Stock Abbr.: ST Pearl River Announcement No.: 2011-022
Stock Code: 000505
HAINAN PEARL RIVER HOLDINGS CO., LTD.
ABSTRACT OF THE SEMI-ANNUAL REPORT 2011
§1 Important Statement
1.1 The Board of Directors, the Supervisory Committee as well as directors,
supervisors and senior management staff of HaiNan Pearl River Holdings Co., Ltd.
(hereinafter referred to as “the Company” warrant that this report does not contain
any false information, misleading statements or material omissions and they will
assume individual and joint responsibility for the factuality, accuracy and
completeness of all contents set forth herein.
The Abstract of the Semi-annual Report 2011 is excerpted from the full text of the
Semi-annual Report 2011, which is published on the Internet website
http://www.cninfo.com.cn in the mean time with the Abstract. Investors are suggested
to read the full text to understand more details.
1.2 The financial report for the first half of 2011 has not been audited by a CPA firm.
1.3 Mr. Zheng Qing, company principal, Mr. Chen Binglian, head of the accounting
work, and Mr. Yang Daoliang, head of the accounting department (person-in-charge
of accounting) hereby declare that they guarantee the factuality and completeness of
the financial report carried in the semi-annual report.
English Translation for Reference Only. Should there be any discrepancy between the
two versions, the Chinese version shall prevail.
§2 Company Profile
2.1 Basic informatio n
Stock abbr. ST Pearl River, ST Pearl River B
Stock code 000505, 200505
Stock exchange Shenzhen Stock Exchange
Company Secretary Securities Affairs Representative
Name Yu Cuihong Yu Cuihong
29/F, Royal Empire Building, Pearl River 29/F, Royal Empire Building, Pearl River
Contact address
Plaza, Binhai Avenue, Haikou, Hainan Plaza, Binhai Avenue, Haikou, Hainan
Tel. 0898-68583723 0898-68583723
Fax. 0898-68581026 0898-68581026
E-mail hnpearlriver@21cn.net hnpearlriver@21cn.net
2.2 Financial highlights
2.2.1 Major accounting data and financial indexes
Unit: RMB Yuan
Increase/decrease at
the end of this
At the end of this reporting
At the end of last year reporting period
period
compared with the end
of last year (%)
Total assets (Yuan) 1,422,714,139.13 1,448,885,550.24 -1.81%
Owners’ equity attributable to shareholders of the listed company
488,238,539.33 497,295,405.44 -1.82%
(Yuan)
Share capital (share) 426,745,404.00 426,745,404.00 0.00%
Net assets per sh are attributable to shareholders of the listed company
1.1441 1.1653 -1.82%
(Yuan/share)
Reporting period (From Jan. Increase/decrease
Same period of last year
to Jun. 2011) year-on-year (%)
Total operating income (Yuan) 144,292,773.73 544,036,572.15 -73.48%
Operating profit (Yuan) -8,992,867.70 69,209,013.89 -112.99%
Total profit (Yuan) -8,630,152.22 70,805,496.99 -112.19%
Net profit attributable to shareholders of the listed company (Yuan) -15,041,866.11 50,911,704.50 -129.55%
Net profit attributable to shareholders of the listed company after
-35,013,277.56 40,581,004.88 -186.28%
deducting non-recurring gains and losses (Yuan)
Basic earnings per share (Yuan/share) -0.04 0.12 -133.33%
Diluted earnings per share (Yuan/share) -0.04 0.12 -133.33%
Weighted average ROE (%) -3.05% 8.56% -11.61%
Weighted average ROE after deducting non-recurring gains and losses
-7.11% 6.82% -13.93%
(%)
Net cash flows from operating activities (Yuan) -27,380,569.51 142,650,825.02 -119.19%
Net cash flows per sha re from operating activities (Yuan/share) -0.0642 0.3343 -119.20%
2.2.2 Items of non-recurring gains and losses
√Applicable □Inapplicable
Unit: RMB Yuan
Items of non-recurring gains and losses Amount Note (if applicable)
Gains and losses from disposal of non-current assets -14,410.25
Effect on minority interests -475,212.08
Effect on income tax -885,778.44
Other non -operating incomes and expenses besides the items above 377,125.73
Capital occupation fees paid by non-financial enterprises which are recognized into current gains/losses 20,969,686.49
Total 19,971,411.45 -
2.2.3 Difference between PRC GAAP and IFRS
√Applicable □Inapplicable
Unit: RMB Yuan
Net profit attributable to shareholders of the listed Owners’ equity attributable to shareholders of the listed
company company
Amount in the Amount in the same period of
Closing amount Opening amount
reporting period last year
According to IFRS -15,041,866.11 50,911,704.50 486,901,539.33 495,958,405.44
According to PRC GAAP -15,041,866.11 50,911,704.50 488,238,539.33 497,295,405.44
Sub-items adjusted according to IFRS and total:
Adjustment of land u se rights amortization 0.00 0.00 -1,337,000.00 -1,337,000.00
Total difference between PRC GAAP and
0.00 0.00 -1,337,000.00 -1,337,000.00
IFRS
Explanation on difference between PRC Before execution of the PRC GAAP 2006, original land use rights in the item of construction in process were
GAAP and IFRS amortized according to the IFRS.
§3 Changes in Share Capital and Particulars about Shareholders
3.1 Changes in shares
□Applicable √Inapplicable
3.2 Shares held by the top ten shareholders and top ten shareholders holding shares
not subject to trading moratorium
Unit: Share
Total number of shareholders 46,404
Particulars about shares held by the top ten shareholders
Shares subject to
Shareholding Total number of
Name of shareholder Nature of shareholder trading moratorium Shares pledged or frozen
ratio (%) shares held
held
Beijing Wanfa Real Estate Development
State-owned corporation 26.36% 112,479,478 0 0
Co., Ltd.
Chen Yunxuan Domestic natural person 0.59% 2,534,502 0 0
Wu Fengming Domestic natural person 0.55% 2,360,000 0 0
Qu Chen Domestic natural person 0.52% 2,200,700 0 0
Qin Chengquan Domestic natural person 0.47% 2,000,000 0 0
Zhang Xiaoxia Domestic natural person 0.46% 1,949,250 0 0
Li Lin Domestic natural person 0.35% 1,500,000 1,299,500 0
Domestic non-state-owned
Nanhua Finance Co., Ltd. 0.30% 1,299,500 0 0
corporation
Domestic non-state-owned
Shanghai Fengshen Steel Co., Ltd. 0.30% 1,264,054 0 0
corporation
Han Xiao Domestic natural person 0.29% 1,234,900 0 0
Particulars about shares held by the top ten shareholders not subject to trading moratorium
Name of shareholder Shares not subject to trading moratorium held Type of shares
Beijing Wanfa Real Estate Development Co., Ltd. 112,479,478 RMB ordinary share
Chen Yunxuan 2,534,502 RMB ordinary share
Wu Fengming 2,360,000 RMB ordinary share
Domestically listed foreign
Qu Chen 2,200,700
share
Qin Chengquan 2,000,000 RMB ordinary share
Domestically listed foreign
Zhang Xiaoxia 1,949,250
share
Li Lin 1,500,000 RMB ordinary share
Shanghai Fengshen Steel Co., Ltd. 1,264,054 RMB ordinary share
Han Xiao 1,234,900 RMB ordinary share
Beijing Long -term Financial State Investment Co., Ltd 1,157,553 RMB ordinary share
Among shareholders above, there exists no related -party relationship between the principal shareholder and other
shareholders of the Company. Nor they are parties with concerted action as prescribed in the Information Disclosure
Related-party relationship or concerted
Administrative Methods for Changes in Shareholding of Shareholders of Listed Companies. And it is unknown
action among shareholders above
whether there exists related-party relationship among other shareholders and whether they are prescribed parties
with concerted action.
3.3 Change of the controlling shareholder and actual controller
□Applicable √Inapplicable
§4 Directors, Supervisors and Senior Management Staff
4.1 Changes in shares held by directors, supervisors and senior management staff
□Applicable √Inapplicable
§5 Report of the Board of Directors
5.1 Main businesses classified according to industries or products
Unit: RMB’0000
Main businesses classified according to industries
Year-on-year Year-on-year
Year-on-year
Gross profit rate increase/decrea increase/decrea
Industries or products Operating income Operating cost increase/decrease of
(%) se of operating se of gross
operating income (%)
cost (%) profit rate (%)
Sale of real estate 6,809.65 3,191.27 53.14% -86.08% -90.25% 20.08%
Property management and
4,765.39 4,256.83 10.67% 37.60% 42.27% -2.94%
service
Travel and hotel services 2,742.10 1,147.15 58.17% 40.66% 29.70% 3.54%
Main businesses classified according to products
Sale of real estate 6,809.65 3,191.27 53.14% -86.08% -90.25% 20.08%
Property management and
4,765.39 4,256.83 10.67% 37.60% 42.27% -2.94%
service
Travel and hotel services 2,742.10 1,147.15 58.17% 40.66% 29.70% 3.54%
5.2 Main businesses classified according to regions
Unit: RMB’0000
Region Operating income Year-on-year increase/decrease (%)
Hainan 6,839.29 -49.47%
Hubei 6,857.49 -83.19%
Mudanjiang 614.83
Beijing 5.52
5.3 Explanation on reasons for changes in main operation and its structure
□Applicable √Inapplicable
5.4 Reasons for significant changes in profitability (gross profit margin) of core
business compared with the previous year
□Applicable √Inapplicable
5.5 Analysis to reasons of significant changes in profit breakdown compared with the
previous year
□Applicable √Inapplicable
5.6 Utilization of the raised proceeds
5.6.1 Utilization of the raised proceeds
□Applicable √Inapplicable
5.6.2 Change of projects invested with raised proceeds
□Applicable √Inapplicable
5.7 Business plan revised by the Board of Directors for the second half of the year
√Applicable □Inapplicable
Plan of work for the second half of the year:
Contents of the
1. In the second half of the year, the Company will try to finish location selection, planning and the relocation plan for the Shijiazhuang
adjusted
Luquan new countryside construction project. It will continue to carry forward the project launch approval, planning, application for
business plan
construction and other matters of the project, trying to start the construction by March 2012.
2. The Company will carry forward the land exchange formalities for the Hubei Meilin Qingcheng third-phase project, and start doing
previous w ork such as project launch, planning and application for construction, trying to start the construction by May 2012.
3. According to the Xuexiang National Forest Park overall development frame work letter of intent, by making use of its independent
development and operation advantage, Mudanjiang Tourism Group will work out individual plans for the Yangcao Mountain Scenic Spot,
the Erlong Mountain Movie Town, the Taipinggou Tree Farm and other to urist attractions, improving the construction and infrastructure
there step by step. Mudanjiang Tourism Group will also start to buy all existing entertainment facilities in the core scenic spots, and
reconstruct the existing ski field so as to provide better services for tourists.
4. The Company will continue to follow up the Mulin Town special rail and coal wholesale market project s, trying to finish the land transfer
formalities within this year. Meanwhile, it will try to get approval for the launch of the projects so as to realize production, operation and
sale as soon as possible.
5. It will beef up the operation of the long-term lease of the underground garage of Pearl River Square, trying to accomplish a 60% garage
lease within this year.
6. It will also continue to follow up and carry out researches for new projects throughout the country, trying to expand new business and
enhancing financing-related work.
5.8 Estimation on accumulative net profit from the beginning of the year to the end of
the next reporting period to be loss probably or the warning of its significant change
compared with the corresponding period of the last year and explanation on reason
□Applicable √Inapplicable
5.9 Explanation of the Board of Directors on “Non-standard Auditors’Report”from
the Certified Public Accountants in the reporting period
□Applicable √Inapplicable
5.10 Explanation of the Board of Directors on changes and solutions of the issues
involved in “Non-standard Auditors’Report”from the Certified Public Accountants in
the last year
□Applicable √Inapplicable
§6 Significant Events
6.1 Acquisition, sale and reorganization of assets
6.1.1 Assets acquired
□Applicable √Inapplicable
6.1.2 Assets sold
□Applicable √Inapplicable
6.1.3 Progress of these events and its influence on the operating results and financial
status in the reporting period after the report on assets restructure or public notice on
acquisition and sales of assets being published
□Applicable √Inapplicable
6.2 Guarantees
□Applicable √Inapplicable
6.3 Credits and liabilities with related parties for non-operating purposes
√Applicable □Inapplicable
Unit: RMB’0000
Funds provided by the Company to the related party Funds provided by the related party to the Company
Related party
Incurred amount Balance Incurred amount Balance
Beijing Xinxing Real Estate Development
0.00 0.00 0.00 15,254.04
General Company
Beijing Wanfa Real Estate Development
0.00 0.00 0.00 8,172.50
Co., Ltd.
Sanya Wanjia Industrial Co., Ltd. 0.00 0.00 0.00 154.50
Beijing Yulong Jisheng Real Estate Co.,
0.00 0.00 0.00 150.00
Ltd.
Mudanjiang Wanjia Hotel Management
0.00 0.00 0.00 15.72
Co., Ltd.
Beijing Aipuzhi Intellectual Property
0.00 0.00 185.53 1,073.11
Management & Consulting Co., L td.
Shanghai Sea Pearl Property Management
0.00 0.00 100.00 100.00
Co., Ltd.
Beijing Wanfa Real Estate Development
0.00 0.00 241.71 2,661.34
Co., Ltd.
Beijing Xinxing Real Estate Development
0.00 0.00 473.56 47,731.16
General Company
Total 0.00 0.00 1,000.80 75,312.37
The amount incurred and the balance concerning the Company’ provid ing funds to
the controlling shareholder and its subsidiaries was RMB 0.00 and RMB 0.00
respectively in the reporting period.
6.4 Material lawsuits and arbitrations
□Applicable √Inapplicable
6.5 Other significant events and explanation on analysis to their influences and
solutions
□Applicable √Inapplicable
6.5.1 Securities investment
□Applicable √Inapplicable
6.5.2 Equity of other listed companies held by the Company
√Applicable □Inapplicable
Unit: RMB Yuan
Initial Equity Gain/loss in Changes in
Securities Book value at the
Short form investment proportion the owner’ equity in Accounting title Source of stock
code period-end
amount in the reporting the reporting
investee period period
Southwest Available-for-sale Direct share
600369 150,000,000.00 1.43% 394,677,500.00 0.00 5,985,000.00
Securities financial assets buying
Total 150,000,000.00 - 394,677,500.00 0.00 5,985,000.00 - -
6.5.3 Non-operating capital occupation by principal shareholders and its affiliated
enterprises and progress of debt repayment
□Applicable √Inapplicable
6.5.4 Implementation of commitments made by the Company, as well as its
shareholders and actual controller
Commitments made by the Company, its directors, supervisors, senior executives,
shareholders with an over 5% shareho lding, actual controller and other stakeholders
during the reporting period, or such commitments carried down into the reporting
period:
□Applicable √Inapplicable
6.5.5 Pre-plan of the Board of Directors for profit distribution or turning capital
reserves into share capital
□Applicable √Inapplicable
6.5.6 Items of other comprehensive income
Unit: RMB Yuan
Same period of
Items Reporting period
last year
1. Profits/(losses) from available-for-sale financial assets 7,980,000.00 -226,100,000.00
Less: Effects on income tax generating from available-for-sale financial
1,995,000.00 -56,525,000.00
assets
Net amount transferred into profit and loss in the current period that was
recognized into other comprehensive income in prior period
Subtotal 5,985,000.00 -169,575,000.00
2. Interests in the investee entities’other comprehensive income as per
equity method
Less: Effects on income tax generating from the interests in the investee
entities’other comprehensive income as per equity method
Net amount transferred into profit and loss in the current period that was
recognized into other comprehensive income in prior period
Subtotal
3. Profits/(losses) from cash flow hedging instrument
Less: Effects on income tax generating from cash flow hedging instrument
Net amount transferred into profit and loss in the current period that was
recognized into other comprehensive income in prior period
The adjustment value that is the converted initial recognition amount of
arbitrage project
Subtotal
4. Converted amount of foreign currency financial statements
Less: Net value of disposal of oversea operations that was recognized into
current profit and loss
Subtotal
5. Other 1,644,809.33
Less: Effects on income tax generating from the others that were included
into other comprehensive income
Net amount transferred into profit and loss in the current period that was
recognized into other comprehensive income in prior period
Subtotal 1,644,809.33
Total 5,985,000.00 -167,930,190.67
6.6 Particulars about surveys, interviews and visits received in the reporting period
The Company received no field researches, phone calls or written inquiries from
investors during the reporting period.
§7 Financial Report
7.1 Auditing opinion
Financial Report √Un-audited □Audited
7.2 Financial statements
7.2.1 Balance Sheet
Prepared by HaiNan Pearl River Holdings Co., Ltd
30 Jun. 2011 Unit: RMB Yuan
Closing balance Opening balance
Items
Consolidation The Company Consolidation The Co mpany
Current Assets:
Monetary funds 71,686,794.91 27,066,982.58 136,376,851.19 47,697,821.48
Settlement reserves
Intra-group lendings
Transactional financial assets
Notes receivable
Accounts receivable 6,175,555.95 1,006,654.91 3,627,245.66 1,039,916.11
Accounts paid in advance 61,654,998.64 50,000,000.00 53,898,082.24 50,070,000.00
Premiums receivable
Reinsurance premiums receivable
Receivable reinsurance contract reserves
Interest receiv able
Dividend receivable 260,015.00 260,015.00 260,015.00 260,015.00
Other accounts receivable 321,668,389.71 382,131,705.10 258,266,331.45 289,469,963.47
Financial assets purchased under agreements
to resell
Inventories 123,097,218.30 12,782,893.61 154,866,011.08 12,782,893.61
Non-current assets due within 1 year
Other current assets
Total current assets 584,542,972.51 473,248,251.20 607,294,536.62 401,320,609.67
Non-current assets:
Loans by mandate and advances granted
Available-for-sale financial assets 394,677,500.00 394,677,500.00 386,697,500.00 386,697,500.00
Held-to-maturity investments
Long-term accounts receivable
Long -term equity investment 51,270,823.67 301,669,193.38 51,675,639.59 296,974,009.30
Investing property 19,367,639.84 19,898,962.92
Fixed assets 324,721,291.38 20,214,395.25 334,512,524.54 21,376,736.10
Construction in progress 5,410,500.00 4,732,000.00
Engineering materials 606,206.60 606,206.60
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 32,963,075.42 1,624,536.06 33,492,984.34 1,648,367.88
R&D expense
Goodwill
Long -term deferred expenses 9,154,129.71 9,975,195.63
Deferred income tax assets
Other non-current assets
Total of non -current assets 838,171,166.62 718,185,624.69 841,591,013.62 706,696,613.28
Total assets 1,422,714,139.13 1,191,433,875.89 1,448,885,550.24 1,108,017,222.95
Current liabilities:
Short-term borrowings
Borrowings from Central Bank
Customer bank deposits and due to banks
and other financial institutions
Intra-group borrowings
Transactional financial liabilities
Notes payable
Accounts payable 23,697,282.21 2,482,949.70 37,588,815.47 3,782,949.70
Accounts received in advance 22,338,224.29 329,885.00 39,134,147.85
Financial assets sold for repurchase
Handling charges and commissions payable
Employee’s compensation payable 5,107,973.38 398,997.63 5,631,750.04 492,944.38
Tax payable 9,535,741.72 -2,850,664.30 30,809,972.66 -2,851,226.09
Interest payable 95,081,923.39 59,132,308.73 85,390,223.02 51,834,549.23
Dividend payable 3,213,302.88 3,213,302.88 3,213,302.88 3,213,302.88
Other accounts payable 347,122,020.64 348,446,688.58 329,316,226.89 266,835,267.94
Reinsurance premiums payable
Insurance contract reserves
Payables for acting trading of securities
Payables for acting underwriting of
securities
Non-current liabilities due within 1 year 232,000,000.00 220,000,000.00
Other current liabilities
Total current liabilities 738,096,468.51 631,153,468.22 531,084,438.81 323,307,788.04
Non-current liabilities:
Long -term borrowings 93,000,000.00 325,000,000.00 220,000,000.00
Bonds payable
Long -term payables
Specific payables
Estimated liabilities
Deferred income tax liabilities 76,280,138.80 75,228,125.00 74,285,138.80 73,233,125.00
Other non-current liabilities
Total non-current liabilities 169,280,138.80 75,228,125.00 399,285,138.80 293,233,125.00
Total liabilities 907,376,607.31 706,381,593.22 930,369,577.61 616,540,913.04
Owners’ equity (or shareholders’ equity)
Paid -up capital (or share capital) 426,745,404.00 426,745,404.00 426,745,404.00 426,745,404.00
Capital reserves 611,249,155.97 614,265,495.51 605,264,155.97 608,280,495.51
Less: Treasury stock
Specific reserves
Surplus reserves 114,177,485.88 109,487,064.39 114,177,485.88 109,487,064.39
Provisions for general risks
Retained profits -663,933,506.52 -665,445,681.23 -648,891,640.41 -653,036,653.99
Foreign exchange difference
Total equity attributable to owners of the
488,238,539.33 485,052,282.67 497,295,405.44 491,476,309.91
Company
Minority interests 27,098,992.49 21,220,567.19
Total owners’ equity 515,337,531.82 485,052,282.67 518,515,972.63 491,476,309.91
Total liabilities and owners’equity 1,422,714,139.13 1,191,433,875.8 9 1,448,885,550.24 1,108,017,222.95
7.2.2 Income Statement
Prepared by HaiNan Pearl River Holdings Co., Ltd
Jan.-Jun. 2011 Unit: RMB Yuan
Reporting period Same period of last year
Items
Consolidation The Company Consolidation The Company
I. Total operating revenues 144,292,773.73 193,340.00 544,036,572.15 81,930,643.20
Including: Sales income 144,292,773.73 544,036,572.15 81,930,643.20
Interest income
Premium income
Handling charge and
commission income
II. Total operating costs 152,880,825.51 12,174,972.10 474,892,422.82 72,178,777.15
Including: Cost of sales 86,517,326.29 26,578.50 366,666,811.33 42,170,962.08
Interest expenses
Handling charge and
commission expenses
Surrenders
Net claims paid
Net amount withdrawn for the
insurance contract reserve
Expenditure on policy dividends
Reinsurance premium
Taxes and associate charges 17,123,298.21 46,550.85 63,804,616.18 20,124,893.20
Selling and distribution expenses 3,593,594.12 15,000.00 6,584,871.53 24,477.00
Administrative expenses 39,721,435.23 8,780,814.70 29,852,762.04 8,722,821.79
Financial expenses 5,755,839.36 3,766,085.05 12,698,260.97 6,422,101.48
Asset impairment loss 169,332.30 -460,057.00 -4,714,899.23 -5,286,478.40
Add: Gain/(loss) from change in fair
value (“-” means loss)
Gain/(loss) from investment (“-”
-404,815.92 -404,815.92 64,864.56 64,864.56
means loss)
Including: share of profits in associates
-404,815.92 -404,815.92 64,864.56 64,864.56
and joint ventures
Foreign exchange gains (“-” means
loss)
III. Business profit (“-” means loss) -8,992,867.70 -12,386,448.02 69,209,013.89 9,816,730.61
Add: non-operating income 430,386.00 1,710,013.72 1,710,013.72
Less: non-operating expense 67,670.52 22,579.22 113,530.62 14,023.12
Including: loss from non-current asset
15,200.25 12,915.00 32,373.03 14,023.12
disposal
IV. Total profit (“-” means loss) -8,630,152.22 -12,409,027.24 70,805,496.99 11,512,721.21
Less: Income tax expense 5,433,288.59 12,880,565.60
V. Net profit (“-” means loss) -14,063,440.81 -12,409,027.24 57,924,931.39 11,512,721.21
Attributable to owners of the
-15,041,866.11 -12,409,027.24 50,911,704.50 11,512,721.21
Company
Minority shareholders’ income 978,425.30 0.00 7,013,226.89
VI. Earnings per share
(I) Basic earnings per share -0.04 0.12
(II) Diluted earnings per share -0.04 0.12
Ⅶ. Other comprehensive incomes 5,985,000.00 5,985,000.00 -167,930,190.67 -170,671,539.56
Ⅷ. Total comprehensive incomes -8,078,440.81 -6,424,027.24 -110,005,259.28 -159,158,818.35
Attributable to owners of the
-9,056,866.11 -6,424,027.24 -117,018,486.17 -159,158,818.35
Company
Attributable to minority
978,425.30 7,013,226.89
shareholders
For any business combination under the same control that occurred in the reporting
period, the combined party realized zero net profit before the combination.
7.2.3 Cash Flow Statement
Prepared by HaiNan Pearl River Holdings Co., Ltd
Jan.-Jun. 2011 Unit: RMB Yuan
Reporting period Same period of last year
Items
Consolidation The Company Consolidation The Company
I. Cash flows fromoperating activities:
Cash received from sale of commodities and
121,695,433.47 707,165.00 263,395,787.90 61,962,832.61
rendering of service
Net increase of deposits from customers and
dues from banks
Net increase of loans from the central bank
Net increase of funds borrowed from other
financial institutions
Cash received from premium of original
insurance contracts
Net cash received from reinsurance business
Net increase of deposits of policy holders
and invest ment fund
Net increase of disposal of tradable financial
assets
Cash received from interest, handling
charges and commissions
Net increase of intra-group borrowings
Net increase of funds in repurchase business
Tax refunds received
Other cash received relating to operating
17,137,414.67 14,337,432.68 44,480,734.95 56,992,791.55
activities
Subtotal of cash inflows from operating
138,832,848.14 15,044,597.68 307,876,522.85 118,955,624.16
activities
Cash paid for goods and services 37,708,925.23 67,511,867.17 402,212.71
Net increase of customer lendings and
advances
Net increase of funds deposited in the central
bank and amount due from banks
Cash for paying claims of the original
insurance contracts
Cash for paying interest, handling charges
and commissions
Cash for paying policy dividends
Cash paid to and for employees 41,532,522.52 2,195,035.52 28,516,777.02 1,734,668.08
Various taxes paid 46,765,196.25 1,234,830.23 44,302,996.97 20,816,204.78
Other cash payment relating to operating
40,206,773.65 8,550,914.15 24,894,056.67 18,823,289.74
activities
Subtotal of cash outflows from operating
166,213,417.65 11,980,779.90 165,225,697.83 41,776,375.31
activities
Net cash flows from operating activities -27,380,569.51 3,063,817.78 142,650,825.02 77,179,248.85
II. Cash flows from investing activities:
Cash received from retraction of investments 188,500,000.00 118,500,000.00 28,000,000.00 20,000,000.00
Cash receiv ed from return on investments
Net cash received from disposal of fixed
assets, intangible assets and other long-term 164,708.50 6,000.00 3,686,573.00 3,628,173.00
assets
Net cash received from disposal of
subsidiaries or other business units
Other cash received relating to investing
22,360,895.82 20,034,243.32
activities
Subtotal of cash inflows from investing
211,025,604.32 138,540,243.32 31,686,573.00 23,628,173.00
activities
Cash paid to acquire fixed assets, intangible
8,462,406.09 1,334,900.00 11,297,369.53 922,747.00
assets and other long -term assets
Cash paid for investment 243,500,000.00 216,600,000.00 132,600,000.00 125,600,000.00
Net increase of pledged loans
Net cash paid to acquire subsidiaries and
other business units
Other cash payments relating to investing
15,401,893.30
activities
Subtotal of cash outflows from investing
251,962,406.09 217,934,900.00 159,299,262.83 126,522,747.00
activities
Net cash flows from investing activities -40,936,801.77 -79,394,656.68 -127,612,689.83 -102,894,574.00
III. Cash Flows from Financing Activities:
Cash received from capital contributions 4,900,000.00
Including: Cash received from minority
4,900,000.00
shareholder investments by subsidiaries
Cash received from borrowings 27,216,000.00 70,000,000.00
Cash received from issuance of bonds
Other cash received relating to financing
activities
Subtotal of cash inflows from financing
32,116,000.00 70,000,000.00
activities
Repayment of borrowings 10,500,000.00 71,000,000.00 16,000,000.00
Cash paid for interest expenses and
17,988,685.00 14,300,000.00 -3,092,330.66 -8,016,323.92
distribution of dividends or profit
Including: dividends or profit paid by
-3,092,330.66 -8,016,323.92
subsidiaries to minority shareholders
Other cash payments relating to financing
activities
Sub-total of cash outflows from financing
28,488,685.00 14,300,000.00 67,907,669.34 7,983,676.08
activities
Net cash flows from financing activities 3,627,315.00 55,700,000.00 -67,907,669.34 -7,983,676.08
IV. Effect of foreign exchange rate changes on
cash and cash equivalents
V. Net increase in cash and cash equivalents -64,690,056.28 -20,630,838.90 -52,869,534.15 -33,699,001.23
Add: Opening balance of cash and cash
136,376,851.19 47,697,821.48 291,787,132.78 161,760,970.47
equivalents
VI. Closing balance of cash and cash
71,686,794.91 27,066,982.58 238,917,598.63 128,061,969.24
equivalents
7.2.4 Consolidated Statement of Changes in Owners’Equity
Prepared by HaiNan Pearl River Holdings Co., Ltd For the first half of 2011 Unit: RMB Yuan
Reporting period Last year
Equity attributable to owners of the Company Equity attributable to owners of the Company
Items Minority Total owners ’ Minority Total owners ’
Paid-up capital Less: Paid-up capital Less: Specifi Genera
Specific General
(or share Capital reserve treasury Surplus reserve Retained profit Others interests equity (or share Capital reserve treasur c Surplus reserve l risk Retained profit Others interests equity
reserve risk reserve
capital) stock capital) y stock reserve reserve
I. Balance at the end of the previous year 426,745,404.00 605,264,155.97 114,177,485.88 -648,891,640.41 21,220,567.19 518,515,972.63 426,745,404.00 788,804,155.97 114,177,485.88 -676,622,621.58 12,771,330.23 665,875,754.50
Add: change of accounting policy
Correction of errors in previous periods
Other
II. Balance at the beginning of th e year 426,745,404.00 605,264,155.97 114,177,485.88 -648,891,640.41 21,220,567.19 518,515,972.63 426,745,404.00 788,804,155.97 114,177,485.88 -676,622,621.58 12,771,330.23 665,875,754.50
III. Increase/ decrease of amount in th e
5,985,000.00 -15,041,866.11 5,878,425.30 -3,178,440.81 -183,540,000.00 27,730,981.17 8,449,236.96 -147,359,781.87
year (“-” means decrease)
(I) Net profit -15,041,866.11 978,425.30 -14,063,440.81 27,730,981.17 8,449,236.96 36,180,218.13
(II) Other comprehensive incomes 5,985,000.00 5,985,000.00 -183,540,000.00 -183,540,000.00
Subtotal of (I) and (II) 5,985,000.00 -15,041,866.11 978,425.30 -8,078,4 40.81 -183,540,000.00 27,730,981.17 8,449,236.96 -147,359,781.87
(III) Capital paid in and reduced by
4,900,000.00 4,900,000.00
owners
1. Capital paid in by owners 4,900,000.00 4,900,000.00
2. Amounts of share-based payments
recognized in owners ’equity
3. Others
(IV) Profit distribution
1. Appropriations to surplus reserves
2. Appropriations to general risk
provisions
3. Appropriations to owners (or
shareholders)
4. Other
(V) Internal carry -forward of owners’
equity
1. New increase of capital (or share
cap ital) from capital public reserves
2. New increase of capital (or share
capital) from surplus reserves
3. Surplus reserves for making up
losses
4. Other
（Ⅵ) Specific reserve
1. Withdrawn for the period
2. Used in the period
（Ⅶ) Other
IV. Closing balance 426,745,404.00 611,249,155.97 114,177,485.88 -663,933,506.52 27,098,992.49 515,337,531.82 426,745,404.00 605,264,155.97 114,177,485.88 -648,891,640.41 21,220,567.19 518,515,972.63
7.2.5 Statement of Changes in Owners’Equity of the Company
Prepared by HaiNan Pearl River Holdings Co., Ltd For the first half of 2011 Unit: RMB Yuan
Reporting period Last year
Paid-up capital Less: Paid-up capital Less:
Items Specific General Total owners ’ Specific
(or share Capital reserve treasury Surplus reserve Retained profit (or share Capital reserve treasury Surplus reserve General risk reserve Retained profit Total owners ’equity
reserve risk reserve equity reserve
capital) stock capital) stock
I. Balance at the end of the previous
426,745,404.00 608,280,495.51 109,487,064.39 -653,036,653.99 491,476,309.91 426,745,404.00 791,820,495.51 109,487,064.39 -648,140,659.00 679,912,304.90
year
Add: change of accounting policy
Correction of errors in previous
period s
Other
II. Balance at the beginning of the year 426,745,404.00 608,280,495.51 109,487,064.39 -653,036,653.99 491,476,309.91 426,745,404.00 791,820,495.51 109,487,064.39 -648,140,659.00 679,912,304.90
III. Increase/ decrease of amount in th e
5,985,000.00 -12,409,027.24 -6,424,027.24 -183,540,000.00 -4,895,994.99 -188,435,994.99
year (“-” means decrease)
(I) Net profit -12,409,027.24 -12,409,027.24 -3,799,455.43 -3,799,455.43
(II) Other comprehensive incomes 5,985,000.00 5,985 ,000.00 -183,540,000.00 -183,540,000.00
Subtotal of (I) and (II) 5,985,000.00 -12,409,027.24 -6,424,027.24 -183,540,000.00 -3,799,455.43 -187,339,455.43
(III) Capital paid in and reduced by
owners
1. Capital paid in by owners
2. Amounts of share-based
payments recognized in owners ’
equity
3. Others
(IV) Profit distribution
1. Appropriations to surplus
reserves
2. Appropriations to general risk
provisions
3. Appropriations to owners (or
shareholders)
4. Other
(V) Internal carry-forward of
owners’ equity
1. New increase of capital (or
share capital) from capital public
reserves
2. New increase of capital (or
share capital) from surplus reserves
3. Surplus reserves for making up
losses
4. Other
（Ⅵ) Specific reserve
1. Withdrawn for the period
2. Used in the period
（Ⅶ) Other -1,096,539.56 -1,096,539.56
IV. Closing balance 426,745,404.00 614,265,495.51 109,487,064.39 -665,445,681.23 485,052,282.67 426,745,404.00 608,280,495.51 109,487,064.39 -653,036,653.99 491,476,309.91
7.3 Notes to the financial statements
7.3.1 Should there be any change in accounting policies and estimates or correction of accounting errors, give the relevant information, reasons
and the influenced amounts.
□Applicable √Inapplicable
7.3.2 Should there be any significant change in the scope for the consolidated statements, give the reasons and the influenced amounts.
