding
Adjustment
--Goodwill
--Unrealized profit of internal trading
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
-- Other
Book value of equity investment in
associated enterprise
Fair value of the equity investment of
associated enterprise with public offers
concerned
Operating income
Net profit
Net profit of discontinuing operation
Other comprehensive income
Total comprehensive income
Dividends received from associated
enterprise in the year
Other explanation
Nil
(4) Financial summary for un-important joint venture or associated enterprise
Unit: RMB/CNY
Ending balance/Current Period Opening balance/Last Period
Joint venture： -- --
Total numbers measured by share-holding
-- --
ratio
Associated enterprise： -- --
Total numbers measured by share-holding
-- --
ratio
Other explanation
Nil
(5) Assets transfer ability has major restriction from joint venture or associated enterprise
Nil
(6) Excess losses from joint venture or associated enterprise
Unit: RMB/CNY
Un-confirmed losses not
Joint venture or associated Cumulative un-confirmed Cumulative un-confirmed
recognized in the Period (or net
enterprise losses losses at period-end
profit enjoyed in the Period)
Other explanation
206
深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
Nil
(7) Un-confirmed commitment with investment concerned with joint venture
Nil
(8) Contingent liability with investment concerned with joint venture or associated enterprise
Nil
4. Co-runs operation
Share-holding ratio/share enjoyed
Name Main operation place Registered place Business nature
Directly Indirectly
Share-holding ratio or shares enjoyed different from voting right ratio:
Nil
If the co-runs entity is the separate entity, basis of the co-runs classification
Nil
Other explanation
Nil
5. Equity in structuring entity that excluding in the consolidated financial statement
Relevant explanation
Nil
6. Other
Nil
X. Risk related with financial instrument
The major financial instruments of the Company consist of monetary fund, account receivable, other account receivable, account
payable and other account payable, etc. details of these financial instruments are disclosed in the relevant notes. Risks relating to
these financial instruments and risk management policies adopted by the Company to minimize these risks are detailed as follows.
Management of the Company manages and monitors the risk exposures, to make sure they are under control.
1. Risk management targets and policies
The objectives of the Company’s risk management is to balance the risk and income, reduce the negative risk impact of operating
performance to the lowest level, maximize the interests of shareholders and other equity investors. Based on these objectives, the
Company has established risk management policies to identify and analyze the risks faced by the Company, set adequate risk
acceptable level and designed relevant internal control system to monitor the level of risks. The Company regularly reviews these
policies and related internal control system to adapt to market development and change of operating activities of the Company. The
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
major risks arising from the Company’s financial instruments are credit risk and liquidity risk.
(1) Credit risk
Credit risk represents the risk of financial loss suffered by a party to a financial instrument due to failure of performance obligation of
another party.
Credit risk of the Company is managed by category. Credit risk mainly arises from bank deposits and trade receivables. Since the
bank deposits of the Company are mainly placed with those banks of high credit rating, the Company expects no significant credit
risk on bank deposits.
As for trade receivables, the Company establishes relevant policies to control credit risk exposure. The Company, based on financial
position of debtors, their credit records, market conditions and other factors, makes assessment on debtors’ credit quality and sets
relevant limit on amount of debt and credit term. The maximum credit risk exposure assumed by the Company equals to the sum of
carrying value of every financial asset in the balance sheet. The Company provides no guarantee that may lead it to be exposed to
credit risks.
(2) Liquidity risk
Liquidity risk refers to the risk of capital shortage of the Company when performing settlement obligation via delivery of cash or
other financial assets.
When managing liquidity risk, the Company maintains and monitors such cash and cash equivalents as deemed adequate by the
management, so as to satisfy its operation needs and minimize influence of fluctuation of cash flow. Management of the Company
monitors application of bank borrowings to make sure it complies with relevant borrowing agreements.
2. Capital management
The capital management policy of the Company is designed to ensure sustainable operation Of the Company so as to bring
shareholders return and benefit other stakeholders, and to minimize capital cost by maintaining optimal capital structure.
In order to maintain and adjust capital structure, the Company may adjust share dividend paid to shareholders or issue new shares.