□Applicable √Inapplicable
7.3.3 If a non-standard auditor’ report is issued, list notes to involved matters.
□Applicable √Inapplicable
Ｈａｉｎａｎ Ｐｅａｒｌ Ｒｉｖｅｒ Ｈｏｌｄｉｎｇ Ｃｏｍｐａｎｙ Ｌｉｍｉｔｅｄ
Ｎｏｔｅｓ ｏｎ ｔｈｅ Ｆｉｎａｎｃｉａｌ Ｓｔａｔｅｍｅｎｔｓ ｆｏｒ ｔｈｅ Ｓｉｘ Ｍｏｎｔｈｓ ｅｎｄｅｄ ３０ Ｊｕｎｅ ２０１１
（Ａｌｌ ａｍｏｕｎｔｓ ａｒｅ ｓｔａｔｅｄ ｉｎ ＲＭＢ Ｙｕａｎ ｕｎｌｅｓｓ ｏｔｈｅｒｗｉｓｅ ｓｔａｔｅｄ）
Ｉ． Ｇｅｎｅｒａｌ ｉｎｆｏｒｍａｔｉｏｎ
Ｔｈｅ ｏｌｄ ｎａｍｅ ｏｆ Ｈａｉｎａｎ Ｐｅａｒｌ Ｒｉｖｅｒ Ｈｏｌｄｉｎｇ Ｃｏｍｐａｎｙ Ｌｉｍｉｔｅｄ （ｔｈｅ ＂Ｃｏｍｐａｎｙ＂） ｗａｓ Ｈａｉｎａｎ Ｐｅａｒｌ
Ｒｉｖｅｒ Ｉｎｄｕｓｔｒｙ Ｃｏｍｐａｎｙ Ｌｉｍｉｔｅｄ． Ｈａｉｎａｎ Ｐｒｏｖｉｎｃｉａｌ Ｐｅｏｐｌｅ＇ｓ Ｇｏｖｅｒｎｍｅｎｔ Ｏｆｆｉｃｅ ａｐｐｒｏｖｅｄ ｔｈｅ
ｒｅｏｒｇａｎｉｚａｔｉｏｎ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ ｉｎｔｏ ａ ｊｏｉｎｔ ｓｔｏｃｋ ｌｉｍｉｔｅｄ ｃｏｍｐａｎｙ ａｃｃｏｒｄｉｎｇ ｔｏ ｔｈｅ ｄｏｃｕｍｅｎｔ ｏｆ
Ｑｉｏｎｇ Ｆｕ Ｂａｎ ［１９９２］ Ｎｏ．１． Ｔｈｅ Ｃｏｍｐａｎｙ ｗａｓ ｒｅｇｉｓｔｅｒｅｄ ｉｎ Ｈａｉｎａｎ Ａｄｍｉｎｉｓｔｒａｔｉｏｎ ｆｏｒ Ｉｎｄｕｓｔｒｙ ａｎｄ
Ｃｏｍｍｅｒｃｅ ｉｎ Ｊａｎｕａｒｙ １９９２ Ｔｈｅ Ｃｏｍｐａｎｙ ｉｓｓｕｅｄ ２１，０８６，４００ ｓｈａｒｅｓ ｏｆ ＲＭＢ ｃｏｍｍｏｎ ｓｔｏｃｋ ｔｏ ｔｈｅ ｐｕｂｌｉｃ
ａｎｄ ｗａｓ ｌｉｓｔｅｄ ｏｎ Ｓｈｅｎｚｈｅｎ Ｓｔｏｃｋ Ｅｘｃｈａｎｇｅ ａｃｃｏｒｄｉｎｇ ｔｏ ｔｈｅ ｄｏｃｕｍｅｎｔ ｏｆ ｓｅｃｕｒｉｔｉｅｓ ａｄｍｉｎｉｓｔｒａｔｉｏｎ
ｏｆｆｉｃｅ ［１９９２］ Ｎｏ． ８３ ｏｆ ｔｈｅ Ｐｅｏｐｌｅ＇ｓ Ｂａｎｋ ｏｆ Ｃｈｉｎａ ｉｎ Ｄｅｃｅｍｂｅｒ １９９２． Ｔｈｅ Ｃｏｍｐａｎｙ ｉｓｓｕｅｄ ｔｈｅ ｄｏｍｅｓｔｉｃ
ｌｉｓｔｉｎｇ ｆｏｒｅｉｇｎ ｃａｐｉｔａｌ ｓｔｏｃｋ （Ｂ－ｓｈａｒｅ） ｗｉｔｈ ｔｈｅ ａｐｐｒｏｖａｌ ｏｆ Ｃｈｉｎａ Ｓｅｃｕｒｉｔｉｅｓ Ｒｅｇｕｌａｔｏｒｙ
Ｃｏｍｍｉｓｓｉｏｎ ｉｎ Ｊｕｎｅ １９９５． Ｔｈｅ Ｃｏｍｐａｎｙ ｃｈａｎｇｅｄ ｔｏ ｐｒｅｓｅｎｔ ｎａｍｅ ｉｎ Ｊａｎｕａｒｙ ２０００． Ｉｎ Ａｕｇｕｓｔ ２００６，
ｔｈｅ Ｃｏｍｐａｎｙ ｉｎｃｒｅａｓｅｄ ｓｔｏｃｋｓ ｗｉｔｈ ｃａｐｉｔａｌ ｓｕｒｐｌｕｓ ｔｏ ａｌｌ ｓｈａｒｅｈｏｌｄｅｒｓ， ａｎｄ ｔｈｅ ｒｅｇｉｓｔｅｒｅｄ ｃａｐｉｔａｌ
ｗａｓ ｃｈａｎｇｅｄ ｔｏ ４２６，７４５，４００ Ｙｕａｎ ｆｒｏｍ ３７７，６５０，８００ Ｙｕａｎ．
Ｔｈｅ ｂｕｓｉｎｅｓｓ ｌｉｃｅｎｓｅ ｎｕｍｂｅｒ： ４６００００１００６８３０
Ｏｆｆｉｃｅ ａｄｄｒｅｓｓ： ２９／Ｆ．， Ｄｉｈａｏ Ｂｕｉｌｄｉｎｇ， Ｐｅａｒｌ Ｒｉｖｅｒ Ｐｌａｚａ， Ｂｉｎｈａｉ Ａｖｅｎｕｅ， Ｈａｉｋｏｕ， Ｈａｉｎａｎ， ｔｈｅ
ＰＲＣ．
Ｃｏｒｐｏｒａｔｅ ｒｅｐｒｅｓｅｎｔａｔｉｖｅ： Ｚｈｅｎｇ Ｑｉｎｇ
Ｔｈｅ ｏｐｅｒａｔｉｏｎ ｓｃｏｐｅ： Ｉｎｄｕｓｔｒｉａｌ ｉｎｖｅｓｔｍｅｎｔ， ｔｒｏｐｉｃａｌ ｆａｒｍｉｎｇ， ａｑｕａｃｕｌｔｕｒｅ， ｒｅａｌ ｅｓｔａｔｅ
ｄｅｖｅｌｏｐｍｅｎｔ ａｎｄ ｍａｎａｇｅｍｅｎｔ， ｈｏｔｅｌ ｉｎｖｅｓｔｍｅｎｔ ａｎｄ ｍａｎａｇｅｍｅｎｔ， ｍａｔｅｒｉａｌ ｓｕｐｐｌｙ， ｃｏｎｓｔｒｕｃｔｉｏｎ
ｅｑｕｉｐｍｅｎｔ ｐｕｒｃｈａｓｉｎｇ， ｌｅａｓｉｎｇ， ｈａｒｄｗａｒｅ， ｃｈｅｍｉｃａｌ， ｔｒａｄｅ ｏｆ ｈｏｕｓｅｈｏｌｄ ｉｔｅｍｓ， ｄｅｃｏｒａｔｉｏｎ， ｖｅｈｉｃｌｅ
ｐａｒｋｉｎｇ， ａｎｄ ｈｉｇｈ－ｔｅｃｈ ｉｎｖｅｓｔｍｅｎｔ ｐｒｏｊｅｃｔｓ， ｉｎｖｅｓｔｍｅｎｔ ｉｎ ｅｎｖｉｒｏｎｍｅｎｔａｌ ｐｒｏｔｅｃｔｉｏｎ ｐｒｏｊｅｃｔｓ，
ｉｎｖｅｓｔｍｅｎｔ ａｄｖｉｃｅ． Ｔｈｅ ｃｏｍｐａｎｙ ｍａｉｎｌｙ ｅｎｇａｇｅｄ ｉｎ ｒｅａｌ ｅｓｔａｔｅ ｄｅｖｅｌｏｐｍｅｎｔ ａｎｄ ｐｒｏｐｅｒｔｙ ｍａｎａｇｅｍｅｎｔ，
ｗｈｉｃｈ ｂｅｌｏｎｇ ｔｏ ｒｅａｌ ｅｓｔａｔｅ ａｓｐｅｃｔ．
Ｔｈｅ Ｃｏｍｐａｎｙ＇ｓ ｂａｓｉｃ ｏｒｇａｎｉｚａｔｉｏｎａｌ ｓｔｒｕｃｔｕｒｅ： Ｇｅｎｅｒａｌ ｍｅｅｔｉｎｇ ｏｆ ｓｈａｒｅｈｏｌｄｅｒｓ
ｉｓ ｔｈｅ ｈｉｇｈｅｓｔ ｏｒｇａｎ ｏｆ ｐｏｗｅｒ． Ｂｏａｒｄ ｏｆ ｄｉｒｅｃｔｏｒｓ ｉｓ ｔｈｅ ｅｘｅｃｕｔｉｎｇ ａｇｅｎｃｙ．
Ｓｕｐｅｒｖｉｓｏｒｙ ｂｏａｒｄ ｉｓ ｔｈｅ Ｃｏｍｐａｎｙ＇ｓ ｉｎｔｅｒｎａｌ ａｕｄｉｔｉｎｇ ａｇｅｎｃｙ． Ｇｅｎｅｒａｌ Ｍａｎａｇｅｒ ｉｓ
ｒｅｓｐｏｎｓｉｂｌｅ ｆｏｒ ｔｈｅ Ｃｏｍｐａｎｙ＇ｓ ｄａｉｌｙ ｏｐｅｒａｔｉｏｎａｌ ｍａｎａｇｅｍｅｎｔ．
Ｔｈｅｒｅ ａｒｅ Ｇｅｎｅｒａｌ Ｍａｎａｇｅｒ Ｏｆｆｉｃｅ， Ｓｅｃｕｒｉｔｉｅｓ Ｄｅｐａｒｔｍｅｎｔ， Ｔｏｕｒｉｓｍ Ｒｅａｌ Ｅｓｔａｔｅ
Ｄｅｐａｒｔｍｅｎｔ， Ｆｉｎａｎｃｉａｌ Ｄｅｐａｒｔｍｅｎｔ， Ｍａｎａｇｅｍｅｎｔ Ｄｅｐａｒｔｍｅｎｔ， Ａｕｄｉｔｉｎｇ Ｄｅｐａｒｔｍｅｎｔ ａｎｄ
ｏｔｈｅｒｓ ｉｎ ｔｈｅ Ｃｏｍｐａｎｙ．
ＩＩ． Ａｃｃｏｕｎｔｉｎｇ ｐｏｌｉｃｉｅｓ， ａｃｃｏｕｎｔｉｎｇ ｅｓｔｉｍａｔｅｓ ａｎｄ ｅｒｒｏｒ ｃｏｒｒｅｃｔｉｏｎ
ｏｆ ｐｒｅｖｉｏｕｓ ｙｅａｒｓ
１． Ｐｒｅｐａｒａｔｉｏｎ ｂａｓｉｓ ｏｆ ｆｉｎａｎｃｉａｌ ｓｔａｔｅｍｅｎｔ
Ｐｒｅｐａｒａｔｉｏｎ ｏｆ ｔｈｅ ｆｉｎａｎｃｉａｌ ｓｔａｔｅｍｅｎｔｓ ｉｓ ｂａｓｅｄ ｏｎ ｇｏｉｎｇ ｃｏｎｃｅｒｎ ｐｏｓｔｕｌａｔｅ． Ｒｅｃｏｇｎｉｔｉｏｎ ａｎｄ
ｍｅａｓｕｒｅｍｅｎｔ ｃｏｍｐｌｙ ｗｉｔｈ ａｃｔｕａｌ ｔｒａｎｓａｃｔｉｏｎｓ ｏｒ ｅｖｅｎｔｓ， ａｎｄ ｔｈｅ Ｃｏｍｐａｎｙ ｐｒｅｐａｒｅｓ ｆｉｎａｎｃｉａｌ
ｓｔａｔｅｍｅｎｔｓ ｏｎ ｔｈｅｓｅ ｂａｓｅｓ．
２． Ａｎｎｏｕｎｃｅｍｅｎｔ ａｂｏｕｔ ｃｏｍｐｌｉａｎｃｅ ｗｉｔｈ Ａｃｃｏｕｎｔｉｎｇ Ｓｔａｎｄａｒｄｓ ｆｏｒ Ｂｕｓｉｎｅｓｓ Ｅｎｔｅｒｐｒｉｓｅｓ
Ｔｈｅ Ｃｏｍｐａｎｙ’ｓ ｆｉｎａｎｃｉａｌ ｓｔａｔｅｍｅｎｔｓ ａｒｅ ｐｒｅｐａｒｅｄ ｉｎ ａｃｃｏｒｄａｎｃｅ ｗｉｔｈ ｔｈｅ ｒｅｑｕｉｒｅｍｅｎｔｓ ｏｆ ｔｈｅ
Ａｃｃｏｕｎｔｉｎｇ Ｓｔａｎｄａｒｄｓ ｆｏｒ Ｂｕｓｉｎｅｓｓ Ｅｎｔｅｒｐｒｉｓｅｓ， ａｎｄ ｔｈｅｙ ｆａｉｒｌｙ ａｎｄ ｃｏｍｐｌｅｔｅｌｙ ｐｒｅｓｅｎｔ ｔｈｅ
ｆｉｎａｎｃｉａｌ ｐｏｓｉｔｉｏｎ， ｏｐｅｒａｔｉｏｎ ｒｅｓｕｌｔｓ， ｃａｓｈ ｆｌｏｗ ａｎｄ ｏｔｈｅｒ ｒｅｌｅｖａｎｔ ｉｎｆｏｒｍａｔｉｏｎ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ．
３． Ａｃｃｏｕｎｔｉｎｇ ｙｅａｒ
Ａｃｃｏｕｎｔｉｎｇ ｙｅａｒ ｏｆ ｔｈｅ Ｇｒｏｕｐ ｉｓ ｔｈｅ ｃａｌｅｎｄａｒ ｙｅａｒ ｆｒｏｍ Ｊａｎｕａｒｙ １ ｔｏ Ｄｅｃｅｍｂｅｒ ３１． Ｔｈｉｓ ｒｅｐｏｒｔ
ｃｏｖｅｒ ｔｈｅ ｐｅｒｉｏｄ， ｗｈｉｃｈ ｉｓ ｆｒｏｍ Ｊａｎｕａｒｙ １，２０１１ ｔｏ Ｊｕｎｅ ３０，２０１１．
４． Ｒｅｐｏｒｔｉｎｇ ｃｕｒｒｅｎｃｙ
Ｔｈｅ Ｃｏｍｐａｎｙ’ｓ ｒｅｐｏｒｔｉｎｇ ａｎｄ ｐｒｅｓｅｎｔａｔｉｏｎ ｃｕｒｒｅｎｃｙ ｉｓ ｔｈｅ Ｒｅｎｍｉｎｂｉ （“ＲＭＢ”）．
５． Ｃｏｎｓｏｌｉｄａｔｉｏｎ Ｂａｓｉｓ
（１） Ｍｅｒｇｅ ｏｆ ｔｈｅ ｅｎｔｅｒｐｒｉｓｅｓ ｕｎｄｅｒ ｔｈｅ ｕｎｉｆｏｒｍ ｃｏｎｔｒｏｌ
Ａｓ ｔｈｅｒｅ ｉｓ ｔｈｅ ｍｅｒｇｅ ｏｆ ｔｈｅ ｅｎｔｅｒｐｒｉｓｅｓ ｕｎｄｅｒ ｔｈｅ ｃｏｍｍｏｎ ｃｏｎｔｒｏｌ， ｔｈｅ ａｃｃｒｕａｌ ｂａｓｉｓ ｓｈａｌｌ
ｂｅ ｕｓｅｄ． Ｔｈｅ ａｓｓｅｔｓ， ｌｉａｂｉｌｉｔｉｅｓ （ｅｘｃｅｐｔ ｔｈｅ ａｄｊｕｓｔｍｅｎｔ ｃａｕｓｅｄ ｂｙ ｃｏｍｐｌｙｉｎｇ ｗｉｔｈ ｖａｒｉｏｕｓ
ａｃｃｏｕｎｔｉｎｇ ｐｏｌｉｃｉｅｓ） ｏｆ ｔｈｅ ｍｅｒｇｅｄ ｐａｒｔｙ ｓｈａｌｌ ｂｅ ｍｅａｓｕｒｅｄ ａｓ ｔｈｅｉｒ ｂｏｏｋ ｖａｌｕｅ ａｔ ｔｈｅ ｍｅｒｇｉｎｇ
ｄａｔｅ． Ｔｈｅ ｄｉｆｆｅｒｅｎｃｅ ｂｅｔｗｅｅｎ ｔｈｅ ｐｒｉｃｅ ｏｆ ｔｈｅ ｂｏｏｋ ｖａｌｕｅ ｏｎ ｍｅｒｇｅ （ｏｒ ｆａｃｅ ｖａｌｕｅ ｏｆ ｔｈｅ ｔｏｔａｌ
ｉｓｓｕｅｄ ｓｈａｒｅｓ） ａｎｄ ｏｂｔａｉｎｅｄ ｂｏｏｋ ｖａｌｕｅ ｏｆ ｎｅｔ ａｓｓｅｔｓ， ｓｈａｌｌ ａｄｊｕｓｔ ｔｈｅ ｃａｐｉｔａｌ ｓｕｒｐｌｕｓ， ａｎｄ ａｓ
ｔｈｅ ｃａｐｉｔａｌ ｓｕｒｐｌｕｓ ｉｓ ｏｆｆｓｅｔ， ｔｈｅ ｒｅｔａｉｎｅｄ ｅａｒｎｉｎｇｓ ｓｈａｌｌ ｂｅ ａｄｊｕｓｔｅｄ． Ｔｈｅ ｐｒｅ－ｍｅｒｇｅｒ ｎｅｔ ｐｒｏｆｉｔ
ｉｎｃｕｒｒｅｄ ｂｙ ｔｈｅ ｍｅｒｇｅｄ ｐａｒｔｙ， ｓｈａｌｌ ｂｅ ａｔｔｒｉｂｕｔｅｄ ｔｏ ｃｏｎｓｏｌｉｄａｔｅｄ ｉｎｃｏｍｅ ｓｔａｔｅｍｅｎｔ．
（２） Ｍｅｒｇｅ ｏｆ ｅｎｔｅｒｐｒｉｓｅｓ ｕｎｄｅｒ ｔｈｅ ｎｏｎ－ｕｎｉｆｏｒｍ ｃｏｎｔｒｏｌ
Ａｓ ｔｈｅｒｅ ｉｓ ｔｈｅ ｍｅｒｇｅ ｏｆ ｔｈｅ ｅｎｔｅｒｐｒｉｓｅｓ ｕｎｄｅｒ ｔｈｅ ｎｏｎ－ｕｎｉｆｏｒｍ ｃｏｎｔｒｏｌ， ｔｈｅ ｐｕｒｃｈａｓｉｎｇ
ｐｒｉｎｃｉｐａｌ ｔｏ ｂｅ ａｄｏｐｔｅｄ ｂｙ ｔｈｅ Ｃｏｍｐａｎｙ． Ｏｎ ｔｈｅ ｐｕｒｃｈａｓｉｎｇ ｄａｔｅ， ｔｈｅ ｃｏｎｓｏｌｉｄａｔｉｎｇ ｃｏｓｔ ｉｓ
ｄｅｔｅｒｍｉｎｅｄ ｂｙ ｔｈｅ ｆａｉｒ ｖａｌｕｅｓ ｏｆ ｔｈｅ ａｓｓｅｔｓ， ｏｃｃｕｒｒｅｄ ｏｒ ｐａｙａｂｌｅ ｌｉａｂｉｌｉｔｉｅｓ， ａｎｄ ｔｈｅ ｉｓｓｕｅｄ ｅｑｕｉｔｙ
ｓｅｃｕｒｉｔｉｅｓ， ｗｈｉｃｈ ａｒｅ ｐａｉｄ ｆｏｒ ｐｕｒｃｈａｓｉｎｇ． Ｍｅａｎｗｈｉｌｅ， ｔｈｅ ａｓｓｅｔｓ， ｌｉａｂｉｌｉｔｉｅｓ ａｎｄ ｔｈｅ ｃｏｎｔｉｎｇｅｎｔ
ｌｉａｂｉｌｉｔｉｅｓ ｏｆ ｔｈｅ ｖｅｎｄｏｒ ａｒｅ ｄｅｔｅｒｍｉｎｅｄ ａｔ ｔｈｅｉｒ ｆａｉｒ ｖａｌｕｅｓ．
Ｔｈｅ ｅｘｃｅｓｓ ａｍｏｕｎｔ ｂｅｔｗｅｅｎ ｔｈｅ ｃｏｎｓｏｌｉｄａｔｉｎｇ ｃｏｓｔ ａｎｄ ｔｈｅ ｆａｉｒ ｖａｌｕｅ ｏｆ ｔｈｅ ｎｅｔ ａｓｓｅｔｓ ｏｆ ｔｈｅ
ｖｅｎｄｏｒ ｅｎｔｉｔｙ ｓｈａｌｌ ｂｅ ｒｅｃｏｇｎｉｚｅｄ ａｓ ｇｏｏｄｗｉｌｌ ｉｎ ｔｈｅ ｃｏｎｓｏｌｉｄａｔｅｄ ｂａｌａｎｃｅ ｓｈｅｅｔ； ｔｈｅ ｂａｌａｎｃｅ ｏｆ
ｔｈｅ ｃｏｎｓｏｌｉｄａｔｉｎｇ ｃｏｓｔ ａｎｄ ｔｈｅ ｆａｉｒ ｖａｌｕｅ ｏｆ ｔｈｅ ｎｅｔ ａｓｓｅｔｓ ｏｆ ｔｈｅ ｖｅｎｄｏｒ ｓｈａｌｌ ｂｅ ｉｎｃｌｕｄｅｄ ｉｎ
ｔｈｅ ｃｕｒｒｅｎｔ ｐｒｏｆｉｔ ａｎｄ ｌｏｓｓ．
Ｔｈｅ ｏｐｅｒａｔｉｎｇ ｒｅｓｕｌｔ ｓｈａｌｌ ｂｅ ｃｏｎｓｏｌｉｄａｔｅｄ ｆｒｏｍ ｔｈｅ ａｃｑｕｉｓｉｔｉｏｎ ｄａｔｅ ｕｎｔｉｌ ｔｈｅ ｔｅｒｍｉｎａｔｉｏｎ
ｏｆ ｔｈｅ ｃｏｎｔｒｏｌ．
６． Ｔｈｅ ｓｔａｎｄａｒｄ ｆｏｒ ｃｏｎｓｏｌｉｄａｔｉｏｎ ｆｉｎａｎｃｉａｌ ｓｔａｔｅｍｅｎｔ ｐｒｅｐａｒａｔｉｏｎ
Ａｌｌ ｓｕｂｓｉｄｉａｒｉｅｓ ｏｆ ｔｈｅ ｃｏｍｐａｎｙ ａｒｅ ｉｎ ｔｈｅ ｓｃｏｐｅ ｏｆ ｔｈｅ ｃｏｎｓｏｌｉｄａｔｉｏｎ．
Ｔｈｅ ｃｏｍｐａｎｙ ｐｒｅｐａｒｅｓ ｔｈｅ ｃｏｎｓｏｌｉｄａｔｅｄ ｆｉｎａｎｃｉａｌ ｓｔａｔｅｍｅｎｔｓ ｉｎ ａｃｃｏｒｄａｎｃｅ ｗｉｔｈ ｔｈｅ
“Ａｃｃｏｕｎｔｉｎｇ ｓｔａｎｄａｒｄ ｆｏｒ Ｂｕｓｉｎｅｓｓ Ｅｎｔｅｒｐｒｉｓｅｓ Ｎｏ． ３３－ Ｃｏｎｓｏｌｉｄａｔｅｄ ｆｉｎａｎｃｉａｌ ｓｔａｔｅｍｅｎｔ ”．
７． Ｃａｓｈ ａｎｄ Ｃａｓｈ ｅｑｕｉｖａｌｅｎｔｓ
Ｃａｓｈ ｒｅｆｅｒｓ ｔｏ ｃａｓｈ ｏｎ ｈａｎｄ ａｎｄ ｄｅｍａｎｄ ｄｅｐｏｓｉｔｓ． “Ｃａｓｈ ｅｑｕｉｖａｌｅｎｔｓ” ｒｅｆｅｒ ｔｏ ｓｈｏｒｔ－ｔｅｒｍ，
ｈｉｇｈｌｙ ｌｉｑｕｉｄ ｉｎｖｅｓｔｍｅｎｔｓ ｔｈａｔ ａｒｅ ｒｅａｄｉｌｙ ｃｏｎｖｅｒｔｉｂｌｅ ｔｏ ｋｎｏｗｎ ａｍｏｕｎｔｓ ｏｆ ｃａｓｈ ａｎｄ ｗｈｉｃｈ ａｒｅ
ｓｕｂｊｅｃｔ ｔｏ ａｎ ｉｎｓｉｇｎｉｆｉｃａｎｔ ｒｉｓｋ ｏｎ ｃｈａｎｇｅ ｉｎ ｖａｌｕｅ．
８． Ｆｏｒｅｉｇｎ ｃｕｒｒｅｎｃｙ ｔｒａｎｓａｃｔｉｏｎｓ
Ｆｏｒｅｉｇｎ ｃｕｒｒｅｎｃｙ （ｃｕｒｒｅｎｃｙ ｏｔｈｅｒ ｔｈａｎ ｔｈｅ ｒｅｐｏｒｔｉｎｇ ｃｕｒｒｅｎｃｙ） ｔｒａｎｓａｃｔｉｏｎｓ ａｒｅ ｔｒａｎｓｌａｔｅｄ
ｉｎｔｏ ｒｅｐｏｒｔｉｎｇ ｃｕｒｒｅｎｃｙ ａｔ ｓｐｏｔ ｅｘｃｈａｎｇｅ ｒａｔｅｓ ｐｒｅｖａｉｌｉｎｇ ｏｎ ｔｈｅ ｄａｙ ｉｎ ｗｈｉｃｈ ｔｈｅ ｔｒａｎｓａｃｔｉｏｎｓ
ｔａｋｅ ｐｌａｃｅ． Ｍｏｎｅｔａｒｙ ｉｔｅｍｓ ａｒｅ ａｄｊｕｓｔｅｄ ａｃｃｏｒｄｉｎｇ ｔｏ ｓｐｏｔ ｅｘｃｈａｎｇｅ ｒａｔｅｓ ａｔ ｔｈｅ ｂａｌａｎｃｅ ｓｈｅｅｔ
ｄａｔｅ． Ｔｈｅ ｅｘｃｈａｎｇｅ ｂａｌａｎｃｅ ｏｎ ｆｏｒｅｉｇｎ ｃｕｒｒｅｎｃｙ ｓｈａｌｌ ｂｅ ｃａｐｉｔａｌｉｚｅｄ ａｎｄ ｒｅｃｏｒｄｅｄ ｉｎｔｏ ｔｈｅ ｃｏｓｔ
ｏｆ ｒｅｌｅｖａｎｔ ａｓｓｅｔｓ ｉｆ ｉｔ ｉｓ ｅｌｉｇｉｂｌｅ ｆｏｒ ｃａｐｉｔａｌｉｚａｔｉｏｎ； ｏｔｈｅｒ ｅｘｃｈａｎｇｅ ｂａｌａｎｃｅ ｏｎ ｆｏｒｅｉｇｎ ｃｕｒｒｅｎｃｙ
ｓｈａｌｌ ｂｅ ｒｅｃｏｒｄｅｄ ｉｎｔｏ ｃｕｒｒｅｎｔ ｐｒｏｆｉｔ ａｎｄ ｌｏｓｓ． Ｆｏｒｅｉｇｎ ｃｕｒｒｅｎｃｙ ｎｏｎ－ｍｏｎｅｔａｒｙ ｉｔｅｍｓ ｍｅａｓｕｒｅｄ ｗｉｔｈ
ｈｉｓｔｏｒｙ ｃｏｓｔ ａｒｅ ｔｒａｎｓｌａｔｅｄ ｉｎｔｏ ｒｅｐｏｒｔｉｎｇ ｃｕｒｒｅｎｃｙ ａｔ ｓｐｏｔ ｅｘｃｈａｎｇｅ ｒａｔｅｓ ｏｎ ｔｈｅ ｏｃｃｕｒｒｅｎｃｅ ｄａｔｅ．
Ｆｏｒｅｉｇｎ ｃｕｒｒｅｎｃｙ ｎｏｎ－ｍｏｎｅｔａｒｙ ｉｔｅｍｓ ｍｅａｓｕｒｅｄ ｗｉｔｈ ｆａｉｒ ｖａｌｕｅ ａｒｅ ｔｒａｎｓｌａｔｅｄ ｉｎｔｏ ｒｅｐｏｒｔｉｎｇ
ｃｕｒｒｅｎｃｙ ａｔ ｓｐｏｔ ｅｘｃｈａｎｇｅ ｒａｔｅｓ ｏｆ ｆａｉｒ ｖａｌｕｅ ｃｏｎｆｉｒｍｉｎｇ ｄａｔｅ； ｔｈｅ ｄｉｆｆｅｒｅｎｃｅ ｉｓ ｒｅｃｏｒｄｅｄ ａｓ ｔｈｅ
ｃｈａｎｇｅｓ ｉｎ ｔｈｅ ｐｒｏｆｉｔ ａｎｄ ｌｏｓｓ ｏｆ ｆａｉｒ ｖａｌｕｅ．
Ｍｏｎｅｔａｒｙ ａｓｓｅｔｓ ａｎｄ ｌｉａｂｉｌｉｔｉｅｓ ｄｅｎｏｍｉｎａｔｅｄ ｉｎ ｆｏｒｅｉｇｎ ｃｕｒｒｅｎｃｉｅｓ ａｔ ｔｈｅ ｂａｌａｎｃｅ ｓｈｅｅｔ ｄａｔｅ
ａｒｅ ｒｅｓｔａｔｅｄ ｉｎｔｏ ｔｈｅ ｒｅｐｏｒｔｉｎｇ ｃｕｒｒｅｎｃｙ ｕｓｉｎｇ ｔｈｅ ｓｐｏｔ ｅｘｃｈａｎｇｅ ｒａｔｅｓ ａｔ ｔｈａｔ ｄａｔｅ． Ａｍｏｎｇ ｔｈｅ
ｅｑｕｉｔｙ ｉｔｅｍｓ， ａｌｌ ｉｔｅｍｓ ａｒｅ ｔｒａｎｓｌａｔｅｄ ｉｎｔｏ ｒｅｐｏｒｔｉｎｇ ｃｕｒｒｅｎｃｙ ａｔ ｓｐｏｔ ｅｘｃｈａｎｇｅ ｒａｔｅｓ ｏｎ ｔｈｅ
ｏｃｃｕｒｒｅｎｃｅ ｄａｔｅ ｅｘｃｅｐｔ ｔｈｅ ｉｔｅｍ ｏｆ ｕｎｄｉｓｔｒｉｂｕｔｅｄ ｐｒｏｆｉｔｓ． Ｉｎｃｏｍｅ Ｓｔａｔｅｍｅｎｔ ｉｔｅｍｓ ａｒｅ ｔｒａｎｓｌａｔｅｄ
ｉｎｔｏ ｒｅｐｏｒｔｉｎｇ ｃｕｒｒｅｎｃｙ ａｔ ｓｐｏｔ ｅｘｃｈａｎｇｅ ｒａｔｅ ｏｎ ｔｈｅ ｏｃｃｕｒｒｅｎｃｅ ｄａｔｅ． Ｔｈｅ ｅｘｃｈａｎｇｅ ｄｉｆｆｅｒｅｎｃｅ
ｆｒｏｍ ｔｒａｎｓｌａｔｉｏｎ ｏｆ ｆｉｎａｎｃｉａｌ ｓｔａｔｅｍｅｎｔｓ ｄｅｎｏｍｉｎａｔｅｄ ｉｎ ｆｏｒｅｉｇｎ ｃｕｒｒｅｎｃｙ ｉｓ ｉｎｃｌｕｄｅｄ ｉｎ ｔｈｅ ｅｑｕｉｔｙ
ａｎｄ ｐｒｅｓｅｎｔｅｄ ｉｎｄｉｖｉｄｕａｌｌｙ．
９． Ｆｉｎａｎｃｉａｌ Ｉｎｓｔｒｕｍｅｎｔｓ
（１） Ｃｌａｓｓｉｆｉｃａｔｉｏｎ ｏｆ ｆｉｎａｎｃｉａｌ ａｓｓｅｔｓ ａｎｄ ｆｉｎａｎｃｉａｌ ｌｉａｂｉｌｉｔｉｅｓ
Ｆｉｎａｎｃｉａｌ ａｓｓｅｔｓ ｓｈａｌｌ ｂｅ ｃｌａｓｓｉｆｉｅｄ ｉｎｔｏ ｔｈｅ ｆｏｌｌｏｗｉｎｇ ｆｏｕｒ ｃａｔｅｇｏｒｉｅｓ ｗｈｅｎ ｔｈｅｙ ａｒｅ
ｉｎｉｔｉａｌｌｙ ｒｅｃｏｇｎｉｚｅｄ： ｔｈｅ ｆｉｎａｎｃｉａｌ ａｓｓｅｔｓ ｗｈｉｃｈ ａｒｅ ｍｅａｓｕｒｅｄ ａｔ ｔｈｅｉｒ ｆａｉｒ ｖａｌｕｅｓ ａｎｄ ｔｈｅ
ｖａｒｉａｔｉｏｎ ｏｆ ｗｈｉｃｈ ｉｓ ｒｅｃｏｒｄｅｄ ｉｎｔｏ ｔｈｅ ｐｒｏｆｉｔｓ ａｎｄ ｌｏｓｓｅｓ ｏｆ ｔｈｅ ｃｕｒｒｅｎｔ ｐｅｒｉｏｄ， ｉｎｃｌｕｄｉｎｇ
ｔｒａｎｓａｃｔｉｏｎａｌ ｆｉｎａｎｃｉａｌ ａｓｓｅｔｓ ａｎｄ ｔｈｅ ｆｉｎａｎｃｉａｌ ａｓｓｅｔｓ ｗｈｉｃｈ ａｒｅ ｍｅａｓｕｒｅｄ ａｔ ｔｈｅｉｒ ｆａｉｒ ｖａｌｕｅｓ
ａｎｄ ｏｆ ｗｈｉｃｈ ｔｈｅ ｖａｒｉａｔｉｏｎ ｉｓ ｉｎｃｌｕｄｅｄ ｉｎ ｔｈｅ ｃｕｒｒｅｎｔ ｐｒｏｆｉｔｓ ａｎｄ ｌｏｓｓｅｓ； ｈｅｌｄ－ｔｏ－ｍａｔｕｒｉｔｙ
ｉｎｖｅｓｔｍｅｎｔｓ； ｌｏａｎｓ ａｎｄ ａｃｃｏｕｎｔ ｒｅｃｅｉｖａｂｌｅｓ； ａｖａｉｌａｂｌｅ－ｆｏｒ－ｓａｌｅ ｆｉｎａｎｃｉａｌ ａｓｓｅｔｓ．
Ｆｉｎａｎｃｉａｌ ｌｉａｂｉｌｉｔｉｅｓ ｓｈａｌｌ ｂｅ ｃｌａｓｓｉｆｉｅｄ ｉｎｔｏ ｔｈｅ ｆｏｌｌｏｗｉｎｇ ｔｗｏ ｃａｔｅｇｏｒｉｅｓ ｗｈｅｎ ｔｈｅｙ ａｒｅ
ｉｎｉｔｉａｌｌｙ ｒｅｃｏｇｎｉｚｅｄ： ｔｈｅ ｆｉｎａｎｃｉａｌ ｌｉａｂｉｌｉｔｉｅｓ ｗｈｉｃｈ ａｒｅ ｍｅａｓｕｒｅｄ ａｔ ｔｈｅｉｒ ｆａｉｒ ｖａｌｕｅｓ ａｎｄ ｏｆ
ｗｈｉｃｈ ｔｈｅ ｖａｒｉａｔｉｏｎ ｉｓ ｉｎｃｌｕｄｅｄ ｉｎ ｔｈｅ ｃｕｒｒｅｎｔ ｐｒｏｆｉｔｓ ａｎｄ ｌｏｓｓｅｓ， ｉｎｃｌｕｄｉｎｇ ｔｒａｎｓａｃｔｉｏｎａｌ
ｆｉｎａｎｃｉａｌ ｌｉａｂｉｌｉｔｉｅｓ ａｎｄ ｔｈｅ ｄｅｓｉｇｎａｔｅｄ ｆｉｎａｎｃｉａｌ ｌｉａｂｉｌｉｔｉｅｓ ｗｈｉｃｈ ａｒｅ ｍｅａｓｕｒｅｄ ａｔ ｔｈｅｉｒ ｆａｉｒ
ｖａｌｕｅｓ ａｎｄ ｏｆ ｗｈｉｃｈ ｔｈｅ ｖａｒｉａｔｉｏｎ ｉｓ ｉｎｃｌｕｄｅｄ ｉｎ ｔｈｅ ｃｕｒｒｅｎｔ ｐ ｒｏｆｉｔｓ ａｎｄ ｌｏｓｓｅｓ； ａｎｄ ｏｔｈｅｒ ｆｉｎａｎｃｉａｌ
ｌｉａｂｉｌｉｔｉｅｓ．
（２） Ｒｅｃｏｇｎｉｔｉｏｎ ａｎｄ ｍｅａｓｕｒｅｍｅｎｔ ｏｆ ｆｉｎａｎｃｉａｌ ｉｎｓｔｒｕｍｅｎｔｓ
Ｗｈｅｎ ａｎ ｅｎｔｅｒｐｒｉｓｅ ｂｅｃｏｍｅｓ ａ ｐａｒｔｙ ｔｏ ａ ｆｉｎａｎｃｉａｌ ｉｎｓｔｒｕｍｅｎｔ， ｉｔ ｓｈａｌｌ ｒｅｃｏｇｎｉｚｅ ａ ｆｉｎａｎｃｉａｌ
ａｓｓｅｔ ｏｒ ｆｉｎａｎｃｉａｌ ｌｉａｂｉｌｉｔｙ． Ｔｈｅ ｆｉｎａｎｃｉａｌ ａｓｓｅｔｓ ａｎｄ ｆｉｎａｎｃｉａｌ ｌｉａｂｉｌｉｔｉｅｓ ｉｎｉｔｉａｌｌｙ ｒｅｃｏｇｎｉｚｅｄ
ｂｙ ａｎ ｅｎｔｅｒｐｒｉｓｅ ｅｘｃｅｐｔ ｌｏａｎｓ ａｎｄ ａｃｃｏｕｎｔ ｒｅｃｅｉｖａｂｌｅｓ ｓｈａｌｌ ｂｅ ｍｅａｓｕｒｅｄ ａｔ ｔｈｅｉｒ ｆａｉｒ ｖａｌｕｅｓ；
ｌｏａｎｓ ａｎｄ ａｃｃｏｕｎｔ ｒｅｃｅｉｖａｂｌｅｓ ｉｎｉｔｉａｌｌｙ ｒｅｃｏｇｎｉｚｅｄ ｂｙ ａｎ ｅｎｔｅｒｐｒｉｓｅ ｓｈａｌｌ ｂｅ ｍｅａｓｕｒｅｄ ａｔ ｐｒｉｃｅ
ｉｎ ｔｈｅ ｃｏｎｔｒａｃｔ ｏｒ ａｇｒｅｅｍｅｎｔ． Ｆｏｒ ｔｈｅ ｆｉｎａｎｃｉａｌ ａｓｓｅｔｓ ａｎｄ ｌｉａｂｉｌｉｔｉｅｓ ｍｅａｓｕｒｅｄ ａｔ ｔｈｅｉｒ ｆａｉｒ
ｖａｌｕｅｓ ａｎｄ ｏｆ ｗｈｉｃｈ ｔｈｅ ｖａｒｉａｔｉｏｎ ｉｓ ｒｅｃｏｒｄｅｄ ｉｎｔｏ ｔｈｅ ｐｒｏｆｉｔｓ ａｎｄ ｌｏｓｓｅｓ ｏｆ ｔｈｅ ｃｕｒｒｅｎｔ ｐｅｒｉｏｄ，
ｔｈｅ ｔｒａｎｓａｃｔｉｏｎ ｅｘｐｅｎｓｅｓ ｔｈｅｒｅｏｆ ｓｈａｌｌ ｂｅ ｄｉｒｅｃｔｌｙ ｒｅｃｏｒｄｅｄ ｉｎｔｏ ｔｈｅ ｐｒｏｆｉｔｓ ａｎｄ ｌｏｓｓｅｓ ｏｆ ｔｈｅ
ｃｕｒｒｅｎｔ ｐｅｒｉｏｄ； ｆｏｒ ｏｔｈｅｒ ｃａｔｅｇｏｒｉｅｓ ｏｆ ｆｉｎａｎｃｉａｌ ａｓｓｅｔｓ ａｎｄ ｆｉｎａｎｃｉａｌ ｌｉａｂｉｌｉｔｉｅｓ， ｔｈｅ
ｔｒａｎｓａｃｔｉｏｎ ｅｘｐｅｎｓｅｓ ｔｈｅｒｅｏｆ ｓｈａｌｌ ｂｅ ｉｎｃｌｕｄｅｄ ｉｎｔｏ ｔｈｅ ｉｎｉｔｉａｌｌｙ ｒｅｃｏｇｎｉｚｅｄ ａｍｏｕｎｔ．
Ａｎ ｅｎｔｅｒｐｒｉｓｅ ｓｈａｌｌ ｍａｋｅ ｓｕｂｓｅｑｕｅｎｔ ｍｅａｓｕｒｅｍｅｎｔ ｏｎ ｉｔｓ ｆｉｎａｎｃｉａｌ ａｓｓｅｔｓ ａｃｃｏｒｄｉｎｇ ｔｏ ｔｈｅｉｒ
ｆａｉｒ ｖａｌｕｅｓ， ａｎｄ ｍａｙ ｎｏｔ ｄｅｄｕｃｔ ｔｈｅ ｔｒａｎｓａｃｔｉｏｎ ｅｘｐｅｎｓｅｓ ｔｈａｔ ｍａｙ ｏｃｃｕｒ ｗｈｅｎ ｉｔ ｄｉｓｐｏｓｅｓ ｏｆ ｔｈｅ
ｓａｉｄ ｆｉｎａｎｃｉａｌ ａｓｓｅｔ ｉｎ ｔｈｅ ｆｕｔｕｒｅ． Ｈｏｗｅｖｅｒ， ｔｈｏｓｅ ｕｎｄｅｒ ｔｈｅ ｆｏｌｌｏｗｉｎｇ ｃｉｒｃｕｍｓｔａｎｃｅｓ ｓｈａｌｌ ｂｅ
ｅｘｃｌｕｄｅｄ： ａ． Ｔｈｅ ｉｎｖｅｓｔｍｅｎｔｓ ｈｅｌｄ ｕｎｔｉｌ ｔｈｅｉｒ ｍａｔｕｒｉｔｙ， ｌｏａｎｓ ａｎｄ ａｃｃｏｕｎｔｓ ｒｅｃｅｉｖａｂｌｅ ｓｈａｌｌ ｂｅ
ｍｅａｓｕｒｅｄ ｏｎ ｔｈｅ ｂａｓｉｓ ｏｆ ｔｈｅ ｐｏｓｔ－ａｍｏｒｔｉｚａｔｉｏｎ ｃｏｓｔｓ ｂｙ ａｄｏｐｔｉｎｇ ｔｈｅ ａｃｔｕａｌ ｉｎｔｅｒｅｓｔ ｒａｔｅ ｍｅｔｈｏｄ；
ｂ． Ｔｈｅ ｅｑｕｉｔｙ ｗｈｏｓｅ ｆａｉｒ ｖａｌｕｅ ｃａｎｎｏｔ ｂｅ ｍｅａｓｕｒｅｄ ｒｅｌｉａｂｌｙ， ａｎｄ ｔｈｅ ｄｅｒｉｖａｔｉｖｅ ｆｉｎａｎｃｉａｌ ａｓｓｅｔｓ
ｗｈｉｃｈ ａｒｅ ｃｏｎｎｅｃｔｅｄ ｗｉｔｈ ｔｈｅ ｓａｉｄ ｅｑｕｉｔｙ ｉｎｓｔｒｕｍｅｎｔ ａｎｄ ｍｕｓｔ ｂｅ ｓｅｔｔｌｅｄ ｂｙ ｄｅｌｉｖｅｒｉｎｇ ｔｈｅ ｓａｉｄ
ｅｑｕｉｔｙ ｉｎｓｔｒｕｍｅｎｔ ｓｈａｌｌ ｂｅ ｍｅａｓｕｒｅｄ ｏｎ ｔｈｅ ｂａｓｉｓ ｏｆ ｔｈｅｉｒ ｃｏｓｔｓ．
Ａｎ ｅｎｔｅｒｐｒｉｓｅ ｓｈａｌｌ ｍａｋｅ ｓｕｂｓｅｑｕｅｎｔ ｍｅａｓｕｒｅｍｅｎｔ ｏｎ ｉｔｓ ｆｉｎａｎｃｉａｌ ｌｉａｂｉｌｉｔｉｅｓ ｏｎ ｔｈｅ ｂａｓｉｓ ｏｆ ｔｈｅ
ｐｏｓｔ－ａｍｏｒｔｉｚａｔｉｏｎ ｃｏｓｔｓ ｂｙ ａｄｏｐｔｉｎｇ ｔｈｅ ａｃｔｕａｌ ｉｎｔｅｒｅｓｔ ｒａｔｅ ｍｅｔｈｏｄ， ｗｉｔｈ ｔｈｅ ｅｘｃｅｐｔｉｏｎ ｏｆ ｔｈｏｓｅ ｕｎｄｅｒ ｔｈｅ
ｆｏｌｌｏｗｉｎｇ ｃｉｒｃｕｍｓｔａｎｃｅｓ： ａ． Ｆｏｒ ｔｈｅ ｆｉｎａｎｃｉａｌ ｌｉａｂｉｌｉｔｉｅｓ ｍｅａｓｕｒｅｄ ａｔ ｔｈｅｉｒ ｆａｉｒ ｖａｌｕｅｓ ａｎｄ ｏｆ ｗｈｉｃｈ ｔｈｅ
ｖａｒｉａｔｉｏｎ ｉｓ ｒｅｃｏｒｄｅｄ ｉｎｔｏ ｔｈｅ ｐｒｏｆｉｔｓ ａｎｄ ｌｏｓｓｅｓ ｏｆ ｔｈｅ ｃｕｒｒｅｎｔ ｐｅｒｉｏｄ， ｔｈｅｙ ｓｈａｌｌ ｂｅ ｍｅａｓｕｒｅｄ ａｔ ｔｈｅｉｒ
ｆａｉｒ ｖａｌｕｅｓ， ａｎｄ ｎｏｎｅ ｏｆ ｔｈｅ ｔｒａｎｓａｃｔｉｏｎ ｅｘｐｅｎｓｅｓ ｍａｙ ｂｅ ｄｅｄｕｃｔｅｄ， ｗｈｉｃｈ ｍａｙ ｏｃｃｕｒ ｗｈｅｎ ｔｈｅ ｆｉｎａｎｃｉａｌ
ｌｉａｂｉｌｉｔｉｅｓ ａｒｅ ｓｅｔｔｌｅｄ ｉｎ ｔｈｅ ｆｕｔｕｒｅ． ｂ． Ｆｏｒ ｔｈｅ ｄｅｒｉｖａｔｉｖｅ ｆｉｎａｎｃｉａｌ ｌｉａｂｉｌｉｔｉｅｓ， ｗｈｉｃｈ ａｒｅ ｃｏｎｎｅｃｔｅｄ ｔｏ
ｔｈｅ ｅｑｕｉｔｙ ｉｎｓｔｒｕｍｅｎｔ ｆｏｒ ｗｈｉｃｈ ｔｈｅｒｅ ｉｓ ｎｏ ｑｕｏｔａｔｉｏｎ ｉｎ ｔｈｅ ａｃｔｉｖｅ ｍａｒｋｅｔ ａｎｄ ｗｈｏｓｅ ｆａｉｒ ｖａｌｕｅ ｃａｎｎｏｔ ｂｅ
ｒｅｌｉａｂｌｙ ｍｅａｓｕｒｅｄ， ａｎｄ ｗｈｉｃｈ ｍｕｓｔ ｂｅ ｓｅｔｔｌｅｄ ｂｙ ｄｅｌｉｖｅｒｉｎｇ ｔｈｅ ｅｑｕｉｔｙ ｉｎｓｔｒｕｍｅｎｔ， ｔｈｅｙ ｓｈａｌｌ ｂｅ ｍｅａｓｕｒｅｄ
ｏｎ ｔｈｅ ｂａｓｉｓ ｏｆ ｔｈｅｉｒ ｃｏｓｔｓ． ｃ． Ｆｏｒ ｔｈｅ ｆｉｎａｎｃｉａｌ ｇｕａｒａｎｔｅｅ ｃｏｎｔｒａｃｔｓ ｗｈｉｃｈ ａｒｅ ｎｏｔ ｄｅｓｉｇｎａｔｅｄ ａｓ ａ ｆｉｎａｎｃｉａｌ
ｌｉａｂｉｌｉｔｙ ｍｅａｓｕｒｅｄ ａｔ ｉｔｓ ｆａｉｒ ｖａｌｕｅ ａｎｄ ｔｈｅ ｖａｒｉａｔｉｏｎ ｔｈｅｒｅｏｆ ｉｓ ｒｅｃｏｒｄｅｄ ｉｎｔｏ ｔｈｅ ｐｒｏｆｉｔｓ ａｎｄ ｌｏｓｓｅｓ ｏｆ
ｔｈｅ ｃｕｒｒｅｎｔ ｐｅｒｉｏｄ， ａｎｄ ｆｏｒ ｔｈｅ ｃｏｍｍｉｔｍｅｎｔｓ ｔｏ ｇｒａｎｔ ｌｏａｎｓ ｗｈｉｃｈ ａｒｅ ｎｏｔ ｄｅｓｉｇｎａｔｅｄ ｔｏ ｂｅ ｍｅａｓｕｒｅｄ ａｔ ｔｈｅ
ｆａｉｒ ｖａｌｕｅ ａｎｄ ｏｆ ｗｈｉｃｈ ｔｈｅ ｖａｒｉａｔｉｏｎ ｉｓ ｒｅｃｏｒｄｅｄ ｉｎｔｏ ｔｈｅ ｐｒｏｆｉｔｓ ａｎｄ ｌｏｓｓｅｓ ｏｆ ｔｈｅ ｃｕｒｒｅｎｔ ｐｅｒｉｏｄ ａｎｄ ｗｈｉｃｈ
ｗｉｌｌ ｅｎｊｏｙ ａｎ ｉｎｔｅｒｅｓｔ ｒａｔｅ ｌｏｗｅｒ ｔｈａｎ ｔｈａｔ ｏｆ ｔｈｅ ｍａｒｋｅｔ， ａ ｓｕｂｓｅｑｕｅｎｔ ｍｅａｓｕｒｅｍｅｎｔ ｓｈａｌｌ ｂｅ ｍａｄｅ ａｆｔｅｒ ｔｈｅｙ
ａｒｅ ｉｎｉｔｉａｌｌｙ ｒｅｃｏｇｎｉｚｅｄ ａｃｃｏｒｄｉｎｇ ｔｏ ｔｈｅ ｈｉｇｈｅｒ ｏｎｅ ｏｆ ｔｈｅ ｆｏｌｌｏｗｉｎｇ： ｔｈｅ ｂｅｓｔ ｅｓｔｉｍａｔｉｏｎ ｒｅｑｕｉｒｅｄ ｔｏ ｐａｙ
ｗｈｅｎ ｃａｒｒｙｉｎｇ ｏｕｔ ｔｈｅ ｐｒｅｖａｉｌｉｎｇ ｏｂｌｉｇａｔｉｏｎｓ， ａｎｄ ｉｎｉｔｉａｌｌｙ ｒｅｃｏｇｎｉｚｅｄ ａｍｏｕｎｔ ｄｅｄｕｃｔｉｎｇ ａｃｃｕｍｕｌａｔｉｖｅ
ａｍｏｒｔｉｚａｔｉｏｎ ｗｈｉｃｈ ａｄｏｐｔｓ ｔｈｅ ａｃｔｕａｌ ｉｎｔｅｒｅｓｔ ｒａｔｅ ｍｅｔｈｏｄ．
（３） Ｒｅｃｏｇｎｉｔｉｏｎ ａｎｄ ｍｅａｓｕｒｅｍｅｎｔ ｏｆ ｔｒａｎｓｆｅｒ ｏｆ ｆｉｎａｎｃｉａｌ ａｓｓｅｔｓ
Ｗｈｅｒｅ ａｎ ｅｎｔｅｒｐｒｉｓｅ ｈａｓ ｔｒａｎｓｆｅｒｒｅｄ ｎｅａｒｌｙ ａｌｌ ｏｆ ｔｈｅ ｒｉｓｋｓ ａｎｄ ｒｅｗａｒｄｓ ｒｅｌａｔｅｄ ｔｏ ｔｈｅ ｏｗｎｅｒｓｈｉｐ ｏｆ ｔｈｅ
ｆｉｎａｎｃｉａｌ ａｓｓｅｔ ｔｏ ｔｈｅ ｔｒａｎｓｆｅｒｅｅ， ｉｔ ｓｈａｌｌ ｓｔｏｐ ｒｅｃｏｇｎｉｚｉｎｇ ｔｈｅ ｆｉｎａｎｃｉａｌ ａｓｓｅｔ． Ｉｆ ｉｔ ｒｅｔａｉｎｅｄ ｎｅａｒｌｙ ａｌｌ
ｏｆ ｔｈｅ ｒｉｓｋｓ ａｎｄ ｒｅｗａｒｄｓ ｒｅｌａｔｅｄ ｔｏ ｔｈｅ ｏｗｎｅｒｓｈｉｐ ｏｆ ｔｈｅ ｆｉｎａｎｃｉａｌ ａｓｓｅｔ， ｉｔ ｓｈａｌｌ ｎｏｔ ｓｔｏｐ ｒｅｃｏｇｎｉｚｉｎｇ ｔｈｅ
ｆｉｎａｎｃｉａｌ ａｓｓｅｔ． Ｗｈｅｒｅ ａｎ ｅｎｔｅｒｐｒｉｓｅ ｄｏｅｓ ｎｏｔ ｔｒａｎｓｆｅｒ ｏｒ ｒｅｔａｉｎ ｎｅａｒｌｙ ａｌｌ ｏｆ ｔｈｅ ｒｉｓｋｓ ａｎｄ ｒｅｗａｒｄｓ ｒｅｌａｔｅｄ
ｔｏ ｔｈｅ ｏｗｎｅｒｓｈｉｐ ｏｆ ａ ｆｉｎａｎｃｉａｌ ａｓｓｅｔ， ｉｔ ｓｈａｌｌ ｄｅａｌ ｗｉｔｈ ｉｔ ａｃｃｏｒｄｉｎｇ ｔｏ ｔｈｅ ｃｉｒｃｕｍｓｔａｎｃｅｓ ａｓ ｆｏｌｌｏｗｓ，
ｒｅｓｐｅｃｔｉｖｅｌｙ： ａ． Ｉｆ ｉｔ ｇｉｖｅｓ ｕｐ ｉｔｓ ｃｏｎｔｒｏｌ ｏｖｅｒ ｔｈｅ ｆｉｎａｎｃｉａｌ ａｓｓｅｔ， ｉｔ ｓｈａｌｌ ｓｔｏｐ ｒｅｃｏｇｎｉｚｉｎｇ ｔｈｅ ｆｉｎａｎｃｉａｌ
ａｓｓｅｔ； ｂ． Ｉｆ ｉｔ ｄｏｅｓ ｎｏｔ ｇｉｖｅ ｕｐ ｉｔｓ ｃｏｎｔｒｏｌ ｉｎｖｏｌｖｅｍｅｎｔ ｉｎ ｔｈｅ ｔｒａｎｓｆｅｒｒｅｄ ｆｉｎａｎｃｉａｌ ａｓｓｅｔ， ｒｅｃｏｇｎｉｚｅ ｔｈｅ
ｒｅｌａｔｅｄ ｆｉｎａｎｃｉａｌ ａｓｓｅｔ ａｎｄ ｒｅｃｏｇｎｉｚｅ ｔｈｅ ｒｅｌｅｖａｎｔ ｌｉａｂｉｌｉｔｙ ａｃｃｏｒｄｉｎｇｌｙ．
Ｉｆ ｔｈｅ ｔｒａｎｓｆｅｒ ｏｆ ａｎ ｅｎｔｉｒｅ ｆｉｎａｎｃｉａｌ ａｓｓｅｔ ｓａｔｉｓｆｉｅｓ ｔｈｅ ｃｏｎｄｉｔｉｏｎｓ ｆｏｒ ｓｔｏｐｐｉｎｇ ｒｅｃｏｇｎｉｔｉｏｎ， ｔｈｅ
ｄｉｆｆｅｒｅｎｃｅ ｂｅｔｗｅｅｎ ｔｈｅ ａｍｏｕｎｔｓ ｏｆ ｔｈｅ ｆｏｌｌｏｗｉｎｇ ２ ｉｔｅｍｓ ｓｈａｌｌ ｂｅ ｒｅｃｏｒｄｅｄ ｉｎ ｔｈｅ ｐｒｏｆｉｔｓ ａｎｄ ｌｏｓｓｅｓ ｏｆ ｔｈｅ
ｃｕｒｒｅｎｔ ｐｅｒｉｏｄ： ａ． Ｔｈｅ ｂｏｏｋ ｖａｌｕｅ ｏｆ ｔｈｅ ｔｒａｎｓｆｅｒｒｅｄ ｆｉｎａｎｃｉａｌ ａｓｓｅｔ； ｂ． Ｔｈｅ ｓｕｍ ｏｆ ｃｏｎｓｉｄｅｒａｔｉｏｎ ｒｅｃｅｉｖｅｄ
ｆｒｏｍ ｔｈｅ ｔｒａｎｓｆｅｒ， ａｎｄ ｔｈｅ ａｃｃｕｍｕｌａｔｉｖｅ ａｍｏｕｎｔ ｏｆ ｔｈｅ ｃｈａｎｇｅｓ ｏｆ ｔｈｅ ｆａｉｒ ｖａｌｕｅ ｏｒｉｇｉｎａｌｌｙ ｒｅｃｏｒｄｅｄ ｉｎ ｔｈｅ
ｏｗｎｅｒ＇ｓ ｅｑｕｉｔｉｅｓ． Ｉｆ ｔｈｅ ｔｒａｎｓｆｅｒ ｏｆ ｐａｒｔｉａｌ ｆｉｎａｎｃｉａｌ ａｓｓｅｔ ｓａｔｉｓｆｉｅｓ ｔｈｅ ｃｏｎｄｉｔｉｏｎｓ ｔｏ ｓｔｏｐ ｔｈｅ ｒｅｃｏｇｎｉｔｉｏｎ，
ｔｈｅ ｅｎｔｉｒｅ ｂｏｏｋ ｖａｌｕｅ ｏｆ ｔｈｅ ｔｒａｎｓｆｅｒｒｅｄ ｆｉｎａｎｃｉａｌ ａｓｓｅｔ ｓｈａｌｌ， ｂｅｔｗｅｅｎ ｔｈｅ ｐｏｒｔｉｏｎ ｗｈｏｓｅ ｒｅｃｏｇｎｉｔｉｏｎ ｈａｓ
ｂｅｅｎ ｓｔｏｐｐｅｄ ａｎｄ ｔｈｅ ｐｏｒｔｉｏｎ ｗｈｏｓｅ ｒｅｃｏｇｎｉｔｉｏｎ ｈａｓ ｎｏｔ ｂｅｅｎ ｓｔｏｐｐｅｄ， ｂｅ ａｐｐｏｒｔｉｏｎｅｄ ａｃｃｏｒｄｉｎｇ ｔｏ ｔｈｅｉｒ
ｒｅｓｐｅｃｔｉｖｅ ｒｅｌａｔｉｖｅ ｆａｉｒ ｖａｌｕｅ， ａｎｄ ｔｈｅ ｄｉｆｆｅｒｅｎｃｅ ｂｅｔｗｅｅｎ ｔｈｅ ａｍｏｕｎｔｓ ｏｆ ｔｈｅ ｆｏｌｌｏｗｉｎｇ ２ ｉｔｅｍｓ ｓｈａｌｌ ｂｅ
ｉｎｃｌｕｄｅｄ ｉｎｔｏ ｔｈｅ ｐｒｏｆｉｔｓ ａｎｄ ｌｏｓｓｅｓ ｏｆ ｔｈｅ ｃｕｒｒｅｎｔ ｐｅｒｉｏｄ ： ａ． Ｔｈｅ ｂｏｏｋ ｖａｌｕｅ ｏｆ ｔｈｅ ｐｏｒｔｉｏｎ ｗｈｏｓｅ ｒｅｃｏｇｎｉｔｉｏｎ
ｈａｓ ｂｅｅｎ ｓｔｏｐｐｅｄ； ｂ． Ｔｈｅ ｓｕｍ ｏｆ ｃｏｎｓｉｄｅｒａｔｉｏｎ ｏｆ ｔｈｅ ｐｏｒｔｉｏｎ ｗｈｏｓｅ ｒｅｃｏｇｎｉｔｉｏｎ ｈａｓ ｂｅｅｎ ｓｔｏｐｐｅｄ， ａｎｄ ｔｈｅ
ｐｏｒｔｉｏｎ ｏｆ ｔｈｅ ａｃｃｕｍｕｌａｔｉｖｅ ａｍｏｕｎｔ ｏｆ ｔｈｅ ｃｈａｎｇｅｓ ｉｎ ｔｈｅ ｆａｉｒ ｖａｌｕｅ ｏｒｉｇｉｎａｌｌｙ ｒｅｃｏｒｄｅｄ ｉｎ ｔｈｅ ｏｗｎｅｒ＇ｓ ｅｑｕｉｔｉｅｓ
ｗｈｉｃｈ ｉｓ ｃｏｒｒｅｓｐｏｎｄｉｎｇ ｔｏ ｔｈｅ ｐｏｒｔｉｏｎ ｗｈｏｓｅ ｒｅｃｏｇｎｉｔｉｏｎ ｈａｓ ｂｅｅｎ ｓｔｏｐｐｅｄ．
（４） Ｄｅｔｅｒｍｉｎａｔｉｏｎ ｏｆ ｔｈｅ ｆａｉｒ ｖａｌｕｅ ｏｆ ｍａｉｎ ｆｉｎａｎｃｉａｌ ａｓｓｅｔｓ ａｎｄ ｆｉｎａｎｃｉａｌ ｌｉａｂｉｌｉｔｉｅｓ
Ａｓ ｆｏｒ ｔｈｅ ｆｉｎａｎｃｉａｌ ａｓｓｅｔｓ ｏｒ ｆｉｎａｎｃｉａｌ ｌｉａｂｉｌｉｔｉｅｓ ｆｏｒ ｗｈｉｃｈ ｔｈｅｒｅ ｉｓ ａｎ ａｃｔｉｖｅ ｍａｒｋｅｔ， ｔｈｅ ｑｕｏｔｅｄ
ｐｒｉｃｅｓ ｉｎ ｔｈｅ ａｃｔｉｖｅ ｍａｒｋｅｔ ｓｈａｌｌ ｂｅ ｕｓｅｄ ｔｏ ｄｅｔｅｒｍｉｎｅ ｔｈｅ ｆａｉｒ ｖａｌｕｅｓ ｔｈｅｒｅｏｆ． Ｗｈｅｒｅ ｔｈｅｒｅ ｉｓ ｎｏ ａｃｔｉｖｅ
ｍａｒｋｅｔ ｆｏｒ ａ ｆｉｎａｎｃｉａｌ ｉｎｓｔｒｕｍｅｎｔ， ｔｈｅ ｅｎｔｅｒｐｒｉｓｅ ｃｏｎｃｅｒｎｅｄ ｓｈａｌｌ ａｄｏｐｔ ｖａｌｕｅ ａｐｐｒａｉｓａｌ ｔｅｃｈｎｉｑｕｅｓ ｔｏ
ｄｅｔｅｒｍｉｎｅ ｉｔｓ ｆａｉｒ ｖａｌｕｅ． Ｔｈｅ ｖａｌｕｅ ａｐｐｒａｉｓａｌ ｔｅｃｈｎｉｑｕｅｓ ｍａｉｎｌｙ ｉｎｃｌｕｄｅ ｔｈｅ ｐｒｉｃｅｓ ａｄｏｐｔｅｄ ｂｙ ｔｈｅ ｐａｒｔｉｅｓ，
ｗｈｏ ａｒｅ ｆａｍｉｌｉａｒ ｗｉｔｈ ｔｈｅ ｃｏｎｄｉｔｉｏｎ， ｉｎ ｔｈｅ ｌａｔｅｓｔ ｍａｒｋｅｔ ｔｒａｎｓａｃｔｉｏｎ ｕｐｏｎ ｔｈｅｉｒ ｏｗｎ ｆｒｅｅ ｗｉｌｌ， ｔｈｅ ｃｕｒｒｅｎｔ
ｆａｉｒ ｖａｌｕｅ ｏｂｔａｉｎｅｄ ｂｙ ｒｅｆｅｒｒｉｎｇ ｔｏ ｏｔｈｅｒ ｆｉｎａｎｃｉａｌ ｉｎｓｔｒｕｍｅｎｔｓ ｏｆ ｔｈｅ ｓａｍｅ ｅｓｓｅｎｔｉａｌ ｎａｔｕｒｅ， ｔｈｅ ｃａｓｈ ｆｌｏｗ
ｃａｐｉｔａｌｉｚａｔｉｏｎ ｍｅｔｈｏｄ ａｎｄ ｔｈｅ ｏｐｔｉｏｎ ｐｒｉｃｉｎｇ ｍｏｄｅｌ， ｅｔｃ． Ａｓ ｆｏｒ ｔｈｅ ｆｉｎａｎｃｉａｌ ａｓｓｅｔｓ ｉｎｉｔｉａｌｌｙ ｏｂｔａｉｎｅｄ ｏｒ
ｐｒｏｄｕｃｅｄ ａｔ ｓｏｕｒｃｅ ａｎｄ ｔｈｅ ｆｉｎａｎｃｉａｌ ｌｉａｂｉｌｉｔｉｅｓ ａｓｓｕｍｅｄ， ｔｈｅ ｆａｉｒ ｖａｌｕｅ ｔｈｅｒｅｏｆ ｓｈａｌｌ ｂｅ ｄｅｔｅｒｍｉｎｅｄ ｏｎ ｔｈｅ
ｂａｓｉｓ ｏｆ ｔｈｅ ｔｒａｎｓａｃｔｉｏｎ ｐｒｉｃｅ ｏｆ ｔｈｅ ｍａｒｋｅｔ．
（５） Ｉｍｐａｉｒｍｅｎｔ ｏｆ ｆｉｎａｎｃｉａｌ ａｓｓｅｔｓ
Ａｎ ｅｎｔｅｒｐｒｉｓｅ ｓｈａｌｌ ｃａｒｒｙ ｏｕｔ ａｎ ｉｎｓｐｅｃｔｉｏｎ， ｏｎ ｔｈｅ ｂａｌａｎｃｅ ｓｈｅｅｔ ｄａｙ， ｏｎ ｔｈｅ ｃａｒｒｙｉｎｇ ａｍｏｕｎｔ ｏｆ ｔｈｅ
ｆｉｎａｎｃｉａｌ ａｓｓｅｔｓ ｏｔｈｅｒ ｔｈａｎ ｔｈｏｓｅ ｍｅａｓｕｒｅｄ ａｔ ｔｈｅｉｒ ｆａｉｒ ｖａｌｕｅｓ ａｎｄ ｏｆ ｗｈｉｃｈ ｔｈｅ ｖａｒｉａｔｉｏｎ ｉｓ ｒｅｃｏｒｄｅｄ ｉｎｔｏ
ｔｈｅ ｐｒｏｆｉｔｓ ａｎｄ ｌｏｓｓｅｓ ｏｆ ｔｈｅ ｃｕｒｒｅｎｔ ｐｅｒｉｏｄ． Ａｎ ｉｍｐａｉｒｍｅｎｔ ｔｅｓｔ ｓｈａｌｌ ｂｅ ｍａｄｅ ｏｎ ｔｈｅ ｆｉｎａｎｃｉａｌ ａｓｓｅｔｓ ｗｉｔｈ
ｓｉｇｎｉｆｉｃａｎｔ ｓｉｎｇｌｅ ａｍｏｕｎｔｓ． Ｗｉｔｈ ｒｅｇａｒｄ ｔｏ ｔｈｅ ｆｉｎａｎｃｉａｌ ａｓｓｅｔｓ ｗｉｔｈ ｉｎｓｉｇｎｉｆｉｃａｎｔ ｓｉｎｇｌｅ ａｍｏｕｎｔｓ， ｔｈｅｙ ｓｈａｌｌ
ｂｅ ｉｎｃｌｕｄｅｄ ｉｎ ａ ｃｏｍｂｉｎａｔｉｏｎ ｏｆ ｆｉｎａｎｃｉａｌ ａｓｓｅｔｓ ｗｉｔｈ ｓｉｍｉｌａｒ ｃｒｅｄｉｔ ｒｉｓｋ ｆｅａｔｕｒｅｓ ｓｏ ａｓ ｔｏ ｃａｒｒｙ ｏｕｔ ａｎ
ｉｍｐａｉｒｍｅｎｔ－ｒｅｌａｔｅｄ ｔｅｓｔ． Ｗｈｅｒｅ， ｕｐｏｎ ｉｎｄｅｐｅｎｄｅｎｔ ｔｅｓｔ， ｔｈｅ ｆｉｎａｎｃｉａｌ ａｓｓｅｔ （ｉｎｃｌｕｄｉｎｇ ｔｈｏｓｅ ｆｉｎａｎｃｉａｌ ａｓｓｅｔｓ
ｗｉｔｈ ｓｉｇｎｉｆｉｃａｎｔ ｓｉｎｇｌｅ ａｍｏｕｎｔｓ ａｎｄ ｔｈｏｓｅ ｗｉｔｈ ｉｎｓｉｇｎｉｆｉｃａｎｔ ａｍｏｕｎｔｓ） ｈａｓ ｎｏｔ ｂｅｅｎ ｉｍｐａｉｒｅｄ， ｉｔ ｓｈａｌｌ ｂｅ
ｉｎｃｌｕｄｅｄ ｉｎ ａ ｃｏｍｂｉｎａｔｉｏｎ ｏｆ ｆｉｎａｎｃｉａｌ ａｓｓｅｔｓ ｗｉｔｈ ｓｉｍｉｌａｒ ｒｉｓｋ ｆｅａｔｕｒｅｓ ｓｏ ａｓ ｔｏ ｃｏｎｄｕｃｔ ａｎｏｔｈｅｒ ｉｍｐａｉｒｍｅｎｔ
ｔｅｓｔ．
Ｗｈｅｒｅ ａ ｆｉｎａｎｃｉａｌ ａｓｓｅｔ ｍｅａｓｕｒｅｄ ｏｎ ｔｈｅ ｂａｓｉｓ ｏｆ ｐｏｓｔ－ａｍｏｒｔｉｚａｔｉｏｎ ｃｏｓｔｓ ｉｓ ｉｍｐａｉｒｅｄ， ｔｈｅ ｃａｒｒｙｉｎｇ ａｍｏｕｎｔ
ｏｆ ｔｈｅ ｓａｉｄ ｆｉｎａｎｃｉａｌ ａｓｓｅｔ ｓｈａｌｌ ｂｅ ｗｒｉｔｔｅｎ ｄｏｗｎ ｔｏ ｔｈｅ ｃｕｒｒｅｎｔ ｖａｌｕｅ ｏｆ ｔｈｅ ｐｒｅｄｉｃｔｅｄ ｆｕｔｕｒｅ ｃａｓｈ ｆｌｏｗ
（ｅｘｃｌｕｄｉｎｇ ｔｈｅ ｌｏｓｓ ｏｆ ｆｕｔｕｒｅ ｃｒｅｄｉｔｓ ｎｏｔ ｙｅｔ ｏｃｃｕｒｒｅｄ）， ａｎｄ ｔｈｅ ａｍｏｕｎｔ ａｓ ｗｒｉｔｔｅｎ ｄｏｗｎ ｓｈａｌｌ ｂｅ ｒｅｃｏｇｎｉｚｅｄ
ａｓ ｌｏｓｓ ｏｆ ｔｈｅ ｉｍｐａｉｒｍｅｎｔ ｏｆ ｔｈｅ ａｓｓｅｔ． Ｗｈｅｒｅ ｔｈｅｒｅ ｉｓ ａ ｖｅｒｙ ｓｍａｌｌ ｇａｐ ｂｅｔｗｅｅｎ ｔｈｅ ｐｒｅｄｉｃｔｅｄ ｆｕｔｕｒｅ ｃａｓｈ
ｆｌｏｗ ｏｆ ａ ｓｈｏｒｔ－ｔｅｒｍ ａｃｃｏｕｎｔ ｒｅｃｅｉｖａｂｌｅ ｉｔｅｍ ａｎｄ ｔｈｅ ｃｕｒｒｅｎｔ ｖａｌｕｅ ｔｈｅｒｅｏｆ， ｔｈｅ ｐｒｅｄｉｃｔｅｄ ｆｕｔｕｒｅ ｃａｓｈ ｆｌｏｗ
ｉｓ ｎｏｔ ｒｅｑｕｉｒｅｄ ｔｏ ｂｅ ｃａｐｉｔａｌｉｚｅｄ ｗｈｅｎ ｄｅｔｅｒｍｉｎｉｎｇ ｔｈｅ ｒｅｌｅｖａｎｔ ｉｍｐａｉｒｍｅｎｔ－ｒｅｌａｔｅｄ ｌｏｓｓｅｓ． Ｗｈｅｒｅ ａｎ ｅｑｕｉｔｙ
ｉｎｓｔｒｕｍｅｎｔ ｉｎｖｅｓｔｍｅｎｔ ｆｏｒ ｗｈｉｃｈ ｔｈｅｒｅ ｉｓ ｎｏ ｑｕｏｔｅｄ ｐｒｉｃｅ ｉｎ ｔｈｅ ａｃｔｉｖｅ ｍａｒｋｅｔ ａｎｄ ｗｈｏｓｅ ｆａｉｒ ｖａｌｕｅ ｃａｎｎｏｔ
ｂｅ ｒｅｌｉａｂｌｙ ｍｅａｓｕｒｅｄ， ｏｒ ａ ｄｅｒｉｖａｔｉｖｅ ｆｉｎａｎｃｉａｌ ａｓｓｅｔ ｗｈｉｃｈ ｉｓ ｃｏｎｎｅｃｔｅｄ ｗｉｔｈ ｔｈｅ ｅｑｕｉｔｙ ｉｎｓｔｒｕｍｅｎｔ ａｎｄ ｗｈｉｃｈ
ｍｕｓｔ ｂｅ ｓｅｔｔｌｅｄ ｂｙ ｄｅｌｉｖｅｒｉｎｇ ｔｈｅ ｅｑｕｉｔｙ ｉｎｓｔｒｕｍｅｎｔ， ｓｕｆｆｅｒｓ ｆｒｏｍ ａｎｙ ｉｍｐａｉｒｍｅｎｔ， ｔｈｅ ｇａｐ ｂｅｔｗｅｅｎ ｔｈｅ ｃａｒｒｙｉｎｇ
ａｍｏｕｎｔ ｏｆ ｔｈｅ ｅｑｕｉｔｙ ｉｎｓｔｒｕｍｅｎｔ ｉｎｖｅｓｔｍｅｎｔ ｏｒ ｔｈｅ ｄｅｒｉｖａｔｉｖｅ ｆｉｎａｎｃｉａｌ ａｓｓｅｔ ａｎｄ ｔｈｅ ｃｕｒｒｅｎｔ ｖａｌｕｅ ｏｆ ｔｈｅ
ｆｕｔｕｒｅ ｃａｓｈ ｆｌｏｗ ｏｆ ｓｉｍｉｌａｒ ｆｉｎａｎｃｉａｌ ａｓｓｅｔｓ ｃａｐｉｔａｌｉｚｅｄ ａｃｃｏｒｄｉｎｇ ｔｏ ｔｈｅ ｒｅｔｕｒｎｓ ｒａｔｉｏ ｏｆ ｔｈｅ ｍａｒｋｅｔ ａｔ
ｔｈｅ ｓａｍｅ ｔｉｍｅ ｓｈａｌｌ ｂｅ ｒｅｃｏｇｎｉｚｅｄ ａｓ ｉｍｐａｉｒｍｅｎｔ－ｒｅｌａｔｅｄ ｌｏｓｓｅｓ． Ｗｈｅｒｅ ａｖａｉｌａｂｌｅ－ｆｏｒ－ｓａｌｅ ｆｉｎａｎｃｉａｌ ａｓｓｅｔｓ
ａｒｅ ｉｍｐａｉｒｅｄ ｄｕｅ ｔｏ ｓｉｇｎｉｆｉｃａｎｔ ｄｒｏｐ ｏｆ ｆａｉｒ ｖａｌｕｅ ａｎｄ ｔｈｅ ｄｒｏｐ ｉｓ ｎｏｔ ｔｅｍｐｏｒａｒｙ， ｔｈｅ ａｃｃｕｍｕｌａｔｉｖｅ ｌｏｓｓｅｓ
ａｒｉｓｉｎｇ ｆｒｏｍ ｔｈｅ ｄｅｃｒｅａｓｅ ｏｆ ｔｈｅ ｆａｉｒ ｖａｌｕｅ ｏｆ ｔｈｅ ｏｗｎｅｒ’ｓ ｅｑｕｉｔｙ ｗｈｉｃｈ ｗａｓ ｄｉｒｅｃｔｌｙ ｉｎｃｌｕｄｅｄ ｓｈａｌｌ ｂｅ
ｔｒａｎｓｆｅｒｒｅｄ ｏｕｔ ａｎｄ ｒｅｃｏｒｄｅｄ ｉｎｔｏ ｔｈｅ ｐｒｏｆｉｔｓ ａｎｄ ｌｏｓｓｅｓ ｏｆ ｔｈｅ ｃｕｒｒｅｎｔ ｐｅｒｉｏｄ．
１０． Ａｃｃｏｕｎｔｓ ｒｅｃｅｉｖａｂｌｅ ａｎｄ ｂａｄ ｄｅｂｔｓ
（１） Ｍｅａｓｕｒｅｍｅｎｔ ｍｅｔｈｏｄ ａｎｄ ｔｈｅ ｐｅｒｃｅｎｔａｇｅ ｏｆ ｂａｄ ｄｅｂｔｓ
Ｍｅａｓｕｒｅｍｅｎｔ ｍｅｔｈｏｄ ｏｆ ｂａｄ ｄｅｂｔｓ： ａｃｃｏｕｎｔｅｄ ｗｉｔｈ ａｌｌｏｗａｎｃｅ ｍｅｔｈｏｄ．
Ａｔ ｔｈｅ ｅｎｄ ｏｆ ｔｈｅ ｐｅｒｉｏｄ， ｉｍｐａｉｒｍｅｎｔ ｔｅｓｔ ｓｈａｌｌ ｂｅ ｍａｄｅ ｏｎ ｉｎｄｉｖｉｄｕａｌ ａｃｃｏｕｎｔｓ ｒｅｃｅｉｖａｂｌｅ