The Company monitors capital structure based on gearing ratio (total liabilities divided by total assets). As at 31 December 2021, the
gearing ratio of the Company was 75.35%.
XI. Disclosure of fair value
1. Ending fair value of the assets and liabilities measured by fair value
Unit: RMB/CNY
Ending fair value
Item
First-order Second-order Third-order Total
I. Sustaining measured by
-- -- -- --
fair value
II. Non-sustaining
-- -- -- --
measured by fair value
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
2. Recognized basis for the market price sustaining and non-persistent measured by fair value on
first-order
Nil
3. Valuation technique and qualitative and quantitative information on major parameters for the fair value
measure sustaining and non-persistent on second-order
Nil
4. Valuation technique and qualitative and quantitative information on major parameters for the fair value
measure sustaining and non-persistent on third-order
Nil
5. Adjustment information and sensitivity analysis of unobservable parameters for the fair value measure
sustaining and non-persistent on third-order
Nil
6. Sustaining items measured by fair value, as for the conversion between at all levels, reasons for
conversion and policy for conversion time point
Nil
7. Changes of valuation technique in the Period
Nil
8. Financial assets and liability not measured by fair value
Nil
9. Other
Nil
XII. Related party and related transactions
1. Parent company of the enterprise
Share-holding ratio
Voting right ratio on
Parent company Registered place Business nature Registered capital on the enterprise for
the enterprise
parent company
Explanation on parent company of the enterprise
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
The Company has no parent company so far
Ultimate controller of the Company: nil
Other explanation:
Controlling shareholder and actual controller of the Company have changed on 20 February 2017. Before changed, the first majority
shareholder of the Company was Shenzhen Guosheng Energy Investment Development Co., Ltd., actual controller was Mr. Ji Hanfei;
the Company has no actual controller and controlling shareholder after changed. Found more in the Annual Report 2016 released on
27 April 2017 and “Reply on Surveillance Attention Letter on CBC from Shenzhen Stock Exchange” released on 26 May 2017
2. Subsidiary of the Enterprise
Found more in Note IX-1
3. Associated enterprise and joint venture
Found more in Note IX-3
Other associated enterprise and joint venture that have related transaction with the Company in the Period or occurred in previous
period
Joint venture or associated enterprise Relationship with the Company
Other explanation
Nil
4. Other related party
Other related party Relationship with the Company
Supervisor of the Company Li Jialin is the legal person of the
Shenzhen Huahui Tongda Industrial Co., Ltd.
enterprise
Shenzhen Zuanjinsen Jewelry Co., Ltd. Subsidiary Xinsen Jewelry Shareholder
Shenzhen Guosheng Energy Investment Development Co., Ltd. The first majority shareholder
Other explanation
11.52 percent shares of the Company are held by Shenzhen Guosheng Energy Investment Development Co., Ltd.
5. Related transaction
(1) Goods purchasing, labor service providing and receiving
Goods purchasing/labor service receiving
Unit: RMB/CNY
Transaction Approved transaction Whether more than
Related party Current Period Last Period
content amount the transaction amount
Goods sold/labor service providing
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
Unit: RMB/CNY
Related party Transaction content Current Period Last Period
Explanation on goods purchasing, labor service providing and receiving
Nil
(2) Related trusteeship/contract and delegated administration/outsourcing
Trusteeship/contract
Unit: RMB/CNY
Income from
Client/ Entrusting party/ Yield pricing
Assets type Starting date Maturity date trusteeship/contra
contract-out party contractor basis
ct
Explanation on related trusteeship/contract
Nil
Delegated administration/outsourcing
Unit: RMB/CNY
Pricing basis of Trustee
Client/ Entrusting party/ trustee fee/outsourcing
Assets type Starting date Maturity date
contract-out party contractor fee/outsourcing fee recognized in
fee the Period
Explanation on related administration/outsourcing
Nil
(3) Related lease
As a lessor for the Company:
Unit: RMB/CNY
Lease income in recognized in Lease income in recognized last