ｗｉｔｈ ｓｉｇｎｉｆｉｃａｎｔ ａｍｏｕｎｔｓ． Ｉｆ ｔｈｅｒｅ ｉｓ ｏｂｊｅｃｔｉｖｅ ｅｖｉｄｅｎｃｅ ｔｈａｔ ｔｈｅｙ ｈａｖｅ ｂｅｅｎ ｉｍｐａｉｒｅｄ， ｂａｄ ｄｅｂｔ
ｌｏｓｓ ｓｈａｌｌ ｂｅ ｒｅｃｏｇｎｉｚｅｄ ａｎｄ ｐｒｏｖｉｓｉｏｎ ｆｏｒ ｂａｄ ｄｅｂｔｓ ｓｈａｌｌ ｂｅ ｍａｄｅ ｂａｓｅ ｏｎ ｔｈｅ ｄｉｆｆｅｒｅｎｃｅｓ ｂｅｔｗｅｅｎ
ｂｏｏｋ ｖａｌｕｅｓ ａｎｄ ｔｈｅ ｐｒｅｓｅｎｔ ｖａｌｕｅ ｏｆ ｆｕｔｕｒｅ ｃａｓｈ ｆｌｏｗｓ．
Ｆｏｒ ｔｈｏｓｅ ｉｎｄｉｖｉｄｕａｌ ａｃｃｏｕｎｔｓ ｒｅｃｅｉｖａｂｌｅ ｗｉｔｈｏｕｔ ｓｉｇｎｉｆｉｃａｎｔ ａｍｏｕｎｔｓ ａｔ ｔｈｅ ｅｎｄ ｏｆ ｔｈｅ ｐｅｒｉｏｄ，
ａｌｏｎｇ ｗｉｔｈ ｔｈｏｓｅ ａｃｃｏｕｎｔｓ ｒｅｃｅｉｖａｂｌｅ ｔｈａｔ ｈａｖｅ ｂｅｅｎ ｔｅｓｔｅｄ ｉｎｄｉｖｉｄｕａｌｌｙ ｂｕｔ ｎｏｔ ｉｍｐａｉｒｅｄ， ｔｈｅ
Ｃｏｍｐａｎｙ ｃｌａｓｓｉｆｉｅｓ ｔｈｅｍ ｉｎ ｌｉｎｅ ｗｉｔｈ ｓｉｍｉｌａｒ ｃｒｅｄｉｔ ｒｉｓｋ ｃｈａｒａｃｔｅｒｉｓｔｉｃｓ ｉｎｔｏ ｓｅｖｅｒａｌ ｇｒｏｕｐｓ，
ａｎｄ ｍａｋｅ ａ ｓｐｅｃｉｆｉｃ ｐｅｒｃｅｎｔａｇｅ ｏｆ ｂａｄ ｄｅｂｔｓ ｐｒｏｖｉｓｉｏｎ ｏｎ ｔｈｅ ａｃｃｏｕｎｔｓ ｒｅｃｅｉｖａｂｌｅ ｂａｌａｎｃｅｓ ａｔ
ｂａｌａｎｃｅ ｓｈｅｅｔ ｄａｔｅ． Ｏｎ ｔｈｅ ｂａｓｉｓ ｏｆ ｔｈｅ ａｃｔｕａｌ ｌｏｓｓ ｒａｔｅ ｏｆ ｒｅｃｅｉｖａｂｌｅ ａｃｃｏｕｎｔｓ， ｗｉｔｈ ｓａｍｅ ｏｒ
ｓｉｍｉｌａｒ ｃｒｅｄｉｔ ｒｉｓｋ ｃｈａｒａｃｔｅｒｉｓｔｉｃｓ ｏｆ ａｃｃｏｕｎｔｓ ｒｅｃｅｉｖａｂｌｅ ｐａｃｋａｇｅ ｉｎ ｐｒｅｖｉｏｕｓ ｙｅａｒ， ｔｈｅ Ｃｏｍｐａｎｙ
ａｌｓｏ ｃｏｎｓｉｄｅｒｓ ｃｕｒｒｅｎｔ ｓｉｔｕａｔｉｏｎ ａｎｄ ｄｅｔｅｒｍｉｎｅ ｔｈｅ ｐｅｒｃｅｎｔａｇｅ ｏｆ ｂａｄ ｄｅｂｔ ｐｒｏｖｉｓｉｏｎ．
Ｈｅｒｅ ｉｓ ｔｈｅ Ｃｏｍｐａｎｙ’ｓ ｂａｄ ｄｅｂｔｓ ｐｒｏｖｉｓｉｏｎ ｐｏｌｉｃｙ：
Percentage of Accounts Percentage of Others
Ages
Receivable ( % ) Receivable (%)
Within 1 year (including 1 year, same as following) 2 2
1 year to 2 years 5 5
2 years to 3 years 10 10
3 years to 4 years 20 20
4 years to 5 years 30 30
Over 5 years 50 50
Ｔｈｅｒｅ ｉｓ ｓｔｒｏｎｇ ｅｖｉｄｅｎｃｅ ｔｈａｔ ａｃｃｏｕｎｔｓ ｒｅｃｅｉｖａｂｌｅ ｃａｎ’ｔ ｂｅ ｒｅｃｏｖｅｒｅｄ ｏｒ ｌｉｔｔｌｅ ｐｏｓｓｉｂｉｌｉｔｙ
ｏｆ ｒｅｃｏｖｅｒｙ （ｉｔ ｉｓ ｕｎａｂｌｅ ｔｏ ｐａｙ ｉｎ ｔｈｅ ｓｈｏｒｔ ｔｅｒｍ ｄｕｅ ｔｏ ｂａｎｋｒｕｐｔｃｙ， ｉｎｓｏｌｖｅｎｔ， ｓｅｒｉｏｕｓ ｓｈｏｒｔａｇｅ
ｏｆ ｃａｓｈ ｆｌｏｗ， ｓｅｒｉｏｕｓ ｎａｔｕｒａｌ ｄｉｓａｓｔｅｒｓ ａｎｄ ｅｔｃ． ） ａｓ ｗｅｌｌ ａｓ ｏｔｈｅｒ ｅｖｉｄｅｎｃｅｓ ｏｆ ｏｃｃｕｒｒｉｎｇ ｌｏｓｓ，
ｔｈｅ Ｃｏｍｐａｎｙ ｃａｎ ｍａｋｅ ｆｕｌｌ ｐｒｏｖｉｓｉｏｎ ｆｏｒ ｔｈｅ ａｃｃｏｕｎｔｓ ｒｅｃｅｉｖａｂｌｅ．
（２） Ｔｈｅ ａｃｃｏｕｎｔｓ ｒｅｃｅｉｖａｂｌｅ ｍｅｅｔｉｎｇ ｔｈｅ ｆｏｌｌｏｗｉｎｇ ｃｒｉｔｅｒｉａ ａｒｅ ｒｅｃｏｇｎｉｚｅｄ ａｓ ｂａｄ ｄｅｂｔｓ：
Ｆｏｒ ａｃｃｏｕｎｔｓ ｒｅｃｅｉｖａｂｌｅ ｔｈａｔ ａｒｅ ｓｕｒｅｌｙ ｕｎｃｏｌｌｅｃｔｉｂｌｅ， ｓｕｃｈ ａｓ ｔｈｅｙ ｃａｎ ｂｅ ｗｒｉｔｔｅｎ ｏｆｆ ａｓ
ｂａｄ ｄｅｂｔｓ ａｆｔｅｒ ｔｈｅ ａｐｐｒｏｖａｌ ｏｆ ｔｈｅ ｇｅｎｅｒａｌ ｍｅｅｔｉｎｇ ｏｆ ｓｈａｒｅｈｏｌｄｅｒｓ ｏｒ ｔｈｅ ｂｏａｒｄ ｏｆ ｄｉｒｅｃｔｏｒｓ．
１１． Ｉｎｖｅｎｔｏｒｉｅｓ
（１） Ｉｎｖｅｎｔｏｒｉｅｓ ｉｎｃｌｕｄｅ： ｄｅｖｅｌｏｐｍｅｎｔ ｃｏｓｔ （ｃｏｎｓｔｒｕｃｔｉｎｇ ｄｅｖｅｌｏｐｍｅｎｔ ｐｒｏｄｕｃｔ）， ｄｅｖｅｌｏｐｍｅｎｔ
ｐｒｏｄｕｃｔ， ｆｉｎｉｓｈｅｄ ｇｏｏｄｓ， ｌｏｗ－ｖａｌｕｅ ｃｏｎｓｕｍａｂｌｅ ｓｕｐｐｌｉｅｓ ａｎｄ ｅｔｃ． Ａｌｌ ｉｎｖｅｎｔｏｒｉｅｓ ａｒｅ ｃａｌｃｕｌａｔｅｄ
ａｔ ａｃｔｕａｌ ｃｏｓｔ ｗｈｅｎ ａｃｑｕｉｒｅ． Ｔｈｅ ｉｓｓｕｅ ｏｆ ｉｎｖｅｎｔｏｒｉｅｓ ｉｓ ｃａｌｃｕｌａｔｅｄ ａｃｃｏｒｄｉｎｇ ｔｏ ｉｎｄｉｖｉｄｕａｌ
ｃｏｇｎｉｚａｎｃｅ ｍｅｔｈｏｄ． Ｔｈｅ ｌｏｗ–ｖａｌｕｅ ｃｏｎｓｕｍａｂｌｅ ｓｕｐｐｌｉｅｓ ａｒｅ ａｍｏｒｔｉｚｅｄ ａｔ ｏｎｅ ｔｉｍｅ． Ｉｎｖｅｎｔｏｒｉｅｓ ｓｔｏｃｋ
ｐｈｙｓｉｃａｌ ｃｏｕｎｔ ｓｙｓｔｅｍ： ｐｅｒｐｅｔｕａｌ ｉｎｖｅｎｔｏｒｙ ｍｅｔｈｏｄ
Ｍｅａｓｕｒｅｍｅｎｔ ｍｅｔｈｏｄ ｏｆ ｌａｎｄ ｕｓｅｄ ｆｏｒ ｄｅｖｅｌｏｐｍｅｎｔ： ｔｈｅ ｌａｎｄ ｕｓｅｄ ｆｏｒ ｄｅｖｅｌｏｐｍｅｎｔ ｉｓ ｉｎｃｌｕｄｅｄ
ｉｎ “Ｉｎｖｅｎｔｏｒｉｅｓ － ｄｅｖｅｌｏｐｍｅｎｔ ｃｏｓｔ”．
Ｐｕｂｌｉｃ ｆａｃｉｌｉｔｉｅｓ ｃｏｓｔｓ： ｐｕｂｌｉｃ ｆａｃｉｌｉｔｉｅｓ ｓｕｃｈ ａｓ ｓｃｈｏｏｌｓ， ａｓ ｗｅｌｌ ａｓ ｐｕｂｌｉｃ ｆａｃｉｌｉｔｉｅｓ ｆｅｅｓ
ａｃｑｕｉｒｅｄ ｂｙ ｇｏｖｅｒｎｍｅｎｔ ｄｅｐａｒｔｍｅｎｔｓ， ｔｈｅ ｃｏｓｔ ｉｓ ｉｎｃｌｕｄｅｄ ｉｎ ＂ｄｅｖｅｌｏｐｍｅｎｔ ｃｏｓｔｓ＂ ａｎｄ ｉｔｓ
ａｐｐｏｒｔｉｏｎｍｅｎｔ ａｎｄ ｄｅｔａｉｌｅｄ ｃａｌｃｕｌａｔｉｏｎ ａｒｅ ｉｎ ａｃｃｏｒｄａｎｃｅ ｗｉｔｈ ｃａｌｃｕｌａｔｉｏｎ ｏｂｊｅｃｔｓ ａｎｄ ｃｏｓｔ ｉｔｅｍｓ．
（２） Ｆｏｒ ｉｎｖｅｎｔｏｒｉｅｓ ａｔ ｂａｌａｎｃｅ ｓｈｅｅｔ ｄａｔｅ， ｔｈｅ ｅｖａｌｕａｔｉｏｎ ｃｒｉｔｅｒｉａ ｓｈｏｕｌｄ ｂａｓｅ ｏｎ ｔｈｅ ｌｏｗｅｒ
ｖａｌｕｅ ｂｅｔｗｅｅｎ ｃｏｓｔｓ ａｎｄ ｎｅｔ ｖａｌｕｅｓ ｔｈａｔ ｃａｎ ｂｅ ｃｏｎｖｅｒｔｅｄ ｉｎｔｏ ｃａｓｈ． Ｗｈｅｎ ｎｅｔ ｖａｌｕｅｓ ｔｈａｔ ｃａｎ ｂｅ
ｃｏｎｖｅｒｔｅｄ ｉｎｔｏ ｃａｓｈ ａｒｅ ｌｏｗｅｒ ｔｈａｎ ｃｏｓｔｓ， ｐｒｏｖｉｓｉｏｎ ｆｏｒ ｉｍｐａｉｒｍｅｎｔ ｌｏｓｓ ｏｆ ｉｎｖｅｎｔｏｒｉｅｓ ｓｈａｌｌ ｂｅ
ｍａｄｅ ａｎｄ ｒｅｃｏｒｄｅｄ ｉｎｔｏ ｃｕｒｒｅｎｔ ｐｒｏｆｉｔ ａｎｄ ｌｏｓｓ．
１２． Ｌｏｎｇ－ｔｅｒｍ ｅｑｕｉｔｙ ｉｎｖｅｓｔｍｅｎｔ
（１） Ｔｈｅ ｉｎｉｔｉａｌ ｃｏｓｔ ｏｆ ｔｈｅ ｌｏｎｇ－ｔｅｒｍ ｅｑｕｉｔｙ ｉｎｖｅｓｔｍｅｎｔ
Ｆｏｒ ｔｈｅ ｂｕｓｉｎｅｓｓ ｃｏｍｂｉｎａｔｉｏｎ ｕｎｄｅｒ ｔｈｅ ｓａｍｅ ｃｏｎｔｒｏｌ， ｉｔ ｓｈａｌｌ， ｏｎ ｔｈｅ ｄａｔｅ ｏｆ ｍｅｒｇｅｒ， ｒｅｇａｒｄ
ｔｈｅ ｓｈａｒｅ ｏｆ ｔｈｅ ｂｏｏｋ ｖａｌｕｅ ｏｆ ｔｈｅ ｏｗｎｅｒ＇ｓ ｅｑｕｉｔｙ ｏｆ ｔｈｅ ｍｅｒｇｅｄ ｅｎｔｅｒｐｒｉｓｅ ａｓ ｔｈｅ ｉｎｉｔｉａｌ ｃｏｓｔ
ｏｆ ｔｈｅ ｌｏｎｇ－ｔｅｒｍ ｅｑｕｉｔｙ ｉｎｖｅｓｔｍｅｎｔ． Ｆｏｒ ｔｈｅ ｂｕｓｉｎｅｓｓ ｃｏｍｂｉｎａｔｉｏｎ ｎｏｔ ｕｎｄｅｒ ｓａｍｅ ｃｏｎｔｒｏｌ， ｔｈｅ
ｉｎｉｔｉａｌ ｃｏｓｔ ｏｆ ｌｏｎｇ－ｔｅｒｍ ｅｑｕｉｔｙ ｉｎｖｅｓｔｍｅｎｔ ｉｓ ｆａｉｒ ｖａｌｕｅ ｏｆ ａｓｓｅｔｓ ｐａｉｄ， ｌｉａｂｉｌｉｔｉｅｓ ｕｎｄｅｒｔａｋｅｎ，
ｔｈｅ ｅｑｕｉｔｙ ｓｅｃｕｒｉｔｉｅｓ ｉｓｓｕｅｄ ｂｙ ｔｈｅ Ｃｏｍｐａｎｙ， ａｎｄ ｉｎｃｌｕｄｅｓ ａｌｌ ｄｉｒｅｃｔ ｅｘｐｅｎｓｅｓ ａｎｄ ｆｕｔｕｒｅ ｅｖｅｎｔｓ
ｔｈａｔ ｗｉｌｌ ｉｎｆｌｕｅｎｃｅ ｃｏｍｂｉｎａｔｉｏｎ ｃｏｓｔ．
Ｂｅｓｉｄｅｓ ｔｈｅ ｌｏｎｇ－ｔｅｒｍ ｅｑｕｉｔｙ ｉｎｖｅｓｔｍｅｎｔｓ ｆｏｒｍｅｄ ｂｙ ｔｈｅ ｂｕｓｉｎｅｓｓ ｃｏｍｂｉｎａｔｉｏｎ， ｔｈｅ ｉｎｉｔｉａｌ ｃｏｓｔ
ｏｆ ａ ｌｏｎｇ－ｔｅｒｍ ｅｑｕｉｔｙ ｉｎｖｅｓｔｍｅｎｔ ｏｂｔａｉｎｅｄ ｂｙ ｏｔｈｅｒ ｍｅａｎｓ ｓｈａｌｌ ｂｅ ａｓｃｅｒｔａｉｎｅｄ ｉｎ ａｃｃｏｒｄａｎｃｅ ｗｉｔｈ
ｔｈｅ ｐｒｏｖｉｓｉｏｎｓ ａｓ ｆｏｌｌｏｗｓ： Ｔｈｅ ｉｎｉｔｉａｌ ｃｏｓｔ ｏｆ ａ ｌｏｎｇ－ｔｅｒｍ ｅｑｕｉｔｙ ｉｎｖｅｓｔｍｅｎｔ ｏｂｔａｉｎｅｄ ｂｙ ｍａｋｉｎｇ
ｐａｙｍｅｎｔ ｉｎ ｃａｓｈ ｓｈａｌｌ ｂｅ ｔｈｅ ｐｕｒｃｈａｓｅ ｃｏｓｔ ｗｈｉｃｈ ｉｓ ａｃｔｕａｌｌｙ ｐａｉｄ； ｔｈｅ ｉｎｉｔｉａｌ ｃｏｓｔ ｏｆ ａ ｌｏｎｇ－ｔｅｒｍ
ｅｑｕｉｔｙ ｉｎｖｅｓｔｍｅｎｔ ｏｂｔａｉｎｅｄ ｏｎ ｔｈｅ ｂａｓｉｓ ｏｆ ｉｓｓｕｉｎｇ ｅｑｕｉｔｙ ｓｅｃｕｒｉｔｉｅｓ ｓｈａｌｌ ｂｅ ｔｈｅ ｆａｉｒ ｖａｌｕｅ ｏｆ
ｔｈｅ ｅｑｕｉｔｙ ｓｅｃｕｒｉｔｉｅｓ ｉｓｓｕｅｄ； ｔｈｅ ｉｎｉｔｉａｌ ｃｏｓｔ ｏｆ ａ ｌｏｎｇ－ｔｅｒｍ ｅｑｕｉｔｙ ｉｎｖｅｓｔｍｅｎｔ ｏｆ ａｎ ｉｎｖｅｓｔｏｒ
ｓｈａｌｌ ｂｅ ｔｈｅ ｖａｌｕｅ ｓｔｉｐｕｌａｔｅｄ ｉｎ ｔｈｅ ｉｎｖｅｓｔｍｅｎｔ ｃｏｎｔｒａｃｔ ｏｒ ａｇｒｅｅｍｅｎｔ．
（２） Ｓｕｂｓｅｑｕｅｎｔ ｍｅａｓｕｒｅｍｅｎｔ
Ｔｈｅ Ｃｏｍｐａｎｙ ｕｓｅｓ ｃｏｓｔ ｍｅｔｈｏｄ ｆｏｒ ｔｈｅ ｆｏｌｌｏｗｉｎｇ ｃｏｎｄｉｔｉｏｎｓ： ａ ｌｏｎｇ－ｔｅｒｍ ｅｑｕｉｔｙ ｉｎｖｅｓｔｍｅｎｔ ｗｈｅｒｅ
ｔｈｅ ｉｎｖｅｓｔｉｎｇ ｅｎｔｅｒｐｒｉｓｅ ｃａｎ ｅｘｅｒｃｉｓｅ ｃｏｎｔｒｏｌ ｏｖｅｒ ｔｈｅ ｉｎｖｅｓｔｅｅ， ｏｒ ｔｈｅ ｉｎｖｅｓｔｉｎｇ ｅｎｔｅｒｐｒｉｓｅ ｄｏｅｓ
ｎｏｔ ｈａｖｅ ｊｏｉｎｔ ｃｏｎｔｒｏｌ ｏｒ ｓｉｇｎｉｆｉｃａｎｔ ｉｎｆｌｕｅｎｃｅ ｏｖｅｒ ｔｈｅ ｉｎｖｅｓｔｅｅ， ｔｈｅ ｉｎｖｅｓｔｍｅｎｔ ｉｓ ｎｏｔ ｑｕｏｔｅｄ
ｉｎ ａｎ ａｃｔｉｖｅ ｍａｒｋｅｔ ａｎｄ ｉｔｓ ｆａｉｒ ｖａｌｕｅ ｃａｎ’ｔ ｂｅ ｒｅｌｉａｂｌｙ ｍｅａｓｕｒｅｄ． Ｆｏｒ ａ ｌｏｎｇ－ｔｅｒｍ ｅｑｕｉｔｙ
ｉｎｖｅｓｔｍｅｎｔ ｗｈｅｒｅ ｔｈｅ ｉｎｖｅｓｔｉｎｇ ｅｎｔｅｒｐｒｉｓｅ ｃａｎ ｅｘｅｒｃｉｓｅ ｃｏｎｔｒｏｌ ｏｖｅｒ ｔｈｅ ｉｎｖｅｓｔｅｅ， ｔｈｅ ｉｎｖｅｓｔｉｎｇ
ｅｎｔｅｒｐｒｉｓｅ ｓｈａｌｌ ｍａｋｅ ａｎ ａｄｊｕｓｔｍｅｎｔ ｂｙ ｅｍｐｌｏｙｉｎｇ ｔｈｅ ｅｑｕｉｔｙ ｍｅｔｈｏｄ ｗｈｅｎ ｉｔ ｗｏｒｋｓ ｏｕｔ ｃｏｎｓｏｌｉｄａｔｅｄ
ｆｉｎａｎｃｉａｌ ｓｔａｔｅｍｅｎｔｓ． Ｗｈｅｎ ａｄｏｐｔｉｎｇ ｃｏｓｔ ｍｅｔｈｏｄ， ｔｈｅ ｄｉｖｉｄｅｎｄｓ ｏｒ ｐｒｏｆｉｔｓ ｄｅｃｌａｒｅｄ ｔｏ ｄｉｓｔｒｉｂｕｔｅ
ｂｙ ｔｈｅ ｉｎｖｅｓｔｅｄ ｅｎｔｉｔｙ ｓｈａｌｌ ｂｅ ｒｅｃｏｇｎｉｚｅｄ ａｓ ｔｈｅ ｃｕｒｒｅｎｔ ｉｎｖｅｓｔｍｅｎｔ ｉｎｃｏｍｅ． Ｔｈｅ ｉｎｖｅｓｔｍｅｎｔ ｉｎｃｏｍｅ
ｒｅｃｏｇｎｉｚｅｄ ｂｙ ｔｈｅ ｉｎｖｅｓｔｉｎｇ ｅｎｔｅｒｐｒｉｓｅ ｓｈａｌｌ ｂｅ ｌｉｍｉｔｅｄ ｔｏ ｔｈｅ ａｍｏｕｎｔ ｒｅｃｅｉｖｅｄ ｆｒｏｍ ｔｈｅ
ａｃｃｕｍｕｌａｔｉｖｅ ｎｅｔ ｐｒｏｆｉｔｓ ｔｈａｔ ａｒｉｓｅ ａｆｔｅｒ ｔｈｅ ｉｎｖｅｓｔｅｄ ｅｎｔｉｔｙ ｈａｓ ａｃｃｅｐｔｅｄ ｔｈｅ ｉｎｖｅｓｔｍｅｎｔ． Ｗｈｅｒｅ
ｔｈｅ ａｍｏｕｎｔ ｏｆ ｐｒｏｆｉｔｓ ｏｒ ｃａｓｈ ｄｉｖｉｄｅｎｄｓ ｏｂｔａｉｎｅｄ ｂｙ ｔｈｅ ｉｎｖｅｓｔｉｎｇ ｅｎｔｉｔｙ ｅｘｃｅｅｄｓ ｔｈｅ ａｆｏｒｅｓａｉｄ
ａｍｏｕｎｔ， ｉｔ ｓｈａｌｌ ｂｅ ｒｅｇａｒｄｅｄ ａｓ ｒｅｃｏｖｅｒｙ ｏｆ ｉｎｉｔｉａｌ ｉｎｖｅｓｔｍｅｎｔ ｃｏｓｔ．
Ａ ｌｏｎｇ－ｔｅｒｍ ｅｑｕｉｔｙ ｉｎｖｅｓｔｍｅｎｔ ｏｆ ｔｈｅ ｉｎｖｅｓｔｉｎｇ ｅｎｔｅｒｐｒｉｓｅ ｔｈａｔ ｄｏｅｓ ｊｏｉｎｔ ｃｏｎｔｒｏｌ ｏｒ
ｓｉｇｎｉｆｉｃａｎｔ ｉｎｆｌｕｅｎｃｅｓ ｏｖｅｒ ｔｈｅ ｉｎｖｅｓｔｅｄ ｅｎｔｉｔｙ ｓｈａｌｌ ｂｅ ｍｅａｓｕｒｅｄ ｂｙ ｅｍｐｌｏｙｉｎｇ ｔｈｅ ｅｑｕｉｔｙ ｍｅｔｈｏｄ．
Ｉｆ ｔｈｅ ｉｎｉｔｉａｌ ｃｏｓｔ ｏｆ ａ ｌｏｎｇ－ｔｅｒｍ ｅｑｕｉｔｙ ｉｎｖｅｓｔｍｅｎｔ ｉｓ ｍｏｒｅ ｔｈａｎ ｔｈｅ ｉｎｖｅｓｔｉｎｇ ｅｎｔｅｒｐｒｉｓｅ＇
ａｔｔｒｉｂｕｔａｂｌｅ ｓｈａｒｅ ｏｆ ｔｈｅ ｆａｉｒ ｖａｌｕｅ ｏｆ ｔｈｅ ｉｎｖｅｓｔｅｄ ｅｎｔｉｔｙ＇ｓ ｉｄｅｎｔｉｆｉａｂｌｅ ｎｅｔ ａｓｓｅｔｓ ｆｏｒ ｔｈｅ
ｉｎｖｅｓｔｍｅｎｔ， ｔｈｅ ｉｎｉｔｉａｌ ｃｏｓｔ ｏｆ ｔｈｅ ｌｏｎｇ－ｔｅｒｍ ｅｑｕｉｔｙ ｉｎｖｅｓｔｍｅｎｔ ｍａｙ ｎｏｔ ｂｅ ａｄｊｕｓｔｅｄ． Ｉｆ ｔｈｅ ｉｎｉｔｉａｌ
ｃｏｓｔ ｏｆ ａ ｌｏｎｇ－ｔｅｒｍ ｅｑｕｉｔｙ ｉｎｖｅｓｔｍｅｎｔ ｉｓ ｌｅｓｓ ｔｈａｎ ｔｈｅ ｉｎｖｅｓｔｉｎｇ ｅｎｔｅｒｐｒｉｓｅ＇ ａｔｔｒｉｂｕｔａｂｌｅ ｓｈａｒｅ
ｏｆ ｔｈｅ ｆａｉｒ ｖａｌｕｅ ｏｆ ｔｈｅ ｉｎｖｅｓｔｅｄ ｅｎｔｉｔｙ＇ｓ ｉｄｅｎｔｉｆｉａｂｌｅ ｎｅｔ ａｓｓｅｔｓ ｆｏｒ ｔｈｅ ｉｎｖｅｓｔｍｅｎｔ， ｔｈｅ
ｄｉｆｆｅｒｅｎｃｅ ｓｈａｌｌ ｂｅ ｉｎｃｌｕｄｅｄ ｉｎ ｔｈｅ ｃｕｒｒｅｎｔ ｐｒｏｆｉｔｓ ａｎｄ ｌｏｓｓｅｓ ａｎｄ ｔｈｅ ｃｏｓｔ ｏｆ ｔｈｅ ｌｏｎｇ－ｔｅｒｍ ｅｑｕｉｔｙ
ｉｎｖｅｓｔｍｅｎｔ ｓｈａｌｌ ｂｅ ａｄｊｕｓｔｅｄ ｓｉｍｕｌｔａｎｅｏｕｓｌｙ． Ａｆｔｅｒ ａｎ ｉｎｖｅｓｔｉｎｇ ｅｎｔｅｒｐｒｉｓｅ ｏｂｔａｉｎｓ ａ ｌｏｎｇ－ｔｅｒｍ
ｅｑｕｉｔｙ ｉｎｖｅｓｔｍｅｎｔ， ｉｔ ｓｈａｌｌ， ｉｎ ａｃｃｏｒｄａｎｃｅ ｗｉｔｈ ｔｈｅ ａｔｔｒｉｂｕｔａｂｌｅ ｓｈａｒｅ ｏｆ ｔｈｅ ｎｅｔ ｐｒｏｆｉｔｓ ｏｒ ｌｏｓｓｅｓ
ｏｆ ｔｈｅ ｉｎｖｅｓｔｅｄ ｅｎｔｉｔｙ， ｒｅｃｏｇｎｉｚｅ ｔｈｅ ｉｎｖｅｓｔｍｅｎｔ ｐｒｏｆｉｔｓ ｏｒ ｌｏｓｓｅｓ ａｎｄ ａｄｊｕｓｔ ｔｈｅ ｂｏｏｋ ｖａｌｕｅ ｏｆ
ｔｈｅ ｌｏｎｇ－ｔｅｒｍ ｅｑｕｉｔｙ ｉｎｖｅｓｔｍｅｎｔ． Ｗｈｅｒｅ ａｎｙ ｃｈａｎｇｅ ｉｓ ｍａｄｅ ｔｏ ｔｈｅ ｏｗｎｅｒ＇ｓ ｅｑｕｉｔｙ ｏｔｈｅｒ ｔｈａｎ ｔｈｅ
ｎｅｔ ｐｒｏｆｉｔｓ ａｎｄ ｌｏｓｓｅｓ ｏｆ ｔｈｅ ｉｎｖｅｓｔｅｄ ｅｎｔｉｔｙ， ｔｈｅ ｂｏｏｋ ｖａｌｕｅ ｏｆ ｔｈｅ ｌｏｎｇ－ｔｅｒｍ ｅｑｕｉｔｙ ｉｎｖｅｓｔｍｅｎｔ
ｓｈａｌｌ ｂｅ ａｄｊｕｓｔｅｄ ａｎｄ ｂｅ ｉｎｃｌｕｄｅｄ ｉｎ ｔｈｅ ｏｗｎｅｒ＇ｓ ｅｑｕｉｔｙ．
Ｔｈｅ Ｃｏｍｐａｎｙ ｓｈｏｕｌｄ ｈａｖｅ ｉｍｐａｉｒｍｅｎｔ ｔｅｓｔ ｆｏｒ ａｎｙ ｌｏｎｇ－ｔｅｒｍ ｅｑｕｉｔｙ ｉｎｖｅｓｔｍｅｎｔ ｏｎ ｖｅｒｙ ｂａｌａｎｃｅ
ｓｈｅｅｔ ｄａｔｅ． Ｗｈｅｎ ｔｈｅ ｅｓｔｉｍａｔｅｄ ｖａｌｕｅ ｉｎ ｕｓｅ ｉｓ ｌｅｓｓ ｔｈａｎ ｉｔｓ ｂｏｏｋ ｖａｌｕｅ， ｉｔ ｗｉｌｌ ｂｅ ｔｒｅａｔｅｄ ａｓ
ｉｍｐａｉｒｍｅｎｔ ｌｏｓｓ． Ａｎｄ ｔｈｉｓ ｌｏｓｓ ｓｈｏｕｌｄ ｂｅ ｔｒａｎｓｆｅｒｒｅｄ ｉｎｔｏ ｃｕｒｒｅｎｔ ｐｒｏｆｉｔ ａｎｄ ｌｏｓｓ ａｃｃｏｕｎｔ；
ｍｅａｎｗｈｉｌｅ， ｔｈｅ ｃｏｍｐａｎｙ ｓｈｏｕｌｄ ｓｅｔ ｕｐ ｐｒｏｖｉｓｉｏｎ ｆｏｒ ｔｈｅ ｌｏｎｇ－ｔｅｒｍ ｅｑｕｉｔｙ ｉｎｖｅｓｔｍｅｎｔ ｉｍｐａｉｒｍｅｎｔ
ｌｏｓｓ． Ｔｏ ａｎｙ ｌｏｎｇ－ｔｅｒｍ ｅｑｕｉｔｙ ｉｎｖｅｓｔｍｅｎｔｓ， ｗｈｉｃｈ ａｒｅ ｍｅａｓｕｒｅｄ ｂｙ ｃｏｓｔ ｍｅｔｈｏｄ， ｔｈｅｒｅ ｉｓ ｎｏ ｐｒｉｃｅ
ｏｒ ｉｔｓ ｆａｉｒ ｖａｌｕｅ ｃａｎ ｎｏｔ ｂｅ ｍｅａｓｕｒｅｄ ｒｅｌｉａｂｌｙ， ｔｈｅ ｉｍｐａｉｒｍｅｎｔ ｌｏｓｓ ｏｆ ｔｈｅｓｅ ｉｎｖｅｓｔｍｅｎｔｓ ｓｈｏｕｌｄ
ｂｅ ｔｈｅ ｄｉｆｆｅｒｅｎｃｅ ｂｅｔｗｅｅｎ ｔｈｅ ｂｏｏｋ ｖａｌｕｅ ａｎｄ ｔｈｅ ｐｒｅｓｅｎｔ ｖａｌｕｅ ｏｆ ｔｈｅ ｆｕｔｕｒｅ ｃａｓｈ ｆｌｏｗ ｃａｌｃｕｌａｔｅｄ
ｂｙ ｕｓｉｎｇ ｃｕｒｒｅｎｔ ｍａｒｋｅｔ ｒａｔｅ ｏｆ ｓｉｍｉｌａｒ ｆｉｎａｎｃｉａｌ ａｓｓｅｔ．
Ｆｏｒ ｏｔｈｅｒ ｌｏｎｇ－ｔｅｒｍ ｅｑｕｉｔｙ ｉｎｖｅｓｔｍｅｎｔ， ｗｈｅｒｅ ａｎｙ ｅｖｉｄｅｎｃｅ ｓｈｏｗｓ ｔｈａｔ ｔｈｅｒｅ ｉｓ ｐｏｓｓｉｂｌｅ ａｓｓｅｔｓ
ｉｍｐａｉｒｍｅｎｔ， ｔｈｅ ｉｍｐａｉｒｍｅｎｔ ｐｒｏｖｉｓｉｏｎ ｉｓ ｍａｄｅ ａｃｃｏｒｄｉｎｇ ｔｏ ｒｅｌｅｖａｎｔ ｒｅｇｕｌａｔｉｏｎｓ ａｎｄ ｍｅｔｈｏｄｓ．
（３） Ｒｅｃｏｇｎｉｚａｔｉｏｎ ｂａｓｉｓ ｏｆ ｊｏｉｎｔ ｃｏｎｔｒｏｌ ａｎｄ ｓｉｇｎｉｆｉｃａｎｔ ｉｎｆｌｕｅｎｃｅｓ
Ｔｈｅ ｔｅｒｍ ＂ｊｏｉｎｔ ｃｏｎｔｒｏｌ＂ ｒｅｆｅｒｓ ｔｏ ｔｈｅ ｃｏｎｔｒｏｌ ｏｖｅｒ ａｎ ｅｃｏｎｏｍｉｃ ａｃｔｉｖｉｔｙ ｉｎ ａｃｃｏｒｄａｎｃｅ ｗｉｔｈ
ｔｈｅ ｃｏｎｔｒａｃｔｓ ａｎｄ ａｇｒｅｅｍｅｎｔｓ， ｗｈｉｃｈ ｄｏｅｓ ｎｏｔ ｅｘｉｓｔ ｕｎｌｅｓｓ ｔｈｅ ｉｎｖｅｓｔｉｎｇ ｐａｒｔｉｅｓ ｏｆ ｔｈｅ ｅｃｏｎｏｍｉｃ
ａｃｔｉｖｉｔｙ ｗｉｔｈ ｏｎｅ ａｎ ａｓｓｅｎｔ ｏｎ ｓｈａｒｉｎｇ ｔｈｅ ｃｏｎｔｒｏｌ ｐｏｗｅｒ ｏｖｅｒ ｔｈｅ ｒｅｌｅｖａｎｔ ｉｍｐｏｒｔａｎｔ ｆｉｎａｎｃｉａｌ
ａｎｄ ｏｐｅｒａｔｉｎｇ ｄｅｃｉｓｉｏｎｓ． Ｔｈｅ ｔｅｒｍ ＂ｓｉｇｎｉｆｉｃａｎｔ ｉｎｆｌｕｅｎｃｅｓ＂ ｒｅｆｅｒｓ ｔｏ ｔｈｅ ｐｏｗｅｒ ｔｏ ｐａｒｔｉｃｉｐａｔｅ
ｉｎ ｍａｋｉｎｇ ｄｅｃｉｓｉｏｎｓ ｏｎ ｔｈｅ ｆｉｎａｎｃｉａｌ ａｎｄ ｏｐｅｒａｔｉｎｇ ｐｏｌｉｃｉｅｓ ｏｆ ａｎ ｅｎｔｅｒｐｒｉｓｅ， ｂｕｔ ｎｏｔ ｔｏ ｃｏｎｔｒｏｌ
ｏｒ ｄｏ ｊｏｉｎｔ ｃｏｎｔｒｏｌ ｔｏｇｅｔｈｅｒ ｗｉｔｈ ｏｔｈｅｒ ｐａｒｔｉｅｓ ｏｖｅｒ ｔｈｅ ｆｏｒｍｕｌａｔｉｏｎ ｏｆ ｔｈｅｓｅ ｐｏｌｉｃｉｅｓ．
（４） Ｄｉｓｐｏｓａｌ ｏｆ ｌｏｎｇ－ｔｅｒｍ ｅｑｕｉｔｙ ｉｎｖｅｓｔｍｅｎｔ
Ｗｈｅｎ ｄｉｓｐｏｓｉｎｇ ｏｆ ａ ｌｏｎｇ－ｔｅｒｍ ｅｑｕｉｔｙ ｉｎｖｅｓｔｍｅｎｔ， ｔｈｅ ｄｉｆｆｅｒｅｎｃｅ ｂｅｔｗｅｅｎ ｉｔｓ ｂｏｏｋ ｖａｌｕｅ ａｎｄ
ｔｈｅ ａｃｔｕａｌ ｐｕｒｃｈａｓｅ ｐｒｉｃｅ ｓｈａｌｌ ｂｅ ｉｎｃｌｕｄｅｄ ｉｎ ｔｈｅ ｃｕｒｒｅｎｔ ｐｒｏｆｉｔｓ ａｎｄ ｌｏｓｓｅｓ． Ｉｆ ａｎｙ ｃｈａｎｇｅ ｏｔｈｅｒ
ｔｈａｎ ｔｈｅ ｎｅｔ ｐｒｏｆｉｔｓ ａｎｄ ｌｏｓｓｅｓ ｏｆ ｔｈｅ ｉｎｖｅｓｔｅｄ ｅｎｔｉｔｙ ｏｃｃｕｒｓ ａｎｄ ｉｓ ｉｎｃｌｕｄｅｄ ｉｎ ｔｈｅ ｏｗｎｅｒ＇ｓ ｅｑｕｉｔｙ，
ｔｈｅ ｐｏｒｔｉｏｎ ｐｒｅｖｉｏｕｓｌｙ ｉｎｃｌｕｄｅｄ ｉｎ ｔｈｅ ｏｗｎｅｒ＇ｓ ｅｑｕｉｔｙ ｓｈａｌｌ， ｗｈｅｎ ｄｉｓｐｏｓｉｎｇ ｏｆ ａ ｌｏｎｇ－ｔｅｒｍ ｅｑｕｉｔｙ
ｉｎｖｅｓｔｍｅｎｔ ｍｅａｓｕｒｅｄ ｂｙ ｅｍｐｌｏｙｉｎｇ ｔｈｅ ｅｑｕｉｔｙ ｍｅｔｈｏｄ， ｂｅ ｔｒａｎｓｆｅｒｒｅｄ ｔｏ ｔｈｅ ｃｕｒｒｅｎｔ ｐｒｏｆｉｔｓ ａｎｄ
ｌｏｓｓｅｓ ａｃｃｏｒｄｉｎｇ ｔｏ ａ ｃｅｒｔａｉｎ ｐｒｏｐｏｒｔｉｏｎ．
１３． Ｉｎｖｅｓｔｍｅｎｔ ｐｒｏｐｅｒｔｙ
Ｔｈｅ ｔｅｒｍ ＂ｉｎｖｅｓｔｍｅｎｔ ｐｒｏｐｅｒｔｙ＂ ｒｅｆｅｒｓ ｔｏ ｔｈｅ ｒｅａｌ ｅｓｔａｔｅｓ ｈｅｌｄ ｆｏｒ ｇｅｎｅｒａｔｉｎｇ ｒｅｎｔ ａｎｄ／ｏｒ
ｃａｐｉｔａｌ ａｐｐｒｅｃｉａｔｉｏｎ． Ｉｎｃｌｕｄｉｎｇ： ｔｈｅ ｒｉｇｈｔ ｔｏ ｕｓｅ ａｎｙ ｌａｎｄ ｗｈｉｃｈ ｈａｓ ａｌｒｅａｄｙ ｂｅｅｎ ｒｅｎｔｅｄ； ｔｈｅ
ｒｉｇｈｔ ｔｏ ｕｓｅ ａｎｙ ｌａｎｄ ｗｈｉｃｈ ｉｓ ｈｅｌｄ ａｎｄ ｐｒｅｐａｒｅｄ ｆｏｒ ｔｒａｎｓｆｅｒ ａｆｔｅｒ ａｐｐｒｅｃｉａｔｉｏｎ； ａｎｄ ｔｈｅ ｒｉｇｈｔ
ｔｏ ｕｓｅ ａｎｙ ｂｕｉｌｄｉｎｇ ｗｈｉｃｈ ｈａｓ ａｌｒｅａｄｙ ｂｅｅｎ ｒｅｎｔｅｄ． Ｔｈｅ ｉｎｉｔｉａｌ ｍｅａｓｕｒｅｍｅｎｔ ｏｆ ｔｈｅ ｉｎｖｅｓｔｍｅｎｔ
ｐｒｏｐｅｒｔｙ ｓｈａｌｌ ｂｅ ｍａｄｅ ａｔ ｉｔｓ ｃｏｓｔ． Ａｎ ｅｎｔｅｒｐｒｉｓｅ ｓｈａｌｌ ｍａｋｅ ａ ｆｏｌｌｏｗ－ｕｐ ｍｅａｓｕｒｅｍｅｎｔ ｔｏ ｔｈｅ
ｉｎｖｅｓｔｍｅｎｔ ｒｅａｌ ｅｓｔａｔｅ ｔｈｒｏｕｇｈ ｔｈｅ ｃｏｓｔ ｐａｔｔｅｒｎ． Ｆｏｒ ｂｕｉｌｄｉｎｇｓ ｗｈｉｃｈ ｈａｖｅ ａｌｒｅａｄｙ ｂｅｅｎ ｒｅｎｔｅｄ，
ｔｈｅ Ｃｏｍｐａｎｙ ｃａｌｃｕｌａｔｅｓ ｄｅｐｒｅｃｉａｔｉｏｎ ａｓ ｔｈｅ ｓａｍｅ ｍｅｔｈｏｄ ｏｆ ｆｉｘｅｄ ａｓｓｅｔｓ． Ｆｏｒ ｔｈｅ ｒｉｇｈｔ ｔｏ ｕｓｅ ａｎｙ
ｌａｎｄ， ｉｔ ｉｓ ａｍｏｒｔｉｚｅｄ ｗｉｔｈ ｓｔｒａｉｇｈｔ－ｌｉｎｅ ｍｅｔｈｏｄ ａｃｃｏｒｄｉｎｇ ｔｏ ｔｈｅ ｓｅｒｖｉｃｅａｂｌｅ ｌｉｆｅ． Ａｔ ｔｈｅ ｂａｌａｎｃｅ
ｓｈｅｅｔ ｄａｔｅ， ｗｈｅｒｅ ａｎｙ ｅｖｉｄｅｎｃｅ ｓｈｏｗｓ ｔｈａｔ ｔｈｅｒｅ ｉｓ ｐｏｓｓｉｂｌｅ ａｓｓｅｔｓ ｉｍｐａｉｒｍｅｎｔ， ｔｈｅ ｉｍｐａｉｒｍｅｎｔ
ｐｒｏｖｉｓｉｏｎ ｉｓ ｍａｄｅ．
１４． Ｆｉｘｅｄ ａｓｓｅｔｓ
（１） Ｒｅｃｏｇｎｉｔｉｏｎ ｏｆ ｆｉｘｅｄ ａｓｓｅｔｓ
Ｆｉｘｅｄ ａｓｓｅｔｓ ａｒｅ ｔａｎｇｉｂｌｅ ａｓｓｅｔｓ ｔｈａｔ ａｒｅ ｈｅｌｄ ｆｏｒ ｕｓｅ ｉｎ ｐｒｏｄｕｃｔｉｏｎ ｏｒ ｓｕｐｐｌｙ ｏｆ ｇｏｏｄｓ ｏｒ
ｓｅｒｖｉｃｅｓ， ｆｏｒ ｒｅｎｔａｌ ｔｏ ｏｔｈｅｒｓ， ｏｒ ｆｏｒ ａｄｍｉｎｉｓｔｒａｔｉｖｅ ｐｕｒｐｏｓｅ， ａｎｄ ｈａｖｅ ｕｓｅｆｕｌ ｌｉｖｅｓ ｍｏｒｅ ｔｈａｎ
ｏｎｅ ａｃｃｏｕｎｔｉｎｇ ｙｅａｒ．
Ｔｈｅ ｅｘｐｅｃｔｅｄ ｄｉｓｃａｒｄ ｅｘｐｅｎｓｅｓ ｓｈｏｕｌｄ ｂｅ ｔａｋｅｎ ｉｎｔｏ ｃｏｎｓｉｄｅｒａｔｉｏｎ ｉｎ ｔｈｅ ａｓｃｅｒｔａｉｎｍｅｎｔ ｏｆ ｔｈｅ
ｃｏｓｔ ｏｆ ａ ｆｉｘｅｄ ａｓｓｅｔ．
（２） Ｔｈｅ ｃａｔｅｇｏｒｙ ａｎｄ ｄｅｐｒｅｃｉａｔｉｏｎ ｍｅｔｈｏｄ ｏｆ ｆｉｘｅｄ ａｓｓｅｔｓ
Ｆｉｘｅｄ ａｓｓｅｔｓ ｉｎｃｌｕｄｅ ｂｕｉｌｄｉｎｇｓ ａｎｄ ｓｔｒｕｃｔｕｒｅｓ， ｖｅｈｉｃｌｅｓ， ｇｅｎｅｒａｌ ｅｑｕｉｐｍｅｎｔｓ， ｓｐｅｃｉｆｉｃ
ｅｑｕｉｐｍｅｎｔｓ ａｎｄ ｏｔｈｅｒ ｅｑｕｉｐｍｅｎｔｓ． Ｓｔｒａｉｇｈｔ－ｌｉｎｅ ｍｅｔｈｏｄ ｉｓ ｉｎ ｕｓｅｄ ｔｏ ｃａｌｃｕｌａｔｅ ｔｈｅ ｄｅｐｒｅｃｉａｔｉｏｎ
ｏｆ ｆｉｘｅｄ ａｓｓｅｔｓ． Ｔｈｅ ｅｓｔｉｍａｔｅｄ ｕｓｅｆｕｌ ｌｉｖｅｓ， ｅｘｐｅｃｔｅｄ ｒｅｓｉｄｕａｌ ｖａｌｕｅ ａｎｄ ａｎｎｕａｌ ｄｅｐｒｅｃｉａｔｉｏｎ ｒａｔｅ
ｏｆ ｖａｒｉｏｕｓ ｔｙｐｅｓ ｆｉｘｅｄ ａｓｓｅｔｓ ａｒｅ ｌｉｓｔｅｄ ａｓ ｆｏｌｌｏｗｓ：
Estimated useful lives Expected residual value Annual depreciation rate
Category (years) (%) (%)
Buildings and structures 25 5 3.8
Vehicles 5 5 19.0
General equipments 10 5 9.5
Specific equipments 5 5 19.0
Other equipments 5 5 19.0
Ｄｅｐｒｅｃｉａｔｉｏｎ ｓｈａｌｌ ｂｅ ｍａｄｅ ｆｏｒ ｔｈｅ ｆｉｘｅｄ ａｓｓｅｔｓ ｏｎ ａ ｍｏｎｔｈｌｙ ｂａｓｉｓ． Ｆｉｘｅｄ ａｓｓｅｔｓ ｉｎｃｒｅａｓｅｄ
ｔｈｉｓ ｍｏｎｔｈ ｓｈａｌｌ ｍａｋｅ ｄｅｐｒｅｃｉａｔｉｏｎ ｆｒｏｍ ｎｅｘｔ ｍｏｎｔｈ； ｆｉｘｅｄ ａｓｓｅｔｓ ｄｅｃｒｅａｓｅｄ ｔｈｉｓ ｍｏｎｔｈ ｓｈａｌｌ ｓｔｏｐ
ｍａｋｉｎｇ ｄｅｐｒｅｃｉａｔｉｏｎ ｆｒｏｍ ｎｅｘｔ ｍｏｎｔｈ．
Ｔｈｅ ｃｏｍｐａｎｙ ｓｈａｌｌ， ａｔ ｌｅａｓｔ ａｔ ｔｈｅ ｅｎｄ ｏｆ ｅａｃｈ ｙｅａｒ， ｈａｖｅ ａ ｃｈｅｃｋ ｏｎ ｔｈｅ ｕｓｅｆｕｌ ｌｉｆｅ， ｅｘｐｅｃｔｅｄ
ｒｅｓｉｄｕａｌ ｖａｌｕｅ ａｎｄ ｔｈｅ ｄｅｐｒｅｃｉａｔｉｏｎ ｍｅｔｈｏｄ ｏｆ ｔｈｅ ｆｉｘｅｄ ａｓｓｅｔｓ， ａｎｄ ａｄｊｕｓｔ ｔｈｅｍ ｗｈｅｎ ｎｅｃｅｓｓａｒｙ．
Ａｔ ｔｈｅ ｂａｌａｎｃｅ ｓｈｅｅｔ ｄａｔｅ， ｗｈｅｒｅ ａｎｙ ｅｖｉｄｅｎｃｅ ｓｈｏｗｓ ｔｈａｔ ｔｈｅｒｅ ｉｓ ｐｏｓｓｉｂｌｅ ａｓｓｅｔｓ ｉｍｐａｉｒｍｅｎｔ，
ｔｈｅ ｉｍｐａｉｒｍｅｎｔ ｐｒｏｖｉｓｉｏｎ ｉｓ ｍａｄｅ ａｃｃｏｒｄｉｎｇ ｔｏ Ｎｏｔｅｓ ＩＩ． １７．
（３） Ｉｄｌｅ ｆｉｘｅｄ ａｓｓｅｔｓ
Ｆｉｘｅｄ ａｓｓｅｔｓ ｔｈａｔ ａｒｅ ｎｏｔ ｕｓｅｄ ｆｏｒ ｓｉｘ ｍｏｎｔｈｓ ｃｏｎｔｉｎｕｏｕｓｌｙ ｄｕｅ ｔｏ ｕｎｄｅｒｅｍｐｌｏｙｍｅｎｔ ｏｒ ｎａｔｕｒａｌ
ｄｉｓａｓｔｅｒｓ ａｒｅ ｉｄｅｎｔｉｆｉｅｄ ａｓ ｉｄｌｅ ｆｉｘｅｄ ａｓｓｅｔｓ （ｅｘｃｅｐｔ ｆｏｒ ｓｅａｓｏｎａｌ ｂｒｅａｋ）．
Ｔｈｅ ｄｅｐｒｅｃｉａｔｉｏｎ ｍｅｔｈｏｄ ｏｆ ｉｄｌｅ ｆｉｘｅｄ ａｓｓｅｔｓ ｉｓ ｃｏｎｓｉｓｔｅｎｔ ｗｉｔｈ ｏｔｈｅｒ ｆｉｘｅｄ ａｓｓｅｔｓ．
（４） Ｆｉｘｅｄ ａｓｓｅｔｓ ｕｎｄｅｒ ｆｉｎａｎｃｉｎｇ ｌｅａｓｅ
Ｗｈｅｎ ｏｎｅ ｏｒ ｍｏｒｅ ｏｆ ｔｈｅ ｆｏｌｌｏｗｉｎｇ ｃｒｉｔｅｒｉａ ａｒｅ ｍｅｔ， ａ ｌｅａｓｅ ｓｈａｌｌ ｂｅ ｃｌａｓｓｉｆｉｅｄ ａｓ ａ ｆｉｎａｎｃｉａｌ
ｌｅａｓｅ：
ａ． ｔｈｅ ｌｅａｓｅ ｔｒａｎｓｆｅｒｓ ｏｗｎｅｒｓｈｉｐ ｏｆ ｔｈｅ ｌｅａｓｅｄ ａｓｓｅｔ ｔｏ ｔｈｅ ｌｅｓｓｅｅ ｂｙ ｔｈｅ ｅｎｄ ｏｆ ｔｈｅ ｌｅａｓｅ
ｔｅｒｍ；
ｂ． ｔｈｅ ｌｅｓｓｅｅ ｈａｓ ｔｈｅ ｏｐｔｉｏｎ ｔｏ ｐｕｒｃｈａｓｅ ｔｈｅ ｌｅａｓｅｄ ａｓｓｅｔ ａｔ ａ ｐｒｉｃｅ ｔｈａｔ ｉｓ ｅｘｐｅｃｔｅｄ ｔｏ ｂｅ
ｓｕｆｆｉｃｉｅｎｔｌｙ ｌｏｗｅｒ ｔｈａｎ ｔｈｅ ｆａｉｒ ｖａｌｕｅ ａｔ ｔｈｅ ｄａｔｅ ｔｈｅ ｏｐｔｉｏｎ ｂｅｃｏｍｅｓ ｅｘｅｒｃｉｓａｂｌｅ ｓｕｃｈ ｔｈａｔ， ａｔ
ｔｈｅ ｉｎｃｅｐｔｉｏｎ ｏｆ ｔｈｅ ｌｅａｓｅ， ｉｔ ｉｓ ｒｅａｓｏｎａｂｌｙ ｃｅｒｔａｉｎ ｔｈａｔ ｔｈｅ ｏｐｔｉｏｎ ｗｉｌｌ ｂｅ ｅｘｅｒｃｉｓｅｄ ｂｙ ｔｈｅ
ｌｅｓｓｅｅ；
ｃ． ｔｈｅ ｌｅａｓｅ ｔｅｒｍ ｉｓ ｆｏｒ ｔｈｅ ｍａｊｏｒ ｐａｒｔ ｏｆ ｔｈｅ ｕｓｅｆｕｌ ｌｉｆｅ ｏｆ ｔｈｅ ｌｅａｓｅｄ ａｓｓｅｔ ｅｖｅｎ ｉｆ ｔｉｔｌｅ
ｉｓ ｎｏｔ ｔｒａｎｓｆｅｒｒｅｄ；
ｄ． ｉｎ ｔｈｅ ｃａｓｅ ｏｆ ｔｈｅ ｌｅｓｓｅｅ， ａｔ ｔｈｅ ｉｎｃｅｐｔｉｏｎ ｏｆ ｔｈｅ ｌｅａｓｅ ｔｈｅ ｐｒｅｓｅｎｔ ｖａｌｕｅ ｏｆ ｔｈｅ ｍｉｎｉｍｕｍ
ｌｅａｓｅ ｐａｙｍｅｎｔｓ ａｍｏｕｎｔｓ ｔｏ ｓｕｂｓｔａｎｔｉａｌｌｙ ａｌｌ ｏｆ ｔｈｅ ｆａｉｒ ｖａｌｕｅ ｏｆ ｔｈｅ ｌｅａｓｅｄ ａｓｓｅｔ； ｉｎ ｔｈｅ ｃａｓｅ
ｏｆ ｌｅｓｓｅｒ， ａｔ ｔｈｅ ｉｎｃｅｐｔｉｏｎ ｏｆ ｔｈｅ ｌｅａｓｅ ｔｈｅ ｐｒｅｓｅｎｔ ｖａｌｕｅ ｏｆ ｔｈｅ ｍｉｎｉｍｕｍ ｌｅａｓｅ ｒｅｃｅｉｐｔｓ ａｍｏｕｎｔｓ
ｔｏ ｓｕｂｓｔａｎｔｉａｌｌｙ ａｌｌ ｏｆ ｔｈｅ ｆａｉｒ ｖａｌｕｅ ｏｆ ｔｈｅ ｌｅａｓｅｄ ａｓｓｅｔ；
ｅ． ｔｈｅ ｌｅａｓｅｄ ａｓｓｅｔｓ ａｒｅ ｏｆ ａ ｓｐｅｃｉａｌｉｚｅｄ ｎａｔｕｒｅ ｓｕｃｈ ｔｈａｔ ｏｎｌｙ ｔｈｅ ｌｅｓｓｅｅ ｃａｎ ｕｓｅ ｔｈｅｍ ｗｉｔｈｏｕｔ
ｍａｊｏｒ ｍｏｄｉｆｉｃａｔｉｏｎｓ ｂｅｉｎｇ ｍａｄｅ．
Ｆｉｘｅｄ ａｓｓｅｔｓ ｕｎｄｅｒ ｆｉｎａｎｃｉｎｇ ｌｅａｓｅ ｓｈａｌｌ ｂｅ ｒｅｃｏｒｄｅｄ ａｔ ｔｈｅ ｌｏｗｅｒ ｏｎｅ ｏｆ ｔｈｅ ｆａｉｒ ｖａｌｕｅ ｏｆ
ｔｈｅ ｌｅａｓｅｄ ａｓｓｅｔ ａｎｄ ｔｈｅ ｐｒｅｓｅｎｔ ｖａｌｕｅ ｏｆ ｔｈｅ ｍｉｎｉｍｕｍ ｌｅａｓｅ ｐａｙｍｅｎｔｓ． Ｔｈｅ ｄｅｐｒｅｃｉａｔｉｏｎ ｍｅｔｈｏｄ
ｉｓ ｃｏｎｓｉｓｔｅｎｔ ｗｉｔｈ ｆｉｘｅｄ ａｓｓｅｔｓ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ．
１５． Ｃｏｎｓｔｒｕｃｔｉｏｎ ｉｎ ｐｒｏｇｒｅｓｓ
Ｃｏｎｓｔｒｕｃｔｉｏｎ ｉｎ ｐｒｏｇｒｅｓｓ （“ＣＩＰ”） ｉｎｃｌｕｄｅｓ ａｌｌ ｃｏｓｔｓ ｉｎｃｕｒｒｅｄ ｄｕｒｉｎｇ ｔｈｅ ｐｒｅｐａｒａｔｉｏｎ ｐｅｒｉｏｄ
ｂｅｆｏｒｅ ｃｏｍｍｅｎｃｅｍｅｎｔ ｏｆ ｃｏｎｓｔｒｕｃｔｉｏｎ ａｎｄ ｕｎｔｉｌ ｔｈｅ ａｓｓｅｔ ｉｓ ｒｅａｄｙ ｆｏｒ ｉｔｓ ｉｎｔｅｎｄｅｄ ｕｓｅ． Ｔｈｅｓｅ
ｃｏｓｔｓ ｉｎｃｌｕｄｅ ｄｉｒｅｃｔ ｍａｔｅｒｉａｌｓ， ｄｉｒｅｃｔ ｌａｂｏｕｒ， ｅｑｕｉｐｍｅｎｔ ｆｏｒ ｉｎｓｔａｌｌａｔｉｏｎ， ｃｏｎｓｔｒｕｃｔｉｏｎ ａｎｄ
ｉｎｓｔａｌｌａｔｉｏｎ ｃｈａｒｇｅｓ， ｍａｎａｇｅｍｅｎｔ ｆｅｅｓ， ｇａｉｎ ｏｒ ｌｏｓｓ ｏｎ ｔｒｉａｌ ｒｕｎ ｐｒｏｄｕｃｔｉｏｎ ａｎｄ ｂｏｒｒｏｗｉｎｇ ｃｏｓｔｓ
ｗｈｉｃｈ ａｒｅ ｑｕａｌｉｆｉｅｄ ｆｏｒ ｃａｐｉｔａｌｉｚａｔｉｏｎ．
ＣＩＰ ｉｓ ｔｒａｎｓｆｅｒｒｅｄ ｔｏ ｆｉｘｅｄ ａｓｓｅｔｓ ｗｈｅｎ ｔｈｅ ａｓｓｅｔ ｉｓ ｒｅａｄｙ ｆｏｒ ｉｔｓ ｉｎｔｅｎｄｅｄ ｕｓｅ．
Ａｔ ｔｈｅ ｂａｌａｎｃｅ ｓｈｅｅｔ ｄａｔｅ， ｗｈｅｒｅ ａｎｙ ｅｖｉｄｅｎｃｅ ｓｈｏｗｓ ｔｈａｔ ｔｈｅｒｅ ｉｓ ｐｏｓｓｉｂｌｅ ＣＩＰ ｉｍｐａｉｒｍｅｎｔ，
ｔｈｅ ｉｍｐａｉｒｍｅｎｔ ｐｒｏｖｉｓｉｏｎ ｉｓ ｍａｄｅ ａｃｃｏｒｄｉｎｇ ｔｏ Ｎｏｔｅｓ ＩＩ．１７．
１６． Ｂｏｒｒｏｗｉｎｇ Ｃｏｓｔｓ
Ｂｏｒｒｏｗｉｎｇ ｃｏｓｔｓ ａｒｅ ｉｎｔｅｒｅｓｔ ａｎｄ ｏｔｈｅｒ ｒｅｌａｔｅｄ ｃｏｓｔｓ ｉｎｃｕｒｒｅｄ ｂｙ ｔｈｅ Ｃｏｍｐａｎｙ ｉｎ ｃｏｎｎｅｃｔｉｏｎ
ｗｉｔｈ ｔｈｅ ｂｏｒｒｏｗｉｎｇ ｏｆ ｆｕｎｄｓ， ａｎｄ ｉｎｃｌｕｄｅ ｉｎｔｅｒｅｓｔ， ａｍｏｒｔｉｚａｔｉｏｎ ｏｆ ｄｉｓｃｏｕｎｔｓ ｏｒ ｐｒｅｍｉｕｍｓ ｒｅｌａｔｅｄ
ｔｏ ｂｏｒｒｏｗｉｎｇｓ， ａｎｃｉｌｌａｒｙ ｃｏｓｔｓ ｉｎｃｕｒｒｅｄ ｉｎ ｃｏｎｎｅｃｔｉｏｎ ｗｉｔｈ ｔｈｅ ａｒｒａｎｇｅｍｅｎｔ ｏｆ ｂｏｒｒｏｗｉｎｇｓ， ａｎｄ
ｅｘｃｈａｎｇｅ ｄｉｆｆｅｒｅｎｃｅｓ ａｒｉｓｉｎｇ ｆｒｏｍ ｆｏｒｅｉｇｎ ｃｕｒｒｅｎｃｙ ｂｏｒｒｏｗｉｎｇｓ． Ｂｏｒｒｏｗｉｎｇ ｃｏｓｔｓ ｔｈａｔ ａｒｅ ｄｉｒｅｃｔｌｙ
ａｔｔｒｉｂｕｔａｂｌｅ ｔｏ ｔｈｅ ａｃｑｕｉｓｉｔｉｏｎ， ｃｏｎｓｔｒｕｃｔｉｏｎ ｏｒ ｐｒｏｄｕｃｔｉｏｎ ｏｆ ａ ｑｕａｌｉｆｙｉｎｇ ａｓｓｅｔ ｓｈａｌｌ ｂｅ
ｃａｐｉｔａｌｉｚｅｄ ａｓ ｐａｒｔ ｏｆ ｔｈｅ ｃｏｓｔ ｏｆ ｔｈａｔ ａｓｓｅｔ． Ｔｈｅ ａｍｏｕｎｔｓ ｏｆ ｏｔｈｅｒ ｂｏｒｒｏｗｉｎｇ ｃｏｓｔｓ ｉｎｃｕｒｒｅｄ ｓｈａｌｌ
ｂｅ ｒｅｃｏｇｎｉｚｅｄ ａｓ ａｎ ｅｘｐｅｎｓｅ ｉｎ ｔｈｅ ｐｅｒｉｏｄ ｉｎ ｗｈｉｃｈ ｔｈｅｙ ａｒｅ ｉｎｃｕｒｒｅｄ．
Ｑｕａｌｉｆｙｉｎｇ ａｓｓｅｔｓ ａｒｅ ａｓｓｅｔｓ （ｆｉｘｅｄ ａｓｓｅｔｓ， ｉｎｖｅｓｔｍｅｎｔ ｐｒｏｐｅｒｔｙ， ｉｎｖｅｎｔｏｒｉｅｓ， ｅｔｃ．） ｔｈａｔ
ｎｅｃｅｓｓａｒｉｌｙ ｔａｋｅ ａ ｓｕｂｓｔａｎｔｉａｌ ｐｅｒｉｏｄ ｏｆ ｔｉｍｅ ｆｏｒ ａｃｑｕｉｓｉｔｉｏｎ， ｃｏｎｓｔｒｕｃｔｉｏｎ ｏｒ ｐｒｏｄｕｃｔｉｏｎ ｔｏ ｇｅｔ
ｒｅａｄｙ ｆｏｒ ｔｈｅｉｒ ｉｎｔｅｎｄｅｄ ｕｓｅ ｏｒ ｓａｌｅ． Ｔｈｅ ｃａｐｉｔａｌｉｚａｔｉｏｎ ｏｆ ｂｏｒｒｏｗｉｎｇ ｃｏｓｔｓ ｃａｎ ｃｏｍｍｅｎｃｅ ｏｎｌｙ
ｗｈｅｎ ａｌｌ ｏｆ ｔｈｅ ｆｏｌｌｏｗｉｎｇ ｃｏｎｄｉｔｉｏｎｓ ａｒｅ ｓａｔｉｓｆｉｅｄ： （１） ｅｘｐｅｎｄｉｔｕｒｅｓ ｆｏｒ ｔｈｅ ａｓｓｅｔ ａｒｅ ｂｅｉｎｇ
ｉｎｃｕｒｒｅｄ； （２） ｂｏｒｒｏｗｉｎｇ ｃｏｓｔｓ ａｒｅ ｂｅｉｎｇ ｉｎｃｕｒｒｅｄ； （３） ａｃｔｉｖｉｔｉｅｓ ｒｅｌａｔｉｎｇ ｔｏ ｔｈｅ ａｃｑｕｉｓｉｔｉｏｎ，
ｃｏｎｓｔｒｕｃｔｉｏｎ ｏｒ ｐｒｏｄｕｃｔｉｏｎ ｏｆ ｔｈｅ ａｓｓｅｔ ｔｈａｔ ａｒｅ ｎｅｃｅｓｓａｒｙ ｔｏ ｐｒｅｐａｒｅ ｔｈｅ ａｓｓｅｔ ｆｏｒ ｉｔｓ ｉｎｔｅｎｄｅｄ
ｕｓｅ ｏｒ ｓａｌｅ ｈａｖｅ ｃｏｍｍｅｎｃｅｄ．
Ｗｈｅｎ ｔｈｅ ｑｕａｌｉｆｉｅｄ ａｓｓｅｔ ｕｎｄｅｒ ａｃｑｕｉｓｉｔｉｏｎ ａｎｄ ｃｏｎｓｔｒｕｃｔｉｏｎ ｏｒ ｐｒｏｄｕｃｔｉｏｎ ｉｓ ｒｅａｄｙ ｆｏｒ ｔｈｅ ｉｎｔｅｎｄｅｄ ｕｓｅ
ｏｒ ｓａｌｅ， ｔｈｅ ｃａｐｉｔａｌｉｚａｔｉｏｎ ｏｆ ｔｈｅ ｂｏｒｒｏｗｉｎｇ ｃｏｓｔｓ ｓｈａｌｌ ｂｅ ｃｅａｓｅｄ； ｔｈｅｎ ｔｈｅ ｂｏｒｒｏｗｉｎｇ ｃｏｓｔｓ ｉｎｃｕｒｒｅｄ ｓｈａｌｌ
ｂｅ ｒｅｃｏｒｄｅｄ ｉｎｔｏ ｔｈｅ ｐｒｏｆｉｔｓ ａｎｄ ｌｏｓｓｅｓ ｏｆ ｔｈｅ ｃｕｒｒｅｎｔ ｐｅｒｉｏｄ． Ｂｏｒｒｏｗｉｎｇ ｃｏｓｔｓ ｄｕｅ ｔｏ ｌｏａｎｓ ｆｒｏｍ ｒｅａｌ ｅｓｔａｔｅ
ｄｅｖｅｌｏｐｍｅｎｔ ａｒｅ ｒｅｃｏｒｄｅｄ ｉｎｔｏ ｄｅｖｅｌｏｐｍｅｎｔ ｃｏｓｔ ｂｅｆｏｒｅ ｔｈｅ ｃｏｍｐｌｅｔｉｏｎ ｏｆ ｔｈｅ ｐｒｏｊｅｃｔ ａｎｄ ｒｅｃｏｒｄｅｄ ｉｎｔｏ ｃｕｒｒｅｎｔ
ｐｒｏｆｉｔ ａｎｄ ｌｏｓｓ ａｆｔｅｒ ｔｈｅ ｃｏｍｐｌｅｔｉｏｎ ｏｆ ｔｈｅ ｐｒｏｊｅｃｔ． Ｂｏｒｒｏｗｉｎｇ ｃｏｓｔｓ ａｒｅ ｒｅｃｏｒｄｅｄ ｉｎｔｏ ｄｅｖｅｌｏｐｍｅｎｔ ｃｏｓｔ ａｎｄ
ａｍｏｒｔｉｚｅｄ ｑｕａｒｔｅｒｌｙ．
Ｗｈｅｒｅ ｔｈｅ ａｃｑｕｉｓｉｔｉｏｎ ａｎｄ ｃｏｎｓｔｒｕｃｔｉｏｎ ｏｒ ｐｒｏｄｕｃｔｉｏｎ ｏｆ ａ ｑｕａｌｉｆｉｅｄ ａｓｓｅｔ ｉｓ ｉｎｔｅｒｒｕｐｔｅｄ ａｂｎｏｒｍａｌｌｙ ａｎｄ
ｔｈｅ ｉｎｔｅｒｒｕｐｔｉｏｎ ｐｅｒｉｏｄ ｌａｓｔｓ ｆｏｒ ｍｏｒｅ ｔｈａｎ ３ ｍｏｎｔｈｓ， ｔｈｅ ｃａｐｉｔａｌｉｚａｔｉｏｎ ｏｆ ｔｈｅ ｂｏｒｒｏｗｉｎｇ ｃｏｓｔｓ ｓｈａｌｌ ｂｅ
ｓｕｓｐｅｎｄｅｄ． Ｔｈｅ ｂｏｒｒｏｗｉｎｇ ｃｏｓｔｓ ｉｎｃｕｒｒｅｄ ｄｕｒｉｎｇ ｓｕｃｈ ｐｅｒｉｏｄ ｓｈａｌｌ ｂｅ ｒｅｃｏｇｎｉｚｅｄ ａｓ ｅｘｐｅｎｓｅｓ， ａｎｄ ｓｈａｌｌ ｂｅ
ｒｅｃｏｒｄｅｄ ｉｎｔｏ ｔｈｅ ｐｒｏｆｉｔｓ ａｎｄ ｌｏｓｓｅｓ ｏｆ ｔｈｅ ｃｕｒｒｅｎｔ ｐｅｒｉｏｄ．
Ｄｕｒｉｎｇ ｔｈｅ ｃａｐｉｔａｌｉｚａｔｉｏｎ ｐｅｒｉｏｄ， ｔｈｅ ａｍｏｕｎｔ ｏｆ ｉｎｔｅｒｅｓｔ ｔｏ ｂｅ ｃａｐｉｔａｌｉｚｅｄ ｆｏｒ ｅａｃｈ ａｃｃｏｕｎｔｉｎｇ
ｐｅｒｉｏｄ ｓｈａｌｌ ｂｅ ｄｅｔｅｒｍｉｎｅｄ ａｓ ｆｏｌｌｏｗｓ：
（１） ｆｏｒ ａ ｓｐｅｃｉｆｉｃ－ｐｕｒｐｏｓｅ ｂｏｒｒｏｗｉｎｇ， ｔｈｅ ａｍｏｕｎｔ ｏｆ ｉｎｔｅｒｅｓｔ ｔｏ ｂｅ ｃａｐｉｔａｌｉｚｅｄ ｓｈａｌｌ ｂｅ ｔｈｅ
ａｃｔｕａｌ ｉｎｔｅｒｅｓｔ ｅｘｐｅｎｓｅ ｉｎｃｕｒｒｅｄ ｆｏｒ ｔｈｅ ｐｅｒｉｏｄ ｌｅｓｓ ｔｅｍｐｏｒａｒｙ ｄｅｐｏｓｉｔ’ｓ ｉｎｔｅｒｅｓｔ ｏｒ ｉｎｖｅｓｔｍｅｎｔ
ｉｎｃｏｍｅ；
（２） ｗｈｅｒｅ ｆｕｎｄｓ ａｒｅ ｂｏｒｒｏｗｅｄ ｕｎｄｅｒ ｇｅｎｅｒａｌ－ｐｕｒｐｏｓｅ ｂｏｒｒｏｗｉｎｇｓ， ｔｈｅ Ｃｏｍｐａｎｙ ｓｈａｌｌ ｄｅｔｅｒｍｉｎｅ
ｔｈｅ ａｍｏｕｎｔ ｏｆ ｉｎｔｅｒｅｓｔ ｔｏ ｂｅ ｃａｐｉｔａｌｉｚｅｄ ｂｙ ａｐｐｌｙｉｎｇ ａ ｃａｐｉｔａｌｉｚａｔｉｏｎ ｒａｔｅ ｔｏ ｔｈｅ ｗｅｉｇｈｔｅｄ ａｖｅｒａｇｅ
ｏｆ ｔｈｅ ｅｘｃｅｓｓ ａｍｏｕｎｔｓ ｏｆ ｃｕｍｕｌａｔｉｖｅ ｅｘｐｅｎｄｉｔｕｒｅｓ ｏｎ ｔｈｅ ａｓｓｅｔ ｏｖｅｒ ａｎｄ ａｂｏｖｅ ｔｈｅ ａｍｏｕｎｔｓ ｏｆ
ｓｐｅｃｉｆｉｃ－ｐｕｒｐｏｓｅ ｂｏｒｒｏｗｉｎｇｓ． Ｔｈｅ ｃａｐｉｔａｌｉｚａｔｉｏｎ ｒａｔｅ ｓｈａｌｌ ｂｅ ｔｈｅ ｗｅｉｇｈｔｅｄ ａｖｅｒａｇｅ ｏｆ ｔｈｅ ｉｎｔｅｒｅｓｔ
ｒａｔｅｓ ａｐｐｌｉｃａｂｌｅ ｔｏ ｔｈｅ ｇｅｎｅｒａｌ－ｐｕｒｐｏｓｅ ｂｏｒｒｏｗｉｎｇｓ．
１７． Ｉｎｔａｎｇｉｂｌｅ ａｓｓｅｔｓ
Ｔｈｅ ｔｅｒｍ ＂ｉｎｔａｎｇｉｂｌｅ ａｓｓｅｔｓ＂ ｒｅｆｅｒｓ ｔｏ ｔｈｅ ｉｄｅｎｔｉｆｉａｂｌｅ ｎｏｎ－ｍｏｎｅｔａｒｙ ａｓｓｅｔｓ ｐｏｓｓｅｓｓｅｄ ｏｒ
ｃｏｎｔｒｏｌｌｅｄ ｂｙ ｅｎｔｅｒｐｒｉｓｅｓ ｗｈｉｃｈ ｈａｖｅ ｎｏ ｐｈｙｓｉｃａｌ ｓｈａｐｅ． Ｉｆ ｉｔ ｉｓ ｕｎａｂｌｅ ｔｏ ｆｏｒｅｃａｓｔ ｔｈｅ ｐｅｒｉｏｄ
ｗｈｅｎ ｔｈｅ ｉｎｔａｎｇｉｂｌｅ ａｓｓｅｔ ｃａｎ ｂｒｉｎｇ ｅｃｏｎｏｍｉｃ ｂｅｎｅｆｉｔｓ ｔｏ ｔｈｅ ｅｎｔｅｒｐｒｉｓｅ， ｉｔ ｓｈａｌｌ ｂｅ ｒｅｇａｒｄｅｄ
ａｓ ａｎ ｉｎｔａｎｇｉｂｌｅ ａｓｓｅｔ ｗｉｔｈ ｕｎｃｅｒｔａｉｎ ｓｅｒｖｉｃｅ ｌｉｆｅ． Ｔｈｅ ｉｎｔａｎｇｉｂｌｅ ａｓｓｅｔｓ ｓｈａｌｌ ｂｅ ｉｎｉｔｉａｌｌｙ
ｍｅａｓｕｒｅｄ ａｃｃｏｒｄｉｎｇ ｔｏ ｉｔｓ ｃｏｓｔ． Ｉｆ ｉｔ ｉｓ ｕｎａｂｌｅ ｔｏ ｄｅｔｅｒｍｉｎｅ ｔｈｅ ｅｘｐｅｃｔｅｄ ｒｅａｌｉｚａｔｉｏｎ ｐａｔｔｅｒｎ
ｒｅｌｉａｂｌｙ， ｉｎｔａｎｇｉｂｌｅ ａｓｓｅｔｓ ｓｈａｌｌ ｂｅ ａｍｏｒｔｉｚｅｄ ｂｙ ｔｈｅ ｓｔｒａｉｇｈｔ－ｌｉｎｅ ｍｅｔｈｏｄ． Ａｎ ｅｎｔｅｒｐｒｉｓｅ ｓｈａｌｌ，
ａｔ ｌｅａｓｔ ａｔ ｔｈｅ ｅｎｄ ｏｆ ｅａｃｈ ｙｅａｒ， ｃｈｅｃｋ ｔｈｅ ｓｅｒｖｉｃｅ ｌｉｆｅ ａｎｄ ｔｈｅ ａｍｏｒｔｉｚａｔｉｏｎ ｍｅｔｈｏｄ ｏｆ ｉ ｎｔａｎｇｉｂｌｅ
ａｓｓｅｔｓ ｗｉｔｈ ｌｉｍｉｔｅｄ ｓｅｒｖｉｃｅ ｌｉｆｅ， ａｎｄ ａｄｊｕｓｔ ｔｈｅｍ ｗｈｅｎ ｎｅｃｅｓｓａｒｙ． Ｉｎｔａｎｇｉｂｌｅ ａｓｓｅｔｓ ｗｉｔｈ ｕｎｃｅｒｔａｉｎ
ｓｅｒｖｉｃｅ ｌｉｆｅ ｍａｙ ｎｏｔ ｂｅ ａｍｏｒｔｉｚｅｄ． Ａｎ ｅｎｔｅｒｐｒｉｓｅ ｓｈａｌｌ ｃｈｅｃｋ ｔｈｅ ｓｅｒｖｉｃｅ ｌｉｆｅ ｏｆ ｉｎｔａｎｇｉｂｌｅ ａｓｓｅｔｓ
ｗｉｔｈ ｕｎｃｅｒｔａｉｎ ｓｅｒｖｉｃｅ ｌｉｆｅ ｄｕｒｉｎｇ ｅａｃｈ ａｃｃｏｕｎｔｉｎｇ ｐｅｒｉｏｄ． Ｗｈｅｒｅ ａｎｙ ｅｖｉｄｅｎｃｅ ｓｈｏｗｓ ｔｈａｔ ｔｈｅｒｅ