Lessee Assets type
the Period the Period
As a lessee for the Company:
Unit: RMB/CNY
Lease income in recognized in Lease income in recognized last
Lessor Assets type
the Period the Period
Explanation on related lease
Nil
(4) Related guarantee
As a guarantor for the Company
Unit: RMB/CNY
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
Guarantee completed
Secured party Amount guarantee Starting date Maturity date
(Y/N)
As a secured party for the Company
Unit: RMB/CNY
Guarantee completed
Guarantor Amount guarantee Starting date Maturity date
(Y/N)
Explanation on related guarantee
Nil
(5) Borrowed funds of related party
Unit: RMB/CNY
Related party Borrowed funds Starting date Due date Note
Borrowing
Lending
(6) Assets transfer and debt restructuring of related party
Unit: RMB/CNY
Related party Transaction content Current Period Last Period
(7) Remuneration of key manager
Unit: RMB/CNY
Item Current Period Last Period
Remuneration of key manager 1,457,847.63 1,600,350.50
(8) Other related transactions
Nil
6. Receivable/payable items of related parties
(1) Receivable item
Unit: RMB/CNY
Ending balance Opening balance
Item Related party
Book balance Bad debt provision Book balance Bad debt provision
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
(2) Payable item
Unit: RMB/CNY
Item Related party Ending book balance Opening book balance
Shenzhen Guosheng Energy
Other account payable Investment Development Co., 6,500,000.00 6,500,000.00
Ltd.
7. Commitments of related party
Nil
8. Other
Nil
XIII. Share-based payment
1. General share-based payment
□Applicable √Not applicable
2. Share-based payment settled by equity
□Applicable √Not applicable
3. Share-based payment settled by cash
□Applicable √Not applicable
4. Revised and termination on share-based payment
Nil
5. Other
Nil
XIV. Commitment or contingency
1. Important commitments
Important commitments in balance sheet date
Nil
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
2. Contingency
(1) Contingency on balance sheet date
Nil
(2) For the important contingency not necessary to disclosed by the Company, explained reasons
The Company has no important contingency that need to disclosed
3. Other
Nil
XV. Events after balance sheet date
1. Important non-adjustment items
Unit: RMB/CNY
Impact on financial status and Reasons on un-able to estimated
Item Content
operation results the impact number
2. Profit distribution
Unit: RMB/CNY
3. Sales return
4. Other events after balance sheet date
On August 4, 2020, CBC entered into the Cooperation Contract of Zhonghua Garden Phase II Urban Renewal and Reconstruction
Project (hereinafter referred to as Cooperation Contract) with Shenzhen Jianzhi Industrial Development Co., Ltd (hereinafter referred
to as Jianzhi Company), in order to working together to promote the urban renewal of Zhonghua Garden Phase II and solve the
historical legacy of licensing issues. And on the date of contract, CBC received a contract payment of 10 million yuan from Jianzhi
Company. On September 24, 2021, in view of the fact that during the project development process, the Standing Committee of
Shenzhen People’s Congress issued and implemented the Regulations on Urban Renewal of Shenzhen Special Economic Zone on
March 1, 2021, as a result, the residents’ willingness to renew which the project should obtain before applying for the plan to
demolish and rebuild urban renewal units increased from 90% to 95%, and the company’s basis for fulfilling the Cooperation
Contract had major changes. In order to better solve the problem of handling the property right certificates left by the residents of
Zhonghua Garden Phase II, after deliberation at the first extraordinary meeting of shareholders general meeting for year of 2021,
CBC decided to terminate the performance of the Cooperation Contract and no longer be a partner of the project.
On February 23, 2022, Jianzhi Company sued CBC for unilaterally terminating the Contract through a shareholders’ general meeting,
demanding the CBC to refund the 10 million yuan paid and the corresponding interest of 859,000 yuan, and demanding the CBC to
compensate 20 million yuan, the Jianzhi Company has applied for property preservation, the 880000 yuan bank deposits of CBC was
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
frozen. As of April 18, 2022, the case has not yet been heard.