ｉｓ ｐｏｓｓｉｂｌｅ ａｓｓｅｔｓ ｉｍｐａｉｒｍｅｎｔ， ｔｈｅ ｉｍｐａｉｒｍｅｎｔ ｐｒｏｖｉｓｉｏｎ ｉｓ ｍａｄｅ．
１８． Ｌｏｎｇ－ｔｅｒｍ ｐｒｅｐａｉｄ ｅｘｐｅｎｓｅｓ
Ｌｏｎｇ－ｔｅｒｍ ｐｒｅｐａｉｄ ｅｘｐｅｎｓｅｓ ｍａｉｎｌｙ ｉｎｃｌｕｄｅ ｓｐｅｎｄｉｎｇ ｐａｉｄ ｗｉｔｈ ｔｈｅ ｂｅｎｅｆｉｔ ｐｅｒｉｏｄ ｏｆ ｍｏｒｅ ｔｈａｎ
ｏｎｅ ｙｅａｒ （ｅｘｃｌｕｄｉｎｇ ｔｈｅ ｙｅａｒ ｐｅｒｉｏｄ） ｓｕｃｈ ａｓ ｃａｒ ｐａｒｋｉｎｇ ｆｅｅｓ， ｈｏｕｓｉｎｇ ｒｅｎｏｖａｔｉｏｎ ｆｅｅｓ， ｅｔｃ．
Ｌｏｎｇ－ｔｅｒｍ ｐｒｅｐａｉｄ ｅｘｐｅｎｓｅｓ ｓｈａｌｌ ｂｅ ａｍｏｒｔｉｚｅｄ ｔｈｅ ｃｏｓｔｓ ｏｖｅｒ ｔｈｅ ｄｕｒａｔｉｏｎ ｏｆ ｔｈｅ ｐｒｏｊｅｃｔ
ｂｅｎｅｆｉｃｉａｒｙ．
１９． Ｃｏｎｔｉｎｇｅｎｃｉｅｓ ｌｉａｂｉｌｉｔｉｅｓ
Ｔｈｅ ｏｂｌｉｇａｔｉｏｎ ｐｅｒｔｉｎｅｎｔ ｔｏ ａ Ｃｏｎｔｉｎｇｅｎｃｉｅｓ ｓｈａｌｌ ｂｅ ｒｅｃｏｇｎｉｚｅｄ ａｓ ａｃｃｒｕｅｄ ｌｉａｂｉｌｉｔｉｅｓ ｗｈｅｎ
ｔｈｅ ｆｏｌｌｏｗｉｎｇ ｃｏｎｄｉｔｉｏｎｓ ａｒｅ ｓａｔｉｓｆｉｅｄ ｓｉｍｕｌｔａｎｅｏｕｓｌｙ： （１）Ｔｈａｔ ｏｂｌｉｇａｔｉｏｎ ｉｓ ａ ｃｕｒｒｅｎｔ
ｏｂｌｉｇａｔｉｏｎ ｏｆ ｔｈｅ ｅｎｔｅｒｐｒｉｓｅ； （２）Ｉｔ ｉｓ ｌｉｋｅｌｙ ｔｏ ｃａｕｓｅ ａｎｙ ｅｃｏｎｏｍｉｃ ｂｅｎｅｆｉｔ ｔｏ ｆｌｏｗ ｏｕｔ ｏｆ ｔｈｅ
ｅｎｔｅｒｐｒｉｓｅ ａｓ ａ ｒｅｓｕｌｔ ｏｆ ｐｅｒｆｏｒｍａｎｃｅ ｏｆ ｔｈｅ ｏｂｌｉｇａｔｉｏｎ； （３）Ｔｈｅ ａｍｏｕｎｔ ｏｆ ｔｈｅ ｏｂｌｉｇａｔｉｏｎ ｃａｎ ｂｅ
ｍｅａｓｕｒｅｄ ｉｎ ａ ｒｅｌｉａｂｌｅ ｗａｙ． Ｔｈｅ ｅｓｔｉｍａｔｅｄ ｄｅｂｔｓ ｓｈａｌｌ ｂｅ ｉｎｉｔｉａｌｌｙ ｍｅａｓｕｒｅｄ ｉｎ ａｃｃｏｒｄａｎｃｅ ｗｉｔｈ
ｔｈｅ ｂｅｓｔ ｅｓｔｉｍａｔｅ ｏｆ ｔｈｅ ｎｅｃｅｓｓａｒｙ ｅｘｐｅｎｓｅｓ ｆｏｒ ｔｈｅ ｐｅｒｆｏｒｍａｎｃｅ ｏｆ ｔｈｅ ｃｕｒｒｅｎｔ ｏｂｌｉｇａｔｉｏｎ．
２０． Ｒｅｖｅｎｕｅ ｒｅｃｏｇｎｉｔｉｏｎ
（１） Ｒｅｖｅｎｕｅ ｆｒｏｍ ｔｈｅ ｓａｌｅ ｏｆ ｇｏｏｄｓ ｓｈａｌｌ ｂｅ ｒｅｃｏｇｎｉｚｅｄ ｏｎｌｙ ｗｈｅｎ ａｌｌ ｏｆ ｔｈｅ ｆｏｌｌｏｗｉｎｇ ｃｏｎｄｉｔｉｏｎｓ
ａｒｅ ｓａｔｉｓｆｉｅｄ：
ａ． ｔｈｅ ｅｎｔｅｒｐｒｉｓｅ ｈａｓ ｔｒａｎｓｆｅｒｒｅｄ ｔｏ ｔｈｅ ｂｕｙｅｒ ｔｈｅ ｓｉｇｎｉｆｉｃａｎｔ ｒｉｓｋｓ ａｎｄ ｒｅｗａｒｄｓ ｏｆ ｏｗｎｅｒｓｈｉｐ
ｏｆ ｔｈｅ ｇｏｏｄｓ；
ｂ． ｔｈｅ ｅｎｔｅｒｐｒｉｓｅ ｒｅｔａｉｎｓ ｎｅｉｔｈｅｒ ｃｏｎｔｉｎｕｉｎｇ ｍａｎａｇｅｒｉａｌ ｉｎｖｏｌｖｅｍｅｎｔ ｔｏ ｔｈｅ ｄｅｇｒｅｅ ｕｓｕａｌｌｙ
ａｓｓｏｃｉａｔｅｄ ｗｉｔｈ ｏｗｎｅｒｓｈｉｐ ｎｏｒ ｅｆｆｅｃｔｉｖｅ ｃｏｎｔｒｏｌ ｏｖｅｒ ｔｈｅ ｇｏｏｄｓ ｓｏｌｄ；
ｃ． ｔｈｅ ａｍｏｕｎｔ ｏｆ ｒｅｖｅｎｕｅ ｃａｎ ｂｅ ｍｅａｓｕｒｅｄ ｒｅｌｉａｂｌｙ；
ｄ． ｉｔ ｉｓ ｐｒｏｂａｂｌｅ ｔｈａｔ ｔｈｅ ａｓｓｏｃｉａｔｅｄ ｅｃｏｎｏｍｉｃ ｂｅｎｅｆｉｔｓ ｗｉｌｌ ｆｌｏｗ ｔｏ ｔｈｅ ｅｎｔｅｒｐｒｉｓｅ；
ｅ． ｔｈｅ ａｓｓｏｃｉａｔｅｄ ｃｏｓｔｓ ｉｎｃｕｒｒｅｄ ｏｒ ｔｏ ｂｅ ｉｎｃｕｒｒｅｄ ｃａｎ ｂｅ ｍｅａｓｕｒｅｄ ｒｅｌｉａｂｌｙ．
Ｒｅａｌ ｅｓｔａｔｅ ｓａｌｅｓ ｒｅｖｅｎｕｅ： ｔｈｅ Ｃｏｍｐａｎｙ ｃａｎ ｒｅｃｏｇｎｉｚｅ ｒｅａｌ ｅｓｔａｔｅ ｓａｌｅｓ ｒｅｖｅｎｕｅ ａｆｔｅｒ ｔｈｅ
ｃｏｍｐｌｅｔｉｏｎ ａｎｄ ａｃｃｅｐｔａｎｃｅ ｏｆ ｔｈｅ ｐｒｏｐｅｒｔｙ， ｓｉｇｎｉｎｇ ｓａｌｅ ｃｏｎｔｒａｃｔ， ａｃｑｕｉｒｉｎｇ ｐａｙｍｅｎｔ ｐｒｏｏｆ ｆｒｏｍ
ｂｕｙｅｒ ａｎｄ ｄｅｌｉｖｅｒｙ． Ｗｈｅｎ ｔｈｅ ｂｕｙｅｒ ｒｅｃｅｉｖｅｓ ｗｒｉｔｔｅｎ ｄｅｌｉｖｅｒｙ ｎｏｔｉｃｅ ａｎｄ ｈａｓ ｎｏ ｗａｒｒａｎｔ ｔｏ ｒｅｆｕｓｅ
ｔｏ ａｃｃｅｐｔ ｉｔ， ｔｈｅ ｓａｌｅｓ ｒｅｖｅｎｕｅ ｉｓ ｒｅａｌｉｚｅｄ ａｆｔｅｒ ｄｅｌｉｖｅｒｙ ｌｉｍｉｔ ｃｌｏｓｅｄ ｏｆ ｄｅｌｉｖｅｒｙ ｎｏｔｉｃｅ． Ｆｏｒ
ｔｈｅ ｄｅｖｅｌｏｐｍｅｎｔ ｐｒｏｊｅｃｔ ｃｏｎｓｉｇｎｅｄ ｂｙ ｏｔｈｅｒ， ａｓ ｗｅｌｌ ａｓ ｉｎ ａｃｃｏｒｄａｎｃｅ ｗｉｔｈ ＂ Ａｃｃｏｕｎｔｉｎｇ Ｓｔａｎｄａｒｄｓ
ｆｏｒ Ｂｕｓｉｎｅｓｓ Ｅｎｔｅｒｐｒｉｓｅｓ －Ｃｏｎｓｔｒｕｃｔｉｏｎ Ｃｏｎｔｒａｃｔ＂， ｔｈｅ ｒｅｖｅｎｕｅ ｓｈａｌｌ ｂｅ ｒｅｃｏｇｎｉｚｅｄ ｉｎ ｌｉｇｈｔ ｏｆ
ｔｈｅ ｐｅｒｃｅｎｔａｇｅ－ｏｆ－ ｃｏｍｐｌｅｔｉｏｎ ｍｅｔｈｏｄ． Ｔｈｅ ｐｅｒｃｅｎｔａｇｅ－ｏｆ－ ｃｏｍｐｌｅｔｉｏｎ ｉｓ ｄｅｔｅｒｍｉｎｅｄ ｂｙ ｔｈｅ
ｐｒｏｐｏｒｔｉｏｎ ｏｆ ｆｉｎｉｓｈｅｄ ｗｏｒｋｌｏａｄ．
（２） Ｒｅｎｄｅｒｉｎｇ ｏｆ ｓｅｒｖｉｃｅｓ
Ｗｈｅｎ ｔｈｅ ｏｕｔｃｏｍｅ ｏｆ ａ ｔｒａｎｓａｃｔｉｏｎ ｉｎｖｏｌｖｉｎｇ ｔｈｅ ｒｅｎｄｅｒｉｎｇ ｏｆ ｓｅｒｖｉｃｅｓ ｃａｎ ｂｅ ｅｓｔｉｍａｔｅｄ ｒｅｌｉａｂｌｙ
ａｔ ｔｈｅ ｂａｌａｎｃｅ ｓｈｅｅｔ ｄａｔｅ （ｉｎｃｌｕｄｉｎｇ： ｔｈｅ ａｍｏｕｎｔ ｏｆ ｒｅｖｅｎｕｅ ｃａｎ ｂｅ ｍｅａｓｕｒｅｄ ｒｅｌｉａｂｌｙ； ｉｔ ｉｓ ｐｒｏｂａｂｌｅ
ｔｈａｔ ｔｈｅ ａｓｓｏｃｉａｔｅｄ ｅｃｏｎｏｍｉｃ ｂｅｎｅｆｉｔｓ ｗｉｌｌ ｆｌｏｗ ｔｏ ｔｈｅ ｅｎｔｅｒｐｒｉｓｅ； ｔｈｅ ｓｔａｇｅ ｏｆ ｃｏｍｐｌｅｔｉｏｎ ｏｆ
ｔｈｅ ｔｒａｎｓａｃｔｉｏｎ ｃａｎ ｂｅ ｍｅａｓｕｒｅｄ ｒｅｌｉａｂｌｙ； ｔｈｅ ｃｏｓｔｓ ｉｎｃｕｒｒｅｄ ａｎｄ ｔｏ ｂｅ ｉｎｃｕｒｒｅｄ ｆｏｒ ｔｈｅ ｔｒａｎｓａｃｔｉｏｎ
ｃａｎ ｂｅ ｍｅａｓｕｒｅｄ ｒｅｌｉａｂｌｙ）， ｒｅｖｅｎｕｅ ａｓｓｏｃｉａｔｅｄ ｗｉｔｈ ｔｈｅ ｔｒａｎｓａｃｔｉｏｎ ｓｈａｌｌ ｂｅ ｒｅｃｏｇｎｉｚｅｄ ｕｓｉｎｇ ｔｈｅ
ｐｅｒｃｅｎｔａｇｅ ｏｆ ｃｏｍｐｌｅｔｉｏｎ ｍｅｔｈｏｄ， ａｎｄ ｔｈｅ ｓｔａｇｅ ｏｆ ｃｏｍｐｌｅｔｉｏｎ ｏｆ ｔｈｅ ｔｒａｎｓａｃｔｉｏｎ ｉｓ ｒｅｃｏｇｎｉｚｅｄ
ａｃｃｏｒｄｉｎｇ ｔｏ ｔｈｅ ｐｒｏｐｏｒｔｉｏｎ ｏｆ ｔｈｅ ｃｏｓｔ ｈａｖｉｎｇ ｔａｋｅｎ ｐｌａｃｅ ｏｃｃｕｐｉｅｄ ｔｈｅ ｅｓｔｉｍａｔｅｄ ｔｏｔａｌ ｃｏｓｔ．
Ｗｈｅｎ ｔｈｅ ｏｕｔｃｏｍｅ ｏｆ ａ ｔｒａｎｓａｃｔｉｏｎ ｉｎｖｏｌｖｉｎｇ ｔｈｅ ｒｅｎｄｅｒｉｎｇ ｏｆ ｓｅｒｖｉｃｅｓ ｃａｎ ｎｏｔ ｂｅ ｅｓｔｉｍａｔｅｄ
ｒｅｌｉａｂｌｙ ａｔ ｔｈｅ ｂａｌａｎｃｅ ｓｈｅｅｔ ｄａｔｅ： ｗｈｅｎ ｔｈｅ ｃｏｓｔｓ ｉｎｃｕｒｒｅｄ ａｒｅ ｅｘｐｅｃｔｅｄ ｔｏ ｂｅ ｒｅｃｏｖｅｒａｂｌｅ， ｒｅｖｅｎｕｅ
ｓｈａｌｌ ｂｅ ｒｅｃｏｇｎｉｚｅｄ ｔｏ ｔｈｅ ｅｘｔｅｎｔ ｏｆ ｃｏｓｔｓ ｉｎｃｕｒｒｅｄ ａｎｄ ａｎ ｅｑｕｉｖａｌｅｎｔ ａｍｏｕｎｔ ｓｈａｌｌ ｂｅ ｃｈａｒｇｅｄ
ｔｏ ｐｒｏｆｉｔ ｏｒ ｌｏｓｓ ａｓ ｓｅｒｖｉｃｅ ｃｏｓｔｓ； ｗｈｅｎ ｔｈｅ ｃｏｓｔｓ ｉｎｃｕｒｒｅｄ ａｒｅ ｎｏｔ ｅｘｐｅｃｔｅｄ ｔｏ ｂｅ ｒｅｃｏｖｅｒａｂｌｅ，
ｔｈｅ ｃｏｓｔｓ ｉｎｃｕｒｒｅｄ ｓｈａｌｌ ｂｅ ｒｅｃｏｇｎｉｚｅｄ ｉｎ ｐｒｏｆｉｔ ｏｒ ｌｏｓｓ ｆｏｒ ｔｈｅ ｃｕｒｒｅｎｔ ｐｅｒｉｏｄ ａｎｄ ｎｏ ｓｅｒｖｉｃｅ
ｒｅｖｅｎｕｅ ｓｈａｌｌ ｂｅ ｒｅｃｏｇｎｉｚｅｄ．
Ｔｈｅ ｒｅｖｅｎｕｅ ｏｆ ｐｒｏｐｅｒｔｙ ｍａｎａｇｅｍｅｎｔ ｓｅｒｖｉｃｅ ｉｓ ｒｅｃｏｇｎｉｚｅｄ ｗｈｅｎ ｆｏｌｌｏｗｉｎｇ ｃｏｎｄｉｔｉｏｎｓ ａｒｅ
ｓａｔｉｓｆｉｅｄ： ｔｈｅ ｐｒｏｐｅｒｔｙ ｍａｎａｇｅｍｅｎｔ ｓｅｒｖｉｃｅ ｈａｓ ｂｅｅｎ ｏｆｆｅｒｅｄ； ｔｈｅ ａｓｓｏｃｉａｔｅｄ ｅｃｏｎｏｍｉｃ ｂｅｎｅｆｉｔｓ
ｗｉｌｌ ｆｌｏｗ ｔｏ ｔｈｅ ｅｎｔｅｒｐｒｉｓｅ； ｔｈｅ ａｓｓｏｃｉａｔｅｄ ｃｏｓｔｓ ｃａｎ ｂｅ ｍｅａｓｕｒｅｄ ｒｅｌｉａｂｌｙ．
（３） Ｕｓｅ ｂｙ ｏｔｈｅｒｓ ｏｆ ｅｎｔｅｒｐｒｉｓｅ ａｓｓｅｔｓ
Ｒｅｖｅｎｕｅ ａｒｉｓｉｎｇ ｆｒｏｍ ｔｈｅ ｕｓｅ ｂｙ ｏｔｈｅｒｓ ｏｆ ｅｎｔｅｒｐｒｉｓｅ ａｓｓｅｔｓ ｓｈａｌｌ ｂｅ ｒｅｃｏｇｎｉｚｅｄ ｏｎｌｙ ｗｈｅｎ ｂｏｔｈ ｏｆ ｔｈｅ
ｆｏｌｌｏｗｉｎｇ ｃｏｎｄｉｔｉｏｎｓ ａｒｅ ｓａｔｉｓｆｉｅｄ： ｉｔ ｉｓ ｐｒｏｂａｂｌｅ ｔｈａｔ ｔｈｅ ａｓｓｏｃｉａｔｅｄ ｅｃｏｎｏｍｉｃ ｂｅｎｅｆｉｔｓ ｗｉｌｌ ｆｌｏｗ ｔｏ ｔｈｅ
ｅｎｔｅｒｐｒｉｓｅ； ｔｈｅ ａｍｏｕｎｔ ｏｆ ｔｈｅ ｒｅｖｅｎｕｅ ｃａｎ ｂｅ ｍｅａｓｕｒｅｄ ｒｅｌｉａｂｌｙ． Ｔｈｅ ａｍｏｕｎｔ ｏｆ ｉｎｔｅｒｅｓｔ ｓｈａｌｌ ｂｅ ｄｅｔｅｒｍｉｎｅｄ
ａｃｃｏｒｄｉｎｇ ｔｏ ｔｈｅ ｌｅｎｇｔｈ ｏｆ ｔｉｍｅ ｆｏｒ ｗｈｉｃｈ ｔｈｅ ｅｎｔｅｒｐｒｉｓｅ’ｓ ｃｕｒｒｅｎｃｙ ｆｕｎｄ ｉｓ ｕｓｅｄ ｂｙ ｏｔｈｅｒｓ ａｎｄ ｔｈｅ ｅｆｆｅｃｔｉｖｅ
ｉｎｔｅｒｅｓｔ ｒａｔｅ． Ｔｈｅ ａｍｏｕｎｔ ｏｆ ｒｏｙａｌｔｉｅｓ ｓｈａｌｌ ｂｅ ｄｅｔｅｒｍｉｎｅｄ ａｃｃｏｒｄｉｎｇ ｔｏ ｔｈｅ ｐｅｒｉｏｄ ａｎｄ ｍｅｔｈｏｄ ｏｆ ｃｈａｒｇｉｎｇ
ａｓ ｓｔｉｐｕｌａｔｅｄ ｉｎ ｔｈｅ ｒｅｌｅｖａｎｔ ｃｏｎｔｒａｃｔ ｏｒ ａｇｒｅｅｍｅｎｔ．
２１． Ｇｏｖｅｒｎｍｅｎｔ ｇｒａｎｔｓ
Ｇｏｖｅｒｎｍｅｎｔ ｇｒａｎｔｓ ｓｈａｌｌ ｂｅ ｒｅｃｏｇｎｉｚｅｄ ａｔ ｆａｉｒ ｖａｌｕｅ ｏｎ ｔｈｅ ｃｏｎｄｉｔｉｏｎｓ ｔｈａｔ ｔｈｅ Ｃｏｍｐａｎｙ ｃａｎ ｒｅｃｅｉｖｅ ｔｈｅ
ｇｒａｎｔ ａｎｄ ｃｏｍｐｌｙ ｗｉｔｈ ｔｈｅ ｃｏｎｄｉｔｉｏｎｓ ａｔｔａｃｈｉｎｇ ｔｏ ｔｈｅ ｇｒａｎｔ． Ｆｏｒ ａ ｇｏｖｅｒｎｍｅｎｔ ｇｒａｎｔ ｒｅｌａｔｅｄ ｔｏ ｉｎｃｏｍｅ， ｉｆ
ｔｈｅ ｇｒａｎｔ ｉｓ ａ ｃｏｍｐｅｎｓａｔｉｏｎ ｆｏｒ ｒｅｌａｔｅｄ ｅｘｐｅｎｓｅｓ ｏｒ ｌｏｓｓｅｓ ｔｏ ｂｅ ｉｎｃｕｒｒｅｄ ｂｙ ｔｈｅ Ｃｏｍｐａｎｙ ｉｎ ｓｕｂｓｅｑｕｅｎｔ ｐｅｒｉｏｄ，
ｔｈｅ ｇｒａｎｔ ｓｈａｌｌ ｂｅ ｒｅｃｏｇｎｉｚｅｄ ａｓ ｄｅｆｅｒｒｅｄ ｉｎｃｏｍｅ， ａｎｄ ｒｅｃｏｇｎｉｚｅｄ ｉｎ ｐｒｏｆｉｔ ｏｒ ｌｏｓｓ ｏｖｅｒ ｔｈｅ ｐｅｒｉｏｄｓ ｉｎ ｗｈｉｃｈ
ｔｈｅ ｒｅｌａｔｅｄ ｃｏｓｔｓ ａｒｅ ｒｅｃｏｇｎｉｚｅｄ． Ａ ｇｏｖｅｒｎｍｅｎｔ ｇｒａｎｔ ｒｅｌａｔｅｄ ｔｏ ａｎ ａｓｓｅｔ ｓｈａｌｌ ｂｅ ｒｅｃｏｇｎｉｚｅｄ ａｓ ｄｅｆｅｒｒｅｄ
ｉｎｃｏｍｅ， ａｎｄ ｅｖｅｎｌｙ ａｍｏｒｔｉｚｅｄ ｔｏ ｐｒｏｆｉｔ ｏｒ ｌｏｓｓ ｏｖｅｒ ｔｈｅ ｕｓｅｆｕｌ ｌｉｆｅ ｏｆ ｔｈｅ ｒｅｌａｔｅｄ ａｓｓｅｔ．
２２． Ｒｅｃｏｇｎｉｔｉｏｎ ｏｆ ｄｅｆｅｒｒｅｄ ｉｎｃｏｍｅ ｔａｘ ａｓｓｅｔｓ ａｎｄ ｌｉａｂｉｌｉｔｉｅｓ
（１） Ｔｈｅ Ｃｏｍｐａｎｙ ｓｈａｌｌ ｒｅｃｏｇｎｉｚｅ ｔｈｅ ｄｅｆｅｒｒｅｄ ｉｎｃｏｍｅ ｔａｘ ａｓｓｅｔｓ ａｒｉｓｉｎｇ ｆｒｏｍ ａ ｄｅｄｕｃｔｉｂｌｅ
ｔｅｍｐｏｒａｒｙ ｄｉｆｆｅｒｅｎｃｅ 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． Ｈｏｗｅｖｅｒ， ｔｈｅ ｄｅｆｅｒｒｅｄ
ｉｎｃｏｍｅ ｔａｘ ａｓｓｅｔｓ， ｗｈｉｃｈ ａｒｅ ａｒｉｓｉｎｇ ｆｒｏｍ ｔｈｅ ｉｎｉｔｉａｌ ｒｅｃｏｇｎｉｔｉｏｎ ｏｆ ａｓｓｅｔｓ ｏｒ ｌｉａｂｉｌｉｔｉｅｓ ｄｕｒｉｎｇ
ａ ｔｒａｎｓａｃｔｉｏｎ ｗｈｉｃｈ ｉｓ ｓｉｍｕｌｔａｎｅｏｕｓｌｙ ｆｅａｔｕｒｅｄ ｂｙ ｔｈｅ ｆｏｌｌｏｗｉｎｇ， ｓｈａｌｌ ｎｏｔ ｂｅ ｒｅｃｏｇｎｉｚｅｄ：
（ｉ） Ｔｈｉｓ ｔｒａｎｓａｃｔｉｏｎ ｉｓ ｎｏｔ ｂｕｓｉｎｅｓｓ ｃｏｍｂｉｎａｔｉｏｎ； ａｎｄ
（ｉｉ） Ａｔ ｔｈｅ ｔｉｍｅ ｏｆ ｔｒａｎｓａｃｔｉｏｎ， ｔｈｅ ａｃｃｏｕｎｔｉｎｇ ｐｒｏｆｉｔｓ ｗｉｌｌ ｎｏｔ ｂｅ ａｆｆｅｃｔｅｄ， ｎｏｒ ｗｉｌｌ ｔｈｅ
ｔａｘａｂｌｅ ａｍｏｕｎｔ （ｏｒ ｔｈｅ ｄｅｄｕｃｔｉｂｌｅ ｌｏｓｓ） ｂｅ ａｆｆｅｃｔｅｄ．
（２） Ｗｈｅｒｅ ｔｈｅ ｄｅｄｕｃｔｉｂｌｅ ｔｅｍｐｏｒａｒｙ ｄｉｆｆｅｒｅｎｃｅ ｒｅｌａｔｅｄ ｔｏ ｔｈｅ ｉｎｖｅｓｔｍｅｎｔｓ ｏｆ ｔｈｅ ｓｕｂｓｉｄｉａｒｙ
ｃｏｍｐａｎｉｅｓ， ａｓｓｏｃｉａｔｅｄ ｅｎｔｅｒｐｒｉｓｅｓ ａｎｄ ｊｏｉｎｔ ｅｎｔｅｒｐｒｉｓｅｓ ｃａｎ ｍｅｅｔ ｔｈｅ ｆｏｌｌｏｗｉｎｇ ｒｅｑｕｉｒｅｍｅｎｔｓ
ｓｉｍｕｌｔａｎｅｏｕｓｌｙ， ｔｈｅ ｅｎｔｅｒｐｒｉｓｅ ｓｈａｌｌ ｒｅｃｏｇｎｉｚｅ ｔｈｅ ｃｏｒｒｅｓｐｏｎｄｉｎｇ ｄｅｆｅｒｒｅｄ ｉｎｃｏｍｅ ｔａｘ ａｓｓｅｔｓ：
（ｉ） Ｔｈｅ ｔｅｍｐｏｒａｒｙ ｄｉｆｆｅｒｅｎｃｅｓ ａｒｅ ｌｉｋｅｌｙ ｔｏ ｂｅ ｒｅｖｅｒｓｅｄ ｉｎ ｔｈｅ ｅｘｐｅｃｔｅｄ ｆｕｔｕｒｅ； ａｎｄ
（ｉｉ） Ｉｔ ｉｓ ｌｉｋｅｌｙ ｔｏ ａｃｑｕｉｒｅ ａｎｙ ａｍｏｕｎｔ ｏｆ ｔａｘａｂｌｅ ｉｎｃｏｍｅ ｔａｘ ｔｈａｔ ｍａｙ ｂｅ ｕｓｅｄ ｆｏｒ ｍａｋｉｎｇ
ｕｐ ｔｈｅ ｄｅｄｕｃｔｉｂｌｅ ｔｅｍｐｏｒａｒｙ ｄｉｆｆｅｒｅｎｃｅｓ．
（ｉｉｉ） Ａｓ ｆｏｒ ａｎｙ ｄｅｄｕｃｔｉｂｌｅ ｌｏｓｓ ｏｒ ｔａｘ ｄｅｄｕｃｔｉｏｎ ｔｈａｔ ｃａｎ ｂｅ ｃａｒｒｉｅｄ ｆｏｒｗａｒｄ ｔｏ ｔｈｅ ｎｅｘｔ
ｙｅａｒ， ｔｈｅ ｃｏｒｒｅｓｐｏｎｄｉｎｇ ｄｅｆｅｒｒｅｄ ｉｎｃｏｍｅ ｔａｘ ａｓｓｅｔｓ ｓｈａｌｌ ｂｅ ｄｅｔｅｒｍｉｎｅｄ ｔｏ ｔｈｅ ｅｘｔｅｎｔ ｔｈａｔ ｔｈｅ
ａｍｏｕｎｔ ｏｆ ｆｕｔｕｒｅ ｔａｘａｂｌｅ ｉｎｃｏｍｅ ｔｏ ｂｅ ｏｆｆｓｅｔ ｂｙ ｔｈｅ ｄｅｄｕｃｔｉｂｌｅ ｌｏｓｓ ｏｒ ｔａｘ ｄｅｄｕｃｔｉｏｎ ｔｏ ｂｅ ｌｉｋｅｌｙ
ｏｂｔａｉｎｅｄ．
（３） Ｒｅｃｏｇｎｉｔｉｏｎ ｏｆ ｄｅｆｅｒｒｅｄ ｉｎｃｏｍｅ ｔａｘ ｌｉａｂｉｌｉｔｉｅｓ
Ｅｘｃｅｐｔ ｆｏｒ ｔｈｅ ｄｅｆｅｒｒｅｄ ｉｎｃｏｍｅ ｔａｘ ｌｉａｂｉｌｉｔｉｅｓ ａｒｉｓｉｎｇ ｆｒｏｍ ｔｈｅ ｆｏｌｌｏｗｉｎｇ ｔｒａｎｓａｃｔｉｏｎｓ， ａｎ
ｅｎｔｅｒｐｒｉｓｅ ｓｈａｌｌ ｒｅｃｏｇｎｉｚｅ ｔｈｅ ｄｅｆｅｒｒｅｄ ｉｎｃｏｍｅ ｔａｘ ｌｉａｂｉｌｉｔｉｅｓ ａｒｉｓｉｎｇ ｆｒｏｍ ａｌｌ ｔａｘａｂｌｅ ｔｅｍｐｏｒａｒｙ
ｄｉｆｆｅｒｅｎｃｅｓ：
（ｉ） ｔｈｅ ｉｎｉｔｉａｌ ｒｅｃｏｇｎｉｔｉｏｎ ｏｆ ｂｕｓｉｎｅｓｓ ｒｅｐｕｔａｔｉｏｎ；
（ｉｉ） ｔｈｅ ｉｎｉｔｉａｌ ｒｅｃｏｇｎｉｔｉｏｎ ｏｆ ａｓｓｅｔｓ ｏｒ ｌｉａｂｉｌｉｔｉｅｓ ａｒｉｓｉｎｇ ｆｒｏｍ ｔｈｅ ｆｏｌｌｏｗｉｎｇ ｔｒａｎｓａｃｔｉｏｎｓ
ｗｈｉｃｈ ａｒｅ ｓｉｍｕｌｔａｎｅｏｕｓｌｙ ｆｅａｔｕｒｅｄ ｂｙ ｔｈｅ ｆｏｌｌｏｗｉｎｇ：
（ａ） Ｔｈｅ ｔｒａｎｓａｃｔｉｏｎ ｉｓ ｎｏｔ ｂｕｓｉｎｅｓｓ ｃｏｍｂｉｎａｔｉｏｎ；
（ｂ） Ａｔ ｔｈｅ ｔｉｍｅ ｏｆ ｔｒａｎｓａｃｔｉｏｎ， ｔｈｅ ａｃｃｏｕｎｔｉｎｇ ｐｒｏｆｉｔｓ ｗｉｌｌ ｎｏｔ ｂｅ ａｆｆｅｃｔｅｄ， ｎｏｒ ｗｉｌｌ ｔｈｅ
ｔａｘａｂｌｅ ａｍｏｕｎｔ （ｏｒ ｔｈｅ ｄｅｄｕｃｔｉｂｌｅ ｌｏｓｓ） ｂｅ ａｆｆｅｃｔｅｄ．
（４） Ｔｈｅ ｉｎｃｏｍｅ ｔａｘｅｓ ｏｆ ｔｈｅ ｃｕｒｒｅｎｔ ｐｅｒｉｏｄ ａｎｄ ｄｅｆｅｒｒｅｄ ｉｎｃｏｍｅ ｔａｘ ｏｆ ａｎ ｅｎｔｅｒｐｒｉｓｅ ｓｈａｌｌ
ｂｅ ｔｒｅａｔｅｄ ａｓ ｉｎｃｏｍｅ ｔａｘ ｅｘｐｅｎｓｅｓ ｏｒ ｉｎｃｏｍｅｓ， ａｎｄ ｓｈａｌｌ ｂｅ ｒｅｃｏｒｄｅｄ ｉｎｔｏ ｔｈｅ ｃｕｒｒｅｎｔ ｐｒｏｆｉｔｓ ａｎｄ
ｌｏｓｓｅｓ， ｅｘｃｌｕｄｉｎｇ ｔｈｅ ｉｎｃｏｍｅ ｔａｘｅｓ ｉｎｃｕｒｒｅｄ ｕｎｄｅｒ ｔｈｅ ｆｏｌｌｏｗｉｎｇ ｃｉｒｃｕｍｓｔａｎｃｅｓ：
（ｉ） ｔｈｅ ｂｕｓｉｎｅｓｓ ｃｏｍｂｉｎａｔｉｏｎ； ａｎｄ
（ｉｉ） ｔｈｅ ｔｒａｎｓａｃｔｉｏｎｓ ｏｒ ｅｖｅｎｔｓ ｄｉｒｅｃｔｌｙ ｒｅｃｏｇｎｉｚｅｄ ａｓ ｔｈｅ ｏｗｎｅｒ＇ｓ ｒｉｇｈｔｓ ａｎｄ ｉｎｔｅｒｅｓｔｓ．
（５） Ｉｍｐａｉｒｍｅｎｔ ｏｎ ｔｈｅ ｄｅｆｅｒｒｅｄ ｉｎｃｏｍｅ ｔａｘ ａｓｓｅｔｓ
Ｏｎ ｔｈｅ ｂａｌａｎｃｅ ｓｈｅｅｔ ｄａｔｅ， ｔｈｅ ｃａｒｒｙ ａｍｏｕｎｔｓ ｏｆ ｔｈｅ ｄｅｆｅｒｒｅｄ ｉｎｃｏｍｅ ｔａｘ ａｓｓｅｔｓ ｓｈａｌｌ ｂｅ
ｒｅｖｉｅｗｅｄ．
２３． Ｍａｉｎｔｅｎａｎｃｅ ｆｕｎｄ
Ｔｈｅ Ｃｏｍｐａｎｙ’ｓ ｐｒｏｐｅｒｔｙ ｍａｎａｇｅｍｅｎｔ ｃｏｍｐａｎｙ ｒｅｃｅｉｖｅｓ ａｎｄ ｍａｎａｇｅｓ ｐｕｂｌｉｃ ｍａｉｎｔｅｎａｎｃｅ ｆｕｎｄ
ｃｏｎｓｉｇｎｅｄ ｂｙ ｏｗｎｅｒｓ， ａｎｄ ｃｈａｒｇｅｓ ｔｏ “ａｇｅｎｃｙ ｆｕｎｄ”． Ｔｈｅ ｆｕｎｄ ｉｓ ｕｓｅｄ ｉｎ ｔｈｅ ｍａｉｎｔｅｎａｎｃｅ ａｎｄ ｕｐｄａｔｅ
ｏｆ ｔｈｅ ｃｏｍｍｏｎ ａｐｐａｒａｔｕｓ ａｎｄ ｃｏｍｍｏｎ ｐｏｓｉｔｉｏｎ ｏｆ ｔｈｅ ｈｏｕｓｅ ａｎｄ ｃｏｍｍｕｎａｌ ｆａｃｉｌｉｔｉｅｓ ｏｆ ｐｒｏｐｅｒｔｙ
ｍａｎａｇｅｍｅｎｔ ｒｅｇｉｏｎ．
２４． Ｑｕａｌｉｔｙ ａｓｓｕｒａｎｃｅ ｒｅｓｅｒｖｅ ｆｕｎｄｓ
Ｃｏｎｓｔｒｕｃｔｉｏｎ ｐａｒｔｙ ｓｈｏｕｌｄ ｒｅｍａｉｎ ｑｕａｌｉｔｙ ａｓｓｕｒａｎｃｅ ｒｅｓｅｒｖｅ ｆｕｎｄｓ ａｃｃｏｒｄｉｎｇ ｔｏ ｔｈｅ ａｍｏｕｎｔ ｉｎ
ｔｈｅ ｃｏｎｓｔｒｕｃｔｉｏｎ ｃｏｎｔｒａｃｔ， ａｎｄ ｌｉｓｔ ｉｎ ＂ａｃｃｏｕｎｔｓ ｐａｙａｂｌｅ＂． Ｔｈｅ ｆｕｎｄｓ ｓｈｏｕｌｄ ｂｅ ｐａｉｄ ａｃｃｏｒｄｉｎｇ
ｔｏ ｔｈｅ ａｃｔｕａｌ ｃｏｎｄｉｔｉｏｎｓ ａｎｄ ｃｏｎｔｒａｃｔ ａｆｔｅｒ ｇｕａｒａｎｔｅｅ ｐｅｒｉｏｄ．
２５． Ｃｈａｎｇｅｓ ｏｆ ａｃｃｏｕｎｔｉｎｇ ｐｏｌｉｃｉｅｓ ａｎｄ ａｃｃｏｕｎｔｉｎｇ ｅｓｔｉｍａｔｅｓ ａｎｄ ｅｒｒｏｒ ｃｏｒｒｅｃｔｉｏｎ
（１） Ｃｈａｎｇｅｓ ｏｆ ａｃｃｏｕｎｔｉｎｇ ｐｏｌｉｃｉｅｓ
Ｎｏｔ ａｐｐｌｉｃａｂｌｅ．
（２） Ｎｏｔｅｓ ｆｏｒ ａｃｃｏｕｎｔｉｎｇ ｅｓｔｉｍａｔｅｓ ｏｆ ｐｒｅｖｉｏｕｓ ｐｅｒｉｏｄ
Ｎｏｔ ａｐｐｌｉｃａｂｌｅ．
２６． Ｃｈａｎｇｅｓ ｏｆ ａｃｃｏｕｎｔｉｎｇ ｅｓｔｉｍａｔｅｓ ａｎｄ ｅｒｒｏｒ ｃｏｒｒｅｃｔｉｏｎ ｏｆ ｐｒｅｖｉｏｕｓ ｐｅｒｉｏｄ
Ｎｏｔ ａｐｐｌｉｃａｂｌｅ．
ＩＩＩ． Ｔａｘａｔｉｏｎ
Ｔｈｅ ｍａｉｎ ｔａｘｅｓ ｉｎｃｌｕｄｅ： ｂｕｓｉｎｅｓｓ ｔａｘ， ｃ ｉｔｙ ｃｏｎｓｔｒｕｃｔｉｏｎ ａｎｄ ｍａｉｎｔｅｎａｎｃｅ ｔａｘ， ｅｄｕｃａｔｉｏｎ ｆｅｅ， ｉｎｃｏｍｅ ｔａｘ
ａｎｄ ｅｔｃ． Ｔｈｅ ｔａｘ ｒａｔｅｓ ａｒｅ ａｓ ｆｏｌｌｏｗｉｎｇ：
Category Rate Taxable base
Revenue of house property sale and lease, property
Business tax 5%
management income and etc.
City construction and maintenance tax 5%, 7% Business tax and value-added tax
Education fee 3% Business tax and value-added tax
Income tax 24%, 25% Taxable income
Ｎｏｔｅ： Ｅｘｃｅｐｔ ｔｈａｔ ｉｎｃｏｍｅ ｔａｘ ｏｆ ｃｏｍｐａｎｉｅｓ ｉｎ Ｈａｉｎａｎ Ｄｉｓｔｒｉｃｔ ａｎｄ Ｈａｉｎａｎ Ｐｅａｒｌ Ｒｉｖｅｒ Ｅｎｔｅｒｐｒｉｓｅｓ Ｈｏｌｄｉｎｇ
Ｃｏ．， Ｌｔｄ． Ｓｈａｎｇｈａｉ Ｒｅａｌ Ｅｓｔａｔｅ Ｃｏ． ｉｓ ｌｅｖｉｅｄ ａｔ ２４％ ｏｆ ｔａｘａｂｌｅ ｉｎｃｏｍｅ， ｔｈｅ ｉｎｃｏｍｅ ｔａｘ ｏｆ ｏｔｈｅｒ ｃｏｍｐａｎｉｅｓ
ｉｓ ｌｅｖｉｅｄ ａｔ ２５％ ｏｆ ｔａｘａｂｌｅ ｉｎｃｏｍｅ．
ＩＶ． Ｂｕｓｉｎｅｓｓ ｃｏｍｂｉｎａｔｉｏｎｓ ａｎｄ ｃｏｎｓｏｌｉｄａｔｉｏｎ ｆｉｎａｎｃｉａｌ ｓｔａｔｅｍｅｎｔｓ
Ｔｈｅ Ｃｏｍｐａｎｙ ｓｈａｌｌ ｉｎｃｌｕｄｅ ａｌｌ ｓｕｂｓｉｄｉａｒｉｅｓ ｗｉｔｈｉｎ ｔｈｅ ｓｃｏｐｅ ｏｆ ｃｏｎｓｏｌｉｄａｔｉｏｎ．
Ｔｈｅ ｃｏｎｓｏｌｉｄａｔｅｄ ｆｉｎａｎｃｉａｌ ｓｔａｔｅｍｅｎｔｓ ｓｈａｌｌ ｂｅ ｐｒｅｐａｒｅｄ ｂｙ ｐａｒｅｎｔ ｂａｓｅｄ ｏｎ ｔｈｅ ｆｉｎａｎｃｉａｌ
ｓｔａｔｅｍｅｎｔｓ ｏｆ ｔｈｅ ｐａｒｅｎｔ ａｎｄ ｉｔｓ ｓｕｂｓｉｄｉａｒｉｅｓ， ｕｓｉｎｇ ｏｔｈｅｒ ｒｅｌａｔｅｄ ｉｎｆｏｒｍａｔｉｏｎ ａｎｄ ａｆｔｅｒ ａｄｊｕｓｔｉｎｇ
ｔｈｅ ｌｏｎｇ－ｔｅｒｍ ｅｑｕｉｔｙ ｉｎｖｅｓｔｍｅｎｔｓ ｉｎ ｓ ｕｂｓｉｄｉａｒｉｅｓ ｕｓｉｎｇ ｔｈｅ ｅｑｕｉｔｙ ｍｅｔｈｏｄ ａｃｃｏｒｄｉｎｇ ｔｏ “Ａｃｃｏｕｎｔｉｎｇ
Ｓｔａｎｄａｒｄ ｆｏｒ Ｂｕｓｉｎｅｓｓ Ｅｎｔｅｒｐｒｉｓｅｓ Ｎｏ．３３—Ｃｏｎｓｏｌｉｄａｔｅｄ Ｆｉｎａｎｃｉａｌ Ｓｔａｔｅｍｅｎｔｓ”．
１． Ｓｕｂｓｉｄｉａｒｉｅｓ ｅｓｔａｂｌｉｓｈｅｄ ｂｙ ｔｈｅ Ｃｏｍｐａｎｙ
Registered Amount invested by
capital Holding Voting rights the Company
Subsidiary’s name Registered address Principal activities
proportion proportion
(RMB 0’000) (RMB 0’000)
Hainan Pearl River
Properties and Hotels
Properties and Hotels
Management Co., Ltd. Hainan Haikou 500 98% 98% 490
Management
Hainan Pearl River
Gardens engineering
Environmental Projects Co.,
Ltd. Hainan Haikou 100 100% 100% 100
construction
Hainan Pearl River Estate
Hainan Haikou 20 Cleaning projects 100% 100% 20
Cleaning Company
Hainan Pearl River Estate
Mechanical and electrical
Machine Engineering
Company Hainan Haikou 150 100% 100% 150
products sales
Hainan Pearl River Estate Real Estate Marketing
Marketing Co., Ltd. Hainan Haikou 100 100% 100% 100
Planning
Sanya Wanjia Hotel
Hainan Sanya 12,000 Hotel service 100% 100% 12,000
Management Co., Ltd.
Hubei Pearl River Real Estate
Development Co., Ltd.
Real estate development and
Hubei Wuhan 6,500 88% 88% 5,720
management
Wuhan Pearl River Meilin
Hotels Management Co.,
Ltd. Hubei Wuhan 50 Service 100% 100% 50
Hainan Pearl River
Real estate development and
Enterprises Holding Co.,
Ltd. Shanghai Real Estate Co. Shanghai 4,000 100% 100% 4,000
management
Beijing Jiubo Culture Development Co.,
Cultural and sports services
Ltd.
Beijing 500 100% 100% 500
Mudanjiang Pearl River Hotel
Hotel management
Management Co., Ltd.
Mudanjiang 6,000 100% 100% 6,000
Hailin Wanjia Snowtown Holiday Hotel Hailin of Heilongjiang
Hotel service
Management Co., Ltd.
2000 100% 100% 2000
Province
Mudanjiang Wanjia Star Hotel Co., Ltd.
Hotel service 100% 100%
Mudanjiang 50 50
Mudanjiang Jingbohu Wanjia Hotel Co., Hotel service 100% 100%
Ltd. Mudanjiang 50 50
Hebei zhengshiqinghui Real Estate 51% 51%
Development Co., Ltd. Hebei Sijiazhuang 1,000 Real estate development and 510
Registered Amount invested by
capital Holding Voting rights the Company
Subsidiary’s name Registered address Principal activities
proportion proportion
(RMB 0’000) (RMB 0’000)
property services
２． Ｔｈｅ ｓｕｂｓｉｄｉａｒｉｅｓ ａｃｑｕｉｒｅｄ ｂｙ ｔｈｅ ｂｕｓｉｎｅｓｓ ｃｏｍｂｉｎａｔｉｏｎ ｕｎｄｅｒ ｎｏｎ－ｕｎｉｆｏｒｍ
ｃｏｎｔｒｏｌ
Business Registered capital Holding Voting rights Consolidated (Yes or
Subsidiary’s name Registered address Principal activities
category (RMB 0’000) proportion proportion No)
Hailin Wanjia
Snowtown Holiday Hailin of Heilongjiang
Limited Liability Hotel service 2,000 100.00 100.00 Yes
Hotel Management
Co., Ltd.
Province
Ｖ． Ｎｏｔｅｓ ｔｏ ｓｉｇｎｉｆｉｃａｎｔ ｉｔｅｍｓ ｏｆ ｔｈｅ ｃｏｎｓｏｌｉｄａｔｅｄ ｆｉｎａｎｃｉａｌ
ｓｔａｔｅｍｅｎｔｓ
１． Ｍｏｎｅｔａｒｙ ｆｕｎｄｓ
Items Jun 30, 2011 Jan 1, 2011
Cash 889,579.96 489,550.91
Bank deposit 70,779,219.00 135,877,954.53
Other monetary funds 17,995.95 9,345.75
Total 71,686,794.91 136,376,851.19
Ｎｏｔｅ： Ｔｈｅ ｏｔｈｅｒ ｍｏｎｅｔａｒｙ ｆｕｎｄ ｗａｓ ｔｈｅ ａｍｏｕｎｔ ｏｆ ｃｒｅｄｉｔ ｃａｒｄ．
２． Ａｃｃｏｕｎｔｓ ｒｅｃｅｉｖａｂｌｅ
（１） Ａｃｃｏｕｎｔｓ ｒｅｃｅｉｖａｂｌｅ ｌｉｓｔｅｄ ｂｙ ｃａｔｅｇｏｒｉｅｓ
June 30, 2011 January 1, 2011
Bad Debt Bad Debt
Categories Amounts Amounts
Provision Provision
Ratio Ratio Ratio Ratio
Amounts Amounts Amounts Amounts
(%) (%) (%) (%)
1. Significant accounts receivable and bad debts 7,761,707.60 46.95 7,761,707.60 100.00 7,761,707.60 55.70 7,761,707.60 100.00
accounted individually
2. Bad debt accounted by the combinations
Age Combinations 6,871,185.67 41.56 695,629.72 10.12 4,183,464.89 30.02 556,219.23 13.30
Combined Subtotal 6,871,185.67 41.56 695,629.72 10.12 4,183,464.89 30.02 556,219.23 13.30
3. Other unimportant receivables but bad debts accounted 1,898,690.60 11.49 1,898,690.60 100.00 1,990,680.02 14.28 1,990,680.02 100.00
individually
Total 16,531,583.87 100.00 10,356,027.92 62.64 13,935,85 2.51 100.00 10,308,606.85 73.97
（２） Ａｇｉｎｇ ａｎａｌｙｓｉｓ
30 Jun 2011 1 Jan 2011
Ages
Balance Proportion (%) Bad debts Bad debts ratio (%) Balance Proportion (%) Bad debts Bad debts ratio (%)
Within 1 year 5,472,008.83 79.64 109,440.18 2.00 2,871,277.47 68.63 57,425.52 2.00
1-2 years 106,000.00 1.54 5,300.00 5.00 106,000.00 2.53 5,300.00 5.00
2-3 years 101,500.00 1.48 10,150.00 10.00 141,500.00 3.38 14,150.00 10.00
3-4 years 35,000.00 0.51 7,000.00 20.00
4-5 years 265,000.00 3.86 79,500.00 30.00 265,000.00 6.33 79,500.00 30.00
Over 5 years 891,676.84 12.98 484,239.54 54.31 799,687.42 19.12 399,843.71 50.00
Total 6,871,185.67 100.00 695,629.72 10.12 4,183,464.89 100.00 556,219.23 13.30
（３） Ｔｈｅ ｔｏｐ ｆｉｖｅ ｄｅｂｔｏｒｓ’ ｅｎｄｉｎｇ ｔｏｔａｌ ｂａｌａｎｃｅ． Ｄｅｔａｉｌｓ ａｒｅ ａｓ ｆｏｌｌｏｗｓ：
Relationship with Proportion of total
Name Owned amount Ages
the company accounts receivable (%)
Hainan racing entertainment Co., LTD client 2,406,158.00 over 5 years 14.55
Hainan Baoping company client 2,218,494.43 over 5 years 13.42
Hainan centaline property agency client 2,090,069.77 over 5 years 12.64
Hainan dragon flim studio client 1,046,985.40 over 5 years 6.33
Xinhe company client 1,920,193.85 Within 1 year 11.62
Total 8,259,227.60 58.56
（４） Ａｔ ｔｈｅ ｅｎｄ ｏｆ ｔｈｉｓ ｒｅｐｏｒｔｉｎｇ ｐｅｒｉｏｄ， ｔｈｅｒｅ ｗａｓ ｎｏ ａｎｙ ａｍｏｕｎｔ ｏｆ ａｃｃｏｕｎｔｓ ｒｅｃｅｉｖａｂｌｅ
ｏｗｅｄ ｂｙ ｔｈｅ ｒｅｌａｔｅｄ ｐａｒｔｉｅｓ．
３． Ｐｒｅｐａｙｍｅｎｔｓ
（１） Ａｇｉｎｇ ａｎａｌｙｓｉｓ
30 Jun 2011 1 Jan 2011
Ages
Balance Proportion (%) Balance Proportion (%)
Within 1 year 58,137,066.89 94.29 51,233,124.48 95.05
1-2 years 2,032,893.29 3.30 672,777.82 1.25
2-3 years 295,238.46 0.48 1,982,179.94 3.68
Over 3 years 1,189,800.00 1.93 10,000.00 0.02
Total 61,654,998.64 100.00 53,898,082.24 100.00
（２） Ｔｏｐ ｆｉｖｅ ｕｎｉｔｓ ｏｆ ｐｒｅｐａｙｍｅｎｔｓ
Proportion
Company’s Name Relationship Amounts Year Unsettled reason
(%)
Sanya Hongzhou International Yacht Council
Supplier 50,000,000.00 81.10 2010
Limited
Harbin Hulan District, Shen Zhen brick Supplier 4,000,000.00 6.49 2011
Guangdong High -spirited Technology Pre-paid subcontracting project with a long-term
Supplier 1,189,800.00 1.93 2008
Development Co., Ltd. construction cycle.
Xizi Otis Elevator Co., Ltd. Supplier 861,140.00 1.40 2010
Shijiazhuang Yongcheng Survey and Design
Supplier 710,000.00 1.15 2011
Company
Proportion
Company’s Name Relationship Amounts Year Unsettled reason
(%)
Total 52,910,647.43 92.07
Ｎｏｔｅ ： Ｔｈｅ ｐｅｒｉｏｄ ｅｎｄ ｂａｌａｎｃｅ ｄｉｄ ｎｏｔ ｃｏｎｔａｉｎ ａｎｙ ｄｅｂｔ ｏｗｎｅｄ ｂｙ ｍａｊｏｒ ｓｈａｒｅｈｏｌｄｅｒｓ ｗｈｏ ｏｗｎ ｍｏｒｅ ｔｈａｎ
５％ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ’ｓ ｓｈａｒｅ ｃａｐｉｔａｌ．
４． Ｄｉｖｉｄｅｎｄｓ ｒｅｃｅｉｖａｂｌｅ
（１） Ｄｅｔａｉｌｓ ｏｆ ｄｉｖｉｄｅｎｄｓ ｒｅｃｅｉｖａｂｌｅ
Items Jan 1, 2011 Increment Decrement Jun 30, 2011
Hainan Pearl River
260,015.00 260,015.00
Guanzhuang Co., Ltd.
Total 260,015.00 260,015.00
（２） Ｄｉｖｉｄｅｎｄｓ ｒｅｃｅｉｖａｂｌｅ ｅｘｃｅｅｄ ｏｎｅ ｙｅａｒ
Invested company Age Ending balance Reason Impairment loss
Hainan Pearl River Guanzhuang Co., Ltd. 3-4years 260,015.00 The invested company has the fund tight problem None
Total 260,015.00
５．Ｏｔｈｅｒ ｒｅｃｅｉｖａｂｌｅｓ
（１） Ｏｔｈｅｒｓ ｒｅｃｅｉｖａｂｌｅ ｌｉｓｔｅｄ ｂｙ ｃａｔｅｇｏｒｉｅｓ
Jun 30, 2011 Jan 1, 2011
Bad Debt Bad Debt
Categories Amounts Amounts
Provision Provision
Ratio Ratio Ratio Ratio
Amounts Amounts Amounts Amounts
(%) (%) (%) (%)
1. Significant others receivable and
bad debts accounted individually
2. Bad debt accounted by the
combinations
Age Combinations 336,852,344.10 91.75 15,844,665.99 4.70 260,684,062.91 85.86 10,097,731.46 3.87
Combined Subtotal 336,852,344.10 91.75 15,844,665.99 4.70 260,684,062.91 85.86 10,097,731.46 3.87
3. Other unimportant receivables but
bad debts accounted individually 30,302,734.25 8.25 29,642,022.65 97.82 42,947,045.95 14.14 35,267,045.95 82.12
Total 367,155,078.35 100.00 45,486,688.64 12.39 303,631,108.86 100.00 45,364,777.41 14.94
（２） Ａｇｉｎｇ ａｎａｌｙｓｉｓ
30 Jun 2011 1 Jan 2011
Ages
Balance Proportion (%) Bad debts Bad debts ratio (%) Balance Proportio n (%) Bad debts Bad debts ratio (%)
Within 1 year 306,083,723.14 90.88 6,121,674.46 2.00 171,435,006.07 65.76 3,428,700.12 2.00
1-2 years 5,104,228.86 1.52 255,211.44 5.00 84,109,980.74 32.27 4,205,499.04 5.00
2-3 years 8,008,640.00 2.38 800,864.00 10.00 17,654.78 0.01 1,765.48 10.00
3-4 years 3,199.86 0.00 639.97 20.00 196,479.49 0.08 39,295.90 20.00
4-5 years 800,000.00 0.24 240,000.00 30.00 200,000.00 0.08 60,000.00 30.00
Over 5 years 16,852,552.24 5.00 8,426,276.12 50.00 4,724,941.83 1.81 2,362,470.92 50.00
Total 336,852,344.10 100.02 15,844,665.99 4.70 260,684,062.91 100.00 10,097,731.46 3.87
（３）Ｔｏｐ ｆｉｖｅ ｕｎｉｔｓ ｏｆ ｏｔｈｅｒｓ ｒｅｃｅｉｖａｂｌｅ
Relationship with Proportion of total
Name Owned amount Ages
the company Other receivable (%)
The entity outside
Public Investment Co., Ltd 125,574,750.00 Within 1 year 34.20
the group
The entity outside
Beijing Wanjia Hongtai Consultant Co.,Ltd 59,332,500.00 Within 1 year 16.16
the group
Zhengzhou Xinliyuan Commercial Information Service Co. ,Ltd Ministry int erests party 50,000,000.00 Within 1 year 13.62
The entity outside
Beijing Sunshine Cambridge Investment Advisory Co., Ltd 43,724,250.00 Within 1 year 11.91
the group
YangPu Nanhua Datong Holding Co., Ltd Ministry interests party 12,600,000.00 600,000.00 Yuan between 3-4 Years; and 12,000,000.00 Yuan over 5 years Over 5 years 3.43
Total 291,231,500.00 79.32
Ｎｏｔｅ ： Ｔｈｅ ｐｅｒｉｏｄ ｅｎｄ ｂａｌａｎｃｅ ｄｉｄ ｎｏｔ ｃｏｎｔａｉｎ ａｎｙ ｄｅｂｔ ｏｗｎｅｄ ｂｙ ｍａｊｏｒ ｓｈａｒｅｈｏｌｄｅｒｓ ｗｈｏ ｏｗｎ ｍｏｒｅ ｔｈａｎ
５％ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ’ｓ ｓｈａｒｅ ｃａｐｉｔａｌ．
６． Ｉｎｖｅｎｔｏｒｉｅｓ
（１） Ｉｎｖｅｎｔｏｒｉｅｓ ｃａｔｅｇｏｒｙ
Dec 31, 2010 Jan 1, 2010
Items
Ending Provision for Ending Provision for
Book value Book value
Balance Inventory Balance Inventory
Raw materials 697,475.99 697,475.99 4,114,823.16 4,114,823.16
Low-value consumption goods: 3,288,261.94 3,288,261.94 917,444.41 917,444.41
Finished goods 34,365,616.69 34,365,616.69 165,126.60 165,126.60
Constructing development
45,272,189.18 45,272,189.18 44,083,027.01 44,083,027.01
product
Development products 62,084,505.23 22,610,830.73 39,473,674.50 128,196,420.63 22,610,830.73 105,585,589.90
Total 145,708,049.03 22,610,830.73 123,097,218.30 177,476,841.81 22,610,830.73 154,866,011.08
（２） Ｉｎｖｅｎｔｏｒｉｅｓ ｉｍｐａｉｒｍｅｎｔ ｐｒｏｖｉｓｉｏｎ
Decrement
Items 1 Jan 20 11 Increment 30 Jun 2011
Transfer back Write off
Development product 22,610,830.73 22,610,830.73
Total 22,610,830.73 22,610,830.73
７． Ａｖａｉｌａｂｌｅ ｆｏｒ ｓａｌｅｓ ｆｉｎａｎｃｉａｌ ａｓｓｅｔｓ
（１） Ａｖａｉｌａｂｌｅ ｆｏｒ ｓａｌｅｓ ｆｉｎａｎｃｉａｌ ａｓｓｅｔｓ ｌｉｓｔｅｄ ｂｙ ｃａｔｅｇｏｒｉｅｓ
Items Fair value at Jun 30,2011 Fair value at Jan 1,2011
Available for sales equity instrument 394,677,500.00 386,697,500.00
Total 394,677,500.00 386,697,500.00
８． Ｊｏｉｎｔ ｉｎｖｅｓｔｍｅｎｔ ａｎｄ ｊｏｉｎｔ ｖｅｎｔｕｒｅ ｉｎｖｅｓｔｍｅｎｔ
（１） Ｊｏｉｎｔ ｉｎｖｅｓｔｍｅｎｔ
Percentage of Percentage of
Business equity interest vote right
Name Nature Registration address legal representative Character Registered capital
（% ） （% ）
Shanghai Sea Pearl
Real Estate
Property ManagementLimited liability Shanghai Qing Zheng 1,660,460.00 50 50
Development
Corporation
Ending Balance of Ending Balance of Ending Balance of Net
Name Operating Income Net profit
Total Assets Total Liabilities Assets
Shanghai Sea Pearl Property Management
1,990,075.49 1,405,127.73 584,947.76 1,270,033.50 115,536.68
Corporation
（２）Ｊｏｉｎｔ ｖｅｎｔｕｒｅ ｉｎｖｅｓｔｍｅｎｔ
Percentage of vote
Registration legal Registered Percentage of equity interest right
Name Nature Business Character
address representative capital （% ）
（% ）
Beijing Sunshine Tiansheng PropertyLimited Property
Beijing Qing Zheng 5,000,000.00 30 30
Management Co., Ltd. liability Management
Sanya Wanjia Enterprises Holdin g Co., Ltd. Limited Hainan Qing Zheng Entertaiment Service 100,000，000.00 40 40
liability
Total Assets on Jun 30, Total Liabilities on Jun
2011 30, 2011 Net Assets on Jun 30, 2011 Total Operating Income till Jun 30, Net Profit till Jun 30,2011
Name
(IRR） 2011 (IRR） (IRR）
(IRR） (IRR）
Beijing Sunshine Tiansheng Property 12,122,487.52 6,473,291.82 5,649,195.70 4,012,563.50 103,230.60
Management Co., Ltd.
Sanya Wanjia Enterprises Holdin g Co., Ltd.
96,203,514.37 1,058,805.68 95,144,708.69 -1,012,039.81
９． Ｌｏｎｇ－ｔｅｒｍ Ｅｑｕｉｔｙ Ｉｎｖｅｓｔｍｅｎｔ
Initial Percentage of Current
Name Accounting Beginning Increase or Ending Percentage of vote right Impairment loss
Method investment Balance decrease Balance equity interest （% ） provision impairment
Cost （% ） loss
Sanya Wanjia Enterprises
Holding Co., Ltd. Equity 20,000,000.00 38,462,699.40 -404,815.92 38,057,883.48 40 40
Method
Guangzhou Pearl River
Investment Management Co., Cost Method 18,177,240.29 18,177,240.29 18,177,240.29 9.4785 9.4785 7,352,245.39
Ltd
Network Science and Cost Method 10,000,000.00 10,000,000.00 10,000,000.00 10 10 10,000,000.00
Technology Investment Co.
China (Hainan) Reform and Cost Method 8,640,000. 00 8,640,000.00 -8,640,000.00 0.00 0.00
Development Institute
Hainan Tongsheng Ports Co. Cost Method 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00
Hainan Nanyang Shipping Cost Method 1,680,000.00 1,680,000.00 1,680,000.00 1,680,000. 00
Industrial Company Limited
Nan Li Lake membership card Cost Method 662,400.00 662,400.00 662,400.00 662,400.00
Hainan Pearl River Cost Method 618,500.00 426,315.00 426,315.00 1.33 1.33
Guanzhuang Co., Ltd
Hainan Chamber of Cost Method 500,000.00 500,000.00 500,000.00 6.67 6.67 500,000.00
Commerce
Nan Li Lake Golf Membership Cost Method 249,000.00 249,000.00 249,000.00 249,000.00
Card
Hainan Huadi Pearl River
Foundation Engineering Co., Cost Method 160,000.00 160,000.00 160,000.00 2 2
Ltd.
Beijing Sunshine Tiansheng Equity
Property Management Co., 1,500,000.00 1,626,145.96 1,626,145.96 30 30
Method
Ltd.
Shanghai Sea Pearl Property Equity 832,000.00 507,576.33 507,576.33 50 50 332,092.00
Management Corporation Method
Initial Percentage of Current
Name Accounting Beginning Increase or Ending Percentage of vote right Impairment loss
Method investment Balance decrease Balance equity interest （% ） provision impairment
Cost （% ） loss
Total 69,019,140.29 87,091,376.98 -9,044,815.92 78,046,561.06 26,775,737.39
１０． Ｉｎｖｅｓｔｍｅｎｔ ｒｅａｌ ｅｓｔａｔｅｓ
Items 1 Jan 2011 Increment Decrement 30 Jun 2011
I. Original value 26,260,649.34 107,354.26 26,153,295.08
Buildings and structures 26,260,649.34 107,354.26 26,153,295.08
II. Accumulated depreciation and amortization 3,382,602.54 441,669.87 17,701.05 3,806,571.36
Buildings and structures 3,382,602.54 441,669.87 17,701.05 3,806,571.36
III. Impairment provision 2,979,083.88 2,979,083.88
Buildings and structures 2,979,083.88 2,979,083.88
IV. Book value 19,898,962.92 19,367,639.84
Buildings and structures 19,898,962.92 19,367,639.84
Ｎｏｔｅ １． Ｔｈｅ ｄｅｐｒｅｃｉａｔｉｏｎ ｏｆ ｔｈｉｓ ｐｅｒｉｏｄ ｗａｓ ４４１，６６９．８７ Ｙｕａｎ．
１１． Ｆｉｘｅｄ ａｓｓｅｔｓ
Items 1 Jan 2011 Increment Decrement 30 Jun 2011
I. Original value 429,260,518.47 3,086,109.86 389,325.00 431,957,303.33
Buildings and structures 308,735,748.34 308,735,748.34
Vehicles 23,450,238.72 1,885,869.10 378,300.00 24,957,807.82
General equipments 51,896,771.37 9,300.00 670.00 51,905,401.37
Special equipment 4,303,239.00 662,023.76 4,965,262.76
Other equipments 40,874,521.04 528,917.00 10,355.00 41,393,083.04
II. Accumulated depreciation 87,248,698.01 12,855,053.81 367,035.79 99,736,716.03
Buildings and structures 33,198,688.03 5,706,366.28 38,905,054.31
Vehicles 8,837,380.09 1,682,249.29 359,385.00 10,160,244.38
General equipments 23,081,678.67 1,763,222.81 60.00 24,844,841.48
Special equipment 339,608.22 452,808.63 792,416.85
Other equipments 21,791,343.00 3,250,406.80 7,590.79 25,034,159.01
III. Impairment provision 7,499,295.92 7,499,295.92
Buildings and structures 7,499,295.92 7,499,295.92
Vehicles
General equipments
Special equipment
Other equipments
IV. Book value 334,512,524.54 324,721,291.38
Buildings and structures 268,037,764.39 262,331,398.11
Vehicles 14,612,858.63 14,797,563.44
Items 1 Jan 2011 Increment Decrement 30 Jun 2011
General equipments 28,815,092.70 27,060,559.89
Special equipment 3,963,630.78 4,172,845.91
Other equipments 19,083,178.04 16,358,924.03
Ｎｏｔｅ １． Ｔｈｅ ｄｅｐｒｅｃｉａｔｉｏｎ ｃｏｓｔ ｏｆ ｔｈｉｓ ｐｅｒｉｏｄ ｗａｓ １２，８５５，０５３．８１ Ｙｕａｎ．
２． Ｔｈｅ ｂｕｉｌｄｉｎｇ ｆｏｒ ｍｏｒｔｇａｇｅ ｌｏａｎ ｗａｓ ｅｘｐｌａｉｎｅｄ “Ｎｏｔｅ Ｖ．１８”．
１２． Ｃｏｎｓｔｒｕｃｔｉｏｎ ｉｎ ｐｒｏｇｒｅｓｓ
30 Jun 2011 1 Jan 2011
Project name Impairment Impairment
Ending Balance Book value Ending Balance Book value
loss provision loss provision
Lake Hotel 5,064,500.00 5,064,500.00 4,732,000.00 4,732,000.00
Expansion project of
96,000.00 96,000.00
Xuxiang
Forest Park area projects 250,000.00 250,000.00
Total 5,410,500.00 5,410,500.00 4,732,000.00 4,732,000.00
１３． Ｅｎｇｉｎｅｅｒｉｎｇ Ｍａｔｅｒｉａｌｓ
Items 1 Jan 2011 Increment Decrement 30 Jun 2011
Special equipment 606,206.60 606,206.60
Total 606,206.60 606,206.60
１４． Ｉｎｔａｎｇｉｂｌｅ ａｓｓｅｔｓ
Items 1 Jan 2011 Increment Decrement 30 Jun 2011
I. Original value 37,401,642.93 35,000.00 37,436,642.93
Land use right of Sanya hotel 30,342,484.00 30,342,484.00
Sanya villa land 1,839,022.44 1,839,022.44
Wuhan club land 1,443,725.13 1,443,725.13
Shanghai house use right 695,732.00 695,732.00
Land use right of Xuxiang hotel 1,214,322.08 1,214,322.08
Software 1,386,357.28 35,000.00 1,421,357.28
Others 480,000.00 480,000.00
II.Accumulative amortization 3,908,658.59 564,908.92 4,473,567.51
Land use right of Sanya hotel 3,075,260.48 394,224.96 3,469,485.44
Sanya villa land 190,654.56 23,831.82 214,486.38
Wuhan club land 73,432.55 10,312.32 83,744.87
Shanghai house use right 244,317.46 6,957.32 251,274.78
Land use right of Xuxiang hotel 28,685.07 15,524.58 44,209.65
Software 272,393.83 103,808.78 376,202.61
Others 23,914.64 10,249.14 34,163.78
III. Total impairment loss provision
IV. Carrying amount 33,492,984.34 32,963,075.42
Land use right of Sanya hotel 27,267,223.52 26,872,998.56
Sanya villa land 1,648,367.88 1,624,536.06
Wuhan club land 1,370,292.58 1,359,980.26
Shanghai house use right 451,414.54 444,457.22
Land use right of Xuxiang hotel 1,185,637.01 1,170,112.43
Software 1,113,963.45 1,045,154.67
Others 456,085.36 445, 836.22
Ｎｏｔｅ １． Ｔｈｅ ａｍｏｒｔｉｚａｔｉｏｎ ｏｆ ｔｈｉｓ ｙｅａｒ ｗａｓ ５６４，９０８．９２ Ｙｕａｎ．
２． Ｔｈｅ ｂｕｉｌｄｉｎｇ ｆｏｒ ｍｏｒｔｇａｇｅ ｌｏａｎ ｗａｓ ｅｘｐｌａｉｎｅｄ “Ｎｏｔｅ Ｖ．１８”．
１５． Ｌｏｎｇ－ｔｅｒｍ ｐｒｅｐａｙｍｅｎｔｓ
Other
Items 1 Jan 2011 Increment Amortization decrements 30 Jun 2011
Decoration 3,621,862.30 301,063.92 3,621,862.30
Ski rental fee 5,700,000.00 450,000.00 5,700,000.00
Technical service fee 653,333.33 70,002.00 653,333.33
Total 9,975,195.63 821,065.92 9,975,195.63
１６． Ｄｅｆｅｒｒｅｄ ｉｎｃｏｍｅ ｔａｘ ａｓｓｅｔ ａｎｄ ｄｅｆｅｒｒｅｄ ｉｎｃｏｍｅ ｔａｘ ｌｉａｂｉｌｉｔｙ
（１） Ｉｄｅｎｔｉｆｉｅｄ ｄｅｆｅｒｒｅｄ ｉｎｃｏｍｅ ｔａｘ ｌｉａｂｉｌｉｔｙ
Items 30 Jun 2011 1 Jan 2011
Deferred income tax liability ：
Changes on the fair value of available for sales financial
75,228,125.00 73,233,125.00
assets credited to capital reserves
Difference between fair value and the book value of net
1,052,013.80 1,052,013.80
assets of purchased unit as business combination
Total 76,280,138.80 74,285,138.80
（２） Ｕｎｒｅｃｏｇｎｉｚｅｄ ｄｅｆｅｒｒｅｄ ｉｎｃｏｍｅ ｔａｘ ａｓｓｅｔ
Items 30 Jun 2011 1 Jan 2011
Deductible temporary differences 115,707,664.48 129,810,082.22
Total 115,707,664.48 129,810,082.22
１７． Ａｓｓｅｔｓ ｉｍｐａｉｒｍｅｎｔ ｐｒｏｖｉｓｉｏｎ
Decrement
Items 1 Jan 2011 Increment 30 Jun 2011
Other
Transfer back Write off
Decrement
Bad debt provision 55,673,384.26 169,332.30 55,842,716.56
Inventories impairment provision 22,610,830.73 22,610,830.73
long-term equity investment impairment provision 35,415,737.39 8,640,000.00 26,775,737.39
Investment property impairment provision 2,979,083.88 2,979,083.88
Fixed assets impairment provision 7,499,295.92 7,499,295.92
Total 124,178,332. 18 169,332.30 8,640,000.00 115,707,664.48
Ｎｏｔｅ： Ｔｈｅ ａｍｏｕｎｔ ｏｆ ８，６４０，０００．００ Ｙｕａｎ ｏｆ ｗｒｉｔｅ ｏｆｆ ｗａｓ ｉｎｃｕｒｒｅｄ ｂｅｃａｕｓｅ ｔｈｅ ｅｑｕｉｔｙ ｏｆ Ｃｈｉｎａ （Ｈａｉｎａｎ）
Ｒｅｆｏｒｍ ａｎｄ Ｄｅｖｅｌｏｐｍｅｎｔ Ｉｎｓｔｉｔｕｔｅ ｗａｓ ｄｏｎａｔｅｄ ｔｏ Ｈａｉｎａｎ Ｒｅｆｏｒｍ ａｎｄ Ｄｅｖｅｌｏｐｍｅｎｔ Ｉｎｓｔｉｔｕｔｅ Ｆｕｎｄ．
１８． Ａｓｓｅｔｓ ｗｉｔｈ ｒｅｓｔｒｉｃｔｅｄ ｏｗｎｅｒｓｈｉｐ
Items Assets name Amount Remark
1.Fixed assets
Main Building of Days Hotel & It has been mortgaged to the Bank of China Hainan Yeshumeng branch for
Buildings and structures 169,134,137.83
Suites Sanya Resort loan 110 million Yuan (Contract No.G004-1).
It has been mortgaged to the Bank of China Hainan Yeshumeng branch for
Buildings and structures Hotel Villa A, B & C 8,882,589.81
loan 110 million Yuan (Contract No.G004-1).
2.Intangible assets
Main Building of Days Hotel & It has been mortgaged to the Bank of China Hainan Yeshumeng branch for
Land use rights 26,872,998.56
Suites Sanya Resort loan 110 million Yuan (Contract No.G004-2).
It has been mortgaged to the Bank of China Hainan Yeshumeng branch for
Land use rights Hotel Villa A, B & C 1,624,536.06
loan 110 million Yuan (Contract No.G004-2).
3. Pledged assets
Available for sales 3.325 millions Shares of It has been mortgaged to Jilin Province Trust Co., Ltd. for the loan of 260
394,677,500.00
financial assets Southwest Security million Yuan (Contract No. JLXT2009A018).