According to the Analysis of Jianzhi Company sued CBC issued by Guangdong Asia Laws Firm on March 28, 2022, the evidence
submitted by Jianzhi Company could not support its litigation request, and the CBC had completed the conditions of the return
revenue as agreed in the Cooperation Contract, termination of the Contract was in accordance with the legal provision. The CBC
believes that they has completed part of the works agreed in Cooperation Contract, and should get 6 million yuan as agreed in the
Contract, so CBC filed a counterclaim agsinst Jianzhi Company, demanding to pay 6 million yuan for the return income of the
project, and the lawyer believes that the claim has a factual and legal basis.
In summary CBC believes that the above mentioned does not have a material impact on the financial statement for year of 2021, and
no provision for the accrual liability, however, there is uncertainty about the payment of cooperation deposit in the future, so the
cooperation deposit received in advance of 10 million yuan will show as other account payable.
XVI. Other important events
1. Previous accounting errors collection
(1) Retrospective restatement
Unit: RMB/CNY
Impact items of statement
Correction content Treatment procedures Cumulative impacted number
during a comparison
(2) Prospective application
Reasons for prospective application
Correction content Approval procedures
adopted
2. Debt restructuring
Nil
3. Assets replacement
(1) Non-monetary assets change
Nil
(2) Other assets replacement
Nil
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
4. Pension plan
Nil
5. Discontinued operations
Unit: RMB/CNY
Discontinued
operations profit
Income tax
Item Revenue Expenses Total Profit Net profit attributable to
expenses
owners of parent
company
Other explanation
Nil
6. Segment
(1) Recognition basis and accounting policy for reportable segment
Nil
(2) Financial information for reportable segment
Unit: RMB/CNY
Item Offset between segments Total
(3) The Company has no reportable segments, or unable to disclose total assets and total liability for
reportable segments, explain reasons
Nil
(4) Other explanation
Nil
7. Major transaction and events makes influence on investor’s decision
Nil
8. Other
Nil
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XVII. Principle notes of financial statements of parent company
1. Account receivable
(1) By category
Unit: RMB/CNY
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
Account receivable
with bad debt 21,655,8 4,990,68 16,665,19 7,503,671 2,251,101 5,252,570.0
77.75% 23.05% 28.23% 30.00%
provision accrual by 72.02 2.02 0.00 .53 .47 6
single basis
Including:
Accounts receivable
with a significant
18,925,6 3,785,13 15,140,53
single amount but a 67.95% 20.00%
66.88 3.38 3.50
separate provision for
bad debts
Accounts with single
minor amount but
2,730,20 1,205,54 1,524,656 7,503,671 2,251,101 5,252,570.0
with bad debts 9.80% 44.16% 28.23% 30.00%
5.14 8.64 .50 .53 .47 6
provision accrued
individually
Account receivable
with bad debt 6,195,91 18,587.7 6,177,323 19,079,60 19,022,365.
22.25% 0.30% 71.77% 57,238.82 0.30%
provision accrual by 1.60 4 .86 4.72 90
portfolio
Including:
Account receivable
withdrawal bad debt
provision by group of
6,195,91 18,587.7 6,177,323 19,079,60 19,022,365.
credit risk 22.25% 0.30% 71.77% 57,238.82 0.30%
1.60 4 .86 4.72 90
characteristics
(Aging analysis
method)
27,851,7 5,009,26 22,842,51 26,583,27 2,308,340 24,274,935.
Total 100.00% 17.99% 100.00% 8.68%
83.62 9.76 3.86 6.25 .29 96
Bad debt provision accrual on single basis: Accounts with single significant amount but with bad debts provision accrued
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
individually
Unit: RMB/CNY
Ending balance
Name
Book balance Bad debt provision Accrual ratio Accrual causes
The payment is overdue
Guangshui Jiaxu Energy
18,925,666.88 3,785,133.38 20.00% and there is an
Technology Co., Ltd.
impairment risk
Total 18,925,666.88 3,785,133.38 -- --
Bad debt provision accrual on single basis: Accounts with single minor amount but with bad debts provision accrued individually
Unit: RMB/CNY
Ending balance
Name
Book balance Bad debt provision Accrual ratio Accrual causes
Suzhou Jiaxin Economic Expected to be difficult
888,757.00 444,378.50 50.00%
Trade Co., Ltd. to recover
Dongguan Daxiang New Expected to be difficult
741,734.00 222,520.20 30.00%
Energy Co., Ltd. to recover
Suzhou Daming Vehicle Expected to be difficult
634,738.00 317,369.00 50.00%
Industry Co., Ltd. to recover
Guangdong Xinlingjia Expected to be difficult
348,136.00 104,440.80 30.00%
New Energy Co., Ltd. to recover
Tianjin Huihui Electric Expected to be difficult
116,840.14 116,840.14 100.00%
Vehicle Co., Ltd. to recover
Total 2,730,205.14 1,205,548.64 -- --
Bad debt provision accrual on single basis:
Unit: RMB/CNY
Ending balance
Name
Book balance Bad debt provision Accrual ratio Accrual causes
Bad debt provision accrual on portfolio: Account receivable withdrawal bad debt provision by aging analysis method
Unit: RMB/CNY
Ending balance
Name
Book balance Bad debt provision Accrual ratio
Within one year (one year
5,147,965.60 15,443.90 0.30%
included)
1-2 years (2 years included) 1,038,231.00 3,114.69 0.30%
2-3 years (3 years included) 9,715.00 29.15 0.30%
Total 6,195,911.60 18,587.74 --
Explanation on portfolio basis:
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The account receivable of CBC with a single significant amount are those with a single amount of 5 million yuan
more.
Bad debt provision accrual on portfolio:
Unit: RMB/CNY
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
Unit: RMB/CNY
Account age Ending balance
Within one year (one year included) 24,190,472.62
Within one year (one year included) 24,190,472.62
1-2 years 2,238,918.00
2-3 years 1,422,393.00
Over 3 years 0.00
3-4 years 0.00
4-5 years 0.00
Over 5 years 0.00
Total 27,851,783.62
(2) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
Unit: RMB/CNY
Current changes
Category Opening balance Collected or Ending balance
Accrual Write off Other
reversal
Bad debt
provision for
2,308,340.29 4,250,422.74 1,549,493.27 5,009,269.76
accounts
receivable
Total 2,308,340.29 4,250,422.74 1,549,493.27 0.00 0.00 5,009,269.76
Including important amount of bad debt provision collected or reversal in the period:
Unit: RMB/CNY
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
Enterprise Amount collected or reversal Collection way
Total 0.00 --
Nil
(3) Account receivables actually charge-off during the reporting period
Unit: RMB/CNY
Item Amount charge-off
Including major account receivables charge-off:
Unit: RMB/CNY
Amount cause by
Procedure for
Enterprise Nature Amount charge-off Causes of charge-off related transactions
charge-off
or not (Y/N)
Total -- 0.00 -- -- --
Explanation on account receivable charge-off:
Nil
(4) Top five account receivables collected by arrears party at ending balance
Unit: RMB/CNY
Ending balance of accounts Proportion of total closing Ending balance of bad bet
Name
receivable balance of accounts receivable provision
Guangshui Jiaxu Energy
18,925,666.88 67.95% 3,785,133.38
Technology Co., Ltd.
Guangshui Dongzhi New
Energy Material Technology 2,660,776.60 9.55% 7,982.33
Co., Ltd.
Hubei Teston Electronic
1,138,000.00 4.09% 3,414.00
Technology Co., Ltd.
Licheng District Runhan
Electric Vehicle Operation 1,115,930.00 4.01% 3,347.79
Department
Jinan Yuxintai Sales Co., Ltd. 1,025,755.00 3.68% 3,077.27
Total 24,866,128.48 89.28% --
(5) Assets and liability resulted by account receivable transfer and continuous involvement
Nil
Other explanation:
Nil
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(6) Account receivable derecognition due to transfer of financial assets
Nil
2. Other account receivable
Unit: RMB/CNY
Item Ending balance Opening balance
Other account receivable 70,451.01 115,263.05
Total 70,451.01 115,263.05
(1) Interest receivable
1) Category
Unit: RMB/CNY
Item Ending balance Opening balance
2) Important overdue interest
Impairment (Y/N) and
Borrower Ending Balance Overdue time Overdue reason
judgment basis
Total 0.00 -- -- --
Other explanation:
Nil
3) Accrual of bad debt provision
□Applicable √Not applicable
(2) Dividend receivable
1) Category
Unit: RMB/CNY
Item (or invested company) Ending balance Opening balance
2) Important dividend receivable with over one year aged
Unit: RMB/CNY
Item (or invested Causes of failure for Impairment (Y/N) and
Ending balance Account age
company) collection judgment basis
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Total 0.00 -- -- --
3) Accrual of bad debt provision
□Applicable √Not applicable
Other explanation:
Nil
(3) Other account receivable
1) By nature
Unit: RMB/CNY
Account nature Ending book balance Opening book balance
Deposit or margin 70,963.00 105,713.00
Payment for equipment 11,400.00 11,400.00
Reserve 200.00 10,396.88
Total 82,563.00 127,509.88
2) Accrual of bad debt provision
Unit: RMB/CNY
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 January 1,
12,246.83 12,246.83
2021
January 1, 2021 balance
—— —— —— ——
in the current period
Reversal in Current
134.84 134.84
Period
Balance on December 31,
12,111.99 12,111.99
2021
Change of book balance of loss provision with amount has major changes in the period
□Applicable √Not applicable
By account age
Unit: RMB/CNY
Account age Book balance
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
Within one year (one year included) 0.00
1-2 years 70,663.00
Over 3 years 11,900.00
3-4 years 200.00
4-5 years 11,700.00
Total 82,563.00
3) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
Unit: RMB/CNY
Current changes
Opening
Category Collected or Ending balance
balance Accrual Write off Other
reversal
Bad debt provision
12,246.83 134.84 12,111.99
for other receivables
Total 12,246.83 0.00 134.84 0.00 0.00 12,111.99
Nil
Important amount of bad debt provision switch-back or collection in the period:
Unit: RMB/CNY
Enterprise Amount switch-back or collection Collection way
Total 0.00 --
Nil
4) Other account receivables actually charge-off during the reporting period
Unit: RMB/CNY
Item Amount charge-off
Including major other account receivables charge-off:
Unit: RMB/CNY
Amount cause by
Procedure for
Enterprise Nature Amount charge-off Causes of charge-off related transactions
charge-off
or not (Y/N)
Total -- 0.00 -- -- --
Other Explanation on account receivable charge-off
Nil
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5) Top 5 other account receivable collected by arrears party at ending balance
Unit: RMB/CNY
Proportion in total
other account Ending balance of
Enterprise Nature Ending Balance Account age
receivables at bad debt provision
period-end
Shenye Pengji
Deposit or margin 60,222.00 1-2 years 72.94% 180.67
(Group) Co., Ltd.
Shenzhen Hongkang
Payment for
Instrument 11,400.00 Over 5 years 13.81% 11,400.00
equipment
Technology Co., Ltd.
Shenzhen Pengji
Property Management Deposit or margin 10,441.00 1-2 years 12.65% 31.32
Service Co., Ltd.
Shenzhen Color Life
Property Management
Deposit or margin 300.00 Over 5 years 0.36% 300.00
Co., Ltd. Lianxin
Home Branch
Nongfu Spring
Deposit or margin 200.00 4-5 years 0.24% 200.00
Deposit
Total -- 82,563.00 -- 100.00% 12,111.99
6) Account receivable with government grants involved
Unit: RMB/CNY
Time, amount and basis
Enterprise Government grants Ending Balance Ending account age of amount collection
estimated
Nil
7) Other account receivable derecognition due to financial assets transfer
Nil
8) Assets and liability resulted by other account receivable transfer and continuous involvement
Nil
Other explanation:
Nil
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3. Long-term equity investment
Unit: RMB/CNY
Ending balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Investment for
21,350,000.00 1,389,620.27 19,960,379.73 21,350,000.00 1,389,620.27 19,960,379.73
subsidiary
Total 21,350,000.00 1,389,620.27 19,960,379.73 21,350,000.00 1,389,620.27 19,960,379.73
(1) Investment for subsidiary
Unit: RMB/CNY
Changes in the period (+, -)
Opening Ending balance
The invested Accrual of Ending Balance
Balance Additional Capital of impairment
entity impairment Other (Book value)
(Book value) investment reduction provision
provision
Shenzhen
Emmelle
10,379.73 10,379.73 1,389,620.27
Industry Co.,
Ltd.
Shenzhen
Xinsen Jewelry
19,950,000.00 19,950,000.00
Gold Supply
Chain Co., Ltd.
Total 19,960,379.73 0.00 0.00 0.00 0.00 19,960,379.73 1,389,620.27
(2) Investment for associates and joint venture
Unit: RMB/CNY
Changes in the period (+, -)
Ending
Other Cash
Opening Investme Accrual Ending balance
Additiona comprehe dividend
Funded Balance nt gains Other of Balance of
l Capital nsive or profit
enterprise (Book recognize equity impairme Other (Book impairme
investmen reduction income announce
value) d under change nt value) nt
t adjustmen d to
equity provision provision
t issued
I. Joint venture
Subtotal 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
II. Associated enterprise
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Subtotal 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(3) Other explanation
Nil
4. Operation revenue and operation cost
Unit: RMB/CNY
Current Period Last Period
Item
Revenue Cost Revenue Cost
Main business 23,505,830.29 23,100,454.32 20,057,964.04 19,427,326.43
Other business 4,693,393.21 1,232,802.37 8,821,133.12 2,273,363.81
Total 28,199,223.50 24,333,256.69 28,879,097.16 21,700,690.24
Revenue:
Unit: RMB/CNY
Contract type 1# Division 2# Division Total
Product type 28,199,223.50 28,199,223.50
Including:
Bicycle lithium battery
28,199,223.50 28,199,223.50
materials and other
Classification by
business area
Including:
Market or customer type
Including:
Contract type
Including:
Classification by time of
goods transfer
Including:
Classification by contract
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duration
Including:
Classification by sales
channel
Including:
Total 28,199,223.50 28,199,223.50
Information relating to performance obligation:
Nil
Information relating to the transaction price assigned to the remaining performance obligation:
The amount of income corresponding to the performance obligations that have been signed at the end of this reporting period but
have not yet been fulfilled or have not done with fulfillment is 0.00 yuan, among them, yuan of revenue is expected to be recognized
in YEAR, yuan of revenue is expected to be recognized in YEAR, and yuan of revenue is expected to be recognized in YEAR.
Other explanation:
Nil
5. Investment income
Unit: RMB/CNY
Item Current Period Last Period
6. Other
Nil
XVIII. Supplementary Information
1. Current non-recurring gains/losses
√Applicable □Not applicable
Unit: RMB/CNY
Item Amount Note
Governmental subsidy reckoned into current
gains/losses (except for those with normal
operation business concerned, and conform
to the national policies & regulations and are 397,876.20
continuously enjoyed at a fixed or
quantitative basis according to certain
standards)
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
Switch-back of provision of impairment of
account receivable and contract assets which 1,881,334.27
are treated with separate depreciation test
Other non-operating income and expenditure
376,450.05
except for the aforementioned items
Less: Impact on income tax 18.42
Impact on minority shareholders’ equity 93,462.09
Total 2,562,180.01 --
Details of other gains/losses items that meets the definition of non-recurring gains/losses:
□ Applicable √ Not applicable
There are no other gains/losses items that meet the definition of non-recurring gains/losses in the Company.
Explain the items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss in Q&A
Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss
□ Applicable √ Not applicable
2. ROE and EPS
Earnings per share
Profits during report period Weighted average ROE Basic earnings per share Diluted earnings per
(RMB/Share) share (RMB/Share)
Net profits belong to common stock
-20.04% -0.0036 -0.0036
stockholders of the Company
Net profits belong to common stock
stockholders of the Company after
-42.37% -0.0076 -0.0076
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
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深圳中华自行车（集团）股份有限公司 2021 年年度报告全文
(3) Explain accounting difference over the accounting rules in and out of China; as for the difference
adjustment for data audited by foreign auditing organ, noted the name of such foreign organ
Nil
4. Other
Board of Directors of
Shenzhen China Bicycle Company (Holdings) Limited
22 April 2022
229