Total 601,191,762.26
Ｎｏｔｅ： Ａｓｓｅｔｓ ｗｉｔｈ ｒｅｓｔｒｉｃｔｅｄ ｏｗｎｅｒｓｈｉｐ ａｒｅ ｍａｉｎｌｙ ｕｓｅｄ ｆｏｒ ｇｕａｒａｎｔｅｅ ｏｆ ｂａｎｋ ｌｏａｎｓ．
１９． Ａｃｃｏｕｎｔｓ ｐａｙａｂｌｅ
Jun 30, 2011 Jan 1, 2011
Ages
Ending Balance Percentage (%) Opening Balance Percentage (% )
Within 1 year 15,624,075.00 65.93 28,663,036.89 76.25
1 to 2 years 1,497,366.65 6.32 1,765,033.41 4.70
2 to 3 years 914,631.33 3.86 1,078,078.90 2.87
3 years and more 5,661,209.23 23.89 6,082,666.27 16.18
Total 23,697,282.21 100.00 37,588,815.47 100
Ｎｏｔｅ １． Ｔｈｅ ｅｎｄ ｏｆ ｔｈｉｓ ｒｅｐｏｒｔｉｎｇ ｐｅｒｉｏｄ ｄｉｄ ｎｏｔ ｃｏｎｔａｉｎ ｄｅｂｔ ｏｗｎｅｄ ｂｙ ａｎｙ ｍａｊｏｒ ｓｈａｒｅｈｏｌｄｅｒｓ ｗｈｏ ｏｗｎ
ｍｏｒｅ ｔｈａｎ ５％ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ’ｓ ｓｈａｒｅ ｃａｐｉｔａｌ．
２０． Ａｃｃｏｕｎｔｓ ｒｅｃｅｉｖｅｄ ｉｎ ａｄｖａｎｃｅ
Jun 30, 2011 Jan 1, 2011
Ages
Ending Balance Percentage (%) Opening Balance Percentage (%)
Jun 30, 2011 Jan 1, 2011
Ages
Ending Balance Percentage (%) Opening Balance Percentage (%)
Within 1 year 21,722,018.23 97.24 38,964,535.66 99.57
1 to 2 years 616,206.06 2.76 169,612.19 0.43
Total 22,338,224.29 100.00 39,134,147.85 100.00
Ｎｏｔｅ １． Ｔｈｅ ｅｎｄ ｏｆ ｔｈｉｓ ｒｅｐｏｒｔｉｎｇ ｐｅｒｉｏｄ ｄｉｄ ｎｏｔ ｃｏｎｔａｉｎ ｄｅｂｔ ｏｗｎｅｄ ｂｙ ａｎｙ ｍａｊｏｒ ｓｈａｒｅｈｏｌｄｅｒｓ ｗｈｏ ｏｗｎ
ｍｏｒｅ ｔｈａｎ ５％ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ’ｓ ｓｈａｒｅ ｃａｐｉｔａｌ．
２１． Ａｃｃｒｕｅｄ ｐａｙｒｏｌｌ
Items Jan 1, 2011 Increment Decrement 30 Jun 2011
I. Salary, bonus, allowance 1,887,388.77 33,292,146.48 34,110,757.21 1,068,778.04
II. Employee Welfare expenses 3,233,730.58 3,564,518.84 -330,788.26
III. Social insurance 4,218,428.77 4,218,428.44 0.33
Where:1)Medical insurance 1,062,469.09 1,062,468.76 0.33
2) Endowment insurance 2,695,745.77 2,695,745.77
3) annuity
4) Unemployment insurance 297,124.43 297,124.43
5) Working accident insurance 89,640.86 89,640.86
6) Maternity insurance 73,448.62 73,448.62
IV. Housing accumulation fund 415,804.54 410,458.38 5,346.16
V. Labor union fees& Employee education fees 3,744,361.27 952,836.05 332,560.21 4,364,637.11
VI. Non-monetary welfares
VII. Compensation for dismissal
Total 5,631,750.04 42,112,946.42 42,636,723.08 5,107,973.38
22. Taxes payable
Items 30 Jun 2011 Jan 1, 2011
VAT -76,401.01 -65,250.17
Individual income tax 34,137.44 74,437.72
City construction and maintenance tax 32,228.77 306,150.47
Corporate income tax 2,053,959.46 9,629,357.45
Property tax 606,731.12 541,569.17
Business tax -100,330.34 3,914,681.53
Land use tax 79,762.62 79,762.62
Education fee -191,447.76 8,332.07
Local education fee 30,025.72 -35,354.66
Land value-added tax 6,987,739.47 16,157,890.06
Others 79,336.23 198,396.40
Items 30 Jun 2011 Jan 1, 2011
Total 9,535,741.72 30,809,972.66
２３． Ｉｎｔｅｒｅｓｔ ｐａｙａｂｌｅ
Item 30 Jun 2011 Jan 1, 2011
Loan interest 95,081,923.39 85,390,223.02
Total 95,081,923.39 85,390,223.02
２４． Ｄｉｖｉｄｅｎｄ ｐａｙａｂｌｅ
Investor 30 Jun 2011 Jan 1, 2011
Dividend payable of institutional shares 3,213,302.88 3,213,302.88
Total 3,213,302.88 3,213,302.88
２５． Ｏｔｈｅｒ ｐａｙａｂｌｅｓ
Jun 30, 2011 Jan 1, 2011
Age
Ending Balance Percentage (%) Opening Balance Percentage (%)
Within 1 year 86,181,648.23 24.83 63,750,161.16 19.36
1 to 2 years 168,182,651.34 48.46 167,828,134.16 50.96
2 to 3 years 11,253,545.17 3.23 12,889,507.69 3.91
3 years and more 81,504,175.90 23.48 84,848,423.88 25.77
Total 347,122,020.64 100.00 329,316,226.89 100.00
Ｎｏｔｅ １： Ａｍｏｎｇ ｔｈｅ ｂａｌａｎｃｅ ｏｆ ｔｈｅ ｐｅｒｉｏｄ ｅｎｄ， ｔｈｅｒｅ ａｒｅ ｎｏ ｌｏａｎｓ ｏｆ ｓｈａｒｅｈｏｌｄｅｒｓ ｈｏｌｄｉｎｇ ｏｖｅｒ ５％ ｏｆ ｔｈｅ
Ｃｏｍｐａｎｙ’ｓ ｅｑｕｉｔｙ （ｉｎｃｌｕｄｉｎｇ ５％）． Ｄｅｔａｉｌｓ ｒｅｆｅｒ ｔｏ “Ｎｏｔｅｓ ＶＩ． Ｒｅｌａｔｅｄ ｐａｒｔｙ ｒｅｌａｔｉｏｎｓｈｉｐ ａｎｄ ｔｒａｎｓａｃｔｉｏｎｓ”．
２： Ｏｔｈｅｒ ｐａｙａｂｌｅｓ ｏｖｅｒ ３ ｙｅａｒｓ ａｒｅ ｍａｉｎｌｙ ｃａｕｓｅｄ ｂｙ ｔｈｅ ｌｏａｎ ｆｒｏｍ ｔｈｅ ｓｈａｒｅｈｏｌｄｅｒｓ． Ｄｅｔａｉｌｓ ｒｅｆｅｒ ｔｏ
“Ｎｏｔｅｓ ＶＩ． Ｒｅｌａｔｅｄ ｐａｒｔｙ ｒｅｌａｔｉｏｎｓｈｉｐ ａｎｄ ｔｒａｎｓａｃｔｉｏｎｓ”．
２６． Ｌｏｎｇ－ｔｅｒｍ ｂｏｒｒｏｗｉｎｇｓ
（１） Ｌｏｎｇ－ｔｅｒｍ ｂｏｒｒｏｗｉｎｇｓ ｌｉｓｔｅｄ ｂｙ ｃａｔｅｇｏｒｉｅｓ
Category 30 Jun 2011 1 Jan 2011
Pledge loans 220,000,000.00 220,000,000.00
Mortgage loans 105,000,000.00 105,000,000.00
Total 325,000,000.00 325,000,000.00
２７． Ｓｈａｒｅ ｃａｐｉｔａｌ
Unit: share
Items 1 Jan 2011 Increment or decrement (+,-) 30 Jun 2011
issued Bonus Surplus
new others subtotal
issue converted
shares
1. Unlisted shares 1,325,131.00 1,325,131.00
State owned shares
Other domestic
1,325,131.00 1,325,131.00
shares
Including:Domestic
1,299,500.00 1,299,500.00
corporate shares
Domestic natural
25,631.00 25,631.00
person shares
2.Listed shares 425,420,273.00 425,420,273.00
A shares 360,445,273.00 360,445,273.00
B shares 64,975,000.00 64,975,000.00
3. Total shares 426,745,404.00 426,745,404.00
２８． Ｃａｐｉｔａｌ ｓｕｒｐｌｕｓ
Items 1 Jan 2011 Increment Decrement 30 Jun 2011
Capital reserve spill price 224,960,139.16 224,960,139.16
Others capital surplus 380,304,016.81 5,985,000.00 386,289,016.81
Including: Old capital surplus
109,300,017.82 109,300,017.82
converted into
Changes on fair value of available for
344,237,123.99 7,980,000.00 352,217,123.99
sales financial assets
Income tax effects -73,233,125.00 -1,995,000.00 -75,228,125.00
Total 605,264,155.97 5,985,000.00 611,249,155.97
２９． Ｓｕｒｐｌｕｓ ｒｅｓｅｒｖｅｓ
Items 30 Jun 2011 1 Jan 2011
statutory surplus reserve 76,542,657.95 76,542,657.95
General surplus reserve 37,634,827.93 37,634,827.93
Total 114,177,485.88 114,177,485.88
３０． Ｕｎｄｉｓｔｒｉｂｕｔｅｄ ｐｒｏｆｉｔｓ
Items Amounts allocation proportion
Non-adjusted ending balance of the year 2010 -648,891,640.41
Adjusted opening balance of the year 2011 -648,891,640.41
Add: Net profit attributed to the owners of the parent
-15,041,866.11
company
Less：Statutory surplus reserve
Random surplus reserve
Common risk provision
Items Amounts allocation proportion
Dividend payable of Ordinary shares
Share capital converted from dividend of ordinary shares
Undistributed profit at the end of period -663,933,506.52
３１． Ｏｐｅｒａｔｉｎｇ ｉｎｃｏｍｅ ａｎｄ ｏｐｅｒａｔｉｎｇ ｃｏｓｔｓ
（１） Ｏｐｅｒａｔｉｎｇ ｉｎｃｏｍｅ
Items Jan.–Jun, 2011 Year 2010
Main operating business income 143,171,323.23 543,211,038.95
Other operating business income 1,121,450.50 825,533.20
Total 144,292,773.73 544,036,572.15
（２） Ｏｐｅｒａｔｉｎｇ ｃｏｓｔｓ
Items Jan.–Jun, 2011 Year 2010
Main operating business costs 85,952,467.39 366,171,025.51
Other operating business costs 564,858.90 495,785.82
Total 86,517,326.29 366,666,811.33
（３） Ｔｈｅ ｄｅｔａｉｌｓ ｏｆ ｍａｉｎ ｏｐｅｒａｔｉｎｇ ｂｕｓｉｎｅｓｓｅｓ ｗｅｒｅ ａｓ ｆｏｌｌｏｗｓ ａｃｃｏｒｄｉｎｇ ｔｏ ｐｒｏｄｕｃｔｓ：
Jan.–Jun, 2011 Year 2010
Items Main operating Main operating Main operating Main operating
business income business costs business income business costs
Real estate sales 68,096,461.00 31,912,697.53 489,083,485.00 327,406,426.69
Property
management
services 47,653,910.37 42,568,319.24 34,632,653.97 29,919,876.36
Tourist hotel services 27,420,951.86 11,471,450.62 19,494,899.98 8,844,722.46
（４） Ｔｈｅ ｄｅｔａｉｌｓ ｏｆ ｍａｉｎ ｏｐｅｒａｔｉｎｇ ｂｕｓｉｎｅｓｓｅｓ ｗｅｒｅ ａｓ ｆｏｌｌｏｗｓ ａｃｃｏｒｄｉｎｇ ｔｏ ｒｅｇｉｏｎｓ：
Jan.–Jun, 2011 Year 2010
Location Main operating Main operating Main operating Main operating
business income business costs business income business costs
Hainan 68,392,893.88 51,771,444.51 135,353,262.55 80,500,200.35
Hubei 68,574,907.40 32,218,287.12 407,857,776.40 285,670,825.16
Mudanjiang 6,148,280.45 1,962,735.76
Beijing 55,241.50
３２． Ｏｐｅｒａｔｉｎｇ ｔａｘｅｓ ａｎｄ ｅｘｔｒａｓ
Jan.–Jun, 2011 Year 2010
Items
City construction and maintenance tax 505,024.71 1,904,128.00
Education fee 216,439.16 816,054.86
Business tax 7,214,638.69 27,201,828.61
Land value-added tax 7,987,739.47 32,570,104.29
Others 1,199,456.18 1,312,500.42
Total 17,123,298.21 63,804,616.18
３３． Ｏｐｅｒａｔｉｎｇ ｅｘｐｅｎｓｅｓ
Items Jan.–Jun, 2011 Year 2010
Payroll expense 240,853.40 212,019.16
Consignment commission charge 1,538,959.00 2,077,646.00
Operation expenses 48,131.28 110,115.51
Advertising fees 1,076,986.47 3,071,352.34
other selling expenses 688,663.97 1,113,738.52
合 计 3,593,594.12 6,584,871.53
３４． Ｇｅｎｅｒａｌ ａｎｄ ａｄｍｉｎｉｓｔｒａｔｉｖｅ ｅｘｐｅｎｓｅｓ
Items Jan.–Jun, 2011 Year 2010
Payroll expense 7,984,473.37 5,621,157.73
Office allowance 549,665.37 469,007.79
Travelling expense 1,620,508.53 1,378,627.30
Vehicle expenses 1,042,472.53 605,238.86
Depreciation expense 12,828,475.31 9,416,548.98
Business entertainment 4,066,233.01 3,115,051.66
Repair charge 647,431.36 588,923.88
Audit consulting fees 809,000.00 609,000.00
Lawyer fee 206,000.00 310,500.00
Employee benefits 1,137,433.87 860,514.67
Housing property tax 1,146,025.24 953,352.85
Consult fees 716,198.00 1,863,000.00
Amortization of intangible
assets 557,951.60 474,585.98
Property management fee and 489,198.50 307,797.17
utilities
Other expenses 5,920,368.54 3,279,455.17
Total 39,721,435.23 29,852,762.04
３５． Ｆｉｎａｎｃｉａｌ ｅｘｐｅｎｓｅｓ
Items Jan.–Jun, 2011 Year 2010
Interest exchange 30,895,882.28 21,393,528.03
Less:interest revenue 25,366,137.33 9,271,078.97
Foreign exchange loss
Less:exchange gain
Charge for trouble 226,094.41 575,811.91
Others
Total 5,755,839.36 12,698,260.97
３６．Ｉｎｖｅｓｔｍｅｎｔ ｉｎｃｏｍｅ
Items Jan.–Jun, 2011 Year 2010
Long-term equity investment income accounted by Costs
Method
Long-term equity investment income accounted by Equity
-404,815.92 64,864.56
Method
Investment income of disposal Long-term equity investment
Others
Total -404,815.92 64,864.56
３５． Ｉｍｐａｉｒｍｅｎｔ Ｌｏｓｓ ｏｆ Ａｓｓｅｔｓ
Items Jan.–Jun, 2011 Year 2010
Bad debts impairment loss 169,332.30 2,485,100.77
Inventories impairment loss -7,200,000.00
Total 169,332.30 -4,714,899.23
３６． Ｎｏｎ－ｏｐｅｒａｔｉｎｇ ｉｎｃｏｍｅ
（１） Ｄｅｔａｉｌｓ ｏｆ ｎｏｎ－ｏｐｅｒａｔｉｎｇ ｉｎｃｏｍｅ
Items Jan.–Jun, 2011 Year 2010
Gain on disposal of non-current assets 790.00 1,710,013.72
Gains on debt restructure
Others 429,596.00
Total 430,386.00 1,710,013.72
３７． Ｎｏｎ－ｏｐｅｒａｔｉｎｇ ｅｘｐｅｎｓｅｓ
Jan.–Jun, 2011 Year 2010
Items
15,200.25 32,373.03
Loss on disposal of fixed assets
Donation
22,327.09 52,257.59
Penalty payout
50,000.00
Indemnity for breaking a contract
30,143.18 28,900.00
Others
Total 67,670.52 113,530.62
３８． Ｉｎｃｏｍｅ ｔａｘ
Jan.–Jun, 2011 Year 2010
Items
5,433,288.59 12,880,565.60
Income tax this year
Deferred income tax
Total 5,433,288.59 12,880,565.60
３９． Ｉｎｆｏｒｍａｔｉｏｎ ｏｆ ｃａｓｈ ｆｌｏｗ ｓｔａｔｅｍｅｎｔ
（１） Ｃａｓｈ ｒｅｃｅｉｖｅｄ ｒｅｌａｔｉｎｇ ｔｏ ｏｔｈｅｒ ｏｐｅｒａｔｉｎｇ ａｃｔｉｖｉｔｉｅｓ
Jan.–Jun, 2011 Year 2010
Items
8,127,655.00 5,658,235.50
Water fitting deposit received,certificate permit fees and transfer tax
36,000,000.00
Project refunds received from Yanhai Yi Lu
6,052,453.87 556,800.00
Other transaction funds
2,957,305.80 2,265,699.45
Others
17,137,414.67 44,480,734.95
Total
（２） Ｃａｓｈ ｐａｉｄ ｒｅｌａｔｉｎｇ ｔｏ ｏｔｈｅｒ ｏｐｅｒａｔｉｎｇ ａｃｔｉｖｉｔｉｅｓ
Jan.–Jun, 2011 Year 2010
Items
Ｍｕｄａｎｊｉａｎｇ Ｊｉｎｇｂｏｈｕ Ｔｒａｖｅｌ Ｇｒｏｕｐ
4,000,000.00
Ｃｏ．， Ｌｔｄ
Other transaction funds 17,326,696.00 3,806,878.04
Return Water fitting deposit received
9,355,414.42 4,425,623.80
and certificate permit fees
Jan.–Jun, 2011 Year 2010
Items
Audit consulting fees 809,000.00 556,000.00
Advertising expenses 1,076,986.47 2,768,622.00
Agent and lawyer fee 1,744,959.00 3,927,646.00
Other management fees 9,893,717.76 5,409,286.83
Total 40,206,773.65 24,894,056.67
（３）Ｃａｓｈ ｐａｉｄ ｒｅｌａｔｉｎｇ ｔｏ ｏｔｈｅｒ ｉｎｖｅｓｔｉｎｇ ａｃｔｉｖｉｔｉｅｓ
Jan.–Jun, 2011 Year 2010
Items
Expenses for financing activities 22,360,895.82
Total 22,360,895.82
（４） Ｃａｓｈ ｐａｉｄ ｒｅｌａｔｉｎｇ ｔｏ ｏｔｈｅｒ ｉｎｖｅｓｔｉｎｇ ａｃｔｉｖｉｔｉｅｓ
Jan.–Jun, 2011 Year 2010
Items
Ending balance of cash of year end 2009 of Sanya
15,401,893.30
Wanjia Property Holding Co., Ltd.
Total 15,401,893.30
４０．Ｓｕｐｐｌｅｍｅｎｔａｒｙ ｉｎｆｏｒｍａｔｉｏｎ ｏｆ ｃａｓｈ ｆｌｏｗ ｓｔａｔｅｍｅｎｔ
（１） Ｓｕｐｐｌｅｍｅｎｔａｒｙ ｉｎｆｏｒｍａｔｉｏｎ
Jan.–Jun,
Items Year 2010
2011
1．Reconciliation of net profit to cash flows from operating activities:
Net profit -14,063,440.81 57,924,931.39
Add: Provision for assets impairment 169,332.60
-18,641,531.66
Depreciation of fixed assets, production biological assets, petroleum and natural
13,279,022.62 9,862,180.86
gas
Amortization of intangible assets 564,908.92 481,543.30
Amortization of long-term prepayments 821,065.92 85,974.17
Losses on disposal of fixed assets, intangible assets and other long-term assets -35,675. 03 2,927,123.32
Losses on scrapping of fixed assets 6,040.33
Losses on fair value change
Financial expenses 9,531,455.61 13,063,109.39
Investment losses 404,815.92 -64,864.56
Decrease in deferred income tax assets
Increase in deferred income tax liabilities
Decrease in inventories 31,768,792.78 375,789,519.81
Jan.–Jun,
Items Year 2010
2011
Decrease in operating receivables -14,399,498.17 -9,161,204.93
Increase in operating payables -55,421,349.87 -289,621,996.40
Others
Net cash flows from operating activities -27,380,569.51 142,650,825.02
2．Significant investing and financing activities that non-cash receipts and payments
Conversion of debt into capital
Convertible bonds to be expired within one year
Fixed assets under finance lease
3．Net increase in cash and cash equivalents
Cash at the end of the period 71,686,794.91 238,917,598.63
Less: Cash at the beginning of the period 136,376,851.19 291,787,132.78
Add: Cash equivalents at the end of the period
Less: Cash equivalents at the beginning of the period
Net increase in cash and cash equivalents -64,690,056.28 -52,869,534.15
（２） Ｃａｓｈ ａｎｄ ｃａｓｈ ｅｑｕｉｖａｌｅｎｔｓ
Jan.–Jun, 2011 Year 2010
Items
1. Cash 71,686,794.91 238,917,598.63
Including: Cash on hand 889,579.96 193,980.73
Bank deposit paid at any time 70,779,219.00 238,697,000.71
Other monetary funds paid at any time 17,995.95 26,617.19
2. cash equivalents
3. Cash and cash equivalents at the end of year 71,686,794.91 238,917,598.63
ＶＩ． Ｒｅｌａｔｅｄ ｐａｒｔｙ ｒｅｌａｔｉｏｎｓｈｉｐ ａｎｄ ｔｒａｎｓａｃｔｉｏｎｓ
（１） Ｐａｒｅｎｔ ｃｏｍｐａｎｙ ａｎｄ ｕｌｔｉｍａｔｅ ｃｏｎｔｒｏｌｌｅｒ：
Registered Organization Principal Relationship with the Registered Holding Voting rights
Name address code operating Company capital proportion proportion
Beijing Wangfa Real Estate Real estate development The first largest 280 million
Beijing 60003715 -7 26.36% 26.36%
Development Holdings Co., Ltd and operation shareholder Yuan
Beijing Xinxing Real Estate Real estate development Controller of the first 10 million
Beijing 10113538 -5
Development Company and operation largest shareholder Yuan
（２） Ｉｎｆｏｒｍａｔｉｏｎ ａｂｏｕｔ ｓｕｂｓｉｄｉａｒｉｅｓ
Ｄｅｔａｉｌｓ ｒｅｆｅｒ ｔｏ “Ｎｏｔｅ ＩＶ． １． Ｓｕｂｓｉｄｉａｒｉｅｓ ｅｓｔａｂｌｉｓｈｅｄ ｂｙ ｔｈｅ Ｃｏｍｐａｎｙ”．
（３） Ｉｎｆｏｒｍａｔｉｏｎ ａｂｏｕｔ ｊｏｉｎｔ ｖｅｎｔｕｒｅ ａｎｄ ａｆｆｉｌｉａｔｅ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ
Registered Principal
Name Organization code address Registered capital Holding proportion Voting rights proportion
operating
Registered Principal
Name Organization code address Registered capital Holding proportion Voting rights proportion
operating
Shanghai Bright Pearl at Sea
Property Management 60732602 -3 Shanghai Property management service 1,660,000 50% 50%
Company
Beijing Yangguang Tiancheng Property Management Co., 77954738 -3 Beijing Property management service 5,000,000 30% 30%
Ltd
Sanya Wanjia Enterprises Holdin g Co., Ltd. 74775822 -3 Sanya Cultural and sports services 100,000,000.00 40% 40%
（４） Ｏｔｈｅｒ ｒｅｌａｔｅｄ ｐａｒｔｉｅｓ
Relationship with
Name Organization code
the Company
Beijing Yulong Jisheng Real Estate Development Co., Ltd. With same controller 72266773-9
Beijing Aipuzhi Intellectual Property Management Consulting Co., Ltd With same controller 681232201
Mudanjiang Wanjia Hotel Management Co., Ltd. With same controller 692634425
４． Ｂａｌａｎｃｅｓ ｏｆ ｒｅｌａｔｅｄ ｐａｒｔｙ ｒｅｃｅｉｖａｂｌｅ ａｎｄ ｐａｙａｂｌｅ
Items Company Name Jun 30, 2011 Jan 1, 2011
Others payable: Beijing Wangfa Real Estate Development Holdings Co., Ltd. 81,725,000.00 81,725,000.00
Beijing Xinxing Real Estate Development Company 152,540,447.00 152,540,447.00
Sanya Wanjia Enterprises Holding Co., Ltd. 1,544,987.47 1,656,997.47
Beijing Yulong Jisheng Real Estate Development Co., Ltd. 1,500,000.00 1,500,000.00
Mudanjiang Wanjia Hotel Management Co., Ltd. 157,206.10 173,045.00
Beijing Aipuzhi Intellectual Property Management Consulting Co., Ltd 10,731,064.00 8,875,730.67
Shanghai Haishang Mingzhu Property Management Co., Ltd. 1,000,000.00
Interest payable: Beijing Wangfa Real Estate Development Holdings Co., Ltd. 26,613,356.67 24,196,160.88
Beijing Xinxing Real Estate Development Company 47,731,567.85 42,995,971.20
ＶＩＩ． Ｃｏｎｔｉｎｇｅｎｔ ｅｖｅｎｔｓ
１． Ｍｏｒｔｇａｇｅ Ｌｏａｎ
Ｔｈｅ ｃｏｍｐａｎｙ＇ｓ ｆｉｘｅｄ ａｓｓｅｔｓ ｉｎ ｒｅａｌ ｅｓｔａｔｅ Ｓａｎｙａ Ｗａｎ Ｊｉａ Ｄａｉｓｉ ｈｏｔｅｌ ｍａｉｎ ｂｕｉｌｄｉｎｇ ａｎｄ ｈｏｔｅｌ
Ｓａｎｙａ Ｗａｎ Ｊｉａ Ｄａｉｓｉ Ａ Ｂｕｉｌｄｉｎｇ Ｂ Ｂｕｉｌｄｉｎｇ Ｃ ｖｉｌｌａｓ ｐｒｏｐｅｒｔｙ， ｔｈｅ ｂｏｏｋ ｖａｌｕｅ ｏｆ ２１６，１５４，３４３．０８
ｄｏｌｌａｒｓ ｔｏ ａｓｓｅｓｓ ｔｈｅ ｖａｌｕｅ ｏｆ ４４，０９９．５２ ｍｉｌｌｉｏｎ ｍｏｒｔｇａｇｅｄ ｔｏ ｔｈｅ Ｂａｎｋ ｏｆ Ｃｈｉｎａ Ｃｏ．， Ｌｔｄ． Ｈａｉｋｏｕ
ｐａｌｍ ｄｏｏｒ Ｂｒａｎｃｈ ｍａｄｅ １１０ ｍｉｌｌｉｏｎ Ｙｕａｎ ｌｏａｎ， ｔｈｅ ｒｅｐａｙｍｅｎｔ ｐｅｒｉｏｄ ｆｒｏｍ ２０１０ ｔｏ ２０１９ Ｙｅａｒ ｄｉｖｉｄｅｄ
ｆｏｒ １０ ｒｅｐａｙｍｅｎｔｓ． Ａｔ ｔｈｅ ｅｎｄ ｏｆ ｔｈｉｓ ｒｅｐｏｒｔｉｎｇ ｐｅｒｉｏｄ， ｔｈｅ ｂａｌａｎｃｅ ｏｆ ｌｏａｎｓ ｉｓ １０５ ｍｉｌｌｉｏｎ Ｙｕａｎ．
Ｔｈｅ Ｃｏｍｐａｎｙ ｈｅｌｄ ３，３２５ ｓｈａｒｅｓ ｏｆ Ｒｅｓｔｒｉｃｔｅｄ Ｓｈａｒｅｓ ｏｆ Ｓｏｕｔｈｗｅｓｔ Ｓｅｃｕｒｉｔｉｅｓ （ｓｔｏｃｋ ｃｏｄｅ： ＳＨ．６００３６９）
ｐｌｅｄｇｅ ｔｏ ｔｈｅ Ｊｉｌｉｎ Ｐｒｏｖｉｎｃｅ Ｔｒｕｓｔ Ｃｏ．， Ｌｔｄ．， ｔｏ ｏｂｔａｉｎ ｌｏａｎｓ ｆｏｒ ２２０ ｍｉｌｌｉｏｎ Ｙｕａｎ ｔｒｕｓｔ， ｔｒｕｓｔ
ｌｏａｎ ｔｅｒｍ ｏｆ １８ ｍｏｎｔｈｓ．
ＶＩＩＩ． Ｃｏｍｍｉｔｍｅｎｔｓ
Ｎｏｔ ａｐｐｌｉｃａｂｌｅ．
ＩＸ． Ｎｏｎ－ａｄｊｕｓｔｉｎｇ ｅｖｅｎｔｓ ａｆｔｅｒ ｔｈｅ ｂａｌａｎｃｅ ｓｈｅｅｔ ｄａｔｅ
Ｎｏｔ ａｐｐｌｉｃａｂｌｅ．
Ｘ． Ｏｔｈｅｒ ｉｍｐｏｒｔａｎｔ ｅｖｅｎｔｓ
Ｎｏｔ ａｐｐｌｉｃａｂｌｅ．
ＸＩ． Ｎｏｔｅｓ ｔｏ ｓｉｇｎｉｆｉｃａｎｔ ｉｔｅｍｓ ｏｆ ｔｈｅ ｐａｒｅｎｔ ｃｏｍｐａｎｙ’ｓ ｆｉｎａｎｃｉａｌ
ｓｔａｔｅｍｅｎｔｓ
１． Ａｃｃｏｕｎｔｓ ｒｅｃｅｉｖａｂｌｅ
（１） Ｄｅｔａｉｌｅｄ ｉｎｆｏｒｍａｔｉｏｎ
30 Jun 2011 1 Jan 2011
Items
Proportion Proportion
Balance Bad debts Bad debt ratio (%) Balance Bad debts Bad debt ratio (%)
(%) (%)
1 Individual with significant amount 7,761,707.60 69.51 7,761,707.60 100.00 7,761,707.60 69.30 7,761,707.60 100.00
2. Bad debt accounted by the combinations
Age Combinations 1,506,127.42 13.49 499,472.51 33.16 1,540,067.42 13.75 500,151.31 32.48
Combined Subtotal 1,506,127.42 13.49 499,472.51 33.16 1,540,067.42 13.75 500,151.31 32.48
3. Other unimportant receivables 1,898,690.60 17.00 1,898,690.60 100.00 1,898,690.60 16.95 1,898,690.60 100.00
Total 11,166,525.62 100.00 10,159,870.71 90.99 11,200,465.62 100.00 10,187,100.42 90.72
（２） Ａｇｅ ａｎａｌｙｓｉｓ
June 30, 2011 January 1, 2011
Age Bad Debts Bad Debts
Amounts Amounts
Provision Provision
Within 1 year 233,940.00 4,678.80 267,880.00 5,357.60
1 to 2 years 106,000.00 5,300.00 106,000.00 5,300.00
2 to 3 years 101,500.00 10,150.00 101,500.00 10,150.00
3 to 4 year
4 to 5 years 265,000.00 79,500.00 265,000.00 79,500.00
June 30, 2011 January 1, 2011
Age Bad Debts Bad Debts
Amounts Amounts
Provision Provision
5 years and more 799,687.42 399,843.71 799,687.42 399,843.71
Total 1,506,127.42 499,472.51 1,540,067.42 500,151.31
２． Ｏｔｈｅｒ ｒｅｃｅｉｖａｂｌｅｓ
（１） Ｄｅｔａｉｌｅｄ ｉｎｆｏｒｍａｔｉｏｎ
30 Jun 2011 1 Jan 2011
Items
Proportion Proportion
Balance Bad debts Bad debt ratio (%) Balance Bad debts Bad debt ratio (%)
(%) (%)
1. Individual with significant amount 54,482,525.99 12.70 14,982,000.57 27.50 55,482,525.99 16.47 14,982,000.57 27.00
2. Bad debt accounted by the combinations
Age Combinations 351,156,591.53 81.83 8,525,411.85 2.43 257,909,916.40 76.55 8,940,478.35 3.47
Combined Subtotal 351,156,591.53 81.83 8,525,411.85 2.43 257,909,916.40 76.55 8,940,478.35 3.47
3. Other unimportant receivables 23,459,217.36 5.47 23,459,217.36 100.00 23,503,529.06 6.98 23,503,529.06 100.00
Total 429,098,334.88 100.00 46,966,629.78 10.95 336,895,971.45 100.00 47,426,007.98 14.08
（２） Ａｇｉｎｇ ａｎａｌｙｓｉｓ
June 30, 2011 January 1, 2011
Age Amounts Amounts
Bad Debt Bad Debt
Ratio Provision Ratio Provision
Amounts Amounts
(%) (%)
Within 1 year 347,943,102.53 99.08 3,573,928.55 178,696,427.40 69.28 3,573,928.55
1 to 2 years 3,800,000.00 76,000,000.00 29.47 3,800,000.00
2 to 3 y ears
3 to 4 year 649.00 129.80 649.00 0.00 129.80
4 to 5 years 200,000.00 0.06 60,000.00 200,000.00 0.08 60,000.00
5 years and
3,012,840.00 0.86 1,506,420.00 3,012,840.00 1.17 1,506,420.00
more
Total 257,909,916.40 100.00 8,940,478.35 257,909,916.40 100.00 8,940,478.35
３． Ｌｏｎｇ－ｔｅｒｍ ｅｑｕｉｔｙ ｉｎｖｅｓｔｍｅｎｔ
Initial Percentage of
Name Accounting Beginning Increase or Ending Percentage of equity vote right Impairment loss
Method investment Balance decrease Balance interest（% ） provision
Cost （% ）
Hainan Pearl River Property & Hotel Cost Method 4,900,000.00 4,900,000.00 4,900,000.00 98 98
Management Co., Ltd.
Sanya Wanjia Hotel Management Equity Met hod 120,000,000.00 120,000,000.00 120,000,000.00 100 100
Co., Ltd.
Sanya Wanjia Enterprises Holding Cost Method 20,000,000.00 38,462,699.40 -404,815.92 38,057,883.48 40 40
Co., Ltd.
Hubei Pearl River Real Estate
Development Co., Ltd.
Cost Method 57,200,000.00 57,200,000.00 57,200,000.00 88 88
Hainan Pearl River
Cost Method 40,000,000.00 40,000,000.00 40,000,000.00 100 100 40,000,000.00
Enterprises Holding Co.,
Initial Percentage of
Name Accounting Beginning Increase or Ending Percentage of equity vote right Impairment loss
Method investment Balance decrease Balance interest（% ） provision
Cost （% ）
Ltd. Shanghai Real Estate Co.
Beijing Jiubo Culture Development Cost Method 5,000,000. 00 5,000,000.00 5,000,000.00 100 100
Co., Ltd.
Mudanjiang Pearl River Hotel Cost Method 20,000,000.00 60,000,000.00 60,000,000.00 100 100
Management Co., Ltd.
Guangzhou Pearl River Investment Cost Method 18,177,240.29 18,177,240.29 18,177,240.29 9.48 9.48 7,352,245.39
Management Co., Ltd.
Network Science and Technology Cost Method 10,000,000.00 10,000,000.00 10,000,000.00 10 10 10,000,000.00
Investment Co.
China (Hainan) Reform and Cost Method 8,640,000.00 8,640,000.00 -8,640,000.00 0.00
Development Institute
Hainan Tongsheng Ports Co. Cost Method 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00
Hainan Nanyang Shipping Industrial Cost Method 1,680,000.00 1,680,000.00 1,680,000.00 1,680,000.0
Company Limited
Nan Li Lake membership card Cost Method 662,400.00 662,400.00 662,400.00 662,400.00
Hainan Pearl River Guanzhuang Co., Cost Method 618,500.00 426,315.00 426,315.00 1.33 1.33
Ltd
Hainan Chamber of Commerce Cost Method 500,000.00 500,000.00 500,000.00 500,000.00
Hainan Huadi Pearl River Foundation Cost Method 160,000.00 160,000.00 160,000.00 2 2
Engineering Co., Ltd.
Hebei Zhengshi Qinghui Real
Cost Method 5,100,000.00 5,100,000.00 5,100,000.00 51 51
Estate Development Co., Ltd.
Total 318,638,140.29 376,908,654.69 -9,044,815. 92 367,863,838.77 66,194,645.39
４． Ｏｐｅｒａｔｉｎｇ ｉｎｃｏｍｅ ａｎｄ ｏｐｅｒａｔｉｎｇ ｃｏｓｔｓ
（１） Ｏｐｅｒａｔｉｎｇ ｉｎｃｏｍｅ
Items Jan.–Jun, 2011 Year 2010
Main operating business income 81,780,389.00
Other operating business income 193,340.00 150,254.20
Total 193,340.00 81,930,643.20
（２） Ｏｐｅｒａｔｉｎｇ ｃｏｓｔｓ
Items Jan.–Jun, 2011 Year 2010
Main operating business costs 42,124,483.34
Other operating business costs 26,578.50 46,478.74
Total 26,578.50 42,170,962.08
（３） Ｔｈｅ ｄｅｔａｉｌｓ ｏｆ ｍａｉｎ ｏｐｅｒａｔｉｎｇ ｂｕｓｉｎｅｓｓｅｓ ｗｅｒｅ ａｓ ｆｏｌｌｏｗｓ ａｃｃｏｒｄｉｎｇ ｔｏ ｐｒｏｄｕｃｔｓ：
Jan.–Jun, 2011 Year 2010
Items Main operating Main operating Main operating Main operating
business income business costs business income business costs
Real estate sales 81,780,389.00 42,124,483.34
（４）Ｔｈｅ ｄｅｔａｉｌｓ ｏｆ ｍａｉｎ ｏｐｅｒａｔｉｎｇ ｂｕｓｉｎｅｓｓｅｓ ｗｅｒｅ ａｓ ｆｏｌｌｏｗｓ ａｃｃｏｒｄｉｎｇ ｔｏ ｒｅｇｉｏｎｓ：
Jan.–Jun, 2011 Year 2010
Location
Main operating Main operating Main operating Main operating
business income business costs business income business costs
Hainan Province 81,780,389.00 42,124,483.34
５． Ｉｎｖｅｓｔｍｅｎｔ ｉｎｃｏｍｅ
Jan.–Jun,
Year 2009
Items 2011
Income from transferring equity investment -404,815.92 64,864.56
Income from disposal sellable financial assets
Total -404,815.92 64,864.56
６． Ｓｕｐｐｌｅｍｅｎｔａｒｙ ｉｎｆｏｒｍａｔｉｏｎ ｏｆ ｃａｓｈ ｆｌｏｗ ｓｔａｔｅｍｅｎｔ
Items Jan.–Jun, 2011 Year 2010
1．Reconciliation of net profit to cash flows from operating activities:
Net profit -12,409,027.24 11,512,721.21
Add: Provision for assets impairment -460,057.00 -19,213,110.83
Depreciation of fixed assets, production biological assets, petroleum and natural gas 1,178,325.85 1,043,522.34
Amortization of intangible assets 23,831.82 23,831.82
Amortization of long-term prepayments
Losses on disposal of fixed assets, intangible assets and other long-term assets 12,915.00 2,916,182.80
Losses on scrapping of fixed assets
Losses on fair value change
Financial expenses 3,766,307.21 6,035,811.28
Investment losses 404,815.92 -64,864.56
Decrease in deferred income tax assets
Increase in deferred income tax liabilities
Decrease in inventories 88,124,012.28
Decrease in operating receivables -1,301,214.46 -13,790,282.95
Increase in operating payables 11,847,920.68 591,425.46
Others
Net cash flows from operating activities 3,063,817.78 77,179,248.85
2．Significant investing and financing activities that non-cash receipts and payments
Items Jan.–Jun, 2011 Year 2010
Conversion of debt into capital
Convertible bonds to be expired within one year
Fixed assets under finance lease
3．Net increase in cash and cash equivalents
Cash at the end of the period 27,066,982.58 128,061,969.24
Less: Cash at the beginning of the period 47,697,821.48 161,760,970.47
Add: Cash equivalents at the end of the period
Less: Cash equivalents at the beginning of the period
Net increase in cash and cash equivalents -20,630,838.90 -33,699,001.23
ＸＩＩ． Ｓｕｐｐｌｅｍｅｎｔａｒｙ ｉｎｆｏｒｍａｔｉｏｎ
１． Ａｃｃｏｒｄｉｎｇ ｔｏ “Ｉｎｆｏｒｍａｔｉｏｎ ｄｉｓｃｌｏｓｕｒｅ ｒｅｑｕｉｒｅｍｅｎｔ Ｎｏ．１ ｆｏｒ ｔｈｅ ｃｏｍｐａｎｉｅｓ ｉｓｓｕｉｎｇ
ｓｅｃｕｒｉｔｉｅｓ ｐｕｂｌｉｃｌｙ – Ｎｏｎ－ｒｅｃｕｒｒｉｎｇ Ｐｒｏｆｉｔ ａｎｄ Ｌｏｓｓ ［２００８］” ｉｓｓｕｅｄ ｂｙ Ｃｈｉｎａ Ｓｅｃｕｒｉｔｉｅｓ
Ｒｅｇｕｌａｔｏｒｙ Ｃｏｍｍｉｓｓｉｏｎ （［２００８］ Ｎｏ． ４３）， ｔｈｅ ａｍｏｕｎｔ ｏｆ ｎｏｎ－ｒｅｃｕｒｒｉｎｇ ｐｒｏｆｉｔ ａｎｄ ｌｏｓｓ ｉｓ ａｓ ｆｏｌｌｏｗｓ
（ｐｒｏｆｉｔ ｉｓ “＋”， ｌｏｓｓ ｉｓ “－”）：
Items Jan.–Jun, 2011
Profit and loss on disposal of non-current assets -14,410.25
Fund occupation fee from non-financial enterprises included in the current profit and loss 20,969,686.49
Revenue generated from obtaining subsidiaries, associates and joint venture investment as the
investment cost less than the fair value of identifiable net assets
Others non-operating income and expenses excluded as above 377,125.73
Other non-operating income and costs
Income tax impact -885,778.44
Equity impacts of minority interests -475,212.08
Total 19,971,411.45
２． Ｅａｒｎｉｎｇｓ ｐｅｒ ｓｈａｒｅ
Earnings per share
Profit of this year Basic earnings per share Diluted earnings per share
Jan.–Jun, 2011 2010 Jan.–Jun, 2011 2010
Net profit attributable to common shareholders -0.04 0.12 -0.04 0.12
Net profit excluding non-recurring Profit and Loss
-0.08 0.10 -0.08 0.10
attributable to common shareholders
ＸＩＩＩ． Ａｐｐｒｏｖａｌ ｏｆ ｔｈｅ ｆｉｎａｎｃｉａｌ ｓｔａｔｅｍｅｎｔｓ
Ｔｈｅ ｆｉｎａｎｃｉａｌ ｓｔａｔｅｍｅｎｔｓ ｈａｖｅ ｂｅｅｎ ａｐｐｒｏｖｅｄ ｂｙ ｔｈｅ ｂｏａｒｄ ｏｆ ｄｉｒｅｃｔｏｒｓ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ ｉｎ Ａｕｇｕｓｔ
２３， ２０１１．
Ｂａｓｅｄ ｏｎ ｔｈｅ Ａｒｔｉｃｌｅｓ ｏｆ Ａｓｓｏｃｉａｔｉｏｎ， ｔｈｅ ｆｉｎａｎｃｉａｌ ｓｔａｔｅｍｅｎｔｓ ｗｏｕｌｄ ｂｅ ｓｕｂｍｉｔｔｅｄ ｔｏ Ｇｅｎｅｒａｌ
Ｃｏｎｆｅｒｅｎｃｅ ｏｆ Ｓｈａｒｅｈｏｌｄｅｒｓ．
Hainan Pearl River Holding Company Limited
August 23, 2011
Legal representative : Accounting Supervisor: Chief Accountant:
Signature: Signature: Signature:
Date: Date: Date:
